The proposed bill establishes the "Pharmacy Services Administrative Organization Act" in Arkansas, which aims to regulate pharmacy services administrative organizations (PSAOs). It introduces a new subchapter in the Arkansas Code, detailing definitions, registration requirements, and operational guidelines for PSAOs. Key definitions include "administrative services," which encompass various support functions provided by PSAOs to independent pharmacies, and "third-party payer," which refers to organizations that pay for health-related expenses. The bill mandates that PSAOs must obtain a license from the Insurance Commissioner to operate and outlines the necessary application and compliance requirements.

Additionally, the bill sets forth disclosure and notice requirements for contracts between PSAOs and independent pharmacies, ensuring transparency regarding ownership and control. It stipulates that PSAOs must provide timely remittance to pharmacies and report on any discounts or concessions offered. The Insurance Commissioner is tasked with enforcing the provisions of this act, including the authority to audit PSAOs and impose penalties for non-compliance. Overall, the legislation aims to enhance the regulatory framework governing pharmacy services and protect the interests of independent pharmacies in Arkansas.