43-15.3 Wholesale Drug Pedigree

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CHAPTER 43-15.3WHOLESALE DRUG PEDIGREE43-15.3-01. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Authentication&quot; means to affirmatively verify before any wholesale distribution of a<br>prescription drug occurs that each transaction listed on the pedigree has occurred.2.&quot;Authorized distributor of record&quot; means a wholesale distributor with whom a<br>manufacturerhasestablishedanongoingrelationshiptodistributethemanufacturer's prescription drug.An ongoing relationship is deemed to existbetween the wholesale distributor and a manufacturer when the wholesale<br>distributor, including any affiliated group of the wholesale distributor as defined in<br>section 1504 of the Internal Revenue Code [26 U.S.C. 1504], complies with the<br>following:a.The wholesale distributor has a written agreement currently in effect with the<br>manufacturer evidencing the ongoing relationship; andb.The wholesale distributor is listed on the manufacturer's current list of<br>authorized distributors of record, which is updated by the manufacturer on no<br>less than a monthly basis.3.&quot;Board&quot; means the state board of pharmacy.4.&quot;Chain pharmacy warehouse&quot; means a physical location for prescription drugs which<br>acts as a central warehouse and performs intracompany sales or transfers of the<br>drugs to a group of chain pharmacies that have the same common ownership and<br>control.5.&quot;Colicensed product&quot; means a prescription drug in which two or more parties have<br>the right to engage in the manufacturing or marketing or in the manufacturing and<br>marketing of the drug.6.&quot;Drop shipment&quot; means the sale of a prescription drug to a wholesale distributor by<br>the manufacturer of the prescription drug, or that manufacturer's colicensed product<br>partner, that manufacturer's third-party logistics provider, or that manufacturer's<br>exclusive distributor, under the terms of which the wholesale distributor or chain<br>pharmacy warehouse takes title but not physical possession of the prescription drug<br>and the wholesale distributor invoices the pharmacy or chain pharmacy warehouse,<br>or other person authorized by law to dispense or administer the drug to a patient,<br>and the pharmacy or chain pharmacy warehouse or other authorized person<br>receives delivery of the prescription drug directly from the manufacturer, or that<br>manufacturer's third-party logistics provider, or that manufacturer's exclusive<br>distributor.7.&quot;Facility&quot; means a facility of a wholesale distributor where prescription drugs are<br>stored, handled, repackaged, or offered for sale.8.&quot;Manufacturer&quot; means a person licensed or approved by the federal food and drug<br>administration to engage in the manufacture of drugs or devices.9.&quot;Manufacturer's exclusive distributor&quot; means any person that contracts with a<br>manufacturer to provide or coordinate warehousing, distribution, or other services on<br>behalf of a manufacturer and which takes title to that manufacturer's prescription<br>drug, but which does not have general responsibility to direct the sale or disposition<br>of the manufacturer's prescription drug.The manufacturer's exclusive distributormust be licensed as a wholesale distributor under this chapter, and to be consideredPage No. 1part of the normal distribution channel also must be an authorized distributor of<br>record.10.&quot;Normal distribution channel&quot; means a chain of custody for a prescription drug which<br>goes, directly or by drop shipment, from a manufacturer of the prescription drug,<br>from that manufacturer to that manufacturer's colicensed partner, from that<br>manufacturer to that manufacturer's third-party logistics provider, or from that<br>manufacturer to that manufacturer's exclusive distributor to:a.A pharmacy, to a patient or other designated person authorized by law to<br>dispense or administer the drug to a patient;b.A wholesale distributor, to a pharmacy, to a patient or other designated person<br>authorized by law to dispense or administer the drug to a patient;c.A wholesale distributor, to a chain pharmacy warehouse, to that chain<br>pharmacy warehouse's intracompany pharmacy, to a patient or other<br>designated person authorized by law to dispense or administer the drug to a<br>patient; ord.Achainpharmacywarehouse,tothechainpharmacywarehouse'sintracompany pharmacy, to a patient or other designated person authorized by<br>law to dispense or administer the drug to a patient.11.&quot;Pedigree&quot; means a document or an electronic file containing information that<br>records each distribution of any given prescription drug.12.&quot;Prescription drug&quot; means any drug, including any biological product, except for<br>blood and blood components intended for transfusion or biological products that are<br>also medical devices, required by federal law, including federal regulation, to be<br>dispensed only by a prescription, including finished dosage forms and bulk drug<br>substances subject to section 503(b) of the federal Food, Drug, and Cosmetic Act<br>[21 U.S.C. 3539(b)].13.