1. (a)

   1. (1) No person or entity subject to licensure shall sell or rent or offer to sell or rent directly to patients in this state any home medical equipment, legend devices, and/or medical gases unless the person or entity is licensed as required by Acts 1995, No. 1101.
   2. (2) The licensure requirements of this act will apply to all companies, agencies, and other business entities that are in the business of supplying medical equipment to patients in their homes and that bill the patient or the patient’s insurance, Medicare, Medicaid, or other third-party payer for the rent or sale of that equipment.

   3. (3) The application for a license shall be:

      1. (A) On a form furnished by the Arkansas State Board of Pharmacy; and
      2. (B) Accompanied by payment of fee as defined in 17 CAR § 160-107.

   4. (4) The board shall require a separate license for each facility directly or indirectly owned or operated within this state by the same person or business entity within this state, or for a parent entity with divisions, subdivisions, subsidiaries, and/or affiliate companies 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) Minimum required information for licensure.

   1. (1)

      1. (A) Applicants may apply for an Arkansas Supplier of Medical Equipment, Legend Devices, and/or Medical Gas Permit using forms provided by the board.
      2. (B) Entities that complete the application process and otherwise meet the qualifications for a permit will be granted a license.
      3. (C) Licenses will not be granted to those that are exempt from licensure requirements and board rules as provided in Arkansas Code § 17-92-903.
      4. (D) The board requires the following from each applicant for a Supplier of Medical Equipment, Legend Devices, and/or Medical Gas Permit as part of the initial licensing procedure and as part of any renewal of such license:

3. (i) The name, full business address, and telephone number of the licensee;

   1. (ii) All trade or business names used by the licensee;

      1. (iii) Addresses, telephone numbers, and the names of responsible on-site managers for the facility used by the licensee for the storage, handling, and distribution of:
4. (a) (a) Medical equipment;

5. (b) (b) Legend devices; and/or

   1. (c) (c) Medical gases;

      1. (iv) Full disclosure of the type of ownership or operation, i.e. partnership, corporation, LLC, LLP, or sole proprietorship; and

         1. (v) The name or names of the owner and/or operator of the entity, including:
6. (a) (a) If a person, the name of the person;

7. (b) (b) If a partnership, the name of each partner and the name of the partnership;

   1. (c) (c) If a corporation, the:
   2. (1) (1) Name and title of each corporate officer and director;
   3. (2) (2) Corporate names;
   4. (3) (3) Name of the state of incorporation;
   5. (4) (4) Employer identification number; and

   6. (5) (5) Name of the parent company, if any; or

      1. (d) (d) If a sole proprietorship, the:
   7. (1) (1) Full name of the sole proprietor; and
   8. (2) (2) Name of the business entity.
   9. (2) Where operations are conducted at more than one (1) location by a supplier of medical equipment, legend devices, and/or medical gases, each such location shall be licensed by the board.
   10. (3) If the entity is located outside of Arkansas, the name and address of the Arkansas resident agent.
   11. (4) Copies of other licenses and permits issued to the entity.
   12. (5) Changes in any information on the application for licensure shall be submitted to the board within thirty (30) days after such change.
   13. (6) Copy of liability insurance for products and services provided in the amount of five hundred thousand dollars ($500,000) or more.

   14. (7) A written description of the proposed operation.

       1. (c) Minimum qualifications for licensure. The board will consider the following factors in determining eligibility for licensure of entities that engage in supplying home medical equipment, medical gases, or legend devices, or any combination thereof, to patients on an order from medical practitioners licensed to order, use, or administer these products and to other licensed suppliers of home medical equipment, medical gases, or legend devices or any combination thereof:

   15. (1) Any convictions of the applicant under any federal, state, or local laws related to the distribution of:

       1. (A) Medical equipment;
       2. (B) Legend devices; and/or
       3. (C) Medical gases;
   16. (2) Any felony convictions of the applicant under federal, state, or local laws;
   17. (3) The furnishing by the applicant of false or fraudulent material in the application;
   18. (4) Suspension or revocation by federal, state, or local government of any license currently or previously held by the applicant;
   19. (5) Compliance with licensing requirements under previously granted licenses, if any;

   20. (6) Compliance with the requirements to maintain and/or make available to the board or to federal, state, or local law enforcement officials those records required to be maintained by suppliers of:

       1. (A) Medical equipment;
       2. (B) Legend devices; and/or
       3. (C) Medical gases; and

   21. (7) Any other factors or qualifications the board considers relevant to and consistent with the public health and safety.

       1. (d)
   22. (1) The biennial license renewal fee is defined in 17 CAR § 160-107.
   23. (2) All licenses issued under this act shall expire on December 31 of each calendar year.

   24. (3)

       1. (A) Each application for renewal of the license must be made on or before December 31 of each year.

       2. (B)

          1. (i) Penalties for late payment are defined in 17 CAR § 160-107.
          2. (ii) The license shall be considered null and void if the fee is not paid by April 1 of each year.

8. (e)

   1. (1) Each license issued hereunder shall be displayed by the holder thereof in a conspicuous place.
   2. (2) The board reserves the right to deny a license to an applicant if it determines that the granting of such a license would not be in the public interest.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “(Revised 11/13/2006)" "LLC" means limited liability company. "LLP" means limited liability partnership.