HB 4638

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
(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
(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
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
(C)  providing advanced pharmaceutical
preparation and related services, including:
(i)  manufacturing generic drugs and generic
(ii)  providing gene therapies and precision
(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
(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
(7)  providing other board recommendations, with
supporting documentation, on continuation of the initiative.
SECTION 4.  Section 2177.010, Government Code, is repealed.
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,
(2)  two members to serve terms expiring February 1,
(3)  one member to serve a term expiring February 1,
SECTION 6.  This Act takes effect September 1, 2025.