Bill > SB1414

This bill aims to protect 340B entities, which are healthcare organizations participating in a federal drug discount program, by prohibiting drug manufacturers and their affiliates from discriminating against or imposing unfair restrictions on these entities. Starting July 1, 2025, the bill prevents drug manufacturers from imposing additional requirements on 340B entities, such as demanding extra data submissions, restricting drug acquisition, limiting audits, or creating burdensome credentialing processes that are not applied to non-340B pharmacies or providers. The bill also prevents entities contracting with 340B organizations from interfering with their business relationships or drug choices. Violations of these provisions can result in civil penalties of $50,000 per violation, with each drug package potentially constituting a separate violation. The legislation specifically does not apply to certain state programs like TennCare or CoverKids and must not conflict with federal laws. The bill defines key terms like "340B drug" and "340B entity" and is designed to ensure these healthcare organizations can fully participate in the federal drug discount program without undue restrictions or discriminatory practices.

Budget and Finance, Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1414&ga=114