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 related to administrative services, pharmacy benefits managers, and the roles of PSAOs. The bill mandates that any entity wishing to operate as a PSAO must obtain a license from the Insurance Commissioner, who will set the application and renewal fees, as well as establish compliance and reporting requirements. Additionally, the bill outlines the necessary disclosures and notice requirements that PSAOs must adhere to when entering contracts with pharmacies and third-party payers.

Furthermore, the legislation includes provisions to ensure transparency and accountability within the operations of PSAOs. It requires PSAOs to disclose ownership interests and any material changes in ownership to both pharmacies and the State Insurance Department. The bill also stipulates that PSAOs cannot compel pharmacies to purchase drugs exclusively from entities they are affiliated with, and it establishes penalties for non-compliance, including civil fines and the potential revocation of licenses. Overall, the act aims to create a structured framework for the operation of PSAOs, enhancing oversight and protecting the interests of pharmacies and patients in Arkansas.