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SB0966 • 2026

Outsourcing Facilities

Outsourcing Facilities

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
McClain
Last action
2026-03-13
Official status
Senate - Died in Health Policy
Effective date
2026-07-01

Plain English Breakdown

The bill summary does not provide specific details about the criteria for issuing permits or how existing facilities will transition to comply with new requirements.

Outsourcing Facilities Permit Requirements

This bill requires outsourcing facilities to apply for and obtain a permit from the Department of Health before engaging in certain activities related to compounded drug products.

What This Bill Does

  • Requires outsourcing facilities to get a permit from the Department of Health using a form provided by the Board of Pharmacy.
  • Specifies that the Board of Pharmacy must review applications and consider any corrective actions taken by the facility.
  • Allows existing facilities with valid permits issued before July 1, 2026, to continue operating under those permits until they expire or are revoked.
  • Exempts permitted outsourcing facilities from separate state licensing requirements for activities covered under federal law.
  • Requires the Board of Pharmacy to adopt rules for implementing and enforcing these permit requirements.

Who It Names or Affects

  • Outsourcing facilities that compound, dispense, distribute, or furnish compounded drug products in Florida.

Terms To Know

outsourcing facility
A business that prepares and distributes compounded drugs under federal oversight.
compounded drug product
Medications mixed or made by a pharmacist to meet specific needs of individual patients.

Limits and Unknowns

  • The bill does not specify the exact criteria for issuing permits.
  • It is unclear how existing facilities will transition to comply with new permit requirements.

Bill History

  1. 2026-03-13 Senate

    • Died in Health Policy

  2. 2026-01-13 Senate

    • Introduced

  3. 2026-01-07 Senate

    • Referred to Health Policy; Appropriations Committee on Health and Human Services; Rules

  4. 2025-12-18 Senate

    • Filed

Official Summary Text

Outsourcing Facilities; Requiring outsourcing facilities to apply to the Department of Health, using a form prescribed by the Board of Pharmacy, to obtain a permit before engaging in specified activities; requiring the board to review such documentation and consider certain actions of the applicant outsourcing facility; providing that outsourcing facilities holding a valid outsourcing permit issued before a specified date are deemed to be in compliance with certain permitting requirements; providing that the board is the sole state regulatory authority responsible for the permitting, oversight, and discipline of outsourcing facilities, etc.

Current Bill Text

Read the full stored bill text
Florida Senate
-
2026

SB 966

By
Senator McClain

9-01277A-26 2026966__
1 A bill to be entitled
2 An act relating to outsourcing facilities; creating s.
3 465.0199, F.S.; providing legislative findings and
4 intent; requiring outsourcing facilities to apply to
5 the Department of Health, using a form prescribed by
6 the Board of Pharmacy, to obtain a permit before
7 engaging in specified activities; requiring the
8 department to issue outsourcing facility permits to
9 applicants the board certifies as meeting certain
10 criteria; requiring that the initial application for
11 the permit include specified documentation; requiring
12 the board to review such documentation and consider
13 certain actions of the applicant outsourcing facility;
14 prohibiting the department from issuing a permit to an
15 outsourcing facility under certain circumstances;
16 providing that certain outsourcing facilities are only
17 required to obtain an outsourcing facility permit;
18 requiring outsourcing facilities to obtain additional
19 applicable permits if they engage in certain
20 activities; providing applicability; providing that
21 outsourcing facilities holding a valid outsourcing
22 permit issued before a specified date are deemed to be
23 in compliance with certain permitting requirements;
24 authorizing such facilities to continue operating
25 under such permit until a certain condition occurs;
26 requiring the board and the department to rely on and
27 recognize certain federal inspection reports as
28 satisfying state inspection requirements for purposes
29 of initial permitting and subsequent renewals;
30 authorizing the department to conduct inspections
31 under certain circumstances; providing that the board
32 is the sole state regulatory authority responsible for
33 the permitting, oversight, and discipline of
34 outsourcing facilities; exempting permitted
35 outsourcing facilities from separate licensure or
36 permitting requirements under the Florida Drug and
37 Cosmetic Act for engaging in specified activities;
38 requiring the board to adopt rules; amending s.
39 499.002, F.S.; exempting permitted outsourcing
40 facilities from the applicability of the Florida Drug
41 and Cosmetic Act under certain circumstances;
42 providing an effective date.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
46 Section 1. Section 465.0199, Florida Statutes, is created
47 to read:
48
465.0199 Outsourcing facility permit; inspection; board

49
authority.—

50
(1)

LEGISLATIVE INTENT.—The Legislature finds that

51
outsourcing facilities registered under 21 U.S.C. s. 353b are

52
subject to comprehensive federal inspection and oversight by the

53
United States Food and Drug Administration to ensure the

54
quality, safety, and integrity of compounded drug products. The

55
Legislature further finds that duplicative state and federal

56
inspection regimes, overlapping regulatory requirements, and

57
inconsistent standards among jurisdictions create unnecessary

58
administrative burdens and confusion, thereby diminishing the

59
effectiveness of regulatory oversight. It is the intent of the

60
Legislature to recognize the primacy of federal oversight under

61
21 U.S.C. s. 353b, ensure coordination between federal and state

62
regulatory authorities, and promote efficient regulation of

63
outsourcing facilities while maintaining the protection of the

64
public’s health, welfare, and safety.

