everything you want to know (and don't) about arkansas politics

Republican Sponsorship
Healthcare

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.

Failed

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, 2023
Yea: 34 Nay: 0 NV: 1 Absent: 0 Passed
View 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
Read Full Bill on arkleg.state.ar.us