Bill Amendment: FL S0836 | 2014 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Medical Gas
Status: 2014-06-13 - Chapter No. 2014-89 [S0836 Detail]
Download: Florida-2014-S0836-Senate_Floor_Amendment_598242.html
Bill Title: Medical Gas
Status: 2014-06-13 - Chapter No. 2014-89 [S0836 Detail]
Download: Florida-2014-S0836-Senate_Floor_Amendment_598242.html
Florida Senate - 2014 SENATOR AMENDMENT Bill No. CS for CS for SB 836 Ì598242,Î598242 LEGISLATIVE ACTION Senate . House . . . Floor: 1/AD/2R . 04/11/2014 12:07 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 1 Senate Amendment 2 3 Delete lines 795 - 1447 4 and insert: 5 (b) Sales, purchases, trades, transfers, or use of a 6 medical gas acquired by a medical director or licensed emergency 7 medical services provider for use by the emergency medical 8 services provider and its permitted transport and nontransport 9 vehicles in accordance with the provider’s license under part 10 III of chapter 401. 11 (c) The provision of emergency supplies of medical gases to 12 nursing homes during the hours of the day when necessary medical 13 gases cannot normally be obtained from the nursing home’s 14 regular distributors. 15 (d) The transfer of medical gases between retail pharmacies 16 to alleviate a temporary shortage. 17 (5) “Emergency use oxygen” means oxygen USP administered in 18 emergency situations without a prescription for oxygen 19 deficiency and resuscitation. The container must be labeled in 20 accordance with requirements of the United States Food and Drug 21 Administration. 22 (6) “Federal act” means the Federal Food, Drug, and 23 Cosmetic Act. 24 (7) “Medical gas” means a liquefied or vaporized gas that 25 is a prescription drug, whether alone or in combination with 26 other gases, and as defined in the federal act. 27 (8) “Medical gas-related equipment” means a device used as 28 a component part or accessory used to contain or control the 29 flow, delivery, or pressure during the administration of a 30 medical gas, such as liquid oxygen base and portable units, 31 pressure regulators and flow meters, and oxygen concentrators. 32 (9) “Misbranded” means having a label that is false or 33 misleading; a label without the name and address of the 34 manufacturer, packer, or distributor and without an accurate 35 statement of the quantities of active ingredients; or a label 36 without an accurate monograph for the medical gas, except in the 37 case of mixtures of designated medical gases where the label 38 identifies the component percentages of each designated medical 39 gas used to make the mixture. 40 (10) “Medical oxygen” means oxygen USP which must be 41 labeled in compliance with labeling requirements for oxygen 42 under the federal act. 43 (11) “Product labeling” means the labels and other written, 44 printed, or graphic matter upon an article, or the containers or 45 wrappers that accompany an article, except for letters, numbers, 46 and symbols stamped into the container as required by the 47 federal Department of Transportation. 48 (12) “USP” means the United States Pharmacopeia. 49 (13) “USP-NF” means the United States Pharmacopeia-National 50 Formulary. 51 (14) “Wholesale distribution” means the distribution of 52 medical gas to a person other than a consumer or patient. 53 Wholesale distribution of medical gases does not include: 54 (a) The sale, purchase, or trade of a medical gas; an offer 55 to sell, purchase, or trade a medical gas; or the dispensing of 56 a medical gas pursuant to a prescription; 57 (b) Activities exempt from the definition of wholesale 58 distribution in s. 499.003; 59 (c) The sale, purchase, or trade of a medical gas or an 60 offer to sell, purchase, or trade a medical gas for emergency 61 medical reasons; or 62 (d) Other transactions excluded from the definition of 63 wholesale distribution under the federal act or regulations 64 implemented under the federal act related to medical gas. 65 (15) “Wholesale distributor” means any person or entity 66 engaged in wholesale distribution of medical gas within or into 67 this state, including, but not limited to, manufacturers; own 68 label distributors; private-label distributors; warehouses, 69 including manufacturers’ and distributors’ warehouses; and 70 wholesale medical gas warehouses. 71 Section 15. Section 499.83, Florida Statutes, is created to 72 read: 73 499.83 Permits.— 74 (1) A person or entity that intends to distribute medical 75 gas within or into this state, unless exempted under this part, 76 must obtain the applicable permit before operating as: 77 (a) A medical gas wholesale distributor; 78 (b) A medical gas manufacturer; or 79 (c) A medical oxygen retail establishment. 