Illinois Increases Lead Time for Change of Ownership of In-State Pharmacies to 90 Days, Expands Circumstances Requiring Application
Effective June 2, 2023, the Illinois Board of Pharmacy has overhauled the rule that sets timing and identifies the changes that require submission of an application. See 68 Ill. Admin. Code § 1330.780. There are now revised requirements for Illinois-licensed pharmacies with regard to a variety of changes, including ownership, name, legal status, pharmacy operations, and location.
Importantly, the changes that require submission of an application have expanded. Illinois Administrative Code sections 1330.780 (a) and 1330.780 (c) specify notice requirements for changes of ownership, name, location, or operations of a pharmacy. Amended section 1330.780 (a) now requires that a pharmacy application must be filed whenever any of the following occur:
- 50% or more ownership changes of a business, up from the previous threshold of 10%;
- A change of 50% or more of the board of directors or executive officers of a business;
- Any change in the legal status of an entity (e.g., individual, partnership, corporation, limited liability company), including conversion or reorganization;
- Any change in pharmacy location, including a remodel of the pharmacy or drug storage area;
- Any change in the name of a pharmacy; or
- Any change in the pharmacy operations pursuant to Subpart E (types of pharmacies) or the Pharmacy Practice Act.
Most significantly, applications for any of the above-mentioned changes must be filed 90 days in advance of the triggering event for resident Illinois pharmacies and no later than 30 days after the triggering event for nonresident pharmacies. These new requirements mean that Illinois now takes the prize for longest lead time in the country by requiring applications for resident pharmacies a full 90 days prior to the change.
Further, section 1330.780 (d) now states that notice must be provided no later than 30 days after any change in owners, partners, members, officers, directors, or shareholders owning 5% or more of the outstanding shares occurs, or any other change in the information provided on the application not specified in the bulleted section above.
The regulation providing that a purchaser may begin operations prior to the issuance of a new pharmacy license to when Division of Professional Regulation is in receipt of the application and when the purchaser and seller have a written power of attorney agreement remains in effect. Ill. Admin. Code tit. 68, § 1330.400 (e). Note that the agreement must provide that violations during the pendency of the application process shall be the sole responsibility of the seller. Id.
In summary, there are now a greater number of changes requiring submission of a full application to the IDFPR. Changes requiring an application now include a change of name, change of location (including remodel or change in drug storage area), change of pharmacy operations, and change of legal status of an entity (i.e., a conversion of entity type). Lastly, notice of any change in application information not otherwise listed must be provided to IDFPR within 30 days.
The bottom line? Advance planning (to the tune of 90+ days, for Illinois pharmacies) for a variety of changes will be necessary to ensure compliance for Illinois licensees. For questions about these updated licensing requirements for Illinois or any other state regulatory body, please contact your Quarles & Brady attorney or: