New Zealand Acts

MEDICINES AMENDMENT ACT 2003 - SECT 17

17 New sections 55A to 55G inserted

The principal Act is amended by inserting, after section 55 , the following sections:

55A Additional criteria to be satisfied by pharmacy operators

1 The licensing authority must not grant an application for a licence to operate a pharmacy unless the authority is satisfied that, in addition to satisfying the criteria set out in section 51(1) ,—

a) the applicant is a person who is qualified under any of sections 55D, 55E, or 55G , to be granted a licence to operate a pharmacy; and

b) the applicant is a person who is able to satisfy the condition set out in section 55C .

2 If the licensing authority has reasonable grounds to believe that the holder of a licence to operate a pharmacy has ceased to be a person who satisfies each of the criteria set out in subsection (1) , the licensing authority may suspend the licence for a reasonable period to enable the authority to consider the case.

3 If, after giving the holder of a licence to operate a pharmacy whose licence is suspended under subsection (2) a reasonable opportunity to be heard and after considering any evidence adduced or submissions made by the licensee, the licensing authority is not satisfied that the holder satisfies all of the criteria set out in subsection (1) , the licensing authority may cancel the licence.

4 If, after giving the holder of a licence to operate a pharmacy whose licence is suspended under subsection (2) a reasonable opportunity to be heard and after considering any evidence adduced or submissions made by the licensee, the licensing authority is satisfied that the holder satisfies all of the criteria set out in subsection (1) , the licensing authority must reinstate the licence.

55B Licensing authority may require further information

1 The licensing authority, may for one or more of the purposes set out in subsection (2) , require an applicant for a licence to operate a pharmacy to supply information additional to that contained in the application.

2 The purposes referred to in subsection (1) are—

a) the determination of the nature of the interest held by any person in the pharmacy:

b) the assessment required by section 51(1)(b) (which requires an applicant who is an individual to be a fit and proper person and an applicant who is a body corporate to be of good repute):

c) the assessment required by section 55A(1) .

3 If the applicant fails to supply the information requested within 30 days of the date of the request, or within any further time allowed by the licensing authority, the application lapses.

55C Mandatory condition of licence to operate pharmacy.

It is a condition of every licence to operate a pharmacy that the holder of the licence must not request or require any pharmacist who is employed or engaged in duties at a pharmacy to act in a way that is inconsistent with the applicable professional or ethical standards of pharmacy practice.

55D Restriction on companies operating pharmacies

1 No company may be granted a licence to operate a pharmacy unless any of paragraphs (a) to (e) of subsection (2) apply.

2 A company may be granted a licence to operate a pharmacy if—

a) at all times more than 50% of the share capital of the company is owned by a pharmacist or pharmacists, and effective control of the company is vested in that pharmacist or those pharmacists; or

b) it is exempt from the requirements set out in paragraph (a) under an Order in Council made under section 105C or complies with any modification of those requirements authorised by an Order in Council made under that section; or

c) it is deemed to have been issued with a licence under section 114A(2) ; or

d) the pharmacy is in a hospital owned or operated by the company; or

e) it is a company that, at the commencement of this section, was lawfully operating a pharmacy.

3 Subsection (2)(e) ceases to apply to a company if there is or are a change or changes in the ownership of shares representing 25% of the share capital of the company after the commencement of this section.

4 For the purposes of subsection (2) , pharmacist includes an administrator of the estate of a deceased pharmacist, and an assignee within the meaning of the Insolvency Act 1967 of the estate of a pharmacist, until—

a) the expiry of the period of 1 year after the date of the death of the deceased pharmacist, or the date on which the pharmacist was adjudicated bankrupt, has expired; or

b) subject to any conditions that the licensing authority proposes, the expiry of any extended period or periods permitted by the licensing authority.

Note: 1970 No 143 s 42

55E Restriction on individuals operating or holding majority interest in pharmacies

1 No person, either alone or in partnership, may be granted a licence to operate a pharmacy, or hold a majority interest, in a pharmacy unless

a) the person is a pharmacist; or

b) the person is exempt from the requirements set out in paragraph (a) under an Order in Council made under section 105C or complies with any modification of those requirements authorised by that Order in Council; or

c) the person is deemed to have been issued with a licence under section 114A(2) ; or

d) the pharmacy is in a hospital owned or operated by the person; or

e) the person, at the commencement of this section, was lawfully operating a pharmacy.

2 For the purposes of subsection (1) , a person does not hold an interest in a pharmacy merely by reason of the person's membership of a company, or of any other body of persons (whether corporate or unincorporate) other than a partnership, that is lawfully carrying on business in a pharmacy.

3 For the purposes of subsection (1) ,—  
"person" does not include a company    
"pharmacist" includes the following persons  

a) an administrator of the estate of a deceased pharmacist:

b) an assignee, within the meaning of the Insolvency Act 1967 , carrying on a pharmacy in his or her capacity as assignee of the estate of a pharmacist:

c) a liquidator carrying on a pharmacy under the authority of section 260 and Schedule 6 of the Companies Act 1993 :

d) a receiver or manager of the property of a company carrying on, subject to the Receiverships Act 1993 , a pharmacy comprised in that property.

4 Subsection (3) does not entitle any person to carry on business in a pharmacy after—

a) the expiry of 1 year after the date of the death of the deceased pharmacist, or the date on which the pharmacist was adjudicated bankrupt, or the date of the first appointment of a liquidator, receiver, or manager, in respect of a company that has carried on a pharmacy; or

b) subject to any conditions that the licensing authority imposes, the expiry of any extended period or periods permitted by the licensing authority.

5 In this section and in section 55F , majority interest, in relation to a pharmacy, means an interest in the pharmacy of more than 50% of the value of the business or businesses undertaken in the pharmacy.

Note: 1970 No 143 s 43

55F Prohibition on operating or holding of majority interest in more than 5 pharmacies

1 Despite sections 55D and 55E , and unless subsection (2) or subsection (3) applies,—

a) no company may operate more than 5 pharmacies:

b) no person referred to in section 55E(3) may operate or hold a majority interest in more than 5 pharmacies.

2 Subsection (1) does not apply to any person referred to in section 55E(3) , to the extent that 1 or more pharmacies, or interests in 1 or more pharmacies, are lawfully included in the estate or property that the person is administering, unless section 55E(4) applies.

3 Subsection (1) does not apply to any person who, while attempting to sell 1 pharmacy of which the person is the operator, carries on business in no more than 5 other pharmacies for a period not exceeding 3 months, or, subject to any conditions that the licensing authority imposes, any extended period or periods permitted by the authority.

4 Subsection (3) is subject to sections 55D and 55E .

Note: 1970 No 143 s 45

55G Exemption for mortgagees in possession

1 Despite sections 55D and 55E , a mortgagee in possession of a pharmacy may be granted a licence to operate that pharmacy for a period of 3 months or, subject to any conditions that the licensing authority imposes, for any extended period or periods permitted by the licensing authority.

2 In this section, mortgagee in possession has the same meaning as in section 2 of the Property Law Act 1952 .

Note: 1970 No 143 s 47 .