&quot;Repackage&quot; means repackaging or otherwise changing the container, wrapper, or<br>labeling to further the distribution of a prescription drug, excluding actions completed<br>by the pharmacists responsible for dispensing product to the patient.14.&quot;Repackager&quot; means a person who repackages.15.&quot;Third-party logistics provider&quot; means anyone who contracts with a prescription drug<br>manufacturer to provide or coordinate warehousing, distribution, or other services on<br>behalf of a manufacturer, but does not take title to the prescription drug or have<br>general responsibility to direct the prescription drug's sale or disposition.Thethird-party logistics provider must be licensed as a wholesale distributor under this<br>chapter and to be considered part of the normal distribution channel must also be an<br>authorized distributor of record.16.&quot;Wholesale distribution&quot; means distribution of prescription drugs to persons other<br>than a consumer or patient. The term does not include:a.Intracompany sales of prescription drugs, meaning any transaction or transfer<br>between any division, subsidiary, parent or affiliated or related company under<br>common ownership and control of a corporate entity, or any transaction or<br>transfer between colicensees of a colicensed product.b.The sale, purchase, distribution, trade, or transfer of a prescription drug or offer<br>to sell, purchase, distribute, trade, or transfer a prescription drug for emergency<br>medical reasons.Page No. 2c.Thedistributionofprescriptiondrugsamplesbymanufacturers'representatives.d.Drug returns, when conducted by a hospital, health care entity, or charitable<br>institution in accordance with title 21, Code of Federal Regulations, section<br>203.23.e.The sale of minimal quantities of prescription drugs by retail pharmacies to<br>licensed practitioners for office use.f.The sale, purchase, or trade of a drug; an offer to sell, purchase, or trade a<br>drug; or the dispensing of a drug pursuant to a prescription.g.The sale, transfer, merger, or consolidation of all or part of the business of a<br>pharmacy from or with another pharmacy, whether accomplished as a<br>purchase and sale of stock or business assets.h.The sale, purchase, distribution, trade, or transfer of a prescription drug from<br>one authorized distributor of record to one additional authorized distributor of<br>record when the manufacturer has stated in writing to the receiving authorized<br>distributor of record that the manufacturer is unable to supply such prescription<br>drug and the supplying authorized distributor of record states in writing that the<br>prescription drug being supplied had until that time been exclusively in the<br>normal distribution channel.i.The delivery of, or offer to deliver, a prescription drug by a common carrier<br>solely in the common carrier's usual course of business of transporting<br>prescription drugs, and the common carrier does not store, warehouse, or take<br>legal ownership of the prescription drug.j.The sale or transfer from a retail pharmacy or chain pharmacy warehouse of<br>expired, damaged, returned, or recalled prescription drugs to the original<br>manufacturer or to a third-party returns processor.17.&quot;Wholesale distributor&quot; means anyone engaged in the wholesale distribution of<br>prescription drugs, including, manufacturers; repackagers; own-label distributors;<br>private-label distributors; jobbers; brokers; warehouses, including manufacturers'<br>and distributors' warehouses; manufacturer's exclusive distributors; authorized<br>distributors of record; drug wholesalers or distributors; independent wholesale drug<br>traders; specialty wholesale distributors; third-party logistics providers; retail<br>pharmacies that conduct wholesale distribution; and chain pharmacy warehouses<br>that conduct wholesale distribution. To be considered part of the normal distribution<br>channel such wholesale distributor must also be an authorized distributor of record.43-15.3-02.Rulemaking authority.The board shall adopt rules that conform withwholesale drug distributor licensing guidelines adopted by the federal food and drug<br>administration, including rules necessary to carry out the purposes of this chapter, that<br>incorporate and set detailed standards for meeting each of the license prerequisites set forth in<br>this chapter, and that establish reasonable fees to carry out this chapter.43-15.3-03.Wholesale drug distributor licensing requirement - Minimumrequirements for licensure.1.A wholesale distributor that engages in the wholesale distribution of prescription<br>drugs must be licensed by the board under this chapter and must be properly<br>licensed in any other state in which the wholesale distributor engages in the<br>distribution of prescription drugs before engaging in wholesale distributions of<br>wholesale prescription drugs in this state. However, information and qualification<br>requirements for licensure beyond that required by federal law or regulation do notPage No. 3apply to manufacturers distributing their own United States food and