Florida Senate - 2018 SB 1508 By Senator Young 18-00337B-18 20181508__ 1 A bill to be entitled 2 An act relating to the use of stem cells in a clinic 3 setting; creating ss. 458.352 and 459.027, F.S.; 4 defining the terms “clinic” and “stem cell”; requiring 5 a physician or osteopathic physician or a clinic owner 6 to register a clinic with the Department of Health if 7 the clinic meets certain criteria; specifying that 8 each clinic location must be registered separately and 9 must designate a physician to be responsible for 10 complying with certain requirements; requiring the 11 clinic to notify the department of a change of 12 designated physician within a specified timeframe; 13 providing that summary suspension of a clinic’s 14 registration certificate may occur if a designated 15 physician or designated osteopathic physician is not 16 practicing at the clinic location; prohibiting a 17 physician from practicing medicine or an osteopathic 18 physician from practicing osteopathic medicine in a 19 certain clinic that is not registered with the 20 department; specifying certain disciplinary action for 21 violations; requiring a physician or osteopathic 22 physician to adhere to specified regulations in the 23 performance of any procedure using or purporting to 24 use stem cells or products containing stem cells; 25 requiring the department to adopt rules to administer 26 registration and an annual inspection of registered 27 clinics; specifying that a person or entity seeking to 28 register and operate a clinic must pay all costs of 29 registration and inspection; authorizing the 30 department to impose fines on a physician or 31 osteopathic physician or clinic that violates 32 specified requirements; requiring the Board of 33 Medicine and the Board of Osteopathic Medicine, 34 respectively, to adopt certain rules and guidelines; 35 authorizing the department to impose certain fines; 36 requiring the department to consider certain factors 37 in determining the imposition of such a fine; 38 authorizing the department to impose a fine and revoke 39 or deny a clinic registration in certain 40 circumstances; requiring the imposition of certain 41 fines for specified violations of clinic registration 42 requirements; providing an effective date. 43 44 Be It Enacted by the Legislature of the State of Florida: 45 46 Section 1. Section 458.352, Florida Statutes, is created to 47 read: 48 458.352 Use of stem cells in a clinic setting.— 49 (1) DEFINITIONS.-As used in this section, the term: 50 (a) “Clinic” means a publicly or privately owned facility 51 or office that: 52 1. Advertises for any service that uses, or purports to 53 use, stem cells or any product containing stem cells that is 54 intended to diagnose, cure, mitigate, treat, provide therapy 55 for, or prevent an injury or a disease; or 56 2. Performs any procedure that is intended to diagnose, 57 cure, mitigate, treat, provide therapy for, or prevent an injury 58 or a disease that uses, or purports to use, stem cells or any 59 product containing stem cells which has not been approved by the 60 United States Food and Drug Administration or is not the subject 61 of a clinical trial approved by the United States Food and Drug 62 Administration. 63 (b) “Stem cell” means an allogenic or autologous cell that 64 is altered or processed to become undifferentiated, losing its 65 original structural function, so that it can become 66 differentiated into a specialized cell type. The term does not 67 include cells that are only rinsed, cleaned, or sized and remain 68 differentiated. 69 (2) REGISTRATION.— 70 (a) A physician or clinic owner who advertises, uses, or 71 purports to use stem cells or products containing stem cells in 72 a clinic must register the clinic with the department, unless 73 any of the following apply: 74 1. The clinic is a facility licensed under chapter 395; 75 2. The clinic is wholly owned and operated by one or more 76 physicians licensed under this chapter or chapter 459; 77 3. The clinic is affiliated with an accredited medical 78 school that provides training to medical students, residents, or 79 fellows; or 80 4. The clinic solely performs one or more of the following 81 procedures: 82 a. The collection of umbilical cord blood cells for blood 83 banking; 84 b. The collection, transfer, or insemination of oocytes; or 85 c. The injection or infusion of platelet-rich plasma. 86 (b) Each clinic location must be registered separately. 87 (c) As a part of registration, a clinic must designate a 88 physician who is responsible for complying with all requirements 89 related to registration and operation of the clinic in 90 compliance with this section. Within 10 days after termination 91 of a designated physician, the clinic must notify the department 92 of the identity of another designated physician for that clinic. 93 A designated physician must have a full, active, and 94 unencumbered license issued under this chapter or chapter 459 95 and must practice at the clinic location for which he or she has 96 assumed responsibility. Failing to have a licensed designated 97 physician practicing at the location of the registered clinic 98 may be the basis for a summary suspension of the clinic 99 registration certificate as described in s. 456.073(8) for a 100 license or in s. 120.60(6). 