DAR File No. 40217
This rule was published in the March 15, 2016, issue (Vol. 2016, No. 6) of the Utah State Bulletin.
Commerce, Occupational and Professional Licensing
Pharmacy Practice Act Rule
Notice of Proposed Rule
DAR File No.: 40217
Filed: 02/22/2016 10:54:44 AM
Purpose of the rule or reason for the change:
The Division and the Utah State Board of Pharmacy are proposing these amendments. The purpose of this rule filing is to create the same exemption for licensure for device manufacturers as it currently applies to drug manufacturers. The current version of Subsection R156-17b-615(2) exempts a drug manufacturer from obtaining a Utah Class C pharmacy license if it is registered with the Food and Drug Administration (FDA) and only manufactures and distributes its own or co-licensed products. There is no exemption for FDA-registered medical device manufacturers. When Subsection R156-17b-615(2) was originally written, the definition of "drug" included "device". Subsequently, these terms were defined separately. Currently, device manufacturers must obtain a Class C pharmacy license, but drug manufacturers are exempted. This rule change will treat these two types of entities equally. It should also be noted that concurrent to this rule filing, there is another, separate rule filing that will modify Rule R156-17b, the Pharmacy Practice Act Rule. The proposed rule changes are filed separately due to the entities affected by the proposed changes being different. (DAR NOTE: The proposed amendment to Section R156-17b-614a is under DAR No. 40218 in this issue, March 15, 2016, of the Bulletin.)
Summary of the rule or change:
In Section R156-17b-102, the proposed amendments create separate definitions for "co-licensed partner" and "co-licensed product" in order to add clarification and to add "device" in the definition for "co-licensed product". A definition for "FDA-approved" is also added to this section. Also in this section, the United States Pharmacopeia (USP)/National Formulary(NF) books are updated to USP 39-NF 34, which will be effective on 05/01/2016. In Section R156-17b-615, amendments modify to exempt FDA-registered device manufacturers from obtaining a Class C pharmacy license (i.e. an entity that manufactures, produces, wholesales, or distributes drugs or devices). The proposed amendments include: 1) the term "device"; 2) products that are referred to as convenience kits, which contain certain drugs or materials with the device to ensure a health care provider has everything necessary when the device is needed for use; and 3) a reference to the federal rule under which a device manufacturer must register with the FDA.
State statutory or constitutional authorization for this rule:
- Section 58-17b-101
- Subsection 58-17b-601(1)
- Section 58-37-1
- Subsection 58-1-106(1)(a)
- Subsection 58-1-202(1)(a)
This rule or change incorporates by reference the following material:
- Updates United States Pharmacopeia-National Formulary (USP 39-NF34), published by United States Pharmacopeia, 05/01/2016
Anticipated cost or savings to:
the state budget:
The Division will incur minimal costs of approximately $75 to print and distribute the rule once the proposed amendments are made effective. Also, the Division will experience a revenue loss. The impact will be a loss of $200 per initial license application and $103 per biennial license renewal application not submitted. The Division is unable to estimate the number of entities that will no longer be required to submit a license application due to the proposed amendments but believes that number is small. It should also be noted that to maintain a subscription to the updated United States Pharmacopeia-National Formulary (USP-NF) books, the Division incurs a yearly cost of approximately $900. This amount is handled within the Division's current budget.
The proposed amendments apply only to those entities that manufacture and distribute medical devices. As a result, the proposed amendments do not apply to local governments.
The Division does not have sufficient information about device and drug manufacturers to determine whether any particular entity employs 50 or fewer people. Because drug and device manufacturers require highly technical manufacturing practices and must comply with numerous detailed laws and regulations, the Division believes that most such entities would employ more than 50 people.
persons other than small businesses, businesses, or local governmental entities:
The proposed amendments will reduce costs for medical device manufacturers and distributors by not: 1) requiring them to hire a drug specialist in all cases; 2) having to manage and administer state licensing requirements; and 3) paying licensing fees for a Class C pharmacy license in Utah. The overall savings cannot be quantified by the Division.
Compliance costs for affected persons:
The affected persons will experience a cost savings because they will not incur administrative costs to monitor state licensing when they are already complying for strict federal oversight by the FDA. Also Section R156-17b-615 currently requires Class C pharmacies that manufacture and distribute their own devices to hire a person experienced in pharmacy or dispensing, distribution, and recordkeeping of prescription drugs. This requirement is a wasteful financial burden for a device manufacturer or wholesaler that does not store or sell prescription drugs. The overall savings cannot be quantified by the Division. It should also be noted that to maintain a subscription to the updated United States Pharmacopeia-National Formulary (USP-NF) books, licensed pharmacies would incur a yearly cost of approximately $900.
