House Bill 1959, also known as the "Freedom, Access, and Integrity in Registered Pharmacy (FAIR Rx) Act," aims to amend Tennessee law regarding the ownership and control of pharmacies by pharmacy benefits managers (PBMs). The bill prohibits PBMs from acquiring or controlling any pharmacy licenses or interests, effective January 1, 2027. It establishes definitions for terms such as "affiliate," "beneficial owner," and "control," and mandates that all pharmacy license applicants disclose ownership and management structures to the Tennessee Board of Pharmacy. The bill also includes provisions for limited-use pharmacy licenses and outlines penalties for violations, including civil penalties and potential injunctive relief.

Additionally, the bill requires the Board of Pharmacy to assess active pharmacy licenses by July 1, 2026, and notify any pharmacies that may be in violation of the new regulations. Pharmacies affiliated with PBMs may continue operations until December 31, 2026, if they are actively pursuing a sale to an unaffiliated entity. The legislation emphasizes the importance of maintaining patient access to independent pharmacies, particularly in underserved areas, and aims to eliminate conflicts of interest that could compromise patient care and medication safety.