The Alabama Board of Pharmacy has recently enacted emergency rules to utilize a non-disciplinary administrative fine schedule, marking a significant shift in how the state will handle lower-level compliance violations for pharmacies and licensees.
The change follows the passage of Act 2025-372, which requires the Board to publish clear penalty schedules for both disciplinary and non-disciplinary violations. At present, the non-disciplinary fee schedule used by the Alabama Board is only temporary and is set to expire on December 18, 2025. Pursuant to the Act, the Board is required to independently adopt and publish a permanent fee schedule that, if adopted, will go into effect on January 1, 2026. Members of the public are capable of commenting on the Proposed Rule until October 10, 2025 at 4:00 PM with a formal public hearing on the proposal set for October 15, 2025.
Irrespective of the outcome of this hearing, the passage of this Act and the subsequent non-disciplinary fee schedule proposed by the Alabama Board is an important development for pharmacies, pharmacists, and technicians statewide.
Purpose and Background
Traditionally, the Board relied on discretionary penalties when it encountered administrative shortcomings such as late filings or expired licenses. The new framework is designed to provide predictability, consistency, and fairness in enforcement. Instead of leaving penalty amounts open-ended, the non-disciplinary fine schedule gives pharmacists and pharmacies clear expectations about the consequences of minor violations that do not rise to the level of formal discipline.
This schedule also applies to a wide range of compliance obligations, with common examples including, but not limited to: (1) operating with an expired license or permit; (2) failing to complete required continuing education; and (3) deficiencies in technician training. Pharmacies and permit holders are also subject to fines for failing to report changes in employment, supervising pharmacists, designated representatives, or ownership.
Other rules address day-to-day operations such as the requirements to display licenses, maintain proper pharmacist-to-technician ratios, ensure name tags are worn, keep unauthorized individuals out of pharmacy areas, renew collaborative practice agreements, and other recordkeeping failures.
Fine Structure
The penalty amounts vary by violation and often escalate depending on how long the non-compliance continues. For example, a pharmacy operating with an expired permit in January may be fined $1,000. If the lapse extends beyond January, fines increase, sometimes with additional per-prescription penalties which, depending on the type of volume a given pharmacy dispenses, could amount to quite a significant fine for non-compliance. This staggered fine structure also serves the purposes of treating more de minimis violators less harshly than those with extended time frames of non-compliance. Furthermore, wholesalers that ship products to entities with expired permits may face a flat fine plus per-invoice penalties.
Other categories use daily accruals with capped totals. For instance, late reporting of an employment change may incur a $10 per-day fine up to a set maximum, while a delayed change of designated representative can result in a $500 fine. These structures are intended to encourage prompt correction of oversights while preventing unlimited accumulation of penalties.
While this fee schedule is designed to afford pharmacies the benefit of the doubt related to minor violations, the schedule contains important limitations such that once a licensee has been fined for a specific violation, the Board cannot issue another non-disciplinary fine for the same violation within ten years. Repeat infractions may instead be treated as disciplinary matters, potentially exposing the licensee to more severe sanctions. Frier Levitt’s previous article discussing the potential down-stream implications of disciplinary matters as it relates to provider agreements between pharmacies and PBMs can be found HERE. However, exceptions do exist for continuing education deficiencies and certain reporting failures, which may be subject to fines if repeated.
Implications for Pharmacies and Pharmacists
For Alabama pharmacies and licensees, the message is clear: proactive compliance is more important than ever. Routine tasks such as renewing licenses on time, updating technician records, and promptly reporting changes must be prioritized to avoid fines. The schedule gives operators greater certainty but also less flexibility if deadlines are missed. Smaller independent pharmacies in particular will want to ensure they have internal systems to track obligations closely.
The new non-disciplinary fine schedule represents a modernization of Alabama’s pharmacy regulatory framework. By providing transparency and consistency, it reduces uncertainty while incentivizing compliance. Licensees should familiarize themselves with the details, update their policies, and monitor the Board’s rulemaking process to ensure readiness when the permanent schedule takes effect in 2026.
For questions or assistance, contact Frier Levitt.
