The New Jersey Pharmacy Audit Bill of Rights establishes specific procedures and requirements for entities conducting audits of pharmacies. It defines "entity" to include various healthcare and insurance organizations, and mandates that audits must provide at least 14 days' notice to pharmacies, limit the number of prescriptions audited, and ensure that any clinical judgments are made by a pharmacist. The bill also stipulates that clerical errors will not be considered fraud, and recoupments for overpayments will be limited to the actual amount overpaid. Additionally, pharmacies are protected from penalties and fees related to audits, and they cannot be audited more than once every six months.

The bill outlines an internal appeals process for pharmacies to contest unfavorable audit reports, requiring entities to dismiss unsubstantiated findings. It also clarifies that the provisions do not apply to audits initiated due to suspected fraud or those conducted by the Department of Human Services. Furthermore, the bill prohibits compensation for auditors based on the amount recovered and assigns the Commissioner of Banking and Insurance the responsibility for enforcing the bill's provisions, including investigating complaints and instituting fines for violations. Overall, the legislation aims to protect pharmacies from unfair audit practices while ensuring accountability in the auditing process.