Amendment
Bill No. 0685
Amendment No. 331375
CHAMBER ACTION
Senate House
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1Representative(s) Homan offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5     Section 1.  Subsections (28) and (31) of section 499.003,
6Florida Statutes, are amended to read:
7     499.003  Definitions of terms used in ss. 499.001-
8499.081.--As used in ss. 499.001-499.081, the term:
9     (28)  "Manufacturer" means a person who prepares, derives,
10manufactures, or produces a drug, device, or cosmetic. The term
11excludes pharmacies that are operating in compliance with
12pharmacy practice standards as defined in chapter 465 and rules
13adopted under that chapter. This term also means the holder of
14an approved new drug application, abbreviated new drug
15application, or new animal drug application; a private label
16distributor if the private label distributor's prescription
17drugs are originally manufactured and labeled for the
18distributor and have not been repackaged; or the distribution
19point establishment for the manufacturer, contract manufacturer,
20or private label distributor, whether the establishment is a
21member of the manufacturer's affiliated group or is a contract
22distribution site, only to the extent that the contract
23distribution distributes the drugs of the manufacturer.
24     (31)  "Pedigree paper" means:
25     (a)  A document required pursuant to s. 499.0121(6)(d) or
26(e); or
27     (b)1.  Effective July 1, 2006, a document or electronic
28form approved by the Department of Health and containing
29information that records each distribution of any given legend
30drug, from sale by a pharmaceutical manufacturer, through
31acquisition and sale by any wholesaler or repackager, until
32final sale to a pharmacy or other person administering or
33dispensing the drug; or.
34     2.  Effective July 1, 2006, a statement, under oath, in
35written or electronic form, given when a wholesale distribution
36company purchases and receives the specific unit of the
37prescription drug directly from the manufacturer of the
38prescription drug, and distributes the prescription drug
39directly to a chain pharmacy warehouse or a person authorized by
40law to purchase prescription drugs, for the purpose of
41administering or dispensing the drug pursuant to s. 465.003.
42     a.  For purposes of this subparagraph, the term "wholesale
43distribution company" means a wholesale distributor, as defined
44in s. 499.012(1)(b) that performs intracompany transfers of
45specific units of prescription drugs to another wholesale
46distributor that is a member of its affiliated group as
47described in s. 499.012(1)(d)2.b.
48     b.  For purposes of this subparagraph, the term
49"intracompany transfers" may not include transfers of
50prescription drugs if those specific units of the prescription
51drugs were not purchased directly from the manufacturer.
52     c.  For purposes of this subparagraph, "chain pharmacy
53warehouse" means a wholesale distributor permitted pursuant to
54s. 499.012 that maintains a physical location for prescription
55drugs that functions solely as a central warehouse to perform
56intra-company transfers of such drugs to a member of its
57affiliated group, as described in s. 499.0121(6)(h)1.
58     (c)  The information required to be included on the form
59approved by the department pursuant to subparagraph (b)1. a
60legend drug's pedigree paper must at least detail the amount of
61the legend drug; its dosage form and strength; its lot numbers;
62the name and address of each owner of the legend drug and his or
63her signature; its shipping information, including the name and
64address of each person certifying delivery or receipt of the
65legend drug; an invoice number, a shipping document number, or
66another number uniquely identifying the transaction; and a
67certification that the recipient wholesaler has authenticated
68the pedigree papers. If the manufacturer or repackager has
69uniquely serialized the individual legend drug unit, that
70identifier must also be included on the form approved by the
71department pursuant to subparagraph (b)1. pedigree. It must also
72include the name, address, telephone number and, if available,
73e-mail contact information of each wholesaler involved in the
74chain of the legend drug's custody. The department shall adopt
75rules and a form relating to the requirements of this paragraph
76no later than 90 days after the effective date of this act.
77     (d)1.  The information required to be included pursuant to
78subparagraph (b)2. must include:
79a.  A written statement that states: "This wholesale
80distribution company purchased the specific unit of the
81prescription drug directly from the manufacturer."
82b.  The manufacturer's National Drug Code identifier that
83provides the name of the manufacturer and the name and address
84of the wholesaler and the purchaser of the prescription drug.