drug<br>administration-approveddrugs,unlessparticularrequirementsaredeemednecessary and appropriate following rulemaking.2.The board shall require the following minimum information from each wholesale<br>distributor applying to get a license under subsection 1:a.The name, full business address, and telephone number of the licensee.b.All trade or business names used by the licensee.c.Addresses, telephone numbers, and the names of contact persons for all<br>facilities used by the licensee for the storage, handling, and distribution of<br>prescription drugs.d.The type of ownership or operation.e.The name of every owner and operator of the licensee, including:(1)If an individual, the name of the individual;(2)If a partnership, the name of each partner, and the name of the<br>partnership;(3)If a corporation, the name and title of each corporate officer and director,<br>the corporate names, and the name of the state of incorporation; and(4)If a sole proprietorship, the full name of the sole proprietor and the name<br>of the business entity.f.A list of all licenses and permits issued to the applicant by any other state that<br>authorizes the applicant to purchase or possess prescription drugs.g.The name of the applicant's designated representative for the facility, together<br>with the personal information statement and fingerprints, required pursuant to<br>subdivision h for the individual.h.Each individual required by subdivision g to provide a personal information<br>statement and fingerprints shall provide the following information to the state:(1)The individual's places of residence for the past seven years;(2)The individual's date and place of birth;(3)The individual's occupations, positions of employment, and offices held<br>during the past seven years;(4)The principal business and address of any business, corporation, or other<br>organization in which each office of the individual was held or in which<br>each occupation or position of employment was carried on;(5)Whether the individual has been, during the past seven years, the<br>subject of any proceeding for the revocation of any license or any<br>criminal violation and, if so, the nature of the proceeding and the<br>disposition of the proceeding;(6)Whether, during the past seven years, the individual has been enjoined,<br>either temporarily or permanently, by a court of competent jurisdiction<br>from violating any federal or state law regulating the possession, control,Page No. 4or distribution of prescription drugs or criminal violations, together with<br>details concerning any of those events;(7)A description of any involvement by the individual with any business,<br>including any investments, other than the ownership of stock in a publicly<br>traded company or mutual fund, during the past seven years, which<br>manufactured,administered,prescribed,distributed,orstoredpharmaceutical products and any lawsuits in which the businesses were<br>named as a party;(8)A description of any misdemeanor or felony criminal offense of which the<br>individual, as an adult, was found guilty, regardless of whether<br>adjudication of guilt was withheld or whether the individual pled guilty or<br>nolo contendere. If the individual indicates that a criminal conviction is<br>under appeal and submits a copy of the notice of appeal of that criminal<br>offense, the applicant must, within fifteen days after the disposition of the<br>appeal, submit to the state a copy of the final written order of disposition;<br>and(9)A photograph of the individual taken in the previous one hundred eighty<br>days.3.The information required under subsection 2 must be provided under oath.4.The board may not issue a wholesale distributor license to an applicant, unless the<br>board:a.Inspects or appoints a third party recognized by the board for the purpose of<br>inspecting the wholesale distribution operations of the facility before initial<br>licensure and continues to inspect periodically thereafter in accordance with a<br>schedule to be determined by the board, but not less than every three years.<br>Manufacturing facilities are exempt from inspection by the board if the<br>manufacturing facilities are currently registered with the federal food and drug<br>administration in accordance with section 510 of the federal Food, Drug, and<br>Cosmetic Act [21 U.S.C. 301]; andb.Determinesthatthedesignatedrepresentativemeetsthefollowingqualifications:(1)Is at least twenty-one years of age;(2)Has been employed full time for at least three years in a pharmacy or<br>with a wholesale distributor in a capacity related to the dispensing and<br>distribution of, and recordkeeping relating to, prescription drugs;(3)Is employed by the applicant full time in a managerial level position;(4)Is actively involved in and aware of the actual daily operation of the<br>wholesale distributor;(5)Is physically present at the facility of the applicant during regular<br>businesshours,exceptwhentheabsenceofthedesignatedrepresentative is authorized, including sick leave and vacation leave;(6)Is serving in the capacity of a designated representative for only one<br>applicant at a time, except where more than one licensed wholesale<br>distributor is colocated in the same facility and the wholesale distributors<br>are members of an affiliated group, as defined in section 1504 of the<br>Internal Revenue Code [26 U.S.C. 1504];Page No. 5(7)Does not have any convictions under any federal, state, or local laws<br>relating to wholesale or retail prescription drug distribution or distribution<br>of controlled substances; and(8)Does not have any felony conviction under federal, state, or local laws.5.The board shall submit the fingerprints provided by an individual with a license<br>application for a statewide and nationwide criminal history background record check.