[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3794 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 524
119th CONGRESS
  2d Session
                                S. 3794

 To amend the Federal Food, Drug, and Cosmetic Act to further regulate 
   compounding pharmacies and outsourcing facilities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 5, 2026

Mr. Banks (for himself and Mr. Heinrich) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

                             July 27, 2026

               Reported by Mr. Cassidy, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Food, Drug, and Cosmetic Act to further regulate 
   compounding pharmacies and outsourcing facilities, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Safeguarding Americans from 
Fraudulent and Experimental Drugs Act of 2026'' or the ``SAFE Drugs Act 
of 2026''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS RELATING TO COMPOUNDING OF DRUG 
              PRODUCTS.</DELETED>

<DELETED>    Section 503A(b) of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 353a(b)) is amended--</DELETED>
        <DELETED>    (1) by amending paragraph (1)(D) to read as 
        follows:</DELETED>
                <DELETED>    ``(D) does not, more than 20 times in a 
                single month, compound any drug product that is 
                essentially a copy of a commercially available drug 
                product.''; and</DELETED>
        <DELETED>    (2) by amending paragraph (2) to read as 
        follows:</DELETED>
        <DELETED>    ``(2) Definitions.--</DELETED>
                <DELETED>    ``(A) For purposes of paragraph (1)(D), 
                the term `essentially a copy of a commercially 
                available drug product' means any drug product--
                </DELETED>
                        <DELETED>    ``(i) that contains any active 
                        ingredient found in a commercially available 
                        drug product; and</DELETED>
                        <DELETED>    ``(ii) in which there is no 
                        change, made for an identified individual 
                        patient, which produces for that patient a 
                        significant difference, as determined by the 
                        prescribing practitioner, between the 
                        compounded drug product and the comparable 
                        commercially available drug product.</DELETED>
                <DELETED>    ``(B) For purposes of subparagraph (A), 
                the term `commercially available drug product' includes 
                any drug product that--</DELETED>
                        <DELETED>    ``(i) is sold in the commercial 
                        marketplace in the United States and 
                        manufactured in one or more facilities required 
                        to comply with section 501(a)(2)(B); 
                        and</DELETED>
                        <DELETED>    ``(ii) is not included in the 
                        discontinued section of the list of products 
                        described in section 505(j)(7)(A).''.</DELETED>

<DELETED>SEC. 3. REPORTING REQUIREMENT.</DELETED>

<DELETED>    Section 503A of the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 353a) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (d) and (e) as 
        subsections (e) and (f), respectively; and</DELETED>
        <DELETED>    (2) by inserting after subsection (c) the 
        following:</DELETED>
<DELETED>    ``(d) Reporting Requirement.--</DELETED>
        <DELETED>    ``(1) In general.--For calendar year 2025 and each 
        calendar year thereafter, if a pharmacy, facility, or physician 
        compounds, more than 20 times in a single month for patients 
        who reside outside the State in which the compounding occurs, 
        any drug product that contains any active ingredient found in a 
        commercially available drug product (as defined in subsection 
        (b)(2)(B)), such pharmacy, facility, or physician shall submit 
        a report to the Secretary.</DELETED>
        <DELETED>    ``(2) Contents.--Each report under paragraph (1) 
        shall identify--</DELETED>
                <DELETED>    ``(A) each type of drug product described 
                in paragraph (1) that is compounded for a patient 
                described in such paragraph; and</DELETED>
                <DELETED>    ``(B) for each month, the total number of 
                times each such type is so compounded.</DELETED>
        <DELETED>    ``(3) Timing.--For any calendar year for which 
        paragraph (1) applies, the pharmacy, facility, or physician 
        shall submit the report under such paragraph not later than the 
        end of such calendar year.</DELETED>
        <DELETED>    ``(4) Form and manner.--A pharmacy, facility, or 
        physician shall submit each report under paragraph (1) in such 
        form and manner as the Secretary may prescribe.</DELETED>
        <DELETED>    ``(5) Hospital pharmacy exclusion.--This 
        subsection does not apply to the compounding of any drug 
        products for hospital patients by a pharmacy located on the 
        premises of the hospital.''.</DELETED>

