1. (a)

   1. (1) Every wholesale distributor that shall engage in the wholesale distribution of List I chemicals, to include without limitation manufacturing in this state, shipping in or into this state, or selling or offering to sell in this state, if not exempted by Acts 2001, No. 1209, 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 permit for each facility directly or indirectly owned or operated by the same business entity 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) The permit shall be renewed as defined in 17 CAR § 160-107.
3. (c) All permits issued under this section shall expire as defined in 17 CAR § 160-107.

4. (d) A change of ownership of a wholesale distributor of List I chemicals occurs under, but is not limited to, the following circumstances:

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

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

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

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

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

      1. (A)

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

   1. (ii) 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; or

      1. (B)

         1. (i) The corporation merges with another business or corporation.
         2. (ii) 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;
      2. (C) The corporation’s charter expires or is forfeited; or
      3. (D) The business is sold and the sale becomes final or the new owner assumes control of the wholesale distributor, whichever occurs first; or

   2. (4) A change of ownership of a wholesale distributor of List I chemicals owned by a limited liability company is deemed to have occurred when:

      1. (A) There is an addition or deletion of one (1) or more members of the limited liability company to which a List I chemical wholesale distributor’s permit has been issued;
      2. (B) The assets of the limited liability company devoted to or utilized in the wholesale distribution of List I chemicals are sold and the sale becomes final or the new owner assumes control of the wholesale distribution of List I chemicals; or
      3. (C) There is dissolution of the limited liability company.

6. (e)

   1. (1) The board may, after notice and hearing, suspend or revoke the registration of a List I wholesale distributor or impose other disciplinary action pursuant to Arkansas Code § 17-92-315 upon a finding of any of the following:

      1. (A) Violation of or failure to maintain qualification under 17 CAR § 160-2801;
      2. (B) Violation of any federal, state, or local law or rule regarding List I chemicals; or
      3. (C) Revocation, suspension, or surrender of a license or other authority issued by the Drug Enforcement Administration as a List I wholesale distributor or to otherwise possess, distribute, or sell or offer to distribute or sell List I chemicals.
   2. (2) The board shall follow the same procedures for hearings for a List I chemical wholesale distributor as applicable to hearings for pharmacists as set forth in Arkansas Code § 17-92-101 et seq. and this part.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “(Revised 11/15/2003)"