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SENATE BILL NO. 134
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR GIESSEL
Introduced: 3/18/25
Referred: Health and Social Services, Labor and Commerce
A BILL
FOR AN ACT ENTITLED
"An Act relating to pharmacy bene fits managers; relating to third-party 1
administrators; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 21.06.120(a) is amended to read: 4
(a) The director may examine the affairs, transactions, accounts, records, and 5
assets of each authorized and formerly authorized insurer and each licensed and 6
formerly licensed managing general agent, reinsurance intermediary broker, 7
reinsurance intermediary manager, surplus lines broker, pharmacy benefits manager,
8
and surplus lines association as often as the director considers advisable. In scheduling 9
and determining the nature, scope, and frequency of examinations, the director may 10
consider any factor or material that the director determines is appropriate, including 11
the results of financial statement analysis and ratios, competency of management or 12
change of ownership, actuarial opinions, reports of independent certified public 13
accountants, number and nature of consumer complaints, results of prior examinations, 14 34-LS0461\A
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frequency of prior violations of statute and regulation, and criteria set out in the most 1
recent edition of the Financial Condition Examiners Handbook and the Market 2
Regulation Handbook approved by the National Association of Insurance 3
Commissioners and in effect when the director conducts an examination. Examination 4
of an alien insurer may be limited to its insurance transactions and affairs in the United 5
States. Examination of a reciprocal insurer may also include examination of its 6
attorney-in-fact to the extent that the transactions of the attorney-in-fact relate to the 7
insurer. 8
* Sec. 2. AS 21.06.120(d) is amended to read: 9
(d) The director may examine insurers, third-party administrators, and 10
pharmacy benefits managers in participation with the National Association of 11
Insurance Commissioners. 12
* Sec. 3. AS 21.06.120 is amended by adding a new subsection to read: 13
(h) The director may examine a third-party administrator or pharmacy benefits 14
manager any time the director determines that an examination or investigation is 15
necessary. 16
* Sec. 4. AS 21.06.160(a) is amended to read: 17
(a) Each person examined, other than examinations under AS 21.06.130 and 18
examinations of managing general agents, [THIRD-PARTY ADMINISTRATORS,] 19
reinsurance intermediary managers, motor vehicle service contract providers, or 20
surplus lines brokers, shall pay a reasonable rate calculated on salary, benefit costs, 21
and estimated division overhead for time spent directly or indirectly related to the 22
examination. Each person examined, other than examinations under AS 21.06.130, 23
shall pay actual out-of-pocket business expenses, including travel expenses, incurred 24
by division staff examiners and shall pay the compensation of a contract examiner, to 25
be set at a reasonable customary rate, for conducting the examination upon 26
presentation of a detailed account of the charges and expenses by the director or under 27
an order of the director. The director may waive payment of all or part of the actual 28
out-of-pocket business expenses incurred by division staff examiners, or the 29
compensation of a contract examiner, if the director determines that payment of the 30
expenses or compensation creates a financial hardship for a managing general agent, 31 34-LS0461\A
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third-party administrator, reinsurance intermediary manager, motor vehicle service 1
contract provider, or surplus lines broker. The accounting may either be presented 2
periodically during the course of the examination or at the termination of the 3
examination. A person may not pay and an examiner may not accept additional 4
compensation for an examination. A person shall pay examination expenses to the 5
division under this subsection using an electronic payment method specified by the 6
director. 7
* Sec. 5. AS 21.27.010(a) is amended to read: 8
(a) Except as provided otherwise in this chapter, a person may not act as or 9
represent to be an insurance producer, managing general agent, reinsurance 10
intermediary broker, reinsurance intermediary manager, surplus lines broker, third-11
party administrator, pharmacy benefits manager, or independent adjuster in this 12
state or relative to a subject resident, located, or to be performed in this state unless 13