<DELETED>SEC. 4. LARGE-SCALE OUTSOURCING FACILITIES.</DELETED>

<DELETED>    (a) Inspections.--Section 503B(b) of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 353b(b)) is amended by adding at the 
end the following:</DELETED>
        <DELETED>    ``(6) Inspections of large-scale outsourcing 
        facilities.--</DELETED>
                <DELETED>    ``(A) In general.--In the case of a large-
                scale outsourcing facility, the risk-based inspections 
                under paragraph (4) shall include--</DELETED>
                        <DELETED>    ``(i) an inspection prior to such 
                        facility compounding any drug product for the 
                        first time; and</DELETED>
                        <DELETED>    ``(ii) the reinspection of such 
                        facility not less than biennially.</DELETED>
                <DELETED>    ``(B) Large-scale outsourcing facility 
                defined.--For purposes of this paragraph, the term 
                `large-scale outsourcing facility' means any 
                outsourcing facility that compounds, more than 100 
                times in a single calendar year, any drug 
                product.''.</DELETED>
<DELETED>    (b) Registration and Reporting Requirement.--Section 
510(g)(1) of such Act (21 U.S.C. 360(g)(1)) is amended by inserting 
before the semicolon at the end the following: ``, except that the 
exemption in this paragraph shall not apply to any outsourcing facility 
(as defined in section 503B(d)(4))''.</DELETED>
<DELETED>    (c) Delayed Applicability.--The amendments made by 
subsections (a) and (b) apply beginning 6 months after the date of 
enactment of this Act.</DELETED>

<DELETED>SEC. 5. BASE ESTABLISHMENT FEE.</DELETED>

<DELETED>    Section 744K(c)(1)(A)(i) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 379j-62(c)(1)(A)(i)) is amended by striking 
``$15,000'' and inserting ``a base amount deemed appropriate by the 
Secretary to fund activities to ensure the safety of compounded drug 
products''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safeguarding Americans from 
Fraudulent and Experimental Drugs Act of 2026'' or the ``SAFE Drugs Act 
of 2026''.

SEC. 2. REPORTING REQUIREMENT.

    Section 503A of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
353a) is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Reporting.--
            ``(1) Serious adverse events.--Each licensed pharmacist or 
        licensed physician who compounds drug products under this 
        section and sends such drug products, or causes such drug 
        products to be sent, out of the State in which the compounding 
        occurs shall submit any report received by such licensed 
        pharmacist or licensed physician of a serious adverse event 
        associated with a compounded drug product, in accordance with 
        the content and format requirements established through 
        guidance or under section 310.305 of title 21, Code of Federal 
        Regulations (or any successor regulations), to--
                    ``(A) the Secretary;
                    ``(B) the State in which the compounding occurs; 
                and
                    ``(C) each State to which such drugs are sent.
            ``(2) Interstate dispensing.--
                    ``(A) In general.--Beginning with the first 
                calendar year that begins after the date of enactment 
                of the SAFE Drugs Act of 2026, not later than January 
                15 of each calendar year, each licensed pharmacist or 
                licensed physician who compounds drug products under 
                this section and sends, or causes to be sent, out of 
                the State in which the compounding occurs, more than 5 
                percent of the total annual amount of drug products 
                compounded by such licensed pharmacist or licensed 
                physician shall annually submit a report containing the 
                information described in subparagraph (B) to the 
                Secretary and the State to which such drug products are 
                sent.
                    ``(B) Contents.--Each report under subparagraph (A) 
                shall identify--
                            ``(i) the name, address, license number, 
                        and State of license of the licensed pharmacist 
                        or licensed physician who compounded the drug 
                        product; and
                            ``(ii) the total number of units of 
                        compounded drug products, by type of product, 
                        and by month, sent or caused to be sent to each 
                        applicable State.
                    ``(C) Form and manner.--A licensed pharmacist or 
                licensed physician shall submit each report under 
                subparagraph (A) in such form and manner as the 
                Secretary may prescribe.
                    ``(D) Information sharing.--The Secretary shall use 
                an information sharing system for purposes of 
                facilitating the transmission of reports under 
                subparagraph (A) from a licensed pharmacist or licensed 
                physician to the Secretary and each applicable State in 
                a manner that reduces unnecessary administrative 
                burden.
                    ``(E) Exclusion.--This subsection shall not apply 
                to the compounding of any drug products for hospital 
                patients by a pharmacy located on the premises of the 
                hospital.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to preempt any requirement of a State or political 
        subdivision of a State that requires additional, more 
        stringent, or supplementary reporting with respect to a drug 
        product compounded under this section.''.

SEC. 3. LABELING.

    Section 503A(b)(3) of the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 353a(b)(3)) is amended--
            (1) in subparagraph (A), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (B)(ii), by striking the period and 
        inserting ``; and''; and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) the label of such drug product includes--
                            ``(i) the statement: `This medication has 
                        been compounded for dispensing to an individual 
                        patients and has not been approved by the Food 
                        and Drug Administration.';
                            ``(ii) the following information to 
                        facilitate adverse event reporting: 
                        www.fda.gov/medwatch, and 1-800-FDA-1088 (or 
                        any successor website or telephone number); and
                            ``(iii) such other information as the 
                        Secretary may prescribe by order, which may 
                        include information to facilitate adverse event 
                        reporting.''.
                                                       Calendar No. 524

119th CONGRESS

  2d Session

                                S. 3794

_______________________________________________________________________

                                 A BILL

 To amend the Federal Food, Drug, and Cosmetic Act to further regulate 
   compounding pharmacies and outsourcing facilities, and for other 
                               purposes.

_______________________________________________________________________

                             July 27, 2026

                       Reported with an amendment