HEALTH & SAFETY CODE

CHAPTER 111. INTERAGENCY COUNCIL ON PHARMACEUTICALS BULK 
PURCHASING


	§ 111.001.  DEFINITION.  In this chapter, "council" 
means the Interagency Council on Pharmaceuticals Bulk Purchasing.

Added by Acts 2001, 77th Leg., ch. 1003, § 1, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Health & Safety Code § 110.001 by Acts 
2003, 78th Leg., ch. 1275, § 2(90), eff. Sept. 1, 2003.


	§ 111.002.  BULK PURCHASING COUNCIL.  The Interagency 
Council on Pharmaceuticals Bulk Purchasing is composed of an 
officer or employee from each of the following agencies, appointed 
by the administrative head of that agency:
		(1)  the Texas Department of Health;                                          
		(2)  the Texas Department of Mental Health and Mental 
Retardation;          
		(3)  the Correctional Managed Health Care Committee;                          
		(4)  the Employees Retirement System of Texas;                                
		(5)  the Teacher Retirement System of Texas;  and                             
		(6)  any other agency that purchases pharmaceuticals 
designated by the commissioner of health and human services.

Added by Acts 2001, 77th Leg., ch. 1003, § 1, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Health & Safety Code § 110.002 by Acts 
2003, 78th Leg., ch. 1275, § 2(90), eff. Sept. 1, 2003.


	§ 111.003.  PRESIDING OFFICER.  The position of 
presiding officer rotates among the members of the council 
according to the procedures adopted by the council.  A term as 
presiding officer is two years and expires on February 1 of each 
odd-numbered year.

Added by Acts 2001, 77th Leg., ch. 1003, § 1, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Health & Safety Code § 110.003 by Acts 
2003, 78th Leg., ch. 1275, § 2(90), eff. Sept. 1, 2003.


	§ 111.004.  COMPENSATION.  Service on the council is an 
additional duty of a member's office or employment.  A member of the 
council is not entitled to compensation, but is entitled to 
reimbursement of travel expenses incurred by the member while 
conducting the business of the council, as provided in the General 
Appropriations Act.

Added by Acts 2001, 77th Leg., ch. 1003, § 1, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Health & Safety Code § 110.004 by Acts 
2003, 78th Leg., ch. 1275, § 2(90), eff. Sept. 1, 2003.


	§ 111.005.  SUPPORT STAFF.  The council's member 
agencies shall provide the staff for the council.

Added by Acts 2001, 77th Leg., ch. 1003, § 1, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Health & Safety Code § 110.005 by Acts 
2003, 78th Leg., ch. 1275, § 2(90), eff. Sept. 1, 2003.


	§ 111.006.  COUNCIL POWERS AND DUTIES.  (a)  The council 
shall develop procedures that member agencies must follow in 
purchasing pharmaceuticals.  A member agency may elect not to 
follow the council's procedures if the agency can purchase the 
pharmaceuticals for a lower price than through the council.  An 
agency that does not follow the council's procedures shall report 
to the council:
		(1)  the purchase price for the pharmaceuticals;  and                         
		(2)  the name of the wholesaler, retailer, or 
manufacturer selling the pharmaceuticals.
	(b)  The council shall designate one member agency to be the 
central purchasing agency for purchasing pharmaceuticals.
	(c)  The council shall use existing distribution networks, 
including wholesale and retail distributors, to distribute the 
pharmaceuticals.
	(d)  The council shall:                                                        
		(1)  investigate any and all options for better 
purchasing power, including expanding Medicaid purchasing, 
qualifying for participation in purchasing programs under 42 U.S.C. 
Section 256b, as amended, and using rebate programs, hospital 
disproportionate share purchasing, and health department and 
federally qualified health center purchasing;  and
		(2)  make recommendations regarding drug utilization 
review, prior authorization, the use of restrictive formularies, 
the use of mail order programs, and copayment structures to member 
agencies.
	(e)  In conducting the investigation under Subsection (d), 
the council shall monitor the progress of the demonstration project 
for certain medications and related services established by Section 
32.053, Human Resources Code, as added by S.B. 1156, Acts of the 
77th Legislature, Regular Session, 2001, and make no 
recommendations inconsistent with a prescribed medical regime for 
those medications.
	(f)  The council may enter into agreements with a local 
governmental entity to purchase pharmaceuticals for the local 
governmental entity.
	(g)  The council shall develop procedures under which the 
council may disclose information relating to the prices that 
manufacturers or wholesalers charge for pharmaceuticals by 
category of pharmaceutical.  The council may not disclose 
information that identifies a specific manufacturer or wholesaler 
or the prices charged by a specific manufacturer or wholesaler for a 
specific pharmaceutical.

Added by Acts 2001, 77th Leg., ch. 1003, § 1, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Health & Safety Code § 110.006 by Acts 
2003, 78th Leg., ch. 1275, § 2(90), eff. Sept. 1, 2003.