Texas Statutes
Subchapter A. Grounds for Discipline of Applicant or License Holder
Section 565.002. Applicant for or Holder of Pharmacy License

Sec. 565.002. APPLICANT FOR OR HOLDER OF PHARMACY LICENSE. (a) The board may discipline an applicant for or the holder of a pharmacy license, including a Class E pharmacy license subject to Section 565.003, if the board finds that the applicant or license holder has:
(1) been convicted of or placed on deferred adjudication community supervision or deferred disposition or the applicable federal equivalent for:
(A) a misdemeanor:
(i) involving moral turpitude; or
(ii) under Chapter 481 or 483, Health and Safety Code, or the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.); or
(B) a felony;
(2) advertised a prescription drug or device in a deceitful, misleading, or fraudulent manner;
(3) violated any provision of this subtitle or any rule adopted under this subtitle or that an owner or employee of a pharmacy has violated any provision of this subtitle or any rule adopted under this subtitle;
(4) sold without legal authorization a prescription drug or device to a person other than:
(A) a pharmacy licensed by the board;
(B) a practitioner;
(C) a person who procures a prescription drug or device for lawful research, teaching, or testing, and not for resale;
(D) a manufacturer or wholesaler licensed by the commissioner of public health as required by Chapter 431, Health and Safety Code; or
(E) a carrier or warehouseman;
(5) allowed an employee who is not a pharmacist to practice pharmacy;
(6) sold an adulterated or misbranded prescription or nonprescription drug;
(7) failed to engage in or ceased to engage in the business described in the application for a license;
(8) failed to maintain records as required by this subtitle, Chapter 481 or 483, Health and Safety Code, the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.), or any rule adopted under this subtitle or Chapter 483, Health and Safety Code;
(9) failed to establish and maintain effective controls against diversion of prescription drugs into other than a legitimate medical, scientific, or industrial channel as provided by this subtitle, another state statute or rule, or a federal statute or rule;
(10) engaged in fraud, deceit, or misrepresentation as defined by board rule in:
(A) operating a pharmacy;
(B) applying for a license to operate a pharmacy; or
(C) dispensing drugs for nontherapeutic purposes;
(11) violated a disciplinary order;
(12) been responsible for a drug audit shortage;
(13) been disciplined by the regulatory board of another state for conduct substantially equivalent to conduct described under this subsection; or
(14) waived, discounted, or reduced, or offered to waive, discount, or reduce, a patient copayment or deductible for a compounded drug in the absence of:
(A) a legitimate, documented financial hardship of the patient; or
(B) evidence of a good faith effort to collect the copayment or deductible from the patient.
(b) This subsection applies only to an applicant or license holder that is a legal business entity. The board may discipline an applicant for or the holder of a pharmacy license, including a Class E pharmacy license, if the board finds that a managing officer of the applicant or license holder has been convicted of or placed on deferred adjudication community supervision or deferred disposition or the applicable federal equivalent for:
(1) a misdemeanor:
(A) involving moral turpitude; or
(B) under Chapter 481 or 483, Health and Safety Code, or the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.); or
(2) a felony.
(c) A certified copy of the record of the state taking action described by Subsection (a)(13) is conclusive evidence of the action taken by that state.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1345 (S.B. 410), Sec. 26, eff. September 1, 2005.
Acts 2015, 84th Leg., R.S., Ch. 599 (S.B. 460), Sec. 11, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 895 (H.B. 3496), Sec. 3, eff. January 1, 2020.

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