Senate Bill sb1654c1

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    Florida Senate - 2005                           CS for SB 1654

    By the Committee on Regulated Industries; and Senator Fasano





    580-1994-05

  1                      A bill to be entitled

  2         An act relating to veterinary drug

  3         distribution; amending s. 499.006, F.S.;

  4         providing that a drug is adulterated if it is a

  5         certain prescription drug that has been

  6         returned by a veterinarian to a limited

  7         veterinary prescription drug wholesaler;

  8         amending s. 499.01, F.S.; requiring a limited

  9         veterinary prescription drug wholesaler to

10         obtain a permit for operation from the

11         Department of Health; providing that a permit

12         for a limited veterinary prescription drug

13         wholesaler may not be issued to the address of

14         certain health care entities; amending s.

15         499.012, F.S.; establishing a permit for a

16         limited veterinary prescription drug

17         wholesaler; amending s. 499.0122, F.S.;

18         redefining the term "veterinary legend drug

19         retail establishment"; amending s. 499.041,

20         F.S.; requiring the department to assess an

21         annual fee within a certain monetary range for

22         a limited veterinary prescription drug

23         wholesaler permit; amending s. 499.065, F.S.;

24         requiring the department to inspect each

25         limited veterinary prescription drug wholesaler

26         establishment; authorizing the department to

27         determine that a limited veterinary

28         prescription drug wholesaler establishment is

29         an imminent danger to the public; providing an

30         effective date.

31  

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  Be It Enacted by the Legislature of the State of Florida:

 2  

 3         Section 1.  Section 499.006, Florida Statutes, is

 4  amended to read:

 5         499.006  Adulterated drug or device.--A drug or device

 6  is adulterated:

 7         (1)  If it consists in whole or in part of any filthy,

 8  putrid, or decomposed substance;

 9         (2)  If it has been produced, prepared, packed, or held

10  under conditions whereby it could have been contaminated with

11  filth or rendered injurious to health;

12         (3)  If it is a drug and the methods used in, or the

13  facilities or controls used for, its manufacture, processing,

14  packing, or holding do not conform to, or are not operated or

15  administered in conformity with, current good manufacturing

16  practices to assure that the drug meets the requirements of

17  ss. 499.001-499.081 and that the drug has the identity and

18  strength, and meets the standard of quality and purity, which

19  it purports or is represented to possess;

20         (4)  If it is a drug and its container is composed, in

21  whole or in part, of any poisonous or deleterious substance

22  which could render the contents injurious to health;

23         (5)  If it is a drug and it bears or contains, for the

24  purpose of coloring only, a color additive that is unsafe

25  within the meaning of the federal act; or, if it is a color

26  additive, the intended use of which in or on drugs is for the

27  purpose of coloring only, and it is unsafe within the meaning

28  of the federal act;

29         (6)  If it purports to be, or is represented as, a drug

30  the name of which is recognized in the official compendium,

31  and its strength differs from, or its quality or purity falls

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  below, the standard set forth in such compendium.  The

 2  determination as to strength, quality, or purity must be made

 3  in accordance with the tests or methods of assay set forth in

 4  such compendium, or, when such tests or methods of assay are

 5  absent or inadequate, in accordance with those tests or

 6  methods of assay prescribed under authority of the federal

 7  act.  A drug defined in the official compendium is not

 8  adulterated under this subsection merely because it differs

 9  from the standard of strength, quality, or purity set forth

10  for that drug in such compendium if its difference in

11  strength, quality, or purity from such standard is plainly

12  stated on its label;

13         (7)  If it is not subject to subsection (6) and its

14  strength differs from, or its purity or quality falls below

15  the standard of, that which it purports or is represented to

16  possess;

17         (8)  If it is a drug:

18         (a)  With which any substance has been mixed or packed

19  so as to reduce the quality or strength of the drug; or

20         (b)  For which any substance has been substituted

21  wholly or in part;

22         (9)  If it is a drug or device for which the expiration

23  date has passed; or

24         (10)  If it is a legend drug for which the required

25  pedigree paper is nonexistent, fraudulent, or incomplete under

26  the requirements of ss. 499.001-499.081 or applicable rules,

27  or that has been purchased, held, sold, or distributed at any

28  time by a person not authorized under federal or state law to

29  do so; or.

30         (11)  If it is a prescription drug subject to, defined

31  by, or described by s. 503(b) of the Federal Food, Drug, and

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  Cosmetic Act which has been returned by a veterinarian to a

 2  limited veterinary prescription drug wholesaler.

 3         Section 2.  Subsection (1) and paragraph (d) of

 4  subsection (2) of section 499.01, Florida Statutes, are

 5  amended to read:

 6         499.01  Permits; applications; renewal; general

 7  requirements.--

 8         (1)  Prior to operating, a permit is required for each

 9  person and establishment that intends to operate as:

10         (a)  A prescription drug manufacturer;

11         (b)  A prescription drug repackager;

12         (c)  An over-the-counter drug manufacturer;

13         (d)  A compressed medical gas manufacturer;

14         (e)  A device manufacturer;

15         (f)  A cosmetic manufacturer;

16         (g)  A prescription drug wholesaler;

17         (h)  A veterinary prescription drug wholesaler;

18         (i)  A compressed medical gas wholesaler;

19         (j)  An out-of-state prescription drug wholesaler;

20         (k)  A nonresident prescription drug manufacturer;

21         (l)  A freight forwarder;

22         (m)  A retail pharmacy drug wholesaler;

23         (n)  A veterinary legend drug retail establishment;

24         (o)  A medical oxygen retail establishment;

25         (p)  A complimentary drug distributor; or

26         (q)  A restricted prescription drug distributor; or.

27         (r)  A limited veterinary prescription drug wholesaler.

28         (2)

29         (d)  A permit for a prescription drug manufacturer,

30  prescription drug repackager, prescription drug wholesaler,

31  limited veterinary prescription drug wholesaler, or retail

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  pharmacy wholesaler may not be issued to the address of a

 2  health care entity or to a pharmacy licensed under chapter

 3  465, except as provided in this paragraph. The department may

 4  issue a prescription drug manufacturer permit to an applicant

 5  at the same address as a licensed nuclear pharmacy, which is a

 6  health care entity, for the purpose of manufacturing

 7  prescription drugs used in positron emission tomography or

 8  other radiopharmaceuticals, as listed in a rule adopted by the

 9  department pursuant to this paragraph. The purpose of this

10  exemption is to assure availability of state-of-the-art

11  pharmaceuticals that would pose a significant danger to the

12  public health if manufactured at a separate establishment

13  address from the nuclear pharmacy from which the prescription

14  drugs are dispensed. The department may also issue a retail

15  pharmacy wholesaler permit to the address of a community

16  pharmacy licensed under chapter 465 which does not meet the

17  definition of a closed pharmacy in s. 499.003.

18         Section 3.  Paragraph (h) is added to subsection (2) of

19  section 499.012, Florida Statutes, to read:

20         499.012  Wholesale distribution; definitions; permits;

21  applications; general requirements.--

22         (2)  The following types of wholesaler permits are

23  established:

24         (h)  Limited veterinary prescription drug wholesaler

25  permit.--Unless engaging in the activities of and permitted as

26  a prescription drug manufacturer, nonresident prescription

27  drug manufacturer, prescription drug wholesaler, or

28  out-of-state prescription drug wholesaler, a limited

29  veterinary prescription drug wholesaler permit is required for

30  any person that engages in the distribution in or into this

31  state of veterinary prescription drugs and prescription drugs

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  subject to, defined by, or described by s. 503(b) of the

 2  Federal Food, Drug, and Cosmetic Act to veterinarians under

 3  the following conditions:

 4         1.  The person is engaged in the business of

 5  wholesaling prescription and veterinary legend drugs to

 6  veterinarians on a full-time basis.

