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<section article="gho" article_name="Health Occupations" number="12-6C-05" title_number="12" title_name="Pharmacists and Pharmacies" subtitle_number="6C" subtitle_name="Wholesale Distributor Permitting and Prescription Drug Integrity Act">
  <level label="a">
    <text>To apply for a wholesale distributor permit, an applicant shall:</text>
    <level label="1">
      <text>Pay to the Board an application fee set by the Board; and</text>
    </level>
    <level label="2">
      <text>Submit an application to the Board on the form that the Board requires.</text>
    </level>
  </level>
  <level label="b">
    <text>The application shall include the following:</text>
    <level label="1">
      <text>The name, full business address, and telephone number of the applicant;</text>
    </level>
    <level label="2">
      <text>All trade or business names used by the applicant;</text>
    </level>
    <level label="3">
      <text>Addresses, telephone numbers, and the names of contact persons for the facility used by the applicant for the storage, handling, and distribution of prescription drugs;</text>
    </level>
    <level label="4">
      <text>The type of business form under which the applicant operates, such as partnership, corporation, or sole proprietorship;</text>
    </level>
    <level label="5">
      <text>The name of each owner and operator of the applicant, including:</text>
      <level label="i">
        <text>If an individual, the name of the individual;</text>
      </level>
      <level label="ii">
        <text>If a partnership, the name of the partnership and of each partner;</text>
      </level>
      <level label="iii">
        <text>If a corporation, the name of the corporation, the name and title of each corporate officer and director, and the state of incorporation; and</text>
      </level>
      <level label="iv">
        <text>If a sole proprietorship, the full name of the sole proprietor and the name of the sole proprietor’s business entity;</text>
      </level>
    </level>
    <level label="6">
      <text>A list of all licenses and permits issued to the applicant by any other state that authorizes the applicant to purchase or possess prescription drugs;</text>
    </level>
    <level label="7">
      <text>For the designated representative and the immediate supervisor of the designated representative at the applicant’s place of business, the following:</text>
      <level label="i">
        <text>Name;</text>
      </level>
      <level label="ii">
        <text>Places of residence for the past 7 years;</text>
      </level>
      <level label="iii">
        <text>Date and place of birth;</text>
      </level>
      <level label="iv">
        <text>The name and address of each business where the individual was employed during the past 7 years, and the individual’s job title or office held at each business;</text>
      </level>
      <level label="v">
        <text>A statement of whether, during the past 7 years, the individual has been the subject of any proceeding for the revocation of any professional or business license or any criminal violation and, if so, the nature and disposition of the proceeding;</text>
      </level>
      <level label="vi">
        <text>A statement of whether, during the past 7 years, the individual has been enjoined, either temporarily or permanently, by a court of competent jurisdiction from violating any federal or state law regulating the possession, control, or distribution of prescription drugs, together with details concerning the event;</text>
      </level>
      <level label="vii">
        <text>A description of any involvement, including any investments other than the ownership of stock in a publicly traded company or mutual fund, by the individual during the past 7 years with any business that manufactures, administers, prescribes, distributes, or stores prescription drugs, and any lawsuits in which the business was named as a party;</text>
      </level>
      <level label="viii">
        <level label="1">
          <text>A description of any misdemeanor or felony offense of which the individual, as an adult, was found guilty, regardless of whether adjudication of guilt was withheld or whether the individual pled guilty or nolo contendere; and</text>
        </level>
        <level label="2">
          <text>If the individual indicates that a criminal conviction is under appeal and submits a copy of the notice of appeal, within 15 days after the disposition of the appeal, a copy of the final written order of disposition; and</text>
        </level>
      </level>
      <level label="ix">
        <text>A photograph of the individual taken in the previous 180 days.</text>
      </level>
    </level>
  </level>
  <level label="c">
    <text>The information required under subsection (b) of this section shall be provided under oath.</text>
  </level>
  <level label="d">
    <text>The Board may not issue a wholesale distributor permit to an applicant unless the Board or its designee:</text>
    <level label="1">
      <text>If the applicant holds prescription drugs or devices, conducts a physical inspection of the applicant’s place of business, including any facility of the applicant;</text>
    </level>
    <level label="2">
      <text>Finds that the place of business and facility, if any, meets the Board’s requirements;</text>
    </level>
    <level label="3">
      <text>Determines that the designated representative of the applicant meets the following qualifications:</text>
      <level label="i">
        <text>Is at least 21 years of age;</text>
      </level>
      <level label="ii">
        <text>Has been employed full time for at least 3 years in a pharmacy or with a wholesale distributor in a capacity related to the dispensing and distribution of, and record keeping relating to, prescription drugs;</text>
