House File 325 - Introduced HOUSE FILE BY CARROLL Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act creating a prescription drug donation and redispensing 2 pilot program, and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2240YH 81 5 pf/sh/8 PAG LIN 1 1 Section 1. NEW SECTION. 135M.1 PURPOSE. 1 2 The purpose of this chapter is to improve the health of 1 3 low=income Iowans through a prescription drug donation and 1 4 redispensing program that authorizes charitable clinic 1 5 pharmacies to redispense prescription drugs that would 1 6 otherwise be destroyed. 1 7 Sec. 2. NEW SECTION. 135M.2 DEFINITIONS. 1 8 As used in this chapter, unless the context otherwise 1 9 requires: 1 10 1. "Charitable clinic" means a charitable nonprofit 1 11 corporation or facility organized under chapter 504 or 504A 1 12 that meets all of the following criteria: 1 13 a. Is described in the federal Internal Revenue Code, 26 1 14 U.S.C. } 501(c)(3), and is exempt from income taxation under 1 15 26 U.S.C. } 501(a). 1 16 b. Provides advice, counseling, diagnosis, treatment, 1 17 surgery, care, or services relating to the preservation or 1 18 maintenance of health on an outpatient basis for a period of 1 19 less than twenty=four consecutive hours per day to persons not 1 20 residing in or confined to the facility. 1 21 c. Charges an administrative fee or requests a donation 1 22 not to exceed ten dollars per visit. 1 23 d. Has a licensed outpatient pharmacy. 1 24 2. "Charitable clinic pharmacy" means a pharmacy at a site 1 25 where prescriptions are dispensed by a charitable clinic free 1 26 of charge to appropriately screened and qualified indigent 1 27 patients. 1 28 3. "Controlled substance" means the same as defined in 1 29 section 155A.3. 1 30 4. "Department" means the Iowa department of public 1 31 health. 1 32 5. "Indigent" means a person with an income that is below 1 33 two hundred percent of the federal poverty level as defined by 1 34 the most recently revised poverty income guidelines published 1 35 by the United States department of health and human services. 2 1 6. "Nursing facility" means the same as defined in section 2 2 135C.1. 2 3 7. "Prescription drug" means the same as defined in 2 4 section 155A.3, but does not include controlled substances. 2 5 8. "Proper transfer" means the storage, handling, and 2 6 distribution of a prescription drug in accordance with its 2 7 label and in its dispensed, sealed, tamper=evident, single= 2 8 user unit. 2 9 Sec. 3. NEW SECTION. 135M.3 PRESCRIPTION DRUG DONATION 2 10 AND REDISPENSING PILOT PROGRAM. 2 11 1. The Iowa department of public health, in cooperation 2 12 with the board of pharmacy examiners, shall establish a pilot 2 13 program, consistent with public health and safety, to provide 2 14 for the proper transfer of unused prescription drugs from 2 15 nursing facilities to charitable clinic pharmacies for the 2 16 purpose of redistributing the prescription drugs to indigent 2 17 individuals. 2 18 2. Participation in the program by nursing facilities, 2 19 charitable clinics, charitable clinic pharmacies, drug 2 20 manufacturers, and individuals shall be voluntary. 2 21 Sec. 4. NEW SECTION. 135M.4 PROGRAM REQUIREMENTS == 2 22 RULES. 2 23 The department shall adopt rules, in cooperation with the 2 24 board of pharmacy examiners, to provide for all of the 2 25 following: 2 26 1. Specific requirements for a charitable clinic pharmacy 2 27 to qualify for participation in and to participate in the 2 28 pilot program. 2 29 2. Contract forms to be used by charitable clinics and 2 30 nursing facilities in entering into contractual agreements 2 31 under the program. 2 32 3. Forms and procedures for authorization of individuals 2 33 to physically transfer the prescription drugs from a nursing 2 34 facility to a charitable clinic. 2 35 4. Forms and procedures to authorize a donor to donate 3 1 unused prescription drugs and to consent to voluntarily 3 2 donating the prescription drugs. 3 3 5. Waiver of liability forms to be signed by indigent 3 4 individuals receiving prescription drugs under the program. 3 5 Sec. 5. NEW SECTION. 135M.5 DONATIONS OF UNUSED 3 6 PRESCRIPTION DRUGS == REDISPENSING. 3 7 1. A charitable clinic may accept prescription drugs 3 8 obtained from a nursing facility for relabeling and 3 9 redispensing by the charitable clinic pharmacy free of charge 3 10 and pursuant to a valid prescription order to an indigent 3 11 patient. 3 12 2. The donor resident of the nursing facility shall be 3 13 considered the owner of the prescription drug and entitled to 3 14 donate the prescription drug for use by a charitable clinic. 3 15 3. a. A nursing facility may enter into a contract with 3 16 any charitable clinic for the transfer of prescription drugs 3 17 under this section. Prescription drugs shall not be 3 18 transferred under this section without such contract. 3 19 b. A contract entered into under this subsection shall be 3 20 approved by the board of pharmacy examiners, in cooperation 3 21 with the department. 3 22 c. A contract entered into under this subsection shall 3 23 specify procedures for ensuring a safe chain of custody to 3 24 protect the safety of all transferred prescription drugs. 3 25 d. The contract may specify that the charitable clinic 3 26 will do one of the following: 3 27 (1) Define a specified set of prescription drugs that will 3 28 be transferred from the nursing facility to the charitable 3 29 clinic. 3 30 (2) Periodically request the transfer of particular 3 31 prescription drugs. 3 32 (3) Receive all prescription drugs that the nursing 3 33 facility is authorized to transfer under this chapter. 3 34 (4) Make such other provisions for transfer of 3 35 prescription drugs as may be approved by the board of pharmacy 4 1 examiners. 4 2 e. The pharmacist in charge of a charitable clinic shall 4 3 determine the description of the prescription drugs to be 4 4 included in the contract. 4 5 4. Donations of prescription drugs to a charitable clinic 4 6 shall meet all of the following requirements: 4 7 a. Only prescription drugs in their original sealed and 4 8 tamper=evident packaging shall be accepted. However, 4 9 prescription drugs in single=unit doses or blister packs with 4 10 the outside packaging opened may be accepted if the single= 4 11 unit dose packaging remains intact. 4 12 b. The pharmacist of the charitable clinic pharmacy 4 13 determines that the prescription drug is not adulterated or 4 14 misbranded and is safe to redispense. 4 15 c. If the integrity of a prescription drug cannot be 4 16 assured, the prescription drug is not accepted for 4 17 redispensing by the pharmacist of the charitable clinic 4 18 pharmacy. 4 19 d. The prescription drugs are physically transferred from 4 20 the nursing facility to a charitable clinic pharmacy by a 4 21 person authorized by the board of pharmacy examiners to 4 22 transfer the prescription drugs for the charitable clinic. 4 23 e. The donor executes a form stating that the donor is the 4 24 owner of the prescription drugs and intends to voluntarily 4 25 donate them to a charitable clinic pharmacy and the nursing 4 26 facility in which the donor resides retains the donor form. 4 27 f. The donor's name, prescription number, and any other 4 28 identifying marks are obliterated from the packaging before 4 29 the nursing facility transfers the prescription drug to the 4 30 charitable clinic. 4 31 g. The name, strength, and expiration date of the 4 32 prescription drug remain on the package label. 4 33 h. The redispensed drug is assigned the same expiration 4 34 date as appears on the original package. 4 35 i. Expired prescription drugs accepted by a charitable 5 1 clinic pharmacy are not redispensed and are destroyed 5 2 according to the charitable clinic pharmacy's destruction 5 3 procedures. 5 4 j. The charitable clinic pharmacy does not accept 5 5 controlled substances. 5 6 5. a. If a nursing facility that transfers prescription 5 7 drugs to a charitable clinic receives a notice from a pharmacy 5 8 that a prescription drug has been recalled, the nursing 5 9 facility shall inform the clinic of the recall. 5 10 b. If a charitable clinic receives a recall notification 5 11 from a nursing facility, the clinic shall perform a uniform 5 12 destruction of all of the recalled prescription drugs in the 5 13 nursing facility. 5 14 6. A prescription drug dispensed through a charitable 5 15 clinic pharmacy shall not be eligible for reimbursement under 5 16 the medical assistance program. 5 17 7. Indigent individuals receiving prescription drugs under 5 18 the program shall sign a waiver form releasing the nursing 5 19 facility, the charitable clinic, the charitable clinic 5 20 pharmacy, the donor, and the donor's estate from liability. 5 21 Sec. 6. NEW SECTION. 135M.6 EXEMPTION FROM DISCIPLINARY 5 22 ACTION, CIVIL LIABILITY, AND CRIMINAL PROSECUTION. 5 23 1. All of the following persons shall be exempt from 5 24 professional disciplinary action, civil liability, or criminal 5 25 prosecution for actions taken under the program in the absence 5 26 of bad faith and if the person acts in conformity with any 5 27 applicable professional standards and requirements: 5 28 a. The donor and the donor's estate. 5 29 b. The nursing facility that transfers the prescription 5 30 drugs. 5 31 c. The prescribing physician or other person to whom 5 32 prescribing is delegated by the physician. 5 33 d. The charitable clinic. 5 34 e. The charitable clinic pharmacy. 5 35 f. The pharmacy that originally dispensed the prescription 6 1 drugs. 6 2 g. The pharmacist who originally dispensed the 6 3 prescription drugs and the pharmacist who redispensed the 6 4 donated prescription drugs. 6 5 h. The Iowa department of public health. 6 6 i. The department of human services. 6 7 j. The board of pharmacy examiners. 6 8 2. In the absence of bad faith, a drug manufacturer shall 6 9 not be subject to criminal prosecution or civil liability for 6 10 injury, death, or loss to persons or property for matters 6 11 related to the donation, acceptance, or redispensing of a drug 6 12 manufactured by the drug manufacturer that is donated by any 6 13 person under the program, including but not limited to 6 14 liability for failure to provide the product or consumer 6 15 package insert information or the expiration date of the 6 16 donated prescription drugs. This subsection does not exempt a 6 17 drug manufacturer from criminal prosecution or civil liability 6 18 for a previously undisclosed product defect. 6 19 3. This chapter shall not be construed to apply to issues 6 20 of liability outside the scope of the program. 6 21 Sec. 7. NEW SECTION. 135M.7 SAMPLE PRESCRIPTION DRUGS. 6 22 This chapter shall not be construed to restrict the use of 6 23 samples by a physician or other health care professional 6 24 during the course of work at a charitable clinic whether or 6 25 not the charitable clinic has a licensed outpatient pharmacy. 6 26 Sec. 8. NEW SECTION. 135M.8 RESALE PROHIBITED. 6 27 This chapter shall not be construed to authorize the resale 6 28 of prescription drugs by any person. 6 29 Sec. 9. NEW SECTION. 135M.9 CRIMINAL PENALTY == 6 30 PROFESSIONAL DISCIPLINARY ACTION. 6 31 Any person who knowingly violates any provision of this 6 32 chapter, or of the rules of the department adopted under this 6 33 chapter, is guilty of a serious misdemeanor and is subject to 6 34 professional disciplinary action, if applicable. 6 35 Sec. 10. NEW SECTION. 135M.10 ANNUAL PROGRAM REPORT. 7 1 The department shall submit a report to the governor and 7 2 the general assembly by September 1, 2006, and annually 7 3 thereafter, regarding the progress of the program and any 7 4 recommendations regarding the program. 7 5 EXPLANATION 7 6 This bill directs the Iowa department of public health, in 7 7 cooperation with the board of pharmacy examiners, to establish 7 8 a pilot program to provide for the proper transfer of unused 7 9 prescription drugs from nursing facilities to charitable 7 10 clinic pharmacies for the purpose of redistributing the 7 11 prescription drugs to indigent individuals. Participation in 7 12 the program by nursing facilities, charitable clinics, 7 13 charitable clinic pharmacies, drug manufacturers, and 7 14 individuals is voluntary. 7 15 The bill provides definitions and procedures and 7 16 requirements for the donation of unused prescription drugs and 7 17 the redispensing of such drugs; provides for the adoption of 7 18 rules for the pilot program; provides for exemption from 7 19 disciplinary action, civil liability, and criminal prosecution 7 20 for those involved in the program in the absence of bad faith 7 21 and adherence to applicable professional standards and 7 22 requirements; provides that the program does not restrict the 7 23 use of sample prescription drugs; provides that the bill does 7 24 not authorize the resale of prescription drugs; and requires 7 25 the submission of annual reports regarding the program by the 7 26 Iowa department of public health to the governor and the 7 27 general assembly. 7 28 The bill also provides that a person who knowingly violates 7 29 any provision of the chapter or any rule adopted under the 7 30 chapter is guilty of a serious misdemeanor and is subject to 7 31 professional disciplinary action, if applicable. 7 32 LSB 2240YH 81 7 33 pf:nh/sh/8