(a) For the purposes of the Act, §565.001(a)(2), "unprofessional conduct" is defined as engaging in behavior or committing an act that fails to conform with the standards of the pharmacy profession, including, but not limited to, criminal activity or activity involving moral turpitude, dishonesty, or corruption. This conduct shall include, but not be limited to:
  (1) dispensing a prescription drug pursuant to a forged, altered, or fraudulent prescription;
  (2) dispensing a prescription drug order pursuant to a prescription from a practitioner as follows:
    (A) the dispensing of a prescription drug order not issued for a legitimate medical purpose or in the usual course of professional practice shall include the following:
      (i) dispensing controlled substances or dangerous drugs to an individual or individuals in quantities, dosages, or for periods of time which grossly exceed standards of practice, approved labeling of the federal Food and Drug Administration, or the guidelines published in professional literature; or
      (ii) dispensing controlled substances or dangerous drugs when the pharmacist knows or reasonably should have known that the controlled substances or dangerous drugs are not necessary or required for the patient's valid medical needs or for a valid therapeutic purpose;
    (B) the provisions of subparagraph (A)(i) and (ii) of this paragraph are not applicable for prescriptions dispensed to persons with intractable pain in accordance with the requirements of the Intractable Pain Treatment Act, or to a narcotic drug dependent person in accordance with the requirements of Title 21, Code of Federal Regulations, §1306.07, and the Regulation of Narcotic Drug Treatment Programs Act;
  (3) delivering or offering to deliver a prescription drug or device in violation of this Act, the Controlled Substances Act, the Dangerous Drug Act, or rules promulgated pursuant to these Acts;
  (4) acquiring or possessing or attempting to acquire or possess prescription drugs in violation of this Act, the Controlled Substances Act, the Dangerous Drug Act, or rules adopted pursuant to these Acts;
  (5) distributing prescription drugs or devices to a practitioner or a pharmacy not in the course of professional practice or in violation of this Act, the Controlled Substances Act, Dangerous Drug Act, or rules adopted pursuant to these Acts;
  (6) refusing or failing to keep, maintain or furnish any record, notification or information required by this Act, the Controlled Substances Act, the Dangerous Drug Act, or rules adopted pursuant to these Acts;
  (7) refusing an entry into any pharmacy for any inspection authorized by the Act;
  (8) making false or fraudulent claims to third parties for reimbursement for pharmacy services;
  (9) operating a pharmacy in an unsanitary manner;
  (10) making false or fraudulent claims concerning any drug;
  (11) persistently and flagrantly overcharging for the dispensing of controlled substances;
  (12) dispensing controlled substances or dangerous drugs in a manner not consistent with the public health or welfare;
  (13) failing to practice pharmacy in an acceptable manner consistent with the public health and welfare;
  (14) refilling a prescription upon which there is authorized "prn" refills or words of similar meaning, for a period of time in excess of one year from the date of issuance of such prescription;
  (15) engaging in any act, acting in concert with another, or engaging in any conspiracy resulting in a restraint of trade, coercion, or a monopoly in the practice of pharmacy;
  (16) sharing or offering to share with a practitioner compensation received from an individual provided pharmacy services by a pharmacist;
  (17) obstructing a board employee in the lawful performance of his or her duties of enforcing the Act;
  (18) engaging in conduct that subverts or attempts to subvert any examination or examination process required for a license to practice pharmacy. Conduct that subverts or attempts to subvert the pharmacist licensing examination process includes, but is not limited to:
    (A) copying, retaining, repeating, or transmitting in any manner the questions contained in any examination administered by the board or questions contained in a question pool of any examination administered by the board;
    (B) copying or attempting to copy another candidate's answers to any questions on any examination required for a license to practice pharmacy;
    (C) obtaining or attempting to obtain confidential examination materials compiled by testing services or the board;
    (D) impersonating or acting as a proxy for another in any examination required for a license to practice pharmacy;
    (E) requesting or allowing another to impersonate or act as a proxy in any examination required for a license to practice pharmacy; or
    (F) violating or attempting to violate the security of examination materials or the examination process in any manner;
  (19) violating the provisions of an agreed board order or board order;
  (20) dispensing a prescription drug while not acting in the usual course of professional pharmacy practice;
  (21) failing to provide or providing false or fraudulent information on any application, notification, or other document required under this Act, the Dangerous Drug Act, the Controlled Substances Act, or rules adopted pursuant to those Acts;
  (22) using abusive, intimidating, or threatening behavior toward a board member or employee during the performance of such member's or employee's lawful duties;
  (23) failing to establish or maintain effective controls against the diversion or loss of controlled substances or dangerous drugs, loss of controlled substance or dangerous drug records, or failing to ensure that controlled substances or dangerous drugs are dispensed in compliance with state and federal laws or rules, by a pharmacist who is:
