Colorado 2025 Regular Session

Colorado Senate Bill SB071 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		First Regular Session
2	2		Seventy-fifth General Assembly
3	3		STATE OF COLORADO
4		-	~~REENGROSSED~~
5		-	This Version Includes All Amendments
6		-	~~Adopted~~ in the House of Introduction
	4	+	ENGROSSED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the House of Introduction
7	7		LLS NO. 25-0361.02 Brita Darling x2241
8	8		SENATE BILL 25-071
9	9		Senate Committees House Committees
10	10		Health & Human Services
11	11		A BILL FOR AN ACT
12	12		C
13	13		ONCERNING CERTAIN PRACTICES BY PERSONS PARTICIPATING IN THE101
14	14		SUPPLY CHAIN OF DRUGS PURCHASED UNDER THE FEDERAL 340B102
15	15		DRUG PRICING PROGRAM .103
16	16		Bill Summary
17	17		(Note: This summary applies to this bill as introduced and does
18	18		not reflect any amendments that may be subsequently adopted. If this bill
19	19		passes third reading in the house of introduction, a bill summary that
20	20		applies to the reengrossed version of this bill will be available at
21	21		http://leg.colorado.gov
22	22		.)
23	23		Under the federal 340B drug pricing program (340B program), a
24	24		covered entity, including certain hospitals, programs, and federally
25	25		qualified health centers (covered entity), that serves patients with low
26	26		income receives discounted outpatient drugs (340B drugs) from
27	27		manufacturers that participate in the federal medicaid and medicare
28	28		SENATE
29		-	3rd Reading Unamended
30		-	March 26, 2025
31		-	SENATE
32	29		Amended 2nd Reading
33	30		March 25, 2025
34	31		SENATE SPONSORSHIP
35		-	Michaelson Jenet and Rich, Hinrichsen, Amabile, Coleman, Exum, Frizell, Kolker,
36		-	Liston, Marchman, Mullica, Pelton R., Roberts, Snyder
	32	+	Michaelson Jenet and Rich, Hinrichsen
37	33		HOUSE SPONSORSHIP
38	34		Martinez and Taggart,
39	35		Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
40	36		Capital letters or bold & italic numbers indicate new material to be added to existing law.
41	37		Dashes through the words or numbers indicate deletions from existing law. programs.
42	38		Unless the receipt of 340B drugs is prohibited by the federal
43	39		department of health and human services, the bill prohibits a
44	40		manufacturer, wholesaler, third-party logistics provider, or repackager in
45	41		this state, or an agent, contractor, or affiliate of those entities, including
46	42		an entity that collects or processes health information, from directly or
47	43		indirectly denying, restricting, prohibiting, discriminating against, or
48	44		otherwise limiting the acquisition of a 340B drug by, or delivery of a
49	45		340B drug to, a covered entity, a pharmacy contracted with a covered
50	46		entity, or a location otherwise authorized by a covered entity to receive
51	47		and dispense 340B drugs.
52	48		The bill also prohibits a manufacturer from directly or indirectly
53	49		requiring a covered entity, a pharmacy contracted with a covered entity,
54	50		or any other location authorized to receive 340B drugs by a covered entity
55	51		to submit any health information, claims or utilization data, or other
56	52		specified data that does not relate to a claim submitted to certain federal
57	53		health care programs, unless the data is voluntarily furnished or required
58	54		to be furnished under federal law.
59	55		A violation of the prohibitions in the bill is an unfair or deceptive
60	56		trade practice under the "Colorado Consumer Protection Act" (act), and
61	57		the violator is subject to the enforcement provisions and penalties
62	58		contained in that act. The attorney general may investigate and enforce
63	59		the provisions of the bill, as well as a business harmed by a violation of
64	60		the provisions of the bill. In addition, a person regulated by the state
65	61		board of pharmacy (pharmacy board) that violates the provisions of the
66	62		bill may be subject to discipline by the pharmacy board against the
67	63		person's license, certification, or registration, as well as other penalties.
68	64		The bill requires a covered entity that is a hospital to annually post
69	65		on its public-facing website information concerning the annual, estimated,
70	66		aggregate financial benefit to the hospital covered entity resulting from
71	67		its ability to acquire pharmaceuticals at a discount through the 340B
72	68		program and a description of how the hospital covered entity uses savings
73	69		from participation in the 340B program.
