Senate Bill sb1540c1
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Florida Senate - 2006 CS for SB 1540
By the Committee on Regulated Industries; and Senator Baker
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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 prescription drug veterinary wholesaler;
8 amending s. 499.01, F.S.; requiring a limited
9 prescription drug veterinary wholesaler to
10 obtain a permit for operation from the
11 Department of Health; providing that a permit
12 for a limited prescription drug veterinary
13 wholesaler may not be issued to the address of
14 certain health care entities; amending s.
15 499.012, F.S.; revising permit requirements for
16 a veterinary prescription drug wholesaler that
17 distributes prescription drugs; establishing a
18 permit for a limited prescription drug
19 veterinary wholesaler; providing requirements;
20 providing an exception; amending s. 499.0122,
21 F.S.; redefining the term "veterinary legend
22 drug retail establishment"; amending s.
23 499.041, F.S.; requiring the department to
24 assess an annual fee within a certain monetary
25 range for a limited prescription drug
26 veterinary wholesaler permit; amending s.
27 499.065, F.S.; requiring the department to
28 inspect each limited prescription drug
29 veterinary wholesaler establishment;
30 authorizing the department to determine that a
31 limited prescription drug veterinary wholesaler
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1 establishment is an imminent danger to the
2 public; providing an effective date.
3
4 Be It Enacted by the Legislature of the State of Florida:
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6 Section 1. Section 499.006, Florida Statutes, is
7 amended to read:
8 499.006 Adulterated drug or device.--A drug or device
9 is adulterated:
10 (1) If it consists in whole or in part of any filthy,
11 putrid, or decomposed substance;
12 (2) If it has been produced, prepared, packed, or held
13 under conditions whereby it could have been contaminated with
14 filth or rendered injurious to health;
15 (3) If it is a drug and the methods used in, or the
16 facilities or controls used for, its manufacture, processing,
17 packing, or holding do not conform to, or are not operated or
18 administered in conformity with, current good manufacturing
19 practices to assure that the drug meets the requirements of
20 ss. 499.001-499.081 and that the drug has the identity and
21 strength, and meets the standard of quality and purity, which
22 it purports or is represented to possess;
23 (4) If it is a drug and its container is composed, in
24 whole or in part, of any poisonous or deleterious substance
25 which could render the contents injurious to health;
26 (5) If it is a drug and it bears or contains, for the
27 purpose of coloring only, a color additive that is unsafe
28 within the meaning of the federal act; or, if it is a color
29 additive, the intended use of which in or on drugs is for the
30 purpose of coloring only, and it is unsafe within the meaning
31 of the federal act;
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1 (6) If it purports to be, or is represented as, a drug
2 the name of which is recognized in the official compendium,
3 and its strength differs from, or its quality or purity falls
4 below, the standard set forth in such compendium. The
5 determination as to strength, quality, or purity must be made
6 in accordance with the tests or methods of assay set forth in
7 such compendium, or, when such tests or methods of assay are
8 absent or inadequate, in accordance with those tests or
9 methods of assay prescribed under authority of the federal
10 act. A drug defined in the official compendium is not
11 adulterated under this subsection merely because it differs
12 from the standard of strength, quality, or purity set forth
13 for that drug in such compendium if its difference in
14 strength, quality, or purity from such standard is plainly
15 stated on its label;
16 (7) If it is not subject to subsection (6) and its
17 strength differs from, or its purity or quality falls below
18 the standard of, that which it purports or is represented to
19 possess;
20 (8) If it is a drug:
21 (a) With which any substance has been mixed or packed
22 so as to reduce the quality or strength of the drug; or
23 (b) For which any substance has been substituted
24 wholly or in part;
25 (9) If it is a drug or device for which the expiration
26 date has passed; or
27 (10) If it is a legend drug for which the required
28 pedigree paper is nonexistent, fraudulent, or incomplete under
29 the requirements of ss. 499.001-499.081 or applicable rules,
30 or that has been purchased, held, sold, or distributed at any
31
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Florida Senate - 2006 CS for SB 1540
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1 time by a person not authorized under federal or state law to
2 do so; or.
3 (11) If it is a prescription drug subject to, defined
4 by, or described by s. 503(b) of the Federal Food, Drug, and
5 Cosmetic Act which has been returned by a veterinarian to a
6 limited prescription drug veterinary wholesaler.
7 Section 2. Subsection (1) and paragraph (d) of
8 subsection (2) of section 499.01, Florida Statutes, are
9 amended to read:
10 499.01 Permits; applications; renewal; general
11 requirements.--
12 (1) Prior to operating, a permit is required for each
13 person and establishment that intends to operate as:
14 (a) A prescription drug manufacturer;
15 (b) A prescription drug repackager;
16 (c) An over-the-counter drug manufacturer;
17 (d) A compressed medical gas manufacturer;
18 (e) A device manufacturer;
19 (f) A cosmetic manufacturer;
20 (g) A prescription drug wholesaler;
21 (h) A veterinary prescription drug wholesaler;
22 (i) A compressed medical gas wholesaler;
23 (j) An out-of-state prescription drug wholesaler;
24 (k) A nonresident prescription drug manufacturer;
25 (l) A freight forwarder;
26 (m) A retail pharmacy drug wholesaler;
27 (n) A veterinary legend drug retail establishment;
28 (o) A medical oxygen retail establishment;
29 (p) A complimentary drug distributor; or
30 (q) A restricted prescription drug distributor; or.
31 (r) A limited prescription drug veterinary wholesaler.
