The Texas Health and Human Services Commission (Commission) proposes amendments to Subchapter F concerning Pharmacy Services. Specifically, the Commission proposes amendments to §354.1833 and §354. 1891. Government Code, §2001.039 requires that each state agency review, and consider for readoption, each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Commission has reviewed Subchapter F and has determined that reasons for adopting the Subchapter continue to exist; however, changes to these rules were necessary as described in this preamble.

The Commission published a Notice of Intention to review Subchapter F in the Texas Register on June 28,2002 (27 TexReg 5803). No comments were received due to publication of this notice. The adoption of this rule review was published in the January 3, 2002, issue of the Texas Register (28 TexReg 374).

This section amends provisions relating to the operation of the Vendor Drug Program. Specifically, language is revised to: reflect the movement of these rules from Title 25 to Title 1 of the Texas Administrative Code, change references to rules and update language resulting from the change in program responsibility for these rules from the Texas Department of Health to the Texas Health and Human Services Commission. In addition, §354.1833 has been updated to clarify that the meaning of dispensing in these rules is the same as that currently found in the Pharmacy Provider Handbook. §354.1891 has also been updated to make the processes for Vendor Drug Provider audit resolution more consistent with other Commission processes for provider resolution. Changes and repeals that are being proposed to several other rules in Subchapter F as a result of this rule review have been proposed separately.

Tom Suehs, Deputy Commissioner of Financial Services, has determined that for each year of the first five years the section is in effect, there will be no fiscal implications for state and local government as a result of amending the Subchapter as proposed.

Mr. Suehs has also determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of amending the Subchapter will be to update the references in the rules for accuracy and clarity; to eliminate any misunderstanding regarding the definition of Pharmacy Services in the Vendor Drug Program; and to make the processes of provider resolution more consistent within the Commission. There will be no costs to small business or micro-business resulting from compliance with these rules as the rules only update and clarify existing rules, and make them consistent within the Commission. There are no anticipated economic costs to persons who are required to comply with the rules proposed. There is no anticipated impact on local employment.

The Commission has determined that the proposal is not a "major environmental rule" as defined by §2001.0255 of the Texas Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. These rules are not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

The Commission has determined that this proposal does not restrict or limit an owner's right to their property and that would otherwise exist in the absence of governmental action and therefore does not constitute a taking under §2007.043, Government Code.

Comments may be submitted to Patricia Gladden, Texas Health and Human Services Commission, 1100 West 49th Street, Austin, Texas, 78756, or at (512) 794-5163, within 30 days of publication of this proposal in the Texas Register .

Subchapter A. COST DETERMINATION PROCESS

Subchapter G. LEGAL ACTION RELATING TO PROVIDERS OF MEDICAL ASSISTANCE