HB0166 - Prescription drug division.

2001

State of Wyoming

01LSO-0277

 

 

HOUSE BILL NO.  HB0166

 

 

Prescription drug division.

 

Sponsored by:  Representative(s) Huckfeldt, Iekel, Meuli,
Osborn, Paseneaux, Robinson, Ross, Tipton,
Warren and Wostenberg

 

 

A BILL

 

for

 

 1  AN ACT relating to a prescription drug division within the
 2  department of revenue; requiring a licensed pharmacy to
 3  register with the prescription drug division; allowing the
 4  division to purchase and sell prescription drugs to
 5  licensed pharmacies; authorizing the division to supervise
 6  the sale of prescription drugs by licensed pharmacies;
 7  authorizing the prescription drug division to set maximum
 8  prices for prescription drugs; requiring a licensed
 9  pharmacy to purchase prescription drugs from the division;
10  allowing agents of the prescription drug division to seize
11  any improperly imported prescription drugs; providing an
12  appropriation and authorizing personnel; and providing for
13  an effective date.

14 

15  Be It Enacted by the Legislature of the State of Wyoming:

16 

 

Page  1

 

 

 

 1         Section 1.  W.S. 9-2-2601 through 9-2-2611 are created
 2  to read:

 3 

 4                         ARTICLE 26

 5              WYOMING PRESCRIPTION DRUG DIVISION

 6 

 7         9-2-2601.  Definitions.

 8 

 9         (a)  As used in this article:

10 

11              (i)  "Licensed pharmacy" means a pharmacy which
12  has applied for and received a license to operate a
13  pharmacy by the Wyoming state board of pharmacy under W.S.
14  33-24-113;

15 

16              (ii)  "Prescription drug" means medication
17  ordered by a person licensed and authorized by the state
18  board of medicine, the state board of dental examiners, the
19  state board of nursing, the state board of registration in
20  podiatry, the state board of examiners in optometry or the
21  state board of veterinary medicine which is dispensed to or
22  for an ultimate user, but does not include an order for
23  medication which is dispensed for immediate administration
24  to the ultimate user;

 

Page  2

 

 

 

 1 

 2              (iii)  "This act" means W.S. 9-2-2601 through
 3  9-2-2611.

 4 

 5         9-2-2602.  Wyoming prescription drug division created;
 6  division administrator; duties.

 7 

 8         (a)  The Wyoming prescription drug division is created
 9  within the department of revenue. The division shall
10  consist of the programs and functions specified under this
11  act.

12 

13         (b)  The administrator of the division shall be
14  appointed by the director of the department of revenue and
15  shall serve at the pleasure of and may be removed at any
16  time by the director. Subject to the approval of the
17  director, the administrator shall take final agency action
18  with respect to all matters before the division pursuant to
19  this act.

20 

21         9-2-2603.  Wholesale license for sale of prescription
22  drugs; fee.

23 

 

Page  3

 

 

 

 1         (a)  The board of pharmacy shall, after issuing a
 2  license to a commercial operation in the state operating a
 3  pharmacy under W.S. 33-24-113, submit the name of at least
 4  one (1) licensed pharmacist practicing at the licensed
 5  pharmacy and the name of the business operating the
 6  pharmacy to the prescription drug division.  The licensed
 7  pharmacy shall register the name of one (1) licensed
 8  pharmacist and the name of the business operating the
 9  pharmacy with the prescription drug division.  The name of
10  the licensed pharmacist and the name of the business
11  operating the pharmacy shall be identical to those
12  registered with the board of pharmacy.

13 

14         (b)  All licensed pharmacies in Wyoming shall be under
15  the direct supervision of the prescription drug division
16  and subject to all the provisions of this act and the rules
17  and regulations of the prescription drug division.

18 

19         9-6-2604.  Powers and duties.

20 

21         (a)  The prescription drug division is the exclusive
22  wholesale distributor and seller of prescription drugs
23  within Wyoming. It is granted the sole right to sell
24  prescription drugs at wholesale, and no licensed pharmacy

Page  4

 

 

 

 1  which is granted the right to sell or distribute
 2  prescription drugs at retail, pursuant to W.S. 33-24-113,
 3  shall purchase any prescription drugs from any source other
 4  than the division.