74	70		Be it enacted by the General Assembly of the State of Colorado:1
75	71		SECTION 1. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)2
76	72		as follows:3
77	73		6-1-105. Unfair or deceptive trade practices - definitions.4
78	74		(1) A person engages in a deceptive trade practice when, in the course of5
79	75		the person's business, vocation, or occupation, the person:6
80	76		071-2- (iiii) VIOLATES ARTICLE 29 OF THIS TITLE 6.1
81	77		SECTION 2. In Colorado Revised Statutes, add article 29 to title2
82	78		6 as follows:3
83	79		ARTICLE 294
84	80		Colorado 340B Contract Pharmacy Protection Act5
85	81		6-29-101. Short title. T
86	82		HE SHORT TITLE OF THIS ARTICLE 29 IS THE6
87	83		"C
88	84		OLORADO 340B CONTRACT PHARMACY PROTECTION ACT".7
89	85		6-29-102. Legislative declaration. (1) T
90	86		HE GENERAL ASSEMBLY8
91	87		FINDS AND DETERMINES THAT:9
92	88		(a) T
93	89		HE 340B DRUG PRICING PROGRAM REQUIRES DRUG10
94	90		MANUFACTURERS TO PROVIDE DRUG DISCOUNTS ON IDENTIFIED11
95	91		OUTPATIENT DRUGS TO 340B COVERED ENTITIES AS A CONDITION OF12
96	92		MEDICAID AND MEDICARE PART B COVERING THOSE DRUGS;13
97	93		(b) C
98	94		ONGRESS CREATED THE 340B PROGRAM IN 1992, STATING14
99	95		THAT THE PROGRAM'S BENEFITS "ENABLE [COVERED] ENTITIES TO STRETCH15
100	96		SCARCE FEDERAL RESOURCES AS FAR AS POSSIBLE , REACHING MORE16
101	97		ELIGIBLE PATIENTS AND PROVIDING MORE COMPREHENSIVE SERVICES ."17
102	98		(H.R.
103	99		REP. NO.102-384 (II), AT 12 (1992)).18
104	100		(c) T
105	101		HE 340B PROGRAM SUPPORTS COLORADO'S MEDICALLY19
106	102		VULNERABLE AND UNDERSERVED POPULATIONS BY PROVIDING20
107	103		ADDITIONAL RESOURCES TO 340B COVERED ENTITIES AND ALLOWING21
108	104		THESE ENTITIES TO DETERMINE THE MOST EFFECTIVE USE OF THESE22
109	105		RESOURCES;23
110	106		(d) T
111	107		HE 340B PROGRAM IS A CRITICAL COMPONENT OF24
112	108		C
113	109		OLORADO'S SAFETY NET INFRASTRUCTURE;25
114	110		(e) C
115	111		OLORADO HAS SIXTY-EIGHT HOSPITALS STATEWIDE THAT26
116	112		PARTICIPATE IN THE 340B PROGRAM, WITH NEARLY NINETY PERCENT OF27
117	113		071
118	114		-3- THESE HOSPITALS OPERATING UNDER UNSUSTAINABLE LONG -TERM1
119	115		MARGINS;2
120	116		(f) A
121	117		DDITIONALLY, COLORADO HAS TWENTY FEDERALLY3
122	118		QUALIFIED HEALTH CENTERS, OR FQHCS, ALL OF WHICH PARTICIPATE IN4
123	119		THE 340B PROGRAM AND SIXTY-FIVE PERCENT OF WHICH CURRENTLY5
124	120		OPERATE WITH NEGATIVE MARGINS ;6
125	121		(g) C
126	122		OLORADO HOSPITALS PARTICIPATING IN THE 340B PROGRAM7
127	123		UTILIZE PROGRAM BENEFITS TO ADDRESS THEIR COMMUNITIES ' UNIQUE8
128	124		NEEDS, WHICH INCLUDE PROVIDING DIRECT PRESCRIPTION DRUG9
129	125		DISCOUNTS, SUBSIDIZING UNCOMPENSATED CHARITY CARE AND MEDICAID10
130	126		UNDERPAYMENTS TO REMAIN FINANCIALLY OPERATIONAL , SUPPORTING11
131	127		OPIOID USE DISORDER TREATMENT , FUNDING MOBILE HEALTH-CARE AND12
132	128		IMMUNIZATION CLINICS, AND PAYING FOR CHEMOTHERAPY AND INFUSION13
133	129		CENTERS;14
134	130		(h) C
135	131		OLORADO'S FQHCS ARE THE PRIMARY CARE MEDICAL HOME15
