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Compliance

Office-use compounding rules by state

USPeptideRx EditorialLast reviewed:

Whether a prescriber may keep compounded medications on the shelf is decided by state law, and among the states reviewed here the answers are not close. A small group permits it outright as a matter of that state's own pharmacy law: Texas, South Carolina, Alabama, Kansas and Nebraska each grant it without attaching any federal condition. Kansas is the one to read first, because its permission reaches sterile preparations in the rule's own words rather than by inference, and sterile is the limb an injectable lives in; Nebraska writes office use as one of the purposes for which compounding may happen at all, rather than as an exception to a prohibition. North Carolina grants it while conditioning that grant on federal law, and Utah belongs with North Carolina rather than with Kansas and Nebraska: its statute is express and carries no federal hook, but the division's implementing rule is a single sentence re-granting the authority on condition of compliance with the federal Food, Drug, and Cosmetic Act. Connecticut belongs in the first group for non-sterile preparations only, capped at a thirty-day supply — for sterile product it confines a pharmacy to patient-specific supply, which is why its answer has to be given by limb. New Jersey, Missouri and Minnesota bar human office use outright. Georgia and Iowa close the pharmacy route but not the question: Georgia's rule says in terms that it does not affect the ability of outsourcing facilities to supply non-patient-specific preparations for office use, and Iowa defines office use as product from an outsourcing facility in the first place, so both belong with the states that reroute rather than with the states that ban. Mississippi bars the non-patient-specific version while expressly permitting a pharmacy to compound patient-specific medications for office administration by a practitioner, so both halves have to be stated together; Illinois permits it for non-sterile preparations only, the same shape as Connecticut; Ohio's carve-out is narrow and internally contested; Louisiana, Missouri and Iowa authorise only a veterinary pathway, and New Mexico has written no human provision at all while granting two express veterinary ones. Arkansas cannot be answered with a single verdict in either direction: its legislature expressly authorised an outsourcing facility to sell compounded product to a licensed provider for administration in a medical clinic in 2025, and left the pharmacy side unwritten. New England and Delaware sharpen that same point into the most useful distinction on this page, because several of them answer the question with a facility type rather than with a no. Delaware puts it in a single sentence whose operative first word is Only: only an FDA-registered outsourcing facility that also holds a Delaware licence may supply a practitioner for office use. Rhode Island requires a prescription for the compounding of all pharmaceuticals and then excepts outsourcing facilities by name, and Vermont's rule says in terms that 503B outsourcers need not register as compounding pharmacies. Massachusetts is the most distinctive of all and the one most often described wrongly: it does not prohibit office use, it reclassifies the supplier, providing that compounding and distributing sterile preparations in volumes inconsistent with normal patient-specific prescribing, or without accountability documentation, is itself operating as an outsourcing facility — which then carries federal manufacturing-quality standards and FDA registration. Maine closes the pharmacy route by an exhaustive definition whose only non-patient-specific limb is veterinary, and Vermont's veterinary limb goes further than most by contemplating resale by the clinic. New Hampshire is the exception in that group: it expressly permits compounding for office use, but only for products that are not commercially available, and the board rule beneath that statute has not been readopted since 2015 and appears to have lapsed. So for a practice that can reach an outsourcing facility, a state described elsewhere as restrictive is often an open door, and the question worth asking is which kind of facility may supply you rather than whether anyone may. The rest are narrower than they look: Maryland reaches ophthalmologists alone, for six named conditions in emergency treatment; Virginia allows it only where there is a critical need to treat an emergency condition; Tennessee only where the product is not commercially available; Michigan only where the state has authorized that particular pharmacy for that particular prescriber; Washington only by leaving the activity out of the definition of manufacture; Oregon permits it only for radiopharmaceuticals and reclassifies the rest as manufacturing; Indiana forbids it unless federal law is satisfied, in a chapter written for bulk drug substances; Pennsylvania wrote no rule at all and hands the question to federal law. And a growing group used to permit more than it does now: Nevada repealed its permission for compounded drugs in two steps in 2024, Kentucky's rule expired in 2020 and only a veterinary replacement followed, Oklahoma revoked both of its rules and has written nothing in nine years, and Wisconsin repealed its own without yet replacing it. That is why the last-change column matters as much as the verdict, and why a citation to any rule in this family should be re-checked before it is relied on. The mountain and northern-plains entries added most recently sharpen both ends of the range. North Dakota gives the clearest answer on this page: its rule is captioned for office use and permits it, and the permission is conditioned on the supplier rather than on the drug or the quantity — the preparation must come from a facility licensed as an outsourcing facility or from a resident North Dakota pharmacy, and sales to other clinics are called manufacturing that is not allowed. Wyoming states the routing pattern more plainly than anywhere else here, providing that a prescription order for office use is not a valid order while separately requiring an outsourcing facility to carry a label saying the drug is compounded and for office use only. Idaho cannot be given a single answer: its statute excepts the sale of minimal quantities to practitioners for office use from a list of unlawful acts, its definition of compounding is patient-tailored, and the board rule chapter that sat between those texts was voided in its entirety on 1 July 2025 — so the split is the finding. South Dakota wrote neither an authority nor a prohibition, and the closed reading given here is a structural inference from its patient-tethered definitions rather than a quoted holding. Montana has legislated neither way, the term appearing nowhere in its own statutes or rules, and a rulemaking that would close that silence was pending when this page was written. West Virginia is the one entry carrying no verdict at all, because its statute is silent and the rules that would decide it have not been read — which the page says in its own voice rather than filling the gap. The last three close the map, and the most useful of them is a warning about method. Alaska permits a pharmacist to supply a prescribing practitioner for administration to a patient, and that sentence is in neither its statutes nor its administrative code: it lives in a Board of Pharmacy pamphlet dated February 2008 that the code adopts by reference and the state does not publish online, so reading the code alone produces a confident and wrong report of silence. The District of Columbia performs the Massachusetts move and lands somewhere new, because it has no outsourcing-facility category under any name: supplying a practitioner makes the pharmacy a wholesaler and sends it to a generic manufacturer, distributor and wholesaler registration instead. Hawaii has legislated in neither direction, and its one express channel for stock that is not tied to a named patient — the emergency-kit rule — turns on a conflict between a rule that excludes private practice from the term institutional facility and a statute that includes a prescribing practitioner's office in it, which only the Hawaii board can settle. Every US state and the District of Columbia is now listed in the table below with its own rule text, so nothing here is unreviewed; what varies is how much each jurisdiction has actually settled, and the pages that decline to answer say so.

