Florida Senate - 2012                             CS for SB 1006
       
       
       
       By the Committee on Health Regulation; and Senator Latvala
       
       
       
       
       588-03799-12                                          20121006c1
    1                        A bill to be entitled                      
    2         An act relating to health care; creating s. 383.146,
    3         F.S.; providing definitions; providing requirements
    4         for screening newborns for critical congenital heart
    5         disease; providing an exception; requiring that the
    6         physician, midwife, or other person attending the
    7         newborn maintain a record if the screening has not
    8         been performed and attach a written objection signed
    9         by the parent or guardian; requiring appropriate
   10         documentation of the screening completion in the
   11         medical record; requiring that each hospital and each
   12         licensed birth center designate a lead physician and a
   13         licensed health care provider, respectively, to
   14         provide programmatic oversight for the screening;
   15         requiring that the screening for critical congenital
   16         heart disease be conducted on all newborns in
   17         hospitals and birth centers in this state; authorizing
   18         the Department of Health to adopt rules to administer
   19         the screening program; providing powers and duties of
   20         the department; amending s. 499.003, F.S.; revising
   21         the definitions of the terms “distribute” or
   22         “distribution,” “drug,” “establishment,” “prescription
   23         drug,” and “wholesale distribution”; amending s.
   24         499.01, F.S.; deleting provisions relating to an
   25         exemption from nonresident prescription drug
   26         manufacturer permit requirements; deleting provisions
   27         relating to an exemption from out-of-state
   28         prescription drug wholesale distributor permit
   29         requirements for intracompany sale or transfer of
   30         prescription drugs; authorizing certain business
   31         entities to pay for prescription drugs obtained by
   32         practitioners licensed under ch. 466, F.S.; providing
   33         an exemption from permit requirements for the
   34         distribution into this state of prescription drug
   35         active pharmaceutical ingredients for incorporation
   36         into prescription drugs in finished dosage form;
   37         requiring a distributor claiming such exemption to
   38         maintain a valid license, permit, or registration in
   39         the state from which the prescription drug was
   40         distributed; requiring compliance with certain
   41         recordkeeping requirements; exempting compliance with
   42         pedigree paper requirements; providing an exemption
   43         from permit requirements for distribution into this
   44         state of limited quantities of a prescription drug
   45         that has not been repackaged for research and
   46         development or to a holder of a letter of exemption
   47         issued by the Department of Business and Professional
   48         Regulation for research, teaching, or testing;
   49         granting the department authority to define the term
   50         “limited quantities” by rule and limit therein the
   51         number of transactions and amount of prescription
   52         drugs distributed into the state; requiring a
   53         distributor claiming such exemption to maintain a
   54         valid license, permit, or registration in the state
   55         from which the prescription drug was distributed;
   56         requiring all purchasers and recipients of such
   57         prescription drugs to ensure the products are not
   58         resold or used on humans except in lawful clinical
   59         trials and biostudies; requiring compliance with
   60         certain recordkeeping requirements; exempting
   61         compliance from pedigree paper requirements; providing
   62         labeling requirements for active pharmaceutical
   63         ingredients distributed within the state for teaching,
   64         testing, research, and development; exempting from
   65         out-of-state prescription drug wholesale distributor
   66         permit requirements intracompany transactions or the
   67         sale of prescription drugs from an out-of-state
   68         distributor to a distributor in this state if both
   69         distributors conduct wholesale distributions under the
   70         same business name; requiring compliance with
   71         recordkeeping and pedigree paper requirements;
   72         allowing distributors and recipients of prescription
   73         drugs claiming exemption from certain permitting
   74         requirements to maintain on file their FDA
   75         registration number, resident state distributor
   76         license or permit number, and most recent resident
   77         state or FDA inspection report; providing that persons
   78         claiming such exemptions are subject to part I of ch.
