| 42 | | - | 2 04-01-2025 09:59:55 ANS107 |
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| 40 | + | 2 01/16/2025 8:32:23 AM ANS107 |
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| 41 | + | patients by eliminating certain anticompetitive business tactics as a basic 1 |
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| 42 | + | tenet of this act. 2 |
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| 43 | + | 3 |
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| 44 | + | SECTION 2. Arkansas Code Title 17, Chapter 92, Subchapter 4, is 4 |
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| 45 | + | amended to add an additional section to read as follows: 5 |
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| 46 | + | 17-92-414. Prohibition on pharmacy permits, specialty permits, 6 |
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| 47 | + | hospital pharmaceutical services permits, and ambulatory care center pharmacy 7 |
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| 48 | + | permits — Definitions. 8 |
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| 49 | + | (a) As used in this section: 9 |
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| 50 | + | (1)(A) "Healthcare payor" means the same as defined in § 23 -92-10 |
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| 51 | + | 503. 11 |
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| 52 | + | (B) "Healthcare payor" includes an entity that: 12 |
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| 53 | + | (i) Is managed by a healthcare payor or is a 13 |
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| 54 | + | subsidiary of a healthcare payor; or 14 |
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| 55 | + | (ii) Has a direct or indirect ownership interest in 15 |
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| 56 | + | a healthcare payor. 16 |
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| 57 | + | (C)(i) "Healthcare payor" does not include a participating 17 |
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| 58 | + | provider that has an ownership interest in a Medicaid provider -led organized 18 |
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| 59 | + | care system unless the participating provider is a managed care company, 19 |
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| 60 | + | healthcare insurer, pharmacy benefits manager, or otherwise has direct or 20 |
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| 61 | + | indirect common ownership with a managed care company, healthcare insurer, or 21 |
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| 62 | + | pharmacy benefits manager; 22 |
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| 63 | + | (2) "Participating provider" means the same as defined in § 20 -23 |
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| 64 | + | 77-2703; 24 |
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| 65 | + | (3)(A) "Permit" means a permit issued under § 17 -92-405. 25 |
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| 66 | + | (B) "Permit" includes a pharmacy permit for a mail -order 26 |
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| 67 | + | pharmacy; and 27 |
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| 68 | + | (4)(A) "Pharmacy benefits manager" means the same as defined in 28 |
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| 69 | + | § 23-92-503. 29 |
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| 70 | + | (B) "Pharmacy benefits manager" includes an entity that: 30 |
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| 71 | + | (i) Is managed by a pharmacy benefits manager or is 31 |
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| 72 | + | a subsidiary of a pharmacy benefits manager; or 32 |
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| 73 | + | (ii) Has a direct or indirect ownership interest in 33 |
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| 74 | + | a pharmacy benefits manager. 34 |
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| 75 | + | (b) A healthcare payor or pharmacy benefits manager shall not acquire 35 |
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| 76 | + | direct or indirect interest in, or otherwise hold, directly or indirectly, a 36 HB1150 |
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| 44 | | - | |
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| 45 | | - | tenet of this act. 1 |
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| 46 | | - | 2 |
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| 47 | | - | SECTION 2. Arkansas Code Title 17, Chapter 92, Subchapter 4, is 3 |
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| 48 | | - | amended to add additional sections to read as follows: 4 |
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| 49 | | - | 17-92-416. Prohibition on certain pharmacy permits for retail sale of 5 |
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| 50 | | - | drugs or medicines — Definitions. 6 |
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| 51 | | - | (a) As used in this section: 7 |
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| 52 | | - | (1)(A) "Permit" means a permit issued under § 17 -92-405. 8 |
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| 53 | | - | (B) "Permit" includes a pharmacy permit for a mail -order pharmacy; and 9 |
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| 54 | | - | (2)(A) "Pharmacy benefits manager" means the same as defined in 10 |
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| 55 | | - | § 23-92-503. 11 |
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| 56 | | - | (B) "Pharmacy benefits manager" includes an entity that: 12 |
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| 57 | | - | (i) Is managed by a pharmacy benefits manager or is 13 |
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| 58 | | - | a subsidiary of a pharmacy benefits manager; or 14 |
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| 59 | | - | (ii) Has a direct or indirect ownership interest in 15 |
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| 60 | | - | a pharmacy benefits manager. 16 |
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| 61 | | - | (b) A pharmacy benefits manager shall not acquire direct or indirect 17 |
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| 62 | | - | interest in, or otherwise hold, directly or indirectly, a permit under § 17 -18 |
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| 63 | | - | 92-405 for the retail sale of drugs or medicines in this state. 19 |