80 (2) The following permits are established: 81 (a) Medical gas wholesale distributor permit.—A medical gas 82 wholesale distributor permit is required for wholesale 83 distribution, whether within or into this state. A medical gas 84 must remain in the original container obtained by the wholesale 85 distributor and the wholesale distributor may not engage in 86 further manufacturing operations unless it possesses a medical 87 gas manufacturer permit. A medical gas wholesale distributor may 88 not possess or engage in the wholesale distribution of a 89 prescription drug that is not a medical gas or distribute a 90 medical gas other than by wholesale distribution unless 91 otherwise authorized under this chapter. 92 (b) Medical gas manufacturer permit.—A medical gas 93 manufacturer permit is required for a person or entity located 94 in this state which engages in the manufacture of medical gases 95 by physical air separation, chemical action, purification, or 96 filling containers by a liquid-to-liquid, liquid-to-gas, or gas 97 to-gas process and distributes those medical gases within this 98 state. 99 1. A permitted medical gas manufacturer may not manufacture 100 or possess a prescription drug other than a medical gas, unless 101 otherwise authorized under this chapter. 102 2. A permitted medical gas manufacturer may not distribute 103 a medical gas without obtaining the applicable permit, except 104 that it may engage in wholesale distribution of medical gases 105 that it manufactured without obtaining a medical gas wholesale 106 distributor permit if it complies with this part and the rules 107 adopted under this part that apply to a wholesale distributor. 108 3. A permitted medical gas manufacturer shall comply with 109 all of the requirements applicable to a wholesale distributor 110 under this part and all appropriate state and federal good 111 manufacturing practices. 112 (c) Medical oxygen retail establishment permit.—A medical 113 oxygen retail establishment permit is required for an entity 114 that is located in the state and that sells or delivers medical 115 oxygen directly to patients in this state. The sale and delivery 116 must be based on a prescription or an order from a practitioner 117 authorized by law to prescribe. A pharmacy licensed under 118 chapter 465 does not require a permit as a medical oxygen retail 119 establishment. 120 1. A medical oxygen retail establishment may not possess, 121 purchase, sell, or trade a medical gas other than medical 122 oxygen, unless otherwise authorized under this chapter. 123 2. A medical oxygen retail establishment may fill and 124 deliver medical oxygen to an individual patient based on an 125 order from a practitioner authorized by law to prescribe. The 126 medical oxygen retail establishment must comply with all 127 appropriate state and federal good manufacturing practices. 128 Medical oxygen sold or delivered by a medical oxygen retail 129 establishment pursuant to an order from a practitioner may not 130 be returned into the retail establishment’s inventory. 131 3. A medical oxygen retail establishment shall comply with 132 all of the requirements applicable to a wholesale distributor 133 under this part, except for those requirements that pertain 134 solely to nitrous oxide. 135 (3) An out-of-state wholesale distributor that engages in 136 wholesale distribution into this state must be legally 137 authorized to engage in the wholesale distribution of medical 138 gases as a wholesale distributor in the state in which it 139 resides and provide proof of registration as set forth in s. 140 499.93(3), if required. 141 (4) A wholesale distributor may not operate from a place of 142 residence, and a place of residence may not be granted a permit 143 or operate under this part, except for the on-call delivery of 144 home care oxygen for wholesale distributors that also maintain a 145 medical oxygen retail establishment permit. 146 (5) If wholesale distribution is conducted at more than one 147 location within this state or more than one location 148 distributing into this state, each location must be permitted by 149 the department. 150 Section 16. Section 499.831, Florida Statutes, is created 151 to read: 152 499.831 Permit application.— 153 (1) The department shall adopt rules to establish the form 154 and content of the application to obtain a permit and to renew a 155 permit listed under this part. 156 (2) An applicant must be at least 18 years of age or be 157 managed, controlled, or overseen, directly or indirectly, by a 158 natural person who is at least 18 years of age. 159 (3) An application for a permit must be filed with the 160 department and must include all of the following information: 161 (a) The trade or business name of the applicant, including 162 current and former fictitious names, which may not be identical 163 to a name used by an unrelated entity permitted in this state to 164 dispense or distribute medical gas. 165 (b) The name or names of the owner and operator of the 166 applicant, if not the same person or entity. The application 167 must also include: 168 1. If the applicant is an individual, the applicant’s name, 169 business address, and date of birth. 