2005 Texas Occupations Code CHAPTER 560. LICENSING OF PHARMACIES

OCCUPATIONS CODE

CHAPTER 560. LICENSING OF PHARMACIES

SUBCHAPTER A. LICENSE REQUIRED


	§ 560.001. LICENSE REQUIRED.  (a) A person may not 
operate a pharmacy in this state unless the pharmacy is licensed by 
the board.
	(b)  A pharmacy located in another state may not ship, mail, 
or deliver to this state a prescription drug or device dispensed 
under a prescription drug order to a resident of this state unless 
the pharmacy is licensed by the board or is exempt under Section 
560.004.
	(c)  A pharmacy located in Canada may not ship, mail, or 
deliver to this state a prescription drug dispensed under a 
prescription drug order to a resident of this state unless the 
pharmacy is designated by the board under Section 554.016.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.  Amended 
by Acts 2005, 79th Leg., ch. 1345, § 39, eff. Sept. 1, 2005.


	§ 560.002. USE OF "PHARMACY";  PROVIDING PHARMACY 
SERVICES WITHOUT LICENSE.  (a) A person may not display in or on a 
place of business the word "pharmacy" or "apothecary" in any 
language, any word or combination of words of the same or similar 
meaning, or a graphic representation that would lead or tend to lead 
the public to believe that the business is a pharmacy unless the 
facility is a pharmacy licensed under this chapter.
	(b)  A person may not advertise a place of business as a 
pharmacy or provide pharmacy services unless the facility is a 
pharmacy licensed under this chapter.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.  Amended 
by Acts 2001, 77th Leg., ch. 1254, § 4, eff. Sept. 1, 2001.


	§ 560.003. PROHIBITED ADVERTISING OF PHARMACY.  (a) A 
pharmacy that is not licensed under this chapter may not advertise 
the pharmacy's services in this state.
	(b)  A person who is a resident of this state may not 
advertise the pharmacy services of a pharmacy that is not licensed 
by the board if the pharmacy or person makes the advertisement with 
the knowledge that the advertisement will or is likely to induce a 
resident of this state to use the pharmacy to dispense a 
prescription drug order.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.                    


	§ 560.004. EXEMPTION.  The board may grant an exemption 
from the licensing requirements of this chapter on the application 
of a pharmacy located in another state that restricts to isolated 
transactions the pharmacy's dispensing of a prescription drug or 
device to a resident of this state.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.                    

SUBCHAPTER B. PHARMACY CLASSIFICATION


	§ 560.051. LICENSE CLASSIFICATIONS.  (a) Each applicant 
for a pharmacy license shall apply for a license in one or more of 
the following classifications:
		(1)  Class A;                                                                 
		(2)  Class B;                                                                 
		(3)  Class C;                                                                 
		(4)  Class D;                                                                 
		(5)  Class E;  or                                                             
		(6)  another classification established by the board 
under Section 560.053. 
	(b)  A Class A pharmacy license or community pharmacy license 
authorizes a pharmacy to dispense a drug or device to the public 
under a prescription drug order.
	(c)  A Class B pharmacy license or nuclear pharmacy license 
authorizes a pharmacy to dispense a radioactive drug or device for 
administration to an ultimate user.
	(d)  A Class C pharmacy license or institutional pharmacy 
license may be issued to a pharmacy located in:
		(1)  an inpatient facility, including a hospital, 
licensed under Chapter 241 or 577, Health and Safety Code;
		(2)  a hospital maintained or operated by the state;                          
		(3)  a hospice inpatient facility licensed under 
Chapter 142, Health and Safety Code;  or
		(4)  an ambulatory surgical center licensed under 
Chapter 243, Health and Safety Code.
	(e)  A Class D pharmacy license or clinic pharmacy license 
authorizes a pharmacy to dispense a limited type of drug or device 
under a prescription drug order.
	(f)  A Class E pharmacy license or nonresident pharmacy 
license may be issued to a pharmacy located in another state whose 
primary business is to:
			(A)  dispense a prescription drug or device under 
a prescription drug order;  and
			(B)  deliver the drug or device to a patient, 
including a patient in this state, by United States mail, common 
carrier, or delivery service.
	(g)  The board may determine the classification under which a 
pharmacy may be licensed.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.  Amended 
by Acts 2001, 77th Leg., ch. 1420, § 14.305(a), eff. Sept. 1, 
2001;  Acts 2003, 78th Leg., ch. 941, § 1, eff. Sept. 1, 2003.


