Florida Senate - 2014 COMMITTEE AMENDMENT Bill No. CS for SB 836 Ì7711841Î771184 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/01/2014 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 1 Senate Amendment to Amendment (181392) 2 3 Delete lines 789 - 1402 4 and insert: 5 otherwise authorized under this chapter. 6 (b) Medical gas manufacturer permit.—A medical gas 7 manufacturer permit is required for a person or entity located 8 in this state which engages in the manufacture of medical gases 9 by physical air separation, chemical action, purification, or 10 filling containers by a liquid-to-liquid, liquid-to-gas, or gas 11 to-gas process and distributes those medical gases within this 12 state. 13 1. A permitted medical gas manufacturer may not manufacture 14 or possess a prescription drug other than a medical gas, unless 15 otherwise authorized under this chapter. 16 2. A permitted medical gas manufacturer may not distribute 17 a medical gas without obtaining the applicable permit, except 18 that it may engage in wholesale distribution of medical gases 19 that it manufactured without obtaining a medical gas wholesale 20 distributor permit if it complies with this part and the rules 21 adopted under this part that apply to a wholesale distributor. 22 3. A permitted medical gas manufacturer shall comply with 23 all of the requirements applicable to a wholesale distributor 24 under this part and all appropriate state and federal good 25 manufacturing practices. 26 (c) Medical oxygen retail establishment permit.—A medical 27 oxygen retail establishment permit is required for an entity 28 that is located in the state and that dispenses medical oxygen 29 directly to patients in this state. The sale and delivery must 30 be based on a prescription or an order from a practitioner 31 authorized by law to prescribe. A pharmacy licensed under 32 chapter 465 does not require a permit as a medical oxygen retail 33 establishment. 34 1. A medical oxygen retail establishment may not possess, 35 purchase, sell, or trade a medical gas other than medical 36 oxygen, unless otherwise authorized under this chapter. 37 2. A medical oxygen retail establishment may fill and 38 deliver medical oxygen to an individual patient based on an 39 order from a practitioner authorized by law to prescribe. The 40 medical oxygen retail establishment must comply with all 41 appropriate state and federal good manufacturing practices. 42 Medical oxygen sold or delivered by a medical oxygen retail 43 establishment pursuant to an order from a practitioner may not 44 be returned into the retail establishment’s inventory. 45 3. A medical oxygen retail establishment shall comply with 46 all of the requirements applicable to a wholesale distributor 47 under this part, except for those requirements that pertain 48 solely to nitrous oxide. 49 (3) An out-of-state wholesale distributor that engages in 50 wholesale distribution into this state must be legally 51 authorized to engage in the wholesale distribution of medical 52 gases as a wholesale distributor in the state in which it 53 resides or is incorporated and provide proof of registration as 54 set forth in s. 499.93(3), if required. 55 (4) A wholesale distributor may not operate from a place of 56 residence, and a place of residence may not be granted a permit 57 or operate under this part, except for the on-call delivery of 58 home care oxygen for wholesale distributors that also maintain a 59 medical oxygen retail establishment permit. 60 (5) If wholesale distribution is conducted at more than one 61 location within this state or more than one location 62 distributing into this state, each location must be permitted by 63 the department. 64 Section 16. Section 499.831, Florida Statutes, is created 65 to read: 66 499.831 Permit application.— 67 (1) The department shall adopt rules to establish the form 68 and content of the application to obtain a permit and to renew a 69 permit listed under this part. 70 (2) An applicant must be at least 18 years of age or be 71 managed, controlled, or overseen, directly or indirectly, by a 72 natural person who is at least 18 years of age. 73 (3) An application for a permit must be filed with the 74 department and must include all of the following information: 75 (a) The trade or business name of the applicant, including 76 a fictitious name, which may not be identical to a name used by 77 an unrelated entity permitted in this state to dispense or 78 distribute medical gas. 79 (b) The name or names of the owner and operator of the 80 applicant, if not the same person or entity. The application 81 must also include: 82 1. If the applicant is an individual, the applicant’s name, 83 business address, and date of birth. 84 2. If the applicant is a sole proprietorship, the business 85 address of the sole proprietor and the name and federal employer 86 identification number of the business entity. 87 3. If the applicant is a partnership, the name, business 88 address, date of birth of each partner, the name of the 89 partnership, and the partnership’s federal employer 90 identification number. 91 4. If the applicant is a limited liability company, the 92 name, business address, and title of each company officer, the 93 name of the limited liability company and federal employer 94 identification number, and the name of the state in which the 95 limited liability company was organized. 96 5. If the applicant is a corporation, the name, business 97 address, and title of each corporate officer and director, the 98 corporate names, the state of incorporation, the federal 99 employer identification number, and, if applicable, the name and 100 business address of the parent company. 101 (c) A list of disciplinary actions pertinent to wholesale 102 distributors, manufacturers, and retailers of prescription drugs 103 or controlled substances by a state or federal agency against 104 the applicant seeking to distribute into this state and any such 105 disciplinary actions against such applicant’s principals, 106 owners, directors, or officers. 107 (d) A complete disclosure of all of the applicant’s past 108 felony convictions. 109 (e) An address and description of each facility and 110 warehouse, including all locations used for medical gas storage 111 or wholesale distribution including a description of each 112 facility’s security system. 113 (4) An applicant shall attest in writing that the 114 information contained in its application is complete and 115 accurate. 116 (5) An applicant must submit a reasonable fee, to be 117 determined by the department, in order to obtain a permit. 118 (a) The fee for a medical gas wholesale distributor permit 119 may not be less than $200 or more than $300 annually. 120 (b) The fee for a medical gas manufacturer permit may not 121 be less than $400 or more than $500 annually. 122 (c) The fee for a medical oxygen retail establishment 123 permit may not be less than $200 or more than $300 annually. 124 (6) Upon approval of the application by the department and 125 payment of the required fee, the department shall issue a permit 126 to the applicant pursuant to the rules adopted under this part. 127 Section 17. Section 499.832, Florida Statutes, is created 128 to read: 129 499.832 Expiration and renewal of a permit.— 130 (1) A permit issued under this part automatically expires 2 131 years after the last day of the month in which the permit was 132 originally issued. 133 (2) A permit issued under this part may be renewed by 134 submitting an application for renewal on a form furnished by the 135 department and paying the appropriate fee. The application for 136 renewal must contain a statement by the applicant attesting that 137 the information is true and correct. Upon approval of a renewal 138 application by the department and payment of the required 139 renewal fee, the department shall renew a permit issued under 140 this part pursuant to the rules adopted under this part. 141 (3) A renewal application may be accepted up to 60 days 142 after the expiration date of the permit if, along with the 143 permit renewal fee, the applicant submits an additional renewal 144 delinquent fee of $100. A permit that expired more than 60 days 145 before a renewal application was submitted or postmarked may not 146 be renewed. 147 (4) Failure to renew a permit in accordance with this 148 section precludes future renewal. If a permit has expired and 149 cannot be renewed, the person, entity, or establishment holding 150 the permit must cease all permit related activities. In order to 151 engage in activities that require a permit the person, entity, 152 or establishment must submit an application for a new permit, 153 pay the applicable application fee, the initial permit fee, and 154 all applicable penalties, and be issued a new permit by the 155 department before engaging in an activity that requires a permit 156 under this part. 157 (5) The department shall adopt rules to administer this 158 section, including setting a reasonable fee for a renewal 159 application. 160 Section 18. Section 499.833, Florida Statutes, is created 161 to read: 162 499.833 Permitholder changes.— 163 (1) A permit issued under this part is valid only for the 164 person or entity to which it is issued and is not subject to 165 sale, assignment, or other transfer, voluntarily or 166 involuntarily. 167 (2) A permit issued under this part is not valid for an 168 establishment other than the establishment for which it was 169 originally issued. 170 (3) The department may approve the following permit 171 changes: 172 (a) Change of location.—A person or entity permitted under 173 this part must notify and receive approval from the department 174 before changing location. The department shall set a change-of 175 location fee not to exceed $100. 176 (b) Change in ownership.—If a majority of the ownership or 177 controlling interest of a permitted establishment is transferred 178 or assigned or if a lessee agrees to undertake or provide 179 services such that legal liability for operation of the 180 establishment will rest with the lessee, an application for a 181 new permit is required. Such application must be submitted and 182 approved by the department before the change of ownership takes 183 place. However, if a permitted wholesale distributor or 184 manufacturer is changing ownership and the new owner has held 185 another permit that allows the wholesale distribution of medical 186 gas under this chapter for the preceding 18 months without 187 having been found in violation of the provisions of this chapter 188 relating to medical gases, then the new owner may operate under 189 the permit of the acquired entity if the new owner submits the 190 application for a new permit by the first business day after 191 ownership is transferred or assigned. A new owner operating 192 under the original permit is responsible for compliance with all 193 laws and regulations governing medical gas. If the application 194 is denied, the new owner shall immediately cease operation at 195 the establishment until a permit is issued to the new owner. 196 (c) Change of name.—A permitholder may make a change of 197 business name without submitting a new permit application. 198 However, the permitholder must notify the department before 199 making the name change. 200 (d) Closure.—If an establishment permitted under this part 201 closes, the owner must notify the department, in writing, before 202 the effective date of the closure and must: 203 1. Return the permit to the department; and 204 2. Indicate the disposition of any medical gas authorized 205 to be distributed or dispensed under the permit, including the 206 name, address, and inventory, and provide the name and address 207 of a person to contact regarding access to the records that are 208 required to be maintained under this part. Transfer of ownership 209 of medical gas may be made only to persons authorized to receive 210 medical gas pursuant to this part. 211 (e) Change in information.—Any change in the information 212 required under this part, other than the changes in paragraphs 213 (a)-(d), shall be submitted to the department within 30 days 214 after such change occurs. 215 (4) A permitholder in good standing may change the type of 216 permit issued by completing a new application for the requested 217 permit, meeting the applicable permitting requirements for the 218 new permit type, and paying any difference between the permit 219 fees. A refund may not be issued if the fee for the new permit 220 is less than the fee that was paid for the original permit. The 221 new permit retains the expiration date of the original permit. 222 Section 19. Section 499.834, Florida Statutes, is created 223 to read: 224 499.834 Minimum qualifications.—The department shall 225 consider all of the following factors in determining eligibility 226 for, and renewal of, a permit for a person or entity under this 227 part: 228 (1) A finding by the department that the applicant has 229 violated or been disciplined by a regulatory agency in any state 230 for violating a federal, state, or local law relating to 231 prescription drugs. 232 (2) Felony convictions of the applicant under a federal, 233 state, or local law. 234 (3) The applicant’s past experience in the manufacture, 235 retail, or distribution of medical gases. 236 (4) False or fraudulent material provided by the applicant 237 in an application made in connection with the manufacturing, 238 retailing, or distribution of prescription drugs. 239 (5) Any suspension, sanction, or revocation by a federal, 240 state, or local government against a license or permit currently 241 or previously held by the applicant or its owners for violations 242 of a federal, state, or local law regarding prescription drugs. 243 (6) Compliance with previously granted licenses or permits. 244 (7) Compliance with the requirements that distributors or 245 retailers of medical gases maintain records and make records 246 available to the department licensing authority or federal, 247 state, or local law enforcement officials. 248 (8) Other factors or qualifications the department 249 considers relevant to and consistent with the public health and 250 safety. 251 Section 20. Section 499.84, Florida Statutes, is created to 252 read: 253 499.84 Minimum requirements for the storage and handling of 254 medical gases.— 255 (1) A facility where a medical gas is received, stored, 256 warehoused, handled, held, offered, marketed, displayed, or 257 transported, to avoid any negative effect on the identity, 258 strength, quality, or purity of the medical gas, must: 259 (a) Be of suitable construction to ensure that medical 260 gases are maintained in accordance with the product labeling of 261 the medical gas or in compliance with the USP-NF; 262 (b) Be of suitable size and construction to facilitate 263 cleaning, maintenance, and proper permitted operations; 264 (c) Have adequate storage areas with appropriate lighting, 265 ventilation, space, equipment, and security conditions. 266 (d) Have a quarantined area for storage of medical gases 267 that are suspected of being misbranded, adulterated, or 268 otherwise unfit for distribution; 269 (e) Be maintained in an orderly condition; 270 (f) Be located in a commercial location and not in a 271 personal dwelling or residence location, except that a personal 272 dwelling location used for on-call delivery of oxygen USP for 273 homecare use if the person providing on-call delivery is 274 employed by or acting under a written contract with an entity 275 that holds a medical oxygen retailer permit; 276 (g) Provide for the secure and confidential storage of 277 patient information, if applicable, with restricted access and 278 policies and procedures to protect the integrity and 279 confidentiality of patient information; and 280 (h) Provide and maintain appropriate inventory controls to 281 detect and document any theft of nitrous oxide. 282 (2) Medical gas shall be stored under appropriate 283 conditions in accordance with the manufacturer’s recommendations 284 on product labeling and department rules or, in the absence of 285 rules, in accordance with applicable industry standards. 286 (3) Medical gas shall be packaged in accordance with 287 official compendium standards, such as the USP-NF. 288 Section 21. Section 499.85, Florida Statutes, is created to 289 read: 290 499.85 Security.— 291 (1) A permitholder that has a facility used for the 292 distribution or retailing of medical gases shall protect such 293 gases from unauthorized access by implementing all of the 294 following security measures: 295 (a) Keeping access from outside the premises well 296 controlled and to a minimum. 297 (b) Ensuring the outside perimeter of the premises is well 298 lit. 299 (c) Limiting access into areas where medical gases are held 300 to authorized personnel. 301 (d) Equipping all facilities with a fence or other system 302 to detect or deter entry after hours. 303 (2) A facility used for distributing or retailing medical 304 gases shall be equipped with a system that provides suitable 305 protection against theft, including if appropriate, protection 306 against theft of computers or electronic records and the 307 protection of the integrity and confidentiality of data and 308 documents. 309 (3) A facility used for wholesale distribution of medical 310 gases shall be equipped with inventory management and control 311 systems that protect against, detect, and document any instances 312 of theft of nitrous oxide. 313 (4) If a wholesale distributor uses electronic distribution 314 records, the wholesale distributor shall employ, train, and 315 document the training of personnel in the proper use of such 316 technology and equipment. 317 (5) Vehicles used for on-call delivery of oxygen USP and 318 oxygen-related equipment for home care use by home care 319 providers may be parked at a place of residence and must be 320 locked and equipped with an audible alarm when not attended. 321 (6) The department shall adopt rules that govern the 322 distribution of medical oxygen for emergency use by persons 323 authorized to receive emergency use oxygen. Unless the laws of 324 this state specifically direct otherwise, such rules must be 325 consistent with federal regulations, including the labeling 326 requirements of oxygen under the federal act. 327 Section 22. Section 499.86, Florida Statutes, is created to 328 read: 329 499.86 Examination of materials.— 330 (1) A wholesale distributor must visually examine a medical 331 gas container upon receipt from the manufacturer in order to 332 identify the medical gas stored within and to determine if the 333 container has been damaged or is otherwise unfit for 334 distribution. Such examination must occur in a manner that would 335 reveal damage to the container which could suggest possible 336 adulteration or misbranding. 337 (2) A medical gas container that is found to be damaged or 338 otherwise unfit pursuant to subsection (1) must be quarantined 339 from the stock of medical gas until a determination is made that 340 the medical gas in question is not misbranded or adulterated. 341 (3) An outgoing shipment must be inspected to identify the 342 medical gases in the shipment to ensure that medical gas 343 containers that have been damaged in storage or held under 344 improper conditions are not distributed or dispensed. 345 (4) A wholesale distributor must review records documenting 346 the acquisition of medical gas upon receipt for accuracy and 347 completeness. 348 Section 23. Section 499.87, Florida Statutes, is created to 349 read: 350 499.87 Returned, damaged, and outdated medical gas.