101 (3) PHYSICIAN RESPONSIBILITIES.— 102 (a) A physician may not practice medicine in a clinic that 103 is not registered with the department as required by this 104 section or s. 459.027. A physician who violates this paragraph 105 is subject to disciplinary action by his or her appropriate 106 medical regulatory board. 107 (b) In the performance of any procedure using or purporting 108 to use stem cells or products containing stem cells, the 109 physician shall adhere to the applicable current good 110 manufacturing practices for the collection, removal, processing, 111 implantation, and transfer of stem cells, or products containing 112 stem cells, pursuant to the Federal Food, Drug, and Cosmetic 113 Act, 21 U.S.C. ss. 301 et seq.; 52 Stat. 1040 et seq.; and 21 114 C.F.R. 1271, Human Cells, Tissues, and Cellular and Tissue-Based 115 Products. 116 (4) RULEMAKING.— 117 (a) The department shall adopt rules necessary to 118 administer registration and an annual inspection of registered 119 clinics. The person or entity seeking to register and operate 120 the clinic must pay all costs of registration and inspection. 121 (b) The board shall adopt rules regarding advertising, 122 adverse incident reporting, and informed consent guidelines for 123 the use or purported use of stem cells or products containing 124 stem cells in a clinic required to register under this section. 125 (5) PENALTIES; ENFORCEMENT.— 126 (a) The department may impose an administrative fine on a 127 physician or a clinic of up to $5,000 per violation for 128 violating the requirements of this section; chapter 499, the 129 Florida Drug and Cosmetic Act; the Federal Food, Drug, and 130 Cosmetic Act, 21 U.S.C. ss. 301 et seq.; 52 Stat. 1040 et seq.; 131 21 C.F.R. 1271, Human Cells, Tissues, and Cellular and Tissue 132 Based Products; or the rules of the department. In determining 133 whether a penalty is to be imposed, and in fixing the amount of 134 the fine, the department shall consider the following factors: 135 1. The gravity of the violation, including the probability 136 that patient deception, or serious physical or emotional harm, 137 has resulted or could have resulted; the severity of the 138 deception, harm, or potential harm; and the extent to which the 139 provisions of the applicable laws or rules were violated. 140 2. What actions, if any, the physician, clinic owner, or 141 designated physician took to correct the violations. 142 3. Whether there were any previous violations at the 143 clinic. 144 4. The financial benefits that the physician, clinic, or 145 designated physician derived from committing or continuing to 146 commit the violation. 147 (b) Each day a violation continues after the date fixed for 148 termination of the violation as ordered by the department 149 constitutes an additional, separate, and distinct violation. 150 (c) The department may impose a fine and, in the case of an 151 owner-operated clinic, revoke or deny a clinic registration if 152 the clinic’s designated physician knowingly misrepresents 153 actions taken to correct a violation. 154 (d) A physician, clinic, or designated physician that 155 concurrently operates an unregistered clinic is subject to an 156 administrative fine of $5,000 per day for each clinic location. 157 (e) If the physician or owner of a clinic that is required 158 to register fails to apply to register upon a change of 159 ownership and operates the clinic under the new ownership, the 160 new owner is also subject to a fine of $5,000 per day for each 161 location. 162 Section 2. Section 459.027, Florida Statutes, is created to 163 read: 164 459.027 Use of stem cells in clinic setting.— 165 (1) DEFINITIONS.-As used in this section, the term: 166 (a) “Clinic” means a publicly or privately owned facility 167 or office that: 168 1. Advertises for any service that uses, or purports to 169 use, stem cells or any product containing stem cells that is 170 intended to diagnose, cure, mitigate, treat, provide therapy 171 for, or prevent an injury or a disease; or 172 2. Performs any procedure that is intended to diagnose, 173 cure, mitigate, treat, provide therapy for, or prevent an injury 174 or a disease that uses, or purports to use, stem cells or any 175 product containing stem cells which has not been approved by the 176 United States Food and Drug Administration or is not the subject 177 of a clinical trial approved by the United States Food and Drug 178 Administration. 179 (b) “Stem cell” means an allogenic or autologous cell that 180 is altered or processed to become undifferentiated, losing its 181 original structural function, so that it can become 182 differentiated into a specialized cell type. The term does not 183 include cells that are only rinsed, cleaned, or sized and remain 184 differentiated. 185 (2) REGISTRATION.