<br>The nationwide criminal history background record check must be conducted in the<br>manner provided in section 12-60-24.All costs associated with the backgroundcheck are the responsibility of the applicant.6.The board shall require every wholesale distributor applying for a license to submit a<br>bond of at least one hundred thousand dollars, or other equivalent means of security<br>acceptable to the state, including an irrevocable letter of credit or a deposit in a trust<br>account or financial institution, payable to a fund established by the state under<br>subsection 7. A chain pharmacy warehouse that is engaged only in intracompany<br>transfers is not subject to the bond requirement. The purpose of the bond is to<br>secure payment of any fines or penalties imposed by the state and any fees and<br>costs incurred by the state regarding that license which are authorized under state<br>law and which the licensee fails to pay thirty days after the fines, penalties, or costs<br>become final. The state may make a claim against the bond or security until one<br>year after the licensee's license ceases to be valid. A single bond may cover all<br>facilities operated by the applicant in the state. Any chain pharmacy warehouse that<br>is engaged only in intracompany transfers is exempt from the bond requirement.7.The board shall establish a fund in which to deposit the wholesale distributor bonds.<br>Money in the fund is appropriated to the board on a continuing basis.8.If a wholesale distributor distributes prescription drugs from more than one facility,<br>the wholesale distributor shall obtain a license for each facility.9.In accordance with each licensure renewal, the board shall send to each wholesale<br>distributor licensed under this section a form setting forth the information that the<br>wholesale distributor provided pursuant to subsection 2.Within thirty days ofreceiving the form, the wholesale distributor must identify and state under oath to the<br>state licensing authority all changes or corrections to the information that was<br>provided under subsection 2.Changes in, or corrections to, any information insubsection 2 must be submitted to the board as required by that authority. The<br>board may suspend, revoke, or refuse to renew the license of a wholesale distributor<br>if the board determines that the wholesale distributor no longer qualifies for the<br>license issued under this section.10.The designated representative identified pursuant to subdivision g of subsection 2<br>must receive and complete continuing training in applicable federal and state laws<br>governing wholesale distribution of prescription drugs.11.Information provided under subdivision h of subsection 2 may not be disclosed to<br>any person other than a government agency that needs the information for licensing<br>or monitoring purposes.43-15.3-04. Requirements to distribute prescription drugs.1.A person may not engage in wholesale distributions of prescription drugs without,<br>after December 31, 2007, obtaining and maintaining accreditation or certification<br>from the national association of boards of pharmacy's verified accredited wholesale<br>distributor or an accreditation body approved by the board under subsection 4,<br>obtaining and maintaining a license issued by the board, and paying any reasonablePage No. 6fee required by the board. By action of the board, the deadline may be extended<br>through December 31, 2008.2.The board may not issue or renew the license of a wholesale drug distributor that<br>does not comply with this chapter. The board shall require a separate license for<br>each facility or location where wholesale distribution operations are conducted. An<br>agent or employee of any licensed wholesale drug distributor does not need a<br>license and may lawfully possess pharmaceutical drugs when acting in the usual<br>course of business or employment. The issuance of a license under this chapter<br>does not affect tax liability imposed by the tax department on any wholesale drug<br>distributor.3.The board may adopt rules that permit out-of-state wholesale drug distributors to<br>obtain a license on the basis of reciprocity if an out-of-state wholesale drug<br>distributor possesses a valid license granted by another state and the legal<br>standards for licensure in the other state are comparable to the standards under this<br>chapter and the other state extends reciprocity to wholesale drug distributors<br>licensed in this state. However, if the requirements for licensure