Senate Bill sb0926c1
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    Florida Senate - 2006                            CS for SB 926
    By the Committee on Health Care; and Senator Peaden
    587-2189-06
  1                      A bill to be entitled
  2         An act relating to drug distribution; amending
  3         s. 499.0121, F.S.; removing an expiration date
  4         on a provision relating to prescription drug
  5         recordkeeping; requiring that certain
  6         information be provided by certain prescription
  7         drug wholesalers to drug recipients; requiring
  8         drug manufacturers to file a list of authorized
  9         distributors with the department; requiring the
10         department to publish certain information;
11         providing an effective date.
12  
13  Be It Enacted by the Legislature of the State of Florida:
14  
15         Section 1.  Paragraphs (d) and (f) of subsection (6) of
16  section 499.0121, Florida Statutes, are amended to read:
17         499.0121  Storage and handling of prescription drugs;
18  recordkeeping.--The department shall adopt rules to implement
19  this section as necessary to protect the public health,
20  safety, and welfare. Such rules shall include, but not be
21  limited to, requirements for the storage and handling of
22  prescription drugs and for the establishment and maintenance
23  of prescription drug distribution records.
24         (6)  RECORDKEEPING.--The department shall adopt rules
25  that require keeping such records of prescription drugs as are
26  necessary for the protection of the public health.
27         (d)1.  Each person who is engaged in the wholesale
28  distribution of a prescription drug, and who is not an
29  authorized distributor of record for the drug manufacturer's
30  products, must provide to each wholesale distributor of such
31  drug, before the sale is made to such wholesale distributor, a
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    Florida Senate - 2006                            CS for SB 926
    587-2189-06
 1  written statement under oath identifying each previous sale of
 2  the drug back to the last authorized distributor of record,
 3  the lot number of the drug, and the sales invoice number of
 4  the invoice evidencing the sale of the drug. The written
 5  statement must accompany the drug to the next wholesale
 6  distributor. The department shall adopt rules relating to the
 7  requirements of this written statement. This paragraph does
 8  not apply to a manufacturer unless the manufacturer is
 9  performing the manufacturing operation of repackaging
10  prescription drugs.
11         2.  Each wholesale distributor of prescription drugs
12  must maintain separate and distinct from other required
13  records all statements that are required under subparagraph 1.
14  and paragraph (e).
15         3.  Each manufacturer of a prescription drug sold in
16  this state must maintain at its corporate offices a current
17  list of authorized distributors and must make such list
18  available to the department upon request.
19         4.  Each manufacturer shall file a written list of all
20  of the manufacturer's authorized distributors of record with
21  the department. A manufacturer shall notify the department not
22  later than 10 days after any change to the list. The
23  department shall publish a list of all authorized distributors
24  of record on its website.
25         5.  For the purposes of this subsection, the term
26  "authorized distributors of record" means a wholesale
27  distributor with whom a manufacturer has established an
28  ongoing relationship to distribute the manufacturer's
29  products. Effective March 1, 2004, an ongoing relationship is
30  deemed to exist when a wholesale distributor, including any
31  
                                  2
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    Florida Senate - 2006                            CS for SB 926
    587-2189-06
 1  affiliated group, as defined in s. 1504 of the Internal
 2  Revenue Code, of which the wholesale distributor is a member:
 3         a.  Is listed on the manufacturer's current list of
 4  authorized distributors of record.
 5         b.  Annually purchases not less than 90 percent of all
 6  of its purchases of a manufacturer's prescription drug
 7  products, based on dollar volume, directly from that
 8  manufacturer and has total annual prescription drug sales of
 9  $100 million or more.
10         c.  Has reported to the department pursuant to s.
11  499.012(3)(g)2. that the wholesale distributor has total
12  annual prescription drug sales of $100 million or more, and
13  has a verifiable account number issued by the manufacturer
14  authorizing the wholesale distributor to purchase the
15  manufacturer's drug products directly from that manufacturer
16  and that wholesale distributor makes not fewer than 12
17  purchases of that manufacturer's drug products directly from
18  the manufacturer using said verifiable account number in 12
19  months. The provisions of this sub-subparagraph apply with
20  respect to a manufacturer that fails to file a copy of the
21  manufacturer's list of authorized distributors of record with
22  the department by July 1, 2003; that files a list of
23  authorized distributors of record which contains fewer than 10
24  wholesale distributors permitted in this state, excluding the
25  wholesale distributors described in sub-subparagraph b.; or
26  that, as a result of changes to the list of authorized
27  distributors of record filed with the department, has fewer
28  than 10 wholesale distributors permitted in this state as
29  authorized distributors of record, excluding the wholesale
30  distributors described in sub-subparagraph b.
31  
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    Florida Senate - 2006                            CS for SB 926
    587-2189-06
 1  A wholesale distributor that satisfies the requirements of
 2  sub-subparagraph b. or sub-subparagraph c. shall submit to the
 3  department documentation substantiating its qualification
 4  pursuant to sub-subparagraph b. or sub-subparagraph c. The
 5  department shall add those wholesale distributors that the
 6  department has determined have met the requirements of
 7  sub-subparagraph b. or sub-subparagraph c. to the list of
 8  authorized distributors of record on the department's website.
 9         6.  This paragraph expires July 1, 2006.
10         (f)1.  Effective July 1, 2006, each person who is
11  engaged in the wholesale distribution of a prescription drug
12  and who is not the manufacturer of that drug must, before each
13  wholesale distribution of such drug, provide to the person who
14  receives the drug either:
15         a.  A pedigree paper as defined in s. 499.003(31); or
16         b.  Until December 31, 2008, if the prescription drug
17  was purchased directly from the manufacturer, a statement in
18  written or electronic form stating that the wholesale
19  distributor or member of its affiliated group has purchased
20  the specific unit of the prescription drug directly from the
21  manufacturer, as defined in s. 499.012(1)(e), and is an
22  authorized distributor of record as specified in subparagraph
23  (d)5. In accordance with subparagraph (d)5., each manufacturer
24  shall file a written list of all of the manufacturer's
25  authorized distributors of record with the department by July
26  1, 2006. A manufacturer shall notify the department not later
27  than 10 days after any change to the list. The department
28  shall publish a list of all authorized distributors of record
29  on its website.
30         2.  A repackager must comply with this paragraph.
31  
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    Florida Senate - 2006                            CS for SB 926
    587-2189-06
 1         3.  The pedigree paper requirements in this paragraph
 2  do not apply to compressed medical gases or veterinary legend
 3  drugs.
 4         4.  Each wholesale distributor of prescription drugs
 5  must maintain separate and distinct from other required
 6  records all statements that are required under subparagraph 1.
 7         5.  In order to verify compliance with subparagraph
 8  (d)1., each manufacturer of a prescription drug sold in this
 9  state must make available upon request distribution
10  documentation related to its sales of prescription drugs,
11  regardless of whether the prescription drug was sold directly
12  by the manufacturer to a person in Florida.
13         Section 2.  This act shall take effect on July 1, 2006.
14  
15          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
16                         Senate Bill 926
17                                 
18  The bill revises requirements for certain prescription drug
    wholesalers to pass a pedigree paper that traces the
19  distribution history of a prescription drug from the
    manufacturer to the end-user.
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