The bill aims to prohibit discrimination against entities participating in the federal 340B drug pricing program in New Mexico. It defines key terms such as "340B drug," "340B program," "affiliate," "applicable entity," and "manufacturer." The legislation specifically prohibits manufacturers, their agents, or affiliates from denying or interfering with the acquisition and delivery of 340B drugs to pharmacies that are contractually obligated to serve applicable entities. Additionally, it restricts these manufacturers from requiring applicable entities to submit claims or data as a condition for acquiring 340B drugs, unless mandated by federal law.

The effective date for the provisions of this act is set for January 1, 2026. This legislation seeks to ensure that applicable entities, which include federally qualified health centers, can access discounted prescription drugs without undue barriers imposed by manufacturers.