Under s. Phar 7.05 (3) and (4), a prescription order may be transferred between pharmacies only one-time. The Pharmacy Examining Board amends its rules to permit an unlicensed number of transfers between pharmacies. For example, a consumer may have a prescription order for medication with five refills that is originally presented and filled at a Milwaukee pharmacy. If the consumer goes on vacation in Door County and finds he or she requires a refill while there, the consumer can have the prescription order “transferred" to a Door County pharmacy for dispensing a refill. However, under the current on-time transfer rule, when the consumer returns to Milwaukee he or she will need a new prescription order for the medication, because the prescription cannot be transferred back to the original pharmacy even though there are refills remaining. The Board believes the rule should be modified to rectify these types of situations.
The current reference to the transfer of an original prescription order is removed and modifies the one-time transfer limitation to permit unlimited transfer with the restriction that the transfer of original prescription order information for the purpose of renewal dispensing of controlled substances is only permitted between two pharmacies on a one-time basis. The controlled substance one-time transfer restriction does not apply where pharmacies have access to a common central processing unit, and approval is received from the Pharmacy Examining Board, and a variance is obtained from the Federal Drug Enforcement Administration.
Text of Rule
SECTION 1. Phar 7.05 (3) (a) (intro.), (c), (5) and (6) (intro.) are amended to read:
Phar 7.05 (3) (a) Except as provided in sub. (5), the transfer of original prescription order information for the purpose of renewal dispensing is permissible between 2 pharmacies on a one-time an unlimited basis pursuant to the following requirements:
(c) The original and transferred prescription order orders shall be maintained for a period of 5 years from the date of the last renewal.
(5) Pharmacies The transfer of original prescription order information for the purpose of renewal dispensing of a controlled substance is permissible between 2 pharmacies only on a one-time basis. However, pharmacies having access to a common central processing unit are not limited in the transfer of original prescription order information pertaining to controlled substances for the purpose of renewal dispensing if prior written approval is received from the board.
(6) A computerized system may be used for maintaining a record, as required under this section, of prescription dispensing and transfers of original prescription order information for the purposes of renewal dispensing, if the system:
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: These rules would increase agency costs due to printing and postage costs for mailings for approximately 6,000 pharmacists. A copy of the rules and a cover letter would need to be mailed and associated with this mailing would be approximately $15,000. This cost to print and mail each rule is estimated at $2.50 multiplied by 6,000. This is a one-time cost.
Initial Regulatory Flexibility Analysis
These proposed rules shall be reviewed by the Department through its Small Business Review Advisory Council to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Stats.
Copies of Rule and Contact Information
Copies of this proposed rule are available without cost upon request to:
Pamela Haack
Dept. of Regulation and Licensing
Office of Administrative Rules
1400 East Washington Avenue, Room 171
P.O. Box 8935
Madison, WI 53708
Telephone (608) 266-0495
Notice of Proposed Rule
Revenue
Notice is hereby given that, pursuant to s. 71.80(1)(c), Stats., and interpreting subch. VII of ch. 77, Stats., and according to the procedure set forth in s. 227.16(2)(e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing unless, within 30 days after publication of this notice on April 1, 2000, it is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rule:
Contact Person
Please contact Mark Wipperfurth at (608) 266-8253, if you have any questions regarding this proposed rule order.
Analysis by the Department of Revenue
Statutory authority: s.71.80(1)(c)
Statutes interpreted: subch. VII of ch. 77
SECTION 1. Tax 2.32 is created, to define the term “gross receipts" as it applies to subch. VII of ch. 77, Stats., relating to the recycling surcharge.
As a result of a nonstatutory provision in 1999 Wis. Act 9, sec. 9143(3d), the department is required to submit proposed rules to define “gross receipts" under subch. VII of ch. 77, Stats., as affected by 1999 Wis. Act 9. The proposed rules are to be submitted to the Legislative Council staff under s. 227.15(1), Stats., no later than February 1, 2000.
Text of Rules
SECTION 1. Tax 2.32 is created to read:
Tax 2.32 Recycling surcharge – gross receipts defined. (1) PURPOSE. This section defines “gross receipts" for purposes of the recycling surcharge under subch. VII of ch. 77, Stats.
Note: For any taxable year, a recycling surcharge is imposed on: (a) individuals, estates, trusts, statutory employes and partnerships that have at least $4,000,000 in gross receipts from a trade or business for the taxable year; (b) corporations and insurers that have at least $4,000,000 in gross receipts from all activities for the taxable year; and (c) individuals, estates, trusts and partnerships engaged in farming that have at least $1,000,000 in gross receipts from farming for the taxable year.
