Board sends proposed changes on 'common ownership' definitions back for redrafting after industry concerns

The Texas State Board of Pharmacy directed staff to return a proposed amendment that would define "common ownership" among pharmacies to the proposed stage for redrafting after hearing concerns from major health systems and chain pharmacy representatives.

John Griffith presented proposed definitions that would define "common ownership" as "two or more pharmacies with an identical owner of record with the board" and define "owner of record" as the direct owner listed on a pharmacy's license application. Several commenters raised the concern that this narrower definition could impose burdens by forcing pharmacies to list a corporate parent or otherwise create discrepancies between a pharmacy's board license application and other public filings (Secretary of State, Comptroller, IRS).

Janae (Janu) Philip, director of pharmacy affairs for Walgreens, told the board that the narrower drafting could create unintended burdens where ownership exists at different corporate levels and suggested clarifying language to include ownership by a legal parent, subsidiary or affiliate. She said the change should not create additional training or notification burdens for licensees that routinely operate under larger corporate structures. Texas Health Resources also submitted written concerns about the effect on hospital systems. The board instructed staff to revisit the language and return the rule to the proposed stage with alternative wording that captures parent/subsidiary/affiliate relationships without increasing licensee burdens.

Board staff were asked to consult the business code and other drafting conventions to find language that accomplishes the board’s intent while minimizing regulatory disruption; the item will be re‑proposed for public comment after staff redraft.