under this chapter<br>are more restrictive than the standards of the other state, the out-of-state wholesale<br>drug distributor must comply with the additional requirements of this chapter to<br>obtain a license under this chapter.4.The board may adopt rules to approve an accreditation body to evaluate a wholesale<br>drug distributor's operations to determine compliance with professional standards,<br>this chapter and any other applicable law, and perform inspections of each facility<br>and location where wholesale distribution operations are conducted by the wholesale<br>drug distributor.43-15.3-05. Restrictions on transactions.1.A wholesale distributor shall receive prescription drug returns or exchanges from a<br>pharmacy or chain pharmacy warehouse under the terms and conditions of the<br>agreement between the wholesale distributor and the pharmacy or between the<br>wholesale distributor and the chain pharmacy warehouse, including the returns of<br>expired, damaged, and recalled pharmaceutical product to either the original<br>manufacturer or a third-party returns processor, and the returns or exchanges are<br>not subject to the pedigree requirement of section 43-15.3-06 if they are exempt<br>from pedigree under the federal food and drug administration's currently applicable<br>guidance for the federal Prescription Drug Marketing Act of 1987 [Pub. L. 100-293;<br>102 Stat. 95]. Wholesale distributors and pharmacies must ensure that the aspects<br>of this operation are secure and do not permit the entry of adulterated and<br>counterfeit product.2.A manufacturer or wholesale distributor shall furnish prescription drugs only to a<br>person licensed by the appropriate state licensing authorities.Before furnishingprescription drugs to a person not known to the manufacturer or wholesale<br>distributor, the manufacturer or wholesale distributor shall affirmatively verify that the<br>person is legally authorized to receive the prescription drugs by contacting the<br>appropriate state licensing authorities.3.Prescription drugs furnished by a manufacturer or wholesale distributor may be<br>delivered only to the premises listed on the license. The manufacturer or wholesale<br>distributor may furnish prescription drugs to an individual or agent of that individual<br>at the premises of the manufacturer or wholesale distributor if:a.The identity and authorization of the recipient are properly established; andb.This method of receipt is employed only to meet the immediate needs of a<br>particular patient of the authorized individual.Page No. 74.Prescription drugs may be furnished to a hospital pharmacy receiving area if a<br>pharmacist or authorized receiving personnel signs, at the time of delivery, a receipt<br>showing the type and quantity of the prescription drug so received. Any discrepancy<br>between receipt and the type and quantity of the prescription drug actually received<br>must be reported to the delivering manufacturer or wholesale distributor by the next<br>business day after the delivery to the pharmacy receiving area.5.A manufacturer or wholesale distributor may not accept payment for or allow the use<br>of a person's credit to establish an account for the purchase of prescription drugs<br>from any individual other than the owner of record, the chief executive officer, or the<br>chief financial officer listed on the license of an individual legally authorized to<br>receive prescription drugs. Any account established for the purchase of prescription<br>drugs must bear the name of the licensee.43-15.3-06. Pedigree.1.Each person who is engaged in wholesale distribution of prescription drugs,<br>including repackagers but excluding the original manufacturer of the finished form of<br>the prescription drug which leave or have ever left the normal distribution channel,<br>before each wholesale distribution of the drug, must provide a pedigree to the<br>person who receives the drug.a.A retail pharmacy or chain pharmacy warehouse must comply with the<br>requirements of this section only if the pharmacy or chain pharmacy warehouse<br>engages in wholesale distribution of prescription drugs.b.The board shall determine by July 1, 2009, a targeted implementation date for<br>electronic track and trace pedigree technology.The determination must bebased on consultation with manufacturers, distributors, and pharmacies<br>responsible for the sale and distribution of prescription drug products in this<br>state.Afterconsultationwithinterestedstakeholdersandbeforeimplementation of the electronic track and trace pedigree technology, the board<br>must determine that the technology is universally available across the entire<br>prescription pharmaceutical supply chain.The implementation date for themandated electronic track and trace pedigree technology may not be before<br>July 1, 2010, and may be extended by the board in one-year increments if it<br>appears the technology is not universally available across the entire<br>prescription pharmaceutical supply chain.2.Each person engaged in the wholesale distribution of a prescription drug, including a<br>repackager but excluding the original manufacturer of the