HONOURABLE TERRY LAKE
MINISTER OF HEALTH

BILL 6 – 2016

PHARMACY OPERATIONS AND DRUG SCHEDULING AMENDMENT ACT, 2016

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the Pharmacy Operations and Drug Scheduling Act, S.B.C. 2003, c. 77, is amended

(a) by adding the following definitions:

"application committee" means an application committee established for the purposes of this Act under section 19 (1) (t) of the Health Professions Act;

"criminal record history" means a criminal record history under section 5.1;

"direct owner" means the owner of a pharmacy, other than an indirect owner; ,

(b) by repealing the definition of "director",

(c) by adding the following definitions:

"indirect owner", in relation to a pharmacy, means,

(a) in respect of a corporation that is traded publicly, the officers and directors of the corporation, and

(b) in respect of a corporation that is not traded publicly,

(i) the officers, directors and shareholders of the corporation, and

(ii) if a subsidiary corporation, the officers, directors and shareholders of the parent corporation;

"information or billing contravention" has the same meaning as under the Pharmaceutical Services Act,

(d) by repealing the definition of "owner",

(e) in the definition of "pharmacy" by adding ", or in respect of which a direct owner seeks to have a pharmacy licence issued, renewed or reinstated," after "licensed under this Act", and

(f) by repealing the definition of "pharmacy licence" and substituting the following:

"pharmacy licence" means a pharmacy licence issued, renewed or reinstated under section 4; .

2 Sections 2 to 4 are repealed and the following substituted:

Application for pharmacy licence

2  (1) A direct owner may apply

(a) for a new pharmacy licence,

(b) to renew a pharmacy licence, if the application is made and the applicable fee paid on or before the due date specified in the bylaws, and

(c) to reinstate a pharmacy licence that has been expired for 90 days or less.

(2) A direct owner may apply for a new pharmacy licence or to renew or reinstate the direct owner's pharmacy licence by submitting to the registrar all of the following:

(a) an application made in accordance with the bylaws;

(b) a criminal record history as required under section 5.1 (a);

(c) the applicable fee specified in the bylaws;

(d) in the case of an application

(i) for a new pharmacy licence, proof satisfactory to the registrar that the direct owner is eligible, under section 3, to hold a pharmacy licence, or

(ii) to renew or reinstate a pharmacy licence, an attestation, in a form acceptable to the registrar, that the direct owner

(A) continues to be eligible, under section 3, to hold a pharmacy licence, and

(B) has, throughout the term of the pharmacy licence to be renewed or reinstated, complied with all duties of a direct owner imposed under this Act and under the Health Professions Act.

Eligibility for pharmacy licence

3  A direct owner is eligible to hold a pharmacy licence if all of the following apply:

(a) the ownership of the pharmacy complies with section 5 and the bylaws;

(b) no direct owner, indirect owner or manager is subject to a limitation imposed by the discipline committee that precludes him or her from being a direct owner, an indirect owner or a manager;

(c) the manager is a pharmacist, and that pharmacist will have responsibility for the actual management and operation of the pharmacy;

(d) no direct owner, indirect owner or manager is or has been the subject of an order or a conviction for an information or billing contravention;

(e) no direct owner, indirect owner or manager has, within the previous 6 years, been convicted of an offence prescribed under the Pharmaceutical Services Act for the purposes of section 45 (1) (a) (ii) of that Act;

(f) no direct owner, indirect owner or manager has, within the previous 6 years, been convicted of an offence under the Criminal Code (Canada), other than an offence to which paragraph (e) applies;

(g) no direct owner, indirect owner or manager has, within the previous 6 years, had a judgment entered against him or her in a court proceeding related to commercial or business activities that occurred in relation to the provision of

(i) drugs or devices, or

(ii) substances or related services within the meaning of the Pharmaceutical Services Act;

(h) no direct owner, indirect owner or manager has, within the previous 6 years, had his or her registration with one of the following bodies suspended or cancelled:

(i) the College of Pharmacists of British Columbia;

(ii) a body, in another province or in a foreign jurisdiction, that regulates the practice of pharmacy in that other province or foreign jurisdiction;

(i) no direct owner, indirect owner or manager has, within the previous 6 years, had limits or conditions imposed on his or her practice of pharmacy as a result of disciplinary action taken by a body referred to in paragraph (h).

Determination respecting pharmacy licence

4  (1) On receipt of an application for a pharmacy licence and the applicable fee, the registrar must issue, renew or reinstate the pharmacy licence, without conditions, if satisfied of both of the following:

(a) that the application is complete and has no false or misleading information;

(b) that the direct owner is eligible, under section 3, to hold a pharmacy licence.

