Bill Text: TX HB3496 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the licensing and regulation of certain pharmacies; providing an administrative penalty.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2019-06-10 - Effective on 1/1/20 [HB3496 Detail]
Download: Texas-2019-HB3496-Introduced.html
Bill Title: Relating to the licensing and regulation of certain pharmacies; providing an administrative penalty.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2019-06-10 - Effective on 1/1/20 [HB3496 Detail]
Download: Texas-2019-HB3496-Introduced.html
By: Sheffield | H.B. No. 3496 |
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relating to financial investor disclosure and surety bond | ||
requirements for certain pharmacies; providing an administrative | ||
penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 560.052(b), Occupations Code, is amended | ||
to read as follows: | ||
(b) To qualify for a pharmacy license, an applicant must | ||
submit to the board: | ||
(1) a license fee set by the board, except as provided | ||
by Subsection (d); [ |
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(2) a completed application that: | ||
(A) is on a form prescribed by the board; | ||
(B) is given under oath; | ||
(C) includes proof that: | ||
(i) a pharmacy license held by the | ||
applicant in this state or another state, if applicable, has not | ||
been restricted, suspended, revoked, or surrendered for any reason; | ||
and | ||
(ii) no owner of the pharmacy for which the | ||
application is made has held a pharmacist license in this state or | ||
another state, if applicable, that has been restricted, suspended, | ||
revoked, or surrendered for any reason; and | ||
(D) includes a statement of: | ||
(i) the ownership; | ||
(ii) the location of the pharmacy; | ||
(iii) the license number of each pharmacist | ||
who is employed by the pharmacy, if the pharmacy is located in this | ||
state, or who is licensed to practice pharmacy in this state, if the | ||
pharmacy is located in another state; | ||
(iv) the pharmacist license number of the | ||
pharmacist-in-charge; and | ||
(v) any other information the board | ||
determines necessary; and | ||
(3) if the applicant is not a pharmacy operated by a | ||
publicly traded company: | ||
(A) a statement disclosing: | ||
(i) the pharmacy's financial investors as | ||
provided by Section 560.0521; and | ||
(ii) the criminal history record | ||
information of each individual owner and financial investor of the | ||
pharmacy, or of each individual managing officer of the pharmacy if | ||
the pharmacy is a partnership or closely held corporation, | ||
accompanied by a complete and legible set of fingerprints of each | ||
individual owner, financial investor, and managing officer, as | ||
applicable; and | ||
(B) a surety bond that meets the requirements of | ||
Section 560.0522. | ||
SECTION 2. Subchapter B, Chapter 560, Occupations Code, is | ||
amended by adding Sections 560.0521 and 560.0522 to read as | ||
follows: | ||
Sec. 560.0521. FINANCIAL INVESTOR DISCLOSURE STATEMENT. | ||
(a) A disclosure statement of financial investors included with an | ||
application under Section 560.052(b)(3) must include: | ||
(1) the name of each person who is financially | ||
invested in the pharmacy; | ||
(2) the total amount of the financial investment made | ||
by each person; and | ||
(3) the source of the financial investment as required | ||
by Subsection (b). | ||
(b) The disclosure of the source of a financial investment | ||
required by Subsection (a)(3) must include: | ||
(1) if the source is money from a checking or savings | ||
account at a financial institution: | ||
(A) the name and address of the financial | ||
institution; and | ||
(B) the account number from which the financial | ||
investment was obtained or in which the financial investment is | ||
maintained; | ||
(2) if the source is from the sale of property: | ||
(A) the type of property sold; and | ||
(B) if the property sold is real property: | ||
(i) the property's address; | ||
(ii) the buyer's name and address; | ||
(iii) the date of the sale; and | ||
(iv) the amount of the net proceeds from the | ||
sale of the property; | ||
(3) if the source is from a loan: | ||
(A) the date the loan was made; | ||
(B) the amount and terms of the loan; | ||
(C) the collateral securing the loan, if any; | ||
(D) the name and address of the lender; and | ||
(E) a copy of the loan agreement; | ||
