This bill amends and enacts various provisions related to pharmacy benefits managers (PBMs) in North Dakota, establishing a licensing requirement for PBMs to operate within the state. It mandates that PBMs obtain a license from the commissioner, with an initial application fee not exceeding $10,000, applicable for annual renewals as well. The bill outlines the necessary information for the application, including proof of financial responsibility of at least $1 million. Additionally, it introduces regulations that prohibit certain contractual requirements limiting pharmacist participation and mandates opt-in contracts with a minimum response time. The commissioner is granted authority to examine contracts between covered entities and PBMs to ensure compliance.

Moreover, the legislation establishes a Pharmacy Benefit Manager Enforcement Fund, funded by fees from wholesaler and virtual wholesaler licenses, to support the enforcement of the new regulations. It includes administrative penalties for PBMs violating the law, with fines up to $10,000 per violation and civil penalties of up to $50,000 for subsequent violations. The bill also outlines the process for serving legal documents to licensees and appropriates $1,200,000 for the insurance commissioner to enforce the law and conduct an actuarial analysis. Declared an emergency measure, the bill specifies effective and expiration dates for certain sections.

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