    (A) a pharmacist-in-charge of a pharmacy;
    (B) a sole proprietor or individual owner of a pharmacy;
    (C) a partner in the ownership of a pharmacy; or
    (D) a managing officer of a corporation, association, or joint-stock company owning a pharmacy. A pharmacist, as set out in subparagraphs (B) - (D) of this paragraph, is equally responsible with an individual designated as pharmacist-in-charge of such pharmacy to ensure that employee pharmacists and the pharmacy are in compliance with all state and federal laws or rules relating to controlled substances or dangerous drugs;
  (24) failing to correct the issues identified in a warning notice by the specified time;
  (25) being the subject of civil fines imposed by a federal or state court as a result of violating the Controlled Substances Act or the Dangerous Drug Act;
  (26) selling, purchasing, or trading or offering to sell, purchase, or trade prescription drug samples; provided, however, this paragraph does not apply to:
    (A) prescription drugs provided by a manufacturer as starter prescriptions or as replacement for such manufacturer's out-dated drugs;
    (B) prescription drugs provided by a manufacturer in replacement for such manufacturer's drugs that were dispensed pursuant to written starter prescriptions; or
    (C) prescription drug samples possessed by a pharmacy of a health care entity which provides health care primarily to indigent or low income patients at no or reduced cost and if:
      (i) the samples are possessed in compliance with the Prescription Drug Marketing Act of 1987;
      (ii) the pharmacy is owned by a charitable organization described in the Internal Revenue Code of 1986, §501(c)(3), or by a city, state or county government; and
      (iii) the samples are for dispensing or provision at no charge to patients of such health care entity;
  (27) selling, purchasing, or trading or offering to sell, purchase, or trade prescription drugs:
    (A) sold for export use only;
    (B) purchased by a public or private hospital or other health care entity; or
    (C) donated or supplied at a reduced price to a charitable organization described in the Internal Revenue Code of 1986, §501(c)(3);
    (D) provided that subparagraphs (A) - (C) of this paragraph do not apply to:
      (i) the purchase or other acquisition by a hospital or other health care entity which is a member of a group purchasing organization or from other hospitals or health care entities which are members of such organization;
Cont'd...
(ii) the sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug by an organization described in subparagraph (C) of this paragraph to a nonprofit affiliate of the organization to the extent otherwise permitted by law;
      (iii) the sale, purchase or trade of a drug or an offer to sell, purchase, or trade a drug among hospitals or other health care entities which are under common control;
      (iv) the sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug for emergency medical reasons including the transfer of a drug between pharmacies to alleviate temporary shortages of the drug arising from delays in or interruptions of regular distribution schedules; or
      (v) the dispensing of a prescription drug pursuant to a valid prescription drug order to the extent otherwise permitted by law;
  (28) selling, purchasing, or trading, or offering to sell, purchase, or trade:
    (A) misbranded prescription drugs; or
    (B) prescription drugs beyond the manufacturer's expiration date;
  (29) failing to respond and to provide all requested records within the time specified in an audit of continuing education records under §295.8 of this title (relating to Continuing Education Requirements); or
  (30) allowing an individual whose license to practice pharmacy, either as a pharmacist or a pharmacist-intern, or a pharmacy technician/trainee whose registration has been disciplined by the board, resulting in the license or registration being revoked, canceled, retired, surrendered, denied or suspended, to have access to prescription drugs in a pharmacy.
(b) For the purposes of the Act, §565.001(a)(3), the term "gross immorality" shall include, but not be limited to:
  (1) conduct which is willful, flagrant, and shameless, and which shows a moral indifference to standards of the community;
  (2) engaging in an act which is a felony;
  (3) engaging in an act that constitutes sexually deviant behavior; or
  (4) being required to register with the Department of Public Safety as a sex offender under Chapter 62, Code of Criminal Procedure.
(c) For the purposes of the Act, §565.001(a)(5), the terms "fraud," "deceit," or "misrepresentation" in the practice of pharmacy or in seeking a license to act as a pharmacist shall be defined as follows:
  (1) "Fraud" means an intentional perversion of truth for the purpose of inducing another in reliance upon it to part with some valuable thing belonging to him, or to surrender a legal right, or to issue a license; a false representation of a matter of fact, whether by words or by conduct, by false or misleading allegations, or by concealment of that which should have been disclosed, which deceives or is intended to deceive another.
  (2) "Deceit" means the assertion, as a fact, of that which is not true by any means whatsoever to deceive or defraud another.
  (3) "Misrepresentation" means a manifestation by words or other conduct which is a false representation of a matter of fact.

Source Note: The provisions of this §281.7 adopted to be effective December 30, 1998, 23 TexReg 13073; amended to be effective December 27, 2000, 25 TexReg 12688; amended to be effective March 25, 2007, 32 TexReg 1507; amended to be effective September 9, 2012, 37 TexReg 6915; amended to be effective December 6, 2015, 40 TexReg 8763; amended to be effective June 20, 2019, 44 TexReg 2945; amended to be effective March 5, 2020, 45 TexReg 1419