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By:  Hochberg                                                     H.B. No. 173


A BILL TO BE ENTITLED
AN ACT
relating to the licensing of Canadian pharmacies to sell prescription medicines to Texas residents. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The Legislature finds that: (1) Prescription drugs are expensive, to the point that some Texas residents have been forced to choose between purchasing prescription drugs and paying for other essentials, such as groceries or rent. (2) Prescription drugs can be purchased at much lower cost in Canada. (3) Scams offering low cost prescription drugs are prevalent on the internet and in spam e-mail, which makes it difficult for Texas consumers to know how and where to find safe and effective prescription drugs at affordable prices. (4) The Federal Drug Administration's Regulatory Procedures Manual authorizes FDA personnel to use their discretion to allow the importation of FDA regulated products when the quantity and purpose are clearly for personal use and the product does not present an unreasonable risk to the user. (5) Other states and cities have provided websites and other mechanisms for their residents to safely purchase prescription drugs from Canada. SECTION 2. Title 3, Subtitle J of the Occupations Code is amended by adding Chapter 570 to read as follows:
CHAPTER 570. LICENSING OF CANADIAN PHARMACIES
Section 570.001. (a) The board shall license pharmacies located and licensed in Canada to ship, mail, or deliver certain prescription drugs under a prescription drug order to a resident of this state. (b) Pharmacies licensed under this section shall: (1) meet Texas licensing standards; (2) compile a price list for prescription drugs provided under this section and guarantee those prices for a minimum of 30 days; (3) provide to the board: (A) evidence that the applicant holds a pharmacy license, registration, or permit in good standing issued by Canada or the province in which the pharmacy is located; (B) the name of the owner and pharmacist-in-charge of the pharmacy for service of process; (C) evidence of the applicant's ability to provide to the board a record of a prescription drug order dispensed by the applicant to a resident of this state not later than 72 hours after the time the board requests the record; and (D) an affidavit by the pharmacist-in-charge that states that the pharmacist has read and understands the laws and rules relating to a Class F pharmacy. (4) meet standards established by board rule for order fulfillment and drug dispensement, storage, packaging, shipping, and delivery to assure customer safety. (5) ensure that the pharmacy's employees have necessary Canadian licenses; (6) require a prescription drug order from a U.S. physician; (7) provide only drugs that are approved by the Government of Canada's Therapeutic Products Directorate for sale to residents of Canada; (8) exclude drugs for which there is no equivalent approved by the Food and Drug Administration for sale in the United States and medicines that cannot be safely shipped via mail order; (9) limit the amount of any one drug dispensed in any one order to the lesser of a three-month supply or the amount approved by the person's U.S. physician; (10) use the unopened manufacturer's packaging whenever possible; (11) not fill prescription drug orders if the customer indicates the purchase would represent his or her first use of that drug and limit drugs to those prescribed for long-term use; and (12) provide periodic reports to the board regarding any complaints from Texas customers purchasing from the pharmacy. (c) Before licensing a pharmacy under this section, the board shall visit the pharmacy's facilities and review its compliance with all applicable licensing requirements and safety standards. (d) The board shall conduct random inspections of pharmacies licensed under this section at least yearly to ensure continued compliance with all applicable licensing requirements and safety standards. Section 570.002. The board shall establish and maintain a website that provides information about the Canadian pharmacies licensed under Section 570.001 and provides a convenient mechanism for Texas residents to order prescription drugs from those pharmacies in accordance with this chapter and board rule. Section 570.003. (a) A pharmacy located in Texas and holding a pharmacy license issued by the board may order prescription drugs from Canadian pharmacies licensed under Section 570.002 on behalf of their customers. (b) A pharmacy ordering drugs under this section shall only do so with the knowledge and clear consent of the customer. SECTION 3. Section 551.003, Occupations Code is amended by adding subdivision (8) to read as follows and by renumbering the remaining subdivisions accordingly: (8) "Class F pharmacy license" or "Canadian pharmacy license" means a license described by Section 560.051. SECTION 4. Section 560.051, Occupations Code is amended by amending Subsection (a) and adding Subsection (f) to read as follows: Sec. 560.051. LICENSE CLASSIFICATIONS. (a) Each applicant for a pharmacy license shall apply for a license in one or more of the following classifications: (1) Class A; (2) Class B; (3) Class C; (4) Class D; (5) Class E; [or] (6) Class F; or (7) [(6)] another classification established by the board under Section 560.053. (f) A Class F pharmacy license or Canadian pharmacy license may be issued to a pharmacy located in Canada in accordance with Chapter 570. SECTION 5. The Texas State Board of Pharmacy shall adopt emergency rules to implement this Act as soon as practicable after the effective date of this Act and shall adopt permanent rules no later than September 1, 2005. SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.