| 1 | A bill to be entitled |
| 2 | An act relating to veterinary prescription drugs; amending |
| 3 | s. 499.003, F.S.; providing a definition; amending s. |
| 4 | 499.01, F.S.; requiring a person or establishment to |
| 5 | obtain a permit in order to operate as a veterinary |
| 6 | prescription drug wholesaler; amending s. 499.012, F.S.; |
| 7 | providing that the distribution of veterinary prescription |
| 8 | drugs is not included within the meaning of the terms |
| 9 | "wholesale distribution" or "wholesale distributor" of |
| 10 | prescription drugs; amending s. 499.041, F.S.; requiring |
| 11 | an annual fee for a veterinary prescription drug |
| 12 | wholesaler's permit; amending s. 499.065, F.S.; requiring |
| 13 | the Department of Health to inspect veterinary |
| 14 | prescription drug wholesale establishments; authorizing |
| 15 | the department to close such establishment if it creates |
| 16 | an imminent danger to the public health; providing an |
| 17 | effective date. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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| 21 | Section 1. Subsection (40) is added to section 499.003, |
| 22 | Florida Statutes, to read: |
| 23 | 499.003 Definitions of terms used in ss. 499.001- |
| 24 | 499.081.--As used in ss. 499.001-499.081, the term: |
| 25 | (40) "Veterinary prescription drug wholesaler" means any |
| 26 | person engaged in wholesale distribution of veterinary |
| 27 | prescription drugs in or into this state. A veterinary |
| 28 | prescription drug wholesaler may not sell any veterinary |
| 29 | prescription drugs to any person or entity other than an animal |
| 30 | health entity. |
| 31 | Section 2. Subsection (1) of section 499.01, Florida |
| 32 | Statutes, is amended to read: |
| 33 | 499.01 Permits; applications; renewal; general |
| 34 | requirements.-- |
| 35 | (1) Prior to operating, a permit is required for each |
| 36 | person and establishment that intends to operate as: |
| 37 | (a) A prescription drug manufacturer; |
| 38 | (b) A prescription drug repackager; |
| 39 | (c) An over-the-counter drug manufacturer; |
| 40 | (d) A compressed medical gas manufacturer; |
| 41 | (e) A device manufacturer; |
| 42 | (f) A cosmetic manufacturer; |
| 43 | (g) A prescription drug wholesaler; |
| 44 | (h) A compressed medical gas wholesaler; |
| 45 | (i) An out-of-state prescription drug wholesaler; |
| 46 | (j) A nonresident prescription drug manufacturer; |
| 47 | (k) A freight forwarder; |
| 48 | (l) A retail pharmacy drug wholesaler; |
| 49 | (m) A veterinary legend drug retail establishment; |
| 50 | (n) A medical oxygen retail establishment; |
| 51 | (o) A complimentary drug distributor; or |
| 52 | (p) A restricted prescription drug distributor; or. |
| 53 | (q) A veterinary prescription drug wholesaler. |
| 54 | Section 3. Paragraphs (a) and (b) of subsection (1) of |
| 55 | section 499.012, Florida Statutes, are amended to read: |
| 56 | 499.012 Wholesale distribution; definitions; permits; |
| 57 | applications; general requirements.-- |
| 58 | (1) As used in this section, the term: |
| 59 | (a) "Wholesale distribution" means distribution of |
| 60 | prescription drugs to persons other than a consumer or patient, |
| 61 | but does not include: |
| 62 | 1. Any of the following activities, which is not a |
| 63 | violation of s. 499.005(21) if such activity is conducted in |
| 64 | accordance with s. 499.014: |
| 65 | a. The purchase or other acquisition by a hospital or |
| 66 | other health care entity that is a member of a group purchasing |
| 67 | organization of a prescription drug for its own use from the |
| 68 | group purchasing organization or from other hospitals or health |
| 69 | care entities that are members of that organization. |
| 70 | b. The sale, purchase, or trade of a prescription drug or |
| 71 | an offer to sell, purchase, or trade a prescription drug by a |
| 72 | charitable organization described in s. 501(c)(3) of the |
| 73 | Internal Revenue Code of 1986, as amended and revised, to a |
| 74 | nonprofit affiliate of the organization to the extent otherwise |
| 75 | permitted by law. |
| 76 | c. The sale, purchase, or trade of a prescription drug or |
| 77 | an offer to sell, purchase, or trade a prescription drug among |
| 78 | hospitals or other health care entities that are under common |
| 79 | control. For purposes of this section, "common control" means |
| 80 | the power to direct or cause the direction of the management and |
| 81 | policies of a person or an organization, whether by ownership of |
| 82 | stock, by voting rights, by contract, or otherwise. |
| 83 | d. The sale, purchase, trade, or other transfer of a |
| 84 | prescription drug from or for any federal, state, or local |
| 85 | government agency or any entity eligible to purchase |
| 86 | prescription drugs at public health services prices pursuant to |
| 87 | Pub. L. No. 102-585, s. 602 to a contract provider or its |
| 88 | subcontractor for eligible patients of the agency or entity |
| 89 | under the following conditions: |
| 90 | (I) The agency or entity must obtain written authorization |
