Bill Text: IL SB3896 | 2025-2026 | 104th General Assembly | Enrolled

---

Bill Title: Amends the Wholesale Drug Distribution Licensing Act. Defines "virtual wholesale distributor". Provides that every virtual wholesale distributor that engages in virtual drug distribution of prescription drugs shall be licensed by the Department of Financial and Professional Regulation. Provides that a virtual wholesale distributor shall only contract with entities licensed under the Act to take physical possession of prescription drugs if the prescription drugs are being shipped into the State. Sets forth requirements for applicants for a virtual wholesale distributor license. Provides that a virtual wholesale distributor shall ensure that any licensed entity providing distribution services to the virtual wholesale distributor complies with certain requirements. Provides that a virtual wholesale distributor shall not operate out of a location that is a residence or personal dwelling. Makes conforming changes in provisions concerning definitions; unlicensed practice; the expiration of a license; rules and regulations; inspection powers of a pharmacy investigator; restrictions on transactions; wholesaler licensing complaints; violations of the Act; temporary suspension of a license; home rule preemption; and drugs in storage. Makes other changes. Effective immediately.

Sponsorship: Partisan Bill (Democrat 6)

Status: (Passed) 2026-07-31 - Public Act . . . . . . . . . 104-0745 [SB3896 Detail]

Download: Illinois-2025-SB3896-Enrolled.html

---

SB3896 Enrolled LRB104 20398 AAS 33859 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Wholesale Drug Distribution Licensing Act
is amended by changing Sections 15, 26, 31, 40, 50, 56, 60, 80,
155, 185, and 200 and by adding Section 25.7 as follows:
(225 ILCS 120/15) (from Ch. 111, par. 8301-15)
(Section scheduled to be repealed on January 1, 2028)
Sec. 15. Definitions. As used in this Act:
"Address of record" means the designated address recorded
by the Department in the applicant's application file or
licensee's license file maintained by the Department's
licensure maintenance unit.
"Authentication" means the affirmative verification,
before any wholesale distribution of a prescription drug
occurs, that each transaction listed on the pedigree has
occurred.
"Authorized distributor of record" means a wholesale
distributor or virtual wholesale distributor with whom a
manufacturer has established an ongoing relationship to
distribute the manufacturer's prescription drug. An ongoing
relationship is deemed to exist between a wholesale
distributor or virtual wholesale distributor and a

SB3896 Enrolled - 2 - LRB104 20398 AAS 33859 b
manufacturer when the wholesale distributor or virtual
wholesale distributor, including any affiliated group of the
wholesale distributor or virtual wholesale distributor, as
defined in Section 1504 of the Internal Revenue Code, complies
with the following:
(1) The wholesale distributor or virtual wholesale
distributor has a written agreement currently in effect
with the manufacturer evidencing the ongoing relationship;
and
(2) The wholesale distributor or virtual wholesale
distributor is listed on the manufacturer's current list
of authorized distributors of record, which is updated by
the manufacturer on no less than a monthly basis.
"Blood" means whole blood collected from a single donor
and processed either for transfusion or further manufacturing.
"Blood component" means that part of blood separated by
physical or mechanical means.
"Board" means the State Board of Pharmacy of the
Department of Financial and Professional Regulation.
"Chain pharmacy warehouse" means a physical location for
prescription drugs that acts as a central warehouse and
performs intracompany sales or transfers of the drugs to a
group of chain or mail order pharmacies that have the same
common ownership and control. Notwithstanding any other
provision of this Act, a chain pharmacy warehouse shall be
considered part of the normal distribution channel.

