State requirements · Texas

Texas customer license requirements for distributors

What a distributor of prescription drugs, medical devices, or medical supplies has to confirm about a Texas customer before shipping, and what it has to keep on file.

By Workd, makers of WorkdID. Updated .

Short answer

Before a manufacturer or wholesale distributor sells prescription drugs to a customer it does not already know, it must check that the customer is legally allowed to receive them. The customer must be authorized by DSHS, by the right state licensing board, or by federal law. Pedigree statements must be kept by both the purchaser and the wholesale distributor for at least three years. WorkdID by Workd checks Texas pharmacy and medical licenses, NPI records, and DEA registrations for every account, every day, and keeps a dated record of each check.

Customer verificationMust verify the buyer's license
Records to keep3 years
Separate device or DME distributor licenseYes

What Texas requires before you ship

Before a manufacturer or wholesale distributor sells prescription drugs to a customer it does not already know, it must check that the customer is legally allowed to receive them. The customer must be authorized by DSHS, by the right state licensing board, or by federal law.

Who counts as an authorized buyer: A person legally authorized by DSHS or the appropriate state licensing authority to receive prescription drugs, or a person authorized by federal law to receive them.

"must verify the person is legally authorized by the department or the appropriate state licensing authority to receive the prescription drugs" 25 Tex. Admin. Code § 229.429(f)(2)

Records to keep

Pedigree statements must be kept by both the purchaser and the wholesale distributor for at least three years. Records must be ready for inspection by DSHS or a Texas peace officer by the second business day after a request.

Source: 25 Tex. Admin. Code § 229.429(f)(3)(F)

Licenses a distributor needs in Texas

Prescription drug wholesale distributor

Wholesale distributors of prescription drugs need a DSHS license for each place of business. Out-of-state distributors that ship prescription drugs into Texas also need a Texas license. In Texas this license comes from DSHS, not the Board of Pharmacy.

Source: 25 Tex. Admin. Code § 229.424

Medical device and DME distributors

Texas requires a DSHS license to distribute or manufacture medical devices in the state, one license per place of business. Exemptions include intracompany sales only and distributing only from a place of business outside Texas. The rule makes prescription device distributors keep a record of every prescription device received and where it went. We did not find a rule limiting who a device distributor may sell to, and the rule sets no retention period for these records.

Source: 25 Tex. Admin. Code §§ 229.434, 229.435, 229.441(k)

Controlled substances

Texas law now requires DEA registration (or a DEA exemption) to manufacture or distribute controlled substances. The separate Texas DPS registration was phased out in 2016.

Source: Tex. Health & Safety Code § 481.061(a)

Where to look up a Texas license

Federal rules that apply in every state

How WorkdID handles Texas accounts

WorkdID by Workd checks every Texas customer you sell to against the state's pharmacy and medical boards, the NPI registry, and the DEA, every day. It flags an expiration or a board action within a day of posting, and in Workd order entry it can hold the order until your compliance team clears the account. Every check is saved with the date and the board record, so your Texas file is ready when someone asks for it.

Other states

Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · South Dakota · Tennessee · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming

Questions distributors ask

Does Texas require distributors to verify customer licenses?

Before a manufacturer or wholesale distributor sells prescription drugs to a customer it does not already know, it must check that the customer is legally allowed to receive them. The customer must be authorized by DSHS, by the right state licensing board, or by federal law. See 25 Tex. Admin. Code § 229.429(f)(2).

What records must a distributor keep in Texas?

Pedigree statements must be kept by both the purchaser and the wholesale distributor for at least three years. Records must be ready for inspection by DSHS or a Texas peace officer by the second business day after a request. See 25 Tex. Admin. Code § 229.429(f)(3)(F).

Does Texas license medical device or DME distributors?

Texas requires a DSHS license to distribute or manufacture medical devices in the state, one license per place of business. Exemptions include intracompany sales only and distributing only from a place of business outside Texas. The rule makes prescription device distributors keep a record of every prescription device received and where it went. We did not find a rule limiting who a device distributor may sell to, and the rule sets no retention period for these records. See 25 Tex. Admin. Code §§ 229.434, 229.435, 229.441(k).

Where do I look up a Texas pharmacy or practitioner license?

Pharmacy licenses are issued by the Texas State Board of Pharmacy and physician licenses by the Texas Medical Board. Both publish a public lookup. WorkdID checks them for you every day.

See WorkdID check your own customer list.

WorkdID by Workd checks every customer license you sell to, every day, and can hold an order before it ships to an account that is out of good standing.

Talk to our AI, (248) 522-9680

The phone line is answered by Workd's AI. Thirty seconds, no form.

Related

This page explains general rules and is not legal advice. Rules change. Confirm current requirements with the state board or your counsel before relying on them.

Ready to See How AI Transforms Your Business?

Distributors from $5M to over $1B run their sales, orders, and deliveries on Workd.

Not sure where to start? Try our AI: (248) 522-9680