1. (a)

   1. (1) Every wholesale distributor, third-party logistics provider, manufacturer, and outsourcing facility that shall engage in the distribution of prescription drugs, to include without limitation manufacturing in this state, shipping into this state, or selling or offering to sell in this state, shall register with the Arkansas State Board of Pharmacy by application for a permit on a form:

      1. (A) Furnished by the board; and
      2. (B) Accompanied by a fee as defined in 17 CAR § 160-107.

   2. (2) The board may require a separate license for each facility directly or indirectly owned or operated by the same business entity within this state, or for a parent entity with divisions, subdivisions, subsidiaries, and/or affiliate companies within this state when:

      1. (A) Operations are conducted at more than one (1) location; and
      2. (B) There exists joint ownership and control among all the entities.

2. (b)

   1. (1) The permit may be renewed biennially at a renewal permit fee as defined in 17 CAR § 160-107.

   2. (2)

      1. (A) All permits issued under this section shall expire on December 31 of each year.
      2. (B) A penalty as defined in 17 CAR § 160-107 will be charged, provided that if the renewal is unpaid by April 1 of any year, the license shall be null and void.

3. (c)

   1. (1) Upon a change of ownership of a wholesale distributor, as set out herein, a new permit shall be secured by the new owner or owners.

   2. (2)

      1. (A) The new owner or owners can continue operation of the wholesale distributor for fourteen (14) days after the effective date of the change of ownership.
      2. (B) After said fourteen-day period, the:

4. (i) Permit issued to the prior owner shall be void; and

   1. (ii) Operation of the wholesale distributor in Arkansas shall cease.

   2. (3) A change of ownership of a wholesale distributor occurs under, but is not limited to, the following circumstances:

      1. (A) A change of ownership of a wholesale distributor owned by a sole proprietor is deemed to have occurred when the:

         1. (i) Business is sold and the sale becomes final or the new owner assumes control of the wholesale distributor, whichever occurs first; or
         2. (ii) Proprietor enters into a partnership with another individual or business entity;

      2. (B) A change of ownership of a wholesale distributor owned by a partnership is deemed to have occurred when:

         1. (i) There is an addition or deletion of one (1) or more partners in a partnership to which a wholesale distributor’s license has been issued; or
         2. (ii) The business is sold and the sale becomes final or the new owner assumes control of the wholesale distributor, whichever occurs first;

      3. (C) A change of ownership of a wholesale distributor owned by a corporation is deemed to have occurred when:

         1. (i)
5. (a) (a) An individual or business acquires or disposes of twenty percent (20%) of the corporation’s outstanding shares of voting stock.

6. (b) (b) This shall not apply to any corporation the voting stock of which is actively traded on any securities exchange or in any over-the-counter market;

   1. (ii)
7. (a) (a) The corporation merges with another business or corporation.

8. (b) (b) The corporation owning the wholesale distributor is required to notify the board if a change of ownership or merger occurs within the parent corporation of the corporation that owns the wholesale distributor;

   1. (iii) The corporation’s charter expires or is forfeited; or

      1. (iv) The business is sold and the sale becomes final or the new owner assumes control of the wholesale distributor, whichever occurs first;

      2. (D) The board may:

         1. (i) Issue a limited-use wholesale distributor license to entities that do not engage in the wholesale distribution of prescription drugs except medical gases; and
         2. (ii) Waive certain requirements of regulation based on the limited nature of such distribution; or
      3. (E) Each permit issued hereunder shall be displayed by the holder thereof in a conspicuous place.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “(Amended 03/14/2007 and 8/1/2018)"