NY State Assembly Bill 2023-A7304A

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to codes
May 25, 2023	print number 7304a
May 25, 2023	amend and recommit to codes
May 24, 2023	reported referred to codes
May 17, 2023	referred to insurance

Bill Amendments

Original

A (Active)

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2023-A7304 - Details

Current Committee:: Assembly Codes
Law Section:: Insurance Law
Laws Affected:: Add Art 30 §§3001 - 3010, Ins L; amd §99-oo, St Fin L

2023-A7304 - Summary

Establishes the prescription drug supply chain transparency act of 2023; requires pharmacy services administrative organizations, pharmacy switch companies and rebate aggregators to register with the insurance department and to provide certain disclosures relating to the ownership and activities of such entities; relates to deposits into the pharmacy benefit manager regulatory fund.

2023-A7304 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7304
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2023
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Insurance
 
 AN  ACT  to  amend  the  insurance law, in relation to prescription drug
   supply chain transparency; and to amend  the  state  finance  law,  in
   relation to deposits into the pharmacy benefit manager regulatory fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall  be  known  and  may  be  cited  as  the
 "prescription drug supply chain transparency act of 2023".
   §  2.  The insurance law is amended by adding a new article 30 to read
 as follows:
                                ARTICLE 30
                PRESCRIPTION DRUG SUPPLY CHAIN TRANSPARENCY
 SECTION 3001. DEFINITIONS.
         3002. ELECTRONIC FILING REQUIREMENT.
         3003. SPECIAL REPORTS AND OTHER POWERS.
         3004. REGISTRATION OF PHARMACY SERVICES ADMINISTRATIVE ORGANIZA-
                 TIONS.
         3005. REQUIRED DISCLOSURES BY PHARMACY  SERVICES  ADMINISTRATIVE
                 ORGANIZATIONS.
         3006. REGISTRATION OF PHARMACY SWITCH COMPANIES.
         3007. REQUIRED DISCLOSURES BY PHARMACY SWITCH COMPANIES.
         3008. REGISTRATION OF REBATE AGGREGATORS.
         3009. REQUIRED DISCLOSURES BY REBATE AGGREGATORS.
         3010. DEPOSIT OF PENALTIES AND FEES.
   §  3001.  DEFINITIONS. (A) FOR THE PURPOSES OF THIS ARTICLE, THE DEFI-
 NITIONS CONTAINED IN SECTION TWO HUNDRED EIGHTY-A OF THE  PUBLIC  HEALTH
 LAW SHALL APPLY TO THIS ARTICLE AS IF SPECIFICALLY SET FORTH HEREIN.
   (B)  FOR  THE PURPOSES OF THIS ARTICLE, THE FOLLOWING WORDS OR PHRASES
 SHALL  HAVE  THE  FOLLOWING  MEANINGS,  UNLESS  THE  CONTEXT   OTHERWISE
 REQUIRES:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11150-01-3

 A. 7304                             2
 
   (1)  "MANUFACTURER"  MEANS  AN  ENTITY  ENGAGED  IN THE MANUFACTURE OF
 PRESCRIPTION DRUGS SOLD IN THIS STATE.
   (2) "PHARMACY SERVICES ADMINISTRATIVE ORGANIZATION" OR "PSAO" MEANS AN
 ENTITY THAT IS OPERATING IN THIS STATE AND THAT CONTRACTS WITH A PHARMA-
 CY  FOR THE PURPOSE OF CONDUCTING BUSINESS ON THE PHARMACY'S BEHALF WITH
 WHOLESALERS, DISTRIBUTORS, HEALTH PLANS OR PHARMACY BENEFIT MANAGERS.
   (3) "REBATE AGGREGATOR" MEANS AN ENTITY THAT PROVIDES FORMULARY REBATE
 ADMINISTRATIVE SERVICES FOR PHARMACY BENEFIT MANAGERS OR OTHERWISE NEGO-
 TIATES REBATES WITH MANUFACTURERS ON BEHALF OF PHARMACY  BENEFIT  MANAG-
 ERS.
   (4)  "SWITCH  COMPANY"  MEANS  AN  ENTITY THAT ACTS AS AN INTERMEDIARY
 BETWEEN A PHARMACY AND A PHARMACY BENEFIT MANAGER OR HEALTH PLAN FOR THE
 PURPOSE OF ROUTING INSURANCE CLAIMS DATA TO OR FROM A PHARMACY.
   § 3002. ELECTRONIC FILING REQUIREMENT. NOTWITHSTANDING ANY LAW TO  THE
 CONTRARY,  ANY FILING OR SUBMISSION REQUIRED UNDER THIS ARTICLE SHALL BE
 MADE ELECTRONICALLY UNLESS THE ENTITY REQUIRED TO MAKE  SUCH  FILING  OR
 SUBMISSION  DEMONSTRATES  UNDUE HARDSHIP, IMPRACTICABILITY OR GOOD CAUSE
 AS REQUIRED BY SECTION THREE HUNDRED SIXTEEN OF THIS CHAPTER.
   § 3003. SPECIAL REPORTS AND OTHER POWERS. (A) THE  SUPERINTENDENT  MAY
 ADDRESS  TO  ANY ENTITY REQUIRED TO REGISTER OR REPORT INFORMATION UNDER
 THIS ARTICLE, OR ITS OFFICERS, OR ANY  AGENT  OR  EMPLOYEE  THEREOF  ANY
 INQUIRY  IN  RELATION TO ITS BUSINESS OR ANY MATTER CONNECTED THEREWITH.
 EVERY INDIVIDUAL OR ENTITY SO ADDRESSED SHALL REPLY IN WRITING  TO  SUCH
 INQUIRY PROMPTLY AND TRUTHFULLY, AND SUCH REPLY SHALL BE, IF REQUIRED BY
 THE SUPERINTENDENT, SUBSCRIBED BY SUCH INDIVIDUAL, OR BY SUCH OFFICER OR
 OFFICERS  OF  THE  ENTITY, OR BY SUCH AGENT OR EMPLOYEE OF THE ENTITY AS
 THE SUPERINTENDENT SHALL DESIGNATE, AND AFFIRMED BY THEM AS  TRUE  UNDER
 THE PENALTIES OF PERJURY.
   (B) IN THE EVENT ANY INDIVIDUAL OR ENTITY DOES NOT SUBMIT A GOOD FAITH
 RESPONSE  TO  AN  INQUIRY FROM THE SUPERINTENDENT PURSUANT TO SUBSECTION
 (A) OF THIS SECTION WITHIN A TIME PERIOD SPECIFIED BY THE SUPERINTENDENT
 OF NOT LESS THAN FIFTEEN BUSINESS DAYS, THE SUPERINTENDENT IS AUTHORIZED
 TO LEVY A CIVIL PENALTY, AFTER NOTICE AND HEARING, AGAINST  SUCH  PERSON
 NOT  TO EXCEED ONE THOUSAND DOLLARS PER DAY FOR EACH DAY BEYOND THE DATE
 SPECIFIED BY THE SUPERINTENDENT FOR RESPONSE TO THE INQUIRY.
   (C) IN ADDITION TO ALL OTHER POWERS GRANTED BY LAW, THE SUPERINTENDENT
 IS HEREBY EMPOWERED TO ORDER ANY PERSON OR ENTITY REQUIRED  TO  REGISTER
 OR  REPORT  INFORMATION  UNDER  THIS  ARTICLE  TO  CEASE AND DESIST FROM
 VIOLATIONS OF THIS ARTICLE AND, FOLLOWING ISSUANCE OF SUCH AN ORDER, MAY
 BRING AND MAINTAIN AN ACTION IN ANY COURT OF COMPETENT JURISDICTION  FOR
 AN INJUNCTION OR OTHER APPROPRIATE RELIEF TO ENJOIN THREATENED OR EXIST-
 ING  VIOLATIONS  OF  THIS  ARTICLE, OR OF THE SUPERINTENDENT'S ORDERS OR
 REGULATIONS. SUCH ACTION MAY SPECIFICALLY SEEK RESTITUTION ON BEHALF  OF
 PERSONS  AGGRIEVED  BY  A  VIOLATION  OF THIS ARTICLE OR ORDERS OR REGU-
 LATIONS OF THE SUPERINTENDENT.
   (D) IN ADDITION TO ALL OTHER POWERS GRANTED BY LAW, WHENEVER IT  SHALL
 APPEAR  TO  THE SUPERINTENDENT, EITHER UPON COMPLAINT OR OTHERWISE, THAT
 IN THE COURSE OF ITS BUSINESS WITHIN OR FROM THIS STATE THAT ANY  ENTITY
 SHALL  HAVE  EMPLOYED,  OR  EMPLOYS,  OR IS ABOUT TO EMPLOY ANY BUSINESS
 PRACTICE OR SHALL HAVE PERFORMED, OR  IS  PERFORMING,  OR  IS  ABOUT  TO
 PERFORM ANY ACT IN VIOLATION OF THIS ARTICLE OR ORDERS OR REGULATIONS OF
 THE  SUPERINTENDENT,  OR  THE  SUPERINTENDENT  BELIEVES  IT TO BE IN THE
 PUBLIC INTEREST THAT AN INVESTIGATION BE MADE, THE  SUPERINTENDENT  MAY,
 IN THE SUPERINTENDENT'S DISCRETION, EITHER REQUIRE OR PERMIT SUCH ENTITY
 OR  ANY  AGENT OR EMPLOYEE THEREOF, TO FILE WITH THE DEPARTMENT A STATE-
 MENT IN WRITING UNDER OATH OR OTHERWISE AS TO ALL THE FACTS AND  CIRCUM-
 A. 7304                             3
 
