Closure of a Facility - Discontinuance of Business of a Board-Licensed Facility
Subsection (a) of California Code of Regulations, title 16, section 1708.2 specifies that any permit holder shall contact the Board prior to transferring or selling any dangerous drugs, devices, or hypodermics inventory as a result of termination of business or bankruptcy proceedings (individually or collectively referred to as a “closure”) and shall follow official instructions given by the Board applicable to the transaction. For purposes of section 1708.2, a “closure” includes the cessation or substantial cessation of the business.
Pursuant to Business and Professions Code section 4312, subdivision (b), a Board-licensed facility that notifies the Board of its intent to remain closed or to discontinue business must, within 10 days thereafter, arrange for the transfer of all dangerous drugs and controlled substances or dangerous devices to another licensee authorized to possess the dangerous drugs and controlled substances or dangerous devices, and the licensee transferring the dangerous drugs and controlled substances or dangerous devices shall immediately confirm in writing to the Board that the transfer has taken place. Any person who knowingly violates subdivision (b) of section 4312 is guilty of a misdemeanor. (Bus. & Prof. Code § 4335.)
In addition, a pharmacy that discontinues business must arrange for its records to be transferred to another Board-licensed facility, unless a waiver allowing for the records to be stored at another location is requested from and granted by the Board. (Bus. & Prof. Code § 4333.)
Submit the following when reporting a closure of Board-licensed facility to the Board:
- Discontinuance of Business form (17M-8 rev. 4/2026)
- Original wall certificate and renewal license
- Copy of the dangerous drug and/or dangerous device inventory.
Additional Requirements Applicable to Pharmacy Closures, Including a Nonresident Pharmacy
Subsection (b) of California Code of Regulations, title 16, section 1708.2 specifies that, in addition to the requirements in subsection (a), a pharmacy that shall cease operations due to a closure shall complete the following:
- At least 45 days in advance of the closure, provide written notice to patients that have received a prescription within the last year, in a form in which the pharmacy regularly communicates or advertises to its patients. At a minimum, this notice shall include:
- The name of the patient and if one exists and is known to the pharmacy, the name of the legal representative of the patient,
- The name and physical address of the pharmacy closure,
- The name of the pharmacy where patient records will be transferred and maintained, and
- Information on how to request a prescription transfer prior to closure of the pharmacy.
- Reverse all prescriptions for which reimbursement was sought but the prescriptions are not picked up by patients.
- Provide the Board with a copy of the notice described in item 1 above.
- Post a written notice of the closure, which shall include the planned closure date, in a conspicuous location at the pharmacy's entrance.
The following pharmacies are exempt from the requirements of subsection (b) of section 1708.2:
- A general acute care hospital pharmacy that is owned by a health facility as defined in section 1250 of the Health and Safety Code; and
- A licensed correctional pharmacy dispensing only to patients of the California Department of Corrections and Rehabilitation.
The owner of the licensed facility shall be responsible for compliance with the requirements of section 1708.2. The owner, or the pharmacist-in-charge, if available, shall certify compliance with the requirements in section 1708.2. In the event the pharmacist-in-charge is no longer available, the owner must certify the compliance, along with a pharmacist retained to perform these functions. (Cal. Code Regs., tit. 16, § 1708.2(b)(4).)
NOTE: A pharmacy ceasing operations due to a closure may have additional obligations (including an obligation to provide written notice of the closure to employees affected by the closure) under Chapter 42 of Division 8 of the Business and Professions Code (Bus. & Prof. Code §§ 22949.92 - 22949.92.2). Pharmacies are advised to consult these provisions to determine their applicability in any given case.