      </level>
      <level label="iii">
        <text>Is employed by the applicant full time in a managerial level position;</text>
      </level>
      <level label="iv">
        <text>Is actively involved in and aware of the daily operation of the wholesale distributor;</text>
      </level>
      <level label="v">
        <text>Is physically present, except for an authorized absence such as sick leave or vacation leave, at the facility of the applicant during regular business hours;</text>
      </level>
      <level label="vi">
        <text>Is serving as a designated representative for only one applicant at a time, or for two or more wholesale distributors who are located in the same facility and are members of an affiliated group, as defined in § 1504 of the Internal Revenue Code;</text>
      </level>
      <level label="vii">
        <text>Does not have any convictions for a violation of any federal, state, or local laws relating to wholesale or retail prescription drug distribution or distribution of controlled substances; and</text>
      </level>
      <level label="viii">
        <text>Does not have any convictions for a felony under federal, state, or local laws; and</text>
      </level>
    </level>
    <level label="4">
      <text>Determines that the immediate supervisor of the designated representative of the applicant meets the following qualifications:</text>
      <level label="i">
        <text>Is at least 21 years of age;</text>
      </level>
      <level label="ii">
        <text>Has been employed full time for at least 3 years in a pharmacy or with a wholesale distributor in a capacity related to the dispensing and distribution of, and record keeping relating to, prescription drugs;</text>
      </level>
      <level label="iii">
        <text>Is employed by the applicant full time in a managerial level position;</text>
      </level>
      <level label="iv">
        <text>Is actively involved in and aware of the daily operation of the wholesale distributor;</text>
      </level>
      <level label="v">
        <text>Does not have any convictions for a violation of any federal, state, or local laws relating to wholesale or retail prescription drug distribution or distribution of controlled substances; and</text>
      </level>
      <level label="vi">
        <text>Does not have any convictions for a felony under federal, state, or local laws.</text>
      </level>
    </level>
  </level>
  <level label="e">
    <text>The designated representative and the immediate supervisor of the designated representative of an applicant shall submit to a criminal history records check in accordance with § 12–6C–05.1 of this subtitle.</text>
  </level>
  <level label="f">
    <level label="1">
      <text>In this subsection, “gross receipts” means gross receipts from sales of prescription drugs and devices in the State.</text>
    </level>
    <level label="2">
      <text>This subsection does not apply to a pharmacy warehouse that is not engaged in wholesale distribution.</text>
    </level>
    <level label="3">
      <level label="i">
        <text>An applicant for a wholesale distributor permit shall submit a surety bond or other equivalent means of security acceptable to the State, such as an irrevocable letter of credit or a deposit in a trust account or financial institution, payable to the State Board of Pharmacy to be deposited into an account established by the State under paragraph (7) of this subsection.</text>
      </level>
      <level label="ii">
        <text>The surety bond or other security shall be in the amount of:</text>
        <level label="1">
          <text>$100,000, if the annual gross receipts of the applicant for the previous tax year are $10,000,000 or more; or</text>
        </level>
        <level label="2">
          <text>$50,000, if the annual gross receipts of the applicant for the previous tax year are less than $10,000,000.</text>
        </level>
      </level>
      <level label="iii">
        <text>The Board may require by regulation documentation for the gross receipts of the wholesale distributor to qualify for a surety bond or other security in the amount of $50,000.</text>
      </level>
    </level>
    <level label="4">
      <text>The purpose of the surety bond is to secure payment of any fines or penalties imposed by the Board and any fees and costs incurred by the State relating to the permit that:</text>
      <level label="i">
        <text>Are authorized under State law; and</text>
      </level>
      <level label="ii">
        <text>Are not paid by the permit holder within 30 days after the fines, penalties, fees, or costs become final.</text>
      </level>
    </level>
    <level label="5">
      <text>The State may make a claim against the surety bond or other security until 2 years after the permit holder’s permit ceases to be valid.</text>
    </level>
    <level label="6">
      <text>A single surety bond shall cover all facilities operated by the applicant in the State.</text>
    </level>
    <level label="7">
      <text>The Board shall establish an account, separate from its other accounts, in which to deposit the applicant’s surety bond or other security.</text>
    </level>
  </level>
  <level label="g">
    <text>If a wholesale distributor distributes prescription drugs or prescription devices from more than one facility, the wholesale distributor shall obtain a permit for each facility.</text>
  </level>
  <level label="h">
    <text>Within 30 days after the date the Board receives a completed application, including the results of all required criminal history records checks, the Board shall notify the applicant of the Board’s acceptance or rejection of the application.</text>
  </level>
</section>
