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ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2953

 

pharmacy board; civil penalties.

Purpose

Caps certain civil penalties that the Arizona State Board of Pharmacy (ASPB) may issue upon a licensee or permittee within a six-month period.

Background

The ASPB is established to protect the health, safety and welfare of the citizens of Arizona by regulating the practice of pharmacy and the manufacturing, distribution, sale and storage of medications and devices. Duties of the ASPB include: 1) establishing bylaws and adopting rules that are necessary to protect the public regarding the practice of pharmacy; 2) issuing licenses to qualified applicants; 3) conducting compliance inspections of permitted facilities; 4) investigating complaints and adjudicating violations of applicable state and federal laws and rules; 5) fixing standards and requirements to register and reregister pharmacies; and 6) enforcing fingerprint clearance card requirements (A.R.S. Title 32, Chapter 18).

The ASPB may issue non-disciplinary civil penalties or delegate to the Executive Director of ASPB (Executive Director) the authority to issue non-disciplinary civil penalties to licensees or permittees who engage in specified acts or omissions without posing an imminent threat to public health or safety. The non-disciplinary penalties are prescribed by the ASPB in rule and issued using an ASPB-approved form. If a licensee or permittee fails to pay a non-disciplinary civil penalty that the ASPB has imposed on it, the ASPB must hold a hearing on the matter (A.R.S.
§ 32-1904
; A.A.C. R4-23-902).

After a formal hearing, a permittee or a permittee's employee that is found by the ASPB to be guilty of unethical conduct, to be mentally or physically unable to safely engage in employment duties or to be in violation of statute or rules is subject to one or a combination of disciplinary actions, including a civil penalty of no more than $1,000 for each violation of statute or rule (A.R.S. § 32-1927.02).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Prohibits the maximum non-disciplinary penalty issued by the ASPB from exceeding $25,000 in any six-month period.

2.   Allows the ASPB and the Executive Director to issue a non-disciplinary civil penalty that is less than the maximum non-disciplinary civil penalty by taking into account activities of the licensee, registrant or permittee over the previous 48 months.

3.   Prohibits a civil penalty imposed as a disciplinary action on a permittee that is not directly performing patient care from exceeding $25,000 in the aggregate in any six-month period.

4.   Makes technical and conforming changes.

5.   Becomes effective on the general effective date.

House Action

HHS                2/9/26        DP       12-0-0-0

3rd Read          2/23/26                  57-0-3

Prepared by Senate Research

March 13, 2026

JT/HD/ci