H.B. No. 4990         AN ACT   relating to the Texas Pharmaceutical Initiative and a governing   board and advisory council for the 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)  "Advisory council" means the Texas Pharmaceutical   Initiative Advisory Council established under this chapter.                (2)  "Board" means the governing board of the   initiative.                (3)  "Commission" means the Health and Human Services   Commission.                (4)  "Generic biological product" means a biological   product approved pursuant to an application under Section 351(k),   Public Health Service Act (42 U.S.C. Section 262(k)).                (5)  "Generic drug" means a prescription drug approved   pursuant to an application under Section 505(j), Federal Food,   Drug, and Cosmetic Act (21 U.S.C. Section 355(j)).                (6)  "Initiative" means the Texas Pharmaceutical   Initiative established under this chapter.          Sec. 2177.002.  TEXAS PHARMACEUTICAL INITIATIVE. The Texas   Pharmaceutical Initiative is established to provide cost-effective   access to prescription drugs and other medical supplies for:                (1)  employees, dependents, and retirees of public   higher education systems and institutions;                (2)  Employees Retirement System of Texas members;                (3)  Teacher Retirement System of Texas members;                (4)  persons confined by the Texas Department of   Criminal Justice or the Texas Juvenile Justice Department; and                (5)  individuals served by a program operated or   administered by the health and human services system, as that term   is defined by Section 531.001.          Sec. 2177.003.  BOARD. (a) The initiative is governed by a   board composed of three members appointed by the governor.          (b)  The governor shall designate the presiding officer of   the board.          (c)  A board member serves without compensation but may be   reimbursed for travel and other actual and reasonable expenses   incurred in the performance of the member's duties on the board.          Sec. 2177.004.  BOARD MEMBER QUALIFICATIONS. (a) A person   may not serve as a board member if the person:                (1)  has held any other elective public office during   the preceding five years; or                (2)  is an employee of an entity served by the   initiative.          (b)  Not more than one-third of the members of the board   serving at any one time may derive more than 10 percent of their   annual income from the health care, insurance, or pharmaceutical   industry.          Sec. 2177.005.  BOARD POWERS AND DUTIES. (a) The board may:                (1)  develop and implement the initiative and any   programs established by this chapter;                (2)  establish procedures and policies for the   administration of the initiative; and                (3)  establish procedures to document compliance by   board members and personnel with applicable laws governing   conflicts of interest.          (b)  To carry out the purposes of this chapter and implement   the initiative, the board may:                (1)  hire and employ an executive director and   necessary personnel to provide administrative support;                (2)  execute contracts and other instruments and   conduct all activities the board determines necessary for those   purposes;                (3)  authorize one or more board members to execute   contracts and other instruments on behalf of the board; and                (4)  establish a committee or other similar entity to   exercise powers delegated by the board and exercise any other   administrative duties or powers as the board considers necessary.          Sec. 2177.006.  BUSINESS PLAN. Not later than October 1,   2024, the board shall 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; and                (7)  providing other board recommendations, with   supporting documentation, on continuation of the initiative.          Sec. 2177.007.  ADMINISTRATIVE ATTACHMENT. (a) The board   is administratively attached to the commission.          (b)  The commission shall provide administrative support   services to the board as necessary to carry out the purposes of this   chapter.          Sec. 2177.008.  ADVISORY COUNCIL. (a) The Texas   Pharmaceutical Initiative Advisory Council is established to   advise the board in implementing this chapter and carrying out the   duties imposed on the board under this chapter.          (b)  The advisory council is composed of:                (1)  the executive commissioner of the commission or   the executive commissioner's designee;                (2)  the executive director of the Employees Retirement   System of Texas or the executive director's designee;                (3)  the executive director of the Teacher Retirement   System of Texas or the executive director's designee;                (4)  the chancellor of The University of Texas System   or the chancellor's designee; and                (5)  the chancellor of The Texas A&M University System   or the chancellor's designee.          Sec. 2177.009.  CONFLICTS OF INTEREST. Except as otherwise   provided by this chapter, Chapter 572 applies to the initiative.          Sec. 2177.010.  EXPIRATION OF CHAPTER. This chapter expires   September 1, 2025.          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.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 4990 was passed by the House on May 2,   2023, by the following vote:  Yeas 128, Nays 12, 1 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 4990 on May 26, 2023, by the following vote:  Yeas 113, Nays 26,   1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 4990 was passed by the Senate, with   amendments, on May 24, 2023, by the following vote:  Yeas 26, Nays   4.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor