HB4638 - Relating to the Texas Pharmaceutical Initiative.

      H.B. No. 4638         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, 2027 [ 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.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 4638 was passed by the House on May 7,   2025, by the following vote:  Yeas 140, Nays 6, 1 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 4638 on May 29, 2025, by the following vote:  Yeas 124, Nays 11,   1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 4638 was passed by the Senate, with   amendments, on May 27, 2025, by the following vote:  Yeas 29, Nays   2.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor