California may be the place you want to establish your dream pharmacy business, but can anyone own a pharmacy in California? How do you start a pharmacy business in this state? How does licensing come into play?

The California pharmacy laws specify the process and who can own one. If you are interested in joining the bandwagon, each of these rules must be strictly followed.

The Board of Pharmacy aims not just to enforce the laws but also to serve and protect the public by regulating controlled substances. For this reason, failure to follow the rules would result in penalties and even cancellation of licenses.

If you want to be in the pharmacy business without violating the rules, it is paramount to know each of them and comply. The following information will help.

Important Pharmacy Business Rules in California You Should Know About

If you want to be in the pharmacy business without violating the rules, it is paramount to know each of them and comply. The following information will help.

Can a non-pharmacist own a pharmacy in California?

The California Pharmacy Board has determined the licensure of a pharmacy is a critical process. The board is authorized to issue a pharmacy license to an individual, a firm, association, partnership, corporation, limited liability company, state government agency, trust, or political subdivision. There are some exceptions to who can own a pharmacy.

According to Section 4150 of the California Business and Professions Code, only licensed pharmacists can be shareholders, officers, and directors of the pharmacy. Assistant secretaries and assistance treasurers, on the other hand, do not need a license.

Who Regulates the Sites Where a Pharmacy is Located?

The board actively regulates these sites. The board performs a thorough investigation of every application for a pharmacy license, which includes collecting all ownership and financial information, criminal background checks for beneficial owners and individuals with management and control, thorough documentation of all owners (whether or not they actively participate in the pharmacy’s daily activities), etc.

Can a Person Who is Not a Licensed Pharmacist be Responsible for the Day-to-Day Operations of the Pharmacy?

Every pharmacy must have a pharmacist-in-charge who is responsible for the day-to-day operations. The pharmacy shall designate a pharmacist-in-charge and, within 30 days thereof, shall notify the board in writing of the identity and license number of that pharmacist and the date he or she was designated. The pharmacist-in-charge shall be responsible for a pharmacy’s compliance with all state and federal laws and regulations pertaining to the practice of pharmacy.

The proposed pharmacist-in-charge shall be subject to approval by the board. The board shall not issue or renew a pharmacy license without the identification of an approved pharmacist-in-charge for the pharmacy.

What Does the California Pharmacy Law Says if the Pharmacist-in-charge Quits?

Every pharmacy shall notify the board in writing, on a form designed by the board, within 30 days of the date when a pharmacist-in-charge ceases to act as the pharmacist-in-charge, and shall on the same form propose another pharmacist to take over as the pharmacist-in-charge.

The proposed replacement pharmacist-in-charge shall be subject to approval by the board. If disapproved, the pharmacy shall propose another replacement within 15 days of the date of disapproval and shall continue to name proposed replacements until a pharmacist-in-charge is approved by the board. Make sure to get legal consultation if this event takes place.

What to Do When the Pharmacy is Unable to Identify a Permanent Replacement Pharmacist-in-Charge

If a pharmacy is unable, in the exercise of reasonable diligence, to identify within 30 days a permanent replacement pharmacist-in-charge to propose to the board on the notification form, the pharmacy may instead provide on that form the name of any pharmacist who is an employee, officer, or administrator of the pharmacy or the entity that owns the pharmacy and who is actively involved in the management of the pharmacy on a daily basis, to act as the interim pharmacist-in-charge for a period not to exceed 120 days.

The pharmacy, or the entity that owns the pharmacy, shall be prepared during normal business hours to provide a representative of the board with the name of the interim pharmacist-in-charge with documentation of the active involvement of the interim pharmacist-in-charge in the daily management of the pharmacy, and with documentation of the pharmacy’s good faith efforts prior to naming the interim pharmacist-in-charge to obtain a permanent pharmacist-in-charge.

By no later than 120 days following the identification of the interim pharmacist-in-charge, the pharmacy shall propose to the board the name of a pharmacist to serve as the permanent pharmacist-in-charge. The proposed permanent pharmacist-in-charge shall be subject to approval by the board. If disapproved, the pharmacy shall propose another replacement within 15 days of the date of disapproval and shall continue to name proposed replacements until a pharmacist-in-charge is approved by the board.

Can Anyone Own a Pharmacy in California? Pharmacy License, Permits, and the California Pharmacy Law

License is a very important aspect of owning a pharmacy in California. Failure to accomplish the pharmacy licenses, which is renewed annually, will affect the business’ continuous operation.

