HB 0685CS

CHAMBER ACTION




1The Health Care Regulation Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to veterinary drug distribution; amending
7s. 499.006, F.S.; providing that a drug is adulterated if
8it is a certain prescription drug that has been returned
9by a veterinarian to a limited prescription drug
10veterinary wholesaler; amending s. 499.01, F.S.; requiring
11a limited prescription drug veterinary wholesaler to
12obtain a permit for operation from the Department of
13Health; providing that a permit for a limited prescription
14drug veterinary wholesaler may not be issued to the
15address of certain health care entities; amending s.
16499.012, F.S.; revising permit requirements for a
17veterinary prescription drug wholesaler that distributes
18prescription drugs; establishing a permit for a limited
19prescription drug veterinary wholesaler; providing
20requirements; providing an exception; amending s.
21499.0122, F.S.; redefining the term "veterinary legend
22drug retail establishment"; amending s. 499.041, F.S.;
23requiring the department to assess an annual fee within a
24certain monetary range for a limited prescription drug
25veterinary wholesaler permit; amending s. 499.065, F.S.;
26requiring the department to inspect each limited
27prescription drug veterinary wholesaler establishment;
28authorizing the department to determine that a limited
29prescription drug veterinary wholesaler establishment is
30an imminent danger to the public; providing an effective
31date.
32
33Be It Enacted by the Legislature of the State of Florida:
34
35     Section 1.  Section 499.006, Florida Statutes, is amended
36to read:
37     499.006  Adulterated drug or device.--A drug or device is
38adulterated:
39     (1)  If it consists in whole or in part of any filthy,
40putrid, or decomposed substance;
41     (2)  If it has been produced, prepared, packed, or held
42under conditions whereby it could have been contaminated with
43filth or rendered injurious to health;
44     (3)  If it is a drug and the methods used in, or the
45facilities or controls used for, its manufacture, processing,
46packing, or holding do not conform to, or are not operated or
47administered in conformity with, current good manufacturing
48practices to assure that the drug meets the requirements of ss.
49499.001-499.081 and that the drug has the identity and strength,
50and meets the standard of quality and purity, which it purports
51or is represented to possess;
52     (4)  If it is a drug and its container is composed, in
53whole or in part, of any poisonous or deleterious substance
54which could render the contents injurious to health;
55     (5)  If it is a drug and it bears or contains, for the
56purpose of coloring only, a color additive that is unsafe within
57the meaning of the federal act; or, if it is a color additive,
58the intended use of which in or on drugs is for the purpose of
59coloring only, and it is unsafe within the meaning of the
60federal act;
61     (6)  If it purports to be, or is represented as, a drug the
62name of which is recognized in the official compendium, and its
63strength differs from, or its quality or purity falls below, the
64standard set forth in such compendium. The determination as to
65strength, quality, or purity must be made in accordance with the
66tests or methods of assay set forth in such compendium, or, when
67such tests or methods of assay are absent or inadequate, in
68accordance with those tests or methods of assay prescribed under
69authority of the federal act. A drug defined in the official
70compendium is not adulterated under this subsection merely
71because it differs from the standard of strength, quality, or
72purity set forth for that drug in such compendium if its
73difference in strength, quality, or purity from such standard is
74plainly stated on its label;
75     (7)  If it is not subject to subsection (6) and its
76strength differs from, or its purity or quality falls below the
77standard of, that which it purports or is represented to
78possess;
79     (8)  If it is a drug:
80     (a)  With which any substance has been mixed or packed so
81as to reduce the quality or strength of the drug; or
82     (b)  For which any substance has been substituted wholly or
83in part;
84     (9)  If it is a drug or device for which the expiration
85date has passed; or
86     (10)  If it is a legend drug for which the required
87pedigree paper is nonexistent, fraudulent, or incomplete under
88the requirements of ss. 499.001-499.081 or applicable rules, or
89that has been purchased, held, sold, or distributed at any time
90by a person not authorized under federal or state law to do so;
91or.
92     (11)  If it is a prescription drug subject to, defined by,
93or described by s. 503(b) of the Federal Food, Drug, and
94Cosmetic Act which has been returned by a veterinarian to a
95limited prescription drug veterinary wholesaler.
96     Section 2.  Subsection (1) and paragraph (d) of subsection
97(2) of section 499.01, Florida Statutes, are amended to read:
98     499.01  Permits; applications; renewal; general
99requirements.--
100     (1)  Prior to operating, a permit is required for each
101person and establishment that intends to operate as:
102     (a)  A prescription drug manufacturer;
103     (b)  A prescription drug repackager;
104     (c)  An over-the-counter drug manufacturer;
105     (d)  A compressed medical gas manufacturer;
106     (e)  A device manufacturer;
107     (f)  A cosmetic manufacturer;
108     (g)  A prescription drug wholesaler;
109     (h)  A veterinary prescription drug wholesaler;
110     (i)  A compressed medical gas wholesaler;
111     (j)  An out-of-state prescription drug wholesaler;
112     (k)  A nonresident prescription drug manufacturer;
113     (l)  A freight forwarder;
114     (m)  A retail pharmacy drug wholesaler;
115     (n)  A veterinary legend drug retail establishment;
116     (o)  A medical oxygen retail establishment;
117     (p)  A complimentary drug distributor; or
118     (q)  A restricted prescription drug distributor; or.
119     (r)  A limited prescription drug veterinary wholesaler.
120     (2)
121     (d)  A permit for a prescription drug manufacturer,
122prescription drug repackager, prescription drug wholesaler,
123limited prescription drug veterinary wholesaler, or retail
124pharmacy wholesaler may not be issued to the address of a health
125care entity or to a pharmacy licensed under chapter 465, except
126as provided in this paragraph. The department may issue a
127prescription drug manufacturer permit to an applicant at the
128same address as a licensed nuclear pharmacy, which is a health
129care entity, for the purpose of manufacturing prescription drugs
130used in positron emission tomography or other
131radiopharmaceuticals, as listed in a rule adopted by the
132department pursuant to this paragraph. The purpose of this
133exemption is to assure availability of state-of-the-art
134pharmaceuticals that would pose a significant danger to the
135public health if manufactured at a separate establishment
136address from the nuclear pharmacy from which the prescription
137drugs are dispensed. The department may also issue a retail
138pharmacy wholesaler permit to the address of a community
139pharmacy licensed under chapter 465 which does not meet the
140definition of a closed pharmacy in s. 499.003.
141     Section 3.  Paragraph (g) of subsection (2) of section
142499.012, Florida Statutes, is amended, and paragraph (h) is
143added to that subsection, to read:
144     499.012  Wholesale distribution; definitions; permits;
145applications; general requirements.--
146     (2)  The following types of wholesaler permits are
147established:
148     (g)  A veterinary prescription drug wholesaler permit.--A
149veterinary prescription drug wholesaler permit is required for
150any person that engages in the distribution of veterinary
151prescription drugs in or into this state. A veterinary
152prescription drug wholesaler that also distributes prescription
153drugs subject to, defined by, or described by s. 503(b) of the
154Federal Food, Drug, and Cosmetic Act which it did not
155manufacture must obtain a permit as a prescription drug
156wholesaler, an or out-of-state prescription drug wholesaler, or
157a limited prescription drug veterinary wholesaler in lieu of the
158veterinary prescription drug wholesaler permit. A veterinary
159prescription drug wholesaler must comply with the requirements
160for wholesale distributors under s. 499.0121, except those set
161forth in s. 499.0121(6)(d), (e), or (f).
162     (h)  Limited prescription drug veterinary wholesaler
163permit.--Unless engaging in the activities of and permitted as a
164prescription drug manufacturer, nonresident prescription drug
165manufacturer, prescription drug wholesaler, or out-of-state
166prescription drug wholesaler, a limited prescription drug
167veterinary wholesaler permit is required for any person that
168engages in the distribution in or into this state of veterinary
169prescription drugs and prescription drugs subject to, defined
170by, or described by s. 503(b) of the Federal Food, Drug, and
171Cosmetic Act to veterinarians under the following conditions:
172     1.  The person is engaged in the business of wholesaling
173prescription and veterinary legend drugs to persons:
174     a.  Licensed as veterinarians practicing on a full-time
175basis;
176     b.  Regularly and lawfully engaged in instruction in
177veterinary medicine;
178     c.  Regularly and lawfully engaged in law enforcement;
179     d.  For use in research, not involving clinical use; or
180     e.  For use in chemical analysis or physical testing, for
181the purposes of instruction in law enforcement, research, or
182testing.
183     2.  No more than 30 percent of prescription drug sales may
184be prescription drugs approved for human use which are subject
185to, defined by, or described by s. 503(b) of the Federal Food,
186Drug, and Cosmetic Act.
187     3.  The person is not permitted, licensed, or otherwise
188authorized in any state to wholesale prescription drugs subject
189to, defined by, or described by s. 503(b) of the Federal Food,
190Drug, and Cosmetic Act to any person who is authorized to sell,
191distribute, purchase, trade, or use these drugs on or for
192humans.
193     4.  A limited prescription drug veterinary wholesaler that
194applies to the department for a new permit or the renewal of a
195permit must submit a bond of $20,000, or other equivalent means
196of security acceptable to the department, such as an irrevocable
197letter of credit or a deposit in a trust account or financial
198institution, payable to the Florida Drug, Device, and Cosmetic
199Trust Fund. The purpose of the bond is to secure payment of any
200administrative penalties imposed by the department and any fees
201and costs incurred by the department regarding that permit which
202are authorized under state law and which the permittee fails to
203pay 30 days after the fine or costs become final. The department
204may make a claim against such bond or security until 1 year
205after the permittee's license ceases to be valid or until 60
206days after any administrative or legal proceeding authorized in
207ss. 499.001-499.081 which involves the permittee is concluded,
208including any appeal, whichever occurs later.
