New Pharmacy License is Required.

According to the Texas Pharmacy Act, Section 30(d), a pharmacy license is not transferable or assignable.  Therefore, if a pharmacy changes ownership, the new owner must obtain a new pharmacy license number.  A change of ownership takes place when one of the following occurs:

1. A sole proprietor (individual) incorporates or changes to a partnership;
   A partnership incorporates or changes to a sole proprietor;
2. A corporation dissolves and changes its status to a partnership or sole proprietor;*
3. A sole proprietor (individual), partnership or corporation sells or transfers the ownership to another individual, partnership or corporation.

*Note: A change of ownership does not occur when the corporation sells stock to another person or changes officers but the same corporation continues as the owner of the pharmacy license.

Application Procedure

To obtain a pharmacy license, a pharmacy license application must be completed by the applicant. If the application form is properly completed and returned with the required fee, the Board will issue the pharmacy license and notify the applicant within seven working days. To obtain applications or ask questions concerning these procedures, contact the Pharmacy Licensing Section of the Board at (512) 305-8000. The completed application must be sent to the Board office with the items listed below. Upon approval of the pharmacy license, the Board will send a pharmacy license notification letter which contains the pharmacy license number.

Required Documents:

I. FEES: $164.00 = (Fee includes a $7.00 surcharge to fund the impaired pharmacists program)

+$          =  of Pharmacy Prescription Balances (x) $12.50
  $          = Total Licensing Fee

II. LEASE AGREEMENT: All new pharmacy applications must submit a statement certifying the ownership status of the real property.  This statement must be signed by the lessee and the lessor.   In a leased property situation, one of the following two documents will suffice:

1.A copy of the lease agreement between the owner of the pharmacy license and the owner of the building in which the pharmacy is located.

2.A  notarized statement signed by the lessee and the lessor, certifying the existence of a lease agreement. The sample form accompanying the pharmacy application may be used for this purpose.

In cases where the real property is owned by the pharmacy license holder, a notarized statement to that effect, signed by the owner, must be submitted.

III. SALES CONTRACT: A copy of the purchase contract or mutual agreement between the buyer and seller is required.  As an alternative, the applicant may substitute a notarized statement of intent to convey ownership signed by the buyer and the seller, stating the proposed date of ownership change.

IV. CURRENT PHARMACY LICENSE: The current pharmacy license must accompany the application.  Keep and post a copy of the completed pharmacy application to show licensure during the transition period.

IV. COMPLETED PHARMACY APPLICATION FORM:

1.Complete pharmacy name and location address.

2.Pharmacy Telephone number and Fax number (area code/number)

3.Enter the previous pharmacy name and license number.

4.Circle the appropriate class of pharmacy.

5.Circle the type of ownership.

6.Enter the number of pharmacy prescription balances, calculate and enter the total licensing fee that is due.

7.Circle the services provided by the pharmacy.

8.Circle the type of pharmacy.

9.Complete the name and address of the individual owner, partnership, government entity, or corporation.

10.Complete the Corporate Charter if owned by a corporation.  This corporation must be authorized to transact business in Texas.

11.The owner must place his or her initials by the appropriate answer concerning prior convictions.

12.The owner or executive officer of the corporation must read and sign the attest statement.  This statement must be notarized.  This attest statement cannot be signed by the pharmacist-in-charge unless the pharmacist-in-charge is also the owner or an executive officer of the corporation that is applying for ownership of the pharmacy.

13.Enter the pharmacist-in-charge name and license number.

14.The pharmacist-in-charge must read and sign this acknowledgment statement.  This signature must be notarized.

15.Enter all staff pharmacists and license numbers that will work at this pharmacy.

16.The following ownership information is required. The pharmacy owner's or owners':

• full name;
• home address and home phone number;
• status (e.g., sole owner, partner, president of corporation);
• social security number;
• date of birth; and
• Texas pharmacist license number if applicable.

When providing this ownership information, the following guidelines should be observed.

•If the pharmacy is owned by an individual, provide the information required for that individual. •If the pharmacy is owned by a government entity, information should be provided on the chief administrator in charge of pharmacy operations. •If the pharmacy is owned by a partnership or corporation, list the managing officers of the partnership or corporation. Managing officers are defined as the top four executive officers, including the corporate officer in charge of pharmacy operations, who are designated by the partnership or corporation to be jointly responsible for the legal operation of the pharmacy.

18.   ADDITIONAL REQUIREMENTS FOR CLASS B, C, D, and E PHARMACIES

Class B Pharmacies

Include Texas Department of Health Radiation Control Number.  Include detailed floor plans and qualifications of the nuclear pharmacist(s).

