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 an exception, and limiting the scope of audits to the specific issues that give rise to the audit. 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, fraud, abuse, willful misrepresentation, or criminal wrongdoing.

Additionally, the bill clarifies the enforcement authority of the attorney general, allowing for civil penalties of up to ten thousand dollars ($10,000) for each violation and the ability to promulgate rules and regulations for implementation. It also 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. Overall, the legislation aims to protect pharmacies from unfair audit practices while ensuring compliance with state regulations.

Statutes affected:
3258: 5-19.1-35