209     5.  A limited prescription drug veterinary wholesaler must
210maintain at all times a license or permit to engage in the
211wholesale distribution of prescription drugs in compliance with
212laws of the state in which it is a resident.
213     6.  A limited prescription drug veterinary wholesaler must
214comply with the requirements for wholesale distributors under s.
215499.0121, except that a limited prescription drug veterinary
216wholesaler is not required to provide a pedigree paper as
217required by s. 499.0121(6)(f) upon the wholesale distribution of
218a prescription drug to a veterinarian.
219     7.  A limited prescription drug veterinary wholesaler may
220not return to inventory for subsequent wholesale distribution
221any prescription drug subject to, defined by, or described by s.
222503(b) of the Federal Food, Drug, and Cosmetic Act which has
223been returned by a veterinarian.
224     8.  An out-of-state prescription drug wholesaler's permit
225or a limited prescription drug veterinary wholesaler permit is
226not required for an intracompany sale or transfer of a
227prescription drug from an out-of-state establishment that is
228duly licensed to engage in the wholesale distribution of
229prescription drugs in its state of residence to a licensed
230limited prescription drug veterinary wholesaler in this state if
231both wholesalers conduct wholesale distributions of prescription
232drugs under the same business name. The recordkeeping
233requirements of s. 499.0121(6) must be followed for this
234transaction.
235     Section 4.  Paragraph (d) of subsection (1) of section
236499.0122, Florida Statutes, is amended to read:
237     499.0122  Medical oxygen and veterinary legend drug retail
238establishments; definitions, permits, general requirements.--
239     (1)  As used in this section, the term:
240     (d)  "Veterinary legend drug retail establishment" means a
241person permitted to sell veterinary legend drugs to the public
242or to veterinarians, but does not include a pharmacy licensed
243under chapter 465.
244     1.  The sale to the public must be based on a valid written
245order from a veterinarian licensed in this state who has a valid
246client-veterinarian relationship with the purchaser's animal.
247     2.  Veterinary legend drugs may not be sold in excess of
248the amount clearly indicated on the order or beyond the date
249indicated on the order.
250     3.  An order may not be valid for more than 1 year.
251     4.  A veterinary legend drug retail establishment may not
252purchase, sell, trade, or possess human prescription drugs or
253any controlled substance as defined in chapter 893.
254     5.  A veterinary legend drug retail establishment must sell
255a veterinary legend drug in the original, sealed manufacturer's
256container with all labeling intact and legible. The department
257may adopt by rule additional labeling requirements for the sale
258of a veterinary legend drug.
259     Section 5.  Paragraph (h) is added to subsection (2) of
260section 499.041, Florida Statutes, to read:
261     499.041  Schedule of fees for drug, device, and cosmetic
262applications and permits, product registrations, and free-sale
263certificates.--
264     (2)  The department shall assess an applicant that is
265required to have a wholesaling permit an annual fee within the
266ranges established in this section for the specific type of
267wholesaling.
268     (h)  The fee for a limited prescription drug veterinary
269wholesaler's permit may not be less than $300 or more than $500
270annually.
271     Section 6.  Subsections (1) and (3) of section 499.065,
272Florida Statutes, are amended to read:
273     499.065  Imminent danger.--
274     (1)  Notwithstanding s. 499.051, the department shall
275inspect each prescription drug wholesale establishment,
276prescription drug repackager establishment, veterinary
277prescription drug wholesale establishment, limited prescription
278drug veterinary wholesaler establishment, and retail pharmacy
279drug wholesaler establishment that is required to be permitted
280under this chapter as often as necessary to ensure compliance
281with applicable laws and rules. The department shall have the
282right of entry and access to these facilities at any reasonable
283time.
284     (3)  The department may determine that a prescription drug
285wholesale establishment, prescription drug repackager
286establishment, veterinary prescription drug wholesale
287establishment, limited prescription drug veterinary wholesaler
288establishment, or retail pharmacy drug wholesaler establishment
289that is required to be permitted under this chapter is an
290imminent danger to the public health and shall require its
291immediate closure if the establishment fails to comply with
292applicable laws and rules and, because of the failure, presents
293an imminent threat to the public's health, safety, or welfare.
294Any establishment so deemed and closed shall remain closed until
295allowed by the department or by judicial order to reopen.
296
297For purposes of this section, a refusal to allow entry to the
298department for inspection at reasonable times, or a failure or
299refusal to provide the department with required documentation
300for purposes of inspection, constitutes an imminent danger to
301the public health.
302     Section 7.  This act shall take effect July 1, 2006.


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