Amendment ASA1-SB40

SB40-ASA1, s. 3626d Section 3626d. 450.01 (2m) of the statutes is created to read:

SB40-ASA1,1459,11 450.01 (2m) "Colicensed" means, with respect to a partner or product, that 2 or more parties have the right to engage in marketing or manufacturing of a product consistent with the federal food and drug administration's implementation of the federal prescription drug marketing act.

SB40-ASA1, s. 3526e Section 3526e. 450.01 (9m) of the statutes is created to read:

SB40-ASA1,1459,16 450.01 (9m) "Drop shipment" means a sale of a prescription drug to a wholesale distributor by the manufacturer of the drug, by the manufacturer's colicensed product partner, by the manufacturer's 3rd-party logistics provider, or by the manufacturer's exclusive distributor, to which all of the following apply:

SB40-ASA1,1459,18 (a) The wholesale distributor or chain pharmacy warehouse takes title to, but not physical possession of, the drug.

SB40-ASA1,1459,20 (b) The wholesale distributor invoices a pharmacy, a chain pharmacy warehouse, or a person authorized to dispense or administer the drug to a patient.

SB40-ASA1,1459,24 (c) The pharmacy, chain pharmacy warehouse, or person authorized to dispense or administer the drug receives delivery of the drug directly from the manufacturer, the manufacturer's 3rd-party logistics provider, or the manufacturer's exclusive distributor.

SB40-ASA1, s. 3526f Section 3526f. 450.01 (11m) of the statutes is created to read:

SB40-ASA1,1460,2 450.01 (11m) "Facility" means a location where a wholesale distributor stores, handles, repackages, or offers for sale prescription drugs.

SB40-ASA1, s. 3526g Section 3526g. 450.01 (11r) of the statutes is created to read:

SB40-ASA1,1460,7 450.01 (11r) "Intracompany sales" means any transaction or transfer between any division, subsidiary, parent, or affiliated or related company under common ownership and control of a corporate entity or any transaction or transfer between colicensees of a colicensed product.

SB40-ASA1, s. 3526h Section 3526h. 450.01 (12) of the statutes is amended to read:

SB40-ASA1,1460,13 450.01 (12) "Manufacturer" means a person licensed by the board under s. 450.07 (1) or approved by the federal food and drug administration to engage in the manufacture of drugs or devices, consistent with the definition of "manufacturer" under the federal food and drug administration's regulations and interpreted guidances implementing the federal prescription drug marketing act.

SB40-ASA1, s. 3526i Section 3526i. 450.01 (12m) of the statutes is created to read:

SB40-ASA1,1460,19 450.01 (12m) "Manufacturer's exclusive distributor" means a person that contracts with a manufacturer to provide or coordinate warehousing, distribution, or other services on behalf of the manufacturer and who takes title to the manufacturer's prescription drug but who does not have general responsibility to direct the sale or disposition of the drug.

SB40-ASA1, s. 3526j Section 3526j. 450.01 (13r) of the statutes is created to read:

SB40-ASA1,1461,2 450.01 (13r) (a) "Normal distribution channel" means a chain of custody for a prescription drug that runs, directly or by drop shipment, from the manufacturer of a drug, from the manufacturer to the manufacturer's colicensed partner, from the manufacturer to the manufacturer's 3rd-party logistics provider, or from the manufacturer to the manufacturer's exclusive distributor, and continues as described in any of the following:

SB40-ASA1,1461,4 1. To a pharmacy or to a person authorized to dispense or administer a drug to a patient.

SB40-ASA1,1461,6 2. To an authorized distributor of record, and then to a pharmacy or to a person authorized to dispense or administer a drug to a patient.

SB40-ASA1,1461,8 3. To an authorized distributor of record, then to one other authorized distributor of record, then to an office-based practitioner.