85c.  The name of the prescription drug as it was provided by
86the manufacturer.
87d.  The quantity, dosage form, and strength of the
88prescription drug.
89     2.  The wholesale distribution company shall also maintain
90and make available to the department, upon request, the name and
91shipping address of the manufacturer from whom the prescription
92drugs were purchased; the dates of shipment and invoice numbers
93from the manufacturer to the wholesale distribution company for
94such prescription drugs; lot numbers of such prescription drugs
95received by the wholesale distribution company; and any records
96of any intracompany transfers within the wholesale distribution
97company of such prescription drugs.
98     (e)  The department may adopt rules and forms relating to
99the requirements of this subsection.
100     Section 2.  Subsection (29) of section 499.005, Florida
101Statutes, is amended to read:
102     499.005  Prohibited acts.--It is unlawful for a person to
103perform or cause the performance of any of the following acts in
104this state:
105     (29)  The receipt of a prescription drug pursuant to a
106wholesale distribution without either first receiving a pedigree
107paper that was attested to as accurate and complete by the
108wholesale distributor or complying with the provisions of s.
109499.0121(6)(f)6.
110     Section 3.  Section 499.006, Florida Statutes, is amended
111to read:
112     499.006  Adulterated drug or device.--A drug or device is
113adulterated:
114     (1)  If it consists in whole or in part of any filthy,
115putrid, or decomposed substance;
116     (2)  If it has been produced, prepared, packed, or held
117under conditions whereby it could have been contaminated with
118filth or rendered injurious to health;
119     (3)  If it is a drug and the methods used in, or the
120facilities or controls used for, its manufacture, processing,
121packing, or holding do not conform to, or are not operated or
122administered in conformity with, current good manufacturing
123practices to assure that the drug meets the requirements of ss.
124499.001-499.081 and that the drug has the identity and strength,
125and meets the standard of quality and purity, which it purports
126or is represented to possess;
127     (4)  If it is a drug and its container is composed, in
128whole or in part, of any poisonous or deleterious substance
129which could render the contents injurious to health;
130     (5)  If it is a drug and it bears or contains, for the
131purpose of coloring only, a color additive that is unsafe within
132the meaning of the federal act; or, if it is a color additive,
133the intended use of which in or on drugs is for the purpose of
134coloring only, and it is unsafe within the meaning of the
135federal act;
136     (6)  If it purports to be, or is represented as, a drug the
137name of which is recognized in the official compendium, and its
138strength differs from, or its quality or purity falls below, the
139standard set forth in such compendium. The determination as to
140strength, quality, or purity must be made in accordance with the
141tests or methods of assay set forth in such compendium, or, when
142such tests or methods of assay are absent or inadequate, in
143accordance with those tests or methods of assay prescribed under
144authority of the federal act. A drug defined in the official
145compendium is not adulterated under this subsection merely
146because it differs from the standard of strength, quality, or
147purity set forth for that drug in such compendium if its
148difference in strength, quality, or purity from such standard is
149plainly stated on its label;
150     (7)  If it is not subject to subsection (6) and its
151strength differs from, or its purity or quality falls below the
152standard of, that which it purports or is represented to
153possess;
154     (8)  If it is a drug:
155     (a)  With which any substance has been mixed or packed so
156as to reduce the quality or strength of the drug; or
157     (b)  For which any substance has been substituted wholly or
158in part;
159     (9)  If it is a drug or device for which the expiration
160date has passed; or
161     (10)  If it is a legend drug for which the required
162pedigree paper is nonexistent, fraudulent, or incomplete under
163the requirements of ss. 499.001-499.081 or applicable rules, or
164that has been purchased, held, sold, or distributed at any time
165by a person not authorized under federal or state law to do so;
166or.
167     (11)  If it is a prescription drug subject to, defined by,
168or described by s. 503(b) of the Federal Food, Drug, and
169Cosmetic Act which has been returned by a veterinarian to a
170limited prescription drug veterinary wholesaler.