170 2. If the applicant is a sole proprietorship, the business 171 address of the sole proprietor and the name and federal employer 172 identification number of the business entity. 173 3. If the applicant is a partnership, the name, business 174 address, date of birth of each partner, the name of the 175 partnership, and the partnership’s federal employer 176 identification number. 177 4. If the applicant is a limited liability company, the 178 name, business address, and title of each company officer, the 179 name of the limited liability company and federal employer 180 identification number, and the name of the state in which the 181 limited liability company was organized. 182 5. If the applicant is a corporation, the name, business 183 address, and title of each corporate officer and director, the 184 corporate names, the state of incorporation, the federal 185 employer identification number, and, if applicable, the name and 186 business address of the parent company. 187 (c) A list of disciplinary actions pertinent to wholesale 188 distributors, manufacturers, and retailers of prescription drugs 189 or controlled substances by a state or federal agency against 190 the applicant seeking to distribute into this state and any such 191 disciplinary actions against such applicant’s principals, 192 owners, directors, or officers. 193 (d) A complete disclosure of all of the applicant’s past 194 felony convictions. 195 (e) An address and description of each facility and 196 warehouse, including all locations used for medical gas storage 197 or wholesale distribution including a description of each 198 facility’s security system. 199 (4) An applicant shall attest in writing that the 200 information contained in its application is complete and 201 accurate. 202 (5) An applicant must submit a reasonable fee, to be 203 determined by the department, in order to obtain a permit. 204 (a) The fee for a medical gas wholesale distributor permit 205 may not be less than $200 or more than $300 annually. 206 (b) The fee for a medical gas manufacturer permit may not 207 be less than $400 or more than $500 annually. 208 (c) The fee for a medical oxygen retail establishment 209 permit may not be less than $200 or more than $300 annually. 210 (6) Upon approval of the application by the department and 211 payment of the required fee, the department shall issue a permit 212 to the applicant pursuant to the rules adopted under this part. 213 Section 17. Section 499.832, Florida Statutes, is created 214 to read: 215 499.832 Expiration and renewal of a permit.— 216 (1) A permit issued under this part automatically expires 2 217 years after the last day of the month in which the permit was 218 originally issued. 219 (2) A permit issued under this part may be renewed by 220 submitting an application for renewal on a form furnished by the 221 department and paying the appropriate fee. The application for 222 renewal must contain a statement by the applicant attesting that 223 the information is true and correct. Upon approval of a renewal 224 application by the department and payment of the required 225 renewal fee, the department shall renew a permit issued under 226 this part pursuant to the rules adopted under this part. 227 (3) A renewal application may be accepted up to 60 days 228 after the expiration date of the permit if, along with the 229 permit renewal fee, the applicant submits an additional renewal 230 delinquent fee of $100. A permit that expired more than 60 days 231 before a renewal application was submitted or postmarked may not 232 be renewed. 233 (4) Failure to renew a permit in accordance with this 234 section precludes future renewal. If a permit has expired and 235 cannot be renewed, the person, entity, or establishment holding 236 the permit must cease all permit related activities. In order to 237 engage in such activities, the person, entity, or establishment 238 must submit an application for a new permit, pay the applicable 239 application fee, the initial permit fee, and all applicable 240 penalties, and be issued a new permit by the department before 241 engaging in an activity that requires a permit under this part. 242 (5) The department shall adopt rules to administer this 243 section, including setting a reasonable fee for a renewal 244 application. 