(4) if the source is from an inheritance or gift: | ||
(A) the amount of the inheritance or gift; and | ||
(B) the donor's name, address, and relation to | ||
the investor, if any; and | ||
(5) a description of any other source not specified by | ||
this subsection. | ||
Sec. 560.0522. SURETY BOND. (a) A person required to | ||
submit a surety bond to the board under Section 560.052(b)(3) or | ||
562.1015 must obtain the bond from a surety company authorized by | ||
the board and keep the bond in force until the later of the date: | ||
(1) the license issued to the person under this | ||
chapter expires; or | ||
(2) the surety company exercises its right of | ||
termination. | ||
(b) The board may use a pharmacy's surety bond to secure the | ||
payment of a fine, fee, or penalty imposed on the pharmacy or costs | ||
incurred by the board in conducting an investigation of the | ||
pharmacy under this subtitle if the pharmacy fails to pay the fine, | ||
fee, penalty, or cost not later than the 30th day after the date an | ||
order requiring payment becomes final. | ||
(c) The surety bond must: | ||
(1) identify on the face of the bond the parties to the | ||
bond as follows: | ||
(A) the pharmacy as principal; | ||
(B) the board as obligee; and | ||
(C) the surety company, and its heirs, executors, | ||
administrators, successors, and assignees, jointly and severally, | ||
as surety; | ||
(2) state an effective date and expiration date; | ||
(3) be in an amount not to exceed $25,000; and | ||
(4) provide that: | ||
(A) the surety is liable on the obligations of | ||
the surety bond; and | ||
(B) after the bond's expiration, unless the | ||
pharmacy provides a new, updated, or renewed surety bond that meets | ||
the requirements of this subsection, the surety remains liable for | ||
any fine or penalty imposed on the pharmacy during the term of the | ||
bond until the later of the second anniversary of the date: | ||
(i) the bond expires; or | ||
(ii) the pharmacy's license is terminated | ||
by the board. | ||
(d) A surety's liability to the board is not affected or | ||
terminated by: | ||
(1) an action taken by the pharmacy or surety to | ||
terminate the bond or to reduce or limit the scope or term of the | ||
bond; or | ||
(2) the pharmacy: | ||
(A) ceasing operations; | ||
(B) selling or transferring any assets or | ||
ownership interests; | ||
(C) filing for bankruptcy; or | ||
(D) failing to pay the surety. | ||
(e) A surety's liability is terminated only if: | ||
(1) the surety provides to the board at least 30 days' | ||
written notice of the surety's intent to terminate the surety bond; | ||
(2) the pharmacy provides the board with a new surety | ||
bond that meets the requirements of this section; and | ||
(3) the surety guarantees that on receipt of a written | ||
request for payment by the board, the surety will reimburse the | ||
board for the amount stated in the request that does not exceed the | ||
amount of the bond. | ||
SECTION 3. Subchapter C, Chapter 562, Occupations Code, is | ||
amended by adding Section 562.1015 to read as follows: | ||
Sec. 562.1015. SURETY BOND REQUIRED FOR CHANGE OF | ||
OWNERSHIP. A pharmacy that is not operated by a publicly traded | ||
company must submit to the board a surety bond that meets the | ||
requirements of Section 560.0522 before the date of a change of | ||
ownership of the pharmacy. | ||
SECTION 4. Section 566.001, Occupations Code, is amended to | ||
read as follows: | ||
Sec. 566.001. IMPOSITION OF PENALTY. The board may impose | ||
an administrative penalty on: | ||
(1) a person licensed or regulated under this subtitle | ||
who violates this subtitle or a rule or order adopted under this | ||
subtitle; and | ||
(2) an applicant who fails to disclose criminal | ||
history record information in the manner required by Section | ||
560.052(b). | ||
SECTION 5. The changes in law made by this Act apply only to | ||
an application for a pharmacy license that is submitted or a change | ||
of ownership by a pharmacy that occurs on or after the effective | ||
date of this Act. An application for a pharmacy license that was | ||
submitted or a change of ownership by a pharmacy that occurred | ||
before the effective date of this Act is governed by the law in | ||
effect on the date the application was submitted or the change of | ||
ownership occurred, and the former law is continued in effect for | ||
that purpose. | ||
SECTION 6. This Act takes effect September 1, 2019. |