136	132		FOR ONE IN SEVEN COLORADANS, WITH EIGHTY-NINE PERCENT OF FQHCS'16
137	133		PATIENTS IN 2023 LIVING WITH FAMILY INCOMES BELOW TWO HUNDRED17
138	134		PERCENT OF THE FEDERAL POVERTY GUIDELINE AND TWENTY -THREE18
139	135		PERCENT WERE UNINSURED ;19
140	136		(i) C
141	137		OLORADO'S FQHCS UTILIZE 340B PROGRAM BENEFITS TO20
142	138		ADDRESS THEIR COMMUNITIES' UNIQUE NEEDS, WHICH INCLUDE REDUCED21
143	139		DRUG PRICES FOR PATIENTS, PROVIDER RECRUITMENT AND RETENTION ,22
144	140		AND EXPANSION OF ORAL HEALTH AND BEHAVIORAL HEALTH SERVICES23
145	141		THAT THE FQHCS WOULD OTHERWISE NOT BE ABLE TO OFFER ;24
146	142		(j) F
147	143		URTHER, COLORADO'S FQHCS EXPERIENCED AN ESTIMATED25
148	144		LOSS OF FOUR MILLION THREE HUNDRED DOLLARS IN 340B PROGRAM26
149	145		SAVINGS IN THE LAST TWO YEARS;27
150	146		071
151	147		-4- (k) CONVERSELY, IN 2023, SIXTEEN OF THE LARGEST1
152	148		PHARMACEUTICAL COMPANIES REPORTED SIX HUNDRED EIGHTY -FOUR2
153	149		BILLION DOLLARS IN EARNINGS IN THEIR ANNUAL FINANCIAL REPORTS , A3
154	150		FIGURE THAT WAS HIGHER THAN THE GROSS DOMESTIC PR ODUCT OF4
155	151		EIGHTY-EIGHT PERCENT OF THE COUNTRIES IN THE WORLD ;5
156	152		(l) I
157	153		N ADDITION, THE EIGHT LARGEST PHARMACEUTICAL6
158	154		COMPANIES PAID A COMBINED TWO BILLION DOLLARS IN FEDERAL TAXES7
159	155		ON TWO HUNDRED FOURTEEN BILLION DOLLARS OF DOMESTIC REVENUE IN8
160	156		2022,
161	157		ACCORDING TO THEIR 10-K ANNUAL FINANCIAL REPORTS;9
162	158		(m) I
163	159		N 2022, COLORADO HOSPITALS PROVIDED TWO BILLION ONE10
164	160		HUNDRED MILLION DOLLARS OF COMMUNITY BENEFIT ;11
165	161		(n) S
166	162		TARTING IN 2020, PHARMACEUTICAL MANUFACTURERS BEGAN12
167	163		TO UNLAWFULLY PLACE RESTRICTIONS ON 340B COVERED ENTITIES USING13
168	164		CONTRACT PHARMACIES TO DISPENSE DRUGS TO PATIENTS , UNILATERALLY14
169	165		LIMITING THE 340B PROGRAM'S BENEFITS; AND15
170	166		(o) I
171	167		N A LETTER DATED JULY 28, 2023, FROM WILLIAM TONG,16
172	168		ATTORNEY GENERAL OF CONNECTICUT, TO THE UNITED STATES SENATE17
173	169		340B
174	170		WORKING GROUP, AND SIGNED BY TWENTY-TWO OTHER BIPARTISAN18
175	171		ATTORNEYS GENERAL , THE ATTORNEYS GENERAL DECLARED THAT19
176	172		"
177	173		OUTPATIENT PHARMACIES ARE A KEY MECHANISM FOR THE DELIVERY OF20
178	174		LIFE-SAVING DRUGS TO ELIGIBLE PATIENTS, INCLUDING THOSE WHO HAVE21
179	175		LIMITED ACCESS TO TRANSPORTATION , LIVE IN REMOTE OR RURAL AREAS,22
180	176		OR ARE CONFINED TO THEIR HOMES AND RELY ON MAIL -ORDER23
181	177		PHARMACIES."24
182	178		(2) T
183	179		HEREFORE, THE GENERAL ASSEMBLY DECLARES THAT THIS25
184	180		ARTICLE 29 PROHIBITING PHARMACEUTICAL MANUFACTURERS FROM26
185	181		IMPOSING LIMITATIONS OR PLACING RESTRICTIVE CONDITIONS ON 340B27
186	182		071
187	183		-5- COVERED ENTITIES IS NECESSARY TO PROTECT COLORADO'S VULNERABLE1
188	184		PATIENTS AND SAFETY NET PROVIDERS AND TO ENSURE THAT2
189	185		MUCH-NEEDED FINANCIAL RESOURCES GENERATED BY THE 340B PROGRAM3
190	186		REMAIN IN COLORADO FOR THE BENEFIT OF THE PUBLIC .4
