H. B. 2796


(By Delegates Border, Leach and

Perdue, (By Request))

[Introduced February 17, 1999; referred to the

Committee on Government Organization.]




A BILL to amend and reenact sections six-a, nine and fourteen, article five, chapter thirty of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section seven, article eight, chapter sixty-a of said code, all relating to fees for licensing and permits to operate for pharmacists, pharmacies, drugstores and wholesale drug distributors payable to the West Virginia Board of Pharmacy; establishing an initial fee and a renewal fee for an application for a permit for mail-order pharmacies and drugstores; increasing the renewal fees for licensing and operation permits for pharmacists; and increasing the licensing fee for wholesale drug distributors.

Be it enacted by the Legislature of West Virginia:
That sections six-a, nine and fourteen, article five, chapter thirty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section seven, article eight, chapter sixty-a of said code be amended and reenacted, all to read as follows:
CHAPTER 30.

PROFESSIONS AND OCCUPATIONS.

ARTICLE 5. PHARMACISTS, PHARMACY TECHNICIANS, PHARMACY INTERNS AND PHARMACIES.

§30-5-6a. Permits for mail-order houses.

(a) Every mail-order house which dispenses drugs or medicines through the United States mail or otherwise from any point in the state of West Virginia to any point outside of the state of West Virginia shall be registered as a pharmacy or drugstore pursuant to the provisions of section fourteen of this article: Provided, That the provisions of this subsection do not apply to any mail-order house which operates solely as a wholesale distributor. Every initial application for a permit shall be accompanied by a fee of five hundred dollars. The fee for renewal of the permit or license shall be five hundred dollars annually.
(b) Every mail-order house which dispenses drugs or medicines through the United States mail or otherwise from any point outside of the state of West Virginia to any point within the state of West Virginia shall, as a condition precedent to being qualified and authorized to transact such business in the state of West Virginia, annually register with the board of pharmacy to conduct such business in this state. Every initial application for a permit shall be accompanied by a fee of five hundred dollars. The fee for renewal of the permit or license shall be five hundred dollars annually. Every such business shall be required to provide to the board of pharmacy satisfactory evidence that it qualifies as a pharmacy or drugstore and that such the business is licensed or registered as a pharmacy or drugstore in the state where the business dispenses prescriptions by mail order to residents of this state. The board of pharmacy shall promulgate rules, in accordance with the provisions of article three, chapter twenty-nine-a of this code, for the procedures of registration pursuant to this subsection: Provided, That the provisions of this subsection do not apply to any mail-order house which operates solely as a wholesale distributor.
§30-5-9. Fees.
The board of pharmacy shall charge and collect the following fees, in addition to those provided in article one of this chapter and in sections five, fourteen and sixteen of this article: For renewing the licensure of a pharmacist, thirty fifty dollars; to license an intern pharmacist, ten dollars plus five dollars for each of the remaining periods of his or her internship; to register a consultant pharmacist, twenty dollars for the initial application and ten dollars for each additional application; and to register a pharmacy technician, twenty-five dollars and ten dollars for each renewal.
§30-5-14. Pharmacies to be registered; permit to operate; fees; pharmacist to conduct business.
(a) The board of pharmacy shall require and provide for the annual registration of every pharmacy doing business in this state. Any person, firm, corporation or partnership desiring to operate, maintain, open or establish a pharmacy in this state shall apply to the board of pharmacy for a permit to do so. The application for such permit shall be made on a form prescribed and furnished by the board of pharmacy, which, when properly executed, shall indicate the owner, manager, trustee, lessee, receiver, or other person or persons desiring such permit, as well as the location of such pharmacy, including street and number, and
such any other information as the board of pharmacy may require. If it is desired to operate, maintain, open or establish more than one pharmacy, separate application shall be made and separate permits or licenses shall be issued for each.
(b) Every initial application for a permit shall be accompanied by the required fee of one hundred fifty dollars. The fee for renewal of such permit or license shall be seventy-five one hundred dollars annually.
(c) If an application is approved, the secretary of the board of pharmacy shall issue to the applicant a permit or license for each pharmacy for which application is made. Permits or licenses issued under this section shall not be transferable and shall expire on the thirtieth day of June of each calendar year, and if application for renewal of permit or license is not made on or before that date, or a new one granted on or before the first day of August, following, the old permit or license shall lapse and become null and void and shall require an inspection of the pharmacy and a fee of one hundred fifty dollars plus one hundred fifty dollars for the inspection.
(d) Every such place of business so registered shall employ a pharmacist in charge and operate in compliance with the general provisions governing the practice of pharmacy and the operation of a pharmacy.
(e) The provisions of this section shall have no application to the sale of nonprescription drugs which are not required to be dispensed pursuant to a practitioner's prescription.
CHAPTER 60A. UNIFORM CONTROLLED SUBSTANCES ACT.

ARTICLE 8. WHOLESALE DRUG DISTRIBUTION LICENSING ACT OF 1991.
§60A-8-7. Wholesale drug distributor licensing requirements.

All wholesale distributors and pharmacy distributors shall be subject to the following requirements:
(a) No person or distribution outlet may act as a wholesale drug distributor without first obtaining a license to do so from the board of pharmacy and paying any reasonable fee required by the board of pharmacy, such fee not to exceed two four hundred dollars per year.
(b) The board of pharmacy may grant a temporary license when a wholesale drug distributor first applies for a license to operate within this state and such the
temporary license shall remain valid until the board of pharmacy finds that the applicant meets or fails to meet the requirements for regular licensure, except that no such temporary license shall be valid for more than ninety days from the date of issuance. Any temporary license issued pursuant to this subdivision shall be renewable for a similar period of time not to exceed ninety days pursuant to policies and procedures to be prescribed by the board of pharmacy.
(c) No license may be issued or renewed for a wholesale drug distributor to operate unless the distributor operates in a manner prescribed by law and according to the rules promulgated by the board of pharmacy with respect thereto.
(d) The board of pharmacy may require a separate license for each facility directly or indirectly owned or operated by the same business entity within this state, or for a parent entity with divisions, subsidiaries, or affiliate companies within this state when operations are conducted at more than one location and there exists joint ownership and control among all the entities.
(e) (1) As a condition for receiving and retaining any wholesale drug distributor license issued pursuant to this article, each applicant shall satisfy the board of pharmacy that it has and will continuously maintain:
(A) Acceptable storage and handling conditions plus facilities standards;
(B) Minimum liability and other insurance as may be required under any applicable federal or state law;
(C) A security system which includes after hours central alarm or comparable entry detection capability, restricted premises access, adequate outside perimeter lighting, comprehensive employment applicant screening and safeguards against employee theft;
(D) An electronic, manual or any other reasonable system of records describing all wholesale distributor activities governed by this article for the two-year period following disposition of each product and being reasonably accessible as defined by board of pharmacy regulations during any inspection authorized by the board of pharmacy;
(E) Officers, directors, managers and other persons in charge of wholesale drug distribution, storage and handling, who must at all times demonstrate and maintain their capability of conducting business according to sound financial practices as well as state and federal law;
(F) Complete, updated information to be provided the board of pharmacy as a condition for obtaining and retaining a license about each wholesale distributor to be licensed under this article including all pertinent licensee ownership and other key personnel and facilities information deemed determined necessary for enforcement of this article, with any changes in such the
information to be submitted at the time of license renewal or within twelve months from the date of such the change, whichever occurs first;
(G) Written policies and procedures which assure reasonable wholesale distributor preparation for protection against and handling of any facility security or operation problems, including, but not limited to, those caused by natural disaster or government emergency, inventory inaccuracies or product shipping and receiving, outdated product or other unauthorized product control, appropriate disposition of returned goods and product recalls;
(H) Sufficient inspection procedures for all incoming and outgoing product shipments; and
(I) Operations in compliance with all federal legal requirements applicable to wholesale drug distribution.
(2) The board of pharmacy shall consider, at a minimum, the following factors in reviewing the qualifications of persons who engage in wholesale distribution of prescription drugs with this state:
(A) Any conviction of the applicant under any federal, state or local laws relating to drug samples, wholesale or retail drug distribution or distribution of controlled substances;
(B) Any felony convictions of the applicant under federal, state or local laws;
(C) The applicant's past experience in the manufacture or distribution of prescription drugs, including controlled substances;
(D) The furnishing by the applicant of false or fraudulent material in any application made in connection with drug manufacturing or distribution;
(E) Suspension or revocation by federal, state or local government of any license currently or previously held by the applicant for the manufacture or distribution of any drug, including controlled substances;
(F) Compliance with licensing requirements under previously granted licenses, if any;
(G) Compliance with requirements to maintain and /or make available to the board of pharmacy or to federal, state or local law-enforcement officials those records required by this article; and
(H) Any other factors or qualifications the board of pharmacy considers relevant to and consistent with the public health and safety, including whether the granting of the license would not be in the public interest.
(3) All requirements set forth in this subsection shall conform to wholesale drug distributor licensing guidelines formally adopted by the United States food and drug administration (FDA); and in case of conflict between any wholesale drug distributor licensing requirement imposed by the board of pharmacy pursuant to this subsection and any food and drug administration wholesale drug distributor licensing guideline, the latter shall control.
(f) An agent or employee of any licensed wholesale drug distributor need not seek licensure under this section and may lawfully possess pharmaceutical drugs when such the
agent or employee is acting in the usual course of business or employment.
(g) The issuance of a license pursuant to this article does not change or affect tax liability imposed by this state's department of tax and revenue on any wholesale drug distributor.
(h) The board of pharmacy may adopt rules pursuant to section nine of this article which permit out-of-state wholesale drug distributors to obtain any license required by this article on the basis of reciprocity to the extent that: (i) An out-of-state wholesale drug distributor possesses a valid license granted by another state pursuant to legal standards comparable to those which must be met by a wholesale drug distributor of this state as prerequisites for obtaining a license under the laws of this state; and (ii) such other state would extend reciprocal treatment under its own laws to a wholesale drug distributor of this state.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.