House Bill 1242 amends Tennessee Code Annotated to enhance protections for 340B entities, which are organizations participating in the federal 340B drug discount program. The bill specifically revises Section 56-7-3119 by deleting the previous subsection (d) and replacing it with new provisions that prohibit drug manufacturers and their affiliates from denying or restricting the acquisition and delivery of 340B drugs to these entities. It also prevents them from imposing additional requirements, such as the submission of health information or claims data, as a condition for drug acquisition. Furthermore, the bill establishes that violations of these provisions can result in civil penalties of $50,000 per violation, with each package of 340B drugs constituting a separate violation.

Additionally, the bill introduces new subdivisions to Sections 56-8-104 and 47-18-104, making violations of the newly established provisions enforceable under existing consumer protection laws. The act is set to take effect on July 1, 2025, ensuring that the rights of 340B entities are upheld and that they can access necessary medications without undue restrictions or penalties. The bill emphasizes compliance with federal law and ensures that any invalid provisions do not affect the overall enforceability of the act.

Statutes affected:
Introduced: 56-7-3119, 56-8-104, 47-18-104(b), 47-18-104