SB3896 Enrolled - 3 - LRB104 20398 AAS 33859 b
"Co-licensed partner or product" means an instance where
one or more parties have the right to engage in the
manufacturing or marketing of a prescription drug, consistent
with the FDA's implementation of the Prescription Drug
Marketing Act.
"Department" means the Department of Financial and
Professional Regulation.
"Drop shipment" means the sale of a prescription drug to a
wholesale distributor or virtual wholesale distributor by the
manufacturer of the prescription drug or that manufacturer's
co-licensed product partner, that manufacturer's third-party
logistics provider, or that manufacturer's exclusive
distributor or by an authorized distributor of record that
purchased the product directly from the manufacturer or one of
these entities whereby the wholesale distributor, virtual
wholesale distributor, or chain pharmacy warehouse takes title
but not physical possession of such prescription drug and the
wholesale distributor or virtual wholesale distributor
invoices the pharmacy, chain pharmacy warehouse, or other
person authorized by law to dispense or administer such drug
to a patient and the pharmacy, chain pharmacy warehouse, or
other authorized person receives delivery of the prescription
drug directly from the manufacturer, that manufacturer's
third-party logistics provider, or that manufacturer's
exclusive distributor or from an authorized distributor of
record that purchased the product directly from the

SB3896 Enrolled - 4 - LRB104 20398 AAS 33859 b
manufacturer or one of these entities.
"Drug sample" means a unit of a prescription drug that is
not intended to be sold and is intended to promote the sale of
the drug.
"Email address of record" means the designated email
address recorded by the Department in the applicant's
application file or the licensee's license file, as maintained
by the Department's licensure maintenance unit.
"Facility" means a facility of a wholesale distributor
where prescription drugs are stored, handled, repackaged, or
offered for sale, or a facility of a third-party logistics
provider where prescription drugs are stored or handled.
"FDA" means the United States Food and Drug
Administration.
"Manufacturer" means a person licensed or approved by the
FDA to engage in the manufacture of drugs or devices,
consistent with the definition of "manufacturer" set forth in
the FDA's regulations and guidances implementing the
Prescription Drug Marketing Act. "Manufacturer" does not
include anyone who is engaged in the packaging, repackaging,
or labeling of drugs only to the extent permitted under the
Illinois Drug Reuse Opportunity Program Act.
"Manufacturer's exclusive distributor" means anyone who
contracts with a manufacturer to provide or coordinate
warehousing, distribution, or other services on behalf of a
manufacturer and who takes title to that manufacturer's

SB3896 Enrolled - 5 - LRB104 20398 AAS 33859 b
prescription drug, but who does not have general
responsibility to direct the sale or disposition of the
manufacturer's prescription drug. A manufacturer's exclusive
distributor must be licensed as a wholesale distributor under
this Act and, in order to be considered part of the normal
distribution channel, must also be an authorized distributor
of record.
"Normal distribution channel" means a chain of custody for
a prescription drug that goes, directly or by drop shipment,
from (i) a manufacturer of the prescription drug, (ii) that
manufacturer to that manufacturer's co-licensed partner, (iii)
that manufacturer to that manufacturer's virtual wholesale
distributor third-party logistics provider, or (iv) that
manufacturer to that manufacturer's exclusive distributor or
third-party logistics provider to:
(1) a pharmacy or to other designated persons
authorized by law to dispense or administer the drug to a
patient;
(2) a wholesale distributor to a pharmacy or other
designated persons authorized by law to dispense or
administer the drug to a patient;
(3) a wholesale distributor to a chain pharmacy
warehouse to that chain pharmacy warehouse's intracompany
pharmacy to a patient or other designated persons
authorized by law to dispense or administer the drug to a
patient;

SB3896 Enrolled - 6 - LRB104 20398 AAS 33859 b
(4) a chain pharmacy warehouse to the chain pharmacy
warehouse's intracompany pharmacy or other designated
persons authorized by law to dispense or administer the
drug to the patient;
(5) an authorized distributor of record to one other
authorized distributor of record to an office-based health
care practitioner authorized by law to dispense or
administer the drug to the patient; or
(6) an authorized distributor to a pharmacy or other
persons licensed to dispense or administer the drug.
"Pedigree" means a document or electronic file containing
information that records each wholesale distribution of any
given prescription drug from the point of origin to the final
wholesale distribution point of any given prescription drug.
"Person" means and includes a natural person, partnership,
association, corporation, or any other legal business entity.
"Pharmacy distributor" means any pharmacy licensed in this
State or hospital pharmacy that is engaged in the delivery or
distribution of prescription drugs either to any other
pharmacy licensed in this State or to any other person or
entity including, but not limited to, a wholesale drug
distributor engaged in the delivery or distribution of
prescription drugs who is involved in the actual,
constructive, or attempted transfer of a drug in this State to
other than the ultimate consumer except as otherwise provided
for by law.