 STANCES  CONCERNING  THE SUBJECT MATTER THAT THE SUPERINTENDENT BELIEVES
 IS IN THE PUBLIC INTEREST  TO  INVESTIGATE  AND  FOR  SUCH  PURPOSE  MAY
 PRESCRIBE  FORMS  UPON  WHICH  SUCH STATEMENTS SHALL BE MADE. THE SUPER-
 INTENDENT MAY ALSO REQUIRE SUCH OTHER DATA AND INFORMATION AS THE SUPER-
 INTENDENT  MAY  DEEM  RELEVANT AND MAY MAKE SUCH SPECIAL AND INDEPENDENT
 INVESTIGATIONS AS THE SUPERINTENDENT MAY DEEM  NECESSARY  IN  CONNECTION
 WITH  THE  MATTER.  IT  SHALL  BE THE DUTY OF ALL PUBLIC OFFICERS, THEIR
 DEPUTIES, ASSISTANTS, SUBORDINATES, CLERKS OR EMPLOYEES  AND  ALL  OTHER
 PERSONS  TO  RENDER AND FURNISH TO THE SUPERINTENDENT, WHEN REQUESTED IN
 CONNECTION WITH AN INVESTIGATION UNDER THIS SUBSECTION, ALL  INFORMATION
 AND ASSISTANCE IN THEIR POSSESSION OR WITHIN THEIR POWER.
   (E)  ANY  ENTITY  WHO VIOLATES AN ORDER UNDER SUBSECTION (C) OR (D) OF
 THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY,  AFTER  NOTICE  AND  A
 HEARING,  OF NOT MORE THAN TEN THOUSAND DOLLARS PER ACT IN VIOLATION, IN
 ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW.
   (F) ANY COMMUNICATIONS OR DOCUMENTS SENT  OR  RECEIVED  IN  CONNECTION
 WITH  AN INVESTIGATION UNDER THIS ARTICLE AND ANY MATERIALS REFERRING TO
 SUCH INFORMATION IN THE POSSESSION OF THE SUPERINTENDENT SHALL BE CONFI-
 DENTIAL AND NOT SUBJECT TO DISCLOSURE.   NOTWITHSTANDING THE  FOREGOING,
 THE SUPERINTENDENT MAY RELEASE SUCH CONFIDENTIAL COMMUNICATIONS OR DOCU-
 MENTS  TO  THE  EXTENT  NECESSARY  TO ADDRESS CRIMINAL OR OTHER UNLAWFUL
 BEHAVIOR. THIS SUBSECTION SHALL NOT APPLY TO INFORMATION, DOCUMENTS  AND
 MATERIALS  IN  THE  POSSESSION  AND UNDER THE CONTROL OF AN ENTITY OTHER
 THAN THE SUPERINTENDENT.
   § 3004. REGISTRATION OF  PHARMACY  SERVICES  ADMINISTRATIVE  ORGANIZA-
 TIONS. (A) NO PSAO SHALL OPERATE IN THIS STATE AFTER MARCH THIRTY-FIRST,
 TWO THOUSAND TWENTY-FOUR WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
   (B)  A  PSAO  SEEKING  REGISTRATION  SHALL  FILE, IN A FORM AND MANNER
 DETERMINED BY THE SUPERINTENDENT, INFORMATION THAT INCLUDES AT  A  MINI-
 MUM:
   (1) THE LEGAL NAME OF THE ENTITY;
   (2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
   (3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
   (4)  THE  PHARMACIES  LOCATED  WITHIN THIS STATE WITH WHICH THE ENTITY
 PROVIDES SERVICES;
   (5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
   (6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
   (7) AN AGENT FOR SERVICE OF PROCESS;
   (8) A SET OF AUDITED FINANCIALS FOR THE PRIOR FISCAL YEAR; AND
   (9) SUCH OTHER INFORMATION AS THE SUPERINTENDENT SHALL REQUIRE.
   (C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF THE  SUPER-
 INTENDENT DETERMINES THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED
 IN  A  SATISFACTORY  FORM  AND  HAS  RECEIVED PAYMENT OF A NONREFUNDABLE
 REGISTRATION FEE OF FIVE THOUSAND DOLLARS.  NOTWITHSTANDING THE REQUIRE-
 MENTS OF THIS SUBSECTION THE SUPERINTENDENT MAY,  IN  HIS  OR  HER  SOLE
 DISCRETION  AND  UPON  GOOD CAUSE SHOWN, REDUCE THE REGISTRATION FEE FOR
 ANY PSAO TO AN AMOUNT NOT LESS THAN ONE-TENTH OF ONE PERCENT OF THE FEES
 EARNED BY THE PSAO FROM ALL PHARMACIES LOCATED IN NEW YORK IN THE  PRIOR
 CALENDAR YEAR.
   (D)  IF  ANY  OF  THE  INFORMATION CONTAINED IN THE REGISTRATION SHALL
 CHANGE, THE PSAO SHALL NOTIFY THE DEPARTMENT OF SUCH CHANGE  IN  A  FORM
 AND  MANNER  PRESCRIBED  BY  THE  SUPERINTENDENT FOR SUCH PURPOSE WITHIN
 TWENTY-ONE DAYS OF THE CHANGE.  THE REQUIREMENT TO UPDATE SHALL  INCLUDE
 THE  FILING  OF  A  NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR ANY
 CHANGE OTHER THAN NEW AUDITED FINANCIALS, THE FILING SHALL NOT BE DEEMED
 COMPLETE UNLESS ACCOMPANIED BY A PAYMENT OF A FEE OF FIFTY DOLLARS.
 A. 7304                             4
 
   (E) EVERY PSAO REGISTRATION ISSUED  PURSUANT  TO  THIS  SECTION  SHALL
 EXPIRE  TWELVE  MONTHS  AFTER  THE  DATE  OF ISSUE. A PSAO MAY RENEW ITS
 REGISTRATION FOR ANOTHER TWELVE MONTHS UPON THE FILING OF AN APPLICATION
 IN CONFORMITY WITH THIS SECTION.
   (F)  BEFORE  A PSAO REGISTRATION SHALL BE RENEWED, THE PSAO SHALL FILE
 AN APPLICATION FOR RENEWAL IN SUCH FORM AS THE SUPERINTENDENT PRESCRIBES
 AND PAY A FEE OF FIVE THOUSAND DOLLARS. NOTWITHSTANDING THE REQUIREMENTS
 OF  THIS  SUBSECTION,  THE  SUPERINTENDENT  MAY,  IN  HIS  OR  HER  SOLE
 DISCRETION  AND  UPON  GOOD CAUSE SHOWN, REDUCE THE REGISTRATION FEE FOR
 ANY PSAO TO AN AMOUNT NOT LESS THAN ONE-TENTH OF ONE PERCENT OF THE FEES
 EARNED BY THE PSAO FROM ALL PHARMACIES LOCATED IN NEW YORK IN THE  PRIOR
 CALENDAR YEAR.
   (G)  IF  A PSAO FILES A RENEWAL APPLICATION WITH THE SUPERINTENDENT AT
 LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN THE REGISTRATION  SOUGHT  TO
 BE  RENEWED  SHALL  CONTINUE  IN  FULL FORCE AND EFFECT EITHER UNTIL THE
 ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL REGISTRATION  APPLIED  FOR
 OR  UNTIL FIVE DAYS AFTER THE SUPERINTENDENT SHALL HAVE REFUSED TO ISSUE
 SUCH RENEWAL REGISTRATION AND GIVEN NOTICE OF SUCH REFUSAL TO THE APPLI-
 CANT, OTHERWISE THE PSAO REGISTRATION SHALL EXPIRE  AND  THE  REGISTRANT
 SHALL HAVE NO EXPECTATION OF RENEWAL.
   §  3005.  REQUIRED  DISCLOSURES  BY  PHARMACY  SERVICES ADMINISTRATIVE
 ORGANIZATIONS. (A) (1) EACH PSAO  SHALL  AT  THE  TIME  OF  REGISTRATION
 PURSUANT  TO SECTION THREE THOUSAND FOUR OF THIS ARTICLE DISCLOSE TO THE
 DEPARTMENT THE EXTENT OF ANY OWNERSHIP OR CONTROL OF THE PSAO OR BY  THE
 PSAO OF ANY PARENT COMPANY, SUBSIDIARY, OR AFFILIATE THAT:
   (A) PROVIDES PHARMACY SERVICES;
   (B) PROVIDES PRESCRIPTION DRUG OR DEVICE SERVICES; OR
   (C)  MANUFACTURES,  SELLS,  OR DISTRIBUTES PRESCRIPTION DRUGS, BIOLOG-
 ICALS, OR MEDICAL DEVICES.
   (2) A PSAO SHALL FURNISH A COPY OF THE DISCLOSURE MADE AT THE TIME  OF
 REGISTRATION TO ALL PHARMACIES LOCATED IN THIS STATE WITH WHICH IT HAS A
 CONTRACT  IN  PLACE  AT  THE  TIME OF THE REGISTRATION. A PSAO SHALL NOT
 COLLECT ANY FEE FOR ANY SERVICES PROVIDED TO A PHARMACY FOR  ANY  PERIOD
 BEGINNING  FIVE DAYS AFTER THE FILING OF A REGISTRATION WITH THE DEPART-
 MENT UNTIL SUCH DISCLOSURE IS SENT TO THE PHARMACY.
   (3) NOT LATER THAN APRIL FIRST, TWO THOUSAND TWENTY-FIVE, THE  DEPART-
 MENT  SHALL  PUBLISH  ALL  DISCLOSURES  RECEIVED UNDER THIS SECTION ON A
 PUBLICLY ACCESSIBLE ONLINE DATABASE, WHICH SHALL BE SEARCHABLE AT  LEAST
 BY  PSAO  NAME. ALL DISCLOSURES SHALL BE POSTED NOT LATER THAN TEN BUSI-
 NESS DAYS AFTER A REGISTRATION IS ACCEPTED AND SHALL REMAIN ON THE DATA-
 BASE FOR THE DURATION OF THE REGISTRATION OF THE PSAO.
   (B) (1) PRIOR TO ENTERING INTO ANY CONTRACT WITH ANY PHARMACY  LOCATED
 IN  THIS STATE, INCLUDING A CONTRACT WITH A GROUP OF PHARMACIES AT LEAST
 ONE OF WHICH IS IN THIS STATE, A PSAO SHALL FURNISH TO  THE  PHARMACY  A
 WRITTEN  DISCLOSURE  OF  THE  INFORMATION  REQUIRED  TO  BE DISCLOSED IN
 SUBSECTION (A) OF THIS SECTION. NO CONTRACT WITH  A  PHARMACY  SHALL  BE
 ENFORCEABLE  AGAINST  THE PHARMACY BY A PSAO UNLESS SUCH PSAO MAKES SUCH
 DISCLOSURE PRIOR TO THE  AGREEMENT.  IN  ADDITION  TO  ANY  OTHER  POWER
 CONFERRED  BY  LAW, THE SUPERINTENDENT MAY PRESCRIBE THE FORM AND MANNER
 OF SUCH DISCLOSURES.
   (2) A PSAO THAT OWNS, IS OWNED BY, IN WHOLE OR IN  PART,  OR  CONTROLS
 ANY  ENTITY THAT MANUFACTURES, SELLS, OR DISTRIBUTES PRESCRIPTION DRUGS,
 BIOLOGICALS, OR MEDICAL DEVICES SHALL NOT, AS A  CONDITION  OF  ENTERING
 INTO  A CONTRACT WITH A PHARMACY, REQUIRE THAT THE PHARMACY PURCHASE ANY
 DRUGS OR MEDICAL DEVICES FROM AN ENTITY WITH WHICH THE PSAO HAS A FINAN-
 CIAL INTEREST, OR AN ENTITY WITH AN OWNERSHIP INTEREST IN THE PSAO.
 A. 7304                             5
 