licensed under this chapter. A person may not act as or represent to be a managing 14
general agent, reinsurance intermediary broker, third-party administrator, 15
pharmacy benefits manager, or reinsurance intermediary manager representing an 16
insurer domiciled in this state regarding a risk located outside this state unless licensed 17
by this state. 18
* Sec. 6. AS 21.27.010(c) is amended to read: 19
(c) A third-party administrator is not required to be licensed as a managing 20
general agent if the third-party administrator 21
(1) is licensed [REGISTERED] under this chapter [AS 21.27.630 - 22
21.27.660]; or 23
(2) only investigates and adjusts claims and is licensed under this 24
chapter as an independent adjuster. 25
* Sec. 7. AS 21.27.010 is amended by adding a new subsection to read: 26
(l) In addition to the requirements under AS 21.27.010 - 21.27.460, a 27
(1) third-party administrator is subject to the licensing requirements 28
under AS 21.27.630 - 21.27.660; and 29
(2) pharmacy benefits manager is subject to the licensing requirements 30
under AS 21.27.901 - 21.27.955. 31 34-LS0461\A
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* Sec. 8. AS 21.27.060(d) is amended to read: 1
(d) This section does not apply to an applicant 2
(1) for a limited license under AS 21.27.150(a)(1), (4), (5), or (8); 3
[OR] 4
(2) who, at any time within the one-year period immediately preceding 5
the date the current pending application is received by the division, had been licensed 6
in good standing in this state under a license requiring substantially similar 7
qualifications as required by the license applied for; or 8
(3) who is a compliance officer for a third-party administrator or 9
pharmacy benefits manager. 10
* Sec. 9. AS 21.27.380(b) is amended to read: 11
(b) If a license is not renewed on or before the renewal date set by the director, 12
the license expires. A licensee may not act as or represent to be an insurance producer, 13
managing general agent, reinsurance intermediary broker, third-party administrator, 14
pharmacy benefits manager, reinsurance intermediary manager, surplus lines broker, 15
or independent adjuster during the time a license has expired. The director may 16
reinstate an expired license if the person continues to qualify for the license and pays 17
renewal license fees and a delayed renewal penalty. Reinstatement does not exempt a 18
person from a penalty provided by law for transacting business while unlicensed. A 19
license may not be renewed if it has expired for two years or longer. 20
* Sec. 10. AS 21.27.630(a) is amended to read: 21
(a) A person may not act as or represent to be a third-party administrator in 22
this state or relative to a subject resident, located, or to be performed in this state, 23
unless licensed [REGISTERED] under this chapter or in another jurisdiction under 24
AS 21.27.650. A person may not act as or represent to be a third-party administrator 25
representing an insurer domiciled in this state regarding a risk located outside this state 26
unless licensed [REGISTERED] by this state under the provisions of this chapter. 27
* Sec. 11. AS 21.27.630(b) is amended to read: 28
(b) A third-party administrator may not transact business for a kind or class of 29
authority for which the person is not licensed [REGISTERED]. 30
* Sec. 12. AS 21.27.630(c) is amended to read: 31 34-LS0461\A
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(c) Except as otherwise provided in this chapter, a third-party administrator 1
shall be licensed [REGISTERED] under this chapter [AS 21.27.630 - 21.27.660] 2
unless the third-party administrator only investigates and adjusts claims and is licensed 3
under this chapter as an independent adjuster. 4
* Sec. 13. AS 21.27.630(d) is amended to read: 5
(d) A third-party administrator may not use a fictitious name or alias unless 6
the licensee's legal name and fictitious name or alias are on the license 7
[REGISTRATION]. 8
* Sec. 14. AS 21.27.630(e) is amended to read: 9
(e) A person who is an employee of an admitted insurer, who acts within the 10
course and scope of that employment, and within the scope of the insurer's certificate 11
of authority is not required to be licensed [REGISTERED] under this chapter 12
[SECTION]. 13
* Sec. 15. AS 21.27.630(g) is amended to read: 14
(g) A credit union or a financial institution subject to supervision or 15
examination by federal or state banking authorities, or a mortgage lender, that 16
performs no functions other than advancing premiums to the insurer and collecting a 17
