By: Bonnen (Senate Sponsor - Kolkhorst) H.B. No. 4638
         (In the Senate - Received from the House May 7, 2025;
  May 9, 2025, read first time and referred to Committee on Health &
  Human Services; May 26, 2025, reported favorably by the following
  vote:  Yeas 8, Nays 0; May 26, 2025, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the Texas Pharmaceutical Initiative.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2177.003(a), Government Code, is amended
  to read as follows:
         (a)  The initiative is governed by a board composed of five
  [three] members appointed by the governor.
         SECTION 2.  Chapter 2177, Government Code, is amended by
  adding Section 2177.0035 to read as follows:
         Sec. 2177.0035.  TERMS; VACANCIES.  (a)  Board members serve
  staggered six-year terms, with one-third or as near as possible to
  one-third of the members' terms expiring February 1 of each
  odd-numbered year.
         (b)  A vacancy on the board shall be filled for the unexpired
  term in the same manner as the original appointment.
         SECTION 3.  Section 2177.006, Government Code, is amended to
  read as follows:
         Sec. 2177.006.  BUSINESS PLAN. Not later than June 1 of each
  even-numbered year [October 1, 2024], the board shall prepare
  [develop] and submit to the governor, the legislature, and the
  Legislative Budget Board a business plan on:
               (1)  implementing the initiative, including the
  initiative's organizational structure and related programs;
               (2)  establishing procedures and policies for the
  administration of the initiative, including documenting the
  process and resources required for the provision to individuals
  described by Section 2177.002 of the following services:
                     (A)  establishing or contracting for statewide
  pharmacy benefit manager services;
                     (B)  establishing policies and conditions to
  operate or contract for the operation of a distribution network,
  central service center, and associated network of satellite
  distribution facilities to distribute prescription drugs and
  related medical supplies; and
                     (C)  providing advanced pharmaceutical
  preparation and related services, including:
                           (i)  manufacturing generic drugs and generic
  biological products;
                           (ii)  providing gene therapies and precision
  medicine; and
                           (iii)  providing advanced laboratories for
  quality control, preparation, and compounding of drugs in support
  of innovative therapeutics and drug research;
               (3)  establishing procedures to document compliance by
  board members and personnel with applicable laws governing
  conflicts of interest;
               (4)  establishing the conditions for state agencies
  that facilitate health plans to participate in the initiative;
               (5)  identifying potential cost savings from
  implementation of the initiative;
               (6)  identifying the funding and resources needed to
  implement this chapter;
               (7)  providing recommendations on best practices and
  cost savings related to the provision of pharmacy benefits using
  program utilization; and
               (8) [(7)]  providing other board recommendations, with
  supporting documentation, on continuation of the initiative.
         SECTION 4.  Section 2177.010, Government Code, is amended to
  read as follows:
         Sec. 2177.010.  EXPIRATION OF CHAPTER. This chapter expires
  September 1, 2031 [2025].
         SECTION 5.  (a)  As soon as practicable after the effective
  date of this Act, the governor shall appoint the governing board
  members for the Texas Pharmaceutical Initiative as required by
  Section 2177.003, Government Code, as amended by this Act.
         (b)  Notwithstanding Section 2177.0035, Government Code, as
  added by this Act, in making the appointments of the governing board
  members for the Texas Pharmaceutical Initiative under Subsection
  (a) of this section, the governor shall designate:
               (1)  two members to serve terms expiring February 1,
  2027;
               (2)  two members to serve terms expiring February 1,
  2029; and
               (3)  one member to serve a term expiring February 1,
  2031.
         SECTION 6.  This Act takes effect September 1, 2025.
 
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