— 351 (1) A medical gas that has left the control of the 352 wholesale distributor may be returned to the wholesale 353 distributor or manufacturer from which it was acquired, but may 354 not be resold as a medical gas unless it is reprocessed by a 355 manufacturer using proper and adequate controls to ensure the 356 identity, strength, quality, and purity of the reprocessed 357 medical gas. 358 (2) A medical gas that has been subjected to improper 359 conditions, such as a fire, accident, or natural disaster, may 360 not be salvaged or reprocessed. 361 (3) A medical gas, including its container, which is 362 damaged, misbranded, or adulterated must be quarantined from 363 other medical gases until it is destroyed or returned to the 364 manufacturer or wholesale distributor from which it was 365 acquired. External contamination of a medical gas container or 366 closure system which does not impact the integrity of the 367 medical gas is not considered damaged or adulterated for 368 purposes of this subsection. If a medical gas is adulterated or 369 misbranded or suspected of being adulterated or misbranded, 370 notice shall be provided to the manufacturer or wholesale 371 distributor from which the medical gas was acquired and to the 372 appropriate boards and federal regulatory bodies. 373 (4) A medical gas container that has been opened or used 374 but is not adulterated or misbranded is considered empty and 375 must be quarantined from nonempty medical gas containers and 376 returned to the manufacturer or wholesale distributor from which 377 it was acquired for destruction or reprocessing. 378 (5) A medical gas, its container, or its associated 379 documentation or labeling that is suspected of being used in 380 criminal activity must be retained until its disposition is 381 authorized by the department or an applicable law enforcement 382 agency. 383 Section 24. Section 499.88, Florida Statutes, is created to 384 read: 385 499.88 Due diligence.— 386 (1) A wholesale distributor shall obtain, before the 387 initial acquisition of medical gas, the following information 388 from the supplying wholesale distributor or manufacturer: 389 (a) If a manufacturer is distributing to a wholesale 390 distributor, evidence that the manufacturer is registered and 391 the medical gas is listed with the United States Food and Drug 392 Administration; 393 (b) If a wholesale distributor is distributing to a 394 wholesale distributor, evidence that the wholesale distributor 395 supplying the medical gas is legally authorized to distribute 396 medical gas within or into the state; 397 (c) The name of the responsible facility contact person for 398 the supplying manufacturer or wholesale distributor; and 399 (d) Certification that the manufacturer’s or wholesale 400 distributor’s policies and procedures comply with this part. 401 (2) A wholesale distributor is exempt from obtaining the 402 information from a manufacturer, as required under subsection 403 (1), if the manufacturer is registered with the United States 404 Food and Drug Administration in accordance with s. 510 of the 405 federal act and the manufacturer provides: 406 (a) Proof of such registration; and 407 (b) Proof of inspection by the United States Food and Drug 408 Administration or other regulatory body within the past 3 years 409 demonstrating substantial compliance with current good 410 manufacturing practices applicable to medical gases. 411 (3) A manufacturer or wholesale distributor that 412 distributes to or acquires medical gas from another wholesale 413 distributor shall provide to or obtain from the distributing or 414 acquiring manufacturer or distributor the information required 415 by s. 499.89(1), as applicable. 416 Section 25. Section 499.89, Florida Statutes, is created to 417 read: 418 499.89 Recordkeeping.— 419 (1) A permitholder under this part shall establish and 420 maintain a record of transactions regarding the receipt and the 421 distribution, or other disposition, of medical gases, as 422 applicable. Such records constitute an audit trail and must 423 contain information sufficient to perform a recall of medical 424 gas in compliance with 21 C.F.R. s. 211.196 and 21 C.F.R. s. 425 820.160(b). Such records must include all of the following 426 information, which may be kept in two separate documents one 427 related to the distribution of medical gas and the other related 428 to the receipt of medical gas: 429 (a) The dates of receipt and distribution or other 430 disposition of the medical gas. 431 (b) The name, address, license or permit number and its 432 expiration date for the person or entity purchasing the medical 433 gas from the wholesale distributor. 434 (c) The name, address, license or permit number and its 435 expiration date for the person or entity receiving the medical 436 gas, if different from the information required under paragraph 437 (b). 438 (d) Information sufficient to perform a recall of all 439 medical gas received, distributed, or dispensed. 