Comments by the department head on the fiscal impact the rule may have on businesses:
This rule change creates an exemption so medical device manufacturers do not need to obtain a Class C pharmacy license. No fiscal impact to businesses is anticipated. This change will be cost-saving for included businesses, which will now not need to obtain a pharmacy license and monitor state compliance.
Francine A. Giani, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:Commerce
Occupational and Professional Licensing
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316
Direct questions regarding this rule to:
- Dane Ishihara at the above address, by phone at 801-530-7632, by FAX at 801-530-6511, or by Internet E-mail at firstname.lastname@example.org
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
Interested persons may attend a public hearing regarding this rule:
- 03/22/2016 08:30 AM, Heber Wells Bldg, 160 E 300 S, Conference Room 474, Salt Lake City, UT
This rule may become effective on:
Mark Steinagel, Director
R156. Commerce, Occupational and Professional Licensing.
R156-17b. Pharmacy Practice Act Rule.
In addition to the definitions in Title 58, Chapters 1 and 17b, as used in Title 58, Chapters 1 and 17b or this rule:
(1) "Accredited by ASHP" means a program that:
(a) was accredited by the ASHP on the day the applicant for licensure completed the program; or
(b) was in ASHP candidate status on the day the applicant for licensure completed the program.
(2) "ACPE" means the American Council on Pharmaceutical Education or Accreditation Council for Pharmacy Education.
(3) "Analytical laboratory":
(a) means a facility in possession of prescription drugs for the purpose of analysis; and
(b) does not include a laboratory possessing prescription drugs used as standards and controls in performing drug monitoring or drug screening analysis if the prescription drugs are pre-diluted in a human or animal body fluid, human or animal body fluid components, organic solvents, or inorganic buffers at a concentration not exceeding one milligram per milliliter when labeled or otherwise designated as being for in-vitro diagnostic use.
(4) "ASHP" means the American Society of Health System Pharmacists.
(5) "Authorized distributor of record" means a pharmaceutical wholesaler with whom a manufacturer has established an ongoing relationship to distribute the manufacturer's prescription drugs. An ongoing relationship is deemed to exist between such pharmaceutical wholesaler and a manufacturer, as defined in Section 1504 of the Internal Revenue Code, when the pharmaceutical wholesaler has a written agreement currently in effect with the manufacturer evidencing such ongoing relationship, and the pharmaceutical wholesaler is listed on the manufacturer's current list of authorized distributors of record.
(6) "Authorized personnel" means any person who is a part of the pharmacy staff who participates in the operational processes of the pharmacy and contributes to the natural flow of pharmaceutical care.
(7) "Centralized Prescription Filling" means the filling by a pharmacy of a request from another pharmacy to fill or refill a prescription drug order.
(8) "Centralized Prescription Processing" means the processing by a pharmacy of a request from another pharmacy to fill or refill a prescription drug order or to perform processing functions such as dispensing, drug utilization review (DUR), claims adjudication, refill authorizations, and therapeutic interventions.
(9) "Chain pharmacy warehouse" means a physical location for prescription drugs that acts as a central warehouse and performs intracompany sales or transfers of the prescription drugs to a group of chain pharmacies that have the same common ownership and control.
"Co-licensed partner or product" means an
instance where two or more parties have the right to engage in the
manufacturing and/or marketing of a prescription drug, consistent
with FDA's implementation of the Prescription Drug Marketing
11]) "Cooperative pharmacy warehouse" means a
physical location for drugs that acts as a central warehouse and is
owned, operated or affiliated with a group purchasing organization
(GPO) or pharmacy buying cooperative and distributes those drugs
exclusively to its members.
12]) "Counterfeit prescription drug" has the
meaning given that term in 21 USC 321(g)(2), including any
13]) "Counterfeiting" means engaging in activities
that create a counterfeit prescription drug.
14]) "Dispense", as defined in Subsection
58-17b-102(22), does not include transferring medications for a
patient from a legally dispensed prescription for that particular
patient into a daily or weekly drug container to facilitate the
patient taking the correct medication.