(2) DEFINITIONS. In subch. VII of ch. 77, Stats., and this section:
(a) “Gross receipts from all activities of corporations" means the sum of the following items reportable by corporations other than those listed in pars. (c) and (d):
1. Gross receipts or sales reportable on line 1a of federal form 1120, U. S. corporation income tax return.
2. Gross dividends reportable on line 4 of federal form 1120.
3. Gross interest income reportable on line 5 of federal form 1120.
4. Gross rents reportable on line 6 of federal form 1120.
5. Gross royalties reportable on line 7 of federal form 1120.
6. The gross sales price from the disposition of capital assets and business assets includable in computing the net gain or loss on lines 8 and 9 of federal form 1120.
7. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes.
Note: In this subsection, line numbers of forms refer to the 1999 forms.
(b) “Gross receipts from all activities of exempt organizations taxable as corporations" means the sum of the following items reportable by those entities:
1. Gross receipts or sales reportable on line 1a of federal form 990-T, exempt organization business income tax return.
2. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on lines 4a and 4b of federal form 990-T.
3. Gross rents includable in computing rent income on line 6 of federal form 990-T.
4. Gross income from unrelated debt-financed property includable in computing unrelated debt-financed income on line 7 of federal form 990-T.
5. Gross interest, annuities, royalties and rents from controlled organizations includable in computing those items of income on line 8 of federal form 990-T.
6. Gross investment income includable in computing investment income on line 9 of federal form 990-T.
7. Gross exploited exempt activity income includable in computing that item of income on line 10 of federal form 990-T.
8. Gross advertising income includable in computing advertising income on line 11 of federal form 990-T.
9. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes.
(c) “Gross receipts from all activities of insurance companies" means the sum of the following items reportable by insurance companies:
1. Gross premiums earned reportable on lines 1 and 8 of schedule A on federal form 1120-PC, U. S. property and casualty insurance company income tax return.
2. Gross dividends reportable on line 2 of schedule A, or line 2 of schedule B if applicable, on federal form 1120-PC.
3. Gross interest income reportable on line 3a of schedule A, or line 1a of schedule B if applicable, on federal form 1120-PC.
4. Gross rents reportable on line 4 of schedule A, or line 3 of schedule B if applicable, on federal form 1120-PC.
5. Gross royalties reportable on line 5 of schedule A, or line 4 of schedule B if applicable, on federal form 1120-PC.
6. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on lines 6 and 7 of schedule A, or lines 5 and 7 of schedule B if applicable, on federal form 1120-PC.
7. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes.
(d) “Gross receipts from all activities of tax-option (S) corporations" means the sum of the following items reportable by S corporations:
1. Gross receipts or sales reportable on line 1a of federal form 1120S, U. S. corporation income tax return for an S corporation.
2. Gross rents includable in computing the income from real estate and other rental activities reportable on lines 2 and 3a of schedule K on federal form 1120S.
3. Gross interest income reportable on line 4a of schedule K on federal form 1120S.
4. Gross dividends reportable on line 4b of schedule K on federal form 1120S.
5. Gross royalties includable in computing royalty income reportable on line 4c of schedule K on federal form 1120S.
6. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on line 4 of federal form 1120S and lines 4d, 4e, 4f and 5 of schedule K on federal form 1120S.
7. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes.
(e) “Gross receipts from farming, of individuals, estates, trusts and partnerships engaged in farming" means the sum of the following items reportable by those entities:
1. Gross receipts or sales reportable on lines 1, 4, 5a, 6a, 7a, 8a and 9 of federal schedule F, profit or loss from farming.
2. The gross sales price of farm assets, including livestock, includable in computing ordinary income or loss on federal form 4797, sales of business property.
(f) “Gross receipts of exempt organizations taxable as trusts" means the total receipts or sales from all trade or business activities other than farming, reportable by those entities for federal income tax purposes, before any deduction for returns and allowances or any other business expenses. Gross receipts include any of the following:
1. Gross receipts or sales reportable on line 1a of federal form 990-T, exempt organization business income tax return.
2. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on lines 4a and 4b of federal form 990-T.
3. Gross rents includable in computing rent income on line 6 of federal form 990-T.
4. Gross income from unrelated debt-financed property includable in computing unrelated debt-financed income on line 7 of federal form 990-T.
5. Gross interest, annuities, royalties and rents from controlled organizations includable in computing those items of income on line 8 of federal form 990-T
6. Gross investment income includable in computing investment income on line 9 of federal form 990-T.
7. Gross exploited exempt activity income includable in computing that item of income on line 10 of federal form 990-T.