 7         2.  No more than 30 percent of prescription drug sales

 8  may be prescription drugs approved for human use which are

 9  subject to, defined by, or described by s. 503(b) of the

10  Federal Food, Drug, and Cosmetic Act.

11         3.  The person is not permitted, licensed, or otherwise

12  authorized in any state to wholesale prescription drugs

13  subject to, defined by, or described by s. 503(b) of the

14  Federal Food, Drug, and Cosmetic Act to any person who is

15  authorized to sell, distribute, purchase, trade, or use these

16  drugs on or for humans.

17         4.  A limited veterinary prescription drug wholesaler

18  that applies to the department for a new permit or the renewal

19  of a permit must submit a bond of $20,000, or other equivalent

20  means of security acceptable to the department, such as an

21  irrevocable letter of credit or a deposit in a trust account

22  or financial institution, payable to the Florida Drug, Device,

23  and Cosmetic Trust Fund. The purpose of the bond is to secure

24  payment of any administrative penalties imposed by the

25  department and any fees and costs incurred by the department

26  regarding that permit which are authorized under state law and

27  which the permittee fails to pay 30 days after the fine or

28  costs become final. The department may make a claim against

29  such bond or security until 1 year after the permittee's

30  license ceases to be valid or until 60 days after any

31  administrative or legal proceeding authorized in ss.

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  499.001-499.081 which involves the permittee is concluded,

 2  including any appeal, whichever occurs later.

 3         5.  A  limited veterinary prescription drug wholesaler

 4  must maintain at all times a license or permit to engage in

 5  the wholesale distribution of prescription drugs in compliance

 6  with laws of the state in which it is a resident.

 7         6.  A limited veterinary prescription drug wholesaler

 8  must comply with the requirements for wholesale distributors

 9  under s. 499.0121, except that a limited veterinary

10  prescription drug wholesaler is not required to provide a

11  pedigree paper as required by s. 499.0121(6)(f) upon the

12  wholesale distribution of a prescription drug to a

13  veterinarian.

14         7.  A limited veterinary prescription drug wholesaler

15  may not return to inventory for subsequent wholesale

16  distribution any prescription drug subject to, defined by, or

17  described by s. 503(b) of the Federal Food, Drug, and Cosmetic

18  Act which has been returned by a veterinarian.

19         8.  An out-of-state prescription drug wholesaler's

20  permit is not required for an intracompany sale or transfer of

21  a prescription drug from an out-of-state establishment that is

22  duly licensed as a limited veterinary prescription drug

23  wholesaler in its state of residence to a licensed

24  prescription drug wholesaler in this state if both wholesalers

25  conduct wholesale distributions of prescription drugs under

26  the same business name. The recordkeeping requirements of s.

27  499.0121(6) must be followed for this transaction.

28         Section 4.  Paragraph (d) of subsection (1) of section

29  499.0122, Florida Statutes, is amended to read:

30  

31  

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1         499.0122  Medical oxygen and veterinary legend drug

 2  retail establishments; definitions, permits, general

 3  requirements.--

 4         (1)  As used in this section, the term:

 5         (d)  "Veterinary legend drug retail establishment"

 6  means a person permitted to sell veterinary legend drugs to

 7  the public or to veterinarians, but does not include a

 8  pharmacy licensed under chapter 465.

 9         1.  The sale to the public must be based on a valid

10  written order from a veterinarian licensed in this state who

11  has a valid client-veterinarian relationship with the

12  purchaser's animal.

13         2.  Veterinary legend drugs may not be sold in excess

14  of the amount clearly indicated on the order or beyond the

15  date indicated on the order.

16         3.  An order may not be valid for more than 1 year.

17         4.  A veterinary legend drug retail establishment may

18  not purchase, sell, trade, or possess human prescription drugs

19  or any controlled substance as defined in chapter 893.

20         5.  A veterinary legend drug retail establishment must

21  sell a veterinary legend drug in the original, sealed

22  manufacturer's container with all labeling intact and legible.

