pharmacy board; civil penalties.

HB2953 - 572R - H Ver

House Engrossed

pharmacy board; civil
penalties.

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2953

AN
ACT

Amending sections 32-1904 and 32-1927.02,
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 32-1904, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-1904.

Powers and duties of board; immunity

A. The board shall:

1. Make bylaws and adopt rules that are necessary to
protect the public and that pertain to the practice of pharmacy, the
manufacturing, wholesaling or supplying of drugs, devices, poisons or hazardous
substances, the use of pharmacy technicians and support personnel and the
lawful performance of its duties.

2. Fix standards and requirements to register and
reregister pharmacies, except as otherwise specified.

3. Investigate compliance as to the quality, label
and labeling of all drugs, devices, poisons or hazardous substances and take
action necessary to prevent the sale of these if they do not conform to the
standards prescribed in this chapter, the official compendium or the federal
act.

4. Enforce its rules.� In so doing, the board or its
agents have free access, during the hours reported with the board or the posted
hours at the facility, to any pharmacy, manufacturer, wholesaler, third-party
logistics provider, nonprescription drug permittee or other establishment in
which drugs, devices, poisons or hazardous substances are manufactured,
processed, packed or held, or to enter any vehicle being used to transport or
hold such drugs, devices, poisons or hazardous substances for the purpose of:

(a) Inspecting the establishment or vehicle to
determine whether any provisions of this chapter or the federal act are being
violated.

(b) Securing samples or specimens of any drug,
device, poison or hazardous substance after paying or offering to pay for the
sample.

(c) Detaining or embargoing a drug, device, poison
or hazardous substance in accordance with section 32-1994.

5. Examine and license as pharmacists and pharmacy
interns all qualified applicants as provided by this chapter.

6. Require each applicant for an initial license to
apply for a fingerprint clearance card pursuant to section 41-1758.03. If
an applicant is issued a valid fingerprint clearance card, the applicant shall
submit the valid fingerprint clearance card to the board with the completed
application. If an applicant applies for a fingerprint clearance card
and is denied, the applicant may request that the board consider the
application for licensure notwithstanding the absence of a valid fingerprint
clearance card. The board, in its discretion, may approve an
application for licensure despite the denial of a valid fingerprint clearance
card if the board determines that the applicant's criminal history information
on which the denial was based does not alone disqualify the applicant from
licensure.

7. Issue duplicates of lost or destroyed permits on
the payment of a fee as prescribed by the board.

8. Adopt rules to rehabilitate pharmacists and
pharmacy interns as provided by this chapter.

9. At least once every three months, notify
pharmacies regulated pursuant to this chapter of any modifications on
prescription writing privileges of podiatrists, dentists, doctors of medicine,
registered nurse practitioners, osteopathic physicians, veterinarians,
physician assistants, optometrists and homeopathic physicians of which it
receives notification from the state board of podiatry examiners, state board
of dental examiners, Arizona medical board, Arizona state board of nursing,
Arizona board of osteopathic examiners in medicine and surgery, Arizona state
veterinary medical examining board, Arizona regulatory board of physician
assistants, state board of optometry or board of homeopathic and integrated
medicine examiners.

10. Charge a permittee a fee, as determined by the
board, for an inspection if the permittee requests the inspection.

11. Issue only one active or open license per
individual.

12. Allow a licensee to regress to a lower level
license on written explanation and review by the board for discussion,
determination and possible action.

13. Open an investigation only if the identifying
information regarding a complainant is provided or the information provided is
sufficient to conduct an investigation.

14. Provide notice to an applicant, licensee or
permittee using only the information provided to the board through the board's
licensing database.

B. The board may:

1. Employ chemists, compliance officers, clerical
help and other employees subject to title 41, chapter 4, article 4 and provide
laboratory facilities for the proper conduct of its business.

2. Provide, by educating and informing the licensees
and the public, assistance in curtailing abuse in the use of drugs, devices,
poisons and hazardous substances.

3. Approve or reject the manner of storage and
security of drugs, devices, poisons and hazardous substances.

4. Accept monies and services to assist in enforcing
this chapter from other than licensees:

(a) For performing inspections and other board
functions.

(b) For the cost of copies of the pharmacy and
controlled substances laws, the annual report of the board and other
information from the board.

5. Adopt rules for professional conduct appropriate
to the establishment and maintenance of a high standard of integrity and
dignity in the profession of pharmacy.

6. Grant
permission to deviate from a state requirement for modernization of pharmacy
practice, experimentation or technological advances.

7. Adopt rules for the training and practice of
pharmacy interns, pharmacy technicians and support personnel.

8. Investigate alleged violations of this chapter,
conduct hearings in respect to violations, subpoena witnesses and take such
action as it deems necessary to revoke or suspend a license
, a
registration
or a permit, place a licensee
, registrant

or permittee on probation or warn a licensee
, registrant

or permittee under this chapter or to bring notice of violations to the county
attorney of the county in which a violation took place or to the attorney
general.