245 Section 18. Section 499.833, Florida Statutes, is created 246 to read: 247 499.833 Permitholder changes.— 248 (1) A permit issued under this part is valid only for the 249 person or entity to which it is issued and is not subject to 250 sale, assignment, or other transfer, voluntarily or 251 involuntarily. 252 (2) A permit issued under this part is not valid for an 253 establishment other than the establishment for which it was 254 originally issued. 255 (3) The department may approve the following permit 256 changes: 257 (a) Change of location.—A person or entity permitted under 258 this part must notify and receive approval from the department 259 before changing location. The department shall set a change-of 260 location fee not to exceed $100. 261 (b) Change in ownership.—If a majority of the ownership or 262 controlling interest of a permitted establishment is transferred 263 or assigned or if a lessee agrees to undertake or provide 264 services such that legal liability for operation of the 265 establishment will rest with the lessee, an application for a 266 new permit is required. Such application must be submitted and 267 approved by the department before the change of ownership takes 268 place. However, if a permitted wholesale distributor or 269 manufacturer is changing ownership and the new owner has held 270 another permit that allows the wholesale distribution of medical 271 gas under this chapter for the preceding 18 months without 272 having been found in violation of the provisions of this chapter 273 relating to medical gases, then the new owner may operate under 274 the permit of the acquired entity if the new owner submits the 275 application for a new permit by the first business day after 276 ownership is transferred or assigned. A new owner operating 277 under the original permit is responsible for compliance with all 278 laws and regulations governing medical gas. If the application 279 is denied, the new owner shall immediately cease operation at 280 the establishment until a permit is issued to the new owner. 281 (c) Change of name.—A permitholder may make a change of 282 business name without submitting a new permit application. 283 However, the permitholder must notify the department before 284 making the name change. 285 (d) Closure.—If an establishment permitted under this part 286 closes, the owner must notify the department, in writing, before 287 the effective date of the closure and must: 288 1. Return the permit to the department; and 289 2. Indicate the disposition of any medical gas authorized 290 to be distributed or dispensed under the permit, including the 291 name, address, and inventory, and provide the name and address 292 of a person to contact regarding access to the records that are 293 required to be maintained under this part. Transfer of ownership 294 of medical gas may be made only to persons authorized to receive 295 medical gas pursuant to this part. 296 (e) Change in information.—Any change in the information 297 required under this part, other than the changes in paragraphs 298 (a)-(d), shall be submitted to the department within 30 days 299 after such change occurs. 300 (4) A permitholder in good standing may change the type of 301 permit issued by completing a new application for the requested 302 permit, meeting the applicable permitting requirements for the 303 new permit type, and paying any difference between the permit 304 fees. A refund may not be issued if the fee for the new permit 305 is less than the fee that was paid for the original permit. The 306 new permit retains the expiration date of the original permit. 307 Section 19. Section 499.834, Florida Statutes, is created 308 to read: 309 499.834 Minimum qualifications.—The department shall 310 consider all of the following factors in determining eligibility 311 for, and renewal of, a permit for a person or entity under this 312 part: 313 (1) A finding by the department that the applicant has 314 violated or been disciplined by a regulatory agency in any state 315 for violating a federal, state, or local law relating to 316 prescription drugs. 317 (2) Felony convictions of the applicant under a federal, 318 state, or local law. 319 (3) The applicant’s past experience in the manufacture, 320 retail, or distribution of medical gases. 321 (4) False or fraudulent material provided by the applicant 322 in an application made in connection with the manufacturing, 323 retailing, or distribution of prescription drugs. 324 (5) Any suspension, sanction, or revocation by a federal, 325 state, or local government against a license or permit currently 326 or previously held by the applicant or its owners for violations 327 of a federal, state, or local law regarding prescription drugs. 