225 ILCS 120/25.7: Virtual wholesale distributor licensing requirements.

(Section scheduled to be repealed on January 1, 2028)

(a) Every virtual wholesale distributor that engages in virtual drug distribution of prescription drugs shall be licensed by the Department. A virtual wholesale distributor shall only contract with entities licensed under this Act to take physical possession of prescription drugs if the prescription drugs are being shipped into the State.

(b) Each applicant for licensure as a virtual wholesale distributor under this Act shall submit the following information to the Department:

(1) the name, full business address, and telephone number of the applicant;

(2) all trade or business names used by the applicant;

(3) addresses, email addresses, telephone numbers, and the names of contact persons for all facilities used by the applicant for the storage, handling, and distribution of prescription drugs;

(4) the applicant's type of ownership or operation, such as a partnership, corporation, or sole proprietorship;

(5) the name of each person with an ownership or operation interest in the applicant, including the following:

(A) if the applicant is a natural person, the name of the person;

(B) if the applicant is a partnership, the name of each partner and the name of the partnership;

(C) if the applicant is a corporation, the name and title of each person who owns 5% or more of its stock and each corporate officer and director and the name of the state of incorporation;

(D) if the applicant is a sole proprietorship, the full name of the sole proprietor and the name of the business entity and the state of organization;

(E) if the applicant is a limited liability company, the name and title of each member or manager and the name of the business entity and the state of organization;

(F) if the applicant is a limited liability partnership, the name and title of each partner and the name of the partnership and the state of organization; and

(G) if the applicant is a limited partnership, the name and title of each partner and the name of the partnership and the state of organization;

(6) a list of all licenses and permits issued to the applicant by any other state that authorizes the applicant to purchase or facilitate the distribution of prescription drugs;

(7) minimum liability insurance and other insurance as defined by rule;

(8) the name and license number of the third-party logistics provider who provides warehouse and shipping services to the applicant; and

(9) any additional information required by the Department.

(c) A virtual wholesale distributor shall ensure that any licensed entity providing distribution services to the virtual wholesale distributor complies with the following:

(1) the licensed entity is in compliance with all rules related to storage and distribution of prescription drugs;

(2) the licensed entity has designated a representative who is at least 21 years of age and who has adequate education, experience, and training to be employed by the licensed entity full time in a managerial level position and to be actively involved in and aware of the actual daily operation of the virtual wholesale distributor;

(3) the licensed entity contracts with carriers that provide adequate security to guard against in-transit losses; and

(4) the licensed entity is compliant with Title II of the federal Drug Quality and Security Act.

(d) A virtual wholesale distributor shall not operate out of a location that is a residence or personal dwelling.