(2) If the registrar is not satisfied of the matters referred to in subsection (1), the registrar must refer the application to the application committee.

(3) On receiving a referral under subsection (2), the application committee may do one or more of the following:

(a) request additional information or evidence from the direct owner, an indirect owner and the proposed manager;

(b) take an action described in subsection (4);

(c) refuse to issue, renew or reinstate the pharmacy licence.

(4) If satisfied that an application referred under subsection (2) is complete and has no false or misleading information, the application committee may issue, renew or reinstate the pharmacy licence as follows:

(a) with conditions, if the application committee is satisfied that the direct owner is eligible, under section 3, to hold a pharmacy licence if

(i) conditions are attached to the pharmacy licence, or

(ii) existing conditions are varied;

(b) despite section 3, with or without conditions, if the direct owner is not eligible under section 3 (f), (g), (h) or (i) to hold a pharmacy licence but the application committee is satisfied that

(i) the conviction referred to in section 3 (f) was for an offence that is not relevant to the provision of drugs or devices or to the operation of a pharmacy, or

(ii) the circumstances resulting in the judgment referred to in section 3 (g), the suspension or cancellation referred to in section 3 (h) or the disciplinary action referred to in section 3 (i) are such that there is minimal risk to the public if the pharmacy licence is issued, renewed or reinstated.

(5) The application committee may delegate to the registrar one or more of its powers under this section, but a delegation does not prevent the application committee from exercising the delegated power at any time.

If pharmacy licence issued

4.1  (1) If the registrar or the application committee issues, renews or reinstates a pharmacy licence, the licence must include all of the following:

(a) the name and address of the pharmacy;

(b) the name of the direct owner;

(c) the name of the manager.

(2) A direct owner and a manager must display a pharmacy licence in the pharmacy in a place conspicuous to the public.

(3) Unless a pharmacy licence will expire in less than 30 days, a direct owner must give to the registrar 30 days' written notice of any changes respecting the name or layout of the pharmacy.

(4) On receipt of notification of a change of name under subsection (3) and the fee specified by the bylaws, the registrar must amend the licence to reflect the new name.

(5) A pharmacy licence is valid for 12 months.

(6) If a direct owner fails to renew a pharmacy licence in accordance with section 2, the licence becomes invalid on its expiry date.

3 Section 5 is amended

(a) by repealing subsection (1) and substituting the following:

(1) Except as permitted under the regulations, a person authorized by an enactment to prescribe drugs must not be a direct owner or an indirect owner. ,

(b) in subsection (2) by striking out "A pharmacy must be owned by" and substituting "A pharmacy must have, as its direct owner,", and

(c) by repealing subsection (3).

4 The following section is added:

Criminal record history required

5.1  A direct owner, an indirect owner and a manager must provide to the registrar the information specified in the bylaws respecting the direct owner's, indirect owner's and manager's history of charges and convictions as follows:

(a) on the making of an application for a new pharmacy licence;

(b) if requested by the application committee, the discipline committee or the inquiry committee, within the time requested;

(c) if the direct owner ceases to be eligible, under section 3 (e) or (f), to hold a pharmacy licence, within 20 days of ceasing to be eligible;

(d) 5 years from the date that the information was last provided under this section.

5 Section 6 is amended

(a) in subsection (1) (c) by striking out "the ownership of the pharmacy changes." and substituting "the direct owner of the pharmacy changes.", and

(b) in subsections (2) and (3) by striking out "owner" and substituting "direct owner".

6 Section 7 is repealed and the following substituted:

Unlawful operation

7  (1) Unless authorized under a bylaw or by a pharmacy licence, a person must not own, operate or manage the area of a premises where drugs or devices are

(a) stored, or

(b) dispensed or sold to the public.

(2) A person must not own, operate or manage a pharmacy except in accordance with a pharmacy licence.

(3) Unless authorized under a bylaw or by a pharmacy licence, a direct owner, an indirect owner and a manager must not operate or permit the operation of a pharmacy if the direct owner ceases to be eligible, under section 3, to hold a pharmacy licence.

(4) A person must not assume or use in any form, combination or manner the words "apothecary", "pharmacy", "medicines", "drugs", "drug store", "drug department" or any other words of similar meaning that imply licensing under this Act.

Compliance

7.1  (1) A direct owner, an indirect owner and a manager must comply with all applicable duties imposed under this Act and under the Health Professions Act.

