H.B. No. 4638 amends the Texas Pharmaceutical Initiative by expanding the governing board from three to five members, who will be appointed by the governor. The bill introduces staggered six-year terms for board members, with one-third of the terms expiring every odd-numbered year. Additionally, it establishes a process for filling vacancies on the board in the same manner as the original appointment. The bill also updates the timeline for the board to submit a business plan, changing the deadline to June 1 of each even-numbered year, and extends the expiration date of the chapter from September 1, 2025, to September 1, 2027.

Furthermore, the bill outlines specific requirements for the business plan, including recommendations on best practices and cost savings related to pharmacy benefits. It mandates the identification of potential cost savings and the resources needed for implementation. The governor is tasked with appointing the initial board members with staggered terms, ensuring a smooth transition into the new structure. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 2177.003, Government Code 2177.006, Government Code 2177.010 (Government Code 2177)
House Committee Report: Government Code 2177.003, Government Code 2177.006, Government Code 2177.010 (Government Code 2177)
Engrossed: Government Code 2177.003, Government Code 2177.006, Government Code 2177.010 (Government Code 2177)
Senate Committee Report: Government Code 2177.003, Government Code 2177.006, Government Code 2177.010 (Government Code 2177)
Enrolled: Government Code 2177.003, Government Code 2177.006, Government Code 2177.010 (Government Code 2177)