“Office use” means a pharmacy supplying a prescriber with compounded preparations that are not tied to a named patient, for the prescriber to administer in practice. It is one of the most commonly misstated areas of compounding regulation, usually in the direction of describing a state as permissive when its rule text says the opposite.

Every quote below was taken from the state’s own code or board publication. Where a source could not be verified, or where two official sources disagree, that is stated on the page rather than smoothed over.

The federal backdrop governs everything below

Federal law sets the floor. 21 U.S.C. § 353a suspends three federal requirements for compounded drugs, but only on a condition:

21 U.S.C. § 353a(a)
Sections 351(a)(2)(B), 352(f)(1), and 355 of this title shall not apply to a drug product if the drug product is compounded for an identified individual patient based on the receipt of a valid prescription order

Section 353a(a)(2) allows compounding “in limited quantities before the receipt of a valid prescription order” on an established prescribing history — but that stock is still dispensed against a patient-specific prescription.

This matters commercially because several of the states below condition office use on “applicable federal law” or expressly incorporate § 353a. In those states the state rule does not independently authorise anything; it hands the question back to federal law. A state rule saying “office use is permitted, consistent with federal law” is not a green light, and should never be read as one. The separate federal pathway for non-patient-specific office stock is the 503B outsourcing facility — see 503A vs 503B.

Every state reviewed, compared

Read the status column as the state’s own words where possible. The differences in the remaining columns — quantity caps, mandatory label legends, reporting duties — are where operational compliance actually lives.

