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<dc:title>119 S3794 RS: Safeguarding Americans from Fraudulent and Experimental Drugs Act of 2026</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2026-07-27</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">II</distribution-code><calendar>Calendar No. 524</calendar><congress>119th CONGRESS</congress><session>2d Session</session><legis-num>S. 3794</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20260205">February 5, 2026</action-date><action-desc><sponsor name-id="S429">Mr. Banks</sponsor> (for himself and <cosponsor name-id="S359">Mr. Heinrich</cosponsor>) introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSHR00" added-display-style="italic" deleted-display-style="strikethrough">Committee on Health, Education, Labor, and Pensions</committee-name></action-desc></action><action stage="Reported-in-Senate"><action-date date="20260727">July 27, 2026</action-date><action-desc>Reported by <sponsor name-id="S373">Mr. Cassidy</sponsor>, with an amendment</action-desc><action-instruction>Strike out all after the enacting clause and insert the part printed in italic</action-instruction></action><legis-type>A BILL</legis-type><official-title>To amend the Federal Food, Drug, and Cosmetic Act to further regulate compounding pharmacies and outsourcing facilities, and for other purposes.</official-title></form><legis-body style="OLC" display-enacting-clause="yes-display-enacting-clause" id="H0267E24E3DC14F18AF4F14A94ED3DED0"><section commented="no" section-type="section-one" id="H2168766390B64500B0D0CA5C1822CC2D" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Safeguarding Americans from Fraudulent and Experimental Drugs Act of 2026</short-title></quote> or the <quote><short-title>SAFE Drugs Act of 2026</short-title></quote>.</text></section><section id="HF93C209B93EA410EA5F3076B91EFBF91" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><enum>2.</enum><header>Definitions relating to compounding of drug products</header><text display-inline="no-display-inline">Section 503A(b) of the Federal Food, Drug, and Cosmetic Act (<external-xref legal-doc="usc" parsable-cite="usc/21/353a">21 U.S.C. 353a(b)</external-xref>) is amended—</text><paragraph id="H34F1ABC3D17840C5AF3FC067E8289127"><enum>(1)</enum><text>by amending paragraph (1)(D) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8F42EC9017F248F7ADF41C8BF017999D" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><subparagraph id="HEF47A1A9056E465BB3244D81C682F814"><enum>(D)</enum><text>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.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HEBA3FDF1D2504FD897B89C60ECC7D6F2"><enum>(2)</enum><text>by amending paragraph (2) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HDBE00EE718C84618A3660713D4903EDB" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><paragraph id="HCBD678DBD050491486D04B9BBB6805C6"><enum>(2)</enum><header>Definitions</header><subparagraph id="HE9C80288B9784D209AA001A7B9FE4118"><enum>(A)</enum><text display-inline="yes-display-inline">For purposes of paragraph (1)(D), the term <term>essentially a copy of a commercially available drug product</term> means any drug product—</text><clause id="H32DE4E78879849BB9A43B637D2B56ACA"><enum>(i)</enum><text>that contains any active ingredient found in a commercially available drug product; and</text></clause><clause id="H25E96036391B4D88A77C9269416994D7"><enum>(ii)</enum><text>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.</text></clause></subparagraph><subparagraph id="HAFE9C530D156468CBFDDBBD2FCE2D4DC"><enum>(B)</enum><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <term>commercially available drug product</term> includes any drug product that—</text><clause id="H292C700A0C4944F4B6387A763BD0C202"><enum>(i)</enum><text>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</text></clause><clause id="H71D5F21567624B0A87F537BFA3B1F5EF"><enum>(ii)</enum><text>is not included in the discontinued section of the list of products described in section 505(j)(7)(A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="HE3F1BA41274C485F99C5E4DCE73940A5" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><enum>3.</enum><header>Reporting requirement</header><text display-inline="no-display-inline">Section 503A of the Federal Food, Drug, and Cosmetic Act (<external-xref legal-doc="usc" parsable-cite="usc/21/353a">21 U.S.C. 353a</external-xref>) is amended—</text><paragraph id="H2BD8E11C9E93471BB21D357218854C86"><enum>(1)</enum><text>by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and</text></paragraph><paragraph id="H311ACC01227647669D88DB82A51D7540"><enum>(2)</enum><text>by inserting after subsection (c) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H52AD7321373140FFA42A7894CBC994CA" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><subsection id="H6F0A9C459F534CB8820BEEAB225C7AFB"><enum>(d)</enum><header>Reporting requirement</header><paragraph commented="no" id="H3DE428822E614BA9A96F23057D2B90B7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph><paragraph id="HB327419C29D64A36927D978A54C1A125"><enum>(2)</enum><header>Contents</header><text>Each report under paragraph (1) shall identify—</text><subparagraph commented="no" id="H504F22717348412CA0F148D4095DB0E9"><enum>(A)</enum><text display-inline="yes-display-inline">each type of drug product described in paragraph (1) that is compounded for a patient described in such paragraph; and</text></subparagraph><subparagraph commented="no" id="HBBC248D4D7E3428088C75A5A165D56D6"><enum>(B)</enum><text>for each month, the total number of times each such type is so compounded.