Senate committee hits snag on prescriptions

Thursday, Feb. 10, 2005 | 11:11 a.m.

CARSON CITY -- A bill that would give the state Board of Pharmacy greater authority to stop counterfeit prescription drugs from coming into Nevada ran into opposition at a state Senate committee hearing this morning.

Fred Hillerby, a lobbyist for the state board, told the Senate Committee on Commerce and Labor that more needs to be done to keep mislabeled or diluted drugs out of Nevada.

SB37, introduced by Sen. Valerie Wiener, D-Las Vegas, would create a tighter tracking system for prescription drugs, would allow the board to require fingerprinting of those working in the wholesale distribution of prescription drugs and would require the distribution companies to be bonded.

There are presently 438 wholesale companies licensed by the board, with 400 of them based outside of Nevada but shipping drugs into the state.

But Sen. Mike Schneider, D-Las Vegas, noted that the bill doesn't touch the companies on the Internet that offer prescription drugs.

"We can't regulate anybody on the Internet," he said. "I can punch something in (into the computer) and have it shipped to my office tomorrow."

Sen. Warren Hardy, R-Las Vegas, predicted that if the state does a good job on companies it has authority over, "the federal government will have no choice but to get involved" in regulating Internet drug wholesalers.

The pharmacy board last year fined Dutchess Business Services of Las Vegas $1 million and revoked its license for selling counterfeit Serostim. Serostim is used in treating HIV. The board also fined an associated company, Legend Pharmaceutical Company, $370,000 and revoked the license for the same offense, said Louis Ling, the pharmacy board's lawyer.

The fines are now being appealed in district court in Las Vegas.

Rob Miller, the owner of Caladon Health Solutions in Las Vegas, which he described as a small wholesaler, said the proposed bill was too broad. He said he did not mind being fingerprinted. And he has filled out an 11-page personal history to get a state license.

But he said his employees might object. He said he was not sure where he could get a $100,000 bond as required in the bill. And the bill would hold him responsible for the actions of others before he ever received any of the drugs for re-distribution.

Miller, who described himself as a "small wholesaler" said, "I see a problem in that I've been held responsible for the administrative work of those I have control over."

The bill was referred to a subcommittee.

On the fingerprinting issue, Sen. Maggie Carlton, D-North Las Vegas told Miller that almost every worker in the gaming industry must submit fingerprints. And Hillerby said there was a "large market" for getting these bonds.

Hillerby said the pharmacy board wants to "know where these drugs have been and where they have been shipped to cut down on counterfeit drugs."

The pharmacy board has adopted a regulation seeking to tighten the tracking of the drugs. But Hillerby said the board needs authority to do the fingerprinting and the bonding from the Legislature.

"Hopefully we can weed out (the counterfeit) drugs before they end up in drug stores and hospitals," Hillerby said.