What Happened
On November 12, the Kentucky Attorney General (AG) issued a formal opinion, concluding that the Kentucky Board of Pharmacy lacks the authority to regulate nonresident pharmacists beyond what is specified in KRS Chapter 315. The board cannot mandate Kentucky licensure for nonresident pharmacists, except for the pharmacist-in-charge per KRS 315.0351(1)(g). Therefore, the board’s proposed amendment to 201 KAR 2:030, which would require all out-of-state pharmacists filling prescriptions for Kentucky residents to be licensed in Kentucky, exceeds the board’s statutory authority.
The Details
On April 15, the Kentucky Board of Pharmacy proposed new rules requiring nonresident pharmacists to obtain a specific license to serve Kentucky citizens.[1] The new rules mandated an active license, a National Association of Boards of Pharmacy Verify credential, and a fingerprint-supported criminal record check, with exemptions from certain exams and education requirements.[2] Additionally, nonresident pharmacies were required to ensure all assisting pharmacists held a Kentucky license and met specific availability requirements for the pharmacist-in-charge.[3] A public hearing was scheduled for June 25, with a June 30, deadline for comments.[4]
In response to a request by Representative Derek Lewis of the Kentucky House of Representatives (who also serves as co-chair to the House’s Administrative Regulation Review Subcommittee), on November 12, the Kentucky AG issued a formal opinion stating the Kentucky Board of Pharmacy has no authority, except as described in KRS Chapter 315, to regulate nonresident pharmacists.[5] In other words, the board cannot mandate Kentucky licensure for nonresident pharmacists, except for pharmacists-in-charge.[6] Therefore, the board’s proposed amendment to 201 KAR 2:030 exceeds the board’s statutory authority.[7] The opinion concluded that the board’s broader claim to regulate all nonresident pharmacists lacks clear legislative authorization and is unsupported by the statutory text or canons of construction.[8]
Why It Matters
The ruling by the AG’s office carries significant implications beyond the immediate determination that the Kentucky Board of Pharmacy lacks the authority to mandate in-state licensing for nonresident pharmacists. This decision establishes a precedent that the board must operate strictly within the boundaries of its legislatively granted powers. Consequently, this reduces the regulatory burden on out-of-state pharmacists and pharmacies, potentially facilitating easier access to medications for Kentucky residents from out-of-state sources.
Interestingly, the proposal by the Kentucky Board of Pharmacy to require all nonresident pharmacists to hold a Kentucky pharmacist license is highly unusual. Currently, only a minority of states (approximately 15-20) mandate that the pharmacist-in-charge of a nonresident pharmacy be licensed in that state. This highlights the exceptional nature of Kentucky’s proposed regulation and underscores the significance of the AG’s ruling in maintaining regulatory consistency.
While the ruling limits the board’s regulatory reach, it also raises questions about how best to ensure the safety and quality of pharmacy services provided to Kentucky residents by nonresident pharmacists. The board and other stakeholders may need to explore alternative mechanisms to achieve these public health goals within the existing legal framework.
Overall, the ruling underscores the necessity for clear legislative mandates when expanding regulatory authority and may influence future legislative and regulatory actions in Kentucky and beyond.
[1] 201 Ky. Admin. Regs. 2:030 (2024), available at https://pharmacy.ky.gov/statutesandregulations/Documents/201%20KAR%202%20030%20file-stamped%20copy.pdf.
[2] Id. at 2.
[3] 201 Ky. Admin. Regs. 2:465, 1-3 (2023), available at https://pharmacy.ky.gov/statutesandregulations/Documents/201%20KAR%202%20465%20File%20Stampd%20Copy.pdf.
[4] 201 Ky. Admin. Regs. 2:050, 8 (2023), available at https://pharmacy.ky.gov/statutesandregulations/Documents/201%20KAR%202%20050%20File%20Stamped%20Copy.pdf.
[5] Ky. Op. Att’y Gen. 24-11 (2024), available at https://www.ag.ky.gov/Resources/Opinions/Opinions/Opinion%20of%20the%20Attorney%20General%2024-11.pdf.
[6] Id. at 4.
[7] Id. at 3-4, 6.
[8] Id. at 6.