   (3) NO PSAO SHALL ENTER INTO A CONTRACT WITH A PHARMACY IN THIS  STATE
 UNLESS  SUCH  CONTRACT  SHALL  PROVIDE  THAT  ALL REMITTANCES FOR CLAIMS
 SUBMITTED BY A PHARMACY BENEFIT MANAGER OR THIRD-PARTY PAYER  ON  BEHALF
 OF  A  PHARMACY  TO  THE PSAO SHALL BE PASSED THROUGH BY THE PSAO TO THE
 PHARMACY  WITHIN  A  REASONABLE  AMOUNT  OF  TIME,  ESTABLISHED  IN  THE
 CONTRACT, AFTER RECEIPT OF THE REMITTANCE BY THE PSAO FROM THE  PHARMACY
 BENEFIT MANAGER OR THIRD-PARTY PAYER.
   (C)  (1)  A  PSAO  THAT  PROVIDES,  ACCEPTS,  OR PROCESSES A DISCOUNT,
 CONCESSION, OR PRODUCT VOUCHER, TO REDUCE,  DIRECTLY  OR  INDIRECTLY,  A
 COVERED  INDIVIDUAL'S  OUT-OF-POCKET  EXPENSE FOR THE ORDER, DISPENSING,
 SUBSTITUTION, SALE, OR PURCHASE OF A PRESCRIPTION DRUG SHALL MAKE AVAIL-
 ABLE TO EACH PHARMACY IN THIS STATE THAT IT CONTRACTS WITH OR  WHICH  IT
 CONTRACTED  WITH  IN  THE  PRIOR  CALENDAR  YEAR,  AN ANNUAL REPORT THAT
 INCLUDES:
   (A) AN AGGREGATED TOTAL OF ALL SUCH TRANSACTIONS, BY THE PHARMACY; AND
   (B) AN AGGREGATED TOTAL OF ANY PAYMENTS RECEIVED BY  THE  PSAO  ITSELF
 FOR  PROVIDING,  PROCESSING,  OR  ACCEPTING ANY DISCOUNT, CONCESSION, OR
 PRODUCT VOUCHER ON BEHALF OF A PHARMACY.
   (2) A PHARMACY IN THIS STATE THAT IS A PARTY TO A CONTRACT WITH A PSAO
 SHALL HAVE A RIGHT TO AN ACCOUNTING OF THE FUNDS RECEIVED  BY  THE  PSAO
 FOR  GOODS  OR SERVICES PROVIDED BY THE PHARMACY TO PATIENTS AND CUSTOM-
 ERS.
   § 3006. REGISTRATION OF  PHARMACY  SWITCH  COMPANIES.  (A)  NO  SWITCH
 COMPANY MAY DO BUSINESS IN THIS STATE AFTER JUNE THIRTIETH, TWO THOUSAND
 TWENTY-FOUR WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
   (B)  A SWITCH COMPANY SEEKING REGISTRATION SHALL FILE WITH THE DEPART-
 MENT, IN A FORM AND MANNER DETERMINED BY THE SUPERINTENDENT, INFORMATION
 INCLUDING BUT NOT LIMITED TO:
   (1) THE LEGAL NAME OF THE ENTITY;
   (2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
   (3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
   (4) THE PHARMACIES LOCATED WITHIN THIS STATE AND THE PHARMACY  BENEFIT
 MANAGERS LICENSED IN THIS STATE WITH WHICH THE ENTITY PROVIDES SERVICES;
   (5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
   (6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
   (7) AN AGENT FOR SERVICE OF PROCESS;
   (8) A SET OF AUDITED FINANCIALS FOR THE PRIOR FISCAL YEAR; AND
   (9)  SUCH  OTHER  INFORMATION OR DOCUMENTS AS THE SUPERINTENDENT SHALL
 REQUIRE.
   (C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF HE  OR  SHE
 DEEMS THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED IN A SATISFAC-
 TORY  FORM AND MANNER AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE REGIS-
 TRATION FEE OF ONE THOUSAND DOLLARS.
   (D) IF ANY OF THE INFORMATION  CONTAINED  IN  THE  REGISTRATION  SHALL
 CHANGE,  THE SWITCH COMPANY SHALL NOTIFY THE DEPARTMENT OF THE CHANGE IN
 A FORM AND MANNER PRESCRIBED BY  THE  SUPERINTENDENT  FOR  SUCH  PURPOSE
 WITHIN  TWENTY-ONE DAYS OF THE CHANGE.  SUCH REQUIREMENT TO UPDATE SHALL
 INCLUDE THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR
 ANY CHANGE OTHER THAN NEW AUDITED FINANCIALS, THE FILING  SHALL  NOT  BE
 DEEMED  COMPLETE  UNLESS  ACCOMPANIED  BY  A  PAYMENT  OF A FEE OF FIFTY
 DOLLARS.
   (E) EVERY PHARMACY SWITCH COMPANY'S REGISTRATION SHALL  EXPIRE  TWELVE
 MONTHS  AFTER  THE  DATE OF ISSUE. EVERY REGISTRATION ISSUED PURSUANT TO
 THIS SECTION MAY BE RENEWED FOR THE ENSUING PERIOD OF TWELVE MONTHS UPON
 THE FILING OF AN APPLICATION IN CONFORMITY WITH THIS SECTION.
 A. 7304                             6
 
