S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6738--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                May 8, 2023
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance  --  recommitted
   to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
   --  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".
   § 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.
                                                            LBD11150-04-4
              

 S. 6738--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
 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,
 S. 6738--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-FIVE 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
 S. 6738--A                          4
 
 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  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-SIX,  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
 S. 6738--A                          5
 
 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
 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-FIVE 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
 S. 6738--A                          6
 
 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 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-FIVE 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.
 S. 6738--A                          7
 
   (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 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;
 S. 6738--A                          8
 
   (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
   (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 on the one hundred fiftieth day  after
 it shall have become a law.