9. By rule, approve colleges or schools of pharmacy.

10. By rule, approve programs of practical
experience, clinical programs, internship training programs, programs of
remedial academic work and preliminary equivalency examinations as provided by
this chapter.

11. Assist in the continuing education of
pharmacists and pharmacy interns.

12. Issue inactive status licenses as provided by
this chapter.

13. Accept monies and services from the federal
government or others for educational, research or other purposes pertaining to
the enforcement of this chapter.

14. By rule, except from the application of all or
any part of this chapter any material, compound, mixture or preparation
containing any stimulant or depressant substance included in section 13-3401,
paragraph 6, subdivision (c) or (d) from the definition of dangerous drug if
the material, compound, mixture or preparation contains one or more active
medicinal ingredients not having a stimulant or depressant effect on the
central nervous system, provided that such admixtures are included in such
combinations, quantity, proportion or concentration as to vitiate the potential
for abuse of the substances that do have a stimulant or depressant effect on
the central nervous system.

15. Adopt rules for the revocation, suspension or
reinstatement of licenses
, registrations
or permits or
the probation of licensees
, registrants
or permittees as
provided by this chapter.

16. Issue a certificate of free sale to any person
that is licensed by the board as a manufacturer for the purpose of
manufacturing or distributing food supplements or dietary supplements as
defined in rule by the board and that wants to sell food supplements or dietary
supplements domestically or internationally. The application shall contain all
of the following:

(a) The applicant's name, address, email address,
telephone and fax number.

(b) The product's full, common or usual name.

(c) A copy of the label for each product
listed. If the product is to be exported in bulk and a label is not
available, the applicant shall include a certificate of composition.

(d) The country of export, if applicable.

(e) The number of certificates of free sale
requested.

17. Establish an inspection process to issue
certificates of free sale or good manufacturing practice certifications. The
board shall establish in rule:

(a) A fee to issue certificates of free sale.

(b) A fee to issue good manufacturing practice
certifications.

(c) An annual inspection fee.

18. Delegate to the executive director the authority
to:

(a) If the president or vice president of the board
concurs after reviewing the case, enter into an interim consent agreement with
a licensee or permittee if there is evidence that a restriction against the
license or permit is needed to mitigate danger to the public health and
safety. The board may subsequently formally adopt the interim
consent agreement with any modifications the board deems necessary.

(b) Take no action or dismiss a complaint that has
insufficient evidence that a violation of statute or rule governing the
practice of pharmacy occurred.

(c) Request an applicant or licensee to provide
court documents and police reports if the applicant or licensee has been
charged with or convicted of a criminal offense.� The executive director may do
either of the following if the applicant or licensee fails to provide the
requested documents to the board within thirty business days after the request:

(i) Close the application, deem the application fee
forfeited and not consider a new application complete unless the requested
documents are submitted with the application.

(ii) Notify the licensee of an opportunity for a
hearing in accordance with section 41-1061 to consider suspension of the
licensee.

(d) Pursuant to section 36-2604, subsection B,
review prescription information collected pursuant to title 36, chapter 28,
article 1.

C. At each regularly scheduled board meeting, the
executive director shall provide to the board a list of the executive
director's actions taken pursuant to subsection B, paragraph 18, subdivisions
(a), (c) and (d)

(
b
) and (
c
)
of this section since the last board meeting.

D. The board may issue nondisciplinary civil
penalties or delegate to the executive director the authority to issue
nondisciplinary civil penalties.� The nondisciplinary civil penalties shall be
prescribed by the board in rule and issued using a board-approved form.
The maximum civil penalty may not exceed $25,000 in any
six-month period.� The board and the executive director may issue a civil
penalty that is less than the maximum civil penalty and may take into account
activities of the licensee, registrant or permittee

over
the previous forty-eight months.
If a licensee
, registrant
or permittee fails to pay a nondisciplinary civil
penalty that the board has imposed on it, the board shall hold a hearing on the
matter.� In addition to any other nondisciplinary civil penalty adopted by the
board, either of the following acts or omissions that is not an imminent threat
to the public health and safety is subject to a nondisciplinary civil penalty:

1. An occurrence of either of the following:

(a) Failing to submit a remodel application before
remodeling a permitted facility.

(b) Failing to notify the board of the relocation of
a business.

2. The occurrence of any of the following violations
or any of the violations adopted by the board in rule, with three or more
violations being presented to the board as a complaint:

(a) The licensee
, registrant

or permittee fails to update the licensee's
, registrant's

or permittee's online profile within ten days after a change in contact
information, address, telephone number or email address.

(b) The licensee
or registrant

fails to update the licensee's
or registrant's
online
profile within ten days after a change in employment.

