Bill Text: FL S1006 | 2012 | Regular Session | Comm Sub
Bill Title: Health Care
Spectrum: Bipartisan Bill
Status: (Failed) 2012-03-09 - Died in Budget, companion bill(s) passed, see CS/HB 517 (Ch. [S1006 Detail]
Download: Florida-2012-S1006-Comm_Sub.html
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. 269d. A contract provider or subcontractor must maintain270separate and apart from other prescription drug inventory any271prescription 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 293sub-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. 3333. A nonresident prescription drug manufacturer permit is334not required for a manufacturer to distribute a prescription335drug active pharmaceutical ingredient that it manufactures to a336prescription drug manufacturer permitted in this state in337limited quantities intended for research and development and not338for resale, or human use other than lawful clinical trials and339biostudies authorized and regulated by federal law. A340manufacturer claiming to be exempt from the permit requirements341of this subparagraph and the prescription drug manufacturer342purchasing and receiving the active pharmaceutical ingredient343shall comply with the recordkeeping requirements of s.344499.0121(6), but not the requirements of s.499.01212. The345prescription drug manufacturer purchasing and receiving the346active pharmaceutical ingredient shall maintain on file a record347of the FDA registration number; the out-of-state license,348permit, or registration number; and, if available, a copy of the349most current FDA inspection report, for all manufacturers from350whom they purchase active pharmaceutical ingredients under this351section. The department shall specify by rule the allowable352number of transactions within a given period of time and the353amount of active pharmaceutical ingredients that qualify as354limited quantities for purposes of this exemption. The failure355to comply with the requirements of this subparagraph, or rules356adopted by the department to administer this subparagraph, for357the purchase of prescription drug active pharmaceutical358ingredients 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. 3821.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. 3862. An out-of-state prescription drug wholesale distributor387permit is not required for an intracompany sale or transfer of a388prescription drug from an out-of-state establishment that is389duly licensed as a prescription drug wholesale distributor, in390its state of residence, to a licensed prescription drug391wholesale distributor in this state, if both wholesale392distributors conduct wholesale distributions of prescription393drugs under the same business name. The recordkeeping394requirements of ss.499.0121(6) and499.01212must be followed395for 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.