AN ACT Relating to out-of-state pharmacies; adding new sections to chapter 18.64 RCW; adding a new section to chapter 48.20 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. (1) The legislature finds and declares that the practice of pharmacy is a dynamic, patient-oriented health service that applies a scientific body of knowledge to improve and promote patient health by means of appropriate drug use and drug related therapy.

(2) The legislature recognizes that with the proliferation of alternate methods of health delivery, there has arisen among third-party payers and insurance companies the desire to control the cost and utilization of pharmacy services through a variety of mechanisms, including the use of mail order pharmacies located outside the state of Washington.

(3) As a result, the legislature finds and declares that to continue to protect the Washington consumer-patient, all out-of-state pharmacies providing services to Washington residents shall operate in a manner that meets or exceeds the standards that the Washington state board of pharmacy requires of pharmacies in this state.

NEW SECTION. Sec. 2. (1) A nonresident pharmacy includes any pharmacy located outside this state that ships, mails, or delivers in any manner controlled substances, legend drugs, or devices into this state. It may ship, mail, or deliver these items to this state only if:

(a) It is registered with the Washington state board of pharmacy;

(b) It operates in a manner which meets or exceeds the pharmacy operation standards of Washington state as determined by the board;

(c) It maintains its records of controlled substances, legend drugs, or devices dispensed to patients in this state so that the records are readily retrievable from the records of other drugs dispensed;

(d) It provides a toll-free telephone service to assure that the patients in this state may communicate with a pharmacist at the pharmacy who has access to the patient's records. This toll-free number shall be disclosed on the label affixed to each container of drugs dispensed to patients in this state. This service shall be provided during its regular hours of operation, but not less than six days per week for a minimum of forty hours per week; and

(e) It complies with board rules regarding the maintenance and use of patient medication record systems and the provision of drug utilization information to the patient.

(2) The registration fee specified by the board shall not exceed the fee charged to a pharmacy located in this state.

(3) The registration requirements of this section apply to nonresident pharmacies that ship, mail, or deliver controlled substances, legend drugs, and devices into this state only pursuant to a prescription.

NEW SECTION. Sec. 3. (1) A pharmacy doing business in this state that has not obtained a registration from the board and sells or distributes drugs in this state through (a) any person or media other than a wholesaler who has a certificate, license, permit, or registration under the provisions of this chapter, or (b) through a selling or distribution outlet licensed as a wholesaler under the provisions of this chapter, shall not conduct the business of selling or distributing drugs in this state without registering as a nonresident pharmacy.

(2) Applications for an out-of-state drug distributor's license or a nonresident pharmacy registration under this section shall be made on a form furnished by the board. The board may require such information as the board deems is reasonably necessary to carry out the purposes of sections 1 through 5 and 6 of this act.

(3) The nonresident pharmacy registration shall be renewed annually.

NEW SECTION. Sec. 4. (1) The board may deny, revoke, or suspend a nonresident pharmacy registration for failure to comply with any requirement or for any failure to comply with chapter 69.41 or 69.50 RCW.

(2) The board may deny, revoke, or suspend a nonresident pharmacy registration for conduct which causes serious bodily or psychological injury to a resident of this state if the board determined after investigation that it has operated at a level falling below Washington standards.

NEW SECTION. Sec. 5. It is unlawful for:

(1) Any nonresident pharmacy that is not registered under section 2 of this act to advertise its services in this state; or

(2) Any resident of this state to advertise the pharmaceutical services of a nonresident pharmacy that has not registered with the board, with the knowledge that the advertisement will or is likely to induce persons in this state to use the pharmacy to fill prescriptions.

NEW SECTION. Sec. 6. A new section is added to chapter 48.20 RCW to read as follows:

After January 1, 1990, any contractor providing coverage of prescription drugs from out-of-state pharmacies, shall submit the name and location of that pharmacy in writing to the board so the board may determine whether the pharmacy is registered in this state and whether its standards meet or exceed those of Washington state.

Those contractors providing coverage of prescription drugs from out-of-state pharmacies before January 1, 1990, shall submit the required information to the board within six months of the effective date of this act and cease providing such coverage if the board determines that the pharmacy does not meet the requirements of this section and sections 1 through 5 of this act.

NEW SECTION. Sec. 7. Sections 1 through 5 of this act are each added to chapter 18.64 RCW.

NEW SECTION. Sec. 8. This act shall take effect January 1, 1990.