California Third Party Logistics Provider $90,000 Bond

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California Third Party Logistics Provider $90,000 Bond

This bond serves as a form of security that ensures that the third-party logistics provider shall be held liable for any penalties that may arise from any violations of the regulations set forth by the California State Board of Pharmacy.

By obtaining this bond, the third-party logistics provider is demonstrating their commitment to complying with the rules and regulations set forth by the California State Board of Pharmacy, and their willingness to take responsibility for any potential violations that may occur.

This particular bond, which is deemed necessary and mandatory, is required of:

  • Licensees who bring in at least ten million dollars in gross revenue each year
  • New applications for licenses to operate as third-party logistics providers

In the event that you are the proprietor of numerous authorized third-party logistics provider sites, it is important to note that this bond will provide coverage for all of the aforementioned sites. Therefore, you can rest assured that all of your sites will be adequately protected under this bond.

It is of utmost importance that this particular surety bond, which serves as a guarantee for the fulfillment of obligations, must be made payable to the Pharmacy Board Contingent Fund, a reserve fund set up to cover unforeseen expenses or losses that may arise in the course of the board’s operations.

This requirement must be strictly adhered to in order to ensure that the bond is valid and enforceable in the event of any breach of contract or other legal issues that may arise.

In accordance with the regulations, it has been stipulated that a manufacturer who has obtained a valid license and solely deals with the distribution of drugs that have been produced in-house is not obligated to furnish a surety bond as per the requirement.

It is important to note that in order for a licensed manufacturer to be eligible for the exemption, they must have an approved new drug manufacturing application on file with the FDA. This requirement ensures that all manufacturers who are granted the exemption have met the necessary regulatory standards and have demonstrated their ability to safely and effectively produce new drugs.

Without this crucial step, the exemption would not be possible and patients could be put at risk. Therefore, it is imperative that all licensed manufacturers adhere to this requirement and maintain their FDA-approved status in order to continue providing high-quality medications to those in need.

It is imperative that the manufacturer in question provides a comprehensive list of all the drugs that have been manufactured by them, along with their corresponding National Drug Code (NDC) numbers. Furthermore, it is mandatory that the manufacturer furnishes a statement that certifies that they solely distribute their own products to the board.

Bond Premium

Surety Bond - Bond Premium

The amount of bond premium that will be charged is contingent upon the credit score of the individual who is applying for or currently holds the license. This means that the higher the credit score of the license applicant or licensee, the lower the bond premium will be.

Conversely, if the credit score is lower, the bond premium will be higher in order to mitigate the risk associated with providing the bond. Therefore, it is important for license applicants and licensees to maintain a good credit score in order to keep their bond premium as low as possible.

It is worth noting that the bond premium, which is the additional amount paid on top of the bond amount, will commence at a rate of 1% for individuals who possess an outstanding credit score. This implies that those who have demonstrated a consistent and responsible credit history will be eligible for a lower bond premium, resulting in a more cost-effective and financially prudent option. The specified monetary value for the bond in question is precisely $90,000.

Frequently Asked Questions

Why Is This Surety Bond Necessary?

In order for licenses and permits to become active, businesses are required to acquire a bond. This ensures that the firm will be reimbursed by the surety company for any losses caused as a result of the business' failure to comply with licensing and permit rules, should the business fail to comply with such laws.

What Is the Cost of a Surety Bond in the State of California?

The cost of surety bonds in the state of California normally ranges from 0.5 percent to 3 percent of the bond amount or coverage that is necessary.

What Is Bond Premium?

When the price of a bond in the secondary market rises as a result of falling market interest rates, this phenomenon is known as a bond premium. A bond that is purchased at a price that is above its face value is said to be trading at a premium to par.
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