SB40-ASA1,1461,13 (b) For purposes of this subsection, a distribution of a prescription drug to a warehouse or to another entity that redistributes the drug by intracompany sale to a pharmacy or to another person authorized to dispense or administer the drug constitutes a distribution to the pharmacy or to the person authorized to dispense or administer the drug.

SB40-ASA1, s. 3526k Section 3526k. 450.01 (14m) of the statutes is created to read:

SB40-ASA1,1461,16 450.01 (14m) "Pedigree" means a document or electronic file containing information that records each distribution of a prescription drug.

SB40-ASA1, s. 3526L Section 3526L. 450.01 (21e) of the statutes is created to read:

SB40-ASA1,1461,20 450.01 (21e) "Repackage" means to repack or otherwise change the container, wrapper, or label of a prescription drug, except that "repackage" does not include any of the following:

SB40-ASA1,1461,22 (a) An action by a pharmacist with respect to a prescription drug that the pharmacist is dispensing.

SB40-ASA1,1462,2 (b) An action by a pharmacist who receives a prescription drug or device that the pharmacist dispensed to a patient, if, after altering the packaging or labeling of the prescription drug or device, the pharmacist returns the prescription drug or device to the patient.

SB40-ASA1, s. 3526m Section 3526m. 450.01 (21m) of the statutes is created to read:

SB40-ASA1,1462,4 450.01 (21m) "Repackager" means a person that repackages.

SB40-ASA1, s. 3526n Section 3526n. 450.01 (21s) of the statutes is created to read:

SB40-ASA1,1462,10 450.01 (21s) "Third-party logistics provider" means a person that contracts with a prescription drug manufacturer to provide or coordinate warehousing, distribution, or other services on behalf of the manufacturer but that does not take title to the manufacturer's prescription drug or have general responsibility to direct the prescription drug's sale or disposition.

SB40-ASA1, s. 3526o Section 3526o. 450.01 (23) of the statutes is created to read:

SB40-ASA1,1462,14 450.01 (23) "Wholesale distribution" means distribution of a prescription drug to a person other than a consumer or patient, but does not include any of the following:

SB40-ASA1,1462,15 (a) Intracompany sales of prescription drugs.

SB40-ASA1,1462,18 (b) The sale, purchase, distribution, trade, or transfer of a prescription drug or offer to sell, purchase, distribute, trade, or transfer a prescription drug for emergency medical reasons.

SB40-ASA1,1462,20 (c) The distribution of prescription drug samples, if the distribution is permitted under 21 CFR 353 (d).

SB40-ASA1,1462,22 (d) Drug returns, when conducted by a hospital, health care entity, or charitable institution as provided in 21 CFR 203.23.

SB40-ASA1,1462,25 (e) The sale of minimal quantities, as defined by the board in an administrative rule, of prescription drugs by retail pharmacies to licensed practitioners for office use.

SB40-ASA1,1463,2 (f) The sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug pursuant to a prescription.

SB40-ASA1,1463,5 (g) The sale, transfer, merger, or consolidation of all or part of the business of a pharmacy from or with another pharmacy, whether accomplished as a purchase and sale of stock or business assets.

SB40-ASA1,1463,11 (h) The sale, purchase, distribution, trade, or transfer of a prescription drug from one authorized distributor of record to one additional authorized distributor of record, if the manufacturer states in writing to the receiving authorized distributor of record that the manufacturer is unable to supply the drug and the supplying authorized distributor of record states in writing that the drug has previously been exclusively in the normal distribution channel.

SB40-ASA1,1463,15 (i) The delivery of, or offer to deliver, a prescription drug by a common carrier solely in the common carrier's usual course of business of transporting prescription drugs, if the common carrier does not store, warehouse, or take legal ownership of the drug.

SB40-ASA1,1463,17 (j) A transaction excluded from the definition of "wholesale distribution" under 21 CFR 203.3 (cc).

SB40-ASA1,1463,18 (k) The donation or distribution of a prescription drug under s. 255.056.

