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LRB-2139/1
JPC:skw&amn
2021 - 2022 LEGISLATURE
March 1, 2021 - Introduced by Senator Wanggaard, cosponsored by Representative
Kerkman. Referred to Committee on Insurance, Licensing and Forestry.
SB163,1,5 1An Act to amend 440.15, 450.01 (11m), 450.01 (21s) and 450.02 (1); and to
2create
440.08 (2) (a) 69g., 450.01 (13w), 450.01 (23) (p) and 450.075 of the
3statutes; relating to: third-party logistics providers, extending the time limit
4for emergency rule procedures, providing an exemption from emergency rule
5procedures, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill creates an optional license for third-party logistics providers that are
located in the state or are located outside the state but provide third-party logistics
provider services in the state. A third-party logistics provider is defined under
current law as a person that contracts with a prescription drug manufacturer to
provide or coordinate warehousing, distribution, or other services on behalf of the
manufacturer but that does not take title to the manufacturer's prescription drug or
have general responsibility to direct the prescription drug's sale or disposition.
The bill requires an applicant for a third-party logistics provider license to
submit certain information prior to licensure, including proof of a recent facility
inspection, and a personal statement relating to a designated representative of the
facility. The license created by this bill will no longer apply if the federal Food and
Drug Administration establishes a licensing program for third-party logistics
providers under federal law and the Pharmacy Examining Board determines that
state licensure is not required for a resident third-party logistics provider to provide
third-party logistics services in another state.

The bill also directs the Pharmacy Examining Board to promulgate rules that
regulate third-party logistics providers and out-of-state third-party logistics
providers consistent with federal law. The authority of the Pharmacy Examining
Board to promulgate rules is restricted to only rules that are equivalent to
requirements under federal law, and only rules that do not mandate licensing under
state law.
The bill requires the Pharmacy Examining Board to issue interim licenses for
third-party logistics providers and out-of-state third-party logistics providers
between the date of enactment until permanent or emergency rules take effect,
whichever is sooner, if, in the opinion of the board, the applicant is currently in
compliance with federal law relating to third-party logistics providers. An interim
license to act as a third-party logistics provider or out-of-state third-party logistics
provider expires 90 days after the date that emergency rules take effect, or 90 days
after the date that permanent rules take effect, whichever is sooner. No fee is
required for a holder of an interim license to act as a third-party logistics provider
or an out-of-state third-party logistics provider.
Finally, the bill requires third-party logistics providers, whether or not
licensed under the bill, to cooperate with inspections of their facilities and delivery
vehicles.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB163,1 1Section 1 . 440.08 (2) (a) 69g. of the statutes is created to read:
SB163,2,32 440.08 (2) (a) 69g. Third-party logistics provider: July 1 of each
3even-numbered year.
SB163,2 4Section 2 . 440.15 of the statutes is amended to read:
SB163,2,9 5440.15 No fingerprinting. Except as provided under ss. 440.03 (13) (c),
6441.51 (5) (a) 5., 448.980 (5) (b) 3., and 448.985 (3) (a) 4., 450.071 (3) (c) 9., and 450.075
7(3) (c) 9.,
the department or a credentialing board may not require that an applicant
8for a credential or a credential holder be fingerprinted or submit fingerprints in
9connection with the department's or the credentialing board's credentialing.
SB163,3 10Section 3 . 450.01 (11m) of the statutes is amended to read:
SB163,3,3
1450.01 (11m) “Facility" means a location where a wholesale distributor or
23rd-party logistics provider
stores, distributes, handles, repackages, or offers for
3sale
other services related to prescription drugs.
SB163,4 4Section 4 . 450.01 (13w) of the statutes is created to read:
SB163,3,105 450.01 (13w) “Out-of-state 3rd-party logistics provider” means a person
6located outside this state that contracts with a prescription drug manufacturer to
7provide or coordinate warehousing, distribution, or other services within this state
8on behalf of the manufacturer but that does not take title to the manufacturer's
9prescription drug or have general responsibility to direct the prescription drug's sale
10or disposition.
SB163,5 11Section 5 . 450.01 (21s) of the statutes is amended to read:
SB163,3,1612 450.01 (21s)Third party Third-party logistics provider" means a person that
13contracts with a prescription drug manufacturer to provide or coordinate
14warehousing, distribution, or other services on behalf of the manufacturer but that
15does not take title to the manufacturer's prescription drug or have general
16responsibility to direct the prescription drug's sale or disposition.
SB163,6 17Section 6 . 450.01 (23) (p) of the statutes is created to read:
SB163,3,1918 450.01 (23) (p) The services of a 3rd-party logistics provider or out-of-state
193rd-party logistics provider.
SB163,7 20Section 7 . 450.02 (1) of the statutes is amended to read:
SB163,4,221 450.02 (1) The department shall keep a record of the proceedings and a register
22of the names and places of practice or business of pharmacies, manufacturers,
23wholesale distributors, 3rd-party logistics providers, out-of-state 3rd-party
24logistics providers,
and other persons licensed under this chapter, and the books,

