24 HB 1072/AP House Bill 1072 (AS PASSED HOUSE AND SENATE) By: Representatives Cooper of the 45 th , Newton of the 127 th , Parrish of the 158 th , Jackson of the 128 th , Stephens of the 164 th , and others A BILL TO BE ENTITLED AN ACT To amend Titles 26, 31, and 48 of the Official Code of Georgia Annotated, relating to food, 1 drugs, and cosmetics, health, and revenue and taxation, respectively, so as to increase the2 public's access to prescription drugs by increasing the number of pharmacy technicians3 authorized to be supervised by a pharmacist in certain circumstances and by revising4 provisions relative to the drug repository program; to authorize the Georgia State Board of5 Pharmacy to increase the maximum ratio of pharmacists to pharmacy technicians in6 closed-door pharmacies; to provide definitions; to provide for additional pharmacy7 technicians for certain non-dispensing related duties in the drug repository program; to8 require reverse drug distributors to make and document diligent efforts to donate drugs rather9 than destroy them; to provide for an eligible recipient to substitute a drug under certain10 circumstances; to provide for legislative intent regarding certain settlement funds received11 by the state; to provide for referrals to the drug repository program; to exempt sales to or by12 certain eligible recipients in the drug repository program; to provide for related matters; to13 provide for legislative findings; to provide for an effective date and applicability; to repeal14 conflicting laws; and for other purposes.15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:16 H. B. 1072 - 1 - 24 HB 1072/AP PART I 17 Closed-door pharmacies18 SECTION 1-1.19 Title 26 of the Official Code of Georgia Annotated, relating to food, drugs, and cosmetics,20 is amended in Code Section 26-4-82, relating to duties requiring professional judgment and21 responsibilities of a licensed pharmacist, by revising subsection (d) as follows:22 "(d) The board of pharmacy shall promulgate rules and regulations regarding the activities23 and utilization of pharmacy technicians in pharmacies, including the establishment of a24 registry as required in paragraph (7) of subsection (a) of Code Section 26-4-28; provided,25 however, that the pharmacist to pharmacy technician ratio shall not exceed one pharmacist26 providing direct supervision of four pharmacy technicians. The board may consider and27 approve an application to increase the ratio in a pharmacy located in a licensed hospital or 28 in a closed-door pharmacy. Such application must be made in writing and must be29 submitted to the board by the pharmacist in charge of a specific hospital pharmacy in this30 state or a specific closed-door pharmacy. At any time during which the pharmacist directly31 supervises four or more pharmacy technicians, two of such technicians must be certified. 32 At any time during which the pharmacist directly supervises three pharmacy technicians,33 one of such technicians must be certified. No certification is required for pharmacy34 technicians in pharmacies at any time during which the pharmacist directly supervises one35 or two pharmacy technicians. In order to be certified, pharmacy technicians must:36 (1) Have successfully passed a certification program approved by the board of pharmacy;37 (2) Have successfully passed an employer's training and assessment program which has38 been approved by the board of pharmacy; or39 (3) Have been certified by either the Pharmacy Technician Certification Board or any40 other nationally recognized certifying body approved by the board of pharmacy.41 H. B. 1072 - 2 - 24 HB 1072/AP As used in this subsection, the term 'closed-door pharmacy' means a pharmacy that42 provides specialized services and is not open to the general public."43 PART II44 Drug repository program45 SECTION 2-1.46 The General Assembly finds:47 (1) Access to affordable medications is a public health issue that disproportionately48 impacts vulnerable patients, and a state's drug repository program can serve as a solution49 to thousands of families for life-saving and life-preserving medications; and50 (2) Participating recipient organizations can provide a valuable community benefit to51 families in need by making donated medications available and will be authorized to utilize52 additional pharmacy technicians to distribute donated medications under the drug53 repository program.54 SECTION 2-2.55 Title 31 of the Official Code of Georgia Annotated, relating to health, is amended by revising56 Code Section 31-8-300, relating to definitions relative to the drug repository program, as57 follows:58 "31-8-300.59 As used in this article, the term:60 (1) 'Controlled substance' means a drug, substance, or immediate precursor in Schedules61 I through V of Code Sections 16-13-25 through 16-13-29 and Schedules I through V of62 21 C.F.R. Part 1308 as of January 1, 2023.63 (2) 'Disposition' means destroy, dispose of, return, quarantine, or otherwise prevent from64 further distribution.65 H. B. 1072 - 3 - 24 HB 1072/AP (3) 'Eligible drug' means an over-the-counter or prescription drug, including drugs66 labeled specifically for investigational use and approved by the United States Food and67 Drug Administration as such, which may be donated to the program pursuant to Code68 Section 31-8-301.69 (2)(4) 'Eligible patient' means an individual who is indigent, uninsured, underinsured, or70 enrolled in a public assistance health benefits program, in accordance with criteria71 established by the Department of Public Health pursuant to Code Section 31-8-304. 