CODING: Words stricken are deletions; words underlined are additions.



                                                  SENATE AMENDMENT

    Bill No. CS for SB 1108

    Amendment No. ___   Barcode 444154

                            CHAMBER ACTION
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11  Senator Silver moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 43, between lines 14 and 15,

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16  insert:

17         Section 8.  Paragraph (a) of subsection (1) of section

18  499.012, Florida Statutes, is amended to read:

19         499.012  Wholesale distribution; definitions; permits;

20  general requirements.--

21         (1)  As used in this section, the term:

22         (a)  "Wholesale distribution" means distribution of

23  prescription drugs to persons other than a consumer or

24  patient, but does not include:

25         1.  Any of the following activities, which is not a

26  violation of s. 499.005(21) if such activity is conducted in

27  accordance with s. 499.014:

28         a.  The purchase or other acquisition by a hospital or

29  other health care entity that is a member of a group

30  purchasing organization of a prescription drug for its own use

31  from the group purchasing organization or from other hospitals

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1108

    Amendment No. ___   Barcode 444154





  1  or health care entities that are members of that organization.

  2         b.  The sale, purchase, or trade of a prescription drug

  3  or an offer to sell, purchase, or trade a prescription drug by

  4  a charitable organization described in s. 501(c)(3) of the

  5  Internal Revenue Code of 1986, as amended and revised, to a

  6  nonprofit affiliate of the organization to the extent

  7  otherwise permitted by law.

  8         c.  The sale, purchase, or trade of a prescription drug

  9  or an offer to sell, purchase, or trade a prescription drug

10  among hospitals or other health care entities that are under

11  common control. For purposes of this section, "common control"

12  means the power to direct or cause the direction of the

13  management and policies of a person or an organization,

14  whether by ownership of stock, by voting rights, by contract,

15  or otherwise.

16         d.  The sale, purchase, trade, or other transfer of a

17  prescription drug from or for any federal, state, or local

18  government agency or any entity eligible to purchase

19  prescription drugs at public health services prices pursuant

20  to Pub. L. No. 102-585, s. 602 to a contract provider or its

21  subcontractor for eligible patients of the agency or entity

22  under the following conditions:

23         (I)  The agency or entity must obtain written

24  authorization for the sale, purchase, trade, or other transfer

25  of a prescription drug under this sub-subparagraph from the

26  Secretary of Health or his or her designee.

27         (II)  The contract provider or subcontractor must be

28  authorized by law to administer or dispense prescription

29  drugs.

30         (III)  In the case of a subcontractor, the agency or

31  entity must be a party to and execute the subcontract.

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1108

    Amendment No. ___   Barcode 444154





  1         (IV)  A contract provider or subcontractor must

  2  maintain separate and apart from other prescription drug

  3  inventory any prescription drugs of the agency or entity in

  4  its possession.

  5         (V)  The contract provider and subcontractor must

  6  maintain and produce immediately for inspection all records of

  7  movement or transfer of all the prescription drugs belonging

  8  to the agency or entity, including, but not limited to, the

  9  records of receipt and disposition of prescription drugs. Each

10  contractor and subcontractor dispensing or administering these

11  drugs must maintain and produce records documenting the

12  dispensing or administration. Records that are required to be

13  maintained include, but are not limited to, a perpetual

14  inventory itemizing drugs received and drugs dispensed by

15  prescription number or administered by patient identifier,

16  which must be submitted to the agency or entity quarterly.

17         (VI)  The contract provider or subcontractor may

18  administer or dispense the prescription drugs only to the

19  eligible patients of the agency or entity or must return the

20  prescription drugs for or to the agency or entity. The

21  contract provider or subcontractor must require proof from

22  each person seeking to fill a prescription or obtain treatment

23  that the person is an eligible patient of the agency or entity

24  and must, at a minimum, maintain a copy of this proof as part

25  of the records of the contractor or subcontractor required

26  under sub-sub-subparagraph (V).

27         (VII)  The prescription drugs transferred pursuant to

28  this sub-subparagraph may not be billed to Medicaid.

29         (VII)(VIII)  In addition to the departmental inspection

30  authority set forth in s. 499.051, the establishment of the

31  contract provider and subcontractor and all records pertaining

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1108

    Amendment No. ___   Barcode 444154





  1  to prescription drugs subject to this sub-subparagraph shall

  2  be subject to inspection by the agency or entity.  All records

  3  relating to prescription drugs of a manufacturer under this

  4  sub-subparagraph shall be subject to audit by the manufacturer

  5  of those drugs, without identifying individual patient

  6  information.

  7         2.  Any of the following activities, which is not a

  8  violation of s. 499.005(21) if such activity is conducted in

  9  accordance with rules established by the department:

10         a.  The sale, purchase, or trade of a prescription drug

11  among federal, state, or local government health care entities

12  that are under common control and are authorized to purchase

13  such prescription drug.

14         b.  The sale, purchase, or trade of a prescription drug

15  or an offer to sell, purchase, or trade a prescription drug

16  for emergency medical reasons. For purposes of this

17  sub-subparagraph, the term "emergency medical reasons"

18  includes transfers of prescription drugs by a retail pharmacy

19  to another retail pharmacy to alleviate a temporary shortage.

20         c.  The transfer of a prescription drug acquired by a

21  medical director on behalf of a licensed emergency medical

22  services provider to that emergency medical services provider

23  and its transport vehicles for use in accordance with the

24  provider's license under chapter 401.

25         d.  The revocation of a sale or the return of a

26  prescription drug to the person's prescription drug wholesale

27  supplier.

28         e.  The donation of a prescription drug by a health

29  care entity to a charitable organization that has been granted

30  an exemption under s. 501(c)(3) of the Internal Revenue Code

31  of 1986, as amended, and that is authorized to possess

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1108

    Amendment No. ___   Barcode 444154





  1  prescription drugs.

  2         f.  The transfer of a prescription drug by a person

  3  authorized to purchase or receive prescription drugs to a

  4  person licensed or permitted to handle reverse distributions

  5  or destruction under the laws of the jurisdiction in which the

  6  person handling the reverse distribution or destruction

  7  receives the drug.

  8         3.  The distribution of prescription drug samples by

  9  manufacturers' representatives or distributors'

10  representatives conducted in accordance with s. 499.028.

11         4.  The sale, purchase, or trade of blood and blood

12  components intended for transfusion.  As used in this

13  subparagraph, the term "blood" means whole blood collected

14  from a single donor and processed either for transfusion or

15  further manufacturing, and the term "blood components" means

16  that part of the blood separated by physical or mechanical

17  means.

18         5.  The lawful dispensing of a prescription drug in

19  accordance with chapter 465.

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21  (Redesignate subsequent sections.)

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23

24  ================ T I T L E   A M E N D M E N T ===============

25  And the title is amended as follows:

26         On page 1, line 24, following the semicolon

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28  insert:

29         amending s. 499.012, F.S.; redefining the term

30         "wholesale distribution" with respect to

31         regulation of distribution of prescription

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1108

    Amendment No. ___   Barcode 444154





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