This bill seeks to enhance the regulation of pharmacy benefits managers (PBMs) in North Dakota by establishing a licensing system and an enforcement fund. It mandates that PBMs obtain a license from the commissioner, with an initial application fee and annual renewal fee capped at $10,000. The bill also requires applicants to demonstrate financial responsibility of $1 million and introduces regulations that prohibit certain contractual practices that may restrict pharmacist participation. Additionally, it grants the commissioner enhanced authority to examine contracts for compliance and transparency, as well as subpoena power to enforce these regulations.

Moreover, the legislation establishes administrative penalties for PBMs that violate the law, including fines up to $10,000 per violation and civil penalties of up to $50,000 for repeat offenses. It creates a Pharmacy Benefit Manager Enforcement Fund, funded by licensing fees, to support the enforcement of these new regulations. The bill appropriates $1.2 million for the insurance commissioner to implement these provisions and conduct an actuarial analysis on the impact of the policies on health insurance premiums and drug prices. The bill is set to take effect on January 1, 2026, with certain sections expiring on June 30, 2029.

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
Prepared by the Legislative Council staff for Senator Sickler: 26.1-01-07, 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
Enrollment: 26.1-01-07, 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