72 Other individuals may be considered eligible patients if the need for donated drugs for73 indigent, uninsured, underinsured, and public assistance health benefits program patients74 is less than the supply of donated drugs.75 (3)(5) 'Eligible recipient' means a pharmacy, hospital, federally qualified health center,76 nonprofit clinic, or other entity meeting the criteria established by the Department of77 Public Health pursuant to Code Section 31-8-304.78 (6) 'Expiration date' means the original expiration date provided by the manufacturer or79 repackager or the expiration date provided on the medication's packaging or prescription80 drug label.81 (4)(7) 'Health care facility' means a:82 (A) Nursing home licensed pursuant to Article 1 of Chapter 7 of this title;83 (B) Personal care home licensed pursuant to Code Section 31-7-12;84 (C) Assisted living community licensed pursuant to Code Section 31-7-12.2;85 (D) Hospice licensed pursuant to Article 9 of Chapter 7 of this title; and86 (E) Home health agency licensed pursuant to Article 7 of Chapter 7 of this title.87 (5)(8) 'Health care professional' means any of the following who provide medical, dental,88 or other health related diagnosis diagnoses, care, or treatment:89 (A) Physicians licensed to practice medicine under Chapter 34 of Title 43;90 (B) Registered nurses and licensed practical nurses licensed under Chapter 26 of91 Title 43;92 H. B. 1072 - 4 - 24 HB 1072/AP (C) Physician assistants licensed under Chapter 34 of Title 43; 93 (D) Dentists and dental hygienists licensed under Chapter 11 of Title 43;94 (E) Optometrists licensed under Chapter 30 of Title 43; and95 (F) Pharmacists licensed under Chapter 4 of Title 26.96 (6) (9) 'Hospital' means a facility licensed pursuant to Chapter 7 of this title.97 (7)(10) 'Program' means the drug repository program established pursuant to Code98 Section 31-8-301.99 (11) 'Short-dated' means within five months of a drug's expiration date."100 SECTION 2-3.101 Said title is further amended by revising Code Section 31-8-301, relating to the establishment102 of a drug repository program and criteria and requirements for unused over-the-counter and103 prescription drugs, as follows:104 "31-8-301.105 (a) The Department of Public Health shall establish a drug repository program to accept106 and dispense over-the-counter and prescription drugs donated for the purpose of being107 dispensed to eligible patients.108 (b) Drugs shall only be dispensed pursuant to the program if:109 (1) For prescription drugs, they do with an expiration date that does not expire before the110 completion of the medication by the eligible patient based on the prescribing health care111 professional's directions for use and, for over-the-counter drugs, they do with an112 expiration date that does not expire before use by the eligible patient based on the113 directions for use on the manufacturer's label; and114 (2) The drugs were donated in unopened tamper-evident packaging as defined by United115 States Pharmacopeia General Chapter 659, Packaging and Storage Requirements,116 including but not limited to unopened unit-dose and multiple-dose packaging.117 (c) The following drugs shall not be donated to the program:118 H. B. 1072 - 5 - 24 HB 1072/AP (1) Controlled substances; 119 (2) Drugs subject to a federal Food and Drug Administration managed risk evaluation120 and mitigation strategy pursuant to Section 355-1 of Title 21 of the United States Code121 if inventory transfer is prohibited by such strategy; or122 (3) Drugs that there is reason to believe are adulterated pursuant to Code Section 26-3-7."123 SECTION 2-4.124 Said title is further amended in Code Section 31-8-302, relating to procedures for donation125 and dispensing of unused over-the-counter and prescription drugs, by adding new subsections126 to read as follows:127 "(f) In addition to the maximum number of pharmacy technicians that are authorized to be 128 under the direct supervision of a pharmacist pursuant to subsection (d) of Code129 Section 26-4-82, a participating pharmacy may utilize up to two additional pharmacy130 technicians under the direct supervision of such pharmacist for duties related to the131 program; provided, however, that the two such additional pharmacy technicians shall not132 be authorized to assist the supervising pharmacist in connection with any activities related133 to completing a prescription drug order or preparation of a prescription drug for a patient,134 but shall only be authorized to perform non-dispensing related duties, such as, but not135 limited to, receiving and stocking inventory.136 (g) A reverse drug distributor permitted or licensed by the State Board of Pharmacy shall:137 (1) Make and document diligent efforts to donate eligible drugs within 30 days of taking138 possession to the program in accordance with Code Section 31-8-301 rather than destroy139 such drugs;140 (2) Not directly or indirectly by transferring to another entity or by other means, cause141 eligible drugs to be dispositioned, become short-dated, expire, or otherwise become142 ineligible for donation; and143 H. B. 1072 - 6 - 24 HB 1072/AP (3) Make and document diligent efforts to ensure that any policy, contract, or other144 business arrangement between the reverse drug distributor and its clients or other parties145 does not prohibit the donation of eligible drugs received from any such client or other146 party to the program in accordance with Code Section 31-8-301; provides for the same147 rate of compensation for the client or other party for donation of eligible drugs and other148 disposition of such drugs; and does not require an eligible drug to be dispositioned,149 become short-dated, expire, or otherwise become ineligible for donation.150 (h) Any person or entity eligible to donate drugs under the program shall be allowed to151 donate eligible drugs in the same manner, at the same rate of compensation, and paid for152 by the same parties as applies to the disposition of drugs regardless of any policy, contract,153 or other business arrangement that would have otherwise directly or indirectly by154 transferring to another entity or by other means required an eligible drug