SECTION 229.249. Licensure Fees

(a) License fee. Except as provided by §229.245 of this title (relating to Exemption), no person may operate or conduct business as a wholesale distributor of nonprescription drugs without first obtaining a license from the department. All applicants for an initial wholesale distributor of nonprescription drugs license or a renewal license shall pay a licensing fee unless otherwise exempt as provided by subsection (c) of this section. All fees are nonrefundable. Licenses are issued for two-year terms. A license shall only be issued when all past due license fees and delinquency fees are paid.

(1) In-state wholesale distributors of nonprescription drugs who are not manufacturers shall pay a two-year license fee based on the gross annual sales of all nonprescription drugs.

(A) For a wholesale distributor with gross annual nonprescription drug sales of $0 - $199,999.99, the fees are:

(i) $1,040 for a two-year license;

(ii) $1,040 for a two-year license that is amended due to a change of ownership; and

(iii) $520 for a license that is amended during the current licensure period due to minor changes.

(B) For a wholesale distributor with gross annual nonprescription drug sales of $200,000 - $19,999,999.99, the fees are:

(i) $1,690 for a two-year license;

(ii) $1,690 for a two-year license that is amended due to a change of ownership; and

(iii) $845 for a license that is amended during the current licensure period due to minor changes.

(C) For a wholesale distributor with gross annual nonprescription drug sales greater than or equal to $20 million, the fees are:

(i) $2,210 for a two-year license;

(ii) $2,210 for a two-year license that is amended due to a change of ownership; and

(iii) $1,105 for a license that is amended during the current licensure period due to minor changes.

(2) In-state wholesale distributors of nonprescription drugs who are not manufacturers and who also are required to be licensed as a device distributor under §229.439(a) of this title (relating to Licensure Fees) or as a wholesale food distributor under §229.182(a)(3) of this title (relating to Licensing/Registration Fee and Procedures) shall pay a combined two-year license fee for each place of business. License fees are based on the combined gross annual sales of these regulated products (foods, drugs, and/or devices).

(A) For each place of business having combined gross annual sales of $0 - $199,999.99, the fees are:

(i) $520 for a two-year license;

(ii) $520 for a two-year license that is amended due to a change of ownership; and

(iii) $260 for a license that is amended during the current licensure period due to minor changes.

(B) For each place of business having combined gross annual sales of $200,000 - $499,999.99, the fees are:

(i) $780 for a two-year license;

(ii) $780 for a two-year license that is amended due to a change of ownership; and

(iii) $390 for a license that is amended during the current licensure period due to minor changes.

(C) For each place of business having combined gross annual sales of $500,000 - $999,999.99, the fees are:

(i) $1,040 for a two-year license;

(ii) $1,040 for a two-year license that is amended due to a change of ownership; and

(iii) $520 for a license that is amended during the current licensure period due to minor changes.

(D) For each place of business having combined gross annual sales of $1 million - $9,999,999.99, the fees are:

(i) $1,300 for a two-year license;

(ii) $1,300 for a two-year license that is amended due to a change of ownership; and

(iii) $650 for a license that is amended during the current licensure period due to minor changes.

(E) For each place of business having combined gross annual sales greater than or equal to $10 million, the fees are:

(i) $1,950 for a two-year license;

(ii) $1,950 for a two-year license that is amended due to a change of ownership; and

(iii) $975 for a license that is amended during the current licensure period due to minor changes.

(3) In-state wholesale distributors of nonprescription drugs who are manufacturers shall pay a two-year license fee based on the gross annual sales of all nonprescription drugs.

(A) For a wholesale distributor with gross annual nonprescription drug sales of $0 - $199,999.99, the fees are:

(i) $1,040 for a two-year license;

(ii) $1,040 for a two-year license that is amended due to a change of ownership; and

(iii) $520 for a license that is amended during the current licensure period due to minor changes.

(B) For a wholesale distributor with gross annual nonprescription drug sales of $200,000 - $1,999,999.99, the fees are:

(i) $1,235 for a two-year license;

(ii) $1,235 for a two-year license that is amended due to a change of ownership; and

(iii) $620 for a license that is amended during the current licensure period due to minor changes.

(C) For a wholesale distributor with gross annual nonprescription drug sales of $2 million to $9,999,999.99 the fees are:

(i) $1,560 for a two-year license;

(ii) $1,560 for a two-year license that is amended due to a change of ownership; and

(iii) $780 for a license that is amended during the current licensure period due to minor changes.

(D) For a wholesale distributor with gross annual nonprescription drug sales of $10 million to $19,999,999.99 the fees are:

(i) $1,885 for a two-year license;

(ii) $1,885 for a two-year license that is amended due to a change of ownership; and

(iii) $940 for a license that is amended during the current licensure period due to minor changes.

(E) For a wholesale distributor with gross annual nonprescription drug sales greater than or equal to $20 million, the fees are:

(i) $2,210 for a two-year license;

(ii) $2,210 for a two-year license that is amended due to a change of ownership; and

(iii) $1,105 for a license that is amended during the current licensure period due to minor changes.

(4) Out-of-state wholesale distributors of nonprescription drugs shall pay a two-year license fee based on all gross annual sales of nonprescription drugs delivered into Texas.

(A) For each wholesale distributor with gross annual nonprescription drug sales of $0 - $19,999,999.99, the fees are:

(i) $1,300 for a two-year license;

(ii) $1,300 for a two-year license that is amended due to a change of ownership; and

(iii) $650 for a license that is amended during the current licensure period due to minor changes.

(B) For each wholesale distributor with gross annual nonprescription drug sales of greater than or equal to $20 million, the fees are:

(i) $1,950 for a two-year license;

(ii) $1,950 for a two-year license that is amended due to a change of ownership; and

(iii) $975 for a license that is amended during the current licensure period due to minor changes.

(b) Proration of license fees. A person that has more than one place of business may request a one-time proration of the license fees when applying for a license for each new place of business. Upon approval by the department, the license for the new place of business will have a renewal date that is the same as the firm's other licensed places of business.

(c) Exemption from license fees. A person is exempt from the license fees required by this section if the person is a charitable organization, as described in the Internal Revenue Code of 1986, §501(c)(3), or a nonprofit affiliate of the organization, to the extent otherwise permitted by law.

Source Note: The provisions of this §229.249 adopted to be effective February 1, 2007, 32 TexReg 315; amended to be effective November 14, 2019, 44 TexReg 6897