Bill > HB1959

This bill, known as the "Freedom, Access, and Integrity in Registered Pharmacy (FAIR Rx) Act," aims to prevent pharmacy benefits managers (PBMs), which are companies that manage prescription drug benefits on behalf of health insurers, from owning or controlling pharmacies. Starting January 1, 2027, PBMs will be prohibited from having any ownership or beneficial interest in, or exercising control over, a pharmacy license or a pharmacy itself, regardless of the percentage of ownership, through various arrangements including management, staffing, or revenue-sharing agreements. The bill defines key terms like "affiliate" (an entity related to another), "beneficial owner" (someone who receives or controls at least 5% of a pharmacy's economic benefits or ownership), and "control" (the power to direct or influence a pharmacy's operations, including dispensing decisions). The Board of Pharmacy will require detailed annual disclosures from all pharmacy license applicants and holders about their owners, affiliates, and any agreements that grant PBMs control. The bill also includes provisions for limited-use pharmacy licenses for rare drugs, which cannot be transferred to PBMs, and establishes a process for the Board of Pharmacy to identify and notify pharmacies potentially in violation, with specific timelines for compliance and potential sales to unaffiliated entities. Violations can result in civil penalties of up to $10,000 per day and injunctive relief, and the Board will report on enforcement actions annually. The act also clarifies that pharmacy licenses are a privilege, not a property right, and that this regulation is a lawful exercise of the state's power to protect public health and safety.