SB40-ASA1, s. 3526p Section 3526p. 450.01 (24) of the statutes is created to read:

SB40-ASA1,1464,2 450.01 (24) "Wholesale distributor" means a person engaged in the wholesale distribution of prescription drugs, including manufacturers, repackagers, own-label distributors, private label distributors, jobbers, brokers, warehouses, including manufacturers' and distributors' warehouses, manufacturers' exclusive distributors, manufacturers' authorized distributors of record, prescription drug wholesalers and distributors, independent wholesale prescription drug traders, 3rd-party logistics providers, retail pharmacies that conduct wholesale distribution, and chain pharmacy warehouses that conduct wholesale distribution.

SB40-ASA1, s. 3530a Section 3530a. 450.07 (title) of the statutes is amended to read:

SB40-ASA1,1464,4 450.07 (title) Manufacturers and distributors; licensure.

SB40-ASA1, s. 3530b Section 3530b. 450.07 (2) of the statutes is repealed.

SB40-ASA1, s. 3530c Section 3530c. 450.07 (3) of the statutes is repealed.

SB40-ASA1, s. 3530d Section 3530d. 450.07 (4) (c) of the statutes is created to read:

SB40-ASA1,1464,10 450.07 (4) (c) The rules adopted by the board under par. (b) shall require a manufacturer to maintain and to update at least once per month a list of the manufacturer's authorized distributors of record.

SB40-ASA1, s. 3530e Section 3530e. 450.071 of the statutes is created to read:

SB40-ASA1,1464,19 450.071 Wholesale distributors; licensure. (1) No person may engage in the wholesale distribution of a prescription drug in this state without obtaining a license from the board for each facility from which the person distributes prescription drugs. The board shall exempt a manufacturer that distributes prescription drugs or devises manufactured by the manufacturer from licensing and other requirements under this section to the extent the license or requirement is not required under federal law or regulation, unless the board determines that it is necessary to apply a requirement to a manufacturer.

SB40-ASA1,1464,21 (2) An applicant shall submit a form provided by the board showing all of the following and swear or affirm the truthfulness of each item in the application:

SB40-ASA1,1464,22 (a) The name, business address, and telephone number of the applicant.

SB40-ASA1,1464,23 (b) All trade or business names used by the applicant.

SB40-ASA1,1465,3 (c) Names, addresses, and telephone numbers of contact persons for all facilities used by the applicant for the storage, handling, and distribution of prescription drugs.

SB40-ASA1,1465,4 (d) The type of ownership or operation for the applicant's business.

SB40-ASA1,1465,6 (e) If the applicant's wholesale distribution business is a partnership, the name of each partner and the name of the partnership.

SB40-ASA1,1465,9 (f) If the applicant's wholesale distribution business is a corporation, the name of each corporate officer and director, the name of the corporation, and the state of incorporation.

SB40-ASA1,1465,11 (g) If the applicant's wholesale distribution business is a sole proprietorship, the name of the sole proprietor and the name of the business entity.

SB40-ASA1,1465,13 (h) A list of all licenses and permits issued to the applicant by any other state that authorizes the applicant to purchase or possess prescription drugs.

SB40-ASA1,1465,14 (i) The name, address, and telephone number of a designated representative.

SB40-ASA1,1465,16 (j) For the person listed in par. (i), a personal information statement that contains all of the following:

SB40-ASA1,1465,17 1. The person's date and place of birth.

SB40-ASA1,1465,19 2. The person's places of residence for the 7-year period immediately preceding the date of the application.

SB40-ASA1,1465,21 3. The person's occupations, positions of employment, and offices held during the 7-year period immediately preceding the date of the application.

SB40-ASA1,1465,23 4. The name and addresses for each business, corporation, or other entity listed in subd. 3.

SB40-ASA1,1466,2 5. A statement indicating whether the person has been, during the 7-year period immediately preceding the date of the application, the subject of any proceeding for the revocation of any business or professional license and the disposition of the proceeding.