debt from the insured is not required to be licensed [REGISTERED] as a third-party 18
administrator. 19
* Sec. 16. AS 21.27.630(h) is amended to read: 20
(h) A credit card issuing company that performs no functions, including 21
adjustment or settlement of claims, other than advancing and collecting premiums 22
from its credit card holders who have authorized collection is not required to be 23
licensed [REGISTERED] as a third-party administrator. 24
* Sec. 17. AS 21.27.630(i) is amended to read: 25
(i) A person who only provides services to bona fide employee benefit plans 26
that are established by an employer or an employee organization, or both, for which 27
the insurance laws of this state are preempted under the Employee Retirement Income 28
Security Act of 1974, is not required to be additionally licensed [REGISTERED] as a 29
third-party administrator if the person certifies to the director on or before February 1 30
of each year its exempt status. 31 34-LS0461\A
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* Sec. 18. AS 21.27.630(j) is amended to read: 1
(j) A third-party administrator 2
[(1) SHALL APPLY FOR REGISTRATION UNDER THE 3
PROCEDURES OF AS 21.27.040; 4
(2) SHALL RENEW ITS REGISTRATION UNDER THE 5
PROCEDURES OF AS 21.27.380; AND 6
(3)] is subject to hearings and orders on violations; denial, nonrenewal, 7
suspension, or revocation of license [REGISTRATION]; penalties; and surrender of 8
license [REGISTRATION] under the procedures set out in AS 21.27.405 - 21.27.460. 9
* Sec. 19. AS 21.27.630(k) is amended to read: 10
(k) An insurer that holds a certificate of authority issued by the director and is 11
in good standing under this title is not required to be licensed [REGISTERED] as a 12
third-party administrator in this state. 13
* Sec. 20. AS 21.27.630(l) is amended to read: 14
(l) A person that is not required to be licensed [REGISTERED] as a third-15
party administrator under (e) - (k) of this section must file an annual [A] certification 16
with the director that the person meets the requirements for exemption on or before 17
February 1 of each year. 18
* Sec. 21. AS 21.27.630(m) is amended to read: 19
(m) A person who is an employee of a third-party administrator and who acts 20
within the course and scope of that employment and within the scope of the written 21
contract required under AS 21.27.650(a)(4) is not required to be licensed 22
[REGISTERED] as a third-party administrator under this section unless that person 23
is the designated compliance officer under AS 21.27.640(b)(6). The third-party 24
administrator is responsible for the acts of its employees regulated under this title. 25
* Sec. 22. AS 21.27.640(a) is amended to read: 26
(a) The director may not issue or renew a license [REGISTRATION] except 27
in compliance with this chapter and may not issue a license [REGISTRATION] to a 28
person, or to be exercised by a person, found by the director to be untrustworthy, 29
incompetent, financially irresponsible, or who has not established to the satisfaction of 30
the director that the person is qualified under this chapter. 31 34-LS0461\A
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* Sec. 23. AS 21.27.640(b) is amended to read: 1
(b) To qualify for issuance or renewal of a license [REGISTRATION], an 2
applicant or licensee [REGISTRANT] shall comply with this title, regulations adopted 3
under AS 21.06.090, and 4
(1) be a trustworthy person; 5
(2) have active working experience in administrative functions that, in 6
the director's opinion, exhibits the ability to competently perform the administrative 7
functions of a third-party administrator; 8
(3) not have committed an act that is a cause for denial, nonrenewal, 9
suspension, or revocation of a registration or license in this state or another 10
jurisdiction; 11
(4) maintain a lawfully established place of business as described in 12
AS 21.27.330 in this state, unless licensed as a nonresident under AS 21.27.270; 13
(5) disclose to the director all owners, officers, directors, or partners, if 14
any; 15
(6) designate a compliance officer for the firm; 16
(7) provide in or with its application 17
(A) all basic organizational documents of the third-party 18
administrator, including articles of incorporation, articles of association, 19
partnership agreement, trade name certificate, trust agreement, shareholder 20
agreement, and other applicable documents and all endorsements to the 21
required documents; 22
(B) the bylaws, rules, regulations, or similar documents 23
regulating the internal affairs of the administrator; 24
(C) the names, mailing addresses, physical addresses, official 25