Class C Pharmacies

Include applicable Texas License Number where required.

If owned/operated by a Hospital Management Firm, include a copy of the contract between the hospital and the management firm (or a notarized statement to that effect, signed by the hospital and management firm). If a contract is terminated between the hospital and the management firm, the existing management firm must submit written notification to the Board stating the termination date. Until the Board receives this notification and the applicant meets the above requirements, a pharmacy license will not be issued.

Class D Pharmacies

A copy of the clinic's policy and procedure manual and drug formulary must be submitted. The original manual must be maintained in the clinic. This manual must be in compliance with Rule 291.93(g).

The name and Texas license of the staff physician must be submitted.

Class E Pharmacies

A Class E (Non-Resident) Pharmacy must be licensed as a pharmacy in the state in which it is located and this license must be in good standing. A space for recording this license number and the state in which the pharmacy is located is provided. With the application, the pharmacy must also include a copy of the report of the most recent pharmacy inspection by the state board of pharmacy in the state in which it is located. Also include a letter from that state board verifying that the licensure status of the pharmacy and the pharmacist-in-charge is valid and in good standing.

ADDITIONAL REQUIRED REGISTRATIONS/PERMITS FOR PHARMACIES UNDERGOING A CHANGE OF OWNERSHIP AND LOCATED IN TEXAS

CONTROLLED SUBSTANCES*

When the pharmacy obtains a new pharmacy license, the pharmacy must obtain new registrations from the Department of Public Safety (DPS) and the Drug Enforcement Administration (DEA).

*Note: DEA requires registrants to notify the appropriate DEA Divisional Office by registered mail at least 14 days prior to a transfer of ownership. See “Distribution upon Discontinuance or Transfer of Business” in the DEA Pharmacist's Manual section of this reference.

When new controlled substance registrations are not obtained by the date of the change of ownership, a new owner may operate under the previous owner's controlled substance registration during the transition period if:

1.BOTH the buyer and the seller enter into a power of attorney that specifically sets forth the following:*

2.the seller agrees to allow the controlled substances activities to be carried out under the seller's DEA registration:

• the seller agrees to allow the buyer to carry out the controlled  substances activities of the pharmacy, including the ordering of controlled substances, as an agent of the seller;
• the seller acknowledges that, as the controlled substances registrant, he/she will be held accountable for any violations of the controlled substances laws which may occur; and
• the buyer agrees that the controlled substances activities of the pharmacy may be carried out under the seller's DEA registration for no more than 45 days after the purchase date, which shall be recorded in the agreement; and
• the buyer notifies the appropriate DEA Divisional Office by registered mail at least 14 days in advance of the proposed use of the seller's DEA registration and furnishes a copy of the power of attorney and a copy of the seller's DEA registration certificate. No written or other response from DEA regarding the proposed Power of Attorney will constitute DEA approval. Contact the appropriate DEA Divisional Office for complete information.

*Note: A form which may be used to grant the above power of attorney is included in the Procedures, Forms, and Addresses  portion of this publication.

Drug Enforcement Administration (DEA) Registration
Allow at least 45 days for DEA to process your controlled substances registration. Applications may be obtained from DEA at the following

Registration Unit
P. O. Box 28083
Central Station
Washington, DC 20038-8083
(800) 882-9539 (24 hour automated system)
Dallas Divisional Office For zip codes: 75000-75899*, 76000-76499 and
79000-79700*
Drug Enforcement Administration
1880 Regal Row
Dallas, Texas 75235
Voice: (214) 767-7250
FAX: (214) 767-7928
Registration:  (214) 767-7121
Houston Divisional Office For zip codes: 75900-75999*, 77000-78199*,
and 78900-78999*
Drug Enforcement Administration
333 West Loop North, Suite 300
Houston, Texas 77024
Voice: (713) 681-1771
FAX: (713) 956-5678
Registration: (713) 613-7636
San Antonio Divisional Office For zip codes: 75800-75899,* 76500-76999,
78000-78299*, 78600-78999*, and 79700-79900*
Drug Enforcement Administration
10127 Morocco, Suite 200
San Antonio, Texas 78216
Voice: (210) 525-2900
FAX: (210) 525-2930
Registration: (713) 613-7636

*Note:  Divisional Office responsibility is assigned by county, therefore there may be some overlap in the zip codes listed above.  If your zip code is listed for more than one of the Divisional Offices, contact any of the Divisional Offices and ask which office is responsible for your county.

1.Class D Pharmacies may NOT possess controlled substances and therefore may not apply for DPS and DEA registrations.

2.You must have a pharmacy license first, then a DPS registration in order to complete the DEA application.