Office-use compounding rules compared across every state reviewed here, reviewed 2026-09-01
StateHuman office useSterileQuantity capLabel legendBoard reportingLast change
GeorgiaProhibited (503B carve-out)Not applicable — activity barred5%/yr — veterinary onlyYes — veterinary onlyNone identifiedMay 2023
North CarolinaPermitted under state pharmacy law, conditioned on federal lawBoth, per USP standardsNone in the ruleNone requiredAnnual NABP e-Profile update, Jan 1 – Mar 31Aug 2021
OhioNarrow statutory carve-out; contestedBoth, subject to the same gates"Limited quantity" — no percentageNone required72-hour product quality + FDA lettersUSP refs 2026; occasional sale May 2025
LouisianaNot authorised — veterinary onlyBoard pre-approval required5% of dosage units, monthlyNone requiredPre-approval to begin sterile compoundingJan 2023
New JerseyProhibitedBoth barred for human useNot applicable — activity barredNot applicableSterile pre-approval (13:39-11.3)Document dated May 2024
IllinoisPermitted — non-sterile onlyProhibited unless 503B-registered + wholesale distributor licensedBUD-bounded reasonableness + aggregate capacityYes — "For Office Use Only Not for Resale"Department inspection to add sterile serviceJune 2024
ArizonaEnds September 5, 2026 — veterinary only from that dateNo distinction; the change reaches sterile compounders too5% of gross sales — a wholesale-permit exemption, not a permissionTwo legends to Sept 4, 2026; "Not for Dispensing; For Veterinary Use Only" afterNone routine; 3-business-day record production from Sept 5, 2026Effective September 5, 2026 (File R26-122)
CaliforniaStatute permits; the regulations do not implement itPatient-specific default in both articlesNone for human office use — the old test was repealedNone — "Not for Resale" appears nowhere in California law12-hour recall and adverse event; annual interstate reportRegulations Oct 2025; § 4112 Jul 2026
ColoradoRepealed in 2021 — no human pathwayNo differentiation; no injectable carve-outThe 10% cap was repealed with the authority it limitedNone — "office" appears nowhere in the compounding rulesControlled-substance theft within 30 daysHB 26-1262, June 2, 2026
FloridaNot authorised — a pure federal pass-throughBoth barred for human use; no sterile carve-outThe 3% figure is a wholesale exemption, not a permissionHuman legend repealed Apr 2025; veterinary "Compounded Drug."Incident-driven only — 10-day and 30-day dutiesAugust 3, 2026
New YorkNo provision for pharmacies; prohibitive in effectNo pharmacy compounding standards adopted at allNot applicable — no pathway, and no 5% safe harbour"Office Use Only" + "not for resale" — outsourcing facilities onlyOutsourcing facilities only — semi-annual and adverse eventStatutes current to January 1, 2026
TexasPermitted by Texas pharmacy lawBoth; sterile adds a 250 / 1,000-unit batch capNo percentage — three-prong test incl. aggregate capacityYes — "For Institutional or Office Use Only--Not for Resale"Event-driven; recalls also go to the state health departmentSterile rule, March 2026
PennsylvaniaNo state rule — federal 503A governsNo split — both sent to section 503aNone in pharmacy lawNone existsNone for office useJune 2019
MichiganNarrow — only by state authorizationNo split; only topical non-sterile is carved outNo number — whatever the department approvedNone for the pharmacy routeAdverse event 10 days; other actions 30 daysRules March 2026; statute 2014
WashingtonBy negative implication onlyNo split — one standard for bothNone in the codeNone, except radiopharmaceuticalsNone specific to office useCompounding rule, May 2024
VirginiaNarrow — emergency need, or as federal law allowsNo office-use split; sterile adds a Board notification"A reasonable amount", bounded by the beyond-use dateYes — "For Administering in Prescriber Practice Location Only"Sterile-compounding notification; theft or loss immediatelyStatute July 2025 (not the office-use paragraph)
TennesseeNarrow — only if not commercially availableNon-patient-specific sterile stock reads as manufacturingNone on compounding; the 5% cap is a licensure exemptionNone existsQuarterly sterile report; discipline within 14 business daysSterile rules reverted May 2024
MinnesotaProhibited — compounding must be patient-specificNo split — the bar is on the actNot applicable — no permission to capNone existsNone for office use; theft and loss lists exclude prescribersRe-enacted unchanged, 2026
South CarolinaPermitted by South Carolina pharmacy lawNo split in the office limb; the institutional limb says both expresslyNo percentage — a historical-basis test insteadNone for human preparationsNone for office use; the buyer carries a supplier-verification dutyStatute 2024; outsourcing-facility rules May 2026
AlabamaPermitted by Alabama pharmacy lawNo split in the section; the pharmacy needs sterile certificationNo number — an undefined "inordinate amounts" testYes — "For Office Use", mandatory by statuteNone; a one-year sale record is kept by the pharmacyStatute unchanged since 2017; penalty rule lands Oct 2026
MarylandNarrow — ophthalmologists only, six named conditionsClosed generally by a permit Reg .19 demandsNone on the human limb; veterinary capped at 10% of annual unitsNone; sterile containers carry the patient’s name insteadThe ophthalmologist reports patient identity back to the pharmacyChapter 19 rewrite proposed Nov 2025, still unadopted
MissouriProhibited — supply must be against a dispensed prescriptionNo split — subsection (12) reaches bothAnticipatory batching capped at a three-month supplyVeterinary only — "Office Stock Compounded Preparation"None for office use; there is no permitted activity to reportProhibition unchanged; sterile rules overhauled June 2026
WisconsinNo rule in force — repealed, replacement pendingNo split; USP chapters incorporated together at Phar 15.02None — the only threshold was never defined by the boardNone in force; the legend exists only in the repealed and pending rulesNoneRule repealed 2025-10-01
IndianaBarred for bulk-substance compounding; no permission existsSterile rule gates to a drug order; non-sterile has no ruleNone on compoundingNone; the only container legend is patient-specificNone for office use; a semiannual state oversight census counts entitiesNew chapter in force 2026-07-01
NevadaRepealed 2024 for compounded drugs; manufactured office supplies unaffectedNo split in the repealed sectionNone — the office-use cap went with the repealNone; the terms appear nowhere in the chapterNone for office use; there is no permitted activity to reportRepeal completed November 2024
ConnecticutNon-sterile permitted; sterile patient-specific onlyPatient-specific unless the pharmacy also registers as a manufacturerThirty-day non-sterile; two-week sterile; thirty-day on-site inventoryNone for compounded preparationsNonresident sterile compounders file inspection reports bienniallyInspection-report duty effective January 2026
OklahomaCompounding rules revoked 2015 and 2017; no replacementSterile rule died first, in 2015; the survivor is prescription-boundFive per cent of the SELLER’s total annual sales, plus "inordinate amount"None for humans; the only legend is veterinaryNone for office useSecond revocation, September 2017
KentuckySilent — the human rule expired in 2020No split; one rule for sterile and non-sterile alikeQualitative — "reasonable quantities"None in force for humans; the only live legend is veterinaryNone for office useHuman rule expired October 2020