191	187		6-29-103. Definitions. A
192	188		S USED IN THIS ARTICLE 29, UNLESS THE5
193	189		CONTEXT OTHERWISE REQUIRES :6
194	190		(1) "340B
195	191		COVERED ENTITY" OR "COVERED ENTITY" HAS THE7
196	192		MEANING SET FORTH IN SECTION 340B (a)(4) OF THE FEDERAL "PUBLIC8
197	193		H
198	194		EALTH SERVICE ACT", 42 U.S.C. SEC. 256b (a)(4).9
199	195		(2) "340B
200	196		DRUG" MEANS A DRUG THAT:10
201	197		(a) I
202	198		S A COVERED OUTPATIENT DRUG WITHIN THE MEANING SET11
203	199		FORTH IN 42 U.S.C. SEC. 256b;12
204	200		(b) H
205	201		AS BEEN SUBJECT TO ANY OFFER FOR REDUCED PRICES BY A13
206	202		MANUFACTURER PURSUANT TO 42 U.S.C. SEC. 256b (a)(1); AND14
207	203		(c) I
208	204		S PURCHASED BY A COVERED ENTITY . AS USED IN THIS15
209	205		SUBSECTION (2)(c), A DRUG IS CONSIDERED "PURCHASED" IF IT WOULD16
210	206		HAVE BEEN PURCHASED BUT FOR THE RESTRICTION OR LIMITATION17
211	207		DESCRIBED IN SECTION 6-29-105.18
212	208		(3) "340B
213	209		DRUG PRICING PROGRAM" OR "340B PROGRAM" MEANS19
214	210		THE PROGRAM DESCRIBED IN 42 U.S.C. SEC. 256b (a)(1).20
215	211		(4) "340B
216	212		SAVINGS" MEANS THE DIFFERENCE BETWEEN THE
217	213		21
218	214		AGGREGATED MARKET RATE COSTS AND THE AGGREGATED ACQUISITION22
219	215		COSTS FOR 340B DRUGS.23
220	216		(5) "BOARD" MEANS THE STATE BOARD OF PHARMACY CREATED IN24
221	217		SECTION 12-280-104.25
222	218		(6) "FEDERAL HEALTH CARE PROGRAM " HAS THE MEANING SET26
223	219		FORTH IN SECTION 42 U.S.C. SEC. 1320a-7b (f).27
224	220		071
225	221		-6- (7) "HEALTH INFORMATION" MEANS INFORMATION, INCLUDING1
226	222		DEMOGRAPHIC INFORMATION COLLECTED FROM AN INDIVIDUAL OR A2
227	223		GROUP OF INDIVIDUALS THAT:3
228	224		(a) I
229	225		S CREATED OR RECEIVED BY A HEALTH -CARE PROVIDER,4
230	226		PHARMACY, HEALTH BENEFIT PLAN , EMPLOYER, OR HEALTH-CARE5
231	227		CLEARINGHOUSE; AND6
232	228		(b) R
233	229		ELATES TO THE PAST, PRESENT, OR FUTURE PHYSICAL OR7
234	230		MENTAL HEALTH OR CONDITION OF AN INDIVIDUAL , THE PROVISION OF8
235	231		HEALTH CARE TO AN INDIVIDUAL , OR THE PAST, PRESENT, OR FUTURE9
236	232		PAYMENT FOR THE PROVISION OF HEALTH CARE TO AN INDIVIDUAL .10
237	233		(8)
238	234		"MANUFACTURER" HAS THE MEANING SET FORTH IN SECTION11
239	235		12-280-103
240	236		(27).12
241	237		(9)
242	238		"PACKAGE" HAS THE MEANING SET FORTH IN 21 U.S.C. SEC.13
243	239		360eee (11)(A).14
244	240		(10) "PHARMACY" HAS THE MEANING SET FORTH IN SECTION15
245	241		12-280-103
246	242		(43).16
247	243		(11)
248	244		"REPACKAGER" HAS THE MEANING SET FORTH IN SECTION17
249	245		12-280-103
250	246		(46).18
251	247		(12)
252	248		"THIRD-PARTY LOGISTICS PROVIDER" HAS THE MEANING SET19
253	249		FORTH IN SECTION 12-280-103 (52.5).20
254	250		21
255	251		6-29-104. Applicability. T
256	252		HIS ARTICLE 29 APPLIES TO A22
257	253		MANUFACTURER,
258	254		THIRD-PARTY LOGISTICS PROVIDER, OR REPACKAGER23
259	255		OF A MANUFACTURER 'S DRUGS DOING BUSINESS IN THIS STATE AND24
260	256		ENGAGED IN THE PRODUCTION, MANUFACTURE, DISTRIBUTION, OR SALE OF25
