0187-hb 1467

II. Requires that mail-order pharmacies be registered with and receive a permit from the pharmacy board.

III. Provides requirements that a mail-order pharmacy must meet in order to obtain a permit to conduct business in this state.

IV. Provides procedures for the pharmacy board to be followed when known or suspected violations by a mail-order pharmacy are discovered.

V. Requires that the pharmacy board extend reciprocal cooperation for the purpose of investigating complaints to any state that licenses and regulates mail-order pharmacies, as long as the other state extends the same reciprocal cooperation to the pharmacy board.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

187:1 New Paragraph; Definition; Mail-order Pharmacy. Amend RSA 318:1 by inserting after paragraph VII the following new paragraph:

VII-a. "Mail-order pharmacy" means a pharmacy that is located in a state of the United States, other than this state, whose primary business is to dispense a prescription drug or device under a prescription drug order and to deliver the drug or device to a patient, including a patient in this state, by the United States mail, a common carrier, or a delivery service. Mail-order pharmacies include, but are not limited to, pharmacies that do business via the Internet or other electronic media.

187:2 Registration Required for Mail-order Pharmacies. Amend RSA 318:37 to read as follows:

I. No person shall conduct or operate a pharmacy for the sale at retail of drugs and medicines unless such pharmacy is registered with[,] and a permit therefor has been issued by[,] the pharmacy board, except as provided in this chapter.

II.(a) No person shall conduct or operate a mail-order pharmacy located outside of this state by shipping, mailing, or delivering prescription drugs into this state unless such pharmacy is registered in New Hampshire and a permit has been issued by the New Hampshire pharmacy board.

(b) To obtain a permit, a mail-order pharmacy shall comply with each of the following:

(1) Maintain a license in good standing from the state in which the mail-order pharmacy is located;

(2) Submit to the New Hampshire pharmacy board an application for registration as provided by the New Hampshire pharmacy board;

(4) Submit to the New Hampshire pharmacy board a copy of the state pharmacy license from the state in which the mail-order pharmacy is located;

(5) Submit to the New Hampshire pharmacy board a copy of the state and federal controlled substance registrations from the state in which it is located, if controlled substances are to be shipped into this state.

(c) When requested to do so by the New Hampshire pharmacy board, each mail-order pharmacy shall supply the New Hampshire pharmacy board with any inspection reports, warning notices, disciplinary actions, notice of deficiency reports, or any other related reports from the state in which it is located concerning the operation of a mail-order pharmacy for review of compliance with state and federal drug laws.

(d) Except in emergencies that constitute an immediate threat to the public health and require expedited action by the board, the New Hampshire pharmacy board shall file a complaint with the licensing board of the state in which the mail-order pharmacy is located when known or suspected violations of the laws of the state in which the pharmacy is located are uncovered. If the licensing board in the state in which the mail-order pharmacy is located initiates disciplinary action, the New Hampshire pharmacy board may request the appropriate documents involved in the action for consideration of discipline against the pharmacy registration of the mail-order pharmacy. If no action is taken against the mail-order pharmacy by the licensing board of the state in which it is located, the New Hampshire pharmacy board may request copies of any investigation reports available from that state.

(e) The New Hampshire pharmacy board shall extend reciprocal cooperation to any state that licenses and regulates mail-order pharmacies for the purpose of investigating complaints against pharmacies located in New Hampshire or the sharing of information and investigative reports, as long as the other state shall extend the same reciprocal cooperation to the New Hampshire pharmacy board.

The Board of Pharmacy indicates this bill, as amended by the House, will increase state general fund expenditures by $13,098 in fiscal year 2001 and by $9,398 in each fiscal year thereafter. General Fund revenue will increase by $30,000 in FY'2001 and by $45,000 in each fiscal year thereafter. There will be no fiscal impact on county or local revenues and expenditures.

Based on information available from other states, the board states that approximately 200 out-of state mail order and Internet pharmacies will register in fiscal year 2001 and 300 will register in each year thereafter. Each licensee will pay a $150 registration fee. The expenditure estimates include the costs associated with implementation, administration and maintenance of the new licensing activity. The costs do not include potential travel associated with out-of state investigations.

Description FY 2001 FY 2002 FY 2003 FY 2004

Part-time personnel, LG 11

($10.32/hr x 60 hrs/month) $ 7,430 $ 7,430 $ 7,430 $ 7,430

Part-time Benefits (7.65%) 568 568 568 568

Current Expenses (copies,

postage, telephone, printing) 1,400 1,400 1,400 1,400

PC Workstation with software 2,700 0 0 0

Office furniture

(desk, chair, files, etc) 1,000 0 0 0

Totals $13,098 $ 9,398 $ 9,398 $ 9,398