   79         499, F.S., the Florida Drug and Cosmetic Act;
   80         requiring persons claiming such exemptions to make all
   81         records regarding prescription drug distribution
   82         available to the department, upon request, within 48
   83         hours; requiring submission of a report of mishandled
   84         or adulterated prescription drugs within 14 days after
   85         receipt of such drugs; authorizing the department to
   86         adopt rules; providing that failure to comply with
   87         requirements or rules governing such exemptions
   88         constitutes unlawful purchase or receipt of a
   89         prescription drug from a person not authorized to
   90         distribute prescription drugs to that purchaser or
   91         recipient; providing that knowing failure to comply
   92         with such requirements constitutes unlawful sale,
   93         distribution, purchase, trade, holding, or offering of
   94         a drug; providing penalties; providing construction
   95         with respect to federal and state laws relating to
   96         controlled substances; providing that a prescription
   97         drug repackager permit is not required for certain
   98         restricted prescription drug distributor permitholders
   99         that distribute prescription drugs to certain
  100         hospitals or other health care entities; exempting
  101         certain restricted prescription drug distributors from
  102         product registration requirements; providing an
  103         effective date.
  104  
  105  Be It Enacted by the Legislature of the State of Florida:
  106  
  107         Section 1. Section 383.146, Florida Statutes, is created to
  108  read:
  109         383.146 Newborn screening for critical congenital heart
  110  disease.—
  111         (1) DEFINITIONS.—As used in this section, the term:
  112         (a) “Department” means the Department of Health.
  113         (b) “Newborn” means an age range from birth through 29
  114  days.
  115         (c) “Screening” means measuring blood oxygen saturation
  116  using pulse oximetry to determine whether a newborn needs
  117  additional diagnostic evaluation for critical congenital heart
  118  disease.
  119         (2) REQUIREMENTS FOR SCREENING OF NEWBORNS; REFERRAL FOR
  120  ONGOING SERVICES.—
  121         (a) Each licensed hospital that provides maternity and
  122  newborn care services shall ensure that, prior to discharge, all
  123  newborns are screened for the detection of critical congenital
  124  heart disease.
  125         (b) Each licensed birth center that provides maternity and
  126  newborn care services shall ensure that, prior to discharge, all
  127  newborns are screened for the detection of critical congenital
  128  heart disease.
  129         (c) If the parent or legal guardian of the newborn objects
  130  to the screening, the screening must not be completed,
  131  notwithstanding any other provision of this section. In such
  132  case, the physician, midwife, or other person who is attending
  133  the newborn shall maintain a record that the screening has not
  134  been performed and attach a written objection that must be
  135  signed by the parent or guardian.
  136         (d) For home births, the health care provider in attendance
  137  is responsible for the screening.
  138         (e) Appropriate documentation of the screening completion,
  139  results, interpretation, and recommendations must be placed in
  140  the medical record within 24 hours after completion of the
  141  screening procedure.
  142         (f) Each hospital shall formally designate a lead physician
  143  who is responsible for programmatic oversight of newborn
  144  congenital heart disease screening. Each licensed birth center
  145  shall designate a licensed health care provider to provide such
  146  programmatic oversight. Such physician or health care provider
  147  shall ensure that the appropriate referrals are completed
  148  following a positive screening test result.
  149         (g) By October 1, 2012, screening for critical congenital
  150  heart disease must be conducted on all newborns in hospitals and
  151  birth centers in this state following birth admission.
  152         (3) RULES.—After consultation with the Genetics and Newborn
  153  Screening Advisory Council, the department shall adopt and
  154  enforce rules requiring that every newborn in this state be
  155  screened for critical congenital heart disease. The department
  156  shall adopt such additional rules as are necessary for the
  157  administration of this section, including rules providing
  158  definitions of terms, rules relating to the methods used and
  159  time or times for testing as accepted medical practice
  160  indicates, rules relating to charging and collecting fees for
  161  the administration of the newborn screening program required by
  162  this section, rules for processing requests and releasing test
  163  and screening results, and rules requiring mandatory reporting
  164  of the results of tests and screenings for this condition to the
  165  department.
  166         (4) POWERS AND DUTIES OF THE DEPARTMENT.—The department
  167  shall administer and provide services required pursuant to this
  168  section and shall:
  169         (a) Furnish to all physicians, county health departments,
  170  perinatal centers, birth centers, and hospitals forms on which
  171  the results of tests for critical congenital heart disease shall
  172  be reported to the department.
  173         (b) Have the authority to charge and collect fees
  174  sufficient to administer the newborn screening program required
  175  under this section.
