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SENATE FLOOR VERSION
March 2, 2023
SENATE BILL NO. 765 By: Standridge
An Act relating to the practice of pharma cy; defining
terms; requiring wholesale distributors to make
adequate provisions for the return of certain
outdated prescription drugs; requiring wholesale
distributors to establish certain written policy;
stating criteria of policy; providing exemption;
providing eligibility criteria for drugs; requiring
prompt full credit to purchaser; requiring certain
notification and documentation; requiring wholesale
distributors to maintain certain records; prohibiting
submission of drugs under certain conditions;
providing for disciplinary action; requiring
compliance with applicable laws, rules, and
regulations; amending 59 O.S. 2021, Sectio n 353.24,
which relates to unlawful acts; creating exception;
updating statutory language; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 355.5 of Title 59, unless there
is created a duplication in numbering, reads as fol lows:
A. As used in this section :
1. “Full credit” means a cash refund or credit with t he drug
wholesale distributor for the purchase price of the drug as
established by drug invoice less a reasonable fee for handling of
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the returned drugs. A reasonable fee shall not be more than seven
percent (7%) of the total invoice price of the returned drugs ; and
2. “Reverse drug distributor” means a firm, whether located
inside or outside this state, that receives drugs for destruction,
return credit, or otherwise disposes of drugs received from a
registrant located in this state who holds a permit or license to
dispense or possess drugs. As used in this paragraph, “registrant”
means a person registered by the Director of the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control under Section 2-302
of Title 63 of the Okla homa Statutes.
B. Effective with all drug orders placed on or after the
effective date of this act, all wholesale distributors shall make
adequate provisions for the return of outdated pre scription drugs,
both full and partial containers, for up to six (6) months after the
labeled expiration date for prompt full credit.
C. Wholesale distributors shall establish a written policy
providing for the return of outdated prescription drugs sold t o a
client by such wholesale distributor. Such policy may include a
procedure for the drugs t o be returned to the drug manufacturer, may
include a requirement that the drugs be returned in the original
containers in which they were purchased, and may include the use of
a reverse drug distribut or. Such policy shall be available to the
State Board of Pharmacy or its agents upon request.
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D. Influenza vaccines shall be exempt from the requirements of
this provision if they have an expiration date of less th an one year
from the date such drug is m anufactured.
E. In order to be eligible for full credi t, the drug must be
received by the wholesale distributor, or if not the wholesale
distributor, its agent designa ted in its return policy, no later
than the sixth month from the labeled expiration date . A signed
delivery receipt shall constitute evidence of the drugs having been
returned.
F. Prompt full credit to the purchaser shall occur within sixty
(60) calendar days from the date the return drugs were received b y
the wholesale distributor or its d esignated agent. If the wholesale
distributor determin es that the drugs were not returned wi thin six
(6) months of the labeled expiration date, or were not returned
consistent with the written return policy, then the wh olesale
distributor shall notify the purchaser in writing within thirty (30)
calendar days of the receipt of the drugs of its intent not to give
full credit. Wholesale distributors shall maintain d ocumentation
supporting their refusal to give full credit for a period of two (2)
years. Such documentation shall be available to the Board or its
agent upon request.
G. Wholesale distributors shall maintain records of all credits
made under this section for a period of two (2) years and such
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record shall be made available to the Board or its agent upon
request.
H. The submission of drugs by a purch aser licensed by the Board
in this state for refund or credit to a wholesale distributor
pursuant to this section when the drugs are in a container other
than the one in which they were purchased, when the drugs were not
purchased from that wholesale distributor, or when the drugs were
purchased for a pharmacy or facility outside this state shall
constitute fraudulent and unprofess ional conduct and may subject the
purchaser to disciplinary action by the Board.
I. The return of drugs under this section shall comply with all
other applicable federal, state, and local laws, rules, and
regulations.
SECTION 2. AMENDATORY 59 O.S. 2021, Section 353.24, is
amended to read as follows:
Section 353.24. A. It shall be unlawful for any licens ee or
other person to:
1. Forge or increase the quantity of drug in any prescription,
or to present a prescription bearing forged, fictitious o r altered
information or to possess any drug secured by such forged,
fictitious or altered prescription;
2. Sell, offer for sale, barter or give away any unused
quantity of drugs obtained by prescription, except through a program
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pursuant to the Utilizati on of Unused Prescription Medications Act
or as otherwise provided by the State Board of Pharmacy;
3. Sell, offer for sale, barter or give away any drugs damaged
by fire, water, or other causes without first obtaining the written
approval of the Board or the State Department of Health;
4. No person, firm or business establishment shall offer to the
public, in any manner, their services as a “pick-up station” or
intermediary for the purpose of having prescriptions filled or
delivered, whether for profit or gratuitously. Nor may the owner of
any pharmacy or drug store authorize any person, firm or business
establishment to act for them in this manner with these exceptions:
a. patient-specific filled prescriptions may be delivered
or shipped to a prescriber ’s clinic for pick-up by
those patients whom the prescriber has i ndividually
determined and documented do not hav e a permanent or
secure mailing address,
b. patient-specific filled prescriptions for drugs which
require special handling written by a prescrib er may
be delivered or shipped to the prescriber’s clinic for
administration or pick -up at the prescriber ’s office,
c. patient-specific filled prescriptions, including
sterile compounded drugs, may be delivered or shipped
to a prescriber’s clinic where they shall be
administered,
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d. patient-specific filled prescriptions for patients
with end-stage renal disease (ESRD) may be delivered
or shipped to a prescriber ’s clinic for administration
or final delivery to the patient,
e. patient-specific filled prescriptions for
radiopharmaceuticals may be delivered or shipped to a
prescriber’s clinic for administration or pick -up, or
f. patient-specific filled prescriptions may be delivered
or shipped by an Indian Health Services Service (IHS)
or federally recognized tribal health organization
operating under the IHS in the delivery of the
prescriptions to a pharmacy operated by the IHS or a
federally recognized tribal health organization for
pick-up by an IHS or tribal patient.