OregonReclassified as manufacturing; nuclear limb onlyNo split — the 2026 division covers bothNone numeric anywhere in the chapterNone general; radiopharmaceutical onlyNone for office useCompounding division rewritten June 2026
IowaBarred for 503A product by definitional exclusionNo split on the 503A side; the 503B licensure trigger names sterile onlyNone in the rules; "minimal quantities" undefined by statuteThe office-use legend was deleted in 2025Five years of FDA correspondence disclosed at every renewalEntire rule set rescinded and replaced, July 2025
KansasPermitted by Kansas pharmacy rulesPermitted in its own terms — the rules are identical but for the adjectiveNo number — "limited quantities", undefinedYes — "For Office Use Only — Not for Resale."None for office use; non-sterile carries a four-element invoice dutyBoth rules effective May 2018
NebraskaPermitted by statute as a co-equal purposeNo split — the word does not appear in the statuteFiscal, in another Act: 5% of either party’s revenueNone in the compounding statuteNone for office useClause in force since 2015, unchanged
UtahPermitted by statute, conditioned on federal law by ruleNo split in either instrumentNone numericYes — "for office use only", in the statuteNone for office useOffice-use rule last amended August 2025, unchanged
ArkansasSilent for pharmacies; expressly permitted for outsourcing facilitiesNone on the 503A limb; the 503B definition names sterile human drugsNone for humansNone for humansNone for office useAct 961 approved April 2025; effective date bounded, not pinned
MississippiNon-patient-specific prohibited; patient-specific office administration permittedNo split — the bar turns on patient-specificityNone on the prohibited limb; the wholesale exemption caps at 5% of annual salesNoneNone for office useDispensing article effective November 2024; a filing pending since April 2025
New MexicoNo human provision; two express veterinary grantsYes on the veterinary limb — the newer sterile rule is stricterQualitative only — reasonable and minimal quantities, undefinedVeterinary only — "For administration only. Not for dispensing or resale."None for office useSterile veterinary rule new, effective November 2025
MassachusettsNot prohibited — the conduct is defined as operating as an outsourcing facilityThe trigger names sterile; the duty reaches sterile and complex non-sterileNo number — measured against the pharmacy’s own prescription patternsNot established for this page — see the scope noteAccountability documentation; its absence is independently a triggerStatutory framework rebuilt in 2014
New HampshirePermitted by statute, for products that are not commercially availableThe statute draws no sterility line; the rule that did appears to have lapsedNo number — "in limited quantities", undefinedNone in the statute for human office useThe pharmacy must record what it supplied to the medical officeStatute amended 2019; the board rule not readopted since 2015
MaineOutside the statutory definition of compoundingNo split — the definition draws no sterility lineNone; the 5% figure belongs to a wholesale-licensure exemptionVeterinary limb onlyNone for human office useDefinition rewritten in 2021
Rhode IslandBarred for pharmacies; outsourcing facilities excepted by nameNo split — the rule reaches all pharmaceuticalsQualitative — anticipatory preparation in "limited quantities"NoneNone for office useCurrent rule part amended, effective April 2026
VermontOutside the closed three-limb grant; outsourcing facilities excepted by nameNo split — the grant draws no sterility lineQualitative — "in limited quantities and for a specific patient"None — the ruleset carries no compounded-drug labelling ruleNone for office useEntire ruleset replaced, effective 1 February 2026
DelawareOnly an FDA-registered outsourcing facility licensed in Delaware may supply itNo split — the sentence reaches nonsterile and sterile togetherNone on the human limb; the veterinary limb is cappedNone on the human limbNone for office useSection last amended effective 1 January 2026
North DakotaPermitted, but only from an outsourcing facility or a resident North Dakota pharmacyNo split — the permission reaches human drug products without a sterility lineNone for human office stock; the 120-hour limit is veterinaryCompounder’s label under ch. 61-04-06, plus beyond-use date and lot numberNone for office use; 48-hour production duty falls on the outsourcing facilityCurrent text effective 1 January 2024
IdahoSplit — an express statutory exception against a patient-specific compounding definitionNo split in the reclassification; sterility is handled separately at § 54-1766"Minimal quantities", undefined anywhereNot established — the rule layer that carried it was revokedNone found for office useBoard rule chapter voided 1 July 2025; statute added 2025
MontanaSilent — no Montana statute or rule uses the term, in either directionOne sterile rule and no non-sterile rule; the reclassification question is not reachedNone in Montana law; the anticipatory limb carries no ceilingNone for office stock — both label rules presuppose a named patientNone foundDefinition rewritten effective 1 October 2025; rulemaking pending
South DakotaNo authorising rule and no express prohibition; closed by structure, as an inferenceNo split — one incorporation covers sterile, non-sterile and repackaging alikeFive per cent, gated on meeting temporary inventory shortagesNone — the compounding label rule was repealed; the survivor names the patientInvoices with DEA numbers, retained two years by both partiesArticle-wide amendments effective 16 August 2026
WyomingNot a valid order for a pharmacy; an outsourcing facility must label for office useNo state text either way since 19 August 2025; USP chapters incorporated by referenceNone — the order is invalid regardless of quantity"This is a compounded drug. For office use only" — required of outsourcing facilitiesNone for office use; pedigree duties sit in the wholesale chapterCompounding chapters repealed and replaced 19 August 2025
West VirginiaNot established — statute silent, and the operative rule is beyond what we have readNot established — the word does not appear in the statuteNone in statute; the five per cent clause runs pharmacy to pharmacy onlyNot established — dispensing label rules sit in the unread rulesNot establishedStatutory framework last substantially revised 2012–2013
AlaskaPermitted for a practitioner to administer to a patient — by pamphlet, not by codeNo split; no USP chapter adopted, only an accepted standard of careNo number — a historical prescribing basis, and no inordinate amountsNone for office stock; the label rule reaches dispensed orders onlyNone for office useIncorporating rule amended 9 October 2008; pamphlet dated February 2008
HawaiiSilent both ways; the transaction falls outside the prescription exclusionNo split in Hawaii law; USP 795 and 797 enter only as a disciplinary groundNone; the emergency kit’s quantity is jointly determined, not legislatedNone for office use; emergency kits carry their own exterior and per-item labelsNone for office useRules compiled 15 August 2016; controlled-substance registrar changed 1 January 2024
District of ColumbiaNo provision; the supplier is reclassified as a wholesaler and needs a licenceNo split for this question — the compounding definition is unitaryNone; the five per cent clause is a trigger, not a ceiling, and does not reach a practiceNone — the label rule requires a patient name and prescription numberNone for office usePharmacy chapter rebuilt effective 1 April 2022