(c) The licensee fails to complete the required
continuing education for a license renewal.

(d) The licensee fails to update the licensee's
online profile to reflect a new pharmacist in charge within fourteen days after
the position change.

(e) The permittee fails to update the permittee's
online profile to reflect a new designated representative within ten days after
the position change.

(f) The licensee
, registrant

or permittee fails to notify the board of a new criminal charge, arrest or
conviction against the licensee
, registrant
or permittee
in this state or any other jurisdiction.

(g) The licensee
, registrant

or permittee fails to notify the board of a disciplinary action taken against
the licensee
, registrant
or permittee by another
regulating agency in this state or any other jurisdiction.

(h)
A

The
licensee
, registrant
or permittee fails to renew a license or permit
within sixty days after the license
, registration
or
permit expires. If more than sixty days have lapsed after the expiration of a
license or permit, the licensee
, registrant
or permittee
shall appear before the board.

(i) A new pharmacist in charge fails to conduct a
controlled substance inventory within ten days after starting the position.

(j) A person fails to obtain a permit before
shipping into this state anything that requires a permit pursuant to this
chapter.

(k) Any other violations of statute or rule that the
board or the board's designee deems appropriate for a nondisciplinary civil
penalty.

E. The board shall develop substantive policy
statements pursuant to section 41-1091 for each specific licensing and
regulatory authority the board delegates to the executive director.

F. The executive director and other personnel or
agents of the board are not subject to civil liability for any act done or
proceeding undertaken or performed in good faith and in furtherance of the
purposes of this chapter.
END_STATUTE

Sec. 2. Section 32-1927.02, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-1927.02.

Permittees; disciplinary action

A. The board may discipline a permittee if:

1. The board determines that the permittee or
permittee's employee is guilty of unethical conduct pursuant to section 32-1901.01,
subsection A.

2. Pursuant to a psychiatric examination, the
permittee or the permittee's employee is found to be mentally unfit to safely
engage in employment duties.

3. The board determines that the permittee or the
permittee's employee is physically or mentally incapacitated to such a degree
as to render the permittee or permittee's employee unfit to safely engage in
employment duties.

4. The permit was issued through error.

5. A permittee or permittee's employee allows a
person who does not possess a current license or registration issued by the
board to work as a pharmacist, pharmacy intern, pharmacy technician or pharmacy
technician trainee.

B. A permittee who after a formal hearing is found
by the board to be guilty of unethical conduct, to be mentally or physically
unable safely to engage in employment duties or to be in violation of this
chapter or a rule adopted under this chapter or whose employee after a formal
hearing is found by the board to be guilty of unethical conduct, to be mentally
or physically unable safely to engage in employment duties or to be in
violation of this chapter or a rule adopted under this chapter is subject to any
one or combination of the following:

1. A civil penalty of not more than $1,000 for each
violation of this chapter or a rule adopted under this chapter.
�For
permittees that are not directly performing patient care, civil penalties
imposed pursuant to this paragraph may not exceed $25,000 in the aggregate in
any six-month period.

2. A letter of reprimand.

3. A decree of censure.

4. Completion of board-designated pharmacy law
continuing education courses.

5. Probation.

6. Suspension or revocation of the permit.

C. The board may charge the costs of formal hearings
to the permittee whom it finds to be in violation of this chapter or a rule
adopted under this chapter or whose employee it finds to be in violation of
this chapter or a rule adopted under this chapter.

D. The board on its own motion may investigate any
evidence that appears to show that a permittee or permittee's employee is or
may be guilty of unethical conduct, is or may be mentally or physically unable
safely to engage in employment duties or is or may be in violation of this
chapter or a rule adopted under this chapter. Any person may, and
any licensee or permittee must, report to the board any information that
appears to show that a permittee or permittee's employee is or may be guilty of
unethical conduct, is or may be mentally or physically unable safely to engage
in employment duties or is or may be in violation of this chapter or a rule
adopted under this chapter.� The board or the executive director shall notify
the permittee as to the content of the complaint as soon as
reasonable. Any person or entity that reports or provides
information to the board in good faith is not subject to an action for civil
damages.� It is an act of unethical conduct for any permittee to fail to report
as required by this subsection.

E. The board or, if delegated by the board, the
executive director shall require any combination of mental, physical,
psychological, psychiatric or medical competency examinations and conduct
necessary investigations, including investigational interviews between
representatives of the board and the permittee or permittee's employee, to
fully inform itself about any information filed with the board under subsection
D of this section. These examinations may also include biological fluid
testing. The board may require the permittee or permittee's
employee, at that person's expense, to undergo assessment by a board-approved
substance abuse treatment and rehabilitation program.