 5 

 6         (b)  The prescription drug division shall make rules
 7  and regulations it considers necessary to carry out this
 8  title which shall not be inconsistent with applicable laws
 9  and regulations of this state or of the United States.

10 

11         (c)  The administrator of the prescription drug
12  division shall direct inspections and other investigations
13  as he considers necessary for the enforcement of the law
14  and the rules and regulations of the division.

15 

16         (d)  On or before October 1 of each year, the
17  prescription drug division shall submit to the legislature
18  financial statements on the operation of the division.  The
19  statements shall be prepared in accordance with generally
20  accepted accounting principles and shall specify all
21  amounts actually paid to other state government agencies
22  for goods and services. The fair rental value or fair
23  market value of those goods and services shall be specified
24  by footnote to the statements.

 

Page  5

 

 

 

 1 

 2         (e)  The prescription drug division shall develop and
 3  maintain a program to aggregate the purchase of
 4  prescriptions drugs from suppliers for licensed pharmacies
 5  in this state.

 6 

 7         9-6-2605.  Disposition of revenue and fees.

 8 

 9  The prescription drug division shall collect all revenue
10  and fees to be deposited into the state treasury to the
11  credit of the enterprise fund except as otherwise provided
12  by law. The legislature shall authorize expenditures as
13  necessary to defray the administrative expenses of the
14  prescription drug division, including salaries, office
15  expenses and general expenses for the enforcement of their
16  duties and sufficient funds to defray the cost of
17  prescription drugs and attendant expenses as provided by
18  W.S. 9-4-204(o) and 9-4-205(d).

19 

20         9-6-2606.  Purchase and sale of prescription drugs.

21 

22         (a)  The Wyoming prescription drug division shall
23  purchase and sell prescription drugs to qualified licensed
24  pharmacies within this state.  Except as provided in

Page  6

 

 

 

 1  subsection (c) of this section, sales by the division shall
 2  be made at prices sufficient to return the cost of
 3  merchandise and cover all expenses of operation of the
 4  prescription drug division.

 5 

 6         (b)  In the case of a shortage in the supply of any
 7  prescription drug, the division may apportion its available
 8  supply among the licensees in an equitable manner.

 9 

10         (c)  The Wyoming prescription drug division may sell
11  prescription drugs at a price less than that provided in
12  subsection (a) of this section if the prescriptive drug has
13  been designated by the division as overstocked or has been
14  removed from the division's published listing of
15  prescriptive drugs to be kept for sale to licensees.  For
16  purposes of this section "overstocked" means the amount of
17  the prescriptive drugs in the division's inventory is
18  greater than would be sold in a twelve (12) month period.

19 

20         9-6-2607.  Sales prices for licensed pharmacy.

21 
22  Licensed pharmacies receiving prescription drugs from the
23  prescription drug division shall sell prescription drugs to
24  consumers at prices to be set by rule adopted by the

Page  7

 

 

 

 1  prescription drug division.  The price shall be appropriate
 2  to ensure an adequate profit for the pharmacies and be at
 3  the lowest reasonable price to the consumer. 

 4 

 5         9-6-2608.  Inspections and examinations; failure to
 6  permit entry.

 7 

 8         (a)  The prescription drug division, through its
 9  employees or agents, may enter and inspect at any time
10  every place of business wherein prescription drugs are
11  being sold, stored or kept by any licensed pharmacist.

12 

13         (b)  The prescription drug division, through its
14  employees or agents, may examine the records, books of
15  account and stock of licensed pharmacists to determine
16  conformity with this act.

17 

18         (c)  If any licensed pharmacist refuses to permit the
19  entry of an agent of the prescription drug division to his
20  place of business or storage place for the purpose of
21  inspection, his license may be revoked. Entry for purposes
22  of inspection is authorized only during open business hours
23  unless it is in the presence of the pharmacist on duty or
24  his duly authorized representative or unless the officer

Page  8

 

 

 

 1  making entry does so under court order or has reasonable
 2  grounds to believe that evidence of any violation of this
 3  title is within the place to be entered.

 4 

 5         9-6-2609.  Sales to violators prohibited; hearing and
 6  review.

