Pharmacy Ownership Law Petition Approved For Circulation

CVS/pharmacy on State Street

Another attempt is being made to eliminate the state’s restrictive pharmacy ownership law, which bans such big chains as Walmart and Walgreens from having pharmacies within the state.

Secretary of State Al Jaeger has approved a petition that would put the law up on the November ballot if it garners enough signatures. The organizers need to collect at least 13,452 valid signatures by August 6 to be eligible.

While a similar drive in 2010 garnered enough signatures, it was deemed ineligible due to technical reasons. It also failed in the 2009 Legislature in a 57-35 vote.

Supporters of eliminating the law cite such reasons as lower prescription costs and argue that the law restricts freedoms for both businesses and consumers. Opponents show concern over national chain impact on independent pharmacies, which many argue offer better service and similar prices.

The law has been effect since 1963, leaving CVS as the only national chain pharmacy in the state after acquiring Osco Drug in 2006. Osco was grandfathered since it already had locations in the state; however, CVS is limited to its six stores within the state and cannot expand.

The law saw its first major legal challenge in 1973, when regional drug chain Snyder’s Drug made claim that the law was unconstitutional. Snyder’s parent already had several Red Owl and Tempo Discount stores within the state and had desires to expand its pharmacy operations. In 1977, Osco Drug and White Drug also challenged the law alongside the National Association of Chain Pharmacies, but lost.