However, nothing in this paragrap h shall prevent a pharmacist or
an employee of the pharmacy from personally recei ving a prescription
or delivering a lega lly filled prescription to a residence, office
or place of employment of the patient for whom the prescription was
written. Provided f urther, the provisions of this paragraph shall
not apply to any Department of Men tal Health and Substance Abuse
Services employee or any person whose facility contracts with the
Department of Mental Health and Substance Abuse Services whose
possession of any dangerous drug, as defined in Section 353.1 of
this title, is for the purpose of delivery of a mental health
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consumer’s medicine to the consumer’s home or residence. Nothing in
this paragraph shall prevent veterinary prescription drugs from
being shipped directly from an Oklahoma licensed wholesaler or
distributor registered with t he Oklahoma State Board of Veterinary
Medical Examiners to a client; provided, such drugs may be dispensed
only on prescription of a licensed veterinarian and only when an
existing veterinary-client-patient relationship exists. Nothing in
this paragraph shall p revent dialysate and peritoneal di alysis
devices from being shipped directly from an Oklahoma licensed
manufacturer, wholesaler or distributor to an ESRD patient or
patient’s designee, consistent with subsection F of Section 353.18
of this title;
5. Sell, offer for sale or barter or buy a ny professional
samples except through a program pursuant to the Utilization of
Unused Prescription Medications Act;
6. Refuse to permit o r otherwise prevent members of the Board
or such representatives thereof from enter ing and inspecting any and
all places, including premises, vehicles, equipment, contents, and
records, where drugs, medicine, chemicals or poisons are stored,
sold, vended, given away, compounded, dispensed, repackaged,
transported, or manufactured;
7. Interfere, refuse to participate in, impede or otherwise
obstruct any inspection, investigation or disciplinary proceeding
authorized by the Oklahoma Pharmacy Act;
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8. Possess dangerous drugs wi thout a valid prescription or a
valid license to possess such dr ugs; provided, however, this
provision shall not apply to any Department of Mental Health and
Substance Abuse Services employee or any person whose facility
contracts with the Department of Me ntal Health and Substance Abuse
Services whose possession of any dangerous drug, as defined in
Section 353.1 of this title, is for the purpose of delivery of a
mental health consumer ’s medicine to the consumer ’s home or
residence;
9. Fail to establish and maintain effective controls against
the diversion of drugs for any other purpose than legitimate
medical, scientific or industrial uses as provided by state, federal
and local law;
10. Fail to have a written drug diversion detectio n and
prevention policy;
11. Possess, sell, offer for sale, barter or give away any
quantity of dangerous drugs not list ed as a scheduled drug pursuant
to Sections 2-201 through 2-212 of Title 63 of the Oklahoma Statutes
when obtained by prescription bea ring forged, fictitious or altered
information.
a. A first violation of this section shall constitute a
misdemeanor and upon conviction shall be punishable by
imprisonment in the county jail for a term not more
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than one (1) year and a fine in an amount no t more
than One Thousand Dollars ($1,000.00).
b. A second violation of this section shall constitute a
felony and upon conv iction shall be punishable by
imprisonment in the Department of Corrections for a
term not exceeding five (5) years and a fine in an
amount not more than Two Thousand Dollars ($2,000.00);
12. Violate a Board order or agreed order;
13. Compromise the secu rity of licensure examination materials;
or
14. Fail to notify the Board, in writing, within ten (10) days
of a licensee or perm it holder’s address change.
B. 1. It shall be unlawful for any person o ther than a
licensed pharmacist or physician to certif y a prescription before
delivery to the patient or the patient ’s representative or
caregiver. Dialysate and peritoneal dialysis devices supplied
pursuant to the provisions of subsection F of Section 35 3.18 of this
title shall not be required to be certifi ed by a pharmacist prior to
being supplied by a manufacturer, wholesaler or distributor.
2. It shall be unlawful for any perso n to institute or manage a
pharmacy unless such person is a licensed pharma cist or has placed a
licensed pharmacist in charge of such pharmacy.
3. No licensed pharmacist shall manage, supervise or be in
charge of more than one pharmacy.
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4. No pharmacist being requested to sell, furnis h or compound
any drug, medicine, chemical o r other pharmaceutic al preparation, by
prescription or otherwise, shall substitute or cause to be
substituted for it, without authority of the prescriber or
purchaser, any like dr ug, medicine, chemical or pharmac eutical
preparation.
5. No pharmacy, pharma cist-in-charge or other person shall
permit the practice of pharmacy except by a licensed pharmacist or
assistant pharmacist.
6. No person shall subvert the authority of the ph armacist-in-
charge of the pharmacy by impeding the management of the
prescription department to act in compliance with federal and st ate
law.
C. 1. It Except as provided by Section 1 of this act, it shall
be unlawful for a:
1. A pharmacy to resell dangerous drugs to any wholesale
distributor.
2. It shall be unlawful for a; or
2. A wholesale distributor to purchase drugs from a pharmacy.
SECTION 3. This act shall become effective November 1, 202 3.
COMMITTEE REPORT BY: COMMITTEE ON HEALTH AND HUMAN SERVICES
March 2, 2023 - DO PASS