	§ 560.052. QUALIFICATIONS.  (a) The board by rule shall 
establish the standards that each pharmacy and the pharmacy's 
employees involved in the practice of pharmacy must meet to qualify 
for licensing as a pharmacy in each classification.
	(b)  To qualify for a pharmacy license, an applicant must 
submit to the board:
		(1)  a license fee set by the board, except as provided 
by Subsection (d);  and
		(2)  a completed application that:                                            
			(A)  is on a form prescribed by the board;                                   
			(B)  is given under oath;  and                                               
			(C)  includes a statement of:                                                
				(i)  the ownership;                                                         
				(ii)  the location of the pharmacy;                                         
				(iii)  the license number of each pharmacist 
who is employed by the pharmacy, if the pharmacy is located in this 
state, or who is licensed to practice pharmacy in this state, if the 
pharmacy is a Class E pharmacy;
				(iv)  the license number of the 
pharmacist-in-charge;  and                
				(v)  any other information the board 
determines necessary.                
	(c)  To qualify for a Class E pharmacy license, an applicant, 
in addition to satisfying the other requirements of this chapter, 
must provide to the board:
		(1)  evidence that the applicant holds a pharmacy 
license, registration, or permit in good standing issued by the 
state in which the pharmacy is located;
		(2)  the name of the owner and pharmacist-in-charge of 
the pharmacy for service of process;
		(3)  evidence of the applicant's ability to provide to 
the board a record of a prescription drug order dispensed by the 
applicant to a resident of this state not later than 72 hours after 
the time the board requests the record;
		(4)  an affidavit by the pharmacist-in-charge that 
states that the pharmacist has read and understands the laws and 
rules relating to a Class E pharmacy;
		(5)  proof of creditworthiness;  and                                          
		(6)  an inspection report issued:                                             
			(A)  not more than two years before the date the 
license application is received;  and
			(B)  by the pharmacy licensing board in the state 
of the pharmacy's physical location, except as provided by 
Subsection (f).
	(d)  A pharmacy operated by the state or a local government 
that qualifies for a Class D pharmacy license is not required to pay 
a fee to obtain a license.
	(e)  With respect to a Class C pharmacy license, the board 
may issue a license to a pharmacy on certification by the 
appropriate agency that the facility in which the pharmacy is 
located has substantially completed the requirements for 
licensing.
	(f)  A Class E pharmacy may submit an inspection report 
issued by an entity other than the pharmacy licensing board of the 
state in which the pharmacy is physically located if:
		(1)  the state's licensing board does not conduct 
inspections;              
		(2)  the inspection is substantively equivalent to an 
inspection conducted by the board, as determined by board rule;  and
		(3)  the inspecting entity meets specifications 
adopted by the board for inspecting entities.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.  Amended 
by Acts 2001, 77th Leg., ch. 1420, § 14.306(a), eff. Sept. 1, 
2001;  Acts 2005, 79th Leg., ch. 1345, § 18, eff. Sept. 1, 2005.


	§ 560.0525. ADDITIONAL QUALIFICATION REQUIREMENTS FOR 
CANADIAN PHARMACIES.  (a) To pass an inspection by the board, a 
Canadian pharmacy must meet Texas licensing standards.
	(b)  In addition to satisfying the other requirements of this 
chapter, to qualify for designation by the board under Section 
554.016, a Canadian pharmacy applicant must submit to the board:
		(1)  evidence satisfactory to the board that the 
applicant holds a pharmacy license, registration, or permit in good 
standing issued by Canada or the Canadian province in which the 
pharmacy is located and is not subject to any pending disciplinary 
action or legal action by any regulatory authority;
		(2)  the name and address of the pharmacy's owner and 
pharmacist-in-charge for service of process;
		(3)  evidence of the applicant's ability to provide to 
the board, not later than 72 hours after the time the board requests 
the record, a record of a prescription drug order authorizing the 
pharmacy to dispense a prescription drug to a resident of this 
state;
		(4)  an affidavit by the pharmacist-in-charge that 
states the pharmacist has read and understands this subtitle and 
the rules adopted under this subtitle that relate to a Canadian 
pharmacy designated by the board as having passed inspection to 
dispense prescription drugs to residents in this state;
		(5)  evidence satisfactory to the board that the 
applicant meets the standards established by board rule to ensure 
customer safety for each order filled and in the dispensing, 
storing, packaging, shipping, and delivering of prescription 
drugs;  and
		(6)  evidence satisfactory to the board that the 
applicant's employees hold the appropriate Canadian licenses 
required to dispense prescription drugs in Canada.
	(c)  Before a Canadian pharmacy is designated as having 
passed inspection to dispense prescription drugs to residents in 
this state, a representative of the board shall visit the 
pharmacy's facilities and review the pharmacy's compliance with the 
requirements and safety standards established under this subtitle.

Added by Acts 2005, 79th Leg., ch. 1345, § 40, eff. Sept. 1, 
2005.       


	§ 560.053. ESTABLISHMENT OF ADDITIONAL PHARMACY 
CLASSIFICATIONS.  The board by rule may establish classifications 
of pharmacy licenses in addition to the classifications under 
Section 560.051 if the board determines that:
		(1)  the practice setting will provide pharmaceutical 
care services to the public;
		(2)  the existing classifications of pharmacy licenses 
are not appropriate for that practice setting;  and
		(3)  establishment of a new classification of pharmacy 
license is necessary to protect the public health, safety, and 
welfare.

Added by Acts 2003, 78th Leg., ch. 941, § 2, eff. Sept. 1, 2003.           

SUBCHAPTER C. RESTRICTIONS ON LICENSE


	§ 560.101. LICENSE NOT TRANSFERABLE.  A pharmacy license 
issued under this chapter is not transferable or assignable.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.                    


	§ 560.102. SEPARATE LICENSE FOR EACH LOCATION.  (a) A 
separate pharmacy license is required for each principal place of 
business of a pharmacy.
	(b)  Only one pharmacy license may be issued for a specific 
location.        

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.                    

SUBCHAPTER D. CERTAIN PROHIBITED PRACTICES


	§ 560.103. FALSE AFFIDAVIT.  A person who falsely makes 
the affidavit prescribed by Section 560.052 is guilty of fraudulent 
and dishonorable conduct and malpractice.

Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999.