SB3896 Enrolled - 7 - LRB104 20398 AAS 33859 b
"Prescription drug" means any human drug, including any
biological product (except for blood and blood components
intended for transfusion or biological products that are also
medical devices), required by federal law or regulation to be
dispensed only by a prescription, including finished dosage
forms and bulk drug substances subject to Section 503 of the
Federal Food, Drug and Cosmetic Act.
"Repackage" means repackaging or otherwise changing the
container, wrapper, or labeling to further the distribution of
a prescription drug, excluding that completed by the
pharmacist responsible for dispensing the product to a
patient.
"Secretary" means the Secretary of the Department of
Financial and Professional Regulation.
"Suspicious order" includes, but is not limited to, an
order of a controlled substance of unusual size, an order of a
controlled substance deviating substantially from a normal
pattern, and orders of controlled substances of unusual
frequency as defined by 21 U.S.C. 802.
"Third-party logistics provider" means anyone who
contracts with a prescription drug manufacturer or virtual
wholesale distributor to provide or coordinate warehousing,
distribution, or other services on behalf of a manufacturer or
virtual wholesale distributor, but does not take title to the
prescription drug or have general responsibility to direct the
prescription drug's sale or disposition.

SB3896 Enrolled - 8 - LRB104 20398 AAS 33859 b
"Wholesale distribution" means the distribution of
prescription drugs to persons other than a consumer or
patient, but does not include any of the following:
(1) Intracompany sales of prescription drugs, meaning
(i) any transaction or transfer between any division,
subsidiary, parent, or affiliated or related company under
the common ownership and control of a corporate entity or
(ii) any transaction or transfer between co-licensees of a
co-licensed product.
(2) The sale, purchase, distribution, trade, or
transfer of a prescription drug or offer to sell,
purchase, distribute, trade, or transfer a prescription
drug for emergency medical reasons.
(3) The distribution of prescription drug samples by
manufacturers' representatives.
(4) Drug returns, when conducted by a hospital, health
care entity, or charitable institution in accordance with
federal regulation.
(5) The sale of minimal quantities of prescription
drugs by licensed pharmacies to licensed practitioners for
office use or other licensed pharmacies.
(6) The sale, purchase, or trade of a drug, an offer to
sell, purchase, or trade a drug, or the dispensing of a
drug pursuant to a prescription.
(7) The sale, transfer, merger, or consolidation of
all or part of the business of a pharmacy or pharmacies

SB3896 Enrolled - 9 - LRB104 20398 AAS 33859 b
from or with another pharmacy or pharmacies, whether
accomplished as a purchase and sale of stock or business
assets.
(8) The sale, purchase, distribution, trade, or
transfer of a prescription drug from one authorized
distributor of record to one additional authorized
distributor of record when the manufacturer has stated in
writing to the receiving authorized distributor of record
that the manufacturer is unable to supply the prescription
drug and the supplying authorized distributor of record
states in writing that the prescription drug being
supplied had until that time been exclusively in the
normal distribution channel.
(9) The delivery of or the offer to deliver a
prescription drug by a common carrier solely in the common
carrier's usual course of business of transporting
prescription drugs when the common carrier does not store,
warehouse, or take legal ownership of the prescription
drug.
(10) The sale or transfer from a retail pharmacy, mail
order pharmacy, or chain pharmacy warehouse of expired,
damaged, returned, or recalled prescription drugs to the
original manufacturer, the originating wholesale
distributor, or a third party returns processor.
(11) The donation of drugs to the extent permitted
under the Illinois Drug Reuse Opportunity Program Act.