171     Section 4.  Subsection (1) and paragraph (d) of subsection
172(2) of section 499.01, Florida Statutes, are amended to read:
173     499.01  Permits; applications; renewal; general
174requirements.--
175     (1)  Prior to operating, a permit is required for each
176person and establishment that intends to operate as:
177     (a)  A prescription drug manufacturer;
178     (b)  A prescription drug repackager;
179     (c)  An over-the-counter drug manufacturer;
180     (d)  A compressed medical gas manufacturer;
181     (e)  A device manufacturer;
182     (f)  A cosmetic manufacturer;
183     (g)  A prescription drug wholesaler;
184     (h)  A veterinary prescription drug wholesaler;
185     (i)  A compressed medical gas wholesaler;
186     (j)  An out-of-state prescription drug wholesaler;
187     (k)  A nonresident prescription drug manufacturer;
188     (l)  A freight forwarder;
189     (m)  A retail pharmacy drug wholesaler;
190     (n)  A veterinary legend drug retail establishment;
191     (o)  A medical oxygen retail establishment;
192     (p)  A complimentary drug distributor; or
193     (q)  A restricted prescription drug distributor; or.
194     (r)  A limited prescription drug veterinary wholesaler.
195     (2)
196     (d)  A permit for a prescription drug manufacturer,
197prescription drug repackager, prescription drug wholesaler,
198limited prescription drug veterinary wholesaler, or retail
199pharmacy wholesaler may not be issued to the address of a health
200care entity or to a pharmacy licensed under chapter 465, except
201as provided in this paragraph. The department may issue a
202prescription drug manufacturer permit to an applicant at the
203same address as a licensed nuclear pharmacy, which is a health
204care entity, for the purpose of manufacturing prescription drugs
205used in positron emission tomography or other
206radiopharmaceuticals, as listed in a rule adopted by the
207department pursuant to this paragraph. The purpose of this
208exemption is to assure availability of state-of-the-art
209pharmaceuticals that would pose a significant danger to the
210public health if manufactured at a separate establishment
211address from the nuclear pharmacy from which the prescription
212drugs are dispensed. The department may also issue a retail
213pharmacy wholesaler permit to the address of a community
214pharmacy licensed under chapter 465 which does not meet the
215definition of a closed pharmacy in s. 499.003.
216     Section 5.  Paragraph (g) of subsection (2) of section
217499.012, Florida Statutes, is amended, and paragraph (h) is
218added to that subsection, to read:
219     499.012  Wholesale distribution; definitions; permits;
220applications; general requirements.--
221     (2)  The following types of wholesaler permits are
222established:
223     (g)  A veterinary prescription drug wholesaler permit.--A
224veterinary prescription drug wholesaler permit is required for
225any person that engages in the distribution of veterinary
226prescription drugs in or into this state. A veterinary
227prescription drug wholesaler that also distributes prescription
228drugs subject to, defined by, or described by s. 503(b) of the
229Federal Food, Drug, and Cosmetic Act which it did not
230manufacture must obtain a permit as a prescription drug
231wholesaler, an or out-of-state prescription drug wholesaler, or
232a limited prescription drug veterinary wholesaler in lieu of the
233veterinary prescription drug wholesaler permit. A veterinary
234prescription drug wholesaler must comply with the requirements
235for wholesale distributors under s. 499.0121, except those set
236forth in s. 499.0121(6)(d), (e), or (f).
237     (h)  Limited prescription drug veterinary wholesaler
238permit.--Unless engaging in the activities of and permitted as a
239prescription drug manufacturer, nonresident prescription drug
240manufacturer, prescription drug wholesaler, or out-of-state
241prescription drug wholesaler, a limited prescription drug
242veterinary wholesaler permit is required for any person that
243engages in the distribution in or into this state of veterinary
244prescription drugs and prescription drugs subject to, defined
245by, or described by s. 503(b) of the Federal Food, Drug, and
246Cosmetic Act to veterinarians under the following conditions:
247     1.  The person is engaged in the business of wholesaling
248prescription and veterinary legend drugs to persons:
249     a.  Licensed as veterinarians practicing on a full-time
250basis;
251     b.  Regularly and lawfully engaged in instruction in
252veterinary medicine;
253     c.  Regularly and lawfully engaged in law enforcement;
254     d.  For use in research, not involving clinical use; or
255     e.  For use in chemical analysis or physical testing, for
256the purposes of instruction in law enforcement, research, or
257testing.
