HB0166 - Prescription drug division.
State of Wyoming
HOUSE BILL NO. HB0166
Prescription drug division.
Sponsored by: Representative(s) Huckfeldt, Iekel, Meuli,
Osborn, Paseneaux, Robinson, Ross, Tipton,
Warren and Wostenberg
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.
15 Be It Enacted by the Legislature of the State of Wyoming:
4 ARTICLE 26
5 WYOMING PRESCRIPTION DRUG DIVISION
7 9-2-2601. Definitions.
9 (a) As used in this article:
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.
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;
2 (iii) "This
act" means W.S. 9-2-2601 through
5 9-2-2602. Wyoming prescription drug
6 division administrator; duties.
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
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.
21 9-2-2603. Wholesale license for sale
22 drugs; fee.
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.
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.
19 9-6-2604. Powers and duties.
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
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.
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.
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.
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.
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.
7 9-6-2605. Disposition of revenue and fees.
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).
20 9-6-2606. Purchase and sale of prescription drugs.
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
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.
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.
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.
20 9-6-2607. Sales prices for licensed pharmacy.
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
1 prescription drug
division. The price shall be
2 to ensure an adequate profit for the pharmacies and be at
3 the lowest reasonable price to the consumer.
5 9-6-2608. Inspections and
examinations; failure to
6 permit entry.
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.
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.
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
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.
5 9-6-2609. Sales to violators
prohibited; hearing and
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.
20 9-6-2610. Mandatory participation.
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.
2 9-6-2611. Confiscation authorized;
3 seizure permitted.
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.
17 9-4-204. Funds established; use thereof.
19 (s) There is created an account within the enterprise
20 fund for use by the prescription drug division.
22 33-24-113. Licensing of commercial
23 operating pharmacy; exceptions; display of license;
24 suspension, revocation or refusal to renew.
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.
2 33-24-121. Renewal license certificate;
3 expiration upon failure to renew; reinstatement; continuing
4 professional education requirement for renewal; reduction
5 or exception determined by board.
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.
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).
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.
1 (c) The prescription
drug division is authorized
2 sixteen (16) full-time employees for purposes of this act.
4 Section 4. This act is effective July 1, 2001.