SB3896 Enrolled - 10 - LRB104 20398 AAS 33859 b
"Wholesale drug distributor" means anyone engaged in the
wholesale distribution of prescription drugs into, out of, or
within the State, including, without limitation,
manufacturers; repackers; own label distributors; jobbers;
private label distributors; brokers; warehouses, including
manufacturers' and distributors' warehouses; manufacturer's
exclusive distributors; and authorized distributors of record;
drug wholesalers or distributors; independent wholesale drug
traders; specialty wholesale distributors; retail pharmacies
that conduct wholesale distribution; and chain pharmacy
warehouses that conduct wholesale distribution. In order to be
considered part of the normal distribution channel, a
wholesale distributor must also be an authorized distributor
of record.
"Virtual wholesale distributor" means any person engaged
in the wholesale distribution of prescription drugs into, out
of, or within the State who holds title to, but does not take
physical possession of, prescription drugs.
(Source: P.A. 102-389, eff. 1-1-22; 102-879, eff. 1-1-23;
103-154, eff. 6-30-23.)
(225 ILCS 120/25.7 new)
Sec. 25.7. Virtual wholesale distributor licensing
requirements.
(a) Every virtual wholesale distributor that engages in
virtual drug distribution of prescription drugs shall be

SB3896 Enrolled - 11 - LRB104 20398 AAS 33859 b
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

SB3896 Enrolled - 12 - LRB104 20398 AAS 33859 b
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

SB3896 Enrolled - 13 - LRB104 20398 AAS 33859 b
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.
(225 ILCS 120/26)
(Section scheduled to be repealed on January 1, 2028)
Sec. 26. Unlicensed practice; violation; civil penalty.
(a) Any person who practices, offers to practice, attempts

SB3896 Enrolled - 14 - LRB104 20398 AAS 33859 b
to practice, or holds oneself out to practice as a wholesale
drug distributor, pharmacy distributor, virtual wholesale
distributor, or third-party logistics provider without being
licensed to ship into, out of, or within the State under this
Act shall, in addition to any other penalty provided by law,
pay a civil penalty to the Department in an amount not to
exceed $10,000 for each offense as determined by the
Department. The civil penalty shall be assessed by the
Department after a hearing is held in accordance with the
provisions set forth in this Act regarding the provision of a
hearing for the discipline of a licensee.
(b) The Department has the authority and power to
investigate any and all unlicensed activity.
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty.
The order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
(Source: P.A. 101-420, eff. 8-16-19.)
(225 ILCS 120/31)
(Section scheduled to be repealed on January 1, 2028)
Sec. 31. Expiration of license; renewal.
(a) The expiration date and renewal period for each
license issued under this Act shall be set by rule.
(b) Any licensee who shall engage in the practice for

SB3896 Enrolled - 15 - LRB104 20398 AAS 33859 b
which the license was issued while the license is expired or on
inactive status shall be considered to be practicing without a
license which shall be grounds for discipline under this Act.
(c) A wholesale drug distributor, virtual wholesale
distributor, or third-party logistics provider whose license
has been expired for one year or more may not have its license
restored but must apply for a new license and meet all
requirements for licensure. Any wholesale drug distributor,
virtual wholesale distributor, or third-party logistics
provider whose license has been expired for less than one year
may apply for restoration of its license and shall have its
license restored.
(d) Anyone operating on an expired license is engaged in
unlawful practice and subject to discipline under this Act.
(Source: P.A. 102-879, eff. 1-1-23.)
(225 ILCS 120/40) (from Ch. 111, par. 8301-40)
(Section scheduled to be repealed on January 1, 2028)
Sec. 40. Rules and regulations. The Department shall make
any rules and regulations, not inconsistent with law, as may
be necessary to carry out the purposes and enforce the
provisions of this Act. All rules and regulations promulgated
under this Section shall conform to wholesale drug distributor
licensing guidelines formally adopted by the FDA at 21 C.F.R.
Part 205. In case of conflict between any rule or regulation
adopted by the Department and any FDA wholesale drug

SB3896 Enrolled - 16 - LRB104 20398 AAS 33859 b
distributor, virtual wholesale distributor, or third-party
logistics provider guideline, the FDA guideline shall control.
(Source: P.A. 101-420, eff. 8-16-19; 102-879, eff. 1-1-23.)
(225 ILCS 120/50) (from Ch. 111, par. 8301-50)
(Section scheduled to be repealed on January 1, 2028)
Sec. 50. Inspection powers; access to records.
(a) Any pharmacy investigator authorized by the Department
has the right of entry for inspection of premises purporting
or appearing to be used by a wholesale drug distributor,
virtual wholesale distributor, or third-party logistics
provider in this State, including the business premises of a
person licensed pursuant to this Act. This right of entry
shall permit the authorized pharmacy investigator unfettered
access to the entire business premises. Any attempt to hinder
an authorized pharmacy investigator from inspecting the
business premises and documenting the inspection shall be a
violation of this Act. The duly authorized investigators shall
be required to show appropriate identification before being
given access to the a wholesale drug distributor's premises
and delivery vehicles.
(b) With the exception of the most recent 12 months of
records that must be kept on the premises where the drugs are
stored, wholesale drug distributors, virtual wholesale
distributors, and third-party logistics providers may keep
records regarding purchase and sales transactions

