(a) General requirements. In accordance with Chapter 562 of the Act, a pharmacist may dispense a generically equivalent drug or interchangeable biological product if:
  (1) the generic drug or interchangeable biological product costs the patient less than the prescribed drug product;
  (2) the patient does not refuse the substitution; and
  (3) the practitioner does not certify on the prescription form that a specific prescribed brand is medically necessary as specified in a dispensing directive described in subsection (c) of this section.
(b) Prescription format for written prescription drug orders.
  (1) A written prescription drug order issued in Texas may:
    (A) be on a form containing a single signature line for the practitioner; and
    (B) contain the following reminder statement on the face of the prescription: "A generically equivalent drug product may be dispensed unless the practitioner hand writes the words 'Brand Necessary' or 'Brand Medically Necessary' on the face of the prescription."
  (2) A pharmacist may dispense a prescription that is not issued on the form specified in paragraph (1) of this subsection, however, the pharmacist may dispense a generically equivalent drug or interchangeable biological product unless the practitioner has prohibited substitution through a dispensing directive in compliance with subsection (c)(1) of this section.
  (3) The prescription format specified in paragraph (1) of this subsection does not apply to the following types of prescription drug orders:
    (A) prescription drug orders issued by a practitioner in a state other than Texas;
    (B) prescriptions for dangerous drugs issued by a practitioner in the United Mexican States or the Dominion of Canada; or
    (C) prescription drug orders issued by practitioners practicing in a federal facility provided they are acting in the scope of their employment.
  (4) In the event of multiple prescription orders appearing on one prescription form, the practitioner shall clearly identify to which prescription(s) the dispensing directive(s) apply. If the practitioner does not clearly indicate to which prescription(s) the dispensing directive(s) apply, the pharmacist may substitute on all prescriptions on the form.
(c) Dispensing directive.
  (1) General requirements. The following is applicable to the dispensing directive outlined in this subsection.
    (A) When a prescription is issued for a brand name product that has no generic equivalent product, the pharmacist must dispense the brand name product. If a generic equivalent or interchangeable biological product becomes available, a pharmacist may substitute the generically equivalent or interchangeable biological product unless the practitioner has specified on the initial prescription that the brand name product is medically necessary.
    (B) If the practitioner has prohibited substitution through a dispensing directive in compliance with this subsection, a pharmacist shall not substitute a generically equivalent drug or interchangeable biological product unless the pharmacist obtains verbal or written authorization from the practitioner, notes such authorization on the original prescription drug order, and notifies the patient in accordance with §309.4 of this title (relating to Patient Notification).
  (2) Written prescriptions.
    (A) A practitioner may prohibit the substitution of a generically equivalent drug or interchangeable biological product for a brand name drug product by writing across the face of the written prescription, in the practitioner's own handwriting, the phrase "brand necessary" or "brand medically necessary."
    (B) The dispensing directive shall:
      (i) be in a format that protects confidentiality as required by the Health Insurance Portability and Accountability Act of 1996 (29 U.S.C. Section 1181 et seq.) and its subsequent amendments; and
      (ii) comply with federal and state law, including rules, with regard to formatting and security requirements.
    (C) The dispensing directive specified in this paragraph may not be preprinted, rubber stamped, or otherwise reproduced on the prescription form.
    (D) A practitioner may prohibit substitution on a written prescription only by following the dispensing directive specified in this paragraph. Two-line prescription forms, check boxes, or other notations on an original prescription drug order which indicate "substitution instructions" are not valid methods to prohibit substitution, and a pharmacist may substitute on these types of written prescriptions.
  (3) Oral Prescriptions.
    (A) If a prescription drug order is transmitted orally, and the practitioner or practitioner's agent prohibited substitution by specifying "brand necessary" or "brand medically necessary," a notation of any substitution instructions by the practitioner or practitioner's agent shall be made on the file copy of the prescription drug order. Such file copy may follow the one-line format indicated in subsection (b)(1) of this section, or any other format that clearly indicates the substitution instructions.
    (B) If the practitioner's or practitioner's agent does not clearly indicate that the brand name is medically necessary, the pharmacist may substitute a generically equivalent drug or interchangeable biological product.
    (C) To prohibit substitution on an oral prescription reimbursed through the medical assistance program specified in 42 C.F.R., §447.331:
      (i) the practitioner or the practitioner's agent shall orally indicate that the brand is medically necessary; and
      (ii) the practitioner shall mail or fax a written prescription to the pharmacy which complies with the dispensing directive for written prescriptions specified in paragraph (1) of this subsection within 30 days.