Rule text state by state

Each state page carries the governing rule’s verbatim text, the operational conditions attached to it, and the specific things this review could not establish.

The questions this raises

The rule text above answers what a state permits. These answer what that means for a particular practice, a particular role, or a particular order.

What these states have in common

Three patterns repeat across every state reviewed. First, anticipatory compounding is widely permitted but is never the same thing as office use — the stock still waits for a patient-specific order. Second, resale is barred everywhere it is addressed: a prescriber who receives compounded preparations may not sell them on. Third, the veterinary channel is consistently broader than the human one, and in Georgia, Louisiana, Missouri, Kentucky, Oregon and Iowa it is the only non-patient-specific channel that exists. Missouri is the cleanest illustration of what that proves: its board wrote a complete office-stock rule with its own mandatory label legend and gave it to veterinarians alone. An express animal limb sitting beside no human limb is a drafting decision, not an oversight.

The practical consequence for a multi-state practice is that office-use compliance cannot be handled with a single national policy. Illinois requires a specific label legend and five-year records; Alabama requires the words “For Office Use” on the label by statute; North Carolina requires an annual filing in a national database; Ohio requires a 72-hour product-quality report; Virginia prescribes the exact wording of a label legend and treats every drug labelled “Rx only” as a controlled substance; South Carolina puts a duty on the buying practice to verify that its supplier holds a South Carolina permit; Minnesota puts a tax on the receiving practice when the shipper is not itself taxed. Each of those obligations is invisible from the others.

A 5% clause is never permission to compound

Most of the states below carry a clause about small quantities supplied to practitioners, pegged at five per cent. Every one of them is about wholesale-distributor licensure and nothing else — and they do not even all point the same way. Usually the clause exempts the seller from that licence. In Missouri it runs backwards: crossing five per cent is what makesa pharmacy a licensable distributor, so a supplier citing it as “Missouri’s 5% exemption” has inverted the statute. Wisconsin’s threshold conditions itself on a definition its board never wrote. Indiana has two, and one carries no percentage at all. Alabama has none anywhere. Not one of them grants anybody authority to compound anything, and not one displaces the state’s own compounding rule or the federal patient-specific condition. It is the most quotable-out-of-context provision in this area precisely because it looks perfect: it names practitioners, it names their own practice, and it carries a tidy auditable number. If a supplier offers one as the reason office stock is permitted, they have cited a licensing provision in answer to a compounding question — and there is no general “5% rule” to cite, only a different clause in each state.

Oklahoma is worth singling out, because its version is not an exemption at all and reading it as one gets both the direction and the denominator wrong. There the five per cent is a condition on a permit the pharmacy affirmatively holds, so breaching it violates the permit rather than losing a safe harbour — and it caps that pharmacy’s entire office-supply book across every prescriber it serves, measured in the pharmacy’s own revenue rather than in anything the buying practice does. It is the supplier’s ceiling, shared among all of its customers.

