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A BILL TO BE ENTITLED
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AN ACT
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relating to the contractual relationship between a pharmacist or |
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pharmacy and a health benefit plan issuer or pharmacy benefit |
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manager. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1369, Insurance Code, is amended by |
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adding Subchapter L to read as follows: |
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SUBCHAPTER L. CONTRACTS WITH PHARMACISTS AND PHARMACIES |
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Sec. 1369.551. DEFINITIONS. In this subchapter: |
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(1) "Pharmacy benefit manager" has the meaning |
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assigned by Section 4151.151. |
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(2) "Pharmacy benefit network" means a network of |
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pharmacies that have contracted with a pharmacy benefit manager to |
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provide pharmacist services to enrollees. |
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(3) "Pharmacy services administrative organization" |
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means an entity that contracts with a pharmacist or pharmacy to |
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conduct on behalf of the pharmacist or pharmacy the pharmacist's or |
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pharmacy's business with a third-party payor, including a pharmacy |
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benefit manager, in connection with pharmacy benefits and to assist |
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the pharmacist or pharmacy by providing administrative services, |
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including negotiating, executing, and administering a contract |
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with a third-party payor and communicating with the third-party |
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payor in connection with a contract or pharmacy benefits. |
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Sec. 1369.552. APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter applies only to a health benefit plan that provides |
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benefits for medical or surgical expenses incurred as a result of a |
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health condition, accident, or sickness, including an individual, |
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group, blanket, or franchise insurance policy or insurance |
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agreement, a group hospital service contract, or an individual or |
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group evidence of coverage or similar coverage document that is |
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offered by: |
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(1) an insurance company; |
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(2) a group hospital service corporation operating |
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under Chapter 842; |
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(3) a health maintenance organization operating under |
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Chapter 843; |
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(4) an approved nonprofit health corporation that |
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holds a certificate of authority under Chapter 844; |
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(5) a multiple employer welfare arrangement that holds |
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a certificate of authority under Chapter 846; |
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(6) a stipulated premium company operating under |
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Chapter 884; |
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(7) a fraternal benefit society operating under |
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Chapter 885; |
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(8) a Lloyd's plan operating under Chapter 941; or |
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(9) an exchange operating under Chapter 942. |
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(b) Notwithstanding any other law, this subchapter applies |
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to: |
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(1) a small employer health benefit plan subject to |
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Chapter 1501, including coverage provided through a health group |
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cooperative under Subchapter B of that chapter; |
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(2) a standard health benefit plan issued under |
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Chapter 1507; |
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(3) health benefits provided by or through a church |
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benefits board under Subchapter I, Chapter 22, Business |
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Organizations Code; |
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(4) group health coverage made available by a school |
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district in accordance with Section 22.004, Education Code; |
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(5) a regional or local health care program operated |
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under Section 75.104, Health and Safety Code; and |
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(6) a self-funded health benefit plan sponsored by a |
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professional employer organization under Chapter 91, Labor Code. |
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(c) This subchapter does not apply to an issuer or provider |
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of health benefits under or a pharmacy benefit manager |
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administering pharmacy benefits under a workers' compensation |
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insurance policy or other form of providing medical benefits under |
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Title 5, Labor Code. |
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Sec. 1369.553. REDUCTION OF CERTAIN CLAIM PAYMENT AMOUNTS |
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PROHIBITED. (a) A health benefit plan issuer or pharmacy benefit |
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manager may not directly or indirectly reduce the amount of a claim |
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payment to a pharmacist or pharmacy after adjudication of the claim |
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through the use of an aggregated effective rate, quality assurance |
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program, other direct or indirect remuneration fee, or otherwise, |
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except in accordance with an audit performed under Subchapter F. |
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(b) Nothing in this section prohibits a health benefit plan |
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issuer or pharmacy benefit manager from increasing a claim payment |
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amount after adjudication of the claim. |
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Sec. 1369.554. REIMBURSEMENT OF AFFILIATED AND |
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NONAFFILIATED PHARMACISTS AND PHARMACIES. (a) In this section: |
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(1) "Affiliated pharmacist or pharmacy" means a |
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pharmacist or pharmacy that directly, or indirectly through one or |
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more intermediaries, controls or is controlled by, or is under |
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common control with, a pharmacy benefit manager. |
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(2) "Nonaffiliated pharmacist or pharmacy" means a |
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pharmacist or pharmacy that does not directly, or indirectly |
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through one or more intermediaries, control and is not controlled |
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by or under common control with a pharmacy benefit manager. |
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(b) A pharmacy benefit manager may not pay an affiliated |
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pharmacist or pharmacy a reimbursement amount that is more than the |
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amount the pharmacy benefit manager pays a nonaffiliated pharmacist |
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or pharmacy for the same pharmacist service. |
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Sec. 1369.555. NETWORK CONTRACT FEE SCHEDULE. A pharmacy |
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benefit network contract must specify or reference a separate fee |
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schedule. Unless otherwise available in the contract, the fee |
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schedule must be provided electronically in an easily accessible |
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and complete spreadsheet format and, on request, in writing to each |
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contracted pharmacist and pharmacy. The fee schedule must |
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describe: |
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(1) specific services or procedures that the |
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pharmacist or pharmacy may deliver and the amount of the |
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corresponding payment; |
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(2) a methodology for calculating the amount of the |
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payment based on a published fee schedule; or |
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(3) any other reasonable manner that provides an |
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ascertainable amount for payment for services. |
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Sec. 1369.556. DISCLOSURE OF PHARMACY SERVICES |
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ADMINISTRATIVE ORGANIZATION CONTRACT. A pharmacist or pharmacy |
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that is a member of a pharmacy services administrative organization |
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that enters into a contract with a health benefit plan issuer or |
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pharmacy benefit manager on the pharmacist's or pharmacy's behalf |
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is entitled to receive from the pharmacy services administrative |
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organization a copy of the contract provisions applicable to the |
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pharmacist or pharmacy, including each provision relating to the |
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pharmacist's or pharmacy's rights and obligations under the |
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contract. |
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Sec. 1369.557. DELIVERY OF DRUGS. (a) Except in a case in |
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which the health benefit plan issuer or pharmacy benefit manager |
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makes a credible allegation of fraud against the pharmacist or |
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pharmacy and provides reasonable notice of the allegation and the |
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basis of the allegation to the pharmacist or pharmacy, a health |
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benefit plan issuer or pharmacy benefit manager may not as a |
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condition of a contract with a pharmacist or pharmacy prohibit the |
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pharmacist or pharmacy from: |
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(1) mailing or delivering a drug to a patient on the |
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patient's request, to the extent permitted by law; or |
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(2) charging a shipping and handling fee to a patient |
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requesting a prescription be mailed or delivered if the pharmacist |
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or pharmacy discloses to the patient before the delivery: |
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(A) the fee that will be charged; and |
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(B) that the fee may not be reimbursable by the |
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health benefit plan issuer or pharmacy benefit manager. |
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(b) A pharmacist or pharmacy may not charge a health benefit |
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plan issuer or pharmacy benefit manager for the delivery of a |
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prescription drug as described by this section unless the charge is |
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specifically agreed to by the health benefit plan issuer or |
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pharmacy benefit manager. |
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Sec. 1369.558. PROFESSIONAL STANDARDS AND SCOPE OF PRACTICE |
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REQUIREMENTS. A health benefit plan issuer or pharmacy benefit |
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manager may not as a condition of a contract with a pharmacist or |
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pharmacy: |
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(1) require pharmacist or pharmacy accreditation |
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standards or recertification requirements inconsistent with, more |
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stringent than, or in addition to federal and state requirements; |
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or |
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(2) prohibit a licensed pharmacist or pharmacy from |
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dispensing any drug that may be dispensed under the pharmacist's or |
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pharmacy's license unless: |
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(A) applicable state or federal law prohibits the |
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pharmacist or pharmacy from dispensing the drug; or |
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(B) the manufacturer of the drug requires that a |
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pharmacist or pharmacy possess one or more accreditations or |
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certifications to dispense the drug and the pharmacist or pharmacy |
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does not meet the requirement. |
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Sec. 1369.559. RETALIATION PROHIBITED. (a) A pharmacy |
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benefit manager may not retaliate against a pharmacist or pharmacy |
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based on the pharmacist's or pharmacy's exercise of any right or |
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remedy under this chapter. Retaliation prohibited by this section |
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includes: |
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(1) terminating or refusing to renew a contract with |
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the pharmacist or pharmacy; |
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(2) subjecting the pharmacist or pharmacy to increased |
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audits; or |
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(3) failing to promptly pay the pharmacist or pharmacy |
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any money owed by the pharmacy benefit manager to the pharmacist or |
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pharmacy. |
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(b) For purposes of this section, a pharmacy benefit manager |
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is not considered to have retaliated against a pharmacist or |
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pharmacy if the pharmacy benefit manager: |
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(1) takes an action in response to a credible |
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allegation of fraud against the pharmacist or pharmacy; and |
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(2) provides reasonable notice to the pharmacist or |
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pharmacy of the allegation of fraud and the basis of the allegation |
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before taking the action. |
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Sec. 1369.560. WAIVER PROHIBITED. The provisions of this |
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subchapter may not be waived, voided, or nullified by contract. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into or renewed on or after the effective date |
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of this Act. A contract entered into or renewed before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |
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