258     2.  No more than 30 percent of prescription drug sales may
259be prescription drugs approved for human use which are subject
260to, defined by, or described by s. 503(b) of the Federal Food,
261Drug, and Cosmetic Act.
262     3.  The person is not permitted, licensed, or otherwise
263authorized in any state to wholesale prescription drugs subject
264to, defined by, or described by s. 503(b) of the Federal Food,
265Drug, and Cosmetic Act to any person who is authorized to sell,
266distribute, purchase, trade, or use these drugs on or for
267humans.
268     4.  A limited prescription drug veterinary wholesaler that
269applies to the department for a new permit or the renewal of a
270permit must submit a bond of $20,000, or other equivalent means
271of security acceptable to the department, such as an irrevocable
272letter of credit or a deposit in a trust account or financial
273institution, payable to the Florida Drug, Device, and Cosmetic
274Trust Fund. The purpose of the bond is to secure payment of any
275administrative penalties imposed by the department and any fees
276and costs incurred by the department regarding that permit which
277are authorized under state law and which the permittee fails to
278pay 30 days after the fine or costs become final. The department
279may make a claim against such bond or security until 1 year
280after the permittee's license ceases to be valid or until 60
281days after any administrative or legal proceeding authorized in
282ss. 499.001-499.081 which involves the permittee is concluded,
283including any appeal, whichever occurs later.
284     5.  A limited prescription drug veterinary wholesaler must
285maintain at all times a license or permit to engage in the
286wholesale distribution of prescription drugs in compliance with
287laws of the state in which it is a resident.
288     6.  A limited prescription drug veterinary wholesaler must
289comply with the requirements for wholesale distributors under s.
290499.0121, except that a limited prescription drug veterinary
291wholesaler is not required to provide a pedigree paper as
292required by s. 499.0121(6)(f) upon the wholesale distribution of
293a prescription drug to a veterinarian.
294     7.  A limited prescription drug veterinary wholesaler may
295not return to inventory for subsequent wholesale distribution
296any prescription drug subject to, defined by, or described by s.
297503(b) of the Federal Food, Drug, and Cosmetic Act which has
298been returned by a veterinarian.
299     8.  An out-of-state prescription drug wholesaler's permit
300or a limited prescription drug veterinary wholesaler permit is
301not required for an intracompany sale or transfer of a
302prescription drug from an out-of-state establishment that is
303duly licensed to engage in the wholesale distribution of
304prescription drugs in its state of residence to a licensed
305limited prescription drug veterinary wholesaler in this state if
306both wholesalers conduct wholesale distributions of prescription
307drugs under the same business name. The recordkeeping
308requirements of s. 499.0121(6) must be followed for this
309transaction.
310     Section 6.  Paragraph (f) of subsection (6) of section
311499.0121, Florida Statutes, is amended to read:
312     499.0121  Storage and handling of prescription drugs;
313recordkeeping.--The department shall adopt rules to implement
314this section as necessary to protect the public health, safety,
315and welfare. Such rules shall include, but not be limited to,
316requirements for the storage and handling of prescription drugs
317and for the establishment and maintenance of prescription drug
318distribution records.
319     (6)  RECORDKEEPING.--The department shall adopt rules that
320require keeping such records of prescription drugs as are
321necessary for the protection of the public health.
322     (f)1.  Effective July 1, 2006, each person who is engaged
323in the wholesale distribution of a prescription drug and who is
324not the manufacturer of that drug must, before each wholesale
325distribution of such drug, provide to the person who receives
326the drug a pedigree paper as defined in s. 499.003(31).
327     2.  A repackager must comply with this paragraph.
328     3.  The pedigree paper requirements in this paragraph do
329not apply to compressed medical gases or veterinary legend
330drugs.
331     4.  Each wholesale distributor of prescription drugs must
332maintain separate and distinct from other required records all
333statements that are required under subparagraph 1.
