AB902,1,6 1An Act to renumber and amend 227.51 (3); to amend 440.205, 440.22 (1),
2440.22 (2), 448.02 (4), 448.02 (8) (a), 448.02 (9) (intro.), 448.675 (2) and 450.01
3(24); and to create 227.51 (3) (c) of the statutes; relating to: wholesale
4distributors subject to Pharmacy Examining Board requirements and
5enforcement and disciplinary authority of the Department of Safety and
6Professional Services and attached boards and credentialing boards.
Analysis by the Legislative Reference Bureau
This bill exempts third party logistics providers from regulation as prescription
drug wholesale distributors by the Pharmacy Examining Board. The bill also makes
the following changes to the enforcement and disciplinary authority of the
Department of Safety and Professional Services and attached boards and
credentialing boards.
The bill provides that DSPS and its attached boards and credentialing boards
may issue an administrative warning regardless of whether the minor violation for
which the administrative warning is issued is a first occurrence for the credential
holder. Under current law, an administrative warning may be issued only if DSPS
or the relevant board finds that the professional credential holder's violation is a first
occurrence of a minor violation. The bill also allows DSPS and its attached boards
and credentialing boards to summarily limit a credential if certain findings are made
justifying such action. Current law allows agencies to summarily suspend, but not
limit, credentials if such findings are made.

The bill also provides that the interest charged for costs of disciplinary
proceedings is compounded annually. Under current law, DSPS and its attached
boards may charge the credential holder for all or a part of the costs of a disciplinary
proceeding involving that credential holder. Interest upon those costs accrues at the
rate of 12 percent annually. The bill also provides that paralegal and real estate
specialist costs are included in the costs of disciplinary proceedings.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB902,1 1Section 1 . 227.51 (3) of the statutes is renumbered 227.51 (3) (a) and amended
2to read:
AB902,2,73 227.51 (3) (a) Except as otherwise specifically provided by law, no revocation,
4suspension, annulment, or withdrawal of any license is lawful unless the agency
5gives notice by mail to the licensee of facts or conduct which warrant the intended
6action and the licensee is given an opportunity to show compliance with all lawful
7requirements for the retention of the license.
AB902,2,12 8(b) If an agency finds that public health, safety , or welfare imperatively
9requires emergency action and incorporates a finding to that effect in its order, the
10agency may order the
summary suspension of a license may be ordered pending
11proceedings for revocation or other action. Such proceedings shall be promptly
12instituted and determined.
AB902,2 13Section 2 . 227.51 (3) (c) of the statutes is created to read:
AB902,3,214 227.51 (3) (c) If an agency finds that public health, safety, or welfare
15imperatively requires emergency action and incorporates a finding to that effect in
16its order, the agency may order the summary limitation of a license pending
17proceedings for revocation or other action. Such proceedings shall be promptly

1instituted and determined. This paragraph applies only to an agency described in
2s. 440.03 (1).
AB902,3 3Section 3 . 440.205 of the statutes is amended to read:
AB902,4,6 4440.205 Administrative warnings. If the department or a board, examining
5board, or affiliated credentialing board in the department determines during an
6investigation that there is evidence of misconduct by a credential holder, the
7department, board, examining board, or affiliated credentialing board may close the
8investigation by issuing an administrative warning to the credential holder. The
9department or a board, examining board or affiliated credentialing board may issue
10an administrative warning under this section only if the department or board,
11examining board or affiliated credentialing board determines that no further action
12is warranted because the complaint involves a first occurrence of a minor violation
13and the issuance of an administrative warning adequately protects the public by
14putting the credential holder on notice that any subsequent violation may result in
15disciplinary action. If an administrative warning is issued, the credential holder
16may obtain a review of the administrative warning through a personal appearance
17before the department, board, examining board, or affiliated credentialing board
18that issued the administrative warning. Administrative warnings do not constitute
19an adjudication of guilt or the imposition of discipline and may not be used as
20evidence that the credential holder is guilty of the alleged misconduct. However, if
21a subsequent allegation of misconduct by the credential holder is received by the
22department or a board, examining board or affiliated credentialing board in the
23department, the matter relating to the issuance of the administrative warning may
24be reopened and disciplinary proceedings may be commenced on the matter, or the
25administrative warning may be used in any subsequent disciplinary proceeding as

1evidence that the credential holder had actual knowledge that the misconduct that
2was the basis for the administrative warning was contrary to law. The record that
3an administrative warning was issued shall be a public record. The contents of the
4administrative warning shall be private and confidential. The department shall
5promulgate rules establishing uniform procedures for the issuance and use of
6administrative warnings.
AB902,4 7Section 4 . 440.22 (1) of the statutes is amended to read:
AB902,4,168 440.22 (1) In this section, “costs of the proceeding" means the compensation
9and reasonable expenses of hearing examiners and of prosecuting attorneys for the
10department, examining board or, affiliated credentialing board, or other board, a
11reasonable disbursement for the service of process or other papers, amounts actually
12paid out for certified copies of records in any public office, postage, telephoning,
13adverse examinations and depositions and copies, expert witness fees, witness fees
14and expenses, compensation and reasonable expenses of experts, paralegals, real
15estate specialists,
and investigators, and compensation and expenses of a reporter
16for recording and transcribing testimony.
AB902,5 17Section 5 . 440.22 (2) of the statutes is amended to read:
AB902,5,518 440.22 (2) In any disciplinary proceeding against a holder of a credential in
19which the department or an examining board, affiliated credentialing board, or other
20board in the department orders suspension, limitation, or revocation of the
21credential, assesses a forfeiture, or reprimands the holder, the department,
22examining board, affiliated credentialing board, or other board may, in addition to
23imposing discipline, assess all or part of the costs of the proceeding against the
24holder. Costs assessed under this subsection are payable to the department. Interest
25shall accrue on costs assessed under this subsection at a rate of 12 percent per year