328 (6) Compliance with previously granted licenses or permits. 329 (7) Compliance with the requirements that distributors or 330 retailers of medical gases maintain records and make records 331 available to the department licensing authority or federal, 332 state, or local law enforcement officials. 333 (8) Other factors or qualifications the department has 334 established in rule that are relevant to and consistent with the 335 public health and safety. 336 Section 20. Section 499.84, Florida Statutes, is created to 337 read: 338 499.84 Minimum requirements for the storage and handling of 339 medical gases.— 340 (1) A facility where a medical gas is received, stored, 341 warehoused, handled, held, offered, marketed, displayed, or 342 transported, to avoid any negative effect on the identity, 343 strength, quality, or purity of the medical gas, must: 344 (a) Be of suitable construction to ensure that medical 345 gases are maintained in accordance with the product labeling of 346 the medical gas or in compliance with the USP-NF; 347 (b) Be of suitable size and construction to facilitate 348 cleaning, maintenance, and proper permitted operations; 349 (c) Have adequate storage areas with appropriate lighting, 350 ventilation, space, equipment, and security conditions; 351 (d) Have a quarantined area for storage of medical gases 352 that are suspected of being misbranded, adulterated, or 353 otherwise unfit for distribution; 354 (e) Be maintained in an orderly condition; 355 (f) Be located in a commercial location and not in a 356 personal dwelling or residence location, except that a personal 357 dwelling location used for on-call delivery of oxygen USP for 358 homecare use if the person providing on-call delivery is 359 employed by or acting under a written contract with an entity 360 that holds a medical oxygen retailer permit; 361 (g) Provide for the secure and confidential storage of 362 patient information, if applicable, with restricted access and 363 policies and procedures to protect the integrity and 364 confidentiality of patient information; and 365 (h) Provide and maintain appropriate inventory controls to 366 detect and document any theft of nitrous oxide. 367 (2) Medical gas shall be stored under appropriate 368 conditions in accordance with the manufacturer’s recommendations 369 on product labeling and department rules or, in the absence of 370 rules, in accordance with applicable industry standards. 371 (3) Medical gas shall be packaged in accordance with 372 official compendium standards, such as the USP-NF. 373 Section 21. Section 499.85, Florida Statutes, is created to 374 read: 375 499.85 Security.— 376 (1) A permitholder that has a facility used for the 377 distribution or retailing of medical gases shall protect such 378 gases from unauthorized access by implementing all of the 379 following security measures: 380 (a) Keeping access from outside the premises well 381 controlled and to a minimum. 382 (b) Ensuring the outside perimeter of the premises is well 383 lit. 384 (c) Limiting access into areas where medical gases are held 385 to authorized personnel. 386 (d) Equipping all facilities with a fence or other system 387 to detect or deter entry after hours. 388 (2) A facility used for distributing or retailing medical 389 gases shall be equipped with a system that provides suitable 390 protection against theft, including if appropriate, protection 391 against theft of computers or electronic records and the 392 protection of the integrity and confidentiality of data and 393 documents. 394 (3) A facility used for wholesale distribution of medical 395 gases shall be equipped with inventory management and control 396 systems that protect against, detect, and document any instances 397 of theft of nitrous oxide. 398 (4) If a wholesale distributor uses electronic distribution 399 records, the wholesale distributor shall employ, train, and 400 document the training of personnel in the proper use of such 401 technology and equipment. 402 (5) Vehicles used for on-call delivery of oxygen USP and 403 oxygen-related equipment for home care use by home care 404 providers may be parked at a place of residence and must be 405 locked and equipped with an audible alarm when not attended. 406 (6) The department shall adopt rules that govern the 407 distribution of medical oxygen for emergency use by persons 408 authorized to receive emergency use oxygen. Unless the laws of 409 this state specifically direct otherwise, such rules must be 410 consistent with federal regulations, including the labeling 411 requirements of oxygen under the federal act. Such rules may not 412 be inconsistent with part III of chapter 401 or rules adopted 413 thereunder. 