</text></subparagraph></paragraph><paragraph id="H00CEC6C0FB7846AEA6064B0D98E5B9A3"><enum>(3)</enum><header>Timing</header><text display-inline="yes-display-inline">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.</text></paragraph><paragraph id="H9448A20E43D14735B908EB154A724D14"><enum>(4)</enum><header>Form and manner</header><text>A pharmacy, facility, or physician shall submit each report under paragraph (1) in such form and manner as the Secretary may prescribe.</text></paragraph><paragraph id="H1F817A7D3B8248139F22990081EE6F79"><enum>(5)</enum><header>Hospital pharmacy exclusion</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section commented="no" id="H916E623DDCF74D8DA2C3A71DBECE6231" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><enum>4.</enum><header>Large-scale outsourcing facilities</header><subsection commented="no" id="HF450A8B8A6A9478C89117748B7B59ABB"><enum>(a)</enum><header>Inspections</header><text>Section 503B(b) of the Federal Food, Drug, and Cosmetic Act (<external-xref legal-doc="usc" parsable-cite="usc/21/353b">21 U.S.C. 353b(b)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HBD132179021B444187F5EFE8E9EC3EA6" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><paragraph commented="no" id="H35C8716F83924C07A964AD45BBF00AE0"><enum>(6)</enum><header>Inspections of large-scale outsourcing facilities</header><subparagraph commented="no" id="H55D747D5C2DA4B87A29A48E6907487B4"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a large-scale outsourcing facility, the risk-based inspections under paragraph (4) shall include—</text><clause commented="no" id="HDD1FD1CA9F3B443AB9857EE7F71F78BF"><enum>(i)</enum><text>an inspection prior to such facility compounding any drug product for the first time; and</text></clause><clause commented="no" id="HAA2006B9E7E74402B28096D077A5E655"><enum>(ii)</enum><text>the reinspection of such facility not less than biennially.</text></clause></subparagraph><subparagraph commented="no" id="HB17B735A18A54CB1BDBCE5ADBE6FAC65"><enum>(B)</enum><header>Large-scale outsourcing facility defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>large-scale outsourcing facility</term> means any outsourcing facility that compounds, more than 100 times in a single calendar year, any drug product.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HC95BC53D476948249DFFAD5DB3E29152"><enum>(b)</enum><header>Registration and reporting requirement</header><text display-inline="yes-display-inline">Section 510(g)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/21/360">21 U.S.C. 360(g)(1)</external-xref>) is amended by inserting before the semicolon at the end the following: <quote>, except that the exemption in this paragraph shall not apply to any outsourcing facility (as defined in section 503B(d)(4))</quote>.</text></subsection><subsection commented="no" id="H6FF8E5C633CC44BD812F3F9BF381F067"><enum>(c)</enum><header>Delayed applicability</header><text>The amendments made by subsections (a) and (b) apply beginning 6 months after the date of enactment of this Act.</text></subsection></section><section id="HD7D64847EC474B5390269529D353C046" changed="deleted" reported-display-style="strikethrough" committee-id="SSHR00"><enum>5.</enum><header>Base establishment fee</header><text display-inline="no-display-inline">Section 744K(c)(1)(A)(i) of the Federal Food, Drug, and Cosmetic Act (<external-xref legal-doc="usc" parsable-cite="usc/21/379j-62">21 U.S.C. 379j–62(c)(1)(A)(i)</external-xref>) is amended by striking <quote>$15,000</quote> and inserting <quote>a base amount deemed appropriate by the Secretary to fund activities to ensure the safety of compounded drug products</quote>.</text></section></legis-body><legis-body style="OLC" display-enacting-clause="no-display-enacting-clause"><section commented="no" section-type="section-one" id="id0cca879d-1e6c-4c30-8dc8-11d65aefc99e" changed="added" reported-display-style="italic" committee-id="SSHR00"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Safeguarding Americans from Fraudulent and Experimental Drugs Act of 2026</short-title></quote> or the <quote><short-title>SAFE Drugs Act of 2026</short-title></quote>.</text></section><section id="id2173e8d0-e922-4a08-89bb-b28f92d1c87d" changed="added" reported-display-style="italic" committee-id="SSHR00"><enum>2.