positions, and professional qualifications of persons who are responsible for 26
the conduct of affairs of the third-party administrator, including the members 27
of the board of directors, board of trustees, executive committee, or other 28
governing board or committee; the principal officers in the case of a 29
corporation, or the partners or members in the case of a partnership, limited 30
liability company, limited liability partnership, or association; shareholders 31 34-LS0461\A
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holding directly or indirectly 10 percent or more of the voting securities of the 1
third-party administrator; and any other person who exercises control or 2
influence over the affairs of the third-party administrator; 3
(D) certified financial statements for the preceding two years, 4
or for each year and partial year that the applicant has been in business if less 5
than two years, prepared by an independent certified public accountant 6
establishing that the applicant is solvent, that the applicant's system of 7
accounting, internal control, and procedure is operating effectively to provide 8
reasonable assurance that money is promptly accounted for and paid to the 9
person entitled to the money, and any other information that the director may 10
require to review the current financial condition of the applicant; and 11
(E) a statement describing the business plan, including 12
information on staffing levels and activities proposed in this state and in other 13
jurisdictions and providing details establishing the third-party administrator's 14
capability for providing a sufficient number of experienced and qualified 15
personnel in the areas of claims handling, underwriting, and record keeping; 16
(8) provide to the director documents necessary to verify the 17
statements contained in or in connection with the application; and 18
(9) notify the director, in writing, not later than 30 days after 19
(A) a change in compliance officer, residence, place of 20
business, mailing address, or phone number; 21
(B) the final disposition of an administrative action taken 22
against the licensee [REGISTRANT] by a governmental agency of another 23
state, by a governmental agency of another jurisdiction, or by a financial 24
industry regulatory authority sanction or arbitration proceeding; in addition, a 25
licensee [REGISTRANT] shall submit to the director documents relating to the 26
final disposition on, including the final order and other relevant legal 27
documents in, the action; or 28
(C) a conviction of a misdemeanor or felony of the third-party 29
administrator, its officers, directors, partners, owners, or employees. 30
* Sec. 24. AS 21.27.640(d) is amended to read: 31 34-LS0461\A
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(d) If the director finds that the applicant or licensee [REGISTRANT] is 1
qualified and that application, license [REGISTRATION], or renewal fees have been 2
paid, the director may issue or renew the license [REGISTRATION]. 3
* Sec. 25. AS 21.27.650(a) is amended to read: 4
(a) An insurer may not transact business with a third-party administrator 5
unless 6
(1) the insurer holds a certificate of authority in this state if required 7
under this title; 8
(2) the third-party administrator is licensed [REGISTERED] under 9
this chapter [OR THE THIRD-PARTY ADMINISTRATOR HAS FILED A 10
CERTIFICATION WITH THE DIRECTOR CERTIFYING THAT THE THIRD-11
PARTY ADMINISTRATOR IS OPERATING ONLY FOR A FOREIGN INSURER 12
OTHER THAN A SELF-FUNDED MULTIPLE EMPLOYER WELFARE 13
ARRANGEMENT REGULATED UNDER AS 21.85 AND IS REGISTERED AS A 14
THIRD-PARTY ADMINISTRATOR BY THE THIRD-PARTY 15
ADMINISTRATOR'S RESIDENT INSURANCE REGULATOR IN A STATE 16
THAT THE DIRECTOR HAS DETERMINED HAS ENACTED PROVISIONS 17
SUBSTANTIALLY SIMILAR TO THOSE CONTAINED IN AS 21.27.630 - 18
21.27.650 AND THAT IS ACCREDITED BY THE NATIONAL ASSOCIATION OF 19
INSURANCE COMMISSIONERS]; 20
(3) the third-party administrator provides the director on January 1, 21
April 1, July 1, and October 1 of each year 22
(A) a list of persons who supervise or have responsibility over 23
personnel performing administrative functions, including claims administration 24
and payment, marketing administrative functions, premium accounting, 25
premium billing, coverage verification, underwriting, or certificate issuance 26
upon a subject resident, located, or to be performed in this state; 27
(B) a list of current insurers under contract; and 28
(C) other information the director may require; 29
(4) a written contract is in effect between the parties that establishes 30
