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 mandates that these entities submit an annual report to the Department of Health by March 31 each year, detailing their 340B savings, how these savings are utilized, and metrics related to charity care and patient demographics. The report must include specific data such as the total number of drug claims processed, the aggregate savings realized, and a breakdown of how the savings were allocated towards patient care, financial assistance, and administrative costs.

Additionally, the bill establishes penalties for noncompliance, allowing the Department of Health to impose fines on entities that fail to submit timely or complete reports. The department is also tasked with developing standardized reporting forms and procedures to facilitate compliance. The act is set to take effect on January 1, 2026, and includes provisions to ensure that it does not conflict with federal laws governing the 340B program.