261	257		A 340B DRUG IN THIS STATE.26
262	258		6-29-105. Acquisition of 340B drugs - prohibited acts - use of27
263	259		071
264	260		-7- savings - enforcement - penalties - nonpreemption - data exclusions.1
265	261		(1) Prohibited acts. O
266	262		N AND AFTER THE EFFECTIVE DATE OF THIS2
267	263		ARTICLE 29:3
268	264		(a) U
269	265		NLESS THE RECEIPT OF THE 340B DRUGS IS PROHIBITED BY4
270	266		THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES , A5
271	267		MANUFACTURER,
272	268		THIRD-PARTY LOGISTICS PROVIDER, OR REPACKAGER,6
273	269		OR AN AGENT, CONTRACTOR, OR AFFILIATE OF A MANUFACTURER , 7
274	270		THIRD-PARTY LOGISTICS PROVIDER , OR REPACKAGER, INCLUDING AN8
275	271		ENTITY THAT COLLECTS OR PROCESSES HEALTH INFORMATION , SHALL NOT,9
276	272		DIRECTLY OR INDIRECTLY, DENY, RESTRICT, PROHIBIT, DISCRIMINATE10
277	273		AGAINST, OR OTHERWISE LIMIT THE ACQUISITION OF A 340B DRUG BY, OR11
278	274		DELIVERY OF A 340B DRUG TO, A 340B COVERED ENTITY, A PHARMACY12
279	275		CONTRACTED WITH A 340B COVERED ENTITY, OR A LOCATION OTHERWISE13
280	276		AUTHORIZED BY A 340B COVERED ENTITY TO RECEIVE AND DISPENSE 340B14
281	277		DRUGS; AND15
282	278		(b) A
283	279		MANUFACTURER SHALL NOT DIRECTLY OR INDIRECTLY16
284	280		REQUIRE, INCLUDING AS A CONDITION , A 340B COVERED ENTITY, A17
285	281		PHARMACY CONTRACTED WITH A 340B COVERED ENTITY, OR ANY OTHER18
286	282		LOCATION AUTHORIZED TO RECEIVE 340B DRUGS BY A 340B COVERED19
287	283		ENTITY TO SUBMIT ANY HEALTH INFORMATION , CLAIMS OR UTILIZATION20
288	284		DATA, PURCHASING DATA, PAYMENT DATA, OR OTHER DATA THAT DOES21
289	285		NOT RELATE TO A CLAIM SUBMITTED TO A FEDERAL HEALTH CARE22
290	286		PROGRAM, UNLESS SUCH DATA IS VOLUNTARILY FURNISHED BY SUCH23
291	287		COVERED ENTITY OR OTHERWISE REQUIRED TO BE FURNISHED UNDER24
292	288		APPLICABLE FEDERAL LAW.25
293	289		(2) A
294	290		COVERED ENTITY THAT IS A REPORTING HOSPITAL , AS
295	291		26
296	292		DEFINED IN SECTION 25.5-1-701, SHALL NOT USE 340B SAVINGS FOR THE27
297	293		071
298	294		-8- FOLLOWING PURPOSES:1
299	295		(a) M
300	296		ORE THAN THIRTY-FIVE PERCENT OF TOTAL ANNUAL
301	297		2
302	298		COMPENSATION OR EXPENSE REIMBURSEMENT FOR THE HOSPITAL 'S BOARD3
303	299		OF DIRECTORS;4
304	300		(b) T
305	301		AX PENALTIES OR FINES ISSUED AGAINST THE HOSPITAL ;
306	302		5
307	303		(c) E
308	304		XPENSES RELATED TO ADVERTISING AND PUBLIC RELATIONS
309	305		6
310	306		THAT PROMOTE THE HOSPITAL 'S IMAGE, SERVICES, OR PROPOSALS, NOT7
311	307		INCLUDING COMMUNICATIONS REQUIRED BY LAW OR THAT ARE ESSENTIAL8
312	308		FOR PATIENT SAFETY AND PATIENT INFORMATION ;9
313	309		(d) L
314	310		OBBYING EXPENSES AND OTHER COSTS INTENDED TO
315	311		10
316	312		INFLUENCE LEGISLATION OR BALLOT MEASURES AT THE LOCAL , STATE, OR11
317	313		FEDERAL LEVEL;12
318	314		(e) T
319	315		RAVEL, LODGING, FOOD, OR BEVERAGE EXPENSES FOR THE
320	316		13
321	317		HOSPITAL'S BOARD OF DIRECTORS AND OFFICERS; AND14
322	318		(f) G
323	319		IFTS OR ENTERTAINMENT EXPENSES .