414 Section 22. Section 499.86, Florida Statutes, is created to 415 read: 416 499.86 Examination of materials.— 417 (1) A wholesale distributor must visually examine a medical 418 gas container upon receipt from the manufacturer in order to 419 identify the medical gas stored within and to determine if the 420 container has been damaged or is otherwise unfit for 421 distribution. Such examination must occur in a manner that would 422 reveal damage to the container which could suggest possible 423 adulteration or misbranding. 424 (2) A medical gas container that is found to be damaged or 425 otherwise unfit pursuant to subsection (1) must be quarantined 426 from the stock of medical gas until a determination is made that 427 the medical gas in question is not misbranded or adulterated. 428 (3) An outgoing shipment must be inspected to identify the 429 medical gases in the shipment to ensure that medical gas 430 containers that have been damaged in storage or held under 431 improper conditions are not distributed or dispensed. 432 (4) A wholesale distributor must review records documenting 433 the acquisition of medical gas upon receipt for accuracy and 434 completeness. 435 Section 23. Section 499.87, Florida Statutes, is created to 436 read: 437 499.87 Returned, damaged, and outdated medical gas.— 438 (1) A medical gas that has left the control of the 439 wholesale distributor may be returned to the wholesale 440 distributor or manufacturer from which it was acquired, but may 441 not be resold as a medical gas unless it is reprocessed by a 442 manufacturer using proper and adequate controls to ensure the 443 identity, strength, quality, and purity of the reprocessed 444 medical gas. 445 (2) A medical gas that has been subjected to improper 446 conditions, such as a fire, accident, or natural disaster, may 447 not be salvaged or reprocessed. 448 (3) A medical gas, including its container, which is 449 damaged, misbranded, or adulterated must be quarantined from 450 other medical gases until it is destroyed or returned to the 451 manufacturer or wholesale distributor from which it was 452 acquired. External contamination of a medical gas container or 453 closure system which does not impact the integrity of the 454 medical gas is not considered damaged or adulterated for 455 purposes of this subsection. If a medical gas is adulterated or 456 misbranded or suspected of being adulterated or misbranded, 457 notice shall be provided to the manufacturer or wholesale 458 distributor from which the medical gas was acquired and to the 459 appropriate boards and federal regulatory bodies. 460 (4) A medical gas container that has been opened or used 461 but is not adulterated or misbranded is considered empty and 462 must be quarantined from nonempty medical gas containers and 463 returned to the manufacturer or wholesale distributor from which 464 it was acquired for destruction or reprocessing. 465 (5) A medical gas, its container, or its associated 466 documentation or labeling that is suspected of being used in 467 criminal activity must be retained until its disposition is 468 authorized by the department or an applicable law enforcement 469 agency. 470 Section 24. Section 499.88, Florida Statutes, is created to 471 read: 472 499.88 Due diligence.— 473 (1) A wholesale distributor shall obtain, before the 474 initial acquisition of medical gas, the following information 475 from the supplying wholesale distributor or manufacturer: 476 (a) If a manufacturer is distributing to a wholesale 477 distributor, evidence that the manufacturer is registered and 478 the medical gas is listed with the United States Food and Drug 479 Administration; 480 (b) If a wholesale distributor is distributing to a 481 wholesale distributor, evidence that the wholesale distributor 482 supplying the medical gas is legally authorized to distribute 483 medical gas within or into the state; 484 (c) The name of the responsible facility contact person for 485 the supplying manufacturer or wholesale distributor; and 486 (d) Certification that the manufacturer’s or wholesale 487 distributor’s policies and procedures comply with this part. 488 (2) A wholesale distributor is exempt from obtaining the 489 information from a manufacturer, as required under subsection 490 (1), if the manufacturer is registered with the United States 491 Food and Drug Administration in accordance with s. 510 of the 492 federal act and the manufacturer provides: 493 (a) Proof of such registration; and 494 (b) Proof of inspection by the United States Food and Drug 495 Administration or other regulatory body within the past 3 years 496 demonstrating substantial compliance with current good 497 manufacturing practices applicable to medical gases. 