Illinois 2025 2025-2026 Regular Session

Illinois Senate Bill SB2385 Introduced / Bill

Filed 02/07/2025

                    104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB2385 Introduced 2/7/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED: New Act Creates the Patient Access to Pharmacy Protection Act. Defines terms. Provides that no person, including a pharmaceutical manufacturer, may deny, restrict, prohibit, condition, or otherwise interfere with, either directly or indirectly, the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B covered entity or a 340B contract pharmacy authorized to receive 340B drugs on behalf of the 340B covered entity unless such receipt is prohibited by federal law. Provides that no person, including a pharmaceutical manufacturer, may impose any restriction on the ability of a 340B covered entity to contract with or designate a 340B contract pharmacy including restrictions relating to the number, location, ownership, or type of 340B contract pharmacy. Provides that no person, including a pharmaceutical manufacturer, may require or compel a 340B covered entity or 340B contract pharmacy to submit or otherwise provide ingredient cost or pricing data pertinent to 340B drugs unless required by State or federal law; institute requirements in any way relating to how a 340B covered entity manages its inventory of 340B drugs that are not required by a State or federal agency, including requirements relating to the frequency or scope of audits of inventory management systems of a 340B covered entity or a 340B contract pharmacy; or submit data or information that is not required by State or federal law as a condition for a 340B covered entity, its 340B contract pharmacy, or a location otherwise authorized by a 340B covered entity to receive 340B drugs. Sets forth provisions concerning enforcement of this Act; preemption of this Act; and severability of this Act. Effective immediately. LRB104 09642 BAB 19708 b   A BILL FOR 104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB2385 Introduced 2/7/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:  New Act New Act  Creates the Patient Access to Pharmacy Protection Act. Defines terms. Provides that no person, including a pharmaceutical manufacturer, may deny, restrict, prohibit, condition, or otherwise interfere with, either directly or indirectly, the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B covered entity or a 340B contract pharmacy authorized to receive 340B drugs on behalf of the 340B covered entity unless such receipt is prohibited by federal law. Provides that no person, including a pharmaceutical manufacturer, may impose any restriction on the ability of a 340B covered entity to contract with or designate a 340B contract pharmacy including restrictions relating to the number, location, ownership, or type of 340B contract pharmacy. Provides that no person, including a pharmaceutical manufacturer, may require or compel a 340B covered entity or 340B contract pharmacy to submit or otherwise provide ingredient cost or pricing data pertinent to 340B drugs unless required by State or federal law; institute requirements in any way relating to how a 340B covered entity manages its inventory of 340B drugs that are not required by a State or federal agency, including requirements relating to the frequency or scope of audits of inventory management systems of a 340B covered entity or a 340B contract pharmacy; or submit data or information that is not required by State or federal law as a condition for a 340B covered entity, its 340B contract pharmacy, or a location otherwise authorized by a 340B covered entity to receive 340B drugs. Sets forth provisions concerning enforcement of this Act; preemption of this Act; and severability of this Act. Effective immediately.  LRB104 09642 BAB 19708 b     LRB104 09642 BAB 19708 b   A BILL FOR
104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB2385 Introduced 2/7/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
New Act New Act
New Act
Creates the Patient Access to Pharmacy Protection Act. Defines terms. Provides that no person, including a pharmaceutical manufacturer, may deny, restrict, prohibit, condition, or otherwise interfere with, either directly or indirectly, the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B covered entity or a 340B contract pharmacy authorized to receive 340B drugs on behalf of the 340B covered entity unless such receipt is prohibited by federal law. Provides that no person, including a pharmaceutical manufacturer, may impose any restriction on the ability of a 340B covered entity to contract with or designate a 340B contract pharmacy including restrictions relating to the number, location, ownership, or type of 340B contract pharmacy. Provides that no person, including a pharmaceutical manufacturer, may require or compel a 340B covered entity or 340B contract pharmacy to submit or otherwise provide ingredient cost or pricing data pertinent to 340B drugs unless required by State or federal law; institute requirements in any way relating to how a 340B covered entity manages its inventory of 340B drugs that are not required by a State or federal agency, including requirements relating to the frequency or scope of audits of inventory management systems of a 340B covered entity or a 340B contract pharmacy; or submit data or information that is not required by State or federal law as a condition for a 340B covered entity, its 340B contract pharmacy, or a location otherwise authorized by a 340B covered entity to receive 340B drugs. Sets forth provisions concerning enforcement of this Act; preemption of this Act; and severability of this Act. Effective immediately.
LRB104 09642 BAB 19708 b     LRB104 09642 BAB 19708 b
    LRB104 09642 BAB 19708 b
A BILL FOR
SB2385LRB104 09642 BAB 19708 b   SB2385  LRB104 09642 BAB 19708 b
  SB2385  LRB104 09642 BAB 19708 b
1  AN ACT concerning regulation.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 1. Short title. This Act may be cited as the
5  Patient Access to Pharmacy Protection Act.
6  Section 5. Findings. The General Assembly finds that:
7  (a) It is within the traditional authority of the State to
8  regulate the acquisition and delivery of drugs to pharmacies
9  and providers.
10  (b) Drug manufacturers are impeding access to lifesaving
11  drugs to Illinois residents, especially those in rural and
12  medically underserved communities, by limiting or placing
13  conditions on acquisition and delivery of drugs purchased
14  through the federal 340B drug discount program by 340B covered
15  entities that utilize contract pharmacies to distribute 340B
16  drugs.
17  (c) The federal 340B statute is silent on distribution of
18  340B-acquired drugs to 340B covered entities and their
19  contract pharmacy partners.
20  (d) The State's compelling interest in preserving and
21  improving access to health care services requires it to ensure
22  that 340B covered entities continue to be allowed to contract
23  with pharmacies to receive 340B drugs and dispense them to the