One more thing worth knowing before a supplier quotes any of these at you: in Kentucky the state board’s own published answers say a pharmacy may sell prescription drugs to a practitioner for office use. That is accurate about what it covers — finished manufactured product moving under an exemption from wholesale-distributor licensure — and the word “compounded” appears in none of those answers. A screenshot of a state agency page is persuasive and, here, answers a different question than the one being asked.

State permission and federal exemption are different questions

This is the distinction the rest of the page turns on, and Alabama is where it is easiest to see. Most permissive states in the table route through a clause requiring compliance with federal law, which authorises nothing on its own — it hands the question back. Alabama does not route anywhere. Its office-use section carries no federal-compliance limb, no reference to the federal compounding statute and no regulatory hook of any kind, which has two consequences at once: the permission is genuinely effective as Alabama law, and precisely because it does not defer to federal law it does not and cannot create an exemption under 21 U.S.C. § 353a. A pharmacy compounding office stock under that section has real Alabama authorisation and is simultaneously outside the federal exemption, because nothing was compounded for an identified individual patient on receipt of a valid prescription order. Both are true at the same time, and neither answers the other.

The practical rule that follows is simple and it applies to every permissive state here. A sentence about office use has to name the level of government it is talking about. “Alabama expressly permits office-use compounding as a matter of state law” is defensible; the same sentence with the last five words removed is a federal claim that nothing in Alabama law supports. Texas and South Carolina sit in exactly the same position, and South Carolina adds a second limit worth carrying: its permission applies only to pharmacies permitted in South Carolina, so it is real but it is not portable.

Does authority follow your entity, or you?

This question has two opposite answers among the states reviewed here, and which one applies decides who should appear on the purchase order. In one group, a purchase by the business entity is what triggersa permit — Florida, California and Ohio each attach a clinic or establishment credential to the entity that buys, and South Carolina joins them for a practice structured as a clinic rather than as a physician’s practice, which also imports a consultant pharmacist. In another, authority attaches to a named licensed individual and there is no entity credential available at all: Michigan issues no drug licence an LLC or professional corporation can hold, Tennessee exempts drugs under the control of the physician in the practice of that person’s profession, Minnesota’s possession exemption lists no entity category, Missouri locks the practice of medicine to licensed persons by definition, Alabama’s exemption turns on a practitioner acting personally, and Pennsylvania reaches the same place through its practitioners’ licences. Washington forecloses the argument in both directions, excluding a private office and a multipractitioner clinic from its licensing category regardless of ownership.

Indiana is the one state that cuts the other way, and it is worth knowing because the finding sounds identical and means the opposite. There too no entity credential exists — but there none is needed, because the statute exempting possession of legend drugs expressly covers persons who procure them for handling by practitioners they employ, and institutions that procure them for lawful administration by practitioners. Elsewhere in this table “no entity credential exists” is a restriction; in Indiana it is a permission.

One clause is routinely read backwards on this question, so it is worth naming. Alabama’s controlled-substance rule applies to a physician without respect to whether the substances were purchased by an individual physician, a professional corporation, a hospital, clinic or other medical facility. That is not an authorisation for the entity to buy. It makes ownership of the stock legally irrelevant and pins the duty on the physician regardless of who paid, which is an anti-laundering clause — routing purchases through a corporate vehicle moves nothing.

A third group splits the question again, inside itself, by drug class — and two of those split it in opposite directions. Oklahoma attaches controlled-substance authority to the entity, and separately for each suite it occupies, while leaving everything else with the person and no entity credential in existence. Connecticut is the exact mirror: the person for controlled substances, the entity for legend-drug dispensing. Iowa names only two entity types in its possession exemption but lets an entity hold the controlled-substance registration.

So the useful question is not whether your entity needs a permit, and it is no longer even whether your state attaches authority to the entity or the person. It is which one your state attaches it to for this drug class, and which of the two your purchase order names — because a mixed order of controlled and non-controlled office stock can need two different names on two different purchase orders in the same state. Each state page states that state’s own answer; there is no general rule to carry across a border.

Check the rule is still in force before you rely on it

This is the failure mode that separates a current page from a stale one, and it is not hypothetical here. Six of the states reviewed have had the rule underneath them repealed, rescinded or renumbered, and in four of them the dead rule is still reachable by anyone who looks it up:

  • Oklahomakeeps both revoked rules’ titles in its codified volume with the revocation marker printed on the following line — so a reader skimming headings, or a tool scraping them, reproduces a rule that has not existed since 2015 or 2017.
  • Kentucky’s legislature serves, at the address numbered for the regulation that expired in 2020, an unfilled template that was never filed and never took effect — including a complete office-use permission and its own label legend. The status flag is the only thing on the page that says so.
  • Oregon repealed its entire compounding division in June 2026, and a widely used third-party mirror of Oregon rules still serves a snapshot from the year before — so a source that looks official is publishing repealed law today.
  • Iowa rescinded its whole pharmacy rule set and re-adopted it the same day under a different agency and different chapter numbers, and the rescinded set contained the express prohibition that was not carried forward.

A citation is a claim about what is in force, and it is usually the part of a page that rots first. Every rule quoted on these pages was pulled from the state’s own current source and carries its last-reviewed date; where a rule is dead, the death and its date are stated rather than the rule quietly dropped. If you are checking a competing summary, the fastest test is not whether its reasoning sounds right — it is whether its citations still resolve to law.

What this page does not establish

  • Every US state and the District of Columbia is now in the table above — 51 jurisdictions, with none left unreviewed. That closes the coverage gap and does not close the question: a jurisdiction being present here means someone has read its primary sources, not that its answer is settled. Several of these pages decline to give a verdict on purpose, and each says so in its own words.
  • State board rule dockets and administrative histories were checked; legislative databases were not. The absence of a rule change is not proof that no statute changed.
  • Search engines were unavailable during the underlying research, so the citations come entirely from primary sources — strong for rule text, but secondary signals such as board minutes, enforcement actions and trade coverage of pending bills were not surveyed.
  • Per-state gaps are listed on each state page under "What this page does not establish". The New Jersey and Louisiana pages carry the most significant ones.

Sources

Primary sources, fetched directly from the issuing body. No secondary summaries.

