pharmacy board; renewals; ownership change

HB2733 - 572R - H Ver

House Engrossed

pharmacy board;
renewals; ownership change

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2733

AN
ACT

Amending sections 32-1901.01 and 32-1925,
Arizona Revised Statutes; amending title 32, chapter 18, article 2, Arizona
Revised Statutes, by adding section 32-1930.01; amending section 32-1965,
Arizona Revised Statutes; relating to the Arizona state board of pharmacy.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 32-1901.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-1901.01.

Definitions of unethical conduct and unprofessional conduct;
permittees; licensees

A. In this chapter, unless the context otherwise
requires, for the purposes of disciplining a permittee, "unethical
conduct" means the following, whether occurring in this state or
elsewhere:

1. Committing a felony, whether or not involving
moral turpitude, or a misdemeanor involving moral turpitude or any drug-related
offense.� In either case, conviction by a court of competent jurisdiction or a
plea of no contest is conclusive evidence of the commission.

2. Committing an act that is substantially related
to the qualifications, functions or duties of a permittee and that demonstrates
an actual or potential unfitness to hold a permit in light of the public's
safety.

3. Working under the influence of alcohol or other
drugs.

4. Using alcohol or other drugs to such a degree as
to render the permittee unfit to perform the permittee's employment duties.

5. Violating a federal or state law or
administrative rule relating to the manufacture, sale or distribution of drugs,
devices, poisons, hazardous substances or precursor chemicals.

6. Violating a federal or state law or
administrative rule relating to marijuana, prescription-only drugs,
narcotics, dangerous drugs, controlled substances or precursor chemicals.

7. Violating state or federal reporting or
recordkeeping requirements on transactions relating to precursor chemicals.

8. Intending to sell, transfer or distribute, or to
offer for sale, transfer or distribution, or selling, transferring,
distributing or dispensing or offering for sale, transfer or distribution an
imitation controlled substance, imitation over-the-counter drug or
imitation prescription-only drug as defined in section 13-3451.

9. Having the permittee's permit to manufacture,
sell, distribute or dispense drugs, devices, poisons, hazardous substances or
precursor chemicals denied or disciplined in another jurisdiction.

10. Committing an offense in another jurisdiction
that if committed in this state would be grounds for discipline.

11. Obtaining or attempting to obtain a permit or a
permit renewal by fraud, by misrepresentation or by knowingly taking advantage
of the mistake of another person or an agency.

12. Wilfully making a false report or record that is
required by this chapter, that is required by federal or state laws pertaining
to drugs, devices, poisons, hazardous substances or precursor chemicals or that
is required to pay for drugs, devices, poisons or hazardous substances or
precursor chemicals or for services pertaining to such drugs or substances.

13. Knowingly filing with the board any application,
renewal or other document that contains false or misleading information.

14. Providing false or misleading information or
omitting material information in any communication to the board or the board's
employees or agents.

15. Violating or attempting to violate, directly or
indirectly, or assisting in or abetting the violation of, or conspiring to
violate this chapter.

16. Violating a formal order, terms of probation, a
consent agreement or a stipulation issued or entered into by the board or its
executive director pursuant to this chapter.

17. Failing to comply with a board subpoena or
failing to comply in a timely manner with a board subpoena without providing
any explanation to the board for not complying with the subpoena.

18. Failing to provide the board or its employees or
agents or an authorized federal or state official conducting a site
investigation, inspection or audit with access to any place for which a permit
has been issued or for which an application for a permit has been submitted.

19. Failing to notify the board of a change of
ownership, management or pharmacist in charge.

20. Failing to promptly produce on the request of
the official conducting a site investigation, inspection or audit any book,
record or document.

21. Overruling or attempting to overrule a
pharmacist in matters of pharmacy ethics or interpreting laws pertaining to the
practice of pharmacy or the distribution of drugs or devices.

22. Distributing premiums or rebates of any kind in
connection with the sale of prescription medication, other than to the
prescription medication recipient.

23. Failing to maintain effective controls against
the diversion of controlled substances or precursor chemicals to unauthorized
persons or entities.

24. Fraudulently claiming to have performed a
service.

25. Fraudulently charging a fee for a service.

26. Advertising drugs or devices, or services
pertaining to drugs or devices, in a manner that is untrue or misleading in any
particular, and that is known, or that by the exercise of reasonable care
should be known, to be untrue or misleading.

