Bill Text: TX SB2402 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the creation, management, and administration of the Texas Pharmaceutical Initiative.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-04-19 - Left pending in committee [SB2402 Detail]
Download: Texas-2023-SB2402-Introduced.html
By: Kolkhorst | S.B. No. 2402 | |
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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. |