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78R7714 T

By:  Capelo                                                       H.B. No. 1932



A BILL TO BE ENTITLED

AN ACT

relating to the regulation of the practice of pharmacy and the 
dispensing of certain drugs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 562, Occupations Code, 
Section 562.015 is amended to read as follows:
	Sec. 562.015.  DISPENSING DIRECTIVE [; COMPLIANCE WITH 
FEDERAL LAW].  (a)  The board shall adopt rules to provide a 
dispensing directive to instruct pharmacists on the manner in which 
to dispense a drug according to the contents of a prescription.  The 
rules adopted under this section must:
		(1)  permit the prescription form to either:                           
			(A)  contain the handwritten phrase "brand 
necessary" or "brand medically necessary" on the prescription form 
to prohibit the substitution of a generically equivalent drug for a 
brand name drug; or
			(B)  contain two signature lines of equal 
prominence, side by side, at the bottom of the form with the words 
"product selection permitted" clearly printed under one signature 
line and "dispense as written" under the other signature line, with 
the physician or practitioner communicating dispensing 
instructions by signing the appropriate line.  By signing the line 
with "dispense as written" printed underneath the physician or 
practitioner prohibits the substitution of a generically 
equivalent drug for a brand name drug;
		[(1)  require the use of the phrase "brand necessary" 
or "brand medically necessary" on a prescription form to prohibit 
the substitution of a generically equivalent drug for a brand name 
drug;]
		(2)  be in a format that protects confidentiality as 
required by the Health Insurance Portability and Accountability Act 
of 1996 (29 U.S.C. Section 1181 et seq.) and its subsequent 
amendments;
		(3)  comply with federal and state law, including 
rules, with regard to formatting and security requirements; and
		(4)  [be developed to coordinate with 42 C.F.R. Section 
447.331(c); and
		[(5)]  include an exemption for electronic 
prescriptions as provided by Section 562.016 [Subsection (b)].
	[(b)  The board shall provide an exemption from the directive 
adopted under this section for prescriptions transmitted 
electronically.  The board may regulate the use of electronic 
prescriptions in the manner provided by federal law, including 
rules.]
	SECTION 2.  Subchapter A, Chapter 562, Occupations Code, is 
amended by adding Section 562.016 to read as follows:
	Sec. 562.016.  DISPENSING DIRECTIVE; ELECTRONIC 
PRESCRIPTIONS.  (a)  To prohibit the substitution of a generically 
equivalent drug for a brand name drug, a prescription transmitted 
electronically, which does not include a direct image of a written 
prescription transmitted by facsimile, need merely contain a clear 
indication within it that generic substitution is not permitted.  
The use of check boxes or other similar notations may be used to 
indicate that generic substitution is not permitted.
	(b)  The board shall not require that prescriptions 
transmitted electronically use a particular word, phrase or phrases 
to prohibit the substitution of a generically equivalent drug.
	SECTION 3.  This Act takes effect September 1, 2003.