Inventory Requirements

On the date of the transfer of ownership, an inventory of all controlled substances and all dosage forms containing butorphanol (e.g., Stadol®), nalbuphine (e.g., Nubain®) and carisoprodol (e.g , Soma®) on hand must be taken (see Board Rule 291.17 for complete inventory requirements). This inventory constitutes the closing inventory of the previous owner and the initial inventory of the new owner. This inventory must be retained for at least two years.

1.If the new owner has a new DEA registration number on the date of the change of ownership, this will be the only inventory of controlled substances needed for the change of ownership. Transfer the controlled substances as outlined below.*

2.If the new owner does NOT have a new DEA registration number on the date of the change of ownership, a second inventory of all controlled substances on hand must be taken when the new DEA registration is received. Transfer the controlled substances as outlined below.

Transfer of Schedule II Controlled Substances

1.Schedule II controlled substances must be transferred on a DEA Order Form (DEA 222). The previous owner is the “Supplier” and the new owner is the “Purchaser.” The new owner “orders” the C-II drugs from the previous owner on the new owner's DEA Order Forms.

2.If full bottles of C-II drugs are transferred, the purchaser writes the number of bottles in the column marked “number of packages” and writes the size of package in the column marked “size of package.” If partial bottles of C-II drugs are transferred, the purchaser should leave blank the column marked “number of packages” and complete the column marked “size of package” with the exact number of tablets (capsules, etc.) transferred. The count for C-II drugs may not be estimated.

3.The new owner (or the person granted power of attorney for the new owner) signs the Order Form and issues Copy 1 (brown) and Copy 2 (green) to the previous owner.

4.The previous owner enters the required information on the right-hand side of the DEA Order Form in the space marked “To be filled in by Supplier” (the NDC number of the transferred drug is not required). The Supplier's DEA registration number is the DEA registration number of the pharmacy under the previous owner (sellers' DEA number).

Transfer of Schedule III-V Controlled Substances

Records must be maintained for the transfer of Schedule III, IV, or V controlled substances. These records (e.g., invoices) must indicate the following information:*

1. the actual date of transfer;
2. name, strength, and quantity of the controlled substance transferred;
3. name, address and DEA registration number of the transferring pharmacy; and
4. name, address and DEA registration number of the pharmacy or practitioner to whom the controlled substances are transferred.

An estimated count or measure of Schedule III-V drugs may be taken unless the container holds more than 1000 dosage units, in which case an exact count of the contents must be made.

*Note: The transferring pharmacy must provide a copy of the record of distribution (invoice) to the receiving pharmacy.

Previous Owner's (Seller's) Responsibilities

1.  Mail the following items to the appropriate DEA divisional office:

(a) the DEA registration certificate issued to the previous owner;

(b) all unused DEA Order Forms (DEA 222) — the previous owner should write the word “VOID” on the face of each Order Form prior to mailing;

(c) copy 2 (green) of the DEA Order Forms which were used to transfer Schedule II controlled substances, if any; and

(d) letter of explanation.

Dallas Divisional Office For zip codes: 75000-75899*, 76000-76499 and 79000-79700*
Drug Enforcement Administration
1880 Regal Row
Dallas, Texas 75235
Voice: (214) 767-7250
FAX: (214) 767-7928
Registration:  (214) 767-7121

Houston Divisional Office For zip codes: 75900-75999*, 77000-78199*, and 78900-78999*
Drug Enforcement Administration
333 West Loop North, Suite 300
Houston, Texas 77024
Voice: (713) 681-1771
FAX: (713) 956-5678
Registration: (713) 613-7636

San Antonio Divisional Office For zip codes: 75800-75899,* 76500-76999, 78000-78299*, 78600-78999*, and 79700-79900*
Drug Enforcement Administration
10127 Morocco, Suite 200
San Antonio, Texas 78216
Voice: (210) 525-2900
FAX: (210) 525-2930
Registration: (713) 613-7636

*Note: Divisional Office responsibility is assigned by county, therefore there may be some overlap in the zip codes listed above.  If your zip code is listed for more than one of the Divisional Offices, contact any of the Divisional Offices and ask which office is responsible for your county.

2.    Mail the following items to DPS:

(a)     DPS registration certificate; and

(b)    a letter of explanation.

Mail to: Department of Public Safety
Controlled Substances Registration Section
P.O. Box 4087
Austin, Texas 78773-0001

Retention of Records

All controlled substance records of the previous owner must be transferred to the new owner. The previous owner is responsible for the accuracy of the records prior to the date of transfer but the new owner is responsible for the custody and maintenance of the records. All records must be maintained 2 years from the date of the sale.