finished form of the<br>prescription drug, that is provided a pedigree for a prescription drug and attempts to<br>further distribute that prescription drug shall verify affirmatively before any<br>distribution of a prescription drug occurs that each transaction listed on the pedigree<br>has occurred.3.The pedigree must:a.Include all necessary identifying information concerning each sale in the chain<br>of distribution of the product from the manufacturer, or the manufacturer's<br>third-party logistics provider, colicensed product partner, or manufacturer's<br>exclusive distributor, through acquisition and sale by any wholesale distributor<br>or repackager, until final sale to a pharmacy or other person dispensing or<br>administering the drug.At minimum, the necessary chain of distributioninformation must include:(1)The name, address, telephone number, and if available, the e-mail<br>address, of each owner of the prescription drug, and each wholesale<br>distributor of the prescription drug;Page No. 8(2)The name and address of each location from which the product was<br>shipped, if different from the owner's;(3)The transaction dates; and(4)A certification that each recipient has authenticated the pedigree.b.At minimum, the pedigree must also include the:(1)Name of the prescription drug;(2)Dosage form and strength of the prescription drug;(3)Size of the container;(4)Number of containers;(5)Lot number of the prescription drug;(6)Name of the manufacturer of the finished dosage form; and(7)National drug code (NDC) number.4.Each pedigree or electronic file must be:a.Maintained by the purchaser and the wholesale distributor for three years from<br>the date of sale or transfer; andb.Available for inspection or use within five business days upon a request of an<br>authorized officer of the law or the board.5.The board shall adopt rules and a form relating to the requirements of this section.43-15.3-07. Order to cease distribution.1.The board shall issue an order requiring the appropriate person, including the<br>distributors or retailers of the drug, to immediately cease distribution of the drug<br>within the state if the board finds that there is a reasonable probability that:a.A wholesale distributor, other than a manufacturer, has violated a provision in<br>this chapter or falsifiedapedigreeorsold,distributed,transferred,manufactured, repackaged, handled, or held a counterfeit prescription drug<br>intended for human use;b.The prescription drug at issue as a result of a violation in subdivision a could<br>cause serious, adverse health consequences or death; andc.Other procedures would result in unreasonable delay.2.An order under subsection 1 must provide the individual subject to the order with an<br>opportunity for an informal hearing, to be held not later than ten days after the date<br>of the issuance of the order, on the actions required by the order. If, after providing<br>an opportunity for such a hearing, the board determines that inadequate grounds<br>exist to support the actions required by the order, the board shall vacate the order.43-15.3-08. Prohibited acts - Penalty.Page No. 91.Except as otherwise provided under section 43-15.3-09, it is a class B misdemeanor<br>for a person to perform or cause the performance of or aid and abet any of the<br>following acts in this state:a.Failing to obtain a license under this chapter or operating without a valid license<br>when a license is required by this chapter.b.If the requirements of subsection 1 of section 43-15.3-05 are applicable and are<br>not met, purchasing or otherwise receiving a prescription drug from a<br>pharmacy.c.If a state license is required under subsection 2 of section 43-15.3-05, selling,<br>distributing, or transferring a prescription drug to a person that is not authorized<br>under the law of the jurisdiction in which the person receives the prescription<br>drug to receive the prescription drug.d.Failing to deliver prescription drugs to specified premises, as required by<br>subsection 3 of section 43-15.3-05.e.Accepting payment or credit for the sale of prescription drugs in violation of<br>subsection 5 of section 43-15.3-05.f.Failing to maintain or provide pedigrees as required by this chapter.g.Failing to obtain, pass, or authenticate a pedigree, as required by this chapter.h.Providing the board or any of the board's representatives or any federal official<br>with false or fraudulent records or making false or fraudulent statements<br>regarding any matter within the provisions of this chapter.i.Obtaining or attempting to obtain a prescription drug by fraud, deceit,<br>misrepresentation, or engaging in misrepresentation or fraud in the distribution<br>of a prescription drug.j.Except for the wholesale distribution by manufacturers of a prescription drug<br>that has been delivered into commerce pursuant to an application approved<br>under federal law by the federal food and drug administration, manufacturing,<br>repacking, selling, transferring, delivering, holding, or offering for sale any<br>prescription drug that is adulterated, misbranded, counterfeit, suspected of<br>being counterfeit, or has otherwise been rendered unfit