65
(2)

PERMIT REQUIRED.—

66
(a)

An outsourcing facility as defined in s. 465.003
which

67
is located within this state must apply to the department, using

68
a form prescribed by the board, and obtain an outsourcing

69
facility permit before engaging in the compounding, dispensing,

70
distributi
ng
, or other furnishing of compounded drug products

71
within this state or in any jurisdiction outside this state.

72
(b)

The department shall issue an outsourcing facility

73
permit to an outsourcing facility that the board certifies
as

74
meeting
the requirements of this chapter and applicable federal

75
law.

76
(c)

An initial application for a
n
outsourcing facility

77
permit under this section must include documentation of an

78
inspection conducted by the United States Food and Drug

79
Administration demonstrating compliance with all
current
federal

80
good manufacturing practices. In reviewing such documentation,

81
the board shall also consider any corrective actions taken by

82
the outsourcing facility in response to observations noted by

83
the
United States
Food and Drug Administration. The department

84
may not issue an initial permit to an outsourcing facility that

85
has not been inspected by the
United States
Food and Drug

86
Administration.

87
(d)

An outsourcing facility that does not engage in

88
patient-specific sterile compounding and dispensing pursuant to

89
a prescription
is

only
required to obtain

an outsourcing

90
facility permit. However, if the outsourcing facility engages in

91
patient-specific sterile compounding, it must also obtain the

92
appropriate pharmacy permit corresponding to the type of

93
dispensing conducted, such as a community pharmacy permit or an

94
institutional pharmacy permit.

95
(e)

This subsection applies only to an outsourcing facility

96
that submits an initial application for an outsourcing facility

97
permit on or after July 1, 2026. An outsourcing facility that

98
holds a valid outsourcing facility permit issued by the

99
department before July 1, 2026, is deemed to be in compliance

100
with the permitting requirements of this subsection and may

101
continue to operate under such permit until
its
expiration,

102
renewal, suspension, or revocation in accordance with
this

103
chapter
.

104
(3)

INSPECTION.—

105
(a)

For both initial permitting and renewal, the board
and

106
the department shall rely upon and recognize the outsourcing

107
facility’s most recent inspection report issued by the United

108
States Food and Drug Administration as satisfying any state

109
inspection requirement. For initial licensure, a preoperational

110
inspection

by the United States Food and Drug Administration

111
demonstrating compliance with current good manufacturing

112
practices, together with any corrective actions taken by the

113
facility in response to observations

by the United States Food

114
and Drug Administration, satisfies the state inspection

115
requirement.

116
(b)

The department may conduct an inspection for cause upon

117
receipt of credible evidence of noncompliance or to verify the

118
implementation of corrective actions related to federal

119
findings.

120
(4)

BOARD AUTHORITY.—

121
(a)

The board is the sole state regulatory authority

122
responsible for the permitting, oversight, and discipline of

123
outsourcing facilities under this section.

124
(b)

An outsourcing facility permitted under this section is

125
exempt from separate licensure or permitting
required
under part

126
I of chapter 499 for those activities that fall within the scope

127
of an outsourcing facility pursuant to 21 U.S.C. s. 353b and the

128
Federal Food, Drug, and Cosmetic Act, 21 U.S.C. ss. 301 et seq.

129
(5)

RULEMAKING.—The board shall adopt rules to implement

130
this section, including, but not limited to, procedures for

131
application, renewal, and recognition of federal inspection

132
documentation
.

133 Section 2. Subsection (8) is added to section 499.002,
134 Florida Statutes, to read:
135 499.002 Purpose, administration, and enforcement of and
136 exemption from this part.—
137
(8) This part does not apply to an outsourcing facility

138
that holds a valid outsourcing facility permit issued under s.

139
465.0199

for activities conducted within the scope of such

140
permit pursuant to 21 U.S.C. s. 353b
and the Federal Food, Drug,

141
and Cosmetic Act, 21 U.S.C. ss. 301 et seq
.

142 Section 3. This act shall take effect July 1, 2026.