F. If after completing its investigation the board
finds that the information provided pursuant to subsection D of this section is
not of sufficient seriousness to merit disciplinary action against the permit,
the board may take any of the following actions:

1. Dismiss if the complaint is without merit.

2. File an advisory letter.� The permittee may file
a written response with the board within thirty days after receiving the
advisory letter.

3. Require the permittee to complete board-designated
pharmacy law continuing education courses.

G. The board shall not disclose the name of the
person who provides information regarding a permittee's or permittee's
employee's drug or alcohol impairment or the name of the person who files a
complaint if that person requests anonymity.

H. If after completing its investigation the board
believes that the information is or may be true, it may request a conference
with the permittee or permittee's employee. If the permittee or
permittee's employee refuses the invitation for a conference and the
investigation indicates that grounds may exist for revocation or suspension of
a permit, probation, issuance of a decree of censure or a letter of reprimand
or imposition of a civil penalty, the board shall issue a formal notice that a
hearing be held pursuant to title 41, chapter 6, article 10.

I. If through information provided pursuant to
subsection D of this section or by other means the board finds that the
protection of the public health, welfare and safety requires emergency action
against the permit, the board may restrict a permit or order a summary
suspension of a permit pending proceedings for revocation or other
action. If the board acts pursuant to this subsection, the board
shall also serve the permittee with a written notice of complaint and formal
hearing that sets forth the charges and the permittee's right to a formal
hearing on the charges before the board or an administrative law judge within
sixty days pursuant to title 41, chapter 6, article 10.

J. If after completing the conference the board
finds the information provided pursuant to subsection D of this section is not
of sufficient seriousness to merit revocation or suspension of a permit,
probation, issuance of a decree of censure or a letter of reprimand or
imposition of a civil penalty, it may take the following actions:

1. Dismiss if the information is without merit.

2. File an advisory letter.� The permittee may file
a written response with the board within thirty days after receiving the
advisory letter.

3. Require the permittee to complete board-designated
pharmacy law continuing education courses.

K. If during a conference the board finds that the
information provided pursuant to subsection D of this section indicates that
grounds may exist for revocation or suspension of a permit, probation, issuance
of a decree of censure or a letter of reprimand or imposition of a civil
penalty, it may take the following actions:

1. Dismiss if the information is without merit.

2. File an advisory letter.� The permittee may file
a written response with the board within thirty days after the permittee
receives the advisory letter.

3. Require the permittee to complete board-designated
pharmacy law continuing education courses.

4. Enter into an agreement with the permittee to
discipline the permittee, restrict the permittee's business activities or
rehabilitate or assess the permittee in order to protect the public and ensure
the permittee's ability to safely engage in employment duties.� The agreement
may include, at a minimum, the following disciplinary actions, business
activity restrictions and rehabilitative or assessment programs:

(a) Issuance of a letter of reprimand.

(b) Issuance of a decree of censure.

(c) Business activity restrictions, including
limitations on the number, type, classification or schedule of drug, device,
poison, hazardous substance, controlled substance or precursor chemical that
may be manufactured, sold, distributed or dispensed.

(d) Successful completion of board-designated
pharmacy law continuing education courses.

(e) Rehabilitative or assessment programs, including
board-approved community service or successful completion of a board-approved
substance abuse treatment and rehabilitation program at the permittee's own
expense.

(f) A civil penalty of not more than $1,000 for each
violation of this chapter or a rule adopted under this chapter.

(g) A period and terms of probation best adapted to
protect the public health and safety and rehabilitate or assess the permittee
concerned.� Probation may include temporary suspension and any or all of the
disciplinary actions, business practice restrictions, rehabilitative or
assessment programs listed in this section or any other program agreed to by
the board and the permittee.

L. If the board finds that the information provided
pursuant to subsection D of this section and additional information provided
during the conference indicate that grounds may exist for revocation or
suspension of a permit, probation, issuance of a decree of censure or a letter
of reprimand or imposition of a civil penalty, it shall initiate formal
proceedings pursuant to title 41, chapter 6, article 10.

M. If the permittee wishes to be present at the
formal hearing in person or by representation, or both, the permittee must file
with the board an answer to the charges in the notice of hearing.� The answer
must be in writing, be verified under oath and be filed within thirty days
after service of the notice of hearing.� Failure to answer the board's notice
of hearing is deemed an admission of the charges in the notice of hearing.

N. If the board, during any investigation,
determines that a criminal violation might have occurred, it shall disclose its
investigative evidence and information to the appropriate criminal justice
agency for its consideration.

O. In determining the appropriate disciplinary
action under this section, the board shall consider all previous
nondisciplinary and disciplinary actions against a permittee.

P. The board may deny a permit to an applicant for
the grounds prescribed in subsection A of this section.

Q. If the board approves a permit and the business
fails to become operational within nine months after the date the permit is
granted, the permit is no longer valid. The board may grant a
onetime extension for the business to become operational.
END_STATUTE