15]) "Device" means an instrument, apparatus,
implement, machine, contrivance, implant, or other similar or
related article, including any component part or accessory, which
is required under Federal law to bear the label, "Caution:
Federal or State law requires dispensing by or on the order of a
16]) "DMP" means a dispensing medical practitioner
licensed under Section 58-17b, Part 8.
17]) "DMP designee" means an individual, acting
under the direction of a DMP, who:
(a)(i) holds an active health care professional license under one of the following chapters:
(A) Chapter 67, Utah Medical Practice Act;
(B) Chapter 68, Utah Osteopathic Medical Practice Act;
(C) Chapter 70a, Physician Assistant Act;
(D) Chapter 31b, Nurse Practice Act;
(E) Chapter 16a, Utah Optometry Practice Act;
(F) Chapter 44a, Nurse Midwife Practice Act; or
(G) Chapter 17b, Pharmacy Practice Act; or
(ii) is a medical assistant as defined in Subsection 58-67-102 (9);
(b) meets requirements established in Subsection 58-17b-803 (4)(c); and
(c) can document successful completion of a formal or on-the-job dispensing training program that meets standards established in Section R156-17b-622.
18]) "DMPIC" means a dispensing medical
practitioner licensed under Section 58-17b, Part 8 who is
designated by a dispensing medical practitioner clinic pharmacy to
be responsible for activities of the pharmacy.
19]) "Drop shipment" means the sale of a
prescription drug to a pharmaceutical wholesaler by the
manufacturer of the drug; by the manufacturer's co-licensed
product partner, third party logistics provider, or exclusive
distributor; or by an authorized distributor of record that
purchased the product directly from the manufacturer or from one of
these entities; whereby:
(a) the pharmaceutical wholesale distributor takes title to but not physical possession of such prescription drug;
(b) the pharmaceutical wholesale distributor invoices the pharmacy, pharmacy warehouse, or other person authorized by law to dispense to administer such drug; and
(c) the pharmacy, pharmacy warehouse, or other person authorized by law to dispense or administer such drug receives delivery of the prescription drug directly from the manufacturer; from the co-licensed product partner, third party logistics provider, or exclusive distributor; or from an authorized distributor of record that purchases the product directly from the manufacturer or from one of these entities.
20]) "Drug therapy management" means the review of
a drug therapy regimen of a patient by one or more pharmacists for
the purpose of evaluating and rendering advice to one or more
practitioners regarding adjustment of the regimen.
21]) "Drugs", as used in this rule, means drugs or
22]) "Durable medical equipment" or "DME"
means equipment that:
(a) can withstand repeated use;
(b) is primarily and customarily used to serve a medical purpose;
(c) generally is not useful to a person in the absence of an illness or injury;
(d) is suitable for use in a health care facility or in the home; and
(e) may include devices and medical supplies.
23]) "Entities under common administrative control"
means an entity holds the power, actual as well as legal to
influence the management, direction, or functioning of a business
24]) "Entities under common ownership" means entity
assets are held indivisibly rather than in the names of individual
25]) "ExCPT", as used in this rule, means the Exam
for the Certification of Pharmacy Technicians.
26]) "FDA" means the United States Food and Drug
Administration and any successor agency.
27]) "High-risk, medium-risk, and low-risk drugs"
refers to the risk to a patient's health from compounding
sterile preparations, as referred to in USP-NF Chapter 797, for
details of determining risk level.
28]) "Hospice facility pharmacy" means a pharmacy
that supplies drugs to patients in a licensed healthcare facility
for terminal patients.
29]) "Hospital clinic pharmacy" means a pharmacy
that is located in an outpatient treatment area where a pharmacist
or pharmacy intern is compounding, admixing, or dispensing
prescription drugs, and where:
(a) prescription drugs or devices are under the control of the pharmacist, or the facility for administration to patients of that facility;
(b) prescription drugs or devices are dispensed by the pharmacist or pharmacy intern; or
(c) prescription drugs are administered in accordance with the order of a practitioner by an employee or agent of the facility.
30]) "Legend drug" or "prescription drug"
means any drug or device that has been determined to be unsafe for
self-medication or any drug or device that bears or is required to
bear the legend:
(a) "Caution: federal law prohibits dispensing without prescription";
(b) "Caution: federal law restricts this drug to use by or on the order of a licensed veterinarian"; or
(c) "Rx only".
31]) "Maintenance medications" means medications
the patient takes on an ongoing basis.
