Title 21, Food and DrugsRelease 119-73not60

§360eee–2 National Standards for Prescription Drug Wholesale Distributors

Title 21 › Chapter 9— FEDERAL FOOD, DRUG, AND COSMETIC ACT › Subchapter V— DRUGS AND DEVICES › Part H— Pharmaceutical Distribution Supply Chain › § 360eee–2

Last updated Apr 5, 2026|Official source

Summary

The Secretary must create rules for licensing prescription drug wholesale distributors no later than 2 years after November 27, 2013 (by November 27, 2015). The rules must apply to all State and Federal licenses described under section 353(e)(1). They must cover how drugs are stored and handled, what records of drug distribution must be kept, bond or other security to get or renew a license (usually $100,000, or $25,000 if the wholesaler had $10,000,000 or less in gross receipts the prior year), fingerprint and background checks for facility managers or reps, qualifications for key staff, and required physical inspections of facilities soon after the initial application. If a distributor already has an accepted bond in one State, other States may waive a second bond. The rules must bar people from getting or keeping a wholesale license if they were convicted of a felony related to wholesale distribution, a felony violating subsection (i) or (k) of section 331, or a felony under 18 U.S.C. 1365 (product tampering), or if they have a pattern of serious violations that could cause death or serious harm. In making the rules, the Secretary must publish a proposed rule with the text, allow at least 60 days for public comment, and set the final rule to take effect 2 years after it is published.

Full Legal Text

Title 21, §360eee–2

Food and Drugs, Source: USLM XML via OLRC

(a)The Secretary shall, not later than 2 years after November 27, 2013, establish by regulation standards for the licensing of persons under section 353(e)(1) of this title, including the revocation, reissuance, and renewal of such license.
(b)For the purpose of ensuring uniformity with respect to standards set forth in this section, the standards established under subsection (a) shall apply to all State and Federal licenses described under section 353(e)(1) of this title and shall include standards for the following:
(1)The storage and handling of prescription drugs, including facility requirements.
(2)The establishment and maintenance of records of the distributions of such drugs.
(3)The furnishing of a bond or other equivalent means of security, as follows:
(A)(i)For the issuance or renewal of a wholesale distributor license, an applicant that is not a government owned and operated wholesale distributor shall submit a surety bond of $100,000 or other equivalent means of security acceptable to the State.
(ii)For purposes of clause (i), the State or other applicable authority may accept a surety bond in the amount of $25,000 if the annual gross receipts of the previous tax year for the wholesaler is $10,000,000 or less.
(B)If a wholesale distributor can provide evidence that it possesses the required bond in a State, the requirement for a bond in another State shall be waived.
(4)Mandatory background checks and fingerprinting of facility managers or designated representatives.
(5)The establishment and implementation of qualifications for key personnel.
(6)The mandatory physical inspection of any facility to be used in wholesale distribution within a reasonable time frame from the initial application of the facility and to be conducted by the licensing authority or by the State, consistent with subsection (c).
(7)In accordance with subsection (d), the prohibition of certain persons from receiving or maintaining licensure for wholesale distribution.
(c)To satisfy the inspection requirement under subsection (b)(6), the Federal or State licensing authority may conduct the inspection or may accept an inspection by the State in which the facility is located, or by a third-party accreditation or inspection service approved by the Secretary or the State licensing such wholesale distributor.
(d)The standards established under subsection (a) shall include requirements to prohibit a person from receiving or maintaining licensure for wholesale distribution if the person—
(1)has been convicted of any felony for conduct relating to wholesale distribution, any felony violation of subsection (i) or (k) of section 331 of this title, or any felony violation of section 1365 of title 18 relating to product tampering; or
(2)has engaged in a pattern of violating the requirements of this section, or State requirements for licensure, that presents a threat of serious adverse health consequences or death to humans.
(e)The Secretary, in promulgating any regulation pursuant to this section, shall, notwithstanding section 553 of title 5
(1)issue a notice of proposed rulemaking that includes a copy of the proposed regulation;
(2)provide a period of not less than 60 days for comments on the proposed regulation; and
(3)provide that the final regulation take effect on the date that is 2 years after the date such final regulation is published.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 2015, see section 204(c) of Pub. L. 113–54, set out as an

Effective Date

of 2013 Amendment note under section 353 of this title.

Reference

Citations & Metadata

Citation

21 U.S.C. § 360eee–2

Title 21, Food and Drugs

Last Updated

Apr 5, 2026

Release point: 119-73not60