  176         Section 2. Subsections (17), (19), (20), and (43), and
  177  paragraph (a) of subsection (54) of section 499.003, Florida
  178  Statutes, are amended to read:
  179         499.003 Definitions of terms used in this part.—As used in
  180  this part, the term:
  181         (17) “Distribute” or “distribution” means to sell; offer to
  182  sell; give away; transfer, whether by passage of title, physical
  183  movement, or both; deliver; or offer to deliver. The term does
  184  not mean to administer or dispense and does not include the
  185  billing and invoicing activities that commonly follow a
  186  wholesale distribution transaction.
  187         (19) “Drug” means an article that is:
  188         (a) Recognized in the current edition of the United States
  189  Pharmacopoeia and National Formulary, official Homeopathic
  190  Pharmacopoeia of the United States, or any supplement to any of
  191  those publications;
  192         (b) Intended for use in the diagnosis, cure, mitigation,
  193  treatment, therapy, or prevention of disease in humans or other
  194  animals;
  195         (c) Intended to affect the structure or any function of the
  196  body of humans or other animals; or
  197         (d) Intended for use as a component of any article
  198  specified in paragraph (a), paragraph (b), or paragraph (c), and
  199  includes active pharmaceutical ingredients, but does not include
  200  devices or their components, parts, or accessories. For purposes
  201  of this paragraph, an “active pharmaceutical ingredient”
  202  includes any substance or mixture of substances intended,
  203  represented, or labeled for use in drug manufacturing that
  204  furnishes or is intended to furnish, in a finished dosage form,
  205  any pharmacological activity or other direct effect in the
  206  diagnosis, cure, mitigation, treatment, therapy, or prevention
  207  of disease in humans or other animals, or to affect the
  208  structure or any function of the body of humans or other
  209  animals.
  210         (20) “Establishment” means a place of business which is at
  211  one general physical location and may extend to one or more
  212  contiguous suites, units, floors, or buildings operated and
  213  controlled exclusively by entities under common operation and
  214  control. Where multiple buildings are under common exclusive
  215  ownership, operation, and control, an intervening thoroughfare
  216  does not affect the contiguous nature of the buildings. For
  217  purposes of permitting, each suite, unit, floor, or building
  218  must be identified in the most recent permit application.
  219         (43) “Prescription drug” means a prescription, medicinal,
  220  or legend drug, including, but not limited to, finished dosage
  221  forms or active pharmaceutical ingredients subject to, defined
  222  by, or described by s. 503(b) of the Federal Food, Drug, and
  223  Cosmetic Act or s. 465.003(8), s. 499.007(13), or subsection
  224  (11), subsection (46), or subsection (53), except that an active
  225  pharmaceutical ingredient is a prescription drug only if
  226  substantially all finished dosage forms in which it may be
  227  lawfully dispensed or administered in this state are also
  228  prescription drugs.
  229         (54) “Wholesale distribution” means distribution of
  230  prescription drugs to persons other than a consumer or patient,
  231  but does not include:
  232         (a) Any of the following activities, which is not a
  233  violation of s. 499.005(21) if such activity is conducted in
  234  accordance with s. 499.01(2)(g):
  235         1. The purchase or other acquisition by a hospital or other
  236  health care entity that is a member of a group purchasing
  237  organization of a prescription drug for its own use from the
  238  group purchasing organization or from other hospitals or health
  239  care entities that are members of that organization.
  240         2. The sale, purchase, or trade of a prescription drug or
  241  an offer to sell, purchase, or trade a prescription drug by a
  242  charitable organization described in s. 501(c)(3) of the
  243  Internal Revenue Code of 1986, as amended and revised, to a
  244  nonprofit affiliate of the organization to the extent otherwise
  245  permitted by law.
  246         3. The sale, purchase, or trade of a prescription drug or
  247  an offer to sell, purchase, or trade a prescription drug among
  248  hospitals or other health care entities that are under common
  249  control. For purposes of this subparagraph, “common control”
  250  means the power to direct or cause the direction of the
  251  management and policies of a person or an organization, whether
  252  by ownership of stock, by voting rights, by contract, or
  253  otherwise.