1registers and records of the department shall be prima facie evidence of the matters
2recorded.
SB163,8 3Section 8 . 450.075 of the statutes is created to read:
SB163,4,9 4450.075 Third-party logistics providers; licensure. (1) License allowed.
5A person acting as a 3rd-party logistics provider or an out-of-state 3rd-party
6logistics provider of any drug or device may apply to obtain a license from the board
7under this section. Where operations are conducted at more than one facility, a
8person acting as a 3rd-party logistics provider or out-of-state 3rd-party logistics
9provider may apply to obtain a license from the board for each such facility.
SB163,4,12 10(2) Application. An applicant for a license under this section shall submit a
11form provided by the board showing all of the following and swear or affirm the
12truthfulness of each item in the application:
SB163,4,1313 (a) The name, business address, and telephone number of the applicant.
SB163,4,1414 (b) All trade or business names used by the applicant.
SB163,4,1715 (c) Names, addresses, and telephone numbers of contact persons for all
16facilities used by the applicant for the warehousing, distribution, or other services
17on behalf of the manufacturer of prescription drugs.
SB163,4,1818 (d) The type of ownership or operation for the applicant's business.
SB163,4,2019 (e) If the applicant's 3rd-party logistics provider business is a partnership, the
20name of each partner and the name of the partnership.
SB163,4,2321 (f) If the applicant's 3rd-party logistics provider business is a corporation, the
22name of each corporate officer and director, the name of the corporation, and the state
23of incorporation.
SB163,4,2524 (g) If the applicant's 3rd-party logistics provider business is a sole
25proprietorship, the name of the sole proprietor and the name of the business entity.
SB163,5,2
1(h) A list of all licenses and permits issued to the applicant by any other state
2that authorizes the applicant to warehouse or distribute prescription drugs.
SB163,5,33 (i) The name, address, and telephone number of a designated representative.
SB163,5,54 (j) For the person identified as the designated representative in par. (i), a
5personal information statement that contains all of the following:
SB163,5,66 1. The person's date and place of birth.
SB163,5,87 2. The person's place of residence for the 7-year period immediately preceding
8the date of the application.
SB163,5,109 3. The person's occupations, positions of employment, and offices held during
10the 7-year period immediately preceding the date of the application.
SB163,5,1211 4. The name and addresses for each business, corporation, or other entity listed
12in subd. 3.
SB163,5,1613 5. A statement indicating whether the person has been, during the 7-year
14period immediately preceding the date of the application, the subject of any
15proceeding for the revocation of any business or professional license and the
16disposition of the proceeding.
SB163,5,2117 6. A statement indicating whether the person has been, during the 7-year
18period immediately preceding the date of the application, enjoined by a court, either
19temporarily or permanently, from possessing, controlling, or distributing any
20prescription drug, and a description of the circumstances surrounding the
21injunction.
SB163,6,222 7. A description of any involvement by the person during the past 7 years with
23any business, including investments other than the ownership of stock in a publicly
24traded company or mutual fund, that manufactured, administered, prescribed,

1distributed, or stored pharmaceutical products or drugs, and a list of any lawsuits
2in which such a business was named as a party.
SB163,6,83 8. A description of any misdemeanor or felony criminal offense of which the
4person was, as an adult, found guilty, whether adjudication of guilt was withheld or
5the person pleaded guilty or no contest. If the person is appealing a criminal
6conviction, the application shall include a copy of the notice of appeal, and the person
7shall submit a copy of the final disposition of the appeal not more than 15 days after
8a final disposition is reached.
SB163,6,109 9. A photograph of the person taken within the 12-month period immediately
10preceding the date of the application.
SB163,6,1511 (k) A statement that each facility used by the applicant for 3rd-party logistics
12provider services has been inspected in the 3-year period immediately preceding the
13date of the application by the board, a pharmacy examining board of another state,
14the National Association of Boards of Pharmacy, or another accrediting body
15recognized by the board, with the date of each such inspection.
SB163,6,18 16(3) Licensure. The board shall grant a license to an applicant to act as a
173rd-party logistics provider or an out-of-state 3rd-party logistics provider if all of
18the following apply:
SB163,6,1919 (a) The applicant pays the fee specified in s. 440.05 (1).
SB163,6,2220 (b) The inspections conducted pursuant to sub. (2) (k) satisfy requirements
21adopted by the board for 3rd-party logistics providers or out-of-state 3rd-party
22logistics providers.
SB163,6,2423 (c) All of the following apply to each person identified by the applicant as a
24designated representative:
SB163,6,2525 1. The person is at least 21 years old.
SB163,7,3
12. The person has been employed full time for at least 3 years in a pharmacy
2or with a wholesale prescription drug distributor in a capacity related to the
3dispensing of and distribution of, and record keeping related to, prescription drugs.
SB163,7,44 3. The person is employed by the applicant full time in a managerial position.
SB163,7,105 4. The person is physically present at the 3rd-party logistics provider's or
6out-of-state 3rd-party logistics provider's facility during regular business hours
7and is involved in and aware of the daily operation of the 3rd-party logistics provider
8or the out-of-state 3rd-party logistics provider. This subdivision does not preclude
9the person from taking authorized sick leave and vacation time or from being absent
10from the facility for other authorized business or personal purposes.
SB163,7,1211 5. The person is actively involved in and aware of the daily operation of the
123rd-party logistics provider or the out-of-state 3rd-party logistics provider.
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