32]) "Manufacturer's exclusive distributor"
means an entity that contracts with a manufacturer to provide or
coordinate warehousing, distribution, or other services on behalf
of a manufacturer and who takes title to that manufacturer's
prescription drug, but who does not have general responsibility to
direct the drug's sale or disposition. Such manufacturer's
exclusive distributor shall be licensed as a pharmaceutical
wholesaler under this chapter and be an "authorized
distributor of record" to be considered part of the
"normal distribution channel".
33]) "Medical supplies" means items for medical use
that are suitable for use in a health care facility or in the home
and that are disposable or semi-disposable and are
34]) "MPJE" means the Multistate Jurisprudence
35]) "NABP" means the National Association of
Boards of Pharmacy.
36]) "NAPLEX" means North American Pharmacy
37]) "Normal distribution channel" means a chain of
custody for a prescription drug that goes directly, by drop
shipment as defined in Subsection (19), or via intracompany
transfer from a manufacturer; or from the manufacturer's
co-licensed partner, third-party logistics provider, or the
exclusive distributor to:
(a) a pharmacy or other designated persons authorized under this chapter to dispense or administer prescription drugs to a patient;
(b) a chain pharmacy warehouse that performs intracompany sales or transfers of such drugs to a group of pharmacies under common ownership and control;
(c) a cooperative pharmacy warehouse to a pharmacy that is a member of the pharmacy buying cooperative or GPO to a patient;
(d) an authorized distributor of record, and then to either a pharmacy or other designated persons authorized under this chapter to dispense or administer such drug for use by a patient;
(e) an authorized distributor of record, and then to a chain pharmacy warehouse that performs intracompany sales or transfers of such drugs to a group of pharmacies under common ownership and control; or
(f) an authorized distributor of record to another authorized distributor of record to a licensed pharmaceutical facility or a licensed healthcare practitioner authorized under this chapter to dispense or administer such drug for use by a patient.
38]) "Other health care facilities" means any
entity as defined in Utah Code Subsection 26-21-2(13)(a) or Utah
Administrative Code R432-1-3(55).
39]) "Parenteral" means a method of drug delivery
injected into body tissues but not via the gastrointestinal
40]) "Patient's agent" means a:
(a) relative, friend or other authorized designee of the patient involved in the patient's care; or
(b) if requested by the patient or the individual under Subsection (40)(a), one of the following facilities:
(i) an office of a licensed prescribing practitioner in Utah;
(ii) a long-term care facility where the patient resides; or
(iii) a hospital, office, clinic or other medical facility that provides health care services.
41]) "Pedigree" means a document or electronic file
containing information that records each distribution of any given
42]) "PIC", as used in this rule, means the
43]) "Prepackaged" or "Prepackaging"
means the act of transferring a drug, manually or by use of an
automated pharmacy system, from a manufacturer's or
distributor's original container to another container in
advance of receiving a prescription drug order or for a
patient's immediate need for dispensing by a pharmacy or
practitioner authorized to dispense in the establishment where the
44]) "Prescription files" means all hard-copy and
electronic prescriptions that includes pharmacist notes or
technician notes, clarifications or information written or attached
that is pertinent to the prescription.
45]) "PTCB" means the Pharmacy Technician
46]) "Qualified continuing education", as used in
this rule, means continuing education that meets the standards set
forth in Section R156-17b-309.
47]) "Refill" means to fill again.
48]) "Repackage" means repackaging or otherwise
changing the container, wrapper, or labeling to further the
distribution of a prescription drug, excluding that completed by
the pharmacist or DMP responsible for dispensing the product to a
49]) "Research facility" means a facility where
research takes place that has policies and procedures describing
50]) "Reverse distributor" means a person or
company that retrieves unusable or outdated drugs from a pharmacy
for the purpose of removing those drugs from stock and destroying
51]) "Sterile products preparation facility" means
any facility, or portion of the facility, that compounds sterile
products using aseptic technique.
52]) "Supervisor" means a licensed pharmacist or
DMP in good standing with the Division.
53]) "Third party logistics provider" means anyone
who contracts with a prescription drug manufacturer to provide or
coordinate warehousing, distribution, or other similar services on
behalf of a manufacturer, but does not take title to the
prescription drug or have any authoritative control over the
prescription drug's sale. Such third party logistics provider
shall be licensed as a pharmaceutical wholesaler under this chapter
and be an "authorized distributor of record" to be
considered part of the "normal distribution channel".