   (F) BEFORE A PHARMACY SWITCH COMPANY'S REGISTRATION SHALL BE  RENEWED,
 THE  PHARMACY  SWITCH  COMPANY  SHALL PROPERLY FILE IN THE OFFICE OF THE
 SUPERINTENDENT AN APPLICATION FOR RENEWAL IN SUCH  FORM  AS  THE  SUPER-
 INTENDENT PRESCRIBES AND PAY A FEE OF ONE THOUSAND DOLLARS.
   (G) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
 WITH  THE  SUPERINTENDENT AT LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN
 THE REGISTRATION SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL  FORCE  AND
 EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
 REGISTRATION APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT
 SHALL  HAVE  REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND GIVEN NOTICE
 OF SUCH REFUSAL TO  THE  APPLICANT,  OTHERWISE  THE  REGISTRATION  SHALL
 EXPIRE AND THE REGISTRANT SHALL HAVE NO EXPECTATION OF RENEWAL.
   §  3007.  REQUIRED  DISCLOSURES BY PHARMACY SWITCH COMPANIES. (A) EACH
 SWITCH COMPANY SHALL ANNUALLY DISCLOSE TO THE DEPARTMENT, IN A FORM  AND
 MANNER  PRESCRIBED BY THE SUPERINTENDENT, SUCH INFORMATION AS THE SUPER-
 INTENDENT DEEMS NECESSARY FOR THE PROPER SUPERVISION  OF  THE  INDUSTRY.
 SUCH INFORMATION SHALL INCLUDE:
   (1)  A LIST OF SERVICES THE SWITCH COMPANY PROVIDES AND THE INDUSTRIES
 TO WHICH THEY ARE PROVIDED;
   (2) INFORMATION ON ELECTRONIC VOUCHER SERVICES PROVIDED BY THE  SWITCH
 COMPANY, INCLUDING:
   (A) A LIST OF MANUFACTURERS THAT THE SWITCH COMPANY HAS CONTRACTS WITH
 OR FOR WHICH IT TRANSMITS ELECTRONIC VOUCHERS;
   (B) A LIST OF MEDICATIONS AND THE NATIONAL DRUG CODES (NDCS) FOR WHICH
 THE SWITCH COMPANY MAY APPLY ELECTRONIC VOUCHERS; AND
   (C)  THE TOTAL AMOUNT OF MONEY COLLECTED FROM MANUFACTURERS RELATED TO
 TRANSMISSION OF ELECTRONIC VOUCHERS; AND
   (3) THE NUMBER OF TRANSACTIONS PROCESSED IN THIS STATE AND  THE  TOTAL
 AMOUNT OF REVENUE ATTRIBUTABLE TO THOSE TRANSACTIONS.
   (B)  A  SWITCH COMPANY SHALL DISCLOSE TO EACH PHARMACY BENEFIT MANAGER
 WITH WHICH IT DOES BUSINESS ANY INSTANCE IN WHICH AN ELECTRONIC  VOUCHER
 WAS APPLIED IN THE COURSE OF ROUTING THE CLAIM.
   §  3008.  REGISTRATION OF REBATE AGGREGATORS. (A) NO REBATE AGGREGATOR
 MAY DO BUSINESS IN THIS STATE AFTER SEPTEMBER  THIRTIETH,  TWO  THOUSAND
 TWENTY-FOUR WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
   (B) A REBATE AGGREGATOR SEEKING REGISTRATION SHALL FILE, IN A FORM AND
 MANNER  DETERMINED  BY THE SUPERINTENDENT, INFORMATION INCLUDING BUT NOT
 LIMITED TO:
   (1) THE LEGAL NAME OF THE ENTITY;
   (2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
   (3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
   (4) THE HEALTH PLANS AND THE PHARMACY  BENEFIT  MANAGERS  LICENSED  IN
 THIS STATE FOR WHICH THE ENTITY PROVIDES SERVICES;
   (5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
   (6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
   (7) AN AGENT FOR SERVICE OF PROCESS;
   (8) A SET OF AUDITED FINANCIALS FOR THE PRIOR FISCAL YEAR; AND
   (9)  SUCH  OTHER  INFORMATION OR DOCUMENTS AS THE SUPERINTENDENT SHALL
 REQUIRE.
   (C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF HE  OR  SHE
 DEEMS THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED IN A SATISFAC-
 TORY  FORM AND MANNER AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE REGIS-
 TRATION FEE OF ONE THOUSAND DOLLARS.
   (D) IF ANY OF THE INFORMATION  CONTAINED  IN  THE  REGISTRATION  SHALL
 CHANGE  THE REBATE AGGREGATOR SHALL NOTIFY THE DEPARTMENT OF SUCH CHANGE
 IN A FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT FOR  SUCH  PURPOSE
 A. 7304                             7
 
 WITHIN  TWENTY-ONE  DAYS OF THE CHANGE. SUCH REQUIREMENT TO UPDATE SHALL
 INCLUDE THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR
 ANY CHANGE OTHER THAN NEW AUDITED FINANCIALS, THE FILING  SHALL  NOT  BE
 DEEMED  COMPLETE  UNLESS  ACCOMPANIED  BY  A  PAYMENT  OF A FEE OF FIFTY
 DOLLARS.
   (E) EVERY REBATE AGGREGATOR'S REGISTRATION SHALL EXPIRE TWELVE  MONTHS
 AFTER  THE  DATE  OF  ISSUE.  EVERY REGISTRATION ISSUED PURSUANT TO THIS
 SECTION MAY BE RENEWED FOR THE ENSUING PERIOD OF TWELVE MONTHS UPON  THE
 FILING OF AN APPLICATION IN CONFORMITY WITH THIS SECTION.
   (F)  BEFORE  A  REBATE AGGREGATOR'S REGISTRATION SHALL BE RENEWED, THE
 REBATE AGGREGATOR SHALL PROPERLY FILE IN THE OFFICE OF  THE  SUPERINTEN-
 DENT  AN  APPLICATION  FOR  RENEWAL  IN  SUCH FORM AS THE SUPERINTENDENT
 PRESCRIBES AND PAY A FEE OF ONE THOUSAND DOLLARS.
   (G) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
 WITH THE SUPERINTENDENT AT LEAST ONE MONTH BEFORE ITS  EXPIRATION,  THEN
 THE  REGISTRATION  SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
 EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT  OF  THE  RENEWAL
 REGISTRATION  APPLIED  FOR  OR  UNTIL FIVE DAYS AFTER THE SUPERINTENDENT
 SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND  GIVEN  NOTICE
 OF  SUCH  REFUSAL  TO  THE  APPLICANT,  OTHERWISE THE REGISTRATION SHALL
 EXPIRE AND THE REGISTRANT SHALL HAVE NO EXPECTATION OF RENEWAL.
   § 3009. REQUIRED DISCLOSURES BY REBATE AGGREGATORS.  (A)  EACH  REBATE
 AGGREGATOR  THAT  HAS  A CONTRACT OR ARRANGEMENT WITH A PHARMACY BENEFIT
 MANAGER SERVING A HEALTH PLAN SHALL, ON AN  ANNUAL  BASIS,  DISCLOSE  IN
 WRITING TO THE HEALTH PLAN THE FOLLOWING:
   (1)  FEE  STRUCTURE  PROVISIONS OF ANY CONTRACT OR ARRANGEMENT BETWEEN
 THE REBATE AGGREGATOR AND PHARMACY BENEFIT MANAGER OR DRUG MANUFACTURER,
 INCLUDING:
   (A) FEES COLLECTED FOR AGGREGATING REBATES DUE TO THE HEALTH PLAN; AND
   (B) SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE BY  REGU-
 LATION; AND
   (2)   QUANTIFICATION   OF   INFLATIONARY  PAYMENTS,  CREDITS,  GRANTS,
 REIMBURSEMENTS, OTHER FINANCIAL  OR  OTHER  REIMBURSEMENTS,  INCENTIVES,
 INDUCEMENTS, REFUNDS OR OTHER BENEFITS RECEIVED BY THE REBATE AGGREGATOR
 FROM THE DRUG MANUFACTURER AND RETAINED BY THE REBATE AGGREGATOR, WHETH-
 ER REFERRED TO AS A REBATE, A DISCOUNT, OR OTHERWISE.
   (B)  (1)  EACH  REBATE  AGGREGATOR SHALL, AT THE TIME OF REGISTRATION,
 DISCLOSE TO THE DEPARTMENT THE EXTENT OF ANY OWNERSHIP OR CONTROL OF THE
 REBATE AGGREGATOR OR BY THE REBATE AGGREGATOR  OF  ANY  PARENT  COMPANY,
 SUBSIDIARY,  OR  OTHER  AFFILIATED  ORGANIZATION  THAT PROVIDES PHARMACY
 BENEFIT MANAGEMENT SERVICES.
   (2) EACH REBATE AGGREGATOR SHALL ON AN ANNUAL BASIS  DISCLOSE  TO  THE
 DEPARTMENT THE INFORMATION REQUESTED BY THE SUPERINTENDENT, INCLUDING:
   (A)  ANY  PAYMENTS  MADE TO A REBATE AGGREGATOR BY A DRUG MANUFACTURER
 RELATING TO A DRUG'S UTILIZATION, INCLUDING INFLATIONARY PAYMENTS, CRED-
 ITS, GRANTS, REIMBURSEMENTS, OTHER FINANCIAL  OR  OTHER  REIMBURSEMENTS,
 INCENTIVES,  INDUCEMENTS,  REFUNDS  OR  OTHER  BENEFITS  RECEIVED BY THE
 REBATE AGGREGATOR, WHETHER REFERRED TO  AS  A  REBATE,  A  DISCOUNT,  OR
 OTHERWISE;
   (B)  ANY  PAYMENTS MADE, INCLUDING THOSE DESCRIBED IN SUBPARAGRAPH (A)
 OF THIS PARAGRAPH AND SUBSEQUENTLY RETAINED BY A REBATE AGGREGATOR;
   (C) ANY FEES CHARGED BY THE REBATE AGGREGATOR TO THE PHARMACY  BENEFIT
 MANAGER OR DRUG MANUFACTURER RELATING TO A DRUG'S UTILIZATION;
   (D)  ANY  PAYMENTS MADE TO A REBATE AGGREGATOR FROM A PROGRAM ADMINIS-
 TERED BY A DRUG MANUFACTURER FOR THE PURPOSE OF ASSISTING PATIENTS  WITH
 A. 7304                             8
 
 THE COST OF PRESCRIPTION DRUGS, INCLUDING COPAYMENT ASSISTANCE PROGRAMS,
 DISCOUNT CARDS, AND COUPONS; AND
   (E)  THE  TERMS  AND CONDITIONS OF ANY CONTRACT OR ARRANGEMENT BETWEEN
 THE REBATE AGGREGATOR AND A PHARMACY BENEFIT MANAGER OR DRUG MANUFACTUR-
 ER.
   § 3010. DEPOSIT OF PENALTIES AND FEES. PENALTIES  AND  FEES  COLLECTED
 PURSUANT  TO  THIS  ARTICLE SHALL BE DEPOSITED INTO THE PHARMACY BENEFIT
 MANAGER REGULATORY FUND ESTABLISHED PURSUANT TO  SECTION  NINETY-NINE-OO
 OF THE STATE FINANCE LAW.
   § 3. Subdivision 3 of section 99-oo of the state finance law, as added
 by chapter 128 of the laws of 2022, is amended to read as follows:
   3.  Such  fund  shall  consist  of money received by the state as fees
 under [article] ARTICLES twenty-nine AND THIRTY of the insurance law  or
 penalties ordered under [article] ARTICLES twenty-nine AND THIRTY of the
 insurance  law  and  all  other monies appropriated, credited, or trans-
 ferred thereto from any other fund or source pursuant to law. All monies
 shall remain in such fund unless and until directed by statute or appro-
 priation.
   § 4. This act shall take effect immediately.