(2) A direct owner and an indirect owner must give written notice to the registrar, within the prescribed period, of the following:

(a) if an event described in section 6 (1) (a) or (b) occurs;

(b) if the direct owner or an indirect owner of the pharmacy changes;

(c) if the direct owner ceases to be eligible, under section 3, to hold a pharmacy licence.

(3) A manager must give written notice to the registrar, within the prescribed period, if the direct owner of the pharmacy being managed by the manager ceases to be eligible, under section 3, to hold a pharmacy licence.

7 Section 20 is amended

(a) by repealing subsection (1) (a) and substituting the following:

(a) a direct owner or an indirect owner as if the direct owner or indirect owner were a registrant, and ,

(b) by adding the following subsection:

(2.1) For the purpose of subsection (1), a reference in sections 32 to 40 of the Health Professions Act to

(a) "under this Act" is deemed to read "under the Pharmacy Operations and Drug Scheduling Act or under this Act", and

(b) "this Act, a regulation or a bylaw" is deemed to read "the Pharmacy Operations and Drug Scheduling Act, this Act, or the regulations or bylaws made under either the Pharmacy Operations and Drug Scheduling Act or this Act". ,

(c) by repealing subsection (3) and substituting the following:

(3) For the purpose of subsection (1), a pharmacy licence may be suspended or cancelled or other appropriate action taken if

(a) the operation of the pharmacy is not in compliance with

(i) this Act,

(ii) the Health Professions Act,

(iii) the regulations or bylaws made under either this Act or the Health Professions Act, or

(iv) the conditions of the pharmacy licence, or

(b) the direct owner ceases to be eligible, under section 3, to hold a pharmacy licence. ,

(d) by repealing subsection (4) (a) and substituting the following:

(a) prohibiting a person from being a direct owner or an indirect owner, or , and

(e) in subsection (4) (b) by striking out "an owner or director." and substituting "a direct owner or an indirect owner."

8 Section 21 is amended

(a) in subsection (1) by adding the following paragraphs:

(c.1) the information and fees that must be provided for the purpose of making an application to issue, renew or reinstate a pharmacy licence, including specifying different requirements and fees for different purposes;

(d.1) the information that must be provided for the purpose of a criminal record history, including

(i) making requirements respecting the source or verification of the information, and

(ii) making different requirements depending on the purpose for which the information is required under this Act;

(d.2) the requirements respecting the form and manner in which

(i) information required under this Act must be provided,

(ii) an application under this Act may be made, or

(iii) a notice under this Act may be given; ,

(b) in subsection (1) (d) (ii) by adding "including with respect to the location within a premises to be occupied by a pharmacy, and a pharmacy's layout and floor plans," after "requirements for premises,",

(c) by repealing subsection (1) (g) and substituting the following:

(g) the duties of direct owners, indirect owners and managers; ,

(d) by adding the following subsection:

(1.1) The board may delegate to the registrar the power to establish forms for the purposes of this Act. , and

(e) in subsection (9) (a) by striking out "registrant and manager," and substituting "direct owner and manager,".

9 Section 34.1 is amended by adding the following paragraphs:

(c) for the purposes of section 5 (1),

(i) prescribing classes of persons who are permitted to be direct owners or indirect owners, and

(ii) respecting circumstances in which persons are permitted to be direct owners or indirect owners;

(d) prescribing periods for the purposes of section 7.1.

Transitional Provision

Transition – pharmacy licence applications

10  If an application for a pharmacy licence has been received under any of sections 2 to 4 of the Pharmacy Operations and Drug Scheduling Act as those sections read immediately before their repeal by this Act, but no decision respecting whether to issue, renew or reinstate the pharmacy licence has been made before this section comes into force,

(a) an application made by a manager is deemed to have been made by a direct owner,

(b) sections 2 to 5.1 of the Pharmacy Operations and Drug Scheduling Act, as enacted or amended by this Act, apply to the application, and

(c) a decision respecting whether to issue, renew or reinstate the pharmacy licence must not be made until the direct owner complies with all applicable requirements under sections 2 to 5.1 of the Pharmacy Operations and Drug Scheduling Act, as enacted or amended by this Act.

Consequential Amendment

Health Professions Act

11 Section 25.94 (1) of the Health Professions Act, R.S.B.C. 1996, c. 183, is amended by striking out "and to section 16 (1) of the Pharmacy Operations and Drug Scheduling Act".

Commencement

12  This Act comes into force by regulation of the Lieutenant Governor in Council.