SB502
To Require Wholesale Distributors Of Controlled Substances To Educate, Communicate, And Provide Due Process For Licensed Professionals Before Limiting Or Terminating Sales Of Controlled Substances; And To Declare An Emergency.
Last Action (May 1, 2023): Died in House at Sine Die Adjournment
Sponsors
AI-Generated Summary
This bill establishes a mandatory due process framework for pharmaceutical wholesale distributors operating in Arkansas before they can limit or terminate the sale of controlled substances to pharmacies or other licensed providers. It requires distributors to provide annual education, conduct interviews regarding anti-diversion controls, and issue formal notice prior to restricting access to controlled substances. Wholesalers must provide a specific appeals process for customers and must notify the Arkansas State Board of Pharmacy during certain investigative processes. The bill mandates that any third-party compliance consultants utilized by wholesalers must be approved by the state board. Furthermore, it sets specific notice periods for potential violations and requires the board to impose a minimum $10,000 fine for violations of these procedural requirements. The bill includes an emergency clause to make these protections effective immediately upon signing.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are local pharmacies and licensed healthcare providers who dispense controlled substances. These entities gain legal protections against sudden, unilateral, or opaque decisions by wholesale distributors to restrict or terminate their access to medication supply chains, which could otherwise disrupt their ability to serve patients. Additionally, the Arkansas State Board of Pharmacy benefits from increased regulatory oversight and authority over the compliance practices of wholesale distributors.
Who Might Suffer?
The primary entities negatively impacted are pharmaceutical wholesale distributors, who will face increased regulatory burdens, administrative costs, and potential legal or financial liability if they fail to adhere to the newly mandated due process requirements. Distributors may also face operational delays in addressing actual or suspected cases of prescription drug diversion, as they are now required to follow a lengthy, prescribed process before taking restrictive action against customers they believe are behaving suspiciously.
Vote Records
Third Reading
April 3, 2023View individual votes (35)
| Legislator | Party | Chamber | Vote |
|---|---|---|---|
| Jane English | Republican | Senate | Yea |
| Linda Chesterfield | Democrat | Senate | Yea |
| Jonathan Dismang | Republican | Senate | Yea |
| Greg Leding | Democrat | Senate | Yea |
| Missy Irvin | Republican | Senate | Yea |
| Bryan King | Republican | Senate | Yea |
| Kim Hammer | Republican | Senate | Yea |
| Stephanie Flowers | Democrat | Senate | Yea |
| Frederick Love | Democrat | Senate | Yea |
| Terry Rice | Republican | Senate | Yea |
| Reginald Murdock | Democrat | Senate | Yea |
| Gary Stubblefield | Republican | Senate | Yea |
| Jim Dotson | Republican | Senate | NV |
| John Payton | Republican | Senate | Yea |
| Alan Clark | Republican | Senate | Yea |
| Ronald Caldwell | Republican | Senate | Yea |
| Bart Hester | Republican | Senate | Yea |
| Jimmy Hickey | Republican | Senate | Yea |
| Dan Sullivan | Republican | Senate | Yea |
| David Wallace | Republican | Senate | Yea |
| Blake Johnson | Republican | Senate | Yea |
| Justin Boyd | Republican | Senate | Yea |
| Clarke Tucker | Democrat | Senate | Yea |
| Scott Flippo | Republican | Senate | Yea |
| Clint Penzo | Republican | Senate | Yea |
| Mark Johnson | Republican | Senate | Yea |
| Ricky Hill | Republican | Senate | Yea |
| Breanne Davis | Republican | Senate | Yea |
| Ben Gilmore | Republican | Senate | Yea |
| Joshua Bryant | Republican | Senate | Yea |
| Matt McKee | Republican | Senate | Yea |
| Jim Petty | Republican | Senate | Yea |
| Steve Crowell | Republican | Senate | Yea |
| Tyler Dees | Republican | Senate | Yea |
| Matt Stone | Republican | Senate | Yea |
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