  254         4. The sale, purchase, trade, or other transfer of a
  255  prescription drug from or for any federal, state, or local
  256  government agency or any entity eligible to purchase
  257  prescription drugs at public health services prices pursuant to
  258  Pub. L. No. 102-585, s. 602 to a contract provider or its
  259  subcontractor for eligible patients of the agency or entity
  260  under the following conditions:
  261         a. The agency or entity must obtain written authorization
  262  for the sale, purchase, trade, or other transfer of a
  263  prescription drug under this subparagraph from the State Surgeon
  264  General or his or her designee.
  265         b. The contract provider or subcontractor must be
  266  authorized by law to administer or dispense prescription drugs.
  267         c. In the case of a subcontractor, the agency or entity
  268  must be a party to and execute the subcontract.
  269         d. A contract provider or subcontractor must maintain
  270  separate and apart from other prescription drug inventory any
  271  prescription drugs of the agency or entity in its possession.
  272         d.e. The contract provider and subcontractor must maintain
  273  and produce immediately for inspection all records of movement
  274  or transfer of all the prescription drugs belonging to the
  275  agency or entity, including, but not limited to, the records of
  276  receipt and disposition of prescription drugs. Each contractor
  277  and subcontractor dispensing or administering these drugs must
  278  maintain and produce records documenting the dispensing or
  279  administration. Records that are required to be maintained
  280  include, but are not limited to, a perpetual inventory itemizing
  281  drugs received and drugs dispensed by prescription number or
  282  administered by patient identifier, which must be submitted to
  283  the agency or entity quarterly.
  284         e.f. The contract provider or subcontractor may administer
  285  or dispense the prescription drugs only to the eligible patients
  286  of the agency or entity or must return the prescription drugs
  287  for or to the agency or entity. The contract provider or
  288  subcontractor must require proof from each person seeking to
  289  fill a prescription or obtain treatment that the person is an
  290  eligible patient of the agency or entity and must, at a minimum,
  291  maintain a copy of this proof as part of the records of the
  292  contractor or subcontractor required under sub-subparagraph d
  293  sub-subparagraph e.
  294         f.g. In addition to the departmental inspection authority
  295  set forth in s. 499.051, the establishment of the contract
  296  provider and subcontractor and all records pertaining to
  297  prescription drugs subject to this subparagraph shall be subject
  298  to inspection by the agency or entity. All records relating to
  299  prescription drugs of a manufacturer under this subparagraph
  300  shall be subject to audit by the manufacturer of those drugs,
  301  without identifying individual patient information.
  302         Section 3. Paragraphs (c), (e), and (t) of subsection (2)
  303  of section 499.01, Florida Statutes, are amended, and
  304  subsections (3) and (4) are added to that section, to read:
  305         499.01 Permits.—
  306         (2) The following permits are established:
  307         (c) Nonresident prescription drug manufacturer permit.—A
  308  nonresident prescription drug manufacturer permit is required
  309  for any person that is a manufacturer of prescription drugs,
  310  unless permitted as a third party logistics provider, located
  311  outside of this state or outside the United States and that
  312  engages in the wholesale distribution in this state of such
  313  prescription drugs. Each such manufacturer must be permitted by
  314  the department and comply with all of the provisions required of
  315  a wholesale distributor under this part, except s. 499.01212.
  316         1. A person that distributes prescription drugs for which
  317  the person is not the manufacturer must also obtain an out-of
  318  state prescription drug wholesale distributor permit or third
  319  party logistics provider permit pursuant to this section to
  320  engage in the wholesale distribution of such prescription drugs.
  321  This subparagraph does not apply to a manufacturer as defined in
  322  s. 499.003(31)(e).
  323         2. Any such person must comply with the licensing or
  324  permitting requirements of the jurisdiction in which the
  325  establishment is located and the federal act, and any product
  326  wholesaled into this state must comply with this part. If a
  327  person intends to import prescription drugs from a foreign
  328  country into this state, the nonresident prescription drug
  329  manufacturer must provide to the department a list identifying
  330  each prescription drug it intends to import and document
  331  approval by the United States Food and Drug Administration for
  332  such importation.