co-Sponsors

2023-A7304A (ACTIVE) - Details

Current Committee:: Assembly Codes
Law Section:: Insurance Law
Laws Affected:: Add Art 30 §§3001 - 3010, Ins L; amd §99-oo, St Fin L

2023-A7304A (ACTIVE) - Summary

2023-A7304A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7304--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2023
                                ___________
 
 Introduced by M. of A. McDONALD, WEPRIN -- read once and referred to the
   Committee  on  Insurance  -- reported and referred to the Committee on
   Codes -- committee discharged,  bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the  insurance law, in relation to prescription drug
   supply chain transparency; and to amend  the  state  finance  law,  in
   relation to deposits into the pharmacy benefit manager regulatory fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall  be  known  and  may  be  cited  as  the
 "prescription drug supply chain transparency act of 2023".
   §  2.  The insurance law is amended by adding a new article 30 to read
 as follows:
                                ARTICLE 30
                PRESCRIPTION DRUG SUPPLY CHAIN TRANSPARENCY
 SECTION 3001. DEFINITIONS.
         3002. ELECTRONIC FILING REQUIREMENT.
         3003. SPECIAL REPORTS AND OTHER POWERS.
         3004. REGISTRATION OF PHARMACY SERVICES ADMINISTRATIVE ORGANIZA-
                 TIONS.
         3005. REQUIRED DISCLOSURES BY PHARMACY  SERVICES  ADMINISTRATIVE
                 ORGANIZATIONS.
         3006. REGISTRATION OF PHARMACY SWITCH COMPANIES.
         3007. REQUIRED DISCLOSURES BY PHARMACY SWITCH COMPANIES.
         3008. REGISTRATION OF REBATE AGGREGATORS.
         3009. REQUIRED DISCLOSURES BY REBATE AGGREGATORS.
         3010. DEPOSIT OF PENALTIES AND FEES.
   §  3001.  DEFINITIONS. (A) FOR THE PURPOSES OF THIS ARTICLE, THE DEFI-
 NITIONS CONTAINED IN SECTION TWO HUNDRED EIGHTY-A OF THE  PUBLIC  HEALTH
 LAW SHALL APPLY TO THIS ARTICLE AS IF SPECIFICALLY SET FORTH HEREIN.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11150-02-3
 A. 7304--A                          2

 
   (B)  FOR  THE PURPOSES OF THIS ARTICLE, THE FOLLOWING WORDS OR PHRASES
 SHALL  HAVE  THE  FOLLOWING  MEANINGS,  UNLESS  THE  CONTEXT   OTHERWISE
 REQUIRES:
   (1)  "MANUFACTURER"  MEANS  AN  ENTITY  ENGAGED  IN THE MANUFACTURE OF
 PRESCRIPTION DRUGS SOLD IN THIS STATE.
   (2) "PHARMACY SERVICES ADMINISTRATIVE ORGANIZATION" OR "PSAO" MEANS AN
 ENTITY THAT IS OPERATING IN THIS STATE AND THAT CONTRACTS WITH A PHARMA-
 CY FOR THE PURPOSE OF CONDUCTING BUSINESS ON THE PHARMACY'S BEHALF  WITH
 HEALTH PLANS OR PHARMACY BENEFIT MANAGERS.
   (3) "REBATE AGGREGATOR" MEANS AN ENTITY THAT PROVIDES FORMULARY REBATE
 ADMINISTRATIVE SERVICES FOR PHARMACY BENEFIT MANAGERS OR OTHERWISE NEGO-
 TIATES  REBATES  WITH MANUFACTURERS ON BEHALF OF PHARMACY BENEFIT MANAG-
 ERS.
   (4) "SWITCH COMPANY" MEANS AN ENTITY  THAT  ACTS  AS  AN  INTERMEDIARY
 BETWEEN A PHARMACY AND A PHARMACY BENEFIT MANAGER OR HEALTH PLAN FOR THE
 PURPOSE OF ROUTING INSURANCE CLAIMS DATA TO OR FROM A PHARMACY.
   §  3002. ELECTRONIC FILING REQUIREMENT. NOTWITHSTANDING ANY LAW TO THE
 CONTRARY, ANY FILING OR SUBMISSION REQUIRED UNDER THIS ARTICLE SHALL  BE
 MADE  ELECTRONICALLY  UNLESS  THE ENTITY REQUIRED TO MAKE SUCH FILING OR
 SUBMISSION DEMONSTRATES UNDUE HARDSHIP, IMPRACTICABILITY OR  GOOD  CAUSE
 AS REQUIRED BY SECTION THREE HUNDRED SIXTEEN OF THIS CHAPTER.
   §  3003.  SPECIAL REPORTS AND OTHER POWERS. (A) THE SUPERINTENDENT MAY
 ADDRESS TO ANY ENTITY REQUIRED TO REGISTER OR REPORT  INFORMATION  UNDER
 THIS  ARTICLE,  OR  ITS  OFFICERS,  OR ANY AGENT OR EMPLOYEE THEREOF ANY
 WRITTEN INQUIRY IN RELATION TO MATTERS  CONNECTED  TO  THE  REQUIREMENTS
 OUTLINED IN THIS ARTICLE.  EVERY INDIVIDUAL OR ENTITY SO ADDRESSED SHALL
 REPLY IN WRITING TO SUCH INQUIRY PROMPTLY AND TRUTHFULLY, AND SUCH REPLY
 SHALL BE, IF REQUIRED BY THE SUPERINTENDENT, SUBSCRIBED BY SUCH INDIVID-
 UAL,  OR  BY SUCH OFFICER OR OFFICERS OF THE ENTITY, OR BY SUCH AGENT OR
 EMPLOYEE OF THE  ENTITY  AS  THE  SUPERINTENDENT  SHALL  DESIGNATE,  AND
 AFFIRMED BY THEM AS TRUE UNDER THE PENALTIES OF PERJURY.
   (B) IN THE EVENT ANY INDIVIDUAL OR ENTITY DOES NOT SUBMIT A GOOD FAITH
 RESPONSE  TO  AN  INQUIRY FROM THE SUPERINTENDENT PURSUANT TO SUBSECTION
 (A) OF THIS SECTION WITHIN A TIME PERIOD SPECIFIED BY THE SUPERINTENDENT
 OF NOT LESS THAN FIFTEEN BUSINESS DAYS, THE SUPERINTENDENT IS AUTHORIZED
 TO LEVY A CIVIL PENALTY, AFTER NOTICE AND HEARING, AGAINST  SUCH  PERSON
 NOT  TO EXCEED ONE THOUSAND DOLLARS PER DAY FOR EACH DAY BEYOND THE DATE
 SPECIFIED BY THE SUPERINTENDENT FOR RESPONSE TO THE INQUIRY.
   (C) IN ADDITION TO ALL OTHER POWERS GRANTED BY LAW, THE SUPERINTENDENT
 IS HEREBY EMPOWERED TO ORDER ANY PERSON OR ENTITY REQUIRED  TO  REGISTER
 OR  REPORT  INFORMATION  UNDER  THIS  ARTICLE  TO  CEASE AND DESIST FROM
 VIOLATIONS OF THIS ARTICLE AND, FOLLOWING ISSUANCE OF SUCH AN ORDER, MAY
 BRING AND MAINTAIN AN ACTION IN ANY COURT OF COMPETENT JURISDICTION  FOR
 AN INJUNCTION OR OTHER APPROPRIATE RELIEF TO ENJOIN THREATENED OR EXIST-
 ING  VIOLATIONS  OF  THIS  ARTICLE, OR OF THE SUPERINTENDENT'S ORDERS OR
 REGULATIONS. SUCH ACTION MAY SPECIFICALLY SEEK RESTITUTION ON BEHALF  OF
 PERSONS  AGGRIEVED  BY  A  VIOLATION  OF THIS ARTICLE OR ORDERS OR REGU-
 LATIONS OF THE SUPERINTENDENT.
   (D) IN ADDITION TO ALL OTHER POWERS GRANTED BY LAW, WHENEVER IT  SHALL
 APPEAR  TO  THE SUPERINTENDENT, EITHER UPON COMPLAINT OR OTHERWISE, THAT
 IN THE COURSE OF ITS BUSINESS WITHIN OR FROM THIS STATE THAT ANY  ENTITY
 SHALL  HAVE  EMPLOYED,  OR  EMPLOYS,  OR IS ABOUT TO EMPLOY ANY BUSINESS
 PRACTICE OR SHALL HAVE PERFORMED, OR  IS  PERFORMING,  OR  IS  ABOUT  TO
 PERFORM ANY ACT IN VIOLATION OF THIS ARTICLE OR ORDERS OR REGULATIONS OF
 THE  SUPERINTENDENT,  OR  THE  SUPERINTENDENT  BELIEVES  IT TO BE IN THE
 PUBLIC INTEREST THAT AN INVESTIGATION BE MADE, THE  SUPERINTENDENT  MAY,
 A. 7304--A                          3
 
