80(R) SB 1834 - 2nd reading F1 (S)



	
Amend SB 1834 (Senate committee printing) as follows:                        
	(1)  In SECTION 1 of the bill, in the recital, strike 
"531.0747, and 531.0748" (page 1, line 13) and substitute 
"531.0747, 531.0748, and 531.0749".
	(2)  In SECTION 1 of the bill, after added Section 531.0748, 
Government Code, insert the following (page 2, between lines 12 and 
13):
	Sec. 531.0749.  AUDIT OF PHARMACY BENEFIT MANAGERS.  (a)  In 
this section, "pharmacy benefit manager" means a person, other than 
a pharmacy or pharmacist, who acts as an administrator in 
connection with pharmacy benefits.
	(b)  A contract with a pharmacy benefit manager entered into 
with respect to any mail order or specialty pharmacy services 
program under the jurisdiction of the commission must provide that 
the commission, using an auditor selected by the commission, may 
audit:
		(1)  the program's pharmacy benefit claims;                            
		(2)  the pharmacy benefit manager's contracts with 
pharmaceutical manufacturers and labelers;
		(3)  the pharmacy benefit manager's utilization 
management clinical criteria; and
		(4)  mail service purchasing invoices related to 
benefits provided under the program.
	(c)  This section does not affect the state auditor's 
authority to access information or conduct an audit.
	(3)  In SECTION 2 of the bill, in the recital, strike 
"1001.082, and 1001.083" (page 2, lines 14 and 15) and substitute 
"1001.082, 1001.083, and 1001.084".
	(4)  In SECTION 2 of the bill, after added Section 1001.083, 
Health and Safety Code, insert the following (page 3, between lines 
8 and 9):
	Sec. 1001.084.  AUDIT OF PHARMACY BENEFIT MANAGERS.  (a)  In 
this section, "pharmacy benefit manager" means a person, other than 
a pharmacy or pharmacist, who acts as an administrator in 
connection with pharmacy benefits.
	(b)  A contract with a pharmacy benefit manager entered into 
with respect to any mail order or specialty pharmacy services 
program under the jurisdiction of the department must provide that 
the department, using an auditor selected by the department, may 
audit:
		(1)  the program's pharmacy benefit claims;                            
		(2)  the pharmacy benefit manager's contracts with 
pharmaceutical manufacturers and labelers;
		(3)  the pharmacy benefit manager's utilization 
management clinical criteria; and
		(4)  mail service purchasing invoices related to 
benefits provided under the program.
	(c)  This section does not affect the state auditor's 
authority to access information or conduct an audit.
	(5)  In SECTION 3 of the bill, in the recital, strike 
"1551.074, and 1551.075" (page 3, line 10) and substitute 
"1551.074, 1551.075, and 1551.076".
	(6)  In SECTION 3 of the bill, after added Section 1551.075, 
Insurance Code, insert the following (page 4, between lines 9 and 
10):
	Sec. 1551.076.  AUDIT OF PHARMACY BENEFIT MANAGERS.  (a)  In 
this section, "pharmacy benefit manager" means an administering 
firm or other person, other than a pharmacy or pharmacist, who acts 
as an administrator in connection with pharmacy benefits.  The term 
includes an administrator subject to Chapter 4151 who administers 
pharmacy benefits.
	(b)  A contract with a pharmacy benefit manager entered into 
with respect to any mail order or specialty pharmacy services 
program under the jurisdiction of the board of trustees, using an 
auditor selected by the board of trustees, may audit:
		(1)  the program's pharmacy benefit claims;                            
		(2)  the pharmacy benefit manager's contracts with 
pharmaceutical manufacturers and labelers;
		(3)  the pharmacy benefit manager's utilization 
management clinical criteria; and
		(4)  mail service purchasing invoices related to 
benefits provided under the program.
	(c)  This section does not affect the state auditor's 
authority to access information or conduct an audit.
	(7)  In SECTION 4 of the bill, in the recital, strike 
"1575.063, and 1575.064" (page 4, line 11) and substitute 
"1575.063, 1575.064, and 1575.065".
	(8)  In SECTION 4 of the bill, after added Section 1575.064, 
Insurance Code, insert the following (page 5, between lines 8 and 
9):
	Sec. 1575.065.  AUDIT OF PHARMACY BENEFIT MANAGERS.  (a)  In 
this section, "pharmacy benefit manager" means a person, other than 
a pharmacy or pharmacist, who acts as an administrator in 
connection with pharmacy benefits.  The term includes an 
administrator subject to Chapter 4151 who administers pharmacy 
benefits.
	(b)  A contract with a pharmacy benefit manager entered into 
with respect to any mail order or specialty pharmacy services 
program under the jurisdiction of the trustee must provide that the 
trustee, using an auditor selected by the trustee, may audit:
		(1)  the program's pharmacy benefit claims;                            
		(2)  the pharmacy benefit manager's contracts with 
pharmaceutical manufacturers and labelers;
		(3)  the pharmacy benefit manager's utilization 
management clinical criteria; and
		(4)  mail service purchasing invoices related to 
benefits provided under the program.
	(c)  This section does not affect the state auditor's 
authority to access information or conduct an audit.
	(9)  In SECTION 5 of the bill, in the recital, strike 
"1579.062, and 1579.063" (page 5, line 10) and substitute 
"1579.062, 1579.063, and 1579.064".
	(10)  In SECTION 5 of the bill, after added Section 1579.063, 
Insurance Code, insert the following (page 6, between lines 7 and 
8):
	Sec. 1579.064.  AUDIT OF PHARMACY BENEFIT MANAGERS.  (a)  In 
this section, "pharmacy benefit manager" means an administering 
firm or other person, other than a pharmacy or pharmacist, who acts 
as an administrator in connection with pharmacy benefits.  The term 
includes an administrator subject to Chapter 4151 who administers 
pharmacy benefits.
	(b)  A contract with a pharmacy benefit manager entered into 
with respect to any mail order or specialty pharmacy services 
program under the jurisdiction of the trustee must provide that the 
trustee, using an auditor selected by the trustee, may audit:
		(1)  the program's pharmacy benefit claims;                            
		(2)  the pharmacy benefit manager's contracts with 
pharmaceutical manufacturers and labelers;
		(3)  the pharmacy benefit manager's utilization 
management clinical criteria; and
		(4)  mail service purchasing invoices related to 
benefits provided under the program.
	(c)  This section does not affect the state auditor's 
authority to access information or conduct an audit.