  333         3. A nonresident prescription drug manufacturer permit is
  334  not required for a manufacturer to distribute a prescription
  335  drug active pharmaceutical ingredient that it manufactures to a
  336  prescription drug manufacturer permitted in this state in
  337  limited quantities intended for research and development and not
  338  for resale, or human use other than lawful clinical trials and
  339  biostudies authorized and regulated by federal law. A
  340  manufacturer claiming to be exempt from the permit requirements
  341  of this subparagraph and the prescription drug manufacturer
  342  purchasing and receiving the active pharmaceutical ingredient
  343  shall comply with the recordkeeping requirements of s.
  344  499.0121(6), but not the requirements of s. 499.01212. The
  345  prescription drug manufacturer purchasing and receiving the
  346  active pharmaceutical ingredient shall maintain on file a record
  347  of the FDA registration number; the out-of-state license,
  348  permit, or registration number; and, if available, a copy of the
  349  most current FDA inspection report, for all manufacturers from
  350  whom they purchase active pharmaceutical ingredients under this
  351  section. The department shall specify by rule the allowable
  352  number of transactions within a given period of time and the
  353  amount of active pharmaceutical ingredients that qualify as
  354  limited quantities for purposes of this exemption. The failure
  355  to comply with the requirements of this subparagraph, or rules
  356  adopted by the department to administer this subparagraph, for
  357  the purchase of prescription drug active pharmaceutical
  358  ingredients is a violation of s. 499.005(14).
  359         (e) Out-of-state prescription drug wholesale distributor
  360  permit.—An out-of-state prescription drug wholesale distributor
  361  is a wholesale distributor located outside this state which
  362  engages in the wholesale distribution of prescription drugs into
  363  this state and which must be permitted by the department and
  364  comply with all the provisions required of a wholesale
  365  distributor under this part. An out-of-state prescription drug
  366  wholesale distributor that applies to the department for a new
  367  permit or the renewal of a permit must submit a bond of
  368  $100,000, or other equivalent means of security acceptable to
  369  the department, such as an irrevocable letter of credit or a
  370  deposit in a trust account or financial institution, payable to
  371  the Florida Drug, Device, and Cosmetic Trust Fund. The purpose
  372  of the bond is to secure payment of any administrative penalties
  373  imposed by the department and any fees and costs incurred by the
  374  department regarding that permit which are authorized under
  375  state law and which the permittee fails to pay 30 days after the
  376  fine or costs become final. The department may make a claim
  377  against such bond or security until 1 year after the permittee’s
  378  license ceases to be valid or until 60 days after any
  379  administrative or legal proceeding authorized in this part which
  380  involves the permittee is concluded, including any appeal,
  381  whichever occurs later.
  382         1. The out-of-state prescription drug wholesale distributor
  383  must maintain at all times a license or permit to engage in the
  384  wholesale distribution of prescription drugs in compliance with
  385  laws of the state in which it is a resident.
  386         2. An out-of-state prescription drug wholesale distributor
  387  permit is not required for an intracompany sale or transfer of a
  388  prescription drug from an out-of-state establishment that is
  389  duly licensed as a prescription drug wholesale distributor, in
  390  its state of residence, to a licensed prescription drug
  391  wholesale distributor in this state, if both wholesale
  392  distributors conduct wholesale distributions of prescription
  393  drugs under the same business name. The recordkeeping
  394  requirements of ss. 499.0121(6) and 499.01212 must be followed
  395  for this transaction.
  396         (t) Health care clinic establishment permit.—Effective
  397  January 1, 2009, a health care clinic establishment permit is
  398  required for the purchase of a prescription drug by a place of
  399  business at one general physical location that provides health
  400  care or veterinary services, which is owned and operated by a
  401  business entity that has been issued a federal employer tax
  402  identification number. For the purpose of this paragraph, the
  403  term “qualifying practitioner” means a licensed health care
  404  practitioner defined in s. 456.001, or a veterinarian licensed
  405  under chapter 474, who is authorized under the appropriate
  406  practice act to prescribe and administer a prescription drug.