SB3896 Enrolled - 17 - LRB104 20398 AAS 33859 b
electronically at a central location apart from the principal
office of the wholesale drug distributor or the location at
which the drugs were stored and from which they were shipped,
provided that the records shall be made readily available for
inspection within 2 working days of a request by the
Department. The records may be kept in any form permissible
under federal law applicable to prescription drugs record
keeping.
(c) (Blank).
(Source: P.A. 102-879, eff. 1-1-23.)
(225 ILCS 120/56)
(Section scheduled to be repealed on January 1, 2028)
Sec. 56. Restrictions on transactions.
(a) A licensee shall receive prescription drug returns or
exchanges from a pharmacy or other persons authorized to
administer or dispense drugs or a chain pharmacy warehouse
pursuant to the terms and conditions of the agreement between
the wholesale distributor, virtual wholesale distributor, or
third-party logistics provider and the pharmacy or chain
pharmacy warehouse. Returns of expired, damaged, recalled, or
otherwise non-saleable pharmaceutical products shall be
distributed by the receiving wholesale distributor or
third-party logistics provider only to either the original
manufacturer or a third party returns processor. Returns or
exchanges of prescription drugs, saleable or otherwise,

SB3896 Enrolled - 18 - LRB104 20398 AAS 33859 b
including any redistribution by a receiving wholesaler, shall
not be subject to the pedigree requirements of Section 57 of
this Act, so long as they are exempt from the pedigree
requirement of the FDA's currently applicable Prescription
Drug Marketing Act guidance. Both licensees under this Act and
pharmacies or other persons authorized to administer or
dispense drugs shall be accountable for administering their
returns process and ensuring that the aspects of this
operation are secure and do not permit the entry of
adulterated and counterfeit product.
(b) A manufacturer, or wholesale distributor, virtual
wholesale distributor, or third-party logistics provider
licensed under this Act may furnish prescription drugs only to
a person licensed by the appropriate state licensing
authorities. Before furnishing prescription drugs to a person
not known to the manufacturer or licensee wholesale
distributor, the manufacturer or licensee wholesale
distributor must affirmatively verify that the person is
legally authorized to receive the prescription drugs by
contacting the appropriate state licensing authorities.
(c) Prescription drugs furnished by a manufacturer, or
wholesale distributor, virtual wholesale distributor, or
third-party logistics provider licensed under this Act may be
delivered only to the premises listed on the license, provided
that the manufacturer or licensee wholesale distributor may
furnish prescription drugs to an authorized person or agent of

SB3896 Enrolled - 19 - LRB104 20398 AAS 33859 b
that person at the premises of the manufacturer or licensee
wholesale distributor if:
(1) the identity and authorization of the recipient is
properly established; and
(2) this method of receipt is employed only to meet
the immediate needs of a particular patient of the
authorized person.
(d) Prescription drugs may be furnished to a hospital
pharmacy receiving area, provided that a pharmacist or
authorized receiving personnel signs, at the time of delivery,
a receipt showing the type and quantity of the prescription
drug received. Any discrepancy between the receipt and the
type and quantity of the prescription drug actually received
shall be reported to the delivering manufacturer, or wholesale
distributor, or third-party logistics provider by the next
business day after the delivery to the pharmacy receiving
area.
(e) A manufacturer, or wholesale distributor, or virtual
wholesale distributor licensed under this Act may not accept
payment for, or allow the use of, a person or entity's credit
to establish an account for the purchase of prescription drugs
from any person other than the owner of record, the chief
executive officer, or the chief financial officer listed on
the license of a person or entity legally authorized to
receive the prescription drugs. Any account established for
the purchase of prescription drugs must bear the name of the

SB3896 Enrolled - 20 - LRB104 20398 AAS 33859 b
licensee. This subsection (e) shall not be construed to
prohibit a pharmacy or chain pharmacy warehouse from receiving
prescription drugs if payment for the prescription drugs is
processed through the pharmacy's or chain pharmacy warehouse's
contractual drug manufacturer or wholesale distributor.
(Source: P.A. 95-689, eff. 10-29-07.)
(225 ILCS 120/60) (from Ch. 111, par. 8301-60)
(Section scheduled to be repealed on January 1, 2028)
Sec. 60. Wholesaler licensing; complaints. The Department
may refuse to issue a license to establish a new licensed
wholesale drug distributor, virtual wholesale distributor, or
third-party logistics provider distributorship, if an owner of
the entity wholesale drug distributorship applying for a
license was an owner of a wholesale drug distributor, virtual
wholesale distributor, or third-party logistics provider
distributorship that had its license revoked, unless the owner
presents sufficient evidence indicating rehabilitation. Once a
complaint has been filed by the Department against a wholesale
drug distributor, virtual wholesale distributor, or
third-party logistics provider distributorship the Department
may refuse to issue a license to establish a new licensed
wholesale drug distributor, virtual wholesale distributor, or
third-party logistics provider distributorship, until such
time as the Department issues a decision on the complaint if an
owner of the new wholesale drug distributor, virtual wholesale

SB3896 Enrolled - 21 - LRB104 20398 AAS 33859 b
distributor, or third-party logistics provider distributorship
was also an owner of a wholesale drug distributor, virtual
wholesale distributor, or third-party logistics provider
distributorship against which the complaint was filed. Neither
an application for change of ownership nor for a change of
location for any such entity wholesale drug distributorship
shall be acted on by the Department until such time as the
Department issues a decision on the complaint. In the event
that the wholesale drug distributor, virtual wholesale
distributor, or third-party logistics provider distributorship
against which the complaint has been filed ceases to be
licensed by the Department, for any reason, before the
Department's decision on the complaint and an owner or that
wholesale drug distributor, virtual wholesale distributor, or
third-party logistics provider distributorship applies for a
license to establish a new wholesale drug distributor, virtual
wholesale distributor, or third-party logistics provider
distributorship, the Department shall conduct a hearing on the
complaint earlier filed, regardless of whether that wholesale
drug distributor, virtual wholesale distributor, or
third-party logistics provider distributorship is presently
licensed by the Department. If the conduct for which the
complaint was originally filed would have been sufficient to
result in a revocation of a license to operate a licensed
wholesale drug distributor, virtual wholesale distributor, or
third-party logistics provider distributorship, then the

SB3896 Enrolled - 22 - LRB104 20398 AAS 33859 b
conduct shall constitute sufficient grounds for denial of an
application for a license.
(Source: P.A. 87-594.)
(225 ILCS 120/80) (from Ch. 111, par. 8301-80)
(Section scheduled to be repealed on January 1, 2028)
Sec. 80. Violations of Act.
(a) If any person violates the provisions of this Act, the
Secretary may, in the name of the People of the State of
Illinois through the Attorney General of the State of Illinois
or the State's Attorney of any county in which the action is
brought, petition for an order enjoining the violation or for
an order enforcing compliance with this Act. Upon the filing
of a verified petition in the court, the court may issue a
temporary restraining order, without notice or bond, and may
preliminarily and permanently enjoin the violation. If it is
established that the person has violated or is violating the
injunction, the Court may punish the offender for contempt of
court. Proceedings under this Section shall be in addition to,
and not in lieu of, all other remedies and penalties provided
by this Act.
(b) Whoever knowingly conducts business as a wholesale
drug distributor, virtual wholesale distributor, or
third-party logistics provider in this State without being
appropriately licensed under this Act shall be guilty of a
Class A misdemeanor for a first violation and for each