  (4) Electronic prescription drug orders.
    (A) To prohibit substitution, the practitioner or practitioner's agent shall clearly indicate substitution instructions in the electronic prescription drug order.
    (B) If the practitioner or practitioner's agent does not indicate or does not clearly indicate in the electronic prescription drug order that the brand is necessary, the pharmacist may substitute a generically equivalent drug or interchangeable biological product.
    (C) To prohibit substitution on an electronic prescription drug order reimbursed through the medical assistance program specified in 42 C.F.R., §447.331, the practitioner shall comply with state and federal laws.
  (5) Prescriptions issued by out-of-state, Mexican, Canadian, or federal facility practitioners.
    (A) The dispensing directive specified in this subsection does not apply to the following types of prescription drug orders:
      (i) prescription drug orders issued by a practitioner in a state other than Texas;
      (ii) prescriptions for dangerous drugs issued by a practitioner in the United Mexican States or the Dominion of Canada; or
      (iii) prescription drug orders issued by practitioners practicing in a federal facility provided they are acting in the scope of their employment.
    (B) A pharmacist may not substitute on prescription drug orders identified in subparagraph (A) of this paragraph unless the practitioner has authorized substitution on the prescription drug order. If the practitioner has not authorized substitution on the written prescription drug order, a pharmacist shall not substitute a generically equivalent drug product unless:
      (i) the pharmacist obtains verbal or written authorization from the practitioner (such authorization shall be noted on the original prescription drug order); or
      (ii) the pharmacist obtains written documentation regarding substitution requirements from the State Board of Pharmacy in the state, other than Texas, in which the prescription drug order was issued. The following is applicable concerning this documentation.
        (I) The documentation shall state that a pharmacist may substitute on a prescription drug order issued in such other state unless the practitioner prohibits substitution on the original prescription drug order.
        (II) The pharmacist shall note on the original prescription drug order the fact that documentation from such other state board of pharmacy is on file.
        (III) Such documentation shall be updated yearly.
(d) Refills.
  (1) Original substitution instructions. All refills shall follow the original substitution instructions unless otherwise indicated by the practitioner or practitioner's agent.
  (2) Narrow therapeutic index drugs.
Cont'd...
(A) The board and the Texas Medical Board shall establish a joint committee to recommend to the board a list of narrow therapeutic index drugs and the rules, if any, by which this paragraph applies to those drugs. The committee must consist of an equal number of members from each board. The committee members shall select a member of the committee to serve as presiding officer for a one year term. The presiding officer may not represent the same board as the presiding officer's predecessor.
    (B) The board, on the recommendation of the joint committee, has determined that no drugs shall be included on a list of narrow therapeutic index drugs as defined in §562.014, Occupations Code.
      (i) The board has specified in §309.7 of this title (relating to dispensing responsibilities) that for drugs listed in the publication, pharmacist shall use as a basis for determining generic equivalency, Approved Drug Products with Therapeutic Equivalence Evaluations and current supplements published by the Federal Food and Drug Administration, within the limitations stipulated in that publication. For drugs listed in the publications, pharmacists may only substitute products that are rated therapeutically equivalent in the Approved Drug Products with Therapeutic Equivalence Evaluations and current supplements.
      (ii) Practitioners may prohibit substitution through a dispensing directive in compliance with subsection (c) of this section.
    (C) The board shall reconsider the contents of the list if:
      (i) the Federal Food and Drug Administration determines a new equivalence classification which indicates that certain drug products are equivalent but special notification to the patient and practitioner is required when substituting these products; or
      (ii) any interested person petitions the board to reconsider the list. If the board receives a petition to include a drug on the list, the joint committee specified in subparagraph (A) of this paragraph shall review the request and make a recommendation to the board.

Source Note: The provisions of this §309.3 adopted to be effective June 1, 2002, 27 TexReg 1782; amended to be effective June 12, 2005, 30 TexReg 3210; amended to be effective June 8, 2008, 33 TexReg 4311; amended to be effective September 7, 2008, 33 TexReg 7243; amended to be effective December 7, 2010, 35 TexReg 10693; amended to be effective December 6, 2015, 40 TexReg 8790; amended to be effective December 10, 2020, 45 TexReg 8866