  407         1. An establishment must provide, as part of the
  408  application required under s. 499.012, designation of a
  409  qualifying practitioner who will be responsible for complying
  410  with all legal and regulatory requirements related to the
  411  purchase, recordkeeping, storage, and handling of the
  412  prescription drugs. In addition, the designated qualifying
  413  practitioner shall be the practitioner whose name, establishment
  414  address, and license number is used on all distribution
  415  documents for prescription drugs purchased or returned by the
  416  health care clinic establishment. Upon initial appointment of a
  417  qualifying practitioner, the qualifying practitioner and the
  418  health care clinic establishment shall notify the department on
  419  a form furnished by the department within 10 days after such
  420  employment. In addition, the qualifying practitioner and health
  421  care clinic establishment shall notify the department within 10
  422  days after any subsequent change.
  423         2. The health care clinic establishment must employ a
  424  qualifying practitioner at each establishment.
  425         3. In addition to the remedies and penalties provided in
  426  this part, a violation of this chapter by the health care clinic
  427  establishment or qualifying practitioner constitutes grounds for
  428  discipline of the qualifying practitioner by the appropriate
  429  regulatory board.
  430         4. The purchase of prescription drugs by the health care
  431  clinic establishment is prohibited during any period of time
  432  when the establishment does not comply with this paragraph.
  433         5. A health care clinic establishment permit is not a
  434  pharmacy permit or otherwise subject to chapter 465. A health
  435  care clinic establishment that meets the criteria of a modified
  436  Class II institutional pharmacy under s. 465.019 is not eligible
  437  to be permitted under this paragraph.
  438         6. This paragraph does not apply to the purchase of a
  439  prescription drug by a licensed practitioner under his or her
  440  license. A professional corporation or limited liability company
  441  composed of dentists and operating as authorized in s. 466.0285
  442  may pay for prescription drugs obtained by a practitioner
  443  licensed under chapter 466, and the licensed practitioner is
  444  deemed the purchaser and owner of the prescription drugs.
  445         (3)(a) A permit issued under this part is not required to
  446  distribute a prescription drug active pharmaceutical ingredient
  447  from an establishment located in the United States to an
  448  establishment located in this state permitted as a prescription
  449  drug manufacturer under this part for use by the recipient in
  450  preparing, deriving, processing, producing, or fabricating a
  451  prescription drug finished dosage form at the establishment in
  452  this state where the product is received under an approved and
  453  otherwise valid New Drug Approval Application, Abbreviated New
  454  Drug Application, New Animal Drug Application, or Therapeutic
  455  Biologic Application, provided that the application, active
  456  pharmaceutical ingredient, or finished dosage form has not been
  457  withdrawn or removed from the market in this country for public
  458  health reasons.
  459         1. Any distributor claiming exemption from permitting
  460  requirements pursuant to this paragraph shall maintain a
  461  license, permit, or registration to engage in the wholesale
  462  distribution of prescription drugs under the laws of the state
  463  from which the product is distributed.
  464         2. Any distributor claiming exemption from permitting
  465  requirements pursuant to this paragraph and the prescription
  466  drug manufacturer purchasing and receiving the active
  467  pharmaceutical ingredient shall comply with the recordkeeping
  468  requirements of s. 499.0121(6), but not the requirements of s.
  469  499.01212.
  470         (b) A permit issued under this part is not required to
  471  distribute limited quantities of a prescription drug that has
  472  not been repackaged from an establishment located in the United
  473  States to an establishment located in this state permitted as a
  474  prescription drug manufacturer under this part for research and
  475  development or to a holder of a letter of exemption issued by
  476  the department under s. 499.03(4) for research, teaching, or
  477  testing. The department shall define the term “limited
  478  quantities” by rule and may include the allowable number of
  479  transactions within a given period of time and the amounts of
  480  prescription drugs distributed into the state for purposes of
  481  this exemption.
  482         1. Any distributor claiming exemption from permitting
  483  requirements pursuant to this paragraph shall maintain a
  484  license, permit, or registration to engage in the wholesale
  485  distribution of prescription drugs under the laws of the state
  486  from which the product is distributed.
  487         2. All purchasers and recipients of any prescription drugs
  488  distributed pursuant to this paragraph shall ensure that the
  489  products are not resold or used, directly or indirectly, on
  490  humans except in lawful clinical trials and biostudies
  491  authorized and regulated by federal law.
  492         3. Any distributor claiming exemption from permitting
  493  requirements pursuant to this paragraph, and the purchaser and
  494  recipient of the prescription drug, shall comply with the
  495  recordkeeping requirements of s. 499.0121(6), but not the
  496  requirements of s. 499.01212.