Troutman Pepper State Attorneys General Team
Ashley Taylor – Co-leader and Firm Vice Chair Ashley is co-leader of the firm’s nationally ranked State Attorneys General practice, vice chair of the firm, and a partner in its Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He helps his clients navigate the complexities involved with multistate attorneys general investigations and enforcement actions, federal agency actions, and accompanying litigation. |
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Clay Friedman – Co-leader Clayton is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice, multidisciplinary teams with decades of experience crafting effective strategies to help deter or mitigate the risk of enforcement actions and litigation. |
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Judy Jagdmann Judy is a partner in the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) practice, based in the Richmond office. She brings experience serving as chair and commissioner of the Virginia State Corporate Commission (VSCC) from 2006 through 2022, which includes regulating the utilities, insurance, banking, and securities industries. She also served as Virginia’s attorney general from 2005-2006. |
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Stephen Piepgrass Stephen leads the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He focuses his practice on enforcement actions, investigations, and litigation. Stephen primarily represents clients engaging with, or being investigated by, state attorneys general and other state or local governmental enforcement bodies, including the CFPB and FTC, as well as clients involved with litigation, with a particular focus on heavily regulated industries. |
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Michael Yaghi Michael is a partner in the firm’s State Attorneys General and Regulatory Investigations, Strategy + Enforcement (RISE) Practice Groups, nationwide teams that advise clients on consumer protection enforcement matters and other regulatory issues. |
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Samuel E. “Gene” Fishel Gene is a member of the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) practice, based in the Richmond office. He brings extensive regulatory experience, having most recently served as senior assistant attorney general and chief of the Computer Crime Section in the Office of the Attorney General of Virginia, and as special assistant U.S. attorney in the Eastern District of Virginia for 20 years. |
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Chuck Slemp Chuck advises clients on a wide range of complex issues that frequently involve government actions, including investigations, inquiries, regulatory matters, and litigation. With a distinguished background in the law and public service, he served as chief deputy attorney general of Virginia before joining the firm. In addition to overseeing the Department of Law and Division of Debt Collection, Chuck managed a team of attorneys who handle complex litigation and investigations. He also directed the attorney general’s legislative affairs and represented the attorney general in various capacities. |
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Tim Bado Tim is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, where he represents corporations and individuals facing potential civil and criminal exposure. Tim’s experience in government investigations, enforcement actions, and white-collar litigation spans a number of industries, including financial services, pharmaceutical, health care, and government contracting, among others. |
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Jessica Birdsong Jessica is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. She received her J.D. from the University of Richmond School of Law, magna cum laude, where she served as associate articles editor of the Journal of Law & Technology. |
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Chris Carlson Chris Carlson represents clients in regulatory, civil and criminal investigations and litigation. In his practice, Chris regularly employs his prior regulatory experience to benefit clients who are interacting with and being investigated by state attorneys general. |
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Blake R. Christopher Blake collaborates with clients on matters related to government contracting, investigations, and disputes. His senior-level government experience generates valuable insights and strategies for clients across a variety of industries. |
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Natalia Jacobo Natalia is an associate in the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) practice. She focuses her practice on two primary areas: government contracting and state attorney general work. |
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Namrata Kang Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer protection laws relating to consumer financial services and marketing and advertising. |
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Michael Lafleur Michael is an associate in the firm’s Regulatory Investigations, Strategy, and Enforcement Practice Group. Based out of the firm’s Boston office, Mike has deep experience in litigation, investigations, and other regulatory matters involving state-level regulators and state attorneys general. |
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Susan Nikdel Susan is an associate in the firm’s Consumer Financial Services Practice Group, and focuses her practice on consumer financial services matters. She has defended several of the nation’s largest and most influential financial institutions in individual and class action litigation involving the Telephone Consumer Protection Act (TCPA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and other consumer privacy statutes. |
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Lane Page Lane specializes in federal and state regulatory investigations and complex civil litigation. He focuses on representing financial institutions and other businesses, with a particular emphasis on consumer protection and fair lending issues. |
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Trey Smith Trey is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice. He focuses his practice on helping financial institutions and consumer facing companies navigate regulatory investigations and resulting litigation. |
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Daniel Waltz Daniel is a member of the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and State Attorneys General team. He counsels clients in connection with navigating complex government investigations, regulatory compliance, and transactions, involving state and federal government contracting obligations. Drawing on his broad experience as a former assistant attorney general for the state of Illinois, Daniel is a problem solver both inside and outside the courtroom. |
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Cole White Cole is a member of the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) group. He has a decade of experience working in the attorney general community, having joined the firm from the Wyoming Office of the Attorney General, where he was assistant attorney general. |
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Stephanie Kozol Stephanie is Troutman Pepper’s senior government relations manager in the state attorneys general department. |