the responsibilities of each party, indicates both parties' share of responsibility for a 31 34-LS0461\A
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particular function, and specifies the division of responsibilities; 1
(5) there is in effect a written contract between the insurer and third-2
party administrator that contains the following provisions: 3
(A) the insurer may terminate the contract for cause upon 4
written notice sent by certified mail to the third-party administrator and may 5
suspend the underwriting authority of the third-party administrator during a 6
dispute regarding the cause for termination; but the insurer must fulfill all 7
lawful obligations with respect to policies affected by the written agreement, 8
regardless of any dispute between the insurer and the third-party administrator; 9
(B) the third-party administrator shall render accounts to the 10
insurer detailing all transactions and remit all money due under the contract to 11
the insurer at least monthly; 12
(C) all money collected for the account of an insurer shall be 13
held by the third-party administrator as a fiduciary; 14
(D) all payments on behalf of the insurer shall be held by the 15
third-party administrator as a fiduciary; 16
(E) the third-party administrator may not retain more than three 17
months' estimated claims payments and allocated loss adjustment expenses; 18
(F) the third-party administrator shall maintain separate records 19
for each insurer in a form usable by the insurer; the insurer or its authorized 20
representative shall have the right to audit and the right to copy all accounts 21
and records related to the insurer's business; the director, in addition to other 22
authority granted in this title, shall have access to all books, bank accounts, and 23
records of the third-party administrator in a form usable to the director; any 24
trade secrets contained in books and records reviewed by the director, 25
including the identity and addresses of policyholders and certificate holders, 26
shall be kept confidential, except that the director may use the information in a 27
proceeding instituted against the third-party administrator or the insurer; 28
(G) the contract may not be assigned in whole or in part by the 29
third-party administrator; 30
(H) if the contract permits the third-party administrator to do 31 34-LS0461\A
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underwriting, the contract must include the following: 1
(i) the third-party administrator's maximum annual 2
premium volume; 3
(ii) the rating system and basis of the rates to be 4
charged; 5
(iii) the types of risks that may be written; 6
(iv) maximum limits of liability; 7
(v) applicable exclusions; 8
(vi) territorial limitations; 9
(vii) policy cancellation provisions; 10
(viii) the maximum policy term; and 11
(ix) that the insurer shall have the right to cancel or not 12
renew a policy of insurance subject to applicable state law; 13
(I) if the contract permits the third-party administrator to 14
administer claims on behalf of the insurer, the contract must include the 15
following: 16
(i) written settlement authority must be provided by the 17
insurer and may be terminated for cause upon the insurer's written 18
notice sent by certified mail to the third-party administrator or upon the 19
termination of the contract, but the insurer may suspend the settlement 20
authority during a dispute regarding the cause of termination; 21
(ii) claims shall be reported to the insurer within 30 22
days; 23
(iii) a copy of the claim file shall be sent to the insurer 24
upon request or as soon as it becomes known that the claim has the 25
potential to exceed an amount determined by the director or exceeds the 26
limit set by the insurer, whichever is less, involves a coverage dispute, 27
may exceed the third-party administrator's claims settlement authority, 28
is open for more than six months, involves extra contractual 29
allegations, or is closed by payment in excess of an amount set by the 30
director or an amount set by the insurer, whichever is less; 31 34-LS0461\A
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(iv) each party to the contract shall comply with unfair 1
claims settlement statutes and regulations; 2
(v) transmission of electronic data must occur at least 3
monthly if electronic claim files are in existence; and 4
(vi) claim files shall be the sole property of the insurer; 5
upon an order of liquidation of the insurer, the third-party administrator 6
shall have reasonable access to and the right to copy the files on a 7
timely basis; and 8
(J) the contract may not provide for commissions, fees, or 9
charges contingent upon savings obtained in the adjustment, settlement, and 10
payment of losses covered by the insurer's obligations; but a third-party 11
administrator may receive performance-based compensation for providing 12
hospital or other auditing services or may receive compensation based on 13
premiums or charges collected or the number of claims paid or processed. 14
* Sec. 26. AS 21.27.650(q) is amended to read: 15
(q) The director may, without advance notice or hearing, immediately suspend 16
by order the license [REGISTRATION] of a third-party administrator if the director 17
finds that one or more of the following circumstances exist: 18
(1) the third-party administrator is insolvent or impaired; 19
(2) a proceeding for bankruptcy, receivership, conservatorship, or 20
rehabilitation, or another delinquency proceeding regarding the third-party 21
administrator has been commenced in any state or by a governmental agency of 22
another jurisdiction; 23
(3) the third-party administrator is in an unsound condition, or is in a 24
condition or using methods or practices that render its further transaction of insurance 25
injurious to policy holders or the public. 26
* Sec. 27. AS 21.27.901 is amended to read: 27
Sec. 21.27.901. Licensure [REGISTRATION] of pharmacy benefits 28
managers; scope of business practice. (a) A person may not conduct business in the 29
state as a pharmacy benefits manager unless the person is licensed [REGISTERED] 30
with the director. 31 34-LS0461\A
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(b) A pharmacy benefits manager licensed [REGISTERED] under this section 1
may 2
(1) contract with an insurer to administer or manage pharmacy benefits 3
provided by an insurer for a covered person, including claims processing services for 4
and audits of payments for prescription drugs and medical devices and supplies; and 5
(2) contract with network pharmacies. 6
(c) A pharmacy benefits manager 7
(1) shall apply for license [REGISTRATION] following the same 8
procedures for licensure set out in AS 21.27.040; 9
(2) is subject to hearings and orders on violations; denial, nonrenewal, 10
suspension, or revocation of license [REGISTRATION]; penalties; and surrender of 11
license [REGISTRATION] under the procedures set out in AS 21.27.405 - 21.27.460. 12
(d) Each day that a pharmacy benefits manager conducts business in the state 13
as a pharmacy benefits manager without being licensed [REGISTERED] is a separate 14
violation of this section, and each separate violation is subject to the maximum civil 15
penalty under AS 21.97.020. 16
* Sec. 28. AS 21.27 is amended by adding new sections to read: 17
Sec. 21.27.903. Pharmacy benefit manager qualifications. (a) An 18
application for a pharmacy benefits manager license must be in a form prescribed by 19
the director. 20
(b) The director may only issue or renew a license if the director is satisfied 21
that the applicant is a trustworthy person. The director may not issue a license to an 22
applicant who has committed an act that is a cause for denial, nonrenewal, suspension, 23
or revocation of a registration or license in this state or another jurisdiction. 24
(c) An application must disclose 25
(1) information concerning the identity, professional history, 26
professional experience, and background history of all owners, officers, directors, or 27
partners; 28
(2) any administrative action taken against the owners, officers, 29
directors, or partners by a governmental agency of this or another jurisdiction and any 30
sanction imposed by a financial industry regulatory authority or arbitration 31 34-LS0461\A
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proceeding; 1
(3) any criminal prosecution in this state or another state or jurisdiction 2
of an owner, officer, director, or partner; the application must include the criminal 3
complaint, calendaring order, and other relevant legal documents. 4
(d) An application must designate a compliance officer for the pharmacy 5
benefits manager and include the name, business address, telephone number, 6
electronic mailing address, professional experience, and information concerning the 7
background history of the officer. 8
(e) An application must include 9
(1) the required application fee; 10
(2) the organizational documents of the pharmacy benefits manager, 11
including articles of incorporation, articles of association, partnership agreement, trade 12
name certificate, trust agreement, shareholder agreement, and other applicable 13
documents, as well as the endorsements to the required documents; 14