SB40-ASA1,1466,7 6. A statement indicating whether the person has been, during the 7-year period immediately preceding the date of the application, enjoined by a court, either temporarily or permanently, from possessing, controlling, or distributing any prescription drug, and a description of the circumstances surrounding the injunction.

SB40-ASA1,1466,12 7. A description of any involvement by the person during the past 7 years with any business, including investments other than the ownership of stock in a publicly traded company or mutual fund, that manufactured, administered, prescribed, distributed, or stored pharmaceutical products or drugs, and a list of any lawsuits in which such a business was named as a party.

SB40-ASA1,1466,18 8. A description of any misdemeanor or felony criminal offense of which the person was, as an adult, found guilty, whether adjudication of guilt was withheld or the person pleaded guilty or no contest. If the person is appealing a criminal conviction, the application shall include a copy of the notice of appeal, and the applicant shall submit a copy of the final disposition of the appeal not more than 15 days after a final disposition is reached.

SB40-ASA1,1466,20 9. A photograph of the person taken within the 12-month period immediately preceding the date of the application.

SB40-ASA1,1467,2 (k) A statement that each facility used by the applicant for the wholesale distribution of prescription drugs has been inspected in the 3-year period immediately preceding the date of the application by the board, a pharmacy examining board of another state, the National Association of Boards of Pharmacy, or another accrediting body recognized by the board, with the date of each such inspection.

SB40-ASA1,1467,4 (3) The board shall grant a license to the applicant to engage in the wholesale distribution of prescription drugs if all of the following apply:

SB40-ASA1,1467,6 (a) The applicant pays the fee under s. 440.05 (1) (a), except that before June 1, 2010, the amount of the initial fee is $350.

SB40-ASA1,1467,8 (b) The inspections conducted pursuant to sub. (2) (k) satisfy requirements adopted by the board for wholesale distribution facilities.

SB40-ASA1,1467,10 (c) All of the following apply to each person identified by the applicant as a designated representative:

SB40-ASA1,1467,11 1. The person is at least 21 years old.

SB40-ASA1,1467,14 2. The person has been employed full time for at least 3 years in a pharmacy or with a wholesale prescription drug distributor in a capacity related to the dispensing and distribution of, and record keeping related to, prescription drugs.

SB40-ASA1,1467,16 3. The person is employed by the applicant full time in a managerial level position.

SB40-ASA1,1467,22 4. The person is physically present at the wholesale prescription drug distributor's facility during regular business hours and is involved in and aware of the daily operation of the wholesale prescription drug distributor. This subdivision does not preclude the designated representative from taking authorized sick leave and vacation time or from being absent from the facility for other authorized business or personal purposes.

SB40-ASA1,1467,24 5. The person is actively involved in and aware of the daily operations of the wholesale distributor.

SB40-ASA1,1468,4 6. The person is a designated representative for only one applicant at any given time. This subdivision does not apply if more than one wholesale distributor is located at the facility and the wholesale distributors located at the facility are members of an affiliated group.

SB40-ASA1,1468,7 7. The person has not been convicted of violating any federal, state, or local law relating to wholesale or retail prescription drug distribution or distribution of a controlled substance.

SB40-ASA1,1468,8 8. The person has not been convicted of a felony.

SB40-ASA1,1468,15 9. The person submits to the department 2 fingerprint cards, each bearing a complete set of the applicant's fingerprints. The department of justice shall provide for the submission of the fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the applicant and obtaining the applicant's criminal arrest and conviction record. This subdivision does not apply to a person accredited by the national association of boards of pharmacy's verified-accredited wholesale distributor program.

SB40-ASA1,1468,21 (3m) Notwithstanding subs. (2) and (3), the board may grant a license to engage in the wholesale distribution of prescription drugs to a person who is domiciled in another state and is licensed to engage in the wholesale distribution of prescription drugs in another state, if the board determines that the standards for licensure in the state in which the person is licensed are at least as stringent as the standards for licensure under this section.