324	320		15
325	321		(3) Enforcement - penalties. (a) T HE ATTORNEY GENERAL MAY16
326	322		INVESTIGATE A COMPLAINT CONCERNING A VIOLATION OF THIS ARTICLE17
327	323		29.
328	324		A PERSON THAT VIOLATES THIS ARTICLE 29 RISKS THE PUBLIC'S
329	325		18
330	326		HEALTH AND ENGAGES IN AN UNFAIR OR DECEPTIVE TRADE PRACTICE19
331	327		PURSUANT TO SECTION 6-1-105 (1)(iiii) AND IS SUBJECT TO THE20
332	328		ENFORCEMENT PROVISIONS , CIVIL PENALTIES, AND DAMAGES SET FORTH21
333	329		IN ARTICLE 1 OF THIS TITLE 6.22
334	330		(b) E
335	331		ACH PACKAGE OF A 340B DRUG THAT CONSTITUTES A23
336	332		PROHIBITED ACT UNDER THIS ARTICLE 29 CONSTITUTES A SEPARATE24
337	333		VIOLATION OF SUBSECTION (1) OF THIS SECTION.25
338	334		(c) L
339	335		IMITED DISTRIBUTION OF A DRUG REQUIRED UNDER 21 U.S.C.26
340	336		SEC. 355-1 DOES NOT CONSTITUTE A VIOLATION OF THIS ARTICLE 29.27
341	337		071
342	338		-9- (d) A PERSON REGULATED BY THE STATE BOARD OF PHARMACY1
343	339		CREATED IN SECTION 12-280-104 MAY BE SUBJECT TO DISCIPLINE2
344	340		PURSUANT TO SECTION 12-280-108 (1)(c), (1)(d), OR (1)(i) FOR VIOLATING3
345	341		THIS ARTICLE 29.4
346	342		(4) Nonpreemption. N OTHING IN THIS ARTICLE 29 SHALL BE5
347	343		CONSTRUED OR APPLIED TO BE LESS RESTRICTIVE THAN ANY FEDERAL LAW6
348	344		APPLYING TO PERSONS REGULATED BY THIS SECTION . NOTHING IN THIS7
349	345		SECTION SHALL BE CONSTRUED OR APPLIED TO BE IN CONFLICT WITH ANY8
350	346		OF THE FOLLOWING:9
351	347		(a) A
352	348		PPLICABLE FEDERAL LAW AND RELATED REGULATIONS ; OR10
353	349		(b) O
354	350		THER LAWS OF THIS STATE, IF THE LAWS ARE COMPATIBLE11
355	351		WITH APPLICABLE FEDERAL LAW .12
356	352		(5)
357	353		Data exclusions. S UBSECTION (1) OF THIS SECTION DOES NOT13
358	354		PROHIBIT A MANUFACTURER FROM REQUIRING HEALTH INFORMATION OR14
359	355		OTHER DATA THAT A COVERED ENTITY IS REQUIRED TO FURNISH TO THE15
360	356		MANUFACTURER UNDER APPLICABLE FEDERAL LAW , INCLUDING DATA16
361	357		RELATING TO AN AUDIT IN ACCORDANCE WITH PROCEDURES ESTABLISHED17
362	358		BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER18
363	359		42
364	360		U.S.C. SEC. 256b (a)(5)(C).19
365	361		SECTION 3. In Colorado Revised Statutes, add 25-3-132 as20
366	362		follows:21
367	363		25-3-132. 340B drug pricing program transparency -22
368	364		definitions. (1) A
369	365		S USED IN THIS SECTION:23
370	366		(a) "340B
371	367		DRUG PRICING PROGRAM" OR "340B PROGRAM" MEANS24
372	368		THE PROGRAM DESCRIBED IN 42 U.S.C. SEC. 256b (a)(1).25
373	369		(b) "340B
374	370		SAVINGS" MEANS THE DIFFERENCE BETWEEN THE
375	371		26
376	372		AGGREGATED MARKET RATE COSTS AND THE AGGREGATED ACQUISITION27
377	373		071
378	374		-10- COSTS FOR 340B DRUGS.1
379	375		(c) "HOSPITAL COVERED ENTITY" MEANS A HOSPITAL LICENSED OR2
