<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 36-11A-2 - Distribution defined. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2060044Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2060044SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2060044CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2060044Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2060044DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2060044Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2060044000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2060044SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2060044SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2060044Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=36-11A-2"><span class="s2060044SENU">36-11A-2</span></a><span xml:space="preserve" class="s2060044SENU">. </span><span class="s2060044CL">Distribution defined.</span></p><p dir="ltr" class="s2060044Normal-000000"><span class="s2060044DefaultParagraphFont">As used in this chapter, the term, distribution, means the sale, purchase, trade, delivery, handling, storage, or receipt of a product. The term does not include:</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(1)    Intracompany sales between any division, subsidiary, parent or otherwise affiliated or related company under the common ownership and control of a corporate entity;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(2)    The purchase or other acquisition by a hospital or other health care entity that is a member of a group purchasing organization of a drug for its own use from the group purchasing organization or from other hospitals or health care entities that are members of such organizations;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(3)    The sale, purchase or trade of a drug or an offer to sell, purchase or trade a drug by a charitable organization described in § 501(c)(3) of the Internal Revenue Code of 1954, as amended through December 18, 2015, to a nonprofit affiliate of the organization to the extent otherwise permitted by law;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(4)    The sale, purchase or trade of a drug or an offer to sell, purchase or trade a drug among hospitals or other health care entities that are under common control;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(5)    The sale, purchase or trade of a drug, or an offer to sell, purchase or trade a drug, for emergency medical reasons;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(6)    The sale, purchase or trade of a drug, an offer to sell, purchase or trade a drug, or the dispensing of a drug pursuant to a prescription;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(7)    The transfer of drugs by a pharmacy to another pharmacy to alleviate a temporary shortage;</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(8)    The distribution of drug samples by manufacturers' representatives or distributors' representatives;</span></p><p dir="ltr" class="s2060044Normal-000001"><span xml:space="preserve" class="s2060044DefaultParagraphFont">(9)    The sale, purchase, or trade of blood and blood components intended for transfusion; </span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(10)    The sale, purchase, or trade of a drug to an individual under any form of insurance or an employee medical benefit program pursuant to a prescription; or</span></p><p dir="ltr" class="s2060044Normal-000001"><span class="s2060044DefaultParagraphFont">(11)    The logistics and warehouse services provided by a third-party logistics provider.</span></p><p dir="ltr" class="s2060044Normal"><span xml:space="preserve" class="s2060044000002"> </span></p><p dir="ltr" class="s2060044Normal"><span class="s2060044SCL">Source:</span><span xml:space="preserve" class="s2060044SCL-000003"> SL 1991, ch 307, § 2; SL 2017, ch 174, § 7.</span></p></div></body></html>