SESSION WATCH
Died HOUSE · SESSION 2026

No. HB 1037

Outsourcing Facilities
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SPONSOR
Boyles
FILED BY
Nathan Boyles — District 3, Republican [search donations]
EFFECTIVE
7/1/2026
DIED IN
Health Professions & Programs Subcommittee

Filed under Healthcare.

PROVIDED SUMMARY

Outsourcing Facilities; Requires outsourcing facilities apply to DOH, using form prescribed by Board of Pharmacy, to obtain permit before engaging in specified activities; requires department to issue outsourcing facility permits to applicants board certifies as meeting certain criteria; requires that initial application for permit include specified documentation; requires board to review such documentation & consider certain actions of applicant outsourcing facility; prohibits department from issuing permit to outsourcing facility; provides that certain outsourcing facilities are only required to obtain outsourcing facility permit; requires outsourcing facilities to obtain additional applicable permits if they engage in certain activities; provides applicability; provides that outsourcing facilities holding valid outsourcing permit issued before specified date are deemed to be in compliance with certain permitting requirements; authorizes such facilities to continue operating under such permit until certain condition occurs; requires board & department to rely on & recognize certain federal inspection reports as satisfying state inspection requirements for purposes of initial permitting & subsequent renewals; authorizes department to conduct inspections; provides that board is sole state regulatory authority responsible for permitting, oversight, & discipline of outsourcing facilities; exempts permitted outsourcing facilities from separate licensure or permitting requirements under Florida Drug & Cosmetic Act for engaging in specified activities; requires board to adopt rules; exempts permitted outsourcing facilities from applicability of Florida Drug & Cosmetic Act.

Full bill text →

Plain English Summary

AI-GENERATED
Requires drug outsourcing facilities to get a state permit to operate.

Outsourcing facilities -- large-scale drug compounders registered with the FDA under federal law -- must now get a Florida permit from the Board of Pharmacy before compounding, dispensing, distributing, or shipping compounded drugs anywhere, in or out of state.

A facility cannot get its first permit unless it has already passed an FDA inspection showing it meets current federal manufacturing standards. Florida will not permit a facility the FDA has never inspected.

For both new permits and renewals, the state must accept the facility's most recent FDA inspection report instead of doing its own routine inspection, though it can still inspect for cause if there's evidence of a problem.

A facility that only compounds for other providers needs just this one permit. One that also fills patient-specific prescriptions must additionally hold a pharmacy permit, and the whole category is pulled out of separate Florida Drug and Cosmetic Act licensing.

KEY PROVISIONS
§ 1 New state permit required before compounding or shipping drugs majors. 465.0199

AIAn outsourcing facility located in Florida must apply to the Department of Health and get an outsourcing facility permit before compounding, dispensing, distributing, or furnishing compounded drugs anywhere, in state or out.

“must apply to the department, using a form prescribed by the board, and obtain an outsourcing facility permit before engaging in the compounding” bill text, line 67 →
§ 2 No initial permit without a prior FDA inspection majors. 465.0199

AIThe department may not issue an outsourcing facility its first Florida permit unless the FDA has already inspected the facility and found it meets current federal manufacturing standards.

“The department may not issue an initial permit to an outsourcing facility that has not been inspected by the United States Food and Drug Administration” bill text, line 83 →
§ 3 State inspections replaced by reliance on FDA reports majors. 465.0199

AIFor both initial permits and renewals, the board and department must rely on and treat the facility's most recent FDA inspection report as satisfying Florida's own inspection requirement.

“the department shall rely upon and recognize the outsourcing facility's most recent inspection report issued by the United States Food and Drug Administration” bill text, line 106 →
§ 4 Board of Pharmacy becomes sole regulator, exempt from drug act licensing majors. 465.0199

AIThe Board of Pharmacy is the sole state authority over permitting, oversight, and discipline of outsourcing facilities, which are exempted from separate licensure under the Florida Drug and Cosmetic Act for in-scope activities.

“The board is the sole state regulatory authority responsible for the permitting, oversight, and discipline of outsourcing facilities under this section” bill text, line 31 →
§ 5 Patient-specific compounding requires an added pharmacy permit moderates. 465.0199

AIA facility that does patient-specific sterile compounding under a prescription must obtain a community or institutional pharmacy permit in addition to the outsourcing facility permit; other facilities need only the one permit.

“if the outsourcing facility engages in patient-specific sterile compounding, it must also obtain the appropriate pharmacy permit corresponding to the type of dispensing conducted” bill text, line 90 →
§ 6 Existing permit holders are grandfathered in moderates. 465.0199

AIA facility that already holds a valid outsourcing facility permit issued before July 1, 2026 is deemed compliant with the new rules and can keep operating under that permit until it expires, is renewed, suspended, or revoked.

“is deemed to be in compliance with the permitting requirements of this subsection and may continue to operate under such permit until its expiration” bill text, line 99 →
TIMELINE
3/13/2026
Died in Health Professions & Programs Subcommittee
1/13/2026
1st Reading (Original Filed Version)
1/12/2026
Now in Health Professions & Programs Subcommittee
1/12/2026
Referred to Health & Human Services Committee
1/12/2026
Referred to Health Care Budget Subcommittee
1/12/2026
Referred to Health Professions & Programs Subcommittee
1/6/2026
Filed
1 EARLIER →
STATUTES IT CHANGES
s. 465.0199
+665 / −0
s. 499.002
+50 / −0