KRS 315.4106: Eligibility factors for initial licensure and renewal for third-party

logistics provider.

(1) The board shall consider, at a minimum, the following factors in determining

the eligibility for initial licensure and renewal of third-party logistics providers:

(a) A finding by a law enforcement agency or regulatory agency that the

applicant or any owners of an applicant has violated federal, state, or

local laws;

(b) Suspension, revocation, or any other sanction against a license currently

or previously held by the applicant or any of its owners for a violation of

federal or state law;

(c) A finding that the applicant or any of its owners are guilty of or pleaded

guilty or nolo contendere to violating federal, state, or local laws;

(d) The furnishing by the applicant of false or fraudulent material in any

application;

(e) Failure to maintain or make available to the board or to federal, state, or

local law enforcement officials the records required to be maintained by

third-party logistics providers; and

(f) Any other factors or qualifications that the board considers relevant to

and consistent with the public health and safety. Any factors inconsistent

with federal standards shall not be applied.

(2) A licensee who has no record of providing third-party logistics services

involving prescription drugs during a routine inspection may have its

subsequent renewal application referred to the board for review and possible

discipline, and the board may require the licensee to appear before the board

at the review.

(3) A third-party logistics provider shall have and follow a diversion detection and

loss prevention plan that includes all prescription drugs, which shall be

immediately available to the board or its agents upon request.

(4) The board shall have the right to deny licensure if it determines that granting

the license would not be consistent with public health and safety.