(3) the name and address of the pharmacy benefits manager's agent for 15
service of process in the state; 16
(4) the bylaws, rules, regulations, or similar documents regulating the 17
internal affairs of the pharmacy benefits manager; 18
(5) the name, electronic mailing address, physical address, official 19
position, and professional qualifications of each person who is responsible for the 20
conduct of affairs of the pharmacy benefits manager, including the board of directors, 21
board of trustees, executive committee, or other governing board or committee; the 22
principal officers in the case of a corporation, or the partners or members in the case of 23
a partnership, limited liability company, limited liability partnership, or association; 24
shareholders holding directly or indirectly 10 percent or more of the voting securities 25
of the pharmacy benefits manager; and any other person who exercises control or 26
influence over the affairs of the pharmacy benefits manager; 27
(6) certified financial statements for the preceding two years, or for 28
each year and partial year that the applicant has been in business if less than two years, 29
prepared by an independent certified public accountant establishing that the applicant 30
is solvent, that the applicant's system of accounting, internal control, and procedure is 31 34-LS0461\A
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operating effectively to provide reasonable assurance that money is promptly 1
accounted for and paid to the person entitled to the money, and any other information 2
that the director may require to review the current financial condition of the applicant. 3
Sec. 21.27.904. Pharmacy benefit manager required notifications. (a) A 4
licensed pharmacy benefit manager shall notify the director in writing, not later than 5
30 days after 6
(1) a change in the information contained within the licensee's license, 7
place of business, electronic mailing address, physical mailing address, or telephone 8
number; 9
(2) a change in compliance officer, residence, place of business, 10
mailing address, or phone number; 11
(3) the final disposition of an administrative action taken against the 12
licensee by a governmental agency of another state, by a governmental agency of 13
another jurisdiction, or by a financial industry regulatory authority sanction or 14
arbitration proceeding; in addition, a licensee shall submit to the director documents 15
relating to the final disposition on, including the final order and other relevant legal 16
documents in, the action; or 17
(4) a conviction of a misdemeanor or felony of the pharmacy benefits 18
manager, its officers, designated compliance officer, directors, partners, or owners. 19
(b) Failure to provide the information required under this section within 30 20
days is cause for denial, revocation, or suspension of license. 21
* Sec. 29. AS 21.27.905 is amended to read: 22
Sec. 21.27.905. Renewal of license [REGISTRATION]. (a) A pharmacy 23
benefits manager shall biennially renew a license [REGISTRATION] with the director 24
following the procedures for license renewal in AS 21.27.380. 25
(b) To renew a license [REGISTRATION] under this section, a pharmacy 26
benefits manager shall pay a renewal fee established by the director. The director shall 27
set the amount of the renewal fee to allow the renewal and oversight activities of the 28
division to be self-supporting. 29
* Sec. 30. AS 21.27.905 is amended by adding a new subsection to read: 30
(c) The fees required under (b) of this section must include fees to cover the 31 34-LS0461\A
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New Text Underlined [DELETED TEXT BRACKETED]
cost of 1
(1) salaries and benefits paid to the personnel of the division engaged 2
in the enforcement of this chapter; 3
(2) reasonable technology costs related to the enforcement process, 4
including the actual cost of software and hardware used in the enforcement process 5
and the cost of training personnel in the proper use of the software or hardware; and 6
(3) reasonable education and training costs incurred by the division to 7
maintain the proficiency and competence of the enforcing personnel. 8
* Sec. 31. AS 21.27.975(15) is amended to read: 9
(15) "pharmacy benefits manager" means a person that contracts with a 10
pharmacy on behalf of an insurer to process claims or pay pharmacies for prescription 11
drugs or medical devices and supplies or provide network management for pharmacies 12
regardless of ownership of the pharmacy benefits manager; 13
* Sec. 32. AS 21.27.630(f) is repealed. 14
* Sec. 33. This Act takes effect January 1, 2026. 15