334     5.  In order to verify compliance with subparagraph (d)1.,
335each manufacturer of a prescription drug sold in this state must
336make available upon request distribution documentation related
337to its sales of prescription drugs, regardless of whether the
338prescription drug was sold directly by the manufacturer to a
339person in Florida.
340     6.  The provisions of subparagraph (f)1. are satisfied when
341a wholesale distributor takes title to, but not possession of, a
342prescription drug, and the prescription drug's manufacturer
343ships the prescription drug directly to a person authorized by
344law to purchase prescription drugs for the purpose of
345administering or dispensing the drug pursuant to s. 465.003 or a
346member of an affiliated group, as described in subparagraph
347(h)1.
348     a.  The wholesale distributor must deliver to the recipient
349of the prescription drug, within 14 days of the shipment
350notification from the manufacturer, an invoice and that the
351following sworn statement: "This wholesale distribution company
352purchased the specific unit of the prescription drug, listed on
353the invoice, directly from the manufacturer and has been
354notified by the manufacturer that the specific unit of
355prescription drug was shipped by the manufacturer directly to a
356person authorized by law to administer or dispense the legend
357drug pursuant to s. 465.003, Florida Statutes, or a member of an
358affiliated group, as described in s. 499.0121(6)(h)1., Florida
359Statutes." The invoice must contain a clear cross-reference to
360the shipping document sent by the manufacturer to the recipient
361of the prescription drug.
362     b.  The recipient of the prescription drug must acquire,
363within 14 days of receipt of the prescription drug, a shipping
364document from the manufacturer that contains, at a minimum:
365     (I)  The name and address of the manufacturer, including
366the point of origin of the shipment, the wholesaler, and such
367purchaser.
368     (II)  The name of the prescription drug as it appears on
369the label.
370     (III)  The quantity, dosage form, and strength of the
371prescription drug.
372     (IV)  The date of the shipment from the manufacturer.
373     c.  The wholesale distributor must also maintain and make
374available to the department, upon request, the lot number of
375such drug if the applicable lot numbers are provided to the
376wholesale distributor by the manufacturer and are not contained
377in the shipping document received by such recipient.
378     7.  Failure of the purchaser to acquire, or the wholesale
379distributor or manufacturer to deliver, the documentation
380required under subparagraph (f)6. shall constitute failure to
381acquire or deliver a pedigree paper under s. 499.0051. Forgery
382by the purchaser, wholesale distributor, or manufacturer of the
383documentation required to be acquired or delivered under
384subparagraph (f)6. shall constitute forgery of a pedigree paper
385under s. 499.0051.
386     8.  The department may by rule define alternatives to
387compliance with subparagraph (f)1. for a prescription drug in
388the inventory of a permitted prescription drug wholesaler as of
389June 30, 2006, and the return of a prescription drug purchased
390prior to July 1, 2006. The department may specify time limits
391for such alternatives.
392     Section 7.  Paragraph (d) of subsection (1) of section
393499.0122, Florida Statutes, is amended to read:
394     499.0122  Medical oxygen and veterinary legend drug retail
395establishments; definitions, permits, general requirements.--
396     (1)  As used in this section, the term:
397     (d)  "Veterinary legend drug retail establishment" means a
398person permitted to sell veterinary legend drugs to the public
399or to veterinarians, but does not include a pharmacy licensed
400under chapter 465.
401     1.  The sale to the public must be based on a valid written
402order from a veterinarian licensed in this state who has a valid
403client-veterinarian relationship with the purchaser's animal.
404     2.  Veterinary legend drugs may not be sold in excess of
405the amount clearly indicated on the order or beyond the date
406indicated on the order.
407     3.  An order may not be valid for more than 1 year.
408     4.  A veterinary legend drug retail establishment may not
409purchase, sell, trade, or possess human prescription drugs or
410any controlled substance as defined in chapter 893.
411     5.  A veterinary legend drug retail establishment must sell
412a veterinary legend drug in the original, sealed manufacturer's
413container with all labeling intact and legible. The department
414may adopt by rule additional labeling requirements for the sale
415of a veterinary legend drug.