380	376		CERTIFIED BY THE DEPARTMENT PURSUANT TO THE DEPARTMENT 'S3
381	377		AUTHORITY UNDER SECTION 25-1.5-103 (1)(a) AND THAT IS A "COVERED4
382	378		ENTITY" AS DEFINED IN 42 U.S.C. SEC. 256b (a)(4).5
383	379		(2) E
384	380		XCEPT AS PROVIDED IN SUBSECTION (3) OF THIS SECTION,6
385	381		EACH HOSPITAL COVERED ENTITY THAT IS A REPORTING HOSPITAL , AS
386	382		7
387	383		DEFINED IN SECTION 25.5-1-701, SHALL INCLUDE THE FOLLOWING8
388	384		INFORMATION IN THE ANNUAL REPORT SUBMITTED PURSUANT TO SECTION9
389	385		25.5-1-703
390	386		(3):
391	387		10
392	388		(a) T
393	389		HE ANNUAL, REPORTED 340B SAVINGS TO
394	390		THE HOSPITAL11
395	391		COVERED ENTITY RESULTING FROM ITS ABILITY TO ACQUIRE12
396	392		PHARMACEUTICALS AT A DISCOUNT THROUGH THE 340B DRUG PRICING13
397	393		PROGRAM;14
398	394		(b) A
399	395		DESCRIPTION OF HOW THE HOSPITAL COVERED ENTITY USES15
400	396		SAVINGS FROM PARTICIPATION IN THE 340B PROGRAM;
401	397		16
402	398		(c) T
403	399		HE AGGREGATED MARKET RATE COSTS AND THE AGGREGATED
404	400		17
405	401		ACQUISITION COSTS FOR 340B DRUGS USED TO CALCULATE 340B SAVINGS;18
406	402		AND19
407	403		(d) T
408	404		HE TOTAL OPERATING COSTS OF THE HOSPITAL COVERED
409	405		20
410	406		ENTITY AND COSTS RELATING TO PROVIDING CHARITY CARE .21
411	407		(3) N
412	408		OTHING IN THIS SECTION REQUIRES THE PUBLIC DISCLOSURE22
413	409		OF RECORDS THAT ARE PUBLIC RECORDS UNDER THE "COLORADO OPEN23
414	410		R
415	411		ECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE 24, BUT THAT ARE24
416	412		EXEMPTED FROM DISCLOSURE UNDER THAT ACT .25
417	413		SECTION 4. Severability. If any provision of this act or the26
418	414		application thereof to any person or circumstance is held invalid, such27
419	415		071
420	416		-11- invalidity does not affect other provisions or applications of the act that1
421	417		can be given effect without the invalid provision or application, and to2
422	418		this end the provisions of this act are declared to be severable.3
423	419		SECTION 5. Act subject to petition - effective date. This act4
424	420		takes effect at 12:01 a.m. on the day following the expiration of the5
425	421		ninety-day period after final adjournment of the general assembly; except6
426	422		that, if a referendum petition is filed pursuant to section 1 (3) of article V7
427	423		of the state constitution against this act or an item, section, or part of this8
428	424		act within such period, then the act, item, section, or part will not take9
429	425		effect unless approved by the people at the general election to be held in10
430	426		November 2026 and, in such case, will take effect on the date of the11
431	427		official declaration of the vote thereon by the governor.12
432	428		071
433	429		-12-