Can Anyone Own a Pharmacy in California or is a License Required for Every Pharmacy Owned by a Specific Person?

If you want to branch your pharmacy out to other locations, a license shall be required for each pharmacy owned or operated by a specific person. A separate license shall be required for each of the premises of any person operating a pharmacy in more than one location.

Can I Transfer the License to Anyone I Like or Can a Non-pharmacist Own a Pharmacy in California?

In case you decide to give up your pharmacy business to a new owner for any reason, the board may, by regulation, determine the circumstances under which a license may be transferred.

California Pharmacy Law on Temporary Permit to Operate

The Pharmacy board may, at its discretion, issue a temporary permit upon the conditions and for any periods of time as the board determines to be in the public interest. A temporary permit fee shall be required in an amount established by the board as specified in subdivision (a) of Section 4400.

How Long Will a Temporary Permit Last?

When needed to protect public safety, a temporary permit may be issued for a period not to exceed 180 days and may be issued subject to terms and conditions the board deems necessary. If the board determines a temporary permit was issued by mistake or denies the application for a permanent license or registration, the temporary license or registration shall terminate upon either personal service of the notice of termination upon the permitholder or service by certified mail, return receipt requested, at the permitholder’s address of record with the board, whichever comes first.

Neither for purposes of retaining a temporary permit nor for purposes of any disciplinary or license denial proceeding before the board shall the temporary permit holder be deemed to have a vested property right or interest in the permit.

Setting Up a Mobile Pharmacy

The pharmacy board may allow the temporary use of a mobile pharmacy when a pharmacy is destroyed or damaged, the mobile pharmacy is necessary to protect the health and safety of the public, and the following conditions are met:

(1) The mobile pharmacy shall provide services only on or immediately contiguous to the site of the damaged or destroyed pharmacy.

(2) The mobile pharmacy is under the control and management of the pharmacist-in-charge of the pharmacy that was destroyed or damaged.

(3) A licensed pharmacist is on the premises while drugs are being dispensed.

(4) Reasonable security measures are taken to safeguard the drug supply maintained in the mobile pharmacy.

(5) The pharmacy operating the mobile pharmacy provides the board with records of the destruction of, or damage to, the pharmacy and an expected restoration date.

(6) Within three calendar days of restoration of the pharmacy services, the board is provided with notice of the restoration of the permanent pharmacy.

(7) The mobile pharmacy is not operated for more than 48 hours following the restoration of the permanent pharmacy.

How to Start a Pharmacy Business in California?

Knowing all the rules and regulations is just the beginning. The next thing you need to focus on is how to start a pharmacy business in California. The setting-up part can be a complicated course even if you have familiarized yourself with the California Pharmacy laws. There are small and huge details that you may encounter along the way especially if you do not have a legal backup.

Give Your Pharmacy a Business Name

Decide what name you want to give your pharmacy or company and make sure it includes “Corporation” or “Incorporated” at the end. You can use a different name but you need to apply for a Fictitious Business Name.

Can Anyone Own a Pharmacy in California? Nope! Register as a Professional Corporation

Pharmacy owners in California operate as a Professional Corporation because they cannot do so as an LLC (limited liability company). The application is filed at the Secretary of State office. It can be done in person, online, or by mail, with a corresponding application fee.

Compared to traditional businesses operating as LLCs, professional corporations are covered by stricter licensing requirements.

Assign a licensed pharmacist to manage your pharmacy

In compliance with section 4113 of Business and Professions Code, you must designate a licensed pharmacist to handle the day-to-day operation. Pick a pharmacist who will make sure that the rules and regulations are followed.

Make Setting Up Your Pharmacy Business a Breeze with the Help of an Experienced Attorney

At this point, you may be past wondering can anyone own a pharmacy in California. However, what you already know may not be enough. There are always details that you could miss or steps you might inadvertently skip.

A fool-proof way to avoid any delays due to lack of requirements or failure to comply is to hire a qualified business attorney to help you get through the painstaking application procedures. Incorporation Attorney’s stable of skilled and experienced business lawyers will not only explain to you the laws but also handle the complicated paperwork for you.

With our top-notch service, you can pour your precious time and energy working on your business in-depth and thinking about how you can manage your pharmacy efficiently and legally. We can help you from start to finish. And with our array of legal services, we can offer you more assistance in other areas.

We will sit down with you as soon as you are ready. Just give us a call and we will be on it!