B. In this chapter, unless the context otherwise
requires, for the purposes of disciplining a pharmacist or pharmacy intern,
"unprofessional conduct" means the following, whether occurring in
this state or elsewhere:

1. Using alcohol or other drugs to such a degree as
to render the licensee unfit to practice the profession of pharmacy.

2. Violating any federal or state law, rule or
regulation relating to the manufacture or distribution of drugs and devices or
the practice of pharmacy.

3. Dispensing a different drug or brand of drug in
place of the drug or brand of drug ordered or prescribed without the express
permission in each case of the orderer, or in the case of a prescription order,
the medical practitioner. The conduct prohibited by this paragraph
does not apply to substitutions authorized pursuant to section 32-1963.01.

4. Obtaining or attempting to obtain a license to
practice pharmacy or a license renewal by fraud, by misrepresentation or by
knowingly taking advantage of the mistake of another person or an agency.

5. Having the licensee's license to practice
pharmacy denied or disciplined in another jurisdiction.

6. Claiming professional superiority in compounding
or dispensing prescription orders.

7. Failing to comply with the mandatory continuing
professional pharmacy education requirements of sections 32-1936 and 32-1937
and rules adopted by the board.

8. Committing a felony, whether or not involving
moral turpitude, or a misdemeanor involving moral turpitude or any drug-related
offense.� In either case, conviction by a court of competent jurisdiction or a
plea of no contest is conclusive evidence of the commission.

9. Working under the influence of alcohol or other
drugs.

10. Violating a federal or state law or
administrative rule relating to marijuana, prescription-only drugs,
narcotics, dangerous drugs, controlled substances or precursor chemicals when
determined by the board or by conviction in a federal or state court.

11. Knowingly dispensing a drug without a valid
prescription order as required pursuant to section 32-1968, subsection A.

12. Knowingly dispensing a drug on a prescription
order that was issued in the course of the conduct of business of dispensing
drugs pursuant to diagnosis by mail or the internet, unless the order was any
of the following:

(a) Made by a physician who provides temporary
patient supervision on behalf of the patient's regular treating licensed health
care professional or provides a consultation requested by the patient's regular
treating licensed health care professional.

(b) Made in an emergency medical situation as
defined in section 41-1831.

(c) Written to prepare a patient for a medical
examination.

(d) Written or the prescription medications were
issued for use by a county or tribal public health department for immunization
programs or emergency treatment or in response to an infectious disease
investigation, a public health emergency, an infectious disease outbreak or an
act of bioterrorism. For the purposes of this subdivision,
"bioterrorism" has the same meaning prescribed in section 36-781.

(e) Written or antimicrobials were dispensed by the
prescribing or dispensing physician to a contact as defined in section 36-661
who is believed to have had significant exposure risk as defined in section 36-661
with another person who has been diagnosed with a communicable disease as
defined in section 36-661.

(f) Written or the prescription medications were
issued for administering immunizations or vaccines listed in the United States
centers for disease control and prevention's recommended immunization schedule
to a household member of a patient.

(g) For epinephrine delivery systems that are
written or dispensed for a school district or charter school and that are to be
stocked for emergency use pursuant to section 15-157 or for an authorized
entity to be stocked pursuant to section 36-2226.01.

(h) For glucagon that is written or dispensed for a
school district or charter school and that is to be stocked for emergency use
pursuant to section 15-344.01.

(i) Written
by a licensee through a telehealth program that is covered by the policies and
procedures adopted by the administrator of a hospital or outpatient treatment
center.

(j) Written
pursuant to a physical or mental health status examination that was conducted
through telehealth as defined in section 36-3601 and consistent with
federal law.

(k) For naloxone hydrochloride or any other opioid
antagonist approved by the United States food and drug administration and
written or dispensed for use pursuant to section 36-2228 or 36-2266.

13. Failing to report in writing to the board any
evidence that a pharmacist or pharmacy intern is or may be professionally
incompetent, is or may be guilty of unprofessional conduct or is or may be
mentally or physically unable to safely engage in the practice of pharmacy.