54]) "Unauthorized personnel" means any person who
is not participating in the operational processes of the pharmacy
who in some way would interrupt the natural flow of pharmaceutical
55]) "Unit dose" means the ordered amount of a drug
in a dosage form prepared for a one-time administration to an
individual and indicates the name, strength, lot number and beyond
use date for the drug.
56]) "Unprofessional conduct", as defined in Title
58, Chapters 1 and 17b, is further defined, in accordance with
Subsection 58-1-203(1)(e), in Section R156-17b-502.
57]) "USP-NF" means the United States
Pharmacopeia-National Formulary (USP [ 38]-NF [ 33]), [ 2015] edition, which is official from May 1, [ 2015] through Supplement 2, dated December 1, 2015, which is
hereby adopted and incorporated by reference.
58]) "Wholesaler" means a wholesale distributor who
supplies or distributes drugs or medical devices that are
restricted by federal law to sales based on the order of a
physician to a person other than the consumer or patient.
59]) "Wholesale distribution" means the
distribution of drugs to persons other than consumers or patients,
but does not include:
(a) intracompany sales or transfers;
(b) the sale, purchase, distribution, trade, or other transfer of a prescription drug for emergency medical reasons, as defined under 21 CFR 203.3(m), including any amendments thereto;
(c) the sale, purchase, or trade of a drug pursuant to a prescription;
(d) the distribution of drug samples;
(e) the return or transfer of prescription drugs to the original manufacturer, original wholesale distributor, reverse distributor, or a third party returns processor;
(f) the sale, purchase, distribution, trade, or transfer of a prescription drug from one authorized distributor of record to one additional authorized distributor of record during a time period for which there is documentation from the manufacturer that the manufacturer is able to supply a prescription drug and the supplying authorized distributor of record states in writing that the prescription drug being supplied had until that time been exclusively in the normal distribution channel;
(g) the sale, purchase or exchange of blood or blood components for transfusions;
(h) the sale, transfer, merger or consolidation of all or part of the business of a pharmacy;
(i) delivery of a prescription drug by a common carrier; or
(j) other transactions excluded from the definition of "wholesale distribution" under 21 CFR 203.3 (cc), including any amendments thereto.
R156-17b-615. Operating Standards - Class C Pharmacy - Pharmaceutical Wholesaler/Distributor and Pharmaceutical Manufacturer.
In accordance with Subsections 58-17b-102(47) and 58-17b-601(1), the operating standards for Class C pharmacies designated as pharmaceutical wholesaler/distributor and pharmaceutical manufacturer licensees includes the following:
(1) Each pharmaceutical wholesaler or manufacturer that distributes or manufactures drugs or medical devices in Utah shall be licensed by the Division. A separate license shall be obtained for each separate location engaged in the distribution or manufacturing of prescription drugs. Business names cannot be identical to the name used by another unrelated wholesaler licensed to purchase drugs and devices in Utah.
(2) Manufacturers distributing only their
prescription drugs or co-licensed product shall satisfy
this requirement by registering their establishment with the
Federal Food and Drug Administration pursuant to 21 CFR Part 207
and submitting the information required by 21 CFR Part 205,
including any amendments thereto, to the Division.]
(3) An applicant for licensure as a pharmaceutical wholesale distributor shall provide the following minimum information:
(a) All trade or business names used by the licensee (including "doing business as" and "formerly known as");
(b) Name of the owner and operator of the license as follows:
(i) if a person, the name, business address, social security number and date of birth;
(ii) if a partnership, the name, business address, and social security number and date of birth of each partner, and the partnership's federal employer identification number;
(iii) if a corporation, the name, business address, social security number and date of birth, and title of each corporate officer and director, the corporate names, the name of the state of incorporation, federal employer identification number, and the name of the parent company, if any, but if a publicly traded corporation, the social security number and date of birth for each corporate officer shall not be required;
(iv) if a sole proprietorship, the full name, business address, social security number and date of birth of the sole proprietor and the name and federal employer identification number of the business entity;
(v) if a limited liability company, the name of each member, social security number of each member, the name of each manager, the name of the limited liability company and federal employer identification number, and the name of the state where the limited liability company was organized; and
(c) any other relevant information required by the Division.