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| 64 | | - | (c) On and after the effective date of this act, the Arkansas State 20 |
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| 65 | | - | Board of Pharmacy shall either revoke or not renew a permit of an entity that 21 |
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| 66 | | - | violates this section. 22 |
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| 67 | | - | (d)(1) The board may issue a limited use permit for certain rare, 23 |
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| 68 | | - | orphan, or limited distribution drugs that are otherwise unavailable in the 24 |
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| 69 | | - | market to a patient or a pharmacy that would otherwise be prohibited under 25 |
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| 70 | | - | this section. 26 |
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| 71 | | - | (2)(A)(i) The board may assess the need for rare, orphan, or 27 |
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| 72 | | - | limited distribution drugs for a limited use permit for certain rare, orphan, 28 |
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| 73 | | - | or limited distribution drugs under subdivision (d)(1) of this section before 29 |
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| 74 | | - | revocation or renewal of an existing retail permit for a pharmacy. 30 |
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| 75 | | - | (ii) If the assessment made by the board in 31 |
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| 76 | | - | subdivision (d)(2)(A)(i) of this section determines that a rare, orphan, or 32 |
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| 77 | | - | limited distribution drug is otherwise unavailable in the market to a patient 33 |
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| 78 | | - | or pharmacy that would otherwise be prohibited in this section, the board 34 |
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| 79 | | - | shall convert the retail permit for the prohibited pharmacy to a limited use 35 |
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| 80 | | - | permit for that pharmacy for a period of no less than ninety (90) days. 36 As Engrossed: H2/11/25 H3/18/25 H4/1/25 HB1150 |
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| 81 | | - | |
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| 82 | | - | 3 04-01-2025 09:59:55 ANS107 |
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| 83 | | - | |
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| 84 | | - | |
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| 85 | | - | (B) This subsection shall expire on September 1, 2027. 1 |
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| 86 | | - | (3)(A) Before the effective date of this section, the board 2 |
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| 87 | | - | shall adopt a written policy to implement subdivision (d)(1) of this section. 3 |
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| 88 | | - | (B) The written policy under subdivision (d)(3)(A) of this 4 |
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| 89 | | - | section shall establish: 5 |
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| 90 | | - | (i) The process in which a patient, pharmacy, or 6 |
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| 91 | | - | healthcare provider may notify the board of a rare, orphan, or limited 7 |
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| 92 | | - | distribution drug unavailable in the market; 8 |
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| 93 | | - | (ii) The process in which a pharmacy may request a 9 |
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| 94 | | - | limited use permit under subdivision (d)(1) of this section; 10 |
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| 95 | | - | (iii) The timeline in which the board must make a 11 |
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| 96 | | - | decision; and 12 |
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| 97 | | - | (iv) The process for emergency determinations due to 13 |
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| 98 | | - | patient need. 14 |
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| 99 | | - | (e) The board may extend the use of a retail permit or issue a renewal of a 15 |
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| 100 | | - | retail permit for a pharmacy that offers same -day patient access for 16 |
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| 101 | | - | pharmacist services, a prescription for a controlled substance, mental health 17 |
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| 102 | | - | services, or other critical patient healthcare services for a period of time 18 |
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| 103 | | - | as determined by the board if there is a pending sale of the pharmacy to an 19 |
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| 104 | | - | eligible buyer. 20 |
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| 105 | | - | (f) This section does not apply to a pharmacy employer and a pharmacy 21 |
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| 106 | | - | that: 22 |
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| 107 | | - | (1) Has direct or indirect interest in a pharmacy benefits 23 |
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| 108 | | - | manager; 24 |
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| 109 | | - | (2) The pharmacy employer is the sole Arkansas client of the 25 |
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| 110 | | - | pharmacy benefits manager that the pharmacy employer has a direct or indirect 26 |
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| 111 | | - | interest in; and 27 |
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| 112 | | - | (3) Exclusively services the employees and dependents of the 28 |
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| 113 | | - | pharmacy employer while utilizing the affiliated pharmacy benefits manager in 29 |
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| 114 | | - | this state. 30 |
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| 115 | | - | 31 |
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| 116 | | - | 17-92-417. Notice required. 32 |
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| 117 | | - | (a)(1) The Arkansas State Board of Pharmacy shall conduct an initial 33 |
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| 118 | | - | assessment of each active retail pharmacy permit that was issued under § 17 -34 |