14. Failing to report in writing to the board any
evidence that a pharmacy technician or pharmacy technician trainee is or may be
professionally incompetent, is or may be guilty of unprofessional conduct or is
or may be mentally or physically unable to safely engage in the permissible
activities of a pharmacy technician or pharmacy technician trainee.

15. Failing to report in writing to the board any
evidence that a permittee or a permittee's employee is or may be guilty of
unethical conduct or is or may be violating this chapter or a rule adopted
under this chapter.

16. Committing an offense in another jurisdiction
that if committed in this state would be grounds for discipline.

17. Knowingly filing with the board any application,
renewal or other document that contains false or misleading information.

18. Providing false or misleading information or
omitting material information in any communication to the board or the board's
employees or agents.

19. Violating or attempting to violate, directly or
indirectly, or assisting in or abetting in the violation of, or conspiring to
violate this chapter.

20. Violating a formal order, terms of probation, a
consent agreement or a stipulation issued or entered into by the board or its
executive director pursuant to this chapter.

21. Failing to comply with a board subpoena or
failing to comply in a timely manner with a board subpoena without providing
any explanation to the board for not complying with the subpoena.

22. Refusing without just cause to allow authorized
agents of the board to examine documents that are required to be kept pursuant
to this chapter or title 36.

23. Participating in an arrangement or agreement to
allow a prescription order or a prescription medication to be left at, picked
up from, accepted by or delivered to a place that is not licensed as a
pharmacy. This paragraph does not prohibit a pharmacist or a
pharmacy from using an employee or a common carrier to pick up prescription
orders at or deliver
, unless prohibited by federal law,

prescription medications to
the office or home of
a
medical
practitioner

practitioner's home or
office
, the
patient's
residence
,

of a patient or a patient's

a
hospital
, long-term care facility or workplace or another designated
physical address provided by the patient where the patient or the patient's
designated agent is available to receive a delivery
.

24. Paying rebates or entering into an agreement for
paying rebates to a medical practitioner or any other person in the health care
field.

25. Providing or causing to be provided to a medical
practitioner prescription order blanks or forms bearing the pharmacist's or
pharmacy's name, address or other means of identification.

26. Fraudulently claiming to have performed a
professional service.

27. Fraudulently charging a fee for a professional
service.

28. Failing to report a change of the licensee's
home address, contact information, employer or employer's address as required
by section 32-1926.

29. Failing to report a change in the licensee's
residency status as required by section 32-1926.01.

30. Failing to maintain effective controls against
the diversion of controlled substances or precursor chemicals to unauthorized
persons or entities.

C. In this chapter, unless the context otherwise
requires, for the purposes of disciplining a pharmacy technician or pharmacy
technician trainee, "unprofessional conduct" means the following,
whether occurring in this state or elsewhere:

1. Using alcohol or other drugs to such a degree as
to render the licensee or registrant unfit to perform the licensee's or
registrant's employment duties.

2. Violating a federal or state law or
administrative rule relating to the manufacture or distribution of drugs or
devices.

3. Obtaining or attempting to obtain a pharmacy
technician license or license renewal or pharmacy technician trainee
registration by fraud, by misrepresentation or by knowingly taking advantage of
the mistake of another person or an agency.

4. Having the licensee's license to practice as a
pharmacy technician denied or disciplined in another jurisdiction.

5. Failing to comply with the mandatory continuing
professional education requirements of section 32-1925, subsection H and
rules adopted by the board.

6. Committing a felony, whether or not involving
moral turpitude, or a misdemeanor involving moral turpitude or any drug-related
offense. In either case, conviction by a court of competent
jurisdiction or a plea of no contest is conclusive evidence of the commission.

7. Working under the influence of alcohol or other
drugs.

8. Violating a federal or state law or
administrative rule relating to marijuana, prescription-only drugs,
narcotics, dangerous drugs, controlled substances or precursor chemicals when
determined by the board or by conviction in a federal or state court.

9. Failing to report in writing to the board any
evidence that a pharmacist or pharmacy intern is or may be professionally
incompetent, is or may be guilty of unprofessional conduct or is or may be
mentally or physically unable to safely engage in the practice of pharmacy.

10. Failing to report in writing to the board any
evidence that a pharmacy technician or pharmacy technician trainee is or may be
professionally incompetent, is or may be guilty of unprofessional conduct or is
or may be mentally or physically unable to safely engage in the permissible
activities of a pharmacy technician or pharmacy technician trainee.

11. Failing to report in writing to the board any
evidence that a permittee or a permittee's employee is or may be guilty of
unethical conduct or is or may be violating this chapter or a rule adopted
under this chapter.

12. Committing an offense in another jurisdiction
that if committed in this state would be grounds for discipline.

13. Knowingly filing with the board any application,
renewal or other document that contains false or misleading information.

14. Providing false or misleading information or
omitting material information in any communication to the board or the board's
employees or agents.

15. Violating or attempting to violate, directly or
indirectly, or assisting in or abetting in the violation of, or conspiring to
violate this chapter.

16. Violating a formal order, terms of probation, a
consent agreement or a stipulation issued or entered into by the board or its
executive director pursuant to this chapter.

17. Failing to comply with a board subpoena or
failing to comply in a timely manner with a board subpoena without providing
any explanation to the board for not complying with the subpoena.

18. Failing to report a change of the licensee's or
registrant's home address, contact information, employer or employer's address
as required by section 32-1926.

19. Failing to report a change in the licensee's or
registrant's residency status as required by section 32-1926.01.
END_STATUTE

Sec. 2. Section 32-1925, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-1925.

Renewal of license of pharmacists, interns and pharmacy
technicians; fees; expiration dates; penalty for failure to renew; continuing
education

A. Except for interns and pharmacy technician
trainees, the board shall assign all persons who are licensed under this
chapter to one of two license renewal groups. Except as provided in
section 32-4301, a holder of a license certificate designated in the
licensing database as even by way of verbiage or numerical value shall renew it
biennially on or before November 1 of the even-numbered year, two years after
the last renewal date. Except as provided in section 32-4301,
a holder of a license certificate designated in the licensing database as odd
by way of verbiage or numerical value shall renew it biennially on or before
November 1 of the odd-numbered year, two years after the last renewal
date.� Failure to renew and pay all required fees on or before November 1 of
the year in which the renewal is due suspends the license. The board
shall vacate a suspension when the licensee pays all past due fees and
reinstatement penalties. Reinstatement penalties shall not exceed
$350. The board may waive collection of a fee or reinstatement
penalty due after suspension under conditions established by a majority of the
board.

B. A person shall not apply for license renewal more
than sixty days before the expiration date of the license.

C. A person who is licensed as a pharmacist or a
pharmacy technician and who has not renewed the license for five consecutive
years shall furnish to the board satisfactory proof of fitness to be licensed
as a pharmacist or a pharmacy technician.� A person whose license has lapsed
for two or more renewal cycles shall pay the fees for the two most recent
renewal cycles and the penalties before being reinstated.

D. Biennial renewal
fees for licensure shall be not more than:

1. For a pharmacist,
$250.

2. For a pharmacy technician, $100.

3. For a duplicate renewal license, $25.

E. Fees that are designated to be not more than a
maximum amount shall be set by the board for the following two fiscal years
beginning November 1. The board shall establish fees
that are
approximately proportionate to the maximum fee allowed
to cover the board's anticipated expenditures for the following two fiscal
years. Variation in a fee is not effective except at the expiration
date of a license.

F. The board shall not renew a license for a
pharmacist unless the pharmacist has complied with the mandatory continuing
professional pharmacy education requirements of sections 32-1936 and 32-1937.
A pharmacist may complete the mandatory continuing
professional pharmacy education requirements after submitting a renewal
application and paying the applicable renewal fee, but the continuing education
requirements must be completed before the pharmacist's license expires for that
renewal cycle. The board shall update and maintain the renewal
application and renewal procedures to be consistent with this subsection.

G. The board shall prescribe intern licensure
renewal fees that do not exceed $75. The license of an intern who
does not receive specific board approval to renew the intern license or who
receives board approval to renew but who does not renew and pay all required
fees before the license expiration date is suspended after the license
expiration date. The board shall vacate a suspension if the licensee pays all
past due fees and penalties. Penalties shall not exceed $350. The
board may waive collection of a fee or penalty due after suspension under
conditions established by the board.