 IN THE SUPERINTENDENT'S DISCRETION, EITHER REQUIRE OR PERMIT SUCH ENTITY
 OR  ANY  AGENT OR EMPLOYEE THEREOF, TO FILE WITH THE DEPARTMENT A STATE-
 MENT IN WRITING UNDER OATH OR OTHERWISE AS TO ALL THE FACTS AND  CIRCUM-
 STANCES  CONCERNING  THE SUBJECT MATTER THAT THE SUPERINTENDENT BELIEVES
 IS IN THE PUBLIC INTEREST  TO  INVESTIGATE  AND  FOR  SUCH  PURPOSE  MAY
 PRESCRIBE  FORMS  UPON  WHICH  SUCH STATEMENTS SHALL BE MADE. THE SUPER-
 INTENDENT MAY ALSO REQUIRE SUCH OTHER DATA AND INFORMATION AS THE SUPER-
 INTENDENT MAY DEEM RELEVANT AND MAY MAKE SUCH  SPECIAL  AND  INDEPENDENT
 INVESTIGATIONS  AS  THE  SUPERINTENDENT MAY DEEM NECESSARY IN CONNECTION
 WITH THE MATTER. IT SHALL BE THE DUTY  OF  ALL  PUBLIC  OFFICERS,  THEIR
 DEPUTIES,  ASSISTANTS,  SUBORDINATES,  CLERKS OR EMPLOYEES AND ALL OTHER
 PERSONS TO RENDER AND FURNISH TO THE SUPERINTENDENT, WHEN  REQUESTED  IN
 CONNECTION  WITH AN INVESTIGATION UNDER THIS SUBSECTION, ALL INFORMATION
 AND ASSISTANCE IN THEIR POSSESSION OR WITHIN THEIR POWER.
   (E) ANY ENTITY WHO VIOLATES AN ORDER UNDER SUBSECTION (C)  OR  (D)  OF
 THIS  SECTION  SHALL  BE  SUBJECT TO A CIVIL PENALTY, AFTER NOTICE AND A
 HEARING, OF NOT MORE THAN TEN THOUSAND DOLLARS PER ACT IN VIOLATION,  IN
 ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW.
   (F)  ANY  COMMUNICATIONS  OR  DOCUMENTS SENT OR RECEIVED IN CONNECTION
 WITH AN INVESTIGATION UNDER THIS ARTICLE AND ANY MATERIALS REFERRING  TO
 SUCH INFORMATION IN THE POSSESSION OF THE SUPERINTENDENT SHALL BE CONFI-
 DENTIAL  AND  NOT SUBJECT TO DISCLOSURE.  NOTWITHSTANDING THE FOREGOING,
 THE SUPERINTENDENT MAY RELEASE SUCH CONFIDENTIAL COMMUNICATIONS OR DOCU-
 MENTS TO THE EXTENT NECESSARY TO  ADDRESS  CRIMINAL  OR  OTHER  UNLAWFUL
 BEHAVIOR.  THIS SUBSECTION SHALL NOT APPLY TO INFORMATION, DOCUMENTS AND
 MATERIALS IN THE POSSESSION AND UNDER THE CONTROL  OF  AN  ENTITY  OTHER
 THAN THE SUPERINTENDENT.
   §  3004.  REGISTRATION  OF  PHARMACY SERVICES ADMINISTRATIVE ORGANIZA-
 TIONS. (A) NO PSAO SHALL OPERATE IN THIS STATE AFTER MARCH THIRTY-FIRST,
 TWO THOUSAND TWENTY-FOUR WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
   (B) A PSAO SEEKING REGISTRATION SHALL  FILE,  IN  A  FORM  AND  MANNER
 DETERMINED  BY  THE SUPERINTENDENT, INFORMATION THAT INCLUDES AT A MINI-
 MUM:
   (1) THE LEGAL NAME OF THE ENTITY;
   (2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
   (3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
   (4) THE PHARMACIES LOCATED WITHIN  THIS  STATE  TO  WHICH  THE  ENTITY
 PROVIDES SERVICES;
   (5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
   (6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
   (7) AN AGENT FOR SERVICE OF PROCESS; AND
   (8) THE MOST RECENT SET OF AUDITED FINANCIALS FOR THE PSAO.
   (C)  THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF THE SUPER-
 INTENDENT DETERMINES THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED
 IN A SATISFACTORY FORM AND  HAS  RECEIVED  PAYMENT  OF  A  NONREFUNDABLE
 REGISTRATION FEE OF FIVE HUNDRED DOLLARS.
   (D)  IF  ANY  OF THE INFORMATION CONTAINED IN THE REGISTRATION, EXCEPT
 FOR THE INFORMATION CONTAINED IN PARAGRAPH FOUR  OF  SUBSECTION  (B)  OF
 THIS SECTION, SHALL CHANGE, THE PSAO SHALL NOTIFY THE DEPARTMENT OF SUCH
 CHANGE  IN  A  FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT FOR SUCH
 PURPOSE WITHIN THIRTY DAYS OF THE CHANGE.   THE  REQUIREMENT  TO  UPDATE
 SHALL  INCLUDE  THE  FILING  OF  A  NEW  SET  OF AUDITED FINANCIALS UPON
 ADOPTION. FOR ANY CHANGE OTHER THAN NEW AUDITED FINANCIALS,  THE  FILING
 SHALL NOT BE DEEMED COMPLETE UNLESS ACCOMPANIED BY A PAYMENT OF A FEE OF
 FIFTY DOLLARS.
 A. 7304--A                          4
 
   (E)  EVERY  PSAO  REGISTRATION  ISSUED  PURSUANT TO THIS SECTION SHALL
 EXPIRE TWELVE MONTHS AFTER THE DATE OF  ISSUE.  A  PSAO  MAY  RENEW  ITS
 REGISTRATION FOR ANOTHER TWELVE MONTHS UPON THE FILING OF AN APPLICATION
 IN CONFORMITY WITH THIS SECTION.
   (F)  BEFORE  A PSAO REGISTRATION SHALL BE RENEWED, THE PSAO SHALL FILE
 AN APPLICATION FOR RENEWAL IN SUCH FORM AS THE SUPERINTENDENT PRESCRIBES
 AND PAY A FEE OF FIVE HUNDRED DOLLARS.
   (G) IF A PSAO FILES A RENEWAL APPLICATION WITH THE  SUPERINTENDENT  AT
 LEAST  ONE  MONTH BEFORE ITS EXPIRATION, THEN THE REGISTRATION SOUGHT TO
 BE RENEWED SHALL CONTINUE IN FULL FORCE  AND  EFFECT  EITHER  UNTIL  THE
 ISSUANCE  BY  THE SUPERINTENDENT OF THE RENEWAL REGISTRATION APPLIED FOR
 OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT SHALL HAVE REFUSED TO  ISSUE
 SUCH RENEWAL REGISTRATION AND GIVEN NOTICE OF SUCH REFUSAL TO THE APPLI-
 CANT,  OTHERWISE  THE  PSAO REGISTRATION SHALL EXPIRE AND THE REGISTRANT
 SHALL HAVE NO EXPECTATION OF RENEWAL.
   § 3005.  REQUIRED  DISCLOSURES  BY  PHARMACY  SERVICES  ADMINISTRATIVE
 ORGANIZATIONS.  (A)  (1)  EACH  PSAO  SHALL  AT THE TIME OF REGISTRATION
 PURSUANT TO SECTION THREE THOUSAND FOUR OF THIS ARTICLE DISCLOSE TO  THE
 DEPARTMENT  THE EXTENT OF ANY OWNERSHIP OR CONTROL OF THE PSAO OR BY THE
 PSAO OF ANY PARENT COMPANY, SUBSIDIARY, OR AFFILIATE THAT:
   (A) PROVIDES PHARMACY SERVICES;
   (B) PROVIDES PRESCRIPTION DRUG OR DEVICE SERVICES; OR
   (C) MANUFACTURES, SELLS, OR DISTRIBUTES  PRESCRIPTION  DRUGS,  BIOLOG-
 ICALS, OR MEDICAL DEVICES.
   (2)  A PSAO SHALL FURNISH A COPY OF THE DISCLOSURE MADE AT THE TIME OF
 REGISTRATION TO ALL PHARMACIES LOCATED IN THIS STATE WITH WHICH IT HAS A
 CONTRACT IN PLACE AT THE TIME OF THE  REGISTRATION.  A  PSAO  SHALL  NOT
 COLLECT  ANY  FEE FOR ANY SERVICES PROVIDED TO A PHARMACY FOR ANY PERIOD
 BEGINNING FIVE DAYS AFTER THE FILING OF A REGISTRATION WITH THE  DEPART-
 MENT UNTIL SUCH DISCLOSURE IS SENT TO THE PHARMACY.
   (3)  NOT LATER THAN APRIL FIRST, TWO THOUSAND TWENTY-FIVE, THE DEPART-
 MENT SHALL PUBLISH ALL DISCLOSURES RECEIVED  UNDER  THIS  SECTION  ON  A
 PUBLICLY  ACCESSIBLE ONLINE DATABASE, WHICH SHALL BE SEARCHABLE AT LEAST
 BY PSAO NAME. ALL DISCLOSURES SHALL BE POSTED NOT LATER THAN  TEN  BUSI-
 NESS DAYS AFTER A REGISTRATION IS ACCEPTED AND SHALL REMAIN ON THE DATA-
 BASE FOR THE DURATION OF THE REGISTRATION OF THE PSAO.
   (B)  (1) PRIOR TO ENTERING INTO ANY CONTRACT WITH ANY PHARMACY LOCATED
 IN THIS STATE, INCLUDING A CONTRACT WITH A GROUP OF PHARMACIES AT  LEAST
 ONE  OF  WHICH  IS IN THIS STATE, A PSAO SHALL FURNISH TO THE PHARMACY A
 WRITTEN DISCLOSURE OF  THE  INFORMATION  REQUIRED  TO  BE  DISCLOSED  IN
 SUBSECTION  (A)  OF  THIS  SECTION. NO CONTRACT WITH A PHARMACY SHALL BE
 ENFORCEABLE AGAINST THE PHARMACY BY A PSAO UNLESS SUCH PSAO  MAKES  SUCH
 DISCLOSURE  PRIOR  TO  THE  AGREEMENT.  IN  ADDITION  TO ANY OTHER POWER
 CONFERRED BY LAW, THE SUPERINTENDENT MAY PRESCRIBE THE FORM  AND  MANNER
 OF SUCH DISCLOSURES.
   (2)  A  PSAO  THAT OWNS, IS OWNED BY, IN WHOLE OR IN PART, OR CONTROLS
 ANY ENTITY THAT MANUFACTURES, SELLS, OR DISTRIBUTES PRESCRIPTION  DRUGS,
 BIOLOGICALS,  OR  MEDICAL  DEVICES SHALL NOT, AS A CONDITION OF ENTERING
 INTO A CONTRACT WITH A PHARMACY, REQUIRE THAT THE PHARMACY PURCHASE  ANY
 DRUGS OR MEDICAL DEVICES FROM AN ENTITY WITH WHICH THE PSAO HAS A FINAN-
 CIAL INTEREST, OR AN ENTITY WITH AN OWNERSHIP INTEREST IN THE PSAO.
   (3)  NO PSAO SHALL ENTER INTO A CONTRACT WITH A PHARMACY IN THIS STATE
 UNLESS SUCH CONTRACT SHALL  PROVIDE  THAT  ALL  REMITTANCES  FOR  CLAIMS
 SUBMITTED  BY  A PHARMACY BENEFIT MANAGER OR THIRD-PARTY PAYER ON BEHALF
 OF A PHARMACY TO THE PSAO SHALL BE PASSED THROUGH BY  THE  PSAO  TO  THE
 PHARMACY  WITHIN  A  REASONABLE  AMOUNT  OF  TIME,  ESTABLISHED  IN  THE
 A. 7304--A                          5
 