440 (2) Such records shall be made available for inspection and 441 copying by an authorized official of any federal, state, or 442 local governmental agency for a period of: 443 (a) Three years following the distribution date of high 444 pressure medical gases. 445 (b) Two years following the distribution date for cryogenic 446 or refrigerated liquid medical gases. 447 (3) Records kept at the inspection site or that can be 448 immediately retrieved by computer or other electronic means 449 shall be readily available for authorized inspection during the 450 retention period. Records kept at a central location apart from 451 the inspection site and not electronically retrievable shall be 452 made available for inspection within 2 working days of a request 453 by an authorized official of any state or federal governmental 454 agency charged with enforcement of these rules. 455 (4) A pedigree paper is not required for distributing or 456 dispensing medical gas. 457 (5) A wholesale distributor shall maintain records 458 sufficient to aid in the mandatory reporting of any theft, 459 suspected theft, or other significant loss of nitrous oxide to 460 the department and other appropriate law enforcement agencies. 461 Section 26. Section 499.90, Florida Statutes, is created to 462 read: 463 499.90 Policies and procedures.—A wholesale distributor 464 shall establish, maintain, and adhere to written policies and 465 procedures for the receipt, security, storage, transport, 466 shipping, and distribution of medical gases and shall establish, 467 maintain, and adhere to procedures for maintaining inventories; 468 for identifying, recording, and reporting losses or thefts; and 469 for correcting all errors and inaccuracies in inventories 470 associated with nitrous oxide. A wholesale distributor shall 471 include in its written policies and procedures the following: 472 (1) A procedure for handling recalls and withdrawals of 473 medical gas. Such procedure must deal with recalls and 474 withdrawals due to: 475 (a) Action initiated at the request of the United States 476 Food and Drug Administration or any federal, state, or local law 477 enforcement or other government agency, including the 478 department; or 479 (b) Voluntary action by a manufacturer of medical gases to 480 remove defective or potentially defective medical gases from the 481 market. 482 (2) A procedure that includes preparation for, protection 483 against, and responding to a crisis that affects the security or 484 operation of a facility that stores medical gases in the event 485 of a strike; a fire, flood, or other natural disaster; or other 486 local, state, or national emergency. 487 (3) A procedure for reporting criminal or suspected 488 criminal activity involving the inventory of nitrous oxide to 489 the department and to applicable law enforcement agencies within 490 3 business days after becoming aware of the criminal or 491 suspected criminal activity. 492 Section 27. Section 499.91, Florida Statutes, is created to 493 read: 494 499.91 Prohibited acts.—A person may not perform or cause 495 the performance of, or aid and abet in, any of the following 496 acts: 497 (1) The manufacture, sale, or delivery, or the holding or 498 offering for sale, of a medical gas that is adulterated, 499 misbranded, or is otherwise unfit for distribution. 500 (2) The adulteration or misbranding of a medical gas. 501 (3) The receipt of a medical gas that is adulterated, 502 misbranded, stolen, or obtained by fraud or deceit, and the 503 delivery or proffered delivery of such medical gas for pay or 504 otherwise. 505 (4) The alteration, mutilation, destruction, obliteration, 506 or removal of all or any part of the product labeling of a 507 medical gas, or the willful commission of any other act with 508 respect to a medical gas that results in it being misbranded. 509 (5) The purchase or receipt of a medical gas from a person 510 not authorized to distribute or dispense medical gas or who is 511 not exempted from permitting requirements to wholesale 512 distribute medical gas to such purchaser or recipient. 513 (6) The knowing and willful sale or transfer of a medical 514 gas to a recipient who is not legally authorized to receive a 515 medical gas, except that a violation does not exist if a 516 permitted wholesale distributor provides oxygen to a permitted 517 medical oxygen retail establishment that is out of compliance 518 with the notice of location change requirements of s. 499.834, 519 provided that the wholesale distributor with knowledge of the 520 violation notifies the department of the transaction by the next 521 business day. 522 (7) The failure to maintain or provide records required 523 under this part and the rules adopted under this part. 524 (8) Providing the department or any of its representatives 525 or any state or federal official with false or fraudulent 526 records or making false or fraudulent statements regarding this 527 part or the rules adopted under this part. 528 (9) The distribution of a medical gas that was: 529 (a) Purchased by a public or private hospital or other 530 health care entity, except for the physical distribution of such 531 medical gas to an authorized recipient at the direction of a 532 hospital or other health care entity; 533 (b) Donated or supplied at a reduced price to a charitable 534 organization; or 535 (c) Stolen or obtained by fraud or deceit. 