  497         4. The immediate package or container of any active
  498  pharmaceutical ingredient distributed into the state which is
  499  intended for teaching, testing, research, and development shall
  500  bear a label prominently displaying the statement: “Caution:
  501  Research, Teaching, or Testing Only – Not for Manufacturing,
  502  Compounding, or Resale.”
  503         (c) An out-of-state prescription drug wholesale distributor
  504  permit is not required for an intracompany sale or transfer of a
  505  prescription drug from an out-of-state establishment that is
  506  duly licensed as a prescription drug wholesale distributor in
  507  its state of residence to a licensed prescription drug wholesale
  508  distributor in this state, if both wholesale distributors
  509  conduct wholesale distributions of prescription drugs under the
  510  same business name. The recordkeeping requirements of ss.
  511  499.0121(6) and 499.01212 must be followed for such
  512  transactions.
  513         (d) Persons receiving prescription drugs from a source
  514  claimed to be exempt from permitting requirements under this
  515  subsection shall maintain on file:
  516         1. A record of the FDA establishment registration number,
  517  if any;
  518         2. The resident state prescription drug wholesale
  519  distribution license, permit, or registration number; and
  520         3. A copy of the most recent resident state or FDA
  521  inspection report, for all distributors and establishments whom
  522  they purchase or receive prescription drugs under this
  523  subsection.
  524         (e) All persons claiming exemption from permitting
  525  requirements pursuant to this subsection who engage in the
  526  distribution of prescription drugs within or into the state are
  527  subject to this part, including ss. 499.005 and 499.0051, and
  528  shall make available, within 48 hours, to the department on
  529  request all records related to any prescription drugs
  530  distributed under this subsection, including those records
  531  described in s. 499.051(4), regardless of the location where the
  532  records are stored.
  533         (f) A person purchasing and receiving a prescription drug
  534  from a person claimed to be exempt from licensing requirements
  535  pursuant to this subsection shall report to the department in
  536  writing within 14 days after receiving any product that is
  537  misbranded or adulterated or that fails to meet minimum
  538  standards set forth in the official compendium or state or
  539  federal good manufacturing practices for identity, purity,
  540  potency, or sterility, regardless of whether the product is
  541  thereafter rehabilitated, quarantined, returned, or destroyed.
  542         (g) The department may adopt rules to administer this
  543  subsection which are necessary for the protection of the public
  544  health, safety, and welfare. Failure to comply with the
  545  requirements of this subsection, or rules adopted by the
  546  department to administer this subsection, is a violation of s.
  547  499.005(14), and a knowing failure is a violation of s.
  548  499.0051(4).
  549         (h) This subsection does not relieve any person from any
  550  requirement prescribed by law with respect to controlled
  551  substances as defined in the applicable federal and state laws.
  552         (4) A prescription drug repackager permit issued under this
  553  part is not required for a restricted prescription drug
  554  distributor permitholder that is a health care entity that
  555  repackages prescription drugs in this state for its own use or
  556  distributes prescription drugs to a hospital or other health
  557  care entity in the state for its own use pursuant to s.
  558  499.003(54)(a)3. if the restricted prescription drug
  559  distributor:
  560         (a) Notifies the department in writing of its intention to
  561  engage in repackaging under this exemption 30 days before
  562  actually engaging in the repackaging of prescription drugs at
  563  the permitted establishment;
  564         (b) Is under common control with the hospital or other
  565  health care entity to which the restricted prescription drug
  566  distributor distributes prescription drugs. For purposes of this
  567  paragraph, the term “common control” means the power to direct
  568  or cause the direction of the management and policies of a
  569  person or an organization, whether by ownership of stock, by
  570  voting rights, by contract, or otherwise;
  571         (c) Repackages the prescription drugs in accordance with
  572  federal and state current good manufacturing practices; and
  573         (d) Labels the prescription drugs in accordance with state
  574  and federal laws and rules.
  575  
  576  The restricted prescription drug distributor is exempt from the
  577  product registration requirements of s. 499.015 with regard to
  578  the prescription drugs that it repackages and distributes under
  579  this subsection.
  580         Section 4. This act shall take effect July 1, 2012.