AB 120

This bill creates an optional license for third-party logistics providers that are

located in the state or are located outside the state but provide third-party logistics

provider services in the state. A third-party logistics provider is defined under

current law as a person that contracts with a prescription drug manufacturer to

provide or coordinate warehousing, distribution, or other services on behalf of the

manufacturer but that does not take title to the manufacturer's prescription drug or

have general responsibility to direct the prescription drug's sale or disposition.

The bill requires an applicant for a third-party logistics provider license to

submit certain information prior to licensure, including proof of a recent facility

inspection, and a personal statement relating to a designated representative of the

facility. The license created by this bill will no longer apply if the federal Food and

Drug Administration establishes a licensing program for third-party logistics

providers under federal law and the Pharmacy Examining Board determines that

state licensure is not required for a resident third-party logistics provider to provide

third-party logistics services in another state.

The bill also directs the Pharmacy Examining Board to promulgate rules that

regulate third-party logistics providers and out-of-state third-party logistics

providers consistent with federal law. The authority of the Pharmacy Examining

Board to promulgate rules is restricted to only rules that are equivalent to

requirements under federal law, and only rules that do not mandate licensing under

state law.

The bill requires the Pharmacy Examining Board to issue interim licenses for

third-party logistics providers and out-of-state third-party logistics providers

between the date of enactment until permanent or emergency rules take effect,

whichever is sooner, if, in the opinion of the board, the applicant is currently in

compliance with federal law relating to third-party logistics providers. An interim

license to act as a third-party logistics provider or out-of-state third-party logistics

provider expires 90 days after the date that emergency rules take effect, or 90 days

after the date that permanent rules take effect, whichever is sooner. No fee is

required for a holder of an interim license to act as a third-party logistics provider

or an out-of-state third-party logistics provider.

Finally, the bill requires third-party logistics providers, whether or not

licensed under the bill, to cooperate with inspections of their facilities and delivery

vehicles.