The proposed bill, titled the "340B Program Transparency Act," aims to enhance transparency and accountability among certain 340B-covered entities regarding their use of savings generated from the 340B drug discount program. It introduces a new subchapter to the Arkansas Code, which mandates that these entities submit an annual report to the Department of Health by March 31 each year. The report must detail the aggregate 340B savings, how these savings were utilized, and metrics related to charity care and patient demographics. The Department of Health is tasked with developing a standardized reporting form and will publicly post the reports while ensuring that any confidential business information is redacted.

Additionally, the bill outlines enforcement mechanisms, allowing the Department of Health to conduct audits and impose penalties for noncompliance, which can reach up to $150,000 per year. The act also stipulates that the Department will create rules for implementing the new requirements, including the process for requesting confidentiality for proprietary information. The law is set to take effect on January 1, 2026, and it clarifies that it does not conflict with federal laws governing the 340B program.