Contracts
Current Contracts: No immediate amendments required.
Future Contracts: Vendors currently servicing TRS, ERS, or Texas Medicaid must review "Termination for Convenience" clauses. The state is mandated to establish a consolidated "statewide PBM" and distribution network, placing existing fragmented contracts at risk of non-renewal or consolidation post-2026.
Hiring/Training
No new mandatory certifications or workforce training are required by this statute.
Strategic Staffing: Government Affairs teams must pivot focus to the Office of the Governor, as two new Board members will be appointed immediately. These appointees will shape the RFPs for the state's manufacturing and distribution partners.
Reporting & Record-Keeping
No new statutory reporting is required for private entities at this time.
Future Preparation: Entities intending to bid on TPI contracts (logistics, manufacturing, PBM services) must prepare for rigorous conflict-of-interest disclosures regarding financial ties to existing supply chain intermediaries, as mandated by Section 3(3).
Fees & Costs
There are no new licensure fees or taxes imposed on private business by this bill. The Legislative Budget Board anticipates no significant fiscal implication to the State, implying the initiative is expected to be self-sustaining or funded through cost savings.
