Yesterday the Maryland Board of Pharmacy posted an updated surety bond form for the state’s wholesale distributors.
Health Occupations Article, 12-6C-05(f), Annotated Code of Maryland, requires applicants to file a surety bond with the Maryland Board of Pharmacy before getting licensed. HB 1195 modified the previous law that had required all wholesale distributors to file a $100,000 Maryland surety bond or alternative form of financial security. The recently enacted law now requires the bonding amount to be based on the distributor’s annual gross receipts.
If wholesale distributor’s receipts from the previous tax year were $10 million or more, a $100,000 surety bond is required. If the receipts total less than $10 million, the wholesale distributor only needs to file a $50,000 bond. The reasoning behind HB 1195 was to give smaller distributors more access to bonding as a $50,000 surety bond is easier to qualify for than a $100,000 surety bond.
According to the bond form, the purpose of the bond is to
“secure payment of any fines or penalties imposed by the Board and any fees and costs incurred by the State of Maryland relating to the permit that are authorized under State law; and are not paid by the permit holder within 30 days after the fines, penalties, fees or costs become final.”
Wholesale distributors must renew the surety bond each time they reapply for their business licenses. Pharmacy warehouses must only be bonded if they are engaged in wholesale distribution.
Wholesale distributors in Maryland will submit completed surety bond forms to
Maryland Board of Pharmacy
4201 Patterson Ave.
Baltimore, MD 21215
For additional information on surety bonds or other licensing requirements, the Maryland Board of Pharmacy can be reached by phone at 800-542-4964 or by e-mail at [email protected].
Call SuretyBonds.com today at 1 (800)-308-4358 to get a free quote on your Maryland surety bond.