The proposed bill seeks to amend and enact various sections of the North Dakota Century Code related to pharmacy benefits managers (PBMs). It introduces new licensing requirements for PBMs, including an initial application fee and annual renewal fees capped at $10,000, determined by the commissioner. The bill establishes a continuing appropriation for the insurance regulatory trust fund, which will now encompass all fees collected from PBMs. Additionally, it mandates that the commissioner review contracts between covered entities and PBMs to ensure that payments are appropriately applied to reduce rates or benefit covered individuals. The legislation also outlines prohibited practices for PBMs, such as requiring pharmacists to participate in one contract to access another, and establishes transparency requirements for covered entities regarding the benefits of payments received from PBMs.

Furthermore, the bill amends Section 26.1-27.1-07 to clarify the commissioner’s rulemaking authority and creates new sections to enhance enforcement and administrative procedures for PBMs. It grants the commissioner enforcement powers, establishes administrative penalties for violations, and outlines the process for serving legal documents to licensees. The bill also allows the state board of pharmacy to allocate a portion of wholesaler license fees to the insurance regulatory trust fund and repeals certain existing sections of law. It permits the insurance commissioner to adjust full-time equivalent positions for enforcement and mandates the transfer of funds from the drug pricing fund to the insurance regulatory trust fund. Declared an emergency measure, the act is set to take effect on January 1, 2026.

Statutes affected:
INTRODUCED: 26.1-27.1-01, 26.1-27.1-02, 26.1-27.1-04, 26.1-27.1-06, 26.1-27.1-07
Adopted by the House Industry, Business and Labor Committee: 26.1-27.1-01, 26.1-27.1-02, 26.1-27.1-04, 26.1-27.1-06, 26.1-27.1-07
FIRST ENGROSSMENT: 26.1-27.1-01, 26.1-27.1-02, 26.1-27.1-04, 26.1-27.1-06, 26.1-27.1-07
Adopted by the Senate Industry and Business Committee: 26.1-01-07, 26.1-01-07.1, 26.1-27.1-01, 26.1-27.1-02, 26.1-27.1-04, 26.1-27.1-06, 26.1-27.1-07