H. The board shall not renew a license for a
pharmacy technician unless that person has a current board-approved license and
has complied with board-approved mandatory continuing professional
education requirements.
� A pharmacy technician may complete the
mandatory continuing professional pharmacy education requirements after
submitting a renewal application and paying the applicable renewal fee, but the
continuing education requirements must be completed before the pharmacy
technician's license expires for that renewal cycle. The board shall
update and maintain the renewal application and renewal procedures to be
consistent with this subsection.
If a pharmacy technician
prepares, compounds or dispenses prescription medications at a remote
dispensing site pharmacy, the pharmacy technician shall complete, in addition
to any other board-approved mandatory continuing professional education
requirements, a two-hour continuing education program on remote
dispensing site pharmacy practices provided by an approved provider.
END_STATUTE

Sec. 3. Title 32, chapter 18, article 2,
Arizona Revised Statutes, is amended by adding section 32-1930.01, to read:

START_STATUTE
32-1930.01.

Change of ownership; continued operations; termination

A. Notwithstanding any other
provision in this chapter to the contrary, if a business that holds a valid
permit issued by the board undergoes a change of ownership, the business may
continue to operate under the existing permit during the period in which the
new owner's permit application is under review if all of the following
conditions are met:

1. The new owner
notifies the board within seven calendar days after the effective date
of the change in ownership and Submits a
permit application

within thirty calendar days
after
the effective date of the change of ownership.

2. The business remains in compliance
with all statutes and rules applicable to the permit type.

3. The existing permit has not
expired, been suspended or been revoked.

4. The new owner attests to assume
responsibility for compliance with all regulatory requirements during the
transition period.

B. The board may deny continued
operation of a business under subsection A of this section if the board
determines any of the following:

1. The change in ownership presents a
risk to public health or safety.

2. The new owner has failed to meet
any requirement of subsection A of this section.

3. The board has credible evidence of
fraud, diversion or other conduct that would constitute grounds for permit
denial.

C. Continued operation under
subsection A of this section automatically terminates on the earliest of
either:

1. The date the board issues the new
permit.

2. The date the board denies the
permit application.

D. A business operating pursuant to
this section is subject to all inspections, reporting requirements and
enforcement actions to the same extent as a permitted entity.
END_STATUTE

Sec. 4. Section 32-1965, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-1965.

Prohibited acts

Committing or causing any of
the
following acts
or the causing of

any thereof
,
in addition to any
others so

other act
specified
in this chapter,
are
is
prohibited:

1.
The manufacture, sale
Manufacturing, selling
, holding or offering for sale
of
any drug, device, poison
,
or
hazardous substance that is adulterated or misbranded.

2.
The adulteration

Adultering
or misbranding
of
any drug,
device, poison
,
or hazardous substance.

3.
The
alteration, mutilation, destruction, obliteration,

Altering, mutilating, destroying, obliterating
or
removal
of
removing
the whole or any part of the labeling
of, or
the
doing
of
any other act
with respect to, a drug, device, poison
,
or
hazardous substance, if such
an
act is done while
such
the
article is held for sale and
results in
such
the
article being
adulterated or misbranded.

4.
The manufacture, sale
manufacturing, selling
, holding or offering for sale
of
a counterfeit drug or forging, counterfeiting, simulating
,
or falsely representing or without proper authority
using any mark, stamp, tag, label
,
or other
identification device authorized or required by rules adopted under
the provisions of
this chapter
,
or
of
the federal act.

5.
The
Using, on the labeling
of any drug or device
,
or in any advertisement
,
relating to
such
a

drug or device,
of
any representation or suggestion that
such
the
drug or device complies with
the provisions of
this chapter.

6. In the case of a prescription-only drug or
a controlled substance that requires a prescription order by state or federal
law, the failure of the manufacturer, packer
,
or
distributor to transmit, to any medical practitioner who makes a written
request for information about such
a
drug, true and
correct copies of all printed matter included in any package in which that drug
is distributed or other printed matter approved under the federal act.

7. Engaging in the practice of pharmacy without
first having a current license in good standing issued by the board.

8. Making or offering to make a forged, counterfeit,
altered or photocopied prescription or drug order for the purpose of obtaining
prescription-only
drugs
or controlled
substance drugs
substances
.

9. Wholesaling or distributing a
prescription drug or prescription device, a controlled substance, a
nonprescription drug, a regulated chemical as defined in section 13-3401,
medical gas or durable medical equipment without a valid board-issued
permit.

END_STATUTE