1compounded annually beginning on the date that payment of the costs are due as
2ordered by the department, examining board, affiliated credentialing board, or other
3board. Upon the request of the department of safety and professional services, the
4department of justice may commence an action to recover costs assessed under this
5subsection and any accrued interest.
AB902,6 6Section 6 . 448.02 (4) of the statutes, as affected by 2013 Wisconsin Act 240,
7is amended to read:
AB902,5,198 448.02 (4) Suspension or limitation pending hearing. (a) The board may
9summarily suspend or limit any license or certificate granted by the board when the
10board has in its possession evidence establishing probable cause to believe that the
11holder of the license or certificate has violated the provisions of this subchapter and
12that it is necessary to suspend or limit the license or certificate immediately to
13protect the public health, safety, or welfare. The holder of the license or certificate
14shall be granted an opportunity to be heard during the determination of probable
15cause. The board chair and 2 board members designated by the chair or, if the board
16chair is not available, the board vice-chair and 2 board members designated by the
17vice-chair, shall exercise the authority granted by this paragraph to suspend
18summarily suspend or limit a license or certificate in the manner provided under par.
19(b).
AB902,6,1120 (b) An order of summary suspension or limitation shall be served upon the
21holder of the license or certificate in the manner provided in s. 801.11 for service of
22summons. The order of summary suspension or limitation shall be effective upon
23service or upon actual notice of the summary suspension or limitation given to the
24holder of the license or certificate or to the attorney of the license or certificate holder,
25whichever is sooner. A notice of hearing commencing a disciplinary proceeding shall

1be issued no more than 10 days following the issuance of the order of summary
2suspension or limitation. The order of summary suspension or limitation remains
3in effect until the effective date of a final decision and order in the disciplinary
4proceeding against the holder or until the order of summary suspension or limitation
5is discontinued by the board following a hearing to show cause. The holder of the
6license or certificate shall have the right to request a hearing to show cause why the
7order of summary suspension or limitation should not be continued and the order of
8summary suspension or limitation shall notify the holder of the license or certificate
9of that right. If a hearing to show cause is requested by the holder of the license or
10certificate, the hearing shall be scheduled on a date within 20 days of receipt by the
11board of the request for the hearing to show cause.
AB902,7 12Section 7 . 448.02 (8) (a) of the statutes, as affected by 2013 Wisconsin Act 240,
13is amended to read:
AB902,7,214 448.02 (8) (a) After an investigation by the board under sub. (3) (a) or by the
15department under s. 440.03 (3m) or (5), the board may issue a private and
16confidential administrative warning to a holder of a license or certificate if the board
17determines that there is evidence of misconduct by him or her. The board may issue
18an administrative warning under this paragraph only if the board determines that
19no further action is warranted because the matter involves a first occurrence of
20minor misconduct and the issuance of an administrative warning adequately
21protects the public by putting the holder of the license or certificate on notice that any
22subsequent misconduct may result in disciplinary action. The board shall review the
23determination if the holder of the license or certificate makes a personal appearance
24before the board. Following the review, the board may affirm, rescind or modify the
25administrative warning. A holder of a license or certificate may seek judicial review

1under ch. 227 of an affirmation or modification of an administrative warning by the
2board.
AB902,8 3Section 8 . 448.02 (9) (intro.) of the statutes is amended to read:
AB902,7,94 448.02 (9) Judicial review. (intro.) No injunction, temporary injunction, stay,
5restraining order or other order may be issued by a court in any proceeding for review
6that suspends or stays an order of the board to discipline a physician under sub. (3)
7(c) or to suspend or limit a physician's license under sub. (4), except upon application
8to the court and a determination by the court that all of the following conditions are
9met:
AB902,9 10Section 9 . 448.675 (2) of the statutes is amended to read:
AB902,8,311 448.675 (2) Suspension or limitation pending hearing. The affiliated
12credentialing board may summarily suspend or limit a license granted by the
13affiliated credentialing board for a period not to exceed 30 days pending hearing if
14the affiliated credentialing board has in its possession evidence establishing
15probable cause to believe that the licensee has violated the provisions of this
16subchapter and that it is necessary to suspend or limit the license immediately to
17protect the public health, safety or welfare. The licensee shall be granted an
18opportunity to be heard during the determination of whether or not probable cause
19exists. The affiliated credentialing board may designate any of its officers to exercise
20the authority granted by this subsection to suspend summarily suspend or limit a
21license, for a period not exceeding 72 hours. If a license has been summarily
22suspended or limited by the affiliated credentialing board or any of its officers, the
23affiliated credentialing board may, while the hearing is in progress, extend the initial
24period of suspension or limitation for not more than an additional 30 days. If the
25licensee has caused a delay in the hearing process, the affiliated credentialing board

1may subsequently suspend or limit the license from the time the hearing is
2commenced until a final decision is issued or may delegate such authority to the
3hearing examiner.
AB902,10 4Section 10 . 450.01 (24) of the statutes is amended to read:
AB902,8,125 450.01 (24) “Wholesale distributor" means a person engaged in the wholesale
6distribution of prescription drugs, including manufacturers, repackagers, own-label
7distributors, private label distributors, jobbers, brokers, warehouses, including
8manufacturers' and distributors' warehouses, manufacturers' exclusive
9distributors, manufacturers' authorized distributors of record, prescription drug
10wholesalers and distributors, independent wholesale prescription drug traders, 3rd
11party logistics providers,
retail pharmacies that conduct wholesale distribution, and
12chain pharmacy warehouses that conduct wholesale distribution.
AB902,8,1313 (End)
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