498 (3) A manufacturer or wholesale distributor that 499 distributes to or acquires medical gas from another wholesale 500 distributor shall provide to or obtain from the distributing or 501 acquiring manufacturer or distributor the information required 502 by s. 499.89(1), as applicable. 503 Section 25. Section 499.89, Florida Statutes, is created to 504 read: 505 499.89 Recordkeeping.— 506 (1) A permitholder under this part shall establish and 507 maintain a record of transactions regarding the receipt and the 508 distribution, or other disposition, of medical gases, as 509 applicable. Such records constitute an audit trail and must 510 contain information sufficient to perform a recall of medical 511 gas in compliance with 21 C.F.R. s. 211.196 and 21 C.F.R. s. 512 820.160(b). Such records must include all of the following 513 information, which may be kept in two separate documents one 514 related to the distribution of medical gas and the other related 515 to the receipt of medical gas: 516 (a) The dates of receipt and distribution or other 517 disposition of the medical gas. 518 (b) The name, address, license or permit number and its 519 expiration date for the person or entity purchasing the medical 520 gas from the wholesale distributor. 521 (c) The name, address, license or permit number and its 522 expiration date for the person or entity receiving the medical 523 gas, if different from the information required under paragraph 524 (b). 525 (d) Information sufficient to perform a recall of all 526 medical gas received, distributed, or dispensed. 527 (2) Such records shall be made available for inspection and 528 copying by an authorized official of any federal, state, or 529 local governmental agency for a period of: 530 (a) Three years following the distribution date of high 531 pressure medical gases. 532 (b) Two years following the distribution date for cryogenic 533 or refrigerated liquid medical gases. 534 (3) Records kept at the inspection site or that can be 535 immediately retrieved by computer or other electronic means 536 shall be readily available for authorized inspection during the 537 retention period. Records kept at a central location apart from 538 the inspection site and not electronically retrievable shall be 539 made available for inspection within 2 working days of a request 540 by an authorized official of any state or federal governmental 541 agency charged with enforcement of these rules. 542 (4) A pedigree paper is not required for distributing or 543 dispensing medical gas. 544 (5) A wholesale distributor shall maintain records 545 sufficient to aid in the mandatory reporting of any theft, 546 suspected theft, or other significant loss of nitrous oxide to 547 the department and other appropriate law enforcement agencies. 548 Section 26. Section 499.90, Florida Statutes, is created to 549 read: 550 499.90 Policies and procedures.—A wholesale distributor 551 shall establish, maintain, and adhere to written policies and 552 procedures for the receipt, security, storage, transport, 553 shipping, and distribution of medical gases and shall establish, 554 maintain, and adhere to procedures for maintaining inventories; 555 for identifying, recording, and reporting losses or thefts; and 556 for correcting all errors and inaccuracies in inventories 557 associated with nitrous oxide. A wholesale distributor shall 558 include in its written policies and procedures all of the 559 following: 560 (1) A procedure for handling recalls and withdrawals of 561 medical gas. Such procedure must deal with recalls and 562 withdrawals due to: 563 (a) Action initiated at the request of the United States 564 Food and Drug Administration or any federal, state, or local law 565 enforcement or other government agency, including the 566 department; or 567 (b) Voluntary action by a manufacturer of medical gases to 568 remove defective or potentially defective medical gases from the 569 market. 570 (2) A procedure that includes preparation for, protection 571 against, and responding to a crisis that affects the security or 572 operation of a facility that stores medical gases in the event 573 of a strike; a fire, flood, or other natural disaster; or other 574 local, state, or national emergency. 575 (3) A procedure for reporting criminal or suspected 576 criminal activity involving the inventory of nitrous oxide to 577 the department and to applicable law enforcement agencies within 578 3 business days after becoming aware of the criminal or 579 suspected criminal activity. 580 Section 27. Section 499.91, Florida Statutes, is created to 581 read: 582 499.91 Prohibited acts.