| 91 | for the sale, purchase, trade, or other transfer of a |
| 92 | prescription drug under this sub-subparagraph from the Secretary |
| 93 | of Health or his or her designee. |
| 94 | (II) The contract provider or subcontractor must be |
| 95 | authorized by law to administer or dispense prescription drugs. |
| 96 | (III) In the case of a subcontractor, the agency or entity |
| 97 | must be a party to and execute the subcontract. |
| 98 | (IV) A contract provider or subcontractor must maintain |
| 99 | separate and apart from other prescription drug inventory any |
| 100 | prescription drugs of the agency or entity in its possession. |
| 101 | (V) The contract provider and subcontractor must maintain |
| 102 | and produce immediately for inspection all records of movement |
| 103 | or transfer of all the prescription drugs belonging to the |
| 104 | agency or entity, including, but not limited to, the records of |
| 105 | receipt and disposition of prescription drugs. Each contractor |
| 106 | and subcontractor dispensing or administering these drugs must |
| 107 | maintain and produce records documenting the dispensing or |
| 108 | administration. Records that are required to be maintained |
| 109 | include, but are not limited to, a perpetual inventory itemizing |
| 110 | drugs received and drugs dispensed by prescription number or |
| 111 | administered by patient identifier, which must be submitted to |
| 112 | the agency or entity quarterly. |
| 113 | (VI) The contract provider or subcontractor may administer |
| 114 | or dispense the prescription drugs only to the eligible patients |
| 115 | of the agency or entity or must return the prescription drugs |
| 116 | for or to the agency or entity. The contract provider or |
| 117 | subcontractor must require proof from each person seeking to |
| 118 | fill a prescription or obtain treatment that the person is an |
| 119 | eligible patient of the agency or entity and must, at a minimum, |
| 120 | maintain a copy of this proof as part of the records of the |
| 121 | contractor or subcontractor required under sub-sub-subparagraph |
| 122 | (V). |
| 123 | (VII) In addition to the departmental inspection authority |
| 124 | set forth in s. 499.051, the establishment of the contract |
| 125 | provider and subcontractor and all records pertaining to |
| 126 | prescription drugs subject to this sub-subparagraph shall be |
| 127 | subject to inspection by the agency or entity. All records |
| 128 | relating to prescription drugs of a manufacturer under this sub- |
| 129 | subparagraph shall be subject to audit by the manufacturer of |
| 130 | those drugs, without identifying individual patient information. |
| 131 | 2. Any of the following activities, which is not a |
| 132 | violation of s. 499.005(21) if such activity is conducted in |
| 133 | accordance with rules established by the department: |
| 134 | a. The sale, purchase, or trade of a prescription drug |
| 135 | among federal, state, or local government health care entities |
| 136 | that are under common control and are authorized to purchase |
| 137 | such prescription drug. |
| 138 | b. The sale, purchase, or trade of a prescription drug or |
| 139 | an offer to sell, purchase, or trade a prescription drug for |
| 140 | emergency medical reasons. For purposes of this sub- |
| 141 | subparagraph, the term "emergency medical reasons" includes |
| 142 | transfers of prescription drugs by a retail pharmacy to another |
| 143 | retail pharmacy to alleviate a temporary shortage. |
| 144 | c. The transfer of a prescription drug acquired by a |
| 145 | medical director on behalf of a licensed emergency medical |
| 146 | services provider to that emergency medical services provider |
| 147 | and its transport vehicles for use in accordance with the |
| 148 | provider's license under chapter 401. |
| 149 | d. The revocation of a sale or the return of a |
| 150 | prescription drug to the person's prescription drug wholesale |
| 151 | supplier. |
| 152 | e. The donation of a prescription drug by a health care |
| 153 | entity to a charitable organization that has been granted an |
| 154 | exemption under s. 501(c)(3) of the Internal Revenue Code of |
| 155 | 1986, as amended, and that is authorized to possess prescription |
| 156 | drugs. |
| 157 | f. The transfer of a prescription drug by a person |
| 158 | authorized to purchase or receive prescription drugs to a person |
| 159 | licensed or permitted to handle reverse distributions or |
| 160 | destruction under the laws of the jurisdiction in which the |
| 161 | person handling the reverse distribution or destruction receives |
| 162 | the drug. |
| 163 | g. The transfer of a prescription drug by a hospital or |
| 164 | other health care entity to a person licensed under this chapter |
| 165 | to repackage prescription drugs for the purpose of repackaging |
| 166 | the prescription drug for use by that hospital, or other health |
| 167 | care entity and other health care entities that are under common |
| 168 | control, if ownership of the prescription drugs remains with the |