SB3896 Enrolled - 23 - LRB104 20398 AAS 33859 b
subsequent conviction shall be guilty of a Class 4 felony.
(c) Whenever in the opinion of the Department any person
not licensed in good standing under this Act violates any
provision of this Act, the Department may issue a rule to show
cause why an order to cease and desist should not be entered
against him. The rule shall clearly set forth the grounds
relied upon by the Department and shall provide a period of 7
days from the date of the rule to file an answer to the
satisfaction of the Department. Failure to answer to the
satisfaction of the Department shall cause an order to cease
and desist to be issued immediately.
(Source: P.A. 101-420, eff. 8-16-19; 102-879, eff. 1-1-23.)
(225 ILCS 120/155) (from Ch. 111, par. 8301-155)
(Section scheduled to be repealed on January 1, 2028)
Sec. 155. Temporary suspension of license; hearing. The
Secretary may temporarily suspend licensure as a wholesale
drug distributor, virtual wholesale distributor, or
third-party logistics provider, without a hearing,
simultaneously with the institution of proceedings for a
hearing provided for in Section 85 of this Act, if the
Secretary finds that evidence in his or her possession
indicates that a continuation in business would constitute an
imminent danger to the public. In the event that the Secretary
temporarily suspends a license or certificate without a
hearing, a hearing by the Department must be held within 10

SB3896 Enrolled - 24 - LRB104 20398 AAS 33859 b
days after the suspension has occurred and be concluded
without appreciable delay.
(Source: P.A. 101-420, eff. 8-16-19; 102-879, eff. 1-1-23.)
(225 ILCS 120/185) (from Ch. 111, par. 8301-185)
(Section scheduled to be repealed on January 1, 2028)
Sec. 185. Home rule preemption. The regulation and
licensing of wholesale drug distributors, virtual wholesale
distributors, and third-party logistics providers are
exclusive powers and functions of the State. A home rule unit
may not regulate or license wholesale drug distributors,
virtual wholesale distributors, and third-party logistics
providers. This Section is a denial and limitation of home
rule powers and functions under subsection (h) of Section 6 of
Article VII of the Illinois Constitution.
(Source: P.A. 87-594.)
(225 ILCS 120/200)
(Section scheduled to be repealed on January 1, 2028)
Sec. 200. Drugs in shortage.
(a) For the purpose of this Section, "drug in shortage"
means a drug, as defined in Section 356c of the Federal Food,
Drug, and Cosmetic Act, listed on the drug shortage list
maintained by the U.S. Food and Drug Administration in
accordance with Section 356e of the Federal Food, Drug, and
Cosmetic Act.

SB3896 Enrolled - 25 - LRB104 20398 AAS 33859 b
(b) Any person engaged in the wholesale distribution of a
drug in shortage in this State must be licensed by the
Department.
(c) It is unlawful for any person, other than a
manufacturer, a manufacturer's exclusive distributor, a
virtual wholesale distributor, a third-party logistics
provider, or an authorized distributor of record, to purchase
or receive a drug in shortage from any person not licensed by
the Department. This subsection (c) does not apply to the
return of drugs or the purchase or receipt of drugs pursuant to
any of the distributions that are specifically excluded from
the definition of "wholesale distribution" in Section 15 of
the Wholesale Drug Distribution Licensing Act.
(d) A person found to have violated a provision of this
Section shall be subject to administrative fines, orders for
restitution, and orders for disgorgement.
(e) The Department shall create a centralized, searchable
database of those entities licensed to engage in wholesale
distribution, including manufacturers, wholesale
distributors, virtual wholesale distributors, and pharmacy
distributors, to enable purchasers of a drug in shortage to
easily verify the licensing status of an entity offering such
drugs.
(f) The Department shall establish a system for reporting
the reasonable suspicion that a violation of this Act has been
committed by a distributor of a drug in shortage. Reports made

SB3896 Enrolled - 26 - LRB104 20398 AAS 33859 b
through this system shall be referred to the Office of the
Attorney General and the appropriate State's Attorney's office
for further investigation and prosecution.
(g) The Department shall adopt rules to carry out the
provisions of this Section.
(h) Nothing in this Section prohibits one hospital
pharmacy from purchasing or receiving a drug in shortage from
another hospital pharmacy in the event of a medical emergency.
(Source: P.A. 102-879, eff. 1-1-23.)
Section 99. Effective date. This Act takes effect upon
becoming law.