23  The department may adopt by rule additional labeling

24  requirements for the sale of a veterinary legend drug.

25         Section 5.  Paragraph (h) is added to subsection (2) of

26  section 499.041, Florida Statutes, to read:

27         499.041  Schedule of fees for drug, device, and

28  cosmetic applications and permits, product registrations, and

29  free-sale certificates.--

30         (2)  The department shall assess an applicant that is

31  required to have a wholesaling permit an annual fee within the

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  ranges established in this section for the specific type of

 2  wholesaling.

 3         (h)  The fee for a limited veterinary prescription drug

 4  wholesaler's permit may not be less than $300 or more than

 5  $500 annually.

 6         Section 6.  Subsections (1) and (3) of section 499.065,

 7  Florida Statutes, are amended to read:

 8         499.065  Imminent danger.--

 9         (1)  Notwithstanding s. 499.051, the department shall

10  inspect each prescription drug wholesale establishment,

11  prescription drug repackager establishment, veterinary

12  prescription drug wholesale establishment, limited veterinary

13  prescription drug wholesaler establishment, and retail

14  pharmacy drug wholesaler establishment that is required to be

15  permitted under this chapter as often as necessary to ensure

16  compliance with applicable laws and rules. The department

17  shall have the right of entry and access to these facilities

18  at any reasonable time.

19         (3)  The department may determine that a prescription

20  drug wholesale establishment, prescription drug repackager

21  establishment, veterinary prescription drug wholesale

22  establishment, limited veterinary prescription drug wholesaler

23  establishment, or retail pharmacy drug wholesaler

24  establishment that is required to be permitted under this

25  chapter is an imminent danger to the public health and shall

26  require its immediate closure if the establishment fails to

27  comply with applicable laws and rules and, because of the

28  failure, presents an imminent threat to the public's health,

29  safety, or welfare. Any establishment so deemed and closed

30  shall remain closed until allowed by the department or by

31  judicial order to reopen.

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    Florida Senate - 2005                           CS for SB 1654
    580-1994-05




 1  

 2  For purposes of this section, a refusal to allow entry to the

 3  department for inspection at reasonable times, or a failure or

 4  refusal to provide the department with required documentation

 5  for purposes of inspection, constitutes an imminent danger to

 6  the public health.

 7         Section 7.  This act shall take effect July 1, 2005.

 8  

 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                         Senate Bill 1654

11                                 

12  The committee substitute (CS) amends s. 499.006, F.S., to
    define prescription drugs returned by a veterinarian to a
13  limited veterinary prescription drug wholesaler as an
    adulterated drug.
14  
    The CS amends s. 4990.01, F.S., to create the limited
15  veterinary prescription drug wholesaler permit.  The CS
    deletes the permit classification for a distributor
16  distributing both veterinary legend drugs and certain human
    drugs permitted by the department.
17  
    The CS does not amend s. 499.0121(6)(f), F.S., to limit the
18  pedigree paper requirement to prescription drugs intended for
    sale to a human recipient, and to exempt approved human drugs
19  sold directly to veterinarians from the pedigree paper
    requirement.
20  
    The CS amends s. 499.012, F.S., to establish the limited
21  veterinary prescription drug wholesaler permit, and provide
    several permit requirements and conditions under the permit,
22  including a bond requirement, and permissible transactions.

23  The CS amends s. 499.0122(1)(d), F.S., to amend the definition
    of the term "veterinary legend drug retail establishment."
24  
    The CS amends s. 499.041, F.S., to establish the minimum and
25  maximum fee for a limited veterinary prescription drug
    wholesaler's permit.
26  
    The CS amends s. 499.065, F.S., to require department
27  inspection of each limited veterinary prescription drug
    wholesaler.  It also permits the department to order the
28  immediate closure of a limited veterinary prescription drug
    wholesaler to protect the public health, safety, or welfare.
29  

30  

31  

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