| 169 | hospital or other health care entity at all times. In addition |
| 170 | to the recordkeeping requirements of s. 499.0121(6), the |
| 171 | hospital or health care entity that transfers prescription drugs |
| 172 | pursuant to this sub-subparagraph must reconcile all drugs |
| 173 | transferred and returned and resolve any discrepancies in a |
| 174 | timely manner. |
| 175 | 3. The distribution of prescription drug samples by |
| 176 | manufacturers' representatives or distributors' representatives |
| 177 | conducted in accordance with s. 499.028. |
| 178 | 4. The sale, purchase, or trade of blood and blood |
| 179 | components intended for transfusion. As used in this |
| 180 | subparagraph, the term "blood" means whole blood collected from |
| 181 | a single donor and processed either for transfusion or further |
| 182 | manufacturing, and the term "blood components" means that part |
| 183 | of the blood separated by physical or mechanical means. |
| 184 | 5. The lawful dispensing of a prescription drug in |
| 185 | accordance with chapter 465. |
| 186 | 6. The distribution of veterinary prescription drugs. |
| 187 | (b) "Wholesale distributor" means any person engaged in |
| 188 | wholesale distribution of prescription drugs, other than |
| 189 | veterinary prescription drugs, in or into this state, including, |
| 190 | but not limited to, manufacturers; repackagers; own-label |
| 191 | distributors; jobbers; private-label distributors; brokers; |
| 192 | warehouses, including manufacturers' and distributors' |
| 193 | warehouses, chain drug warehouses, and wholesale drug |
| 194 | warehouses; independent wholesale drug traders; exporters; |
| 195 | retail pharmacies; and the agents thereof that conduct wholesale |
| 196 | distributions. |
| 197 | Section 4. Paragraph (h) is added to subsection (1) of |
| 198 | section 499.041, Florida Statutes, to read: |
| 199 | 499.041 Schedule of fees for drug, device, and cosmetic |
| 200 | applications and permits, product registrations, and free-sale |
| 201 | certificates.-- |
| 202 | (1) The department shall assess applicants requiring a |
| 203 | manufacturing permit an annual fee within the ranges established |
| 204 | in this section for the specific type of manufacturer. |
| 205 | (h) The fee for a veterinary prescription drug |
| 206 | wholesaler's permit may not be less than $300 or more than $500 |
| 207 | annually. |
| 208 | Section 5. Section 499.065, Florida Statutes, is amended |
| 209 | to read: |
| 210 | 499.065 Imminent danger.-- |
| 211 | (1) Notwithstanding s. 499.051, the department shall |
| 212 | inspect each prescription drug wholesale establishment, |
| 213 | prescription drug repackager establishment, veterinary |
| 214 | prescription drug wholesale establishment, and retail pharmacy |
| 215 | drug wholesaler establishment that is required to be permitted |
| 216 | under this chapter as often as necessary to ensure compliance |
| 217 | with applicable laws and rules. The department shall have the |
| 218 | right of entry and access to these facilities at any reasonable |
| 219 | time. |
| 220 | (2) To protect the public from prescription drugs that are |
| 221 | adulterated or otherwise unfit for human or animal consumption, |
| 222 | the department may examine, sample, seize, and stop the sale or |
| 223 | use of prescription drugs to determine the condition of those |
| 224 | drugs. The department may immediately seize and remove any |
| 225 | prescription drugs if the Secretary of Health or his or her |
| 226 | designee determines that such prescription drugs represent a |
| 227 | threat to the public health. The owner of any property seized |
| 228 | under this section may, within 10 days after the seizure, apply |
| 229 | to a court of competent jurisdiction for whatever relief is |
| 230 | appropriate. At any time after 10 days, the department may |
| 231 | destroy the drugs as contraband. |
| 232 | (3) The department may determine that a prescription drug |
| 233 | wholesale establishment, prescription drug repackager |
| 234 | establishment, veterinary prescription drug wholesale |
| 235 | establishment, or retail pharmacy drug wholesaler establishment |
| 236 | that is required to be permitted under this chapter is an |
| 237 | imminent danger to the public health and require its immediate |
| 238 | closure if such establishment fails to comply with applicable |
| 239 | laws and rules and, because of such failure, presents an |
| 240 | imminent threat to the public's health, safety, or welfare. Any |
| 241 | establishment so deemed and closed shall remain closed until |
| 242 | allowed by the department or by judicial order to reopen. |
| 243 |
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| 244 | For purposes of this section, a refusal to allow entry to the |
| 245 | department for inspection at reasonable times, or a failure or |
| 246 | refusal to provide the department with required documentation |
| 247 | for purposes of inspection, constitutes an imminent danger to |
| 248 | the public health. |
| 249 | Section 6. This act shall take effect July 1, 2004. |