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| 119 | | - | 92-405 as of July 1, 2025, and shall send written notice to each pharmacy 35 |
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| 120 | | - | permit holder that the board reasonably believes will violate § 17 -92-416 at 36 As Engrossed: H2/11/25 H3/18/25 H4/1/25 HB1150 |
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| 121 | | - | |
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| 123 | | - | |
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| 124 | | - | |
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| 125 | | - | least ninety (90) days before January 1, 2026. 1 |
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| 126 | | - | (2) As used in subdivision (a)(1) of this section, "written 2 |
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| 127 | | - | notice" means actual notice to the pharmacy permit holder via mail or email. 3 |
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| 128 | | - | (b) The written notice required under subdivision (a)(1) of this 4 |
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| 129 | | - | section shall include: 5 |
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| 130 | | - | (1) A list of each pharmacy benefits manager that holds a direct 6 |
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| 131 | | - | or indirect interest in, or otherwise holds, directly or indirectly, a permit 7 |
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| 132 | | - | under § 17-92-405 for the retail sale of drugs or medicines in this state 8 |
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| 133 | | - | held by the pharmacy permit holder; 9 |
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| 134 | | - | (2) A phone number and email address that is monitored by the 10 |
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| 135 | | - | board during regular business hours; and 11 |
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| 136 | | - | (3)(A) A list of Arkansas pharmacies that hold an active retail 12 |
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| 137 | | - | pharmacy permit that are not reasonably expected to violate § 17 -92-416 as of 13 |
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| 138 | | - | January 1, 2026. 14 |
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| 139 | | - | (B) The list in subdivision (b)(3)(A) of this section 15 |
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| 140 | | - | shall include: 16 |
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| 141 | | - | (i) The name of the pharmacy; 17 |
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| 142 | | - | (ii) The phone number of the pharmacy; 18 |
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| 143 | | - | (iii) The physical address of the pharmacy; 19 |
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| 144 | | - | (iv) The website of the pharmacy, if known; and 20 |
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| 145 | | - | (v) An email address for the pharmacy, if known. 21 |
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| 146 | | - | (C) If the board has a searchable website that includes 22 |
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| 147 | | - | the information required in subdivision (b)(3)(B) of this section, the board 23 |
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| 148 | | - | may provide the website information in lieu of the list. 24 |
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| 149 | | - | (c)(1)(A) A pharmacy permit holder with written notice from the board 25 |
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| 150 | | - | in subdivision (a)(1) of this section shall provide written notice at least 26 |
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| 151 | | - | sixty (60) days before January 1, 2026, to each patient and each patient’s 27 |
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| 152 | | - | prescribing healthcare provider that has used the pharmacy within the 28 |
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| 153 | | - | previous twelve (12) months that the pharmacy can no longer dispense retail 29 |
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| 154 | | - | drugs to the patient on or after January 1, 2026. 30 |
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| 155 | | - | (B) As used in subdivision (c)(1)(A) of this section, 31 |
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| 156 | | - | "written notice" means actual notice to the patient via mail, email, or 32 |
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| 157 | | - | through the pharmacy’s patient portal. 33 |
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| 158 | | - | (2) Written notice required in subdivision (c)(1)(A) of this 34 |
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| 159 | | - | section shall include the information under subdivisions (b)(2) and (b)(3) of 35 |
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| 160 | | - | this section provided by the board to the pharmacy permit holder. 36 As Engrossed: H2/11/25 H3/18/25 H4/1/25 HB1150 |
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| 161 | | - | |
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| 162 | | - | 5 04-01-2025 09:59:55 ANS107 |
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| 163 | | - | |
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| 164 | | - | |
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| 165 | | - | 1 |
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| 166 | | - | SECTION 3. DO NOT CODIFY. Effective date. 2 |
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| 167 | | - | This act is effective on and after January 1, 2026. 3 |
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| 168 | | - | 4 |
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| 169 | | - | /s/J. Moore 5 |
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| 78 | + | 3 01/16/2025 8:32:23 AM ANS107 |
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| 79 | + | permit under § 17-92-405 for the retail sale of drugs or medicines in this 1 |
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| 80 | + | state. 2 |
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| 81 | + | (c) On and after the effective date of this act, the Arkansas State 3 |
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| 82 | + | Board of Pharmacy shall revoke a permit of an entity that violates this 4 |
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| 83 | + | section. 5 |
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