for distribution.k.Except for the wholesale distribution by a manufacturer of a prescription drug<br>that has been delivered into commerce under an application approved under<br>federal law by the federal food and drug administration, adulterating,<br>misbranding, or counterfeiting any prescription drug.l.Receiving any prescription drug that is adulterated, misbranded, stolen,<br>obtained by fraud or deceit, counterfeit, or suspected of being counterfeit, and<br>the delivery or proffered delivery of such drug for pay or otherwise.m.Altering, mutilating, destroying, obliterating, or removing the whole or any part<br>of the labeling of a prescription drug or the commission of any other act with<br>respect to a prescription drug that results in the prescription drug being<br>misbranded.2.The prohibited acts in subsection 1 do not include a prescription drug manufacturer<br>or agent of a prescription drug manufacturer obtaining or attempting to obtain a<br>prescription drug for the sole purpose of testing the prescription drug for authenticity.Page No. 1043-15.3-09. Penalties.1.The board may impose the following sanctions if, after a hearing under<br>chapter 28-32, the board finds that a person has violated section 43-15.3-08:a.Revoke the wholesale drug distributor's license issued under this chapter if the<br>person is a wholesale drug distributor; orb.Assess a civil penalty against the person. A civil penalty assessed may not<br>exceed ten thousand dollars per violation.2.The board, upon a showing of a violation of this chapter, may revoke, suspend, or<br>limit a license issued under this chapter after a proceeding under chapter 28-32.<br>After a proceeding under chapter 28-32, the board may assess a civil penalty<br>against a licensed wholesale drug distributor of not more than ten thousand dollars<br>for each occurrence. If the licensed wholesale drug distributor fails to pay the civil<br>penalty within the time specified by the board, the board may suspend the license<br>without additional proceedings.3.Upon application by the board, a court may grant an injunction, a restraining order,<br>or other order to enjoin a person from offering to engage or engaging in the<br>performance of any practices for which a permit or license is required by any<br>applicable federal or state law including this chapter, upon a showing that the<br>practices were or are likely to be performed or offered to be performed without a<br>permit or license. An action brought under this subsection must be commenced<br>either in the county where the conduct occurred or is likely to occur or in the county<br>in the state where the defendant resides. An action brought under this subsection is<br>in addition to any other penalty provided by law and may be brought concurrently<br>with other actions to enforce this chapter.4.A person that knowingly purchases or receives a prescription drug through any<br>source other than a person licensed under this chapter, including a wholesale<br>distributor, manufacturer, pharmacy distributor, or pharmacy commits a class A<br>misdemeanor.A subsequent unrelated violation of this subsection is a class Cfelony.5.A person who knowingly or intentionally engages in the wholesale distribution of a<br>prescription drug without a license issued under this chapter commits a class C<br>felony. A person is guilty of a class C felony if that person engages in the wholesale<br>distribution of a prescription drug and with intent to defraud or deceive fails to obtain<br>or deliver to another person a complete and accurate required pedigree concerning<br>a prescription drug before obtaining the prescription drug from another person or<br>transferring the prescription drug to another person or falsely swears or certifies that<br>the person has authenticated any documents to the wholesale distribution of<br>prescription drugs.6.A person is guilty of a class C felony if that person engages in the wholesale<br>distribution of a prescription drug and knowingly or intentionally:a.Destroys, alters, conceals, or fails to maintain a complete and accurate<br>required pedigree concerning a prescription drug in the person's possession;b.Purchases or receives prescription drugs from a person not authorized to<br>distribute prescription drugs in wholesale distribution;c.Sells, barters, brokers, or transfers a prescription drug to a person not<br>authorized to purchase the prescription drug in the jurisdiction in which the<br>person receives the prescription drug in a wholesale distribution;Page No. 11d.Forges, counterfeits, or falsely creates a pedigree;e.Falsely represents a factual matter contained in a pedigree; orf.Fails to record material information required to be recorded in a pedigree.7.A person is guilty of a class C felony if that person engages in the wholesale<br>distribution of a prescription drug and possesses a required pedigree concerning a<br>prescription drug, knowingly or intentionally fails to authenticate the matters<br>contained in the pedigree as required, and distributes or attempts to further distribute<br>the prescription drug.Page No. 12Document Outlinechapter 43-15.3 wholesale drug pedigree