 CONTRACT, AFTER RECEIPT OF THE REMITTANCE BY THE PSAO FROM THE  PHARMACY
 BENEFIT MANAGER OR THIRD-PARTY PAYER.
   (C)  (1) IF A PSAO PROVIDES, ACCEPTS, OR PROCESSES A DISCOUNT, CONCES-
 SION, OR PRODUCT VOUCHER, TO REDUCE, DIRECTLY OR INDIRECTLY,  A  COVERED
 INDIVIDUAL'S  OUT-OF-POCKET  EXPENSE  FOR THE ORDER, DISPENSING, SUBSTI-
 TUTION, SALE, OR PURCHASE OF A PRESCRIPTION DRUG SHALL MAKE AVAILABLE TO
 EACH PHARMACY  IN  THIS  STATE  THAT  IT  CONTRACTS  WITH  OR  WHICH  IT
 CONTRACTED  WITH  IN  THE  PRIOR  CALENDAR  YEAR,  AN ANNUAL REPORT THAT
 INCLUDES:
   (A) AN AGGREGATED TOTAL OF ALL SUCH TRANSACTIONS, BY THE PHARMACY; AND
   (B) AN AGGREGATED TOTAL OF ANY PAYMENTS RECEIVED BY  THE  PSAO  ITSELF
 FOR  PROVIDING,  PROCESSING,  OR  ACCEPTING ANY DISCOUNT, CONCESSION, OR
 PRODUCT VOUCHER ON BEHALF OF A PHARMACY.
   (2) A PSAO THAT DOES NOT  PROVIDE,  ACCEPT,  OR  PROCESS  A  DISCOUNT,
 CONCESSION,  OR  PRODUCT  VOUCHER  TO  REDUCE, DIRECTLY OR INDIRECTLY, A
 COVERED INDIVIDUAL'S OUT-OF-POCKET EXPENSE FOR  THE  ORDER,  DISPENSING,
 SUBSTITUTION, SALE, OR PURCHASE OF A PRESCRIPTION DRUG MAY INDICATE "NOT
 APPLICABLE" WHEN FILING FOR REGISTRATION AND WILL SUBSEQUENTLY BE EXEMPT
 FROM PROVIDING SUCH REPORTS.
   (3) A PHARMACY IN THIS STATE THAT IS A PARTY TO A CONTRACT WITH A PSAO
 SHALL  HAVE  A  RIGHT TO AN ACCOUNTING OF THE FUNDS RECEIVED BY THE PSAO
 FOR GOODS OR SERVICES PROVIDED BY THE PHARMACY TO PATIENTS  AND  CUSTOM-
 ERS.
   §  3006.  REGISTRATION  OF  PHARMACY  SWITCH  COMPANIES. (A) NO SWITCH
 COMPANY MAY DO BUSINESS IN THIS STATE AFTER JUNE THIRTIETH, TWO THOUSAND
 TWENTY-FOUR WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
   (B) A SWITCH COMPANY SEEKING REGISTRATION SHALL FILE WITH THE  DEPART-
 MENT, IN A FORM AND MANNER DETERMINED BY THE SUPERINTENDENT, INFORMATION
 INCLUDING BUT NOT LIMITED TO:
   (1) THE LEGAL NAME OF THE ENTITY;
   (2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
   (3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
   (4)  THE PHARMACIES LOCATED WITHIN THIS STATE AND THE PHARMACY BENEFIT
 MANAGERS LICENSED IN THIS STATE TO WHICH THE ENTITY PROVIDES SERVICES;
   (5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
   (6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
   (7) AN AGENT FOR SERVICE OF PROCESS; AND
   (8) THE MOST RECENT SET OF AUDITED FINANCIALS FOR THE PHARMACY  SWITCH
 COMPANY.
   (C)  THE  SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF HE OR SHE
 DEEMS THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED IN A SATISFAC-
 TORY FORM AND MANNER AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE  REGIS-
 TRATION FEE OF FIVE HUNDRED DOLLARS.
   (D)  IF  ANY  OF  THE  INFORMATION CONTAINED IN THE REGISTRATION SHALL
 CHANGE, THE SWITCH COMPANY SHALL NOTIFY THE DEPARTMENT OF THE CHANGE  IN
 A  FORM  AND  MANNER  PRESCRIBED  BY THE SUPERINTENDENT FOR SUCH PURPOSE
 WITHIN THIRTY DAYS OF THE CHANGE.   SUCH  REQUIREMENT  TO  UPDATE  SHALL
 INCLUDE THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR
 ANY  CHANGE  OTHER  THAN NEW AUDITED FINANCIALS, THE FILING SHALL NOT BE
 DEEMED COMPLETE UNLESS ACCOMPANIED BY  A  PAYMENT  OF  A  FEE  OF  FIFTY
 DOLLARS.
   (E)  EVERY  PHARMACY SWITCH COMPANY'S REGISTRATION SHALL EXPIRE TWELVE
 MONTHS AFTER THE DATE OF ISSUE. EVERY REGISTRATION  ISSUED  PURSUANT  TO
 THIS SECTION MAY BE RENEWED FOR THE ENSUING PERIOD OF TWELVE MONTHS UPON
 THE FILING OF AN APPLICATION IN CONFORMITY WITH THIS SECTION.
 A. 7304--A                          6
 
   (F)  BEFORE A PHARMACY SWITCH COMPANY'S REGISTRATION SHALL BE RENEWED,
 THE PHARMACY SWITCH COMPANY SHALL PROPERLY FILE IN  THE  OFFICE  OF  THE
 SUPERINTENDENT  AN  APPLICATION  FOR  RENEWAL IN SUCH FORM AS THE SUPER-
 INTENDENT PRESCRIBES AND PAY A FEE OF FIVE HUNDRED DOLLARS.
   (G) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
 WITH  THE  SUPERINTENDENT AT LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN
 THE REGISTRATION SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL  FORCE  AND
 EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
 REGISTRATION APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT
 SHALL  HAVE  REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND GIVEN NOTICE
 OF SUCH REFUSAL TO  THE  APPLICANT,  OTHERWISE  THE  REGISTRATION  SHALL
 EXPIRE AND THE REGISTRANT SHALL HAVE NO EXPECTATION OF RENEWAL.
   § 3007. REQUIRED DISCLOSURES BY PHARMACY SWITCH COMPANIES. EACH SWITCH
 COMPANY  SHALL ANNUALLY DISCLOSE TO THE DEPARTMENT, IN A FORM AND MANNER
 PRESCRIBED BY THE SUPERINTENDENT, SUCH INFORMATION AS THE SUPERINTENDENT
 DEEMS NECESSARY FOR THE PROPER SUPERVISION OF THE INDUSTRY. SUCH  INFOR-
 MATION SHALL INCLUDE:
   (A)  A LIST OF SERVICES THE SWITCH COMPANY PROVIDES AND THE INDUSTRIES
 TO WHICH THEY ARE PROVIDED;
   (B) INFORMATION ON ELECTRONIC VOUCHER SERVICES PROVIDED BY THE  SWITCH
 COMPANY, INCLUDING:
   (1) A LIST OF MANUFACTURERS THAT THE SWITCH COMPANY HAS CONTRACTS WITH
 OR FOR WHICH IT TRANSMITS ELECTRONIC VOUCHERS;
   (2) A LIST OF MEDICATIONS AND THE NATIONAL DRUG CODES (NDCS) FOR WHICH
 THE SWITCH COMPANY MAY APPLY ELECTRONIC VOUCHERS; AND
   (3)  THE TOTAL AMOUNT OF MONEY COLLECTED FROM MANUFACTURERS RELATED TO
 TRANSMISSION OF ELECTRONIC VOUCHERS; AND
   (C) THE NUMBER OF TRANSACTIONS PROCESSED IN THIS STATE AND  THE  TOTAL
 AMOUNT OF REVENUE ATTRIBUTABLE TO THOSE TRANSACTIONS.
   §  3008.  REGISTRATION OF REBATE AGGREGATORS. (A) NO REBATE AGGREGATOR
 MAY DO BUSINESS IN THIS STATE AFTER SEPTEMBER  THIRTIETH,  TWO  THOUSAND
 TWENTY-FOUR WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
   (B) A REBATE AGGREGATOR SEEKING REGISTRATION SHALL FILE, IN A FORM AND
 MANNER  DETERMINED  BY THE SUPERINTENDENT, INFORMATION INCLUDING BUT NOT
 LIMITED TO:
   (1) THE LEGAL NAME OF THE ENTITY;
   (2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
   (3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
   (4) THE HEALTH PLANS AND THE PHARMACY  BENEFIT  MANAGERS  LICENSED  IN
 THIS STATE TO WHICH THE ENTITY PROVIDES SERVICES;
   (5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
   (6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
   (7) AN AGENT FOR SERVICE OF PROCESS; AND
   (8)  THE MOST RECENT SET OF AUDITED FINANCIALS FOR THE REBATE AGGREGA-
 TOR.
   (C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF HE  OR  SHE
 DEEMS THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED IN A SATISFAC-
 TORY  FORM AND MANNER AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE REGIS-
 TRATION FEE OF FIVE HUNDRED DOLLARS.
   (D) IF ANY OF THE INFORMATION  CONTAINED  IN  THE  REGISTRATION  SHALL
 CHANGE, THE REBATE AGGREGATOR SHALL NOTIFY THE DEPARTMENT OF SUCH CHANGE
 IN  A  FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT FOR SUCH PURPOSE
 WITHIN THIRTY DAYS OF THE  CHANGE.  SUCH  REQUIREMENT  TO  UPDATE  SHALL
 INCLUDE THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR
 ANY  CHANGE  OTHER  THAN NEW AUDITED FINANCIALS, THE FILING SHALL NOT BE
 A. 7304--A                          7
 
