Texas § GV.438.204 - DRUG SUPPLY CHAIN AUDIT

§ GV.438.204. DRUG SUPPLY CHAIN AUDIT

DRUG SUPPLY CHAIN AUDIT; REPORT. (a) In this section, "company subject to the jurisdiction of a foreign adversary" includes a state-owned enterprise of a foreign adversary, a company domiciled or headquartered in the territory of a foreign adversary, or any wholly owned or majority-owned subsidiary of a company domiciled or headquartered in the territory of a foreign adversary. (b) The advisory committee, in collaboration with the Health and Human Services Commission and the Department of State Health Services, shall investigate the drug supply chain of this state to identify prescription drugs, including active pharmaceutical ingredients and key starting materials, that are produced in or by a foreign adversary or substantially sourced from a company subject to the jurisdiction of a foreign adversary. (c) The advisory committee shall investigate whether the prescription drugs identified under Subsection (b): (1) are of low or questionable efficacy; or (2) are toxic or contain impurities known to the United States Food and Drug Administration, the United States Department of Agriculture, or any other governmental agencies to pose a risk to human health. (d) The advisory committee shall study whether the drug supply chain of the prescription drugs identified under Subsection (b) would be disrupted in the event of a geopolitical conflict. (e) The advisory committee shall produce an initial report on the prescription drugs identified under Subsection (b). The initial report must: (1) list the prescription drugs; (2) identify the classes and common uses of the prescription drugs; (3) assess the risk posed by the prescription drugs, including concerns related to quality, efficacy, toxicity, or impurity; (4) determine the impact of a geopolitical conflict on the drug supply chain of the prescription drugs; (5) recommend alternative sourcing strategies for the prescription drugs in the event of a geopolitical conflict; (6) describe any difficulty in identifying or using alternative sourcing strategies under Subdivision (5) for prescription drugs, as necessary; and (7) determine the feasibility and cost of creating and maintaining a strategic supply of prescription drugs in the event of a geopolitical conflict. (f) The advisory committee shall submit the initial report of prescription drugs identified under this section to the governor not later than October 1, 2026. (g) The advisory committee may conduct additional investigations and produce additional reports on the prescription drugs identified under Subsection (b) as the committee determines necessary. Added by Acts 2025, 89th Leg., R.S., Ch. 94 (S.B. 2312 ), Sec. 1, eff. September 1, 2025.