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HomeBusiness and Professions CodeDiv. 2Ch. 9Art. 7§ 4111 Pharmacy Ownership Restrictions

§ 4111 Pharmacy Ownership Restrictions

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4111 Pharmacy Ownership Restrictions

Key Takeaways

  • •Doctors and people who can write prescriptions usually can't own or run a pharmacy.
  • •If a doctor or someone they share money with tries to own a pharmacy, they might get denied.
  • •Hospitals can still have their own pharmacies inside them.
  • •Some old health plans and special pharmacists can still own pharmacies even if they are doctors.

Example

A doctor wants to open a pharmacy next to their clinic.

The law says the doctor can't own the pharmacy because they write prescriptions. They would have to get someone else who isn't a doctor to own it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 4111 Pharmacy Ownership Restrictions

(a) Except as otherwise provided in subdivision (b), (d), or (e), the board shall not issue or renew a license to conduct a pharmacy to any of the following: (1) A person or persons authorized to prescribe or write a prescription, as specified in Section 4040, in the State of California. (2) A person or persons with whom a person or persons specified in paragraph (1) shares a community or other financial interest in the permit sought. (3) Any corporation that is controlled by, or in which 10 percent or more of the stock is owned by a person or persons prohibited from pharmacy ownership by paragraph (1) or (2). (b) Subdivision (a) shall not preclude the issuance of a permit for an inpatient hospital pharmacy to the owner of the hospital in which it is located. (c) The board may require any information the board deems is reasonably necessary for the enforcement of this section. (d) Subdivision (a) shall not preclude the issuance of a new or renewal license for a pharmacy to be owned or owned and operated by a person licensed on or before August 1, 1981, under the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code) and qualified on or before August 1, 1981, under subsection (d) of Section 1310 of Title XIII of the federal Public Health Service Act, as amended, whose ownership includes persons defined pursuant to paragraphs (1) and (2) of subdivision (a). (e) Subdivision (a) shall not preclude the issuance of a new or renewal license for a pharmacy to be owned or owned and operated by a pharmacist authorized to issue a drug order pursuant to Section 4052.1, 4052.2, or 4052.6. (Amended by Stats. 2013, Ch. 469, Sec. 13. (SB 493) Effective January 1, 2014.)

Last verified: January 22, 2026

Key Terms

ownershipcorporationenforcementprescriptionhospitalpatienthealthpharmacy

Related Statutes

  • § 4001 Pharmacy Board Composition
  • § 4076.5 Prescription Drug Label Standards
  • § 4076.8 Accessible Prescription Label Requirements
  • § 4113.1 Pharmacy Medication Error Reporting
  • § 4113.5 Pharmacist Workplace Assistance Requirement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 4111.
View Official Source