 7 

 8  Whenever any licensed pharmacy is convicted of willfully
 9  violating any provision of this title, upon satisfactory
10  proof of the conviction, the prescription drug division
11  may, after notice and hearing, refuse to sell prescription
12  drugs to the licensed pharmacy. The administrative
13  proceeding shall be conducted as a contested case before a
14  hearing examiner of the office of administrative hearings,
15  who shall recommend a decision to the division. Judicial
16  review, if any, shall be from the decision of the
17  prescription drug division and in accordance with the
18  provisions of the Wyoming Administrative Procedure Act.

19 

20         9-6-2610.  Mandatory participation.

21 

22  Every licensed pharmacy in this state shall obtain all
23  prescription drugs from, or pursuant to contracts
24  negotiated with, the prescription drug division.

 

Page  9

 

 

 

 1 

 2         9-6-2611.  Confiscation authorized; disposition; when
 3  seizure permitted.

 4 

 5  Whenever an inspector, agent or employee of the
 6  prescription drug division or any peace officer of the
 7  state lawfully discovers prescription drugs which have been
 8  unlawfully imported or transported, he may seize the
 9  prescription drugs and packages in which they are contained
10  for use as evidence and shall not be removed from state
11  control upon writ of replevin or other like process.

12 

13         Section 2.  W.S. 9-4-204 by creating a new subsection
14  (s), 33-24-113(b) and 33-24-121 by creating a new
15  subsection (e) are amended to read:

16 

17         9-4-204.  Funds established; use thereof.

18 

19         (s)  There is created an account within the enterprise
20  fund for use by the prescription drug division.

21 

22         33-24-113.  Licensing of commercial operation
23  operating pharmacy; exceptions; display of license;
24  suspension, revocation or refusal to renew.

 

Page 10

 

 

 

 1 

 2         (b)  The license shall be displayed in a conspicuous
 3  place in the pharmacy for which it is issued, and shall
 4  expire one (1) year after the date of issue. It is unlawful
 5  for any person or commercial operation to operate a
 6  pharmacy unless a license has been issued by the board of
 7  pharmacy and the prescription drug division has registered
 8  the licensed pharmacy pursuant to W.S. 9-2-2603. The board
 9  of pharmacy may suspend, revoke or refuse to renew any
10  registration obtained by false representation or fraud, or
11  when the pharmacy for which the registration was made is
12  kept open for the transaction of business without a
13  registered pharmacist in charge thereof, or when the person
14  to whom registration was granted or his employees or other
15  persons under his supervision or control have been
16  convicted of a violation of W.S. 33-24-101 through
17  33-24-154. Before any registration may be revoked the
18  holder thereof is entitled to a hearing by the board of
19  pharmacy upon due notice of the time and place where the
20  hearing will be held. The accused may be represented by
21  legal counsel, is entitled to compulsory attendance of
22  witnesses and may appeal to the district court of the
23  county in which the pharmacy is situated, in accordance
24  with the Wyoming Administrative Procedure Act.

 

Page 11

 

 

 

 1 

 2         33-24-121.  Renewal license certificate; late fee;
 3  expiration upon failure to renew; reinstatement; continuing
 4  professional education requirement for renewal; reduction
 5  or exception determined by board.

 6 

 7         (e)  Upon receipt of a renewed license pursuant to
 8  subsection (a) of this section, the licensed pharmacy shall
 9  present evidence of the renewed license to the prescription
10  drug division for registration pursuant to  W.S. 9-2-2603.

11 

12         Section 3.

13 

14         (a)  There is appropriated from the general fund to
15  the account created for use by the prescription drug
16  division within the enterprise fund an amount of fifty-two
17  million five hundred thousand dollars ($52,500,000.00).

18 

19         (b)  Pursuant to W.S. 9-4-204 amounts authorized under
20  subsection (a) of this section to the account within the
21  enterprise fund for the prescription drug division shall be
22  paid back to the general fund by June 30, 2004.

23 

 

Page 12

 

 

 

 1  (c)  The prescription drug division is authorized
 2  sixteen (16) full-time employees for purposes of this act.

 3 

 4         Section 4.  This act is effective July 1, 2001.

 5 

 6                         (END)

 

Page 13