to be155 dispositioned, become short-dated, expire, or otherwise become ineligible for donation.156 (i) The donation, brokering, or other facilitation of a donation of a drug pursuant to this157 program shall not be considered wholesale distribution as defined in Code Section158 26-4-201 and shall not be subject to or require licensure as a wholesale distributor pursuant159 to Chapter 4 of Title 26.160 (j) Eligible recipients that provide pharmacy related services only for the purpose of161 dispensing donated or purchased drugs pursuant to the program shall not be subject to162 comprehensive formulary or minimum supply of drugs requirements contained in163 Chapter 4 of Title 26."164 SECTION 2-5.165 Said article is further amended by adding new Code sections to read as follows:166 "31-8-305.167 (a) Notwithstanding Article 5 of Chapter 4 of Title 26, an eligible recipient may substitute:168 (1) A prescribed drug with a therapeutically equivalent drug; or169 H. B. 1072 - 7 - 24 HB 1072/AP (2) A biological product with an interchangeable biological product.170 (b) Substitutions made pursuant to subsection (a) of this Code section may include, but are171 not limited to:172 (1) Splitting a combination drug into two or more drugs;173 (2) Combining two or more drugs into a combination drug; and174 (3) Substituting a different form of a prescribed drug, including, but not limited to, an175 oral tablet or capsule.176 (c) If an eligible recipient dispenses or administers a substitute drug pursuant to this Code177 section, such substitution shall be communicated to the patient and the prescribing health178 care professional, unless the program's substitution policy is readily available on the179 eligible recipient's website.180 (d) Whenever a substitution is made, the eligible recipient shall record on the original181 prescription or the patient's prescription drug label that there has been a substitution and182 the identity of the dispensed drug product or interchangeable biological product.183 31-8-306.184 (a) It is the intent of the General Assembly that a portion of the proceeds of settlements185 received by the state relating to prescription drugs that are not controlled substances be186 appropriated for purposes of the program and distributed to eligible recipients in proportion187 to each such recipient's participation rate in the program.188 (b) It is further the intent of the General Assembly that if funds are appropriated for189 purposes of this article, the department shall be required to distribute such appropriations190 to eligible recipients in proportion to each such recipient's level of participation in the191 program.192 H. B. 1072 - 8 - 24 HB 1072/AP 31-8-307.193 (a) Hospitals and pharmacies licensed in this state and state programs that provide health194 care coverage or health care services to patients, recipients, or other individuals in this195 state, including, but not limited to, Medicaid, PeachCare for Kids Program, alcohol and196 drug awareness programs, and the Department of Corrections shall provide such patients,197 recipients, or other individuals with referral information to the program for eligible drugs198 available through the program for:199 (1) Drugs not currently covered under a state program;200 (2) Patients who do not meet the eligibility coverage for a state program or become201 unenrolled or leave a state program;202 (3) Drugs that are covered under a state program but are otherwise inaccessible to a203 patient due to, but not limited to a gap in coverage or out-of-pocket costs that are too high204 for a specific patient, recipient, or other individual; a prior authorization requirement; step205 therapy requirements; or high co-payments; or206 (4) A patient, recipient, or other individual for a drug that is covered under a state207 program but that the claim for coverage is denied with respect to the specific patient,208 recipient, or other individual.209 (b) Recipients of the federal Title X Family Planning Program shall make and document210 diligent efforts to subcontract with interested eligible recipients participating in the211 program to offer family planning services to rural and low-income populations.212 (c) If an eligible recipient offers value-added services and referrals, in addition to just213 providing medicine, such eligible recipient may also be eligible for discounted medication214 pricing to help widen such eligible recipient's formularies of medication and increase215 financial sustainability of its participation in the program."216 H. B. 1072 - 9 - 24 HB 1072/AP SECTION 2-6. 217 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is218 amended in Code Section 48-8-3, relating to exemptions from sales and use taxes, by219 deleting "or" at the end of paragraph (103), by replacing the period with "; or" at the end of220 paragraph (104), and by adding a new paragraph to read as follows:221 "(105) Sales to or by an eligible recipient, as defined in Code Section 31-8-300, which 222 provides pharmacy related services only for the purpose of dispensing donated or223 purchased drugs pursuant to the drug repository program established under Article 10 of224 Chapter 8 of Title 31, if such organization qualifies as a tax-exempt organization under225 Section 501(c)(3) of the Internal Revenue Code or is an organization that is treated for226 federal income tax purposes as a disregarded entity of a tax-exempt organization under227 Section 501(c)(3) of the Internal Revenue Code."228 PART III229 Effective date and repealer230 SECTION 3-1.231 This Act shall become effective upon its approval by the Governor or upon its becoming law232 without such approval; provided, however, that Section 2-6 of this Act shall be applicable233 to taxable years beginning on or after January 1, 2025.234 SECTION 3-2.235 All laws and parts of laws in conflict with this Act are repealed.236 H. B. 1072 - 10 -