—A person may not perform or cause 583 the performance of, or aid and abet in, any of the following 584 acts: 585 (1) The manufacture, sale, or delivery, or the holding or 586 offering for sale, of a medical gas that is adulterated, 587 misbranded, or is otherwise unfit for distribution. 588 (2) The adulteration or misbranding of a medical gas. 589 (3) The receipt of a medical gas that is adulterated, 590 misbranded, stolen, or obtained by fraud or deceit, and the 591 delivery or proffered delivery of such medical gas for pay or 592 otherwise. 593 (4) The alteration, mutilation, destruction, obliteration, 594 or removal of all or any part of the product labeling of a 595 medical gas, or the willful commission of any other act with 596 respect to a medical gas that results in it being misbranded. 597 (5) The purchase or receipt of a medical gas from a person 598 not authorized to distribute or dispense medical gas or who is 599 not exempted from permitting requirements to wholesale 600 distribute medical gas to such purchaser or recipient. 601 (6) The knowing and willful sale or transfer of a medical 602 gas to a recipient who is not legally authorized to receive a 603 medical gas, except that a violation does not exist if a 604 permitted wholesale distributor provides oxygen to a permitted 605 medical oxygen retail establishment that is out of compliance 606 with the notice of location change requirements of s. 499.834, 607 provided that the wholesale distributor with knowledge of the 608 violation notifies the department of the transaction by the next 609 business day. 610 (7) The failure to maintain or provide records required 611 under this part and the rules adopted under this part. 612 (8) Providing the department or any of its representatives 613 or any state or federal official with false or fraudulent 614 records or making false or fraudulent statements regarding this 615 part or the rules adopted under this part. 616 (9) The distribution of a medical gas that was: 617 (a) Purchased by a public or private hospital or other 618 health care entity, except for the physical distribution of such 619 medical gas to an authorized recipient at the direction of a 620 hospital or other health care entity; 621 (b) Donated or supplied at a reduced price to a charitable 622 organization; or 623 (c) Stolen or obtained by fraud or deceit. 624 (10) The failure to obtain a license or permit or operating 625 without a valid license or permit, if one is required. 626 (11) The obtaining of, or attempt to obtain, a medical gas 627 by fraud, deceit, or misrepresentation or engaging in 628 misrepresentation or fraud in the distribution of a medical gas. 629 (12) Except for emergency use oxygen, the distribution of a 630 medical gas to a patient without a prescription from a 631 practitioner authorized by law to prescribe a medical gas. 632 (13) The distribution or dispensing of a medical gas that 633 was previously dispensed by a pharmacy or a practitioner 634 authorized by law to prescribe. 635 (14) The distribution or dispensing of a medical gas or 636 medical gas-related equipment to a patient, unless the patient 637 has been provided with the appropriate information and 638 counseling on the use, storage, and disposal of the medical gas. 639 (15) Failure to report an act prohibited under this part or 640 the rules adopted under this part. 641 (16) Failure to exercise due diligence as provided in s. 642 499.88. 643 Section 28. Section 499.92, Florida Statutes, is created to 644 read: 645 499.92 Criminal acts.— 646 (1) A person commits a felony of the third degree, 647 punishable as provided in s. 775.082, s. 775.083, or s. 775.084, 648 if he or she: 649 (a) Adulterates or misbrands a medical gas with intent to 650 defraud or deceive; 651 (b) Knowingly purchases or receives a medical gas from a 652 person not legally authorized to distribute or dispense medical 653 gas; 654 (c) Knowingly engages in the wholesale distribution of, or 655 sells, barters, brokers, or transfers, a medical gas to a person 656 not legally authorized to purchase or receive medical gas in the 657 jurisdiction in which the person receives the medical gas. A 658 permitted wholesale distributor that provides oxygen to a 659 permitted medical oxygen retail establishment that is out of 660 compliance with only the change of location notice requirement 661 under s. 499.834, does not commit a violation of this paragraph 662 if the wholesale distributor notifies the department of the 663 transaction no later than the next business day; or 664 (d) Knowingly falsely creates a label for a medical gas or 665 knowingly misrepresents a factual matter contained in a