  1. [1]21 U.S.C. § 353a — Pharmacy compounding (Cornell LII)
  2. [2]21 U.S.C. § 353b — Outsourcing facilities (Cornell LII)
  3. [3]Ga. Comp. R. & Regs. Chapter 480-11 (Pharmaceutical Compounding)
  4. [4]Ga. Comp. R. & Regs. Chapter 480-28 (Practitioner Dispensing)
  5. [5]Ga. Comp. R. & Regs. Chapter 480 (administrative history)
  6. [6]Georgia Board of Pharmacy — Laws, Policies, Rules
  7. [7]21 NCAC 46 — Board of Pharmacy rules (current chapter PDF)
  8. [8]NC Board of Pharmacy — Legal Resources
  9. [9]NC Board of Pharmacy — Rulemakings
  10. [10]NC Pharmacy Practice Act (statutes PDF)
  11. [11]R.C. 4729.01 — definitions
  12. [12]OAC 4729:7-2-03 — compounding requirements
  13. [13]OAC 4729:7-2-05 — veterinary office use
  14. [14]OAC 4729:5-3-09 — occasional sale
  15. [15]OAC 4729:7-1-01 — compounding references
  16. [16]Ohio Board of Pharmacy — Rule Tracker (PDF)
  17. [17]Terminal Distributor Requirements for Prescribers Engaged in Drug Compounding (PDF)
  18. [18]Pharmacy Compounding in Ohio (PDF)
  19. [19]LAC 46:LIII — official Louisiana Division of Administration file (DOCX)
  20. [20]Louisiana Board of Pharmacy — Laws & Regulations
  21. [21]Louisiana Board of Pharmacy — Rulemaking Activity
  22. [22]N.J.A.C. 13:39 — State Board of Pharmacy, chapter PDF as captured 2025-01-21 (the source of the text quoted on this page)
  23. [23]N.J.A.C. 13:39 — official current chapter PDF (blocks automated access; open in a browser and check the footer revision date before relying on it)
  24. [24]NJ Office of Administrative Law — rules access
  25. [25]68 Ill. Adm. Code 1330.640 — Pharmaceutical Compounding Standards
  26. [26]JCAR — Title 68, Part 1330 sections
  27. [27]225 ILCS 85 — Pharmacy Practice Act
  28. [28]Arizona Administrative Register, Vol. 32 Iss. 30 (July 24, 2026) — File No. R26-122
  29. [29]A.A.C. Title 4, Chapter 23 — Board of Pharmacy rules (Supp. 26-1)
  30. [30]Arizona State Board of Pharmacy — statutes and rules
  31. [31]A.R.S. § 32-1901 — definitions
  32. [32]A.R.S. § 32-1981 — wholesale distribution exclusions
  33. [33]A.R.S. § 32-1491 — pharmacy permits
  34. [34]Bus. & Prof. Code § 4052 — official California legislative information
  35. [35]California Board of Pharmacy — approved regulations (the October 2025 rewrite)
  36. [36]California Board of Pharmacy — Order of Adoption, §§ 1735-1738
  37. [37]California Board of Pharmacy — Initial Statement of Reasons
  38. [38]California Board of Pharmacy — text of the repealed sections
  39. [39]California Board of Pharmacy — Lawbook (Rev. 7/2026)
  40. [40]California Board of Pharmacy — FAQs
  41. [41]California Board of Pharmacy — pending regulations
  42. [42]Colorado Revised Statutes 2026, Title 12 (official)
  43. [43]C.R.S. § 12-280-121 — compounding drugs for office use by a veterinarian
  44. [44]3 CCR 719-1 — State Board of Pharmacy rules, version history
  45. [45]Secretary of State — adopted rules, 2021 docket
  46. [46]Secretary of State — redline showing the 2021 deletions
  47. [47]Secretary of State — adopted rules, 2023 docket
  48. [48]HB 26-1262 — Patient Access to Compounded Medical Items
  49. [49]SB 21-094 — Board of Pharmacy sunset bill
  50. [50]Fla. Admin. Code R. 64B16-27.700 — rule page and amendment history
  51. [51]Fla. Admin. Code R. 64B16-27.700 — current adopted text
  52. [52]Fla. Admin. Code R. 64B16-27.700 — 2017 notice (outsourcing-facility purpose statement)
  53. [53]Fla. Admin. Code R. 64B16-27.700 — 2025 notice deleting the administer-only clause
  54. [54]Fla. Stat. § 465.0265 — Centralized prescription filling
  55. [55]Fla. Stat. § 499.003 — definitions, incl. the wholesale-distribution exclusions
  56. [56]Fla. Stat. § 465.016 — grounds for discipline
  57. [57]N.Y. Educ. Law § 6810 — prescriptions
  58. [58]N.Y. Educ. Law § 6811 — misdemeanours
  59. [59]N.Y. Educ. Law § 6831 — outsourcing facilities
  60. [60]N.Y. Educ. Law § 6807 — exemptions and prescriber dispensing
  61. [61]N.Y. Educ. Law § 6808 — registration
  62. [62]N.Y. Educ. Law § 6808-b — out-of-state establishments
  63. [63]N.Y. Educ. Law § 6802 — definitions
  64. [64]8 NYCRR § 63.6 — records and operating standards
  65. [65]8 NYCRR § 63.8 — nonresident establishments
  66. [66]8 NYCRR § 29.7 — unprofessional conduct in pharmacy
  67. [67]8 NYCRR § 64.7 — non-patient-specific regimens
  68. [68]NYSED — State Board for Pharmacy meeting agendas
  69. [69]Tex. Occ. Code § 562.152 — Compounding for Office Use
  70. [70]Tex. Occ. Code § 562.151 — definitions
  71. [71]Tex. Occ. Code § 562.152 (2025 edition)
  72. [72]Texas State Board of Pharmacy — Rules master file (compilation dated March 1, 2026)
  73. [73]Texas Register — February 2026 adopted rules, examining boards
  74. [74]Texas State Board of Pharmacy — recent adopted rule changes
  75. [75]49 Pa. Code § 27.601 — Compounding of preparations (official Pennsylvania Code)
  76. [76]Act 64 of 1972 — Controlled Substance, Drug, Device and Cosmetic Act (full text, Pennsylvania General Assembly)
  77. [77]MCL 333.17748b — Compounding for a prescriber to administer without a prescription
  78. [78]MCL 333.17748 — Licensure required to do business in this state
  79. [79]Michigan LARA — the published list of pharmacies authorized under section 17748b
  80. [80]RCW 18.64.011 — Definitions, including "manufacture" at (24) and "health care entity" at (16)
  81. [81]WAC 246-945-246 — Wholesaler licensing (outsourcing facilities)
  82. [82]Va. Code § 54.1-3410.2 — Compounding; the office-use provision at subsection C
  83. [83]Va. Code § 54.1-3455 — Schedule VI, capturing every drug labelled "Rx only"
  84. [84]T.C.A. § 63-10-204 — Definitions, including "compounding" at (6) and "dispense" at (14)
  85. [85]Tenn. Comp. R. & Regs. ch. 1140-01 — Introductory Rules (October 2025 revision)
  86. [86]Tenn. Comp. R. & Regs. ch. 1140-09 — the 5% licensure exemption at .01(3)(i)
  87. [87]Minn. Stat. § 151.01 — Definitions, including compounding at subd. 35 and prescription drug order at subd. 16
  88. [88]Minn. Stat. § 151.441 — Wholesale distribution definitions, including the "office use" exclusion
  89. [89]S.C. Code Ann. § 40-43-86 — compounding; subsection (CC) office use and institutional limbs
  90. [90]S.C. Code of Regulations Chapter 99 — Board of Pharmacy (R.99-43 permits, R.99-47 veterinary compounding)
  91. [91]S.C. State Register Vol. 50 — Doc. No. 5422 and the Chapter 99 Notice of Drafting
  92. [92]Ala. Code § 34-23-160 — Preparation of Compounded Drug Products for Prescriber’s Office Use; Labeling
  93. [93]Ala. Code § 34-23-150 — definitions, including manufacturing and reasonable amounts in inventory
  94. [94]Ala. Code § 34-23-11 — practitioners; personal compounding, dispensing and administering
  95. [95]Alabama State Board of Pharmacy — administrative code chapters 680-X-1, -2 and -3
  96. [96]Md. Code, Health Occ. § 12-403 — pharmacist practice; the office-use limb at (c)(22)
  97. [97]Md. Code, Health Occ. § 12-101 — definitions, including compounding and nonresident pharmacy
  98. [98]COMAR 10.34.19.19 — "Office Use" (Division of State Documents, full regulation text)
  99. [99]Md. Code, Health Occ. § 12-510 — compounding for veterinary practitioners
  100. [100]20 CSR 2220-2.400 — Compounding Standards of Practice (Missouri Secretary of State, current CSR)
  101. [101]RSMo Chapter 338 — Pharmacists and Pharmacies, including §§ 338.010, 338.220, 338.315
  102. [102]RSMo 338.095 — "prescription" and "drug order" defined; the exclusion at subsection 1
  103. [103]RSMo 334.100 — grounds for discipline, including the tied-supply provision at 2(22)
  104. [104]Wis. Admin. Code ch. Phar 15 — current chapter and the repeal-and-recreate note
  105. [105]Wis. Admin. Code ch. Phar 7 — practice of pharmacy (checked for office-use provisions)
  106. [106]Wis. Stat. § 450.01 — definitions, including compound, dispense and wholesale distribution
  107. [107]Wis. Stat. § 450.11 — prescription orders; the patient name and address requirement