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1 (2)
2 (d) A permit for a prescription drug manufacturer,
3 prescription drug repackager, prescription drug wholesaler,
4 limited prescription drug veterinary wholesaler, or retail
5 pharmacy wholesaler may not be issued to the address of a
6 health care entity or to a pharmacy licensed under chapter
7 465, except as provided in this paragraph. The department may
8 issue a prescription drug manufacturer permit to an applicant
9 at the same address as a licensed nuclear pharmacy, which is a
10 health care entity, for the purpose of manufacturing
11 prescription drugs used in positron emission tomography or
12 other radiopharmaceuticals, as listed in a rule adopted by the
13 department pursuant to this paragraph. The purpose of this
14 exemption is to assure availability of state-of-the-art
15 pharmaceuticals that would pose a significant danger to the
16 public health if manufactured at a separate establishment
17 address from the nuclear pharmacy from which the prescription
18 drugs are dispensed. The department may also issue a retail
19 pharmacy wholesaler permit to the address of a community
20 pharmacy licensed under chapter 465 which does not meet the
21 definition of a closed pharmacy in s. 499.003.
22 Section 3. Paragraph (g) of subsection (2) of section
23 499.012, Florida Statutes, is amended, and paragraph (h) is
24 added to that subsection, to read:
25 499.012 Wholesale distribution; definitions; permits;
26 applications; general requirements.--
27 (2) The following types of wholesaler permits are
28 established:
29 (g) A veterinary prescription drug wholesaler
30 permit.--A veterinary prescription drug wholesaler permit is
31 required for any person that engages in the distribution of
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1 veterinary prescription drugs in or into this state. A
2 veterinary prescription drug wholesaler that also distributes
3 prescription drugs subject to, defined by, or described by s.
4 503(b) of the Federal Food, Drug, and Cosmetic Act which it
5 did not manufacture must obtain a permit as a prescription
6 drug wholesaler, an or out-of-state prescription drug
7 wholesaler, or a limited prescription drug veterinary
8 wholesaler in lieu of the veterinary prescription drug
9 wholesaler permit. A veterinary prescription drug wholesaler
10 must comply with the requirements for wholesale distributors
11 under s. 499.0121, except those set forth in s.
12 499.0121(6)(d), (e), or (f).
13 (h) Limited prescription drug veterinary wholesaler
14 permit.--Unless engaging in the activities of and permitted as
15 a prescription drug manufacturer, nonresident prescription
16 drug manufacturer, prescription drug wholesaler, or
17 out-of-state prescription drug wholesaler, a limited
18 prescription drug veterinary wholesaler permit is required for
19 any person that engages in the distribution in or into this
20 state of veterinary prescription drugs and prescription drugs
21 subject to, defined by, or described by s. 503(b) of the
22 Federal Food, Drug, and Cosmetic Act under the following
23 conditions:
24 1. The person is engaged in the business of
25 wholesaling prescription and veterinary legend drugs to
26 persons:
27 a. Licensed as veterinarians practicing on a full-time
28 basis;
29 b. Regularly and lawfully engaged in instruction in
30 veterinary medicine;
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1 c. Regularly and lawfully engaged in law enforcement
2 activities;
3 d. For use in research not involving clinical use; or
4 e. For use in chemical analysis or physical testing or
5 for purposes of instruction in law enforcement activities,
6 research, or testing.
7 2. No more than 30 percent of total annual
8 prescription drug sales may be prescription drugs approved for
9 human use which are subject to, defined by, or described by s.
10 503(b) of the 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 prescription drug veterinary 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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1 499.001-499.081 which involves the permittee is concluded,
2 including any appeal, whichever occurs later.
3 5. A limited prescription drug veterinary 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 prescription drug veterinary wholesaler
8 must comply with the requirements for wholesale distributors
9 under s. 499.0121, except that a limited prescription drug
10 veterinary wholesaler is not required to provide a pedigree
11 paper as required by s. 499.0121(6)(f) upon the wholesale
12 distribution of a prescription drug to a veterinarian.
13 7. A limited prescription drug veterinary wholesaler
14 may not return to inventory for subsequent wholesale
15 distribution any prescription drug subject to, defined by, or
16 described by s. 503(b) of the Federal Food, Drug, and Cosmetic
17 Act which has been returned by a veterinarian.
18 8. An out-of-state prescription drug wholesaler's
19 permit or a limited prescription drug veterinary wholesaler
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 to engage in the wholesale distribution of
23 prescription drugs in its state of residence to a licensed
24 limited prescription drug veterinary wholesaler in this state
25 if both wholesalers conduct wholesale distributions of
26 prescription drugs under the same business name. The
27 recordkeeping requirements of s. 499.0121(6) must be followed
28 for this transaction.
29 Section 4. Paragraph (d) of subsection (1) of section
30 499.0122, Florida Statutes, is amended to read:
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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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1 ranges established in this section for the specific type of
2 wholesaling.
3 (h) The fee for a limited prescription drug veterinary
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
13 prescription drug veterinary wholesaler establishment, and
14 retail pharmacy drug wholesaler establishment that is required
15 to be permitted under this chapter as often as necessary to
16 ensure compliance with applicable laws and rules. The
17 department shall have the right of entry and access to these
18 facilities 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 prescription drug veterinary 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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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, 2006.
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9 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
10 Senate Bill 1540
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12 The CS amends s. 499.012, F.S., to define additional conduct
of what constitutes being engaged in the business of
13 wholesaling prescription and veterinary legend drugs. It also
clarifies that the 30 percent limit for drug sales for human
14 use is on the basis of total annual revenue.
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