(4) The licensed facility need not be under the supervision of a licensed pharmacist, but shall be under the supervision of a designated representative who meets the following criteria:
(a) is at least 21 years of age;
(b) has been employed full time for at least three years in a pharmacy or with a pharmaceutical wholesaler in a capacity related to the dispensing and distribution of, and recordkeeping related to prescription drugs;
(c) is employed by the applicant full time in a managerial level position;
(d) is actively involved in and aware of the actual daily operation of the pharmaceutical wholesale distribution;
(e) is physically present at the facility during regular business hours, except when the absence of the designated representative is authorized, including but not limited to, sick leave and vacation leave; and
(f) is serving in the capacity of a designated representative for only one licensee at a time.
(5) The licensee shall provide the name, business address, and telephone number of a person to serve as the designated representative for each facility of the pharmaceutical wholesaler that engages in the distribution of drugs or devices.
(6) All pharmaceutical wholesalers and manufacturer shall publicly display or have readily available all licenses and the most recent inspection report administered by the Division.
(7) All Class C pharmacies shall:
(a) be of suitable size and construction to facilitate cleaning, maintenance and proper operations;
(b) have storage areas designed to provide adequate lighting, ventilation, sanitation, space, equipment and security conditions;
(c) have the ability to control temperature and humidity within tolerances required by all prescription drugs and prescription drug precursors handled or used in the distribution or manufacturing activities of the applicant or licensee;
(d) provide for a quarantine area for storage of prescription drugs and prescription drug precursors that are outdated, damaged, deteriorated, misbranded, adulterated, opened or unsealed containers that have once been appropriately sealed or closed or in any other way unsuitable for use or entry into distribution or manufacturing;
(e) be maintained in a clean and orderly condition; and
(f) be free from infestation by insects, rodents, birds or vermin of any kind.
(8) Each facility used for wholesale drug distribution or manufacturing of prescription drugs shall:
(a) be secure from unauthorized entry;
(b) limit access from the outside to a minimum in conformance with local building codes, life and safety codes and control access to persons to ensure unauthorized entry is not made;
(c) limit entry into areas where prescription drugs, prescription drug precursors, or prescription drug devices are held to authorized persons who have a need to be in those areas;
(d) be well lighted on the outside perimeter;
(e) be equipped with an alarm system to permit detection of entry and notification of appropriate authorities at all times when the facility is not occupied for the purpose of engaging in distribution or manufacturing of prescription drugs; and
(f) be equipped with security measures, systems and procedures necessary to provide reasonable security against theft and diversion of prescription drugs or alteration or tampering with computers and records pertaining to prescription drugs or prescription drug precursors.
(9) Each facility shall provide the storage of prescription drugs, prescription drug precursors, and prescription drug devices in accordance with the following:
(a) all prescription drugs and prescription drug precursors shall be stored at appropriate temperature, humidity and other conditions in accordance with labeling of such prescription drugs or prescription drug precursors or with requirements in the USP-NF;
(b) if no storage requirements are established for a specific prescription drug, prescription drug precursor, or prescription drug devices, the products shall be held in a condition of controlled temperature and humidity as defined in the USP-NF to ensure that its identity, strength, quality and purity are not adversely affected; and
(c) there shall be established a system of manual, electromechanical or electronic recording of temperature and humidity in the areas in which prescription drugs, prescription drug precursors, and prescription drug devices are held to permit review of the record and ensure that the products have not been subjected to conditions that are outside of established limits.
(10) Each person who is engaged in pharmaceutical wholesale distribution of prescription drugs for human use that leave, or have ever left, the normal distribution channel shall, before each pharmaceutical wholesale distribution of such drug, provide a pedigree to the person who receives such drug. A retail pharmacy or pharmacy warehouse shall comply with the requirements of this section only if the pharmacy engages in pharmaceutical wholesale distribution of prescription drugs. The pedigree shall:
(a) include all necessary identifying information concerning each sale in the chain of distribution of the product from the manufacturer, through acquisition and sale by any pharmaceutical wholesaler, until sale to a pharmacy or other person dispensing or administering the prescription drug. At a minimum, the necessary chain of distribution information shall include:
(i) name, address, telephone number, and if available, the email address of each owner of the prescription drug, and each pharmaceutical wholesaler of the prescription drug;
(ii) name and address of each location from which the product was shipped, if different from the owner's;
(iii) transaction dates;
(iv) name of the prescription drug;
(v) dosage form and strength of the prescription drug;
(vi) size of the container;
(vii) number of containers;
(viii) lot number of the prescription drug;
(ix) name of the manufacturer of the finished dose form; and
(x) National Drug Code (NDC) number.
