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AN ACT
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relating to the Texas Pharmaceutical Initiative. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2177.003(a), Government Code, is amended |
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to read as follows: |
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(a) The initiative is governed by a board composed of five |
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[three] members appointed by the governor. |
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SECTION 2. Chapter 2177, Government Code, is amended by |
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adding Section 2177.0035 to read as follows: |
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Sec. 2177.0035. TERMS; VACANCIES. (a) Board members serve |
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staggered six-year terms, with one-third or as near as possible to |
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one-third of the members' terms expiring February 1 of each |
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odd-numbered year. |
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(b) A vacancy on the board shall be filled for the unexpired |
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term in the same manner as the original appointment. |
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SECTION 3. Section 2177.006, Government Code, is amended to |
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read as follows: |
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Sec. 2177.006. BUSINESS PLAN. Not later than June 1 of each |
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even-numbered year [October 1, 2024], the board shall prepare |
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[develop] and submit to the governor, the legislature, and the |
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Legislative Budget Board a business plan on: |
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(1) implementing the initiative, including the |
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initiative's organizational structure and related programs; |
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(2) establishing procedures and policies for the |
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administration of the initiative, including documenting the |
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process and resources required for the provision to individuals |
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described by Section 2177.002 of the following services: |
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(A) establishing or contracting for statewide |
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pharmacy benefit manager services; |
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(B) establishing policies and conditions to |
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operate or contract for the operation of a distribution network, |
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central service center, and associated network of satellite |
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distribution facilities to distribute prescription drugs and |
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related medical supplies; and |
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(C) providing advanced pharmaceutical |
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preparation and related services, including: |
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(i) manufacturing generic drugs and generic |
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biological products; |
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(ii) providing gene therapies and precision |
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medicine; and |
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(iii) providing advanced laboratories for |
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quality control, preparation, and compounding of drugs in support |
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of innovative therapeutics and drug research; |
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(3) establishing procedures to document compliance by |
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board members and personnel with applicable laws governing |
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conflicts of interest; |
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(4) establishing the conditions for state agencies |
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that facilitate health plans to participate in the initiative; |
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(5) identifying potential cost savings from |
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implementation of the initiative; |
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(6) identifying the funding and resources needed to |
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implement this chapter; |
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(7) providing recommendations on best practices and |
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cost savings related to the provision of pharmacy benefits using |
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program utilization; and |
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(8) [(7)] providing other board recommendations, with |
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supporting documentation, on continuation of the initiative. |
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SECTION 4. Section 2177.010, Government Code, is amended to |
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read as follows: |
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Sec. 2177.010. EXPIRATION OF CHAPTER. This chapter expires |
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September 1, 2027 [2025]. |
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SECTION 5. (a) As soon as practicable after the effective |
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date of this Act, the governor shall appoint the governing board |
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members for the Texas Pharmaceutical Initiative as required by |
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Section 2177.003, Government Code, as amended by this Act. |
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(b) Notwithstanding Section 2177.0035, Government Code, as |
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added by this Act, in making the appointments of the governing board |
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members for the Texas Pharmaceutical Initiative under Subsection |
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(a) of this section, the governor shall designate: |
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(1) two members to serve terms expiring February 1, |
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2027; |
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(2) two members to serve terms expiring February 1, |
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2029; and |
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(3) one member to serve a term expiring February 1, |
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2031. |
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SECTION 6. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4638 was passed by the House on May 7, |
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2025, by the following vote: Yeas 140, Nays 6, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 4638 on May 29, 2025, by the following vote: Yeas 124, Nays 11, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4638 was passed by the Senate, with |
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amendments, on May 27, 2025, by the following vote: Yeas 29, Nays |
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2. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |