Amend SB 8 (senate engrossed version) in SECTION 4 of the bill by inserting the following appropriately lettered subsection to the SECTION and relettering subsequent subsections of the SECTION accordingly:

SECTION ____. Chapter 1560, Insurance Code, is amended by adding Section 1560.005 to read as follows:

Sec. 1560.005. REVIEW OF PHARMACY CLAIMS. (a) The state auditor may conduct a biennial review of prescriptions intended for a 90-day supply to determine compliance with this chapter and to verify community retail and mail order pharmacies' parity in all factors of reimbursement, including average wholesale price and maximum allowable cost.

(b) The state auditor shall submit a review conducted under this section to the board of trustees for the Employees Retirement System of Texas and the trustee for the Teacher Retirement System of Texas.

(c) The Employees Retirement System of Texas and the Teacher Retirement System of Texas shall reimburse the state auditor for all costs of a review under this section.

(d) If in the course of a review the state auditor finds evidence of improper practices or illegal transactions, the state auditor shall report the evidence in accordance with Section 321.016, Government Code.