(b) be maintained by the purchaser and the pharmaceutical wholesaler for five years from the date of sale or transfer and be available for inspection or use upon a request of an authorized officer of the law.
(11) Each facility shall comply with the following requirements:
(a) in general, each person who is engaged in pharmaceutical wholesale distribution of prescription drugs shall establish and maintain inventories and records of all transactions regarding the receipt and distribution or other disposition of the prescription drugs. These records shall include pedigrees for all prescription drugs that leave the normal distribution channel;
(b) upon receipt, each outside shipping container containing prescription drugs, prescription drug precursors, or prescription drug devices shall be visibly examined for identity and to prevent the acceptance of prescription drugs, prescription drug precursors, or prescription drug devices that are contaminated, reveal damage to the containers or are otherwise unfit for distribution:
(i) prescription drugs, prescription drug precursors, or prescription drug devices that are outdated, damaged, deteriorated, misbranded, adulterated or in any other way unfit for distribution or use in manufacturing shall be quarantined and physically separated from other prescription drugs, prescription drug precursors or prescription drug devices until they are appropriately destroyed or returned to their supplier; and
(ii) any prescription drug or prescription drug precursor whose immediate sealed or outer secondary sealed container has been opened or in any other way breached shall be identified as such and shall be quarantined and physically separated from other prescription drugs and prescription drug precursors until they are appropriately destroyed or returned to their supplier;
(c) each outgoing shipment shall be carefully inspected for identity of the prescription drug products or devices and to ensure that there is no delivery of prescription drugs or devices that have been damaged in storage or held under improper conditions:
(i) if the conditions or circumstances surrounding the return of any prescription drug or prescription drug precursor cast any doubt on the product's safety, identity, strength, quality or purity, then the drug shall be appropriately destroyed or returned to the supplier, unless examination, testing or other investigation proves that the product meets appropriate and applicable standards related to the product's safety, identity, strength, quality and purity;
(ii) returns of expired, damaged, recalled, or otherwise non-saleable prescription drugs shall be distributed by the receiving pharmaceutical wholesale distributor only to the original manufacturer or a third party returns processor that is licensed as a pharmaceutical wholesale distributor under this chapter;
(iii) returns or exchanges of prescription drugs (saleable or otherwise), including any redistribution by a receiving pharmaceutical wholesaler, shall not be subject to the pedigree requirements, so long as they are exempt from the pedigree requirement under the FDA's Prescription Drug Marketing Act guidance or regulations; and
(d) licensee under this Act and pharmacies or other persons authorized by law to dispense or administer prescription drugs for use by a patient shall be accountable for administering their returns process and ensuring that all aspects of their operation are secure and do not permit the entry of adulterated and counterfeit prescription drugs.
(12) A manufacturer or pharmaceutical wholesaler shall furnish prescription drugs only to a person licensed by the Division or to another appropriate state licensing authority to possess, dispense or administer such drugs for use by a patient.
(13) Prescription drugs furnished by a manufacturer or pharmaceutical wholesaler shall be delivered only to the business address of a person described in Subsections R156-17b-102(19)(c) and R156-17b-615(13), or to the premises listed on the license, or to an authorized person or agent of the licensee at the premises of the manufacturer or pharmaceutical wholesaler if the identity and authority of the authorized agent is properly established.
(14) Each facility shall establish and maintain records of all transactions regarding the receipt and distribution or other disposition of prescription drugs and prescription drug precursors and shall make inventories of prescription drugs and prescription drug precursors and required records available for inspection by authorized representatives of the federal, state and local law enforcement agencies in accordance with the following:
(a) there shall be a record of the source of the prescription drugs or prescription drug precursors to include the name and principal address of the seller or transferor and the address of the location from which the drugs were shipped;
(b) there shall be a record of the identity and quantity of the prescription drug or prescription drug precursor received, manufactured, distributed or shipped or otherwise disposed of by specific product and strength;
(c) there shall be a record of the dates of receipt and distribution or other disposal of any product;
(d) there shall be a record of the identity of persons to whom distribution is made to include name and principal address of the receiver and the address of the location to which the products were shipped;
(e) inventories of prescription drugs and prescription drug precursors shall be made available during regular business hours to authorized representatives of federal, state and local law enforcement authorities;
(f) required records shall be made available for inspection during regular business hours to authorized representatives of federal, state and local law enforcement authorities and such records shall be maintained for a period of two years following disposition of the products; and
(g) records that are maintained on site or immediately retrievable from computer or other electronic means shall be made readily available for authorized inspection during the retention period; or if records are stored at another location, they shall be made available within two working days after request by an authorized law enforcement authority during the two year period of retention.
(15) Each facility shall establish, maintain and adhere to written policies and procedures that shall be followed for the receipt, security, storage, inventory, manufacturing, distribution or other disposal of prescription drugs or prescription drug precursors, including policies and procedures for identifying, recording and reporting losses or thefts, and for correcting all errors and inaccuracies in inventories. In addition, the policies shall include the following:
(a) a procedure whereby the oldest approved stock of a prescription drug or precursor product is distributed or used first with a provision for deviation from the requirement if such deviation is temporary and appropriate;
(b) a procedure to be followed for handling recalls and withdrawals of prescription drugs adequate to deal with recalls and withdrawals due to:
(i) any action initiated at the request of the FDA or other federal, state or local law enforcement or other authorized administrative or regulatory agency;
(ii) any voluntary action to remove defective or potentially defective drugs from the market; or
(iii) any action undertaken to promote public health, safety or welfare by replacement of existing product with an improved product or new package design;
(c) a procedure to prepare for, protect against or handle any crisis that affects security or operation of any facility in the event of strike, fire, flood or other natural disaster or other situations of local, state or national emergency;
(d) a procedure to ensure that any outdated prescription drugs or prescription drug precursors shall be segregated from other drugs or precursors and either returned to the manufacturer, other appropriate party or appropriately destroyed;
(e) a procedure for providing for documentation of the disposition of outdated, adulterated or otherwise unsafe prescription drugs or prescription drug precursors and the maintenance of that documentation available for inspection by authorized federal, state or local authorities for a period of five years after disposition of the product;
(f) a procedure for identifying, investigating and reporting significant drug inventory discrepancies (involving counterfeit drugs suspected of being counterfeit, contraband, or suspect of being contraband) and reporting of such discrepancies within three (3) business days to the Division and/or appropriate federal or state agency upon discovery of such discrepancies; and
(g) a procedure for reporting criminal or suspected criminal activities involving the inventory of drugs and devices to the Division, FDA and if applicable, Drug Enforcement Administration (DEA), within three (3) business days.
(16) Each facility shall establish, maintain and make available for inspection by authorized federal, state and local law enforcement authorities, lists of all officers, directors, managers and other persons in charge which lists shall include a description of their duties and a summary of their background and qualifications.
(17) Each facility shall comply with laws including:
(a) operating within applicable federal, state and local laws and regulations;
(b) permitting the state licensing authority and authorized federal, state and local law enforcement officials, upon presentation of proper credentials, to enter and inspect their premises and delivery vehicles and to audit their records and written operating policies and procedures, at reasonable times and in a reasonable manner, to the extent authorized by law; and
(c) obtaining a controlled substance license from the Division and registering with the Drug Enforcement Administration (DEA) if they engage in distribution or manufacturing of controlled substances and shall comply with all federal, state and local regulations applicable to the distribution or manufacturing of controlled substances.
(18) Each facility shall be subject to and shall abide by applicable federal, state and local laws that relate to the salvaging or reprocessing of prescription drug products.
(19) A Class C pharmacy shall not be located in the same building as a separately licensed Class A, B, D, or E pharmacy unless the two pharmacies are located in different suites as recognized by the United States Postal Service. Two Class C pharmacies may be located at the same address in the same suite if the pharmacies:
(a) are under the same ownership;
(b) have processes and systems for separating and securing all aspects of the operation; and
(c) have traceability with a clear audit trail that distinguishes a pharmacy's purchases and distributions.
KEY: pharmacists, licensing, pharmacies
Date of Enactment or Last Substantive Amendment: [
December 1, 2015]
Notice of Continuation: January 5, 2015
Authorizing, and Implemented or Interpreted Law: 58-17b-101; 58-17b-601(1); 58-37-1; 58-1-106(1)(a); 58-1-202(1)(a)
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2016/b20160315.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Dane Ishihara at the above address, by phone at 801-530-7632, by FAX at 801-530-6511, or by Internet E-mail at email@example.com. For questions about the rulemaking process, please contact the Division of Administrative Rules.