The bill amends Section 5-19.1-35 of the General Laws concerning pharmacy audits, introducing new definitions and criteria to enhance the fairness and transparency of the audit process. Key insertions include definitions for "audit" and "auditor," as well as specific guidelines for conducting audits, such as requiring written notice to the attorney general at least three business days prior to the initiation of an audit conducted under certain exceptions, and limiting the scope of audits to issues directly related to specific suspicions or allegations. The bill specifies that auditors may not rely solely on common control or ownership as a basis for conducting an audit unless there is confirmation of systemic error or wrongdoing.

Additionally, the bill outlines enforcement mechanisms, granting the attorney general authority to institute proceedings to prevent and restrain violations of this section, with jurisdiction in the superior court. It establishes civil penalties of up to ten thousand dollars ($10,000) for each violation and allows the attorney general to promulgate rules and regulations to implement the provisions of this section. The bill stipulates that pharmacies cannot be subjected to more than one audit per year unless there is substantial evidence of fraud, abuse, misrepresentation, or other criminal wrongdoing. The act aims to strengthen the state's pharmacy audit law by clarifying procedures and ensuring that audits are conducted in a manner that protects pharmacies from unjust practices. The provisions of this act will take effect upon passage.

Statutes affected:
8382: 5-19.1-35