 DEEMED COMPLETE UNLESS ACCOMPANIED BY  A  PAYMENT  OF  A  FEE  OF  FIFTY
 DOLLARS.
   (E)  EVERY REBATE AGGREGATOR'S REGISTRATION SHALL EXPIRE TWELVE MONTHS
 AFTER THE DATE OF ISSUE. EVERY  REGISTRATION  ISSUED  PURSUANT  TO  THIS
 SECTION  MAY BE RENEWED FOR THE ENSUING PERIOD OF TWELVE MONTHS UPON THE
 FILING OF AN APPLICATION IN CONFORMITY WITH THIS SECTION.
   (F) BEFORE A REBATE AGGREGATOR'S REGISTRATION SHALL  BE  RENEWED,  THE
 REBATE  AGGREGATOR  SHALL PROPERLY FILE IN THE OFFICE OF THE SUPERINTEN-
 DENT AN APPLICATION FOR RENEWAL  IN  SUCH  FORM  AS  THE  SUPERINTENDENT
 PRESCRIBES AND PAY A FEE OF FIVE HUNDRED DOLLARS.
   (G) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
 WITH  THE  SUPERINTENDENT AT LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN
 THE REGISTRATION SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL  FORCE  AND
 EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
 REGISTRATION APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT
 SHALL  HAVE  REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND GIVEN NOTICE
 OF SUCH REFUSAL TO  THE  APPLICANT,  OTHERWISE  THE  REGISTRATION  SHALL
 EXPIRE AND THE REGISTRANT SHALL HAVE NO EXPECTATION OF RENEWAL.
   §  3009.  REQUIRED  DISCLOSURES BY REBATE AGGREGATORS. (A) EACH REBATE
 AGGREGATOR THAT HAS A CONTRACT OR ARRANGEMENT WITH  A  PHARMACY  BENEFIT
 MANAGER  SERVING  A  HEALTH  PLAN SHALL, ON AN ANNUAL BASIS, DISCLOSE IN
 WRITING TO THE HEALTH PLAN THE FOLLOWING:
   (1) FEE STRUCTURE PROVISIONS OF ANY CONTRACT  OR  ARRANGEMENT  BETWEEN
 THE REBATE AGGREGATOR AND PHARMACY BENEFIT MANAGER OR DRUG MANUFACTURER,
 INCLUDING:
   (A) FEES COLLECTED FOR AGGREGATING REBATES DUE TO THE HEALTH PLAN; AND
   (B)  SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE BY REGU-
 LATION; AND
   (2)  QUANTIFICATION  OF  INFLATIONARY   PAYMENTS,   CREDITS,   GRANTS,
 REIMBURSEMENTS,  OTHER  FINANCIAL  OR  OTHER REIMBURSEMENTS, INCENTIVES,
 INDUCEMENTS, REFUNDS OR OTHER BENEFITS RECEIVED BY THE REBATE AGGREGATOR
 FROM THE DRUG MANUFACTURER AND RETAINED BY THE REBATE AGGREGATOR, WHETH-
 ER REFERRED TO AS A REBATE, A DISCOUNT, OR OTHERWISE.
   (B) (1) EACH REBATE AGGREGATOR SHALL, AT  THE  TIME  OF  REGISTRATION,
 DISCLOSE TO THE DEPARTMENT THE EXTENT OF ANY OWNERSHIP OR CONTROL OF THE
 REBATE  AGGREGATOR  OR  BY  THE REBATE AGGREGATOR OF ANY PARENT COMPANY,
 SUBSIDIARY, OR OTHER  AFFILIATED  ORGANIZATION  THAT  PROVIDES  PHARMACY
 BENEFIT MANAGEMENT SERVICES.
   (2)  EACH  REBATE  AGGREGATOR SHALL ON AN ANNUAL BASIS DISCLOSE TO THE
 DEPARTMENT THE INFORMATION REQUESTED BY THE SUPERINTENDENT, INCLUDING:
   (A) ANY PAYMENTS MADE TO A REBATE AGGREGATOR BY  A  DRUG  MANUFACTURER
 RELATING TO A DRUG'S UTILIZATION, INCLUDING INFLATIONARY PAYMENTS, CRED-
 ITS,  GRANTS,  REIMBURSEMENTS,  OTHER FINANCIAL OR OTHER REIMBURSEMENTS,
 INCENTIVES, INDUCEMENTS, REFUNDS  OR  OTHER  BENEFITS  RECEIVED  BY  THE
 REBATE  AGGREGATOR,  WHETHER  REFERRED  TO  AS  A REBATE, A DISCOUNT, OR
 OTHERWISE;
   (B) ANY PAYMENTS MADE, INCLUDING THOSE DESCRIBED IN  SUBPARAGRAPH  (A)
 OF THIS PARAGRAPH AND SUBSEQUENTLY RETAINED BY A REBATE AGGREGATOR;
   (C)  ANY FEES CHARGED BY THE REBATE AGGREGATOR TO THE PHARMACY BENEFIT
 MANAGER OR DRUG MANUFACTURER RELATING TO A DRUG'S UTILIZATION;
   (D) ANY PAYMENTS MADE TO A REBATE AGGREGATOR FROM A  PROGRAM  ADMINIS-
 TERED  BY A DRUG MANUFACTURER FOR THE PURPOSE OF ASSISTING PATIENTS WITH
 THE COST OF PRESCRIPTION DRUGS, INCLUDING COPAYMENT ASSISTANCE PROGRAMS,
 DISCOUNT CARDS, AND COUPONS; AND
 A. 7304--A                          8
 
   (E) THE TERMS AND CONDITIONS OF ANY CONTRACT  OR  ARRANGEMENT  BETWEEN
 THE REBATE AGGREGATOR AND A PHARMACY BENEFIT MANAGER OR DRUG MANUFACTUR-
 ER.
   §  3010.  DEPOSIT  OF PENALTIES AND FEES. PENALTIES AND FEES COLLECTED
 PURSUANT TO THIS ARTICLE SHALL BE DEPOSITED INTO  THE  PHARMACY  BENEFIT
 MANAGER  REGULATORY  FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO
 OF THE STATE FINANCE LAW.
   § 3. Subdivision 3 of section 99-oo of the state finance law, as added
 by chapter 128 of the laws of 2022, is amended to read as follows:
   3. Such fund shall consist of money received  by  the  state  as  fees
 under  [article] ARTICLES twenty-nine AND THIRTY of the insurance law or
 penalties ordered under [article] ARTICLES twenty-nine AND THIRTY of the
 insurance law and all other monies  appropriated,  credited,  or  trans-
 ferred thereto from any other fund or source pursuant to law. All monies
 shall remain in such fund unless and until directed by statute or appro-
 priation.
   § 4. This act shall take effect immediately.

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Assembly Bill A7304A

Sponsored By

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

2023-A7304 - Details

2023-A7304 - Summary

2023-A7304 - Bill Text download pdf

co-Sponsors

2023-A7304A (ACTIVE) - Details

2023-A7304A (ACTIVE) - Summary

2023-A7304A (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A7304A

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Sponsored By

MCDONALD

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

David Weprin

2023-A7304 - Details

2023-A7304 - Summary

2023-A7304 - Bill Text download pdf

co-Sponsors

David Weprin

Brian Cunningham

2023-A7304A (ACTIVE) - Details

2023-A7304A (ACTIVE) - Summary

2023-A7304A (ACTIVE) - Bill Text download pdf

Comments