— 186 (a) An osteopathic physician or clinic owner who 187 advertises, uses, or purports to use stem cells or products 188 containing stem cells in a clinic must register the clinic with 189 the department, unless any of the following apply: 190 1. The clinic is a facility licensed under chapter 395; 191 2. The clinic is wholly owned and operated by one or more 192 physicians licensed under this chapter or chapter 458; 193 3. The clinic is affiliated with an accredited medical 194 school that provides training to medical students, residents, or 195 fellows; or 196 4. The clinic solely performs one or more of the following 197 procedures: 198 a. The collection of umbilical cord blood cells for blood 199 banking; 200 b. The collection, transfer, or insemination of oocytes; or 201 c. The injection or infusion of platelet-rich plasma. 202 (b) Each clinic location must be registered separately. 203 (c) As a part of registration, a clinic must designate a 204 physician who is responsible for complying with all requirements 205 related to registration and operation of the clinic in 206 compliance with this section. Within 10 days after termination 207 of a designated physician, the clinic must notify the department 208 of the identity of another designated physician for that clinic. 209 A designated physician must have a full, active, and 210 unencumbered license issued under this chapter or chapter 458 211 and must practice at the clinic location for which he or she has 212 assumed responsibility. Failing to have a licensed designated 213 physician practicing at the location of the registered clinic 214 may be the basis for a summary suspension of the clinic 215 registration certificate as described in s. 456.073(8) for a 216 license or in s. 120.60(6). 217 (3) PHYSICIAN RESPONSIBILITIES.— 218 (a) An osteopathic physician may not practice osteopathic 219 medicine in a clinic that is not registered with the department 220 as required by this section or s. 458.352. An osteopathic 221 physician who violates this paragraph is subject to disciplinary 222 action by his or her appropriate medical regulatory board. 223 (b) In the performance of any procedure using or purporting 224 to use stem cells or products containing stem cells, the 225 osteopathic physician shall adhere to the applicable current 226 good manufacturing practices for the collection, removal, 227 processing, implantation, and transfer of stem cells, or 228 products containing stem cells, pursuant to the Federal Food, 229 Drug, and Cosmetic Act, 21 U.S.C. ss. 301 et seq.; 52 Stat. 1040 230 et seq.; and 21 C.F.R. 1271, Human Cells, Tissues, and Cellular 231 and Tissue-Based Products. 232 (4) RULEMAKING.— 233 (a) The department shall adopt rules necessary to 234 administer registration and an annual inspection of registered 235 clinics. The person or entity seeking to register and operate 236 the clinic must pay all costs of registration and inspection. 237 (b) The board shall adopt rules regarding advertising, 238 adverse incident reporting, and informed consent guidelines for 239 the use or purported use of stem cells or products containing 240 stem cells in a clinic required to register under this section. 241 (5) PENALTIES; ENFORCEMENT.— 242 (a) The department may impose an administrative fine on an 243 osteopathic physician or a clinic of up to $5,000 per violation 244 for violating the requirements of this section; chapter 499, the 245 Florida Drug and Cosmetic Act; the Federal Food, Drug, and 246 Cosmetic Act, 21 U.S.C. ss. 301 et seq.; 52 Stat. 1040 et seq.; 247 21 C.F.R. 1271, Human Cells, Tissues, and Cellular and Tissue 248 Based Products; or the rules of the department. In determining 249 whether a penalty is to be imposed, and in fixing the amount of 250 the fine, the department shall consider the following factors: 251 1. The gravity of the violation, including the probability 252 that patient deception, or serious physical or emotional harm, 253 has resulted or could have resulted; the severity of the 254 deception, harm, or potential harm; and the extent to which the 255 provisions of the applicable laws or rules were violated. 256 2. What actions, if any, the osteopathic physician, clinic 257 owner, or designated physician took to correct the violations. 258 3. Whether there were any previous violations at the 259 clinic. 260 4. The financial benefits that the osteopathic physician, 261 clinic, or designated physician derived from committing or 262 continuing to commit the violation. 263 (b) Each day a violation continues after the date fixed for 264 termination of the violation as ordered by the department 265 constitutes an additional, separate, and distinct violation. 266 (c) The department may impose a fine and, in the case of an 267 owner-operated clinic, revoke or deny a clinic registration if 268 the clinic’s designated physician knowingly misrepresents 269 actions taken to correct a violation. 270 (d) An osteopathic physician, clinic, or designated 271 physician that concurrently operates an unregistered clinic is 272 subject to an administrative fine of $5,000 per day for each 273 clinic location. 274 (e) If the osteopathic physician or owner of a clinic that 275 is required to register fails to apply to register upon a change 276 of ownership and operates the clinic under the new ownership, 277 the new owner is also subject to a fine of $5,000 per day for 278 each location. 279 Section 3. This act shall take effect July 1, 2018.