536 (10) The failure to obtain a license or permit or operating 537 without a valid license or permit, if one is required. 538 (11) The obtaining of, or attempt to obtain, a medical gas 539 by fraud, deceit, or misrepresentation or engaging in 540 misrepresentation or fraud in the distribution of a medical gas. 541 (12) Except for emergency use oxygen, the distribution of a 542 medical gas to a patient without a prescription from a 543 practitioner authorized by law to prescribe a medical gas. 544 (13) The distribution or dispensing of a medical gas that 545 was previously dispensed by a pharmacy or a practitioner 546 authorized by law to prescribe. 547 (14) The distribution or dispensing of a medical gas or 548 medical gas-related equipment to a patient, unless the patient 549 has been provided with the appropriate information and 550 counseling on the use, storage, and disposal of the medical gas. 551 (15) Failure to report an act prohibited under this part or 552 the rules adopted under this part. 553 (16) Failure to exercise due diligence as provided in s. 554 499.88. 555 Section 28. Section 499.92, Florida Statutes, is created to 556 read: 557 499.92 Criminal acts.— 558 (1) A person commits a felony of the third degree, 559 punishable as provided in s. 775.082, s. 775.083, or s. 775.084, 560 if he or she: 561 (a) Adulterates or misbrands a medical gas with intent to 562 defraud or deceive; 563 (b) Knowingly purchases or receives a medical gas from a 564 person not legally authorized to distribute or dispense medical 565 gas; 566 (c) Knowingly engages in the wholesale distribution of, or 567 sells, barters, brokers, or transfers, a medical gas to a person 568 not legally authorized to purchase or receive medical gas in the 569 jurisdiction in which the person receives the medical gas. A 570 permitted wholesale distributor that, at its location, provides 571 oxygen to a permitted medical oxygen retail establishment that 572 is out of compliance with only the change of location notice 573 requirement under s. 499.834, does not commit a violation of 574 this subsection if the wholesale distributor notifies the 575 department of the transaction no later than the next business 576 day; or 577 (d) Knowingly falsely creates a label for a medical gas or 578 knowingly falsely misrepresents a factual matter contained in a 579 label for a medical gas. 580 (2) A person found guilty of an offense under this section, 581 under the authority of the court convicting and sentencing the 582 person, shall be ordered to forfeit to the state any real or 583 personal property: 584 (a) Used or intended to be used to commit, to facilitate, 585 or to promote the commission of such offense; and 586 (b) Constituting, derived from, or traceable to the gross 587 proceeds that the defendant obtained directly or indirectly as a 588 result of the offense. 589 (3) Property or assets subject to forfeiture under 590 subsection (2) may be seized pursuant to a warrant obtained in 591 the same manner as a search warrant or as otherwise authorized 592 by law, and held until the case against a defendant is 593 adjudicated. Monies ordered forfeited, or proceeds from the sale 594 of other assets ordered forfeited, shall be equitably divided 595 between the department and other agencies involved in the 596 investigation and prosecution that led to the conviction. Other 597 property ordered forfeited after conviction of a defendant may, 598 at the discretion of the investigating agencies, be placed into 599 official use by the department or the agencies involved in the 600 investigation and prosecution that led to the conviction. 601 Section 29. Section 499.93, Florida Statutes, is created to 602 read: 603 499.93 Inspections.— 604 (1) The department may require a facility that engages in 605 the manufacture, retail sale, or wholesale distribution of 606 medical gas to undergo an inspection in accordance with a 607 schedule to be determined by the department, including 608 inspections for initial permitting, permit renewal, and a 609 permitholder’s change of location. The department may recognize 610 a third party to inspect wholesale distributors in this state or 611 other states pursuant to a schedule to be determined by the 612 department. 613 (2) The department may recognize another state’s 614 inspections of a manufacturer or wholesale distributor located 615 in that state if such state’s laws are deemed to be 616 substantially equivalent to the laws of this state by the 617 department. 618 (3) A manufacturing facility of medical gases is exempt 619 from routine inspection by the department if: