HB 319: "An Act relating to wholesale drug or device distributors; relating to prescription benefits under the state health insurance plan; and providing for an effective date."
00 HOUSE BILL NO. 319 01 "An Act relating to wholesale drug or device distributors; relating to prescription 02 benefits under the state health insurance plan; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.80.157(h) is amended to read: 05 (h) The board may suspend, revoke, deny, or refuse to renew the license of a 06 facility or pharmacy on the following grounds: 07 (1) the finding by the board of violations of a federal, state, or local 08 law relating to the practice of pharmacy, drug samples, wholesale or retail drug or 09 device distribution, or distribution of controlled substances; 10 (2) a felony conviction under federal, state, or local law of an owner of 11 the facility or pharmacy or of an employee of the facility or pharmacy; 12 (3) the furnishing of false or fraudulent material in an application made 13 in connection with drug or device manufacturing or distribution; 14 (4) suspension or revocation by federal, state, or local government of a
01 license currently or previously held by the applicant for the manufacture or 02 distribution of drugs or devices, including controlled substances; 03 (5) obtaining remuneration by fraud, misrepresentation, or deception; 04 (6) dealing with drugs or devices that are known or should have been 05 known to be stolen drugs or devices; 06 (7) dispensing or distributing drugs or devices directly to patients by a 07 wholesale drug or device distributor other than a pharmacy; 08 (8) violation of this chapter or a regulation adopted under this chapter. 09 * Sec. 2. AS 08.80 is amended by adding a new section to read: 10 Sec. 08.80.159. Registration of wholesale drug or device distributors 11 located outside of state. (a) A wholesale drug or device distributor located outside of 12 the state that regularly ships, mails, or delivers drugs or devices to vendors in the state 13 shall register with the board. 14 (b) A wholesale drug or device distributor registering with the board under (a) 15 of this section shall furnish to the board annually, and within 30 days after a change of 16 ownership, location, or name, 17 (1) the location, names, and titles of all principal corporate officers and 18 managers who are involved in shipping drugs or devices to vendors in the state; 19 (2) a copy of a current valid license, permit, or registration to conduct 20 operations in the jurisdiction in which the wholesale drug or device distributor is 21 located and a copy of the most recent report resulting from an inspection of the 22 wholesale drug or device distributor by the regulatory or licensing agency of the 23 jurisdiction in which the wholesale drug or device distributor is located; 24 (3) a sworn statement indicating that the wholesale drug or device 25 distributor is in compliance with all lawful directions and requests for information 26 from the regulatory or licensing authority of the jurisdiction in which the wholesale 27 drug or device distributor is located; and 28 (4) proof satisfactory to the board that the wholesale drug or device 29 distributor maintains its records of drugs and devices dispensed to vendors in the state 30 so that the records are readily retrievable from the records of other items dispensed by 31 the wholesale drug or device distributor.
01 (c) The board may, after a hearing, deny, revoke, or suspend the registration of 02 a wholesale drug or device distributor located outside of the state and subject to this 03 section if the wholesale drug or device distributor fails to comply with the 04 requirements of this section or if the license, permit, or registration of the wholesale 05 drug or device distributor is denied, revoked, or suspended by the licensing or 06 regulatory agency of the jurisdiction in which the wholesale drug or device distributor 07 is located. 08 (d) A wholesale drug or device distributor located outside of the state that is 09 subject to this section but is not registered with the board under this section may not 10 ship, mail, or deliver drugs or devices to the state and may not advertise its services in 11 the state. 12 (e) A wholesale drug or device distributor subject to this section shall appoint 13 a registered agent in the state who is empowered to accept, on behalf of the wholesale 14 drug or device distributor, process, notice, and demand required or permitted by law to 15 be served on the wholesale drug or device distributor. If the wholesale drug or device 16 distributor fails to appoint an agent under this subsection, if the registered agent 17 cannot with reasonable diligence be found at the registered office, or if the registration 18 of the wholesale drug or device distributor is suspended or revoked, the commissioner 19 of commerce, community, and economic development is an agent on whom process, 20 notice, or demand may be served. Service on the commissioner shall be made in the 21 same manner as provided for corporations under AS 10.06.175(b), except that for the 22 purposes of AS 10.06.175(b)(2)(A) the address shall be the last registered address of 23 the wholesale drug or device distributor as shown on the records of the board. 24 (f) The board shall by regulation define "regularly" for this section. 25 * Sec. 3. AS 08.80.480(36) is amended to read: 26 (36) "wholesale drug or device distributor" means anyone engaged in 27 wholesale distribution of drugs or devices, including [BUT NOT LIMITED TO] 28 manufacturers; repackagers; own-label distributors; private label distributors; jobbers; 29 brokers; warehouses, including manufacturers' and distributors' warehouses; chain 30 drug or device warehouses; wholesale drug or device warehouses; independent 31 wholesale drug or device traders; and retail pharmacies that conduct wholesale
01 distributions. 02 * Sec. 4. AS 11.71.020(b) is amended to read: 03 (b) In a prosecution under (a) of this section, possession of more than six 04 grams of the listed chemicals ephedrine, pseudoephedrine, phenylpropanolamine, or 05 the salts, isomers, or salts of isomers of those chemicals is prima facie evidence that 06 the person intended to use the listed chemicals to manufacture, to aid or abet another 07 person to manufacture, or to deliver to another person who intends to manufacture 08 methamphetamine, its immediate precursors, or the salts, isomers, or salts of isomers 09 of methamphetamine or its immediate precursors. The prima facie evidence described 10 in this subsection does not apply to a person who possesses 11 (1) the listed chemicals ephedrine, pseudoephedrine, 12 phenylpropanolamine, or the salts, isomers, or salts of isomers of those chemicals 13 (A) and the listed chemical was dispensed to the person under a 14 valid prescription; or 15 (B) in the ordinary course of a legitimate business, or an 16 employee of a legitimate business, as a 17 (i) retailer or as a wholesaler; 18 (ii) wholesale drug or device distributor licensed or 19 registered by the Board of Pharmacy; 20 (iii) manufacturer of drug products licensed by the 21 Board of Pharmacy; 22 (iv) pharmacist licensed by the Board of Pharmacy; or 23 (v) health care professional licensed by the state; or 24 (2) less than 24 grams of ephedrine, pseudoephedrine, 25 phenylpropanolamine, or the salts, isomers, or salts of isomers of those chemicals, 26 kept in a locked storage area on the premises of a legitimate business or nonprofit 27 organization operating a camp, lodge, school, day care center, treatment center, or 28 other organized group activity, and the location or nature of the activity, or the age of 29 the participants, makes it impractical for the participants in the activity to obtain 30 medicinal products. 31 * Sec. 5. AS 11.71.210(b) is amended to read:
01 (b) This section does not apply to a person who lawfully purchases or receives 02 (1) more than six grams of a listed chemical identified in (a) of this 03 section 04 (A) that was dispensed to the person under a valid prescription; 05 or 06 (B) in the ordinary course of a legitimate business, or to an 07 employee of a legitimate business, as a 08 (i) retailer or as a wholesaler; 09 (ii) wholesale drug or device distributor licensed or 10 registered by the Board of Pharmacy; 11 (iii) manufacturer of drug products licensed by the 12 Board of Pharmacy; 13 (iv) pharmacist licensed by the Board of Pharmacy; or 14 (v) health care professional licensed by the state; or 15 (2) more than six but less than 24 grams of a listed chemical identified 16 in (a) of this section in the ordinary course of a legitimate business or nonprofit 17 organization, or as an employee of a legitimate business or nonprofit organization, 18 operating a camp, lodge, school, day care center, treatment center, or other organized 19 group activity, and the location or nature of the activity, or the age of the participants, 20 makes it impractical for the participants in the activity to obtain medicinal products. 21 * Sec. 6. AS 21.36.090(d) is amended to read: 22 (d) Except to the extent necessary to comply with AS 21.42.365 and 23 AS 21.56, a person may not practice or permit unfair discrimination against a person 24 who provides a service covered under a group health insurance policy that extends 25 coverage on an expense incurred basis, or under a group service or indemnity type 26 contract issued by a health maintenance organization or a nonprofit corporation, if the 27 service is within the scope of the provider's occupational license. In this subsection, 28 "provider" means a state licensed physician, physician assistant, dentist, osteopath, 29 optometrist, chiropractor, nurse midwife, advanced nurse practitioner, naturopath, 30 physical therapist, occupational therapist, marital and family therapist, psychologist, 31 psychological associate, licensed clinical social worker, licensed professional
01 counselor, [OR] certified direct-entry midwife, pharmacy, or pharmacist. 02 * Sec. 7. AS 21.55.110 is amended to read: 03 Sec. 21.55.110. Minimum benefits of state health insurance plan. Except as 04 provided in AS 21.55.120 - 21.55.140, the minimum standard benefits of a health 05 insurance plan offered under AS 21.55.100(a) shall be benefits with a lifetime 06 maximum of $1,000,000 for each individual for usual, customary, reasonable, or 07 prevailing charges or, when applicable, the allowance agreed upon between a provider 08 and the plan administrator for charges. The minimum standard benefits of the plan 09 must cover the following medical services performed for an individual covered by the 10 plan for the diagnosis or treatment of nonoccupational disease or nonoccupational 11 injury: 12 (1) hospital services; 13 (2) subject to the limitations of AS 21.36.090(d), professional services 14 that are rendered by a physician or by a registered nurse at the physician's direction, 15 other than services for mental or dental conditions; 16 (3) the diagnosis or treatment of mental conditions, as defined in 17 regulations of the director, rendered during the year on other than an inpatient basis, 18 up to a yearly maximum benefit of $4,000; 19 (4) legend drugs requiring a physician's prescription; 20 (5) services of a skilled nursing facility for not more than 120 days in a 21 policy year; 22 (6) home health agency services up to a maximum of 270 visits in a 23 calendar year if the services commence within seven days following confinement in a 24 hospital or skilled nursing facility of at least three consecutive days for the same 25 condition, except that, in the case of an individual diagnosed by a physician as 26 terminally ill with a prognosis of six months or less to live, the home health agency 27 services may commence irrespective of whether the covered person was previously 28 confined or, if the covered person was confined, irrespective of the seven-day period, 29 and the yearly benefit for medical social services may not exceed $200; 30 (7) hospice services for up to six months in a calendar year; 31 (8) use of radium or other radioactive materials;
01 (9) outpatient chemotherapy; 02 (10) oxygen; 03 (11) anesthetics; 04 (12) nondental prosthesis and maxillo-facial prosthesis used to replace 05 any anatomic structure lost during treatment for head and neck tumors or additional 06 appliances essential for the support of the prosthesis; 07 (13) rental, or purchase if purchase is more cost-effective [COST 08 EFFECTIVE] than rental, of durable medical equipment that has no personal use in 09 the absence of the condition for which it was prescribed; 10 (14) diagnostic x-rays and laboratory tests; 11 (15) oral surgery for excision of partially or completely unerupted 12 impacted teeth or excision of a tooth root without the extraction of the entire tooth; 13 (16) services of a licensed physical therapist rendered under the 14 direction of a physician; 15 (17) transportation by a local ambulance operated by licensed or 16 certified personnel to the nearest health care institution for treatment of the illness or 17 injury and round trip transportation by air to the nearest health care institution for 18 treatment of the illness or injury if the treatment is not available locally; if the patient 19 is a child under 12 years of age, the transportation charges of a parent or legal 20 guardian accompanying the child may be paid if the attending physician certifies the 21 need for the accompaniment; 22 (18) confinement in a licensed or certified facility established 23 primarily for the treatment of alcohol or drug abuse, or in a part of a hospital used 24 primarily for this treatment, for a period of at least 45 days within any calendar year; 25 (19) alternatives to inpatient services as defined by the association in 26 the state plan benefits; 27 (20) second surgical opinions; 28 (21) other services that are medically necessary in the treatment or 29 diagnosis of an illness or injury as may be designated or approved by the director; 30 (22) compounded prescriptions, regardless of whether the 31 compounded prescription contains a legend drug.