</enum><header>Reporting requirement</header><text display-inline="no-display-inline">Section 503A of the Federal Food, Drug, and Cosmetic Act (<external-xref legal-doc="usc" parsable-cite="usc/21/353a">21 U.S.C. 353a</external-xref>) is amended—</text><paragraph id="id25201ef5a33d4042ba02268d3dbdcf13"><enum>(1)</enum><text>by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and</text></paragraph><paragraph id="id87606ef3-98f9-4b09-a183-a41dcc40898c"><enum>(2)</enum><text>by inserting after subsection (c) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8dba30d8-cda4-483f-9e93-7b42a07de682" changed="added" reported-display-style="italic" committee-id="SSHR00"><subsection id="id02fe8c63-34de-44db-8a00-c2372233c794"><enum>(d)</enum><header>Reporting</header><paragraph id="idc56c754807694033b5ffd8cb16a979b6"><enum>(1)</enum><header>Serious adverse events</header><text>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—</text><subparagraph commented="no" display-inline="no-display-inline" id="id92a330a6025d4ffb9c23553b361c9636"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3b5ea039d4db44bbbb3ad91d8b1d2ab9"><enum>(B)</enum><text display-inline="yes-display-inline">the State in which the compounding occurs; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ide5eaee9594594a028a6986ceabe2cacf"><enum>(C)</enum><text display-inline="yes-display-inline">each State to which such drugs are sent.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id16150bf78fc14643b027db77c03cc64a"><enum>(2)</enum><header display-inline="yes-display-inline">Interstate dispensing</header><subparagraph commented="no" display-inline="no-display-inline" id="idf104d3ac5afa4fbf8619c9670f433c3e"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Beginning with the first calendar year that begins after the date of enactment of the <short-title>SAFE Drugs Act of 2026</short-title>, 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.</text></subparagraph><subparagraph id="id5b526bfd4bb04c439403ee6f66e01599"><enum>(B)</enum><header>Contents</header><text>Each report under subparagraph (A) shall identify—</text><clause id="idda1d86a2f20d47ec80b54e749d94554f"><enum>(i)</enum><text>the name, address, license number, and State of license of the licensed pharmacist or licensed physician who compounded the drug product; and</text></clause><clause id="id865dd103821f4e3b940ee70804864607"><enum>(ii)</enum><text>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.</text></clause></subparagraph><subparagraph id="ide3cf9cf17b3c49ed9af4a81b10c8b145"><enum>(C)</enum><header>Form and manner</header><text>A licensed pharmacist or licensed physician shall submit each report under subparagraph (A) in such form and manner as the Secretary may prescribe.</text></subparagraph><subparagraph id="id3612e2817c32425db7f6fd046431dc2f"><enum>(D)</enum><header>Information sharing</header><text>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.</text></subparagraph><subparagraph id="id64e34b9847a649098488cdd19b3ddbff"><enum>(E)</enum><header>Exclusion</header><text>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.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id046dc2cd243246d5b4972560b741ba63"><enum>(3)</enum><header>Rule of construction</header><text>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.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="id21ac34524d1a4bd8ada0869de3905474" changed="added" reported-display-style="italic" committee-id="SSHR00"><enum>3.</enum><header>Labeling</header><text display-inline="no-display-inline">Section 503A(b)(3) of the Federal Food, Drug, and Cosmetic Act (<external-xref legal-doc="usc" parsable-cite="usc/21/353a">21 U.S.C. 353a(b)(3)</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id282ee49e0793418a9e5450f8272f8637"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>; and</quote> and inserting a semicolon;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idcd65ef8fe6114ab0b8a90332a727cf9e"><enum>(2)</enum><text>in subparagraph (B)(ii), by striking the period and inserting <quote>; and</quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4c90e6737f644dbdb09306a9ae770493"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (B) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id38514d519c3449eeaf2d47ef1a9638ab" changed="added" reported-display-style="italic" committee-id="SSHR00"><subparagraph id="id035461ad1820466d933803666fd87bcc"><enum>(C)</enum><text>the label of such drug product includes—</text><clause commented="no" display-inline="no-display-inline" id="id325e06ad17a64cb1bc80a891414ceb16"><enum>(i)</enum><text>the statement: <quote>This medication has been compounded for dispensing to an individual patients and has not been approved by the Food and Drug Administration.</quote>;</text></clause><clause commented="no" display-inline="no-display-inline" id="ide7d83130f25f451ba4788ae85cf1896f"><enum>(ii)</enum><text>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 </text></clause><clause commented="no" display-inline="no-display-inline" id="id8140c9d2a39245b6893f0829d8ab8cc9"><enum>(iii)</enum><text display-inline="yes-display-inline">such other information as the Secretary may prescribe by order, which may include information to facilitate adverse event reporting.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></legis-body><endorsement><action-date>July 27, 2026</action-date><action-desc>Reported with an amendment</action-desc></endorsement></bill> 

