By: Bonnen H.B. No. 4990
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation, management, and administration of the
  Texas Pharmaceutical Initiative.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle D, Title 10, Government Code, is
  amended by adding Chapter 2177 to read as follows:
  CHAPTER 2177. TEXAS PHARMACEUTICAL INITIATIVE
         Sec. 2177.001.  DEFINITIONS. In this chapter:
               (1)  "Initiative" means the Texas Pharmaceutical
  Initiative established in Sec. 2177.002.
               (2)  "Board" means the governing board established in
  Sec. 2177.003.
         Sec. 2177.002.  TEXAS PHARMACEUTICAL INITIATIVE;
  ESTABLISHMENT. The Texas Pharmaceutical Initiative is established
  to provide cost effective prescription drug access for employees,
  dependents, and retirees of public higher education systems and
  institutions, Employees Retirement System of Texas members,
  Teacher Retirement System of Texas members, persons confined by the
  Texas Department of Criminal Justice or the Texas Juvenile Justice
  Department, recipients of medical assistance, enrollees of the
  child health plan program, and other public, non-profit, and
  for-profit entities.
         Sec. 2177.003.  GOVERNING BOARD. (a) The initiative shall
  be governed by a board that consists of:
               (1)  the commissioner of the Texas Health and Human
  Services Commission, or their designee;
               (2)  the executive director of the Employees Retirement
  System of Texas, or their designee;
               (3)  the executive director of the Teacher Retirement
  System of Texas, or their designee;
               (4)  three members appointed by the governor;
               (5)  one member appointed by the governor from a list of
  three names submitted by the lieutenant governor;
               (6)  one member appointed by the governor from a list of
  three names submitted by the speaker of the house of
  representatives; and
               (6)  the chancellor of the University of Texas System,
  or the chancellor's designee, in an ex-officio capacity.
         (b)  A vacancy on the board shall be filled in the same manner
  as the original appointment.
         (c)  The board is administratively attached to the Health and
  Human Services Commission.
         (d)  The governor shall select the presiding officer of the
  board.
         Sec. 2177.004.  GENERAL DUTIES. (a) The board established
  under SECTION 2177.003 shall:
               (1)  develop and implement the initiative and related
  programs established in this chapter;
               (2)  establish procedures and policies for the
  administration of the board;
               (3)  establish procedures to document compliance by
  board members and staff with applicable laws governing conflicts of
  interest; and
               (4)  adopt all necessary rules to implement this
  chapter.
         (b)  The board may:
               (1)  execute all contracts and other documents, adopt
  all proceedings, and conduct all activities determined by the board
  to be necessary to carry out the purposes of this chapter. The
  board may authorize one or more members of the board to execute
  contracts and other documents on behalf of the board; and
               (2)  establish and create any committees or other
  entities the board may deem necessary to exercise the powers
  provided in this act. The board may delegate to such committees or
  other entities administrative duties and other powers as the board
  may deem necessary;
               (3)  hire a chief executive officer and employ
  necessary staff to provide administrative support;
               (4)  make grants to provide funds to public or private
  persons to implement the Texas Pharmaceutical Initiative.
         (c)  the board is required to implement a provision of this
  chapter only if the legislature appropriates money specifically for
  that purpose. If the legislature does not appropriate money
  specifically for that purpose, the board may, but is not required
  to, implement a provision of this chapter.
         Sec. 2177.005.  TRANSPARENT PHARMACY BENEFIT MANAGER.  (a)
  The board shall establish and implement a statewide transparent
  pharmacy benefit manager to provide cost-effective prescription
  drugs to entities and organizations served by the Initiative.
         (b)  The pharmacy benefit manager shall provide pricing
  transparency, pass-through of all rebates and fees, and fair and
  equitable pricing to any pharmacy that chooses to participate in
  the pharmacy benefit manager's pharmacy network.
         (c)  The pharmacy benefit manager shall contract with
  appropriate entities to:
               (1)  provide evidence-based benefit design, prior
  authorization, and new drug review; and
               (2)  partner with suppliers, pharmaceutical
  manufacturers, and group purchasing organizations for competitive
  drug acquisition.
         (d)  The pharmacy benefit manager may charge fees for
  startup, enrollment, and ongoing management to support operational
  costs, program development, and expansion.
         Sec. 2177.006.  CENTRAL SERVICE CENTER AND SATELLITE
  DISTRIBUTION FACILITIES. (a) The board shall establish and
  implement a central service center and associated network of
  satellite distribution facilities to provide pharmacy and medical
  supplies in support of Texas public higher education systems and
  institutions, the Employees Retirement System of Texas, the Teacher
  Retirement System of Texas, the Texas Department of Criminal
  Justice, the Texas Juvenile Justice Department, and other public,
  non-profit, and for-profit entities. The center shall:
               (1)  be constructed to withstand severe weather,
  natural disasters, and power outages, and shall be capable of
  supporting disaster preparedness and relief statewide; and
               (2)  include a mail order pharmacy and specialty
  pharmacy.
         (b)  The center may assess a stock carrying charge,
  transaction fees, or other fees to support distribution and other
  operational costs, including overhead and margin.
         (c)  The mail order and specialty pharmacy may receive
  payment for dispensing prescription drugs and may assess
  dispensing, delivery, and handling fees.
         Sec. 2177.007  PHARMACEUTICAL ADVANCED PREPARATION
  FACILITY.  (a)  The board shall establish a pharmaceutical advanced
  preparation facility to provide Food and Drug Administration
  approved 503B compounding, manufacturing, CAR-T and other gene
  therapies, precision medicine, and advanced labs for quality
  control, preparation and compounding in support of innovative
  therapeutics and drug research.
         (b)  The facility shall be operated by a 501 c(3) established
  by the board.
         (c)  The facility may charge fees for drug preparation,
  manufacturing, CAR-T, gene therapy, and 503B compounding to support
  operational costs, including overhead and margin. 
         Sec. 2177.008  ADVANCED HEALTH CARE COST AND CLAIMS ANALYTIC
  SERVICES. (a) The board shall contract to provide advanced health
  care cost and claims analytic services to support the transparent
  pharmacy benefit manager, mail order and specialty pharmacies,
  central service center, and pharmaceutical advanced preparation
  facility established in this chapter, and to support population
  health and research.
         Sec. 2177.009  GENERIC DRUG MANUFACTURING FACILITY. (a) The
  board may enter into an agreement to establish a facility providing
  for the manufacturing of generic drugs. In entering into an
  agreement, the board shall prioritize savings and access to
  affordable medications.
         Sec. 2177.010  TEXAS PHARMACY INITIATIVE FUND. (a) The
  Texas Pharmaceutical Initiative Fund is created as a trust fund
  outside the treasury with the comptroller. The fund consists of
  money from:
               (1)  gifts, grants, or donations to the executive
  committee; and
               (2)  any other source appropriated or designated by the
  legislature.
         (b)  The board may utilize the fund for the purpose of
  carrying out this chapter.
         (c)  The board shall develop procedures for administration
  and approval of expenditures through the fund.
         Sec. 2177.011.  GIFTS, GRANTS, AND DONATIONS. The board may
  accept on behalf of the initiative gifts, grants, or donations from
  any public or private source for the purpose of carrying out this
  chapter.
         Sec. 2177.012.  ANNUAL REPORT. Not later than December 31 of
  each year, the board shall submit to the Texas Legislature a written
  report that outlines:
               (1)  the activities and objectives of the initiative;
               (2)  cost savings derived by state entities as a result
  of participation in the initiative; and
               (3)  any legislative recommendations.
         SECTION 2.  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, 2023.