416     Section 8.  Paragraph (h) is added to subsection (2) of
417section 499.041, Florida Statutes, to read:
418     499.041  Schedule of fees for drug, device, and cosmetic
419applications and permits, product registrations, and free-sale
420certificates.--
421     (2)  The department shall assess an applicant that is
422required to have a wholesaling permit an annual fee within the
423ranges established in this section for the specific type of
424wholesaling.
425     (h)  The fee for a limited prescription drug veterinary
426wholesaler's permit may not be less than $300 or more than $500
427annually.
428     Section 9.  Subsections (1) and (3) of section 499.065,
429Florida Statutes, are amended to read:
430     499.065  Imminent danger.--
431     (1)  Notwithstanding s. 499.051, the department shall
432inspect each prescription drug wholesale establishment,
433prescription drug repackager establishment, veterinary
434prescription drug wholesale establishment, limited prescription
435drug veterinary wholesaler establishment, and retail pharmacy
436drug wholesaler establishment that is required to be permitted
437under this chapter as often as necessary to ensure compliance
438with applicable laws and rules. The department shall have the
439right of entry and access to these facilities at any reasonable
440time.
441     (3)  The department may determine that a prescription drug
442wholesale establishment, prescription drug repackager
443establishment, veterinary prescription drug wholesale
444establishment, limited prescription drug veterinary wholesaler
445establishment, or retail pharmacy drug wholesaler establishment
446that is required to be permitted under this chapter is an
447imminent danger to the public health and shall require its
448immediate closure if the establishment fails to comply with
449applicable laws and rules and, because of the failure, presents
450an imminent threat to the public's health, safety, or welfare.
451Any establishment so deemed and closed shall remain closed until
452allowed by the department or by judicial order to reopen.
453
454For purposes of this section, a refusal to allow entry to the
455department for inspection at reasonable times, or a failure or
456refusal to provide the department with required documentation
457for purposes of inspection, constitutes an imminent danger to
458the public health.
459     Section 10.  This act shall take effect July 1, 2006.
460
461
462======= T I T L E  A M E N D M E N T ==========
463     Remove the entire title and insert:
464
A bill to be entitled
465An act relating to drug distribution; amending s. 499.003,
466F.S.; amending definitions; requiring the Department of
467Health to approve a document or electronic form relating
468to pedigree papers; providing requirements for pedigree
469papers that record certain distributions of legend drugs;
470amending s. 499.005, F.S.; revising a prohibition relating
471to pedigree papers; amending s. 499.006, F.S.; providing
472that a drug is adulterated if it is a certain prescription
473drug that has been returned by a veterinarian to a limited
474prescription drug veterinary wholesaler; amending s.
475499.01, F.S.; requiring a limited prescription drug
476veterinary wholesaler to obtain a permit for operation
477from the Department of Health; providing that a permit for
478a limited prescription drug veterinary wholesaler may not
479be issued to the address of certain health care entities;
480amending s. 499.012, F.S.; revising permit requirements
481for a veterinary prescription drug wholesaler that
482distributes prescription drugs; establishing a permit for
483a limited prescription drug veterinary wholesaler;
484providing requirements; providing an exception; amending
485s. 499.0121, F.S.; requiring certain wholesale
486distributors taking title to a prescription drug to
487provide an invoice to the purchaser containing certain
488information; requiring a purchaser of a prescription drug
489to obtain from the manufacturer a shipping document
490containing specified information; requiring a manufacturer
491to make certain information available to the department;
492providing a penalty; authorizing the department to adopt
493certain rules relating to the inventory and return of
494certain prescription drugs; amending s. 499.0122, F.S.;
495redefining the term "veterinary legend drug retail
496establishment"; amending s. 499.041, F.S.; requiring the
497department to assess an annual fee within a certain
498monetary range for a limited prescription drug veterinary
499wholesaler permit; amending s. 499.065, F.S.; requiring
500the department to inspect each limited prescription drug
501veterinary wholesaler establishment; authorizing the
502department to determine that a limited prescription drug
503veterinary wholesaler establishment is an imminent danger
504to the public; providing an effective date.


CODING: Words stricken are deletions; words underlined are additions.