  108. [108]IC 16-42-19-21 — legend drugs; the possession exemption and its two entity limbs
  109. [109]IC 16-42-19-11 — container labelling; the patient-name requirement at (a)(2)(C)
  110. [110]IC 25-26-13-29 — the pharmacy-permit offence relied on here
  111. [111]Indiana Professional Licensing Agency — Board of Pharmacy meeting agendas and minutes
  112. [112]NAC chapter 639 — the codified chapter, showing § 639.757 with only subsections 1–3
  113. [113]Adopted Regulation R053-24 — the amendatory text with its bracketed deletions
  114. [114]Adopted Regulation R100-23 — the earlier repeal and its Legislative Counsel’s Digest
  115. [115]NRS chapter 639 — including § 639.268(1) and the definitions at § 639.0125
  116. [116]Conn. Gen. Stat. § 20-633b — sterile compounding pharmacies (2026 supplement)
  117. [117]Conn. Gen. Stat. chapter 400j — Pharmacy, including §§ 20-634 and 21a-70 (base revision)
  118. [118]Regulations of Connecticut State Agencies § 20-576-71 — compounding (eRegulations portal)
  119. [119]Oklahoma Administrative Code Title 535 — including the revocation entries and OAC 535:15-7-2
  120. [120]Oklahoma State Board of Pharmacy — laws, rules and fee schedule
  121. [121]KRS § 315.010 — definitions, including compounding at subsection (6)
  122. [122]KRS § 315.036 — pharmacy operation; the "reasonable quantities" standard at (4)
  123. [123]KRS § 315.040 — exemptions; a practitioner keeping drugs needed in practice
  124. [124]201 KAR 2:311 — Compounding drugs for veterinary use, effective 2020-11-19
  125. [125]OAR 855-060-0004 — Drug Outlet Registration, including subsection (8)
  126. [126]OAR 855-183-0001 — the 2026 compounding division and its scope
  127. [127]Iowa Admin. Code chapter 481—550 — definitions, including "office use"
  128. [128]Iowa Admin. Code chapter 481—552 — pharmacy practice and compounding
  129. [129]Iowa Code chapter 155A — Pharmacy, including §§ 155A.13C and 155A.23
  130. [130]K.A.R. 68-13-4 — sterile preparations; the office-use permission at (m) and the legend at (l)
  131. [131]K.A.R. 68-13-3 — nonsterile preparations; the twin permission at (h) and the invoice duty at (i)
  132. [132]K.A.R. 68-20-18 — the controlled-substance channel rule at (b)(2)
  133. [133]Neb. Rev. Stat. § 38-2867.01 — compounding; office use as an enumerated purpose at (1)(c)
  134. [134]Neb. Rev. Stat. § 71-7454 — the 5% ceiling measured on transferor or transferee
  135. [135]Utah Code § 58-17b-624 — Prescription drugs; sale to a practitioner for office use
  136. [136]Utah Administrative Code R156-17b — Pharmacy Practice Act Rule, including R156-17b-624
  137. [137]Act 961 of 2025 (HB1801), enrolled — the enacted text creating Ark. Code § 17-92-121
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  139. [139]17 CAR § 160-2201 — standards for compounding, routing 503A work to the federal statute at (d)
  140. [140]17 CAR § 160-2601 — definitions, including the outsourcing-facility staffing requirement
  141. [141]Miss. Admin. Code Part 3001 — including Art. XXXI (compounding) and Art. XXXII (wholesale)
  142. [142]NMAC Title 16 Chapter 19 Part 30 — pharmacy practice, including the non-sterile veterinary grant
  143. [143]NMAC 16.19.8.7 — wholesale drug distribution definitions; the office-use exemption at Subsection DDD, Paragraph (5)
  144. [144]New Mexico Register, Vol. XXXVI Issue 22 (18 November 2025) — the amendment adding 16.19.36.16
  145. [145]M.G.L. c. 112 § 36E — the definition of operating as an outsourcing facility
  146. [146]M.G.L. c. 112 § 39F — cGMP standards and the FDA registration requirement
  147. [147]M.G.L. c. 112 § 39D — defined terms, including accountability documentation
  148. [148]RSA chapter 318 — Pharmacists and Pharmacies, including § 318:14-a (Compounding)
  149. [149]New Hampshire Board of Pharmacy rules index (Ph) — filing history including Ph 404
  150. [150]32 M.R.S. § 13702-A — Definitions, including "compounding" at subsection 4
  151. [151]R.I. Gen. Laws § 5-19.1-2 — definitions, including "compounding" at subsection (d)
  152. [152]216-RICR-40-15-1 — the pharmacy rule, including the compounding requirements at § 1.8
  153. [153]Administrative Rules for the Vermont Board of Pharmacy, effective 1 February 2026 — the dated file, because the undated one was overwritten in place
  154. [154]26 V.S.A. § 2061 — drug outlet registration and licensure classifications
  155. [155]24 Del. Admin. Code 2500 § 5.1.7 — compounded medications for office use (Registrar’s document file)
  156. [156]N.D. Admin. Code § 61-02-01-03(9) — "Compounding for office use" (Article 61-02, Pharmacies)
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  158. [158]North Dakota State Board of Pharmacy — minutes of 20 March 2025, Columbine Drug stipulated settlement
  159. [159]Idaho Code § 54-1732 — Violations and penalties, incl. (3)(d)(ii), the office-use exception
  160. [160]Idaho Code § 54-1704 — definitions, incl. (7) "Compounding"
  161. [161]Idaho Code § 54-1765 — Compounding drug preparations, general provisions
  162. [162]Idaho Administrative Bulletin, Vol. 25-7 (2 July 2025) — notice revoking IDAPA 24.36.01 in its entirety
  163. [163]Mont. Code Ann. § 37-7-101 — definitions, incl. (9) "Compounding" and its five limbs
  164. [164]Mont. Code Ann. § 37-7-103 — exemptions, incl. the practitioner exemption and its qualifying clause
  165. [165]Mont. Code Ann. § 37-7-602 — definitions for wholesale distribution, incl. the imported federal exclusions
  166. [166]MAR Notice No. 2026-131.1 — Board of Pharmacy notice of proposed rulemaking (pending, not law)
  167. [167]Montana Board of Pharmacy — rule notices page, where the proposal is published
  168. [168]South Dakota Board of Pharmacy — Laws and Rules Related to the Practice of Pharmacy (consolidated, dated 20 August 2026)
  169. [169]Wyoming State Board of Pharmacy — Pharmacy Act rules index, showing chapters 13 and 17 as repealed and chapter 22 in their place
  170. [170]Wyoming State Board of Pharmacy — "503B Outsourcing Facilities" licensing page (undated)
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  172. [172]W.S. Title 33 — Professions and Occupations, incl. § 33-24-136(a) (prescription label contents)
  173. [173]W. Va. Code § 30-5-4 — definitions, incl. "Compounding" and "Manufacturing"
  174. [174]W. Va. Code § 30-5-25 — permit for manufacture and packaging of drugs
  175. [175]W. Va. Code § 60A-8-5 — wholesale distribution defined, incl. the five per cent pharmacy-to-pharmacy clause
  176. [176]W. Va. Board of Pharmacy — Facilities Overview, showing the licence types the Board publishes
  177. [177]Alaska Bd. of Pharmacy, Statutes and Regulations compilation (April 2025) — containing the Good Compounding Practices pamphlet (Feb. 2008) reproduced in full, and the editor’s note on obtaining it
  178. [178]12 AAC 52 — Board of Pharmacy regulations, incl. § 52.440 (incorporation), § 52.695(5) (five per cent) and § 52.020 (applications)
  179. [179]12 AAC 52.440 — history and authority, from the Legislature’s cross-reference endpoint
  180. [180]AS 08.80 — Pharmacists and Pharmacies, incl. § 08.80.480(17) (manufacturing)
  181. [181]HRS § 461-1 — definitions, incl. "Institutional facility" and its thirteenth item
  182. [182]HAR Title 16 ch. 95 — Board of Pharmacy rules, incl. § 16-95-2 (definitions), § 16-95-81 (emergency kits) and § 16-95-110 (discipline)
  183. [183]HRS § 328-112 — definitions for wholesale distribution, incl. the five per cent clause and the prescription exclusion
  184. [184]HRS § 461-19 — application of the pharmacy chapter to practitioners
  185. [185]D.C. Official Code Title 48, ch. 7 — Drug Manufacture and Distribution Licensure, incl. §§ 48-701 and 48-702
  186. [186]22-B DCMR § 1999 — the pharmacy chapter’s definitions section record, effective 1 April 2022 (the text opens through the publisher’s own viewer)
  187. [187]DC Health — New License Application Checklist for Manufacturers, Distributors and Wholesalers (rev. 15 Jan. 2025)