 

104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB2385 Introduced 2/7/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
New Act New Act
New Act
Creates the Patient Access to Pharmacy Protection Act. Defines terms. Provides that no person, including a pharmaceutical manufacturer, may deny, restrict, prohibit, condition, or otherwise interfere with, either directly or indirectly, the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B covered entity or a 340B contract pharmacy authorized to receive 340B drugs on behalf of the 340B covered entity unless such receipt is prohibited by federal law. Provides that no person, including a pharmaceutical manufacturer, may impose any restriction on the ability of a 340B covered entity to contract with or designate a 340B contract pharmacy including restrictions relating to the number, location, ownership, or type of 340B contract pharmacy. Provides that no person, including a pharmaceutical manufacturer, may require or compel a 340B covered entity or 340B contract pharmacy to submit or otherwise provide ingredient cost or pricing data pertinent to 340B drugs unless required by State or federal law; institute requirements in any way relating to how a 340B covered entity manages its inventory of 340B drugs that are not required by a State or federal agency, including requirements relating to the frequency or scope of audits of inventory management systems of a 340B covered entity or a 340B contract pharmacy; or submit data or information that is not required by State or federal law as a condition for a 340B covered entity, its 340B contract pharmacy, or a location otherwise authorized by a 340B covered entity to receive 340B drugs. Sets forth provisions concerning enforcement of this Act; preemption of this Act; and severability of this Act. Effective immediately.
LRB104 09642 BAB 19708 b     LRB104 09642 BAB 19708 b
    LRB104 09642 BAB 19708 b
A BILL FOR

 

 

New Act



    LRB104 09642 BAB 19708 b

 

 



 

  SB2385  LRB104 09642 BAB 19708 b


SB2385- 2 -LRB104 09642 BAB 19708 b   SB2385 - 2 - LRB104 09642 BAB 19708 b
  SB2385 - 2 - LRB104 09642 BAB 19708 b
1  patients of 340B covered entities in accordance with federal
2  law.
3  (e) That addressing accessibility of these life-saving
4  medications is a matter of health, safety, and welfare for the
5  people of the State of Illinois.
6  Section 10. Definitions. As used in this Act:
7  "340B drug discount program" means the program established
8  under Section 340B of the federal Public Health Service Act,
9  42 U.S.C. 256b.
10  "340B contract pharmacy" means any pharmacy that is under
11  contract with a 340B covered entity to dispense 340B drugs on
12  behalf of the 340B covered entity and is either (i) located in
13  Illinois and qualifies as a pharmacy under Section 3 of the
14  Pharmacy Practice Act; or (ii) is located in a state,
15  commonwealth, or territory of the United States, other than
16  Illinois, and dispenses 340B drugs on behalf of the 340B
17  covered entity.
18  "340B covered entity" means an entity in Illinois that
19  qualifies as a covered entity under Section 340B of the
20  federal Public Health Service Act, 42 U.S.C. 256b(a)(4).
21  "340B drug" means a drug that has been subject to any offer
22  for reduced prices by a manufacturer pursuant to 42 U.S.C.
23  256b and is purchased by a 340B covered entity.
24  "Department" means the Department of Financial and
25  Professional Regulation.

 

 

  SB2385 - 2 - LRB104 09642 BAB 19708 b


SB2385- 3 -LRB104 09642 BAB 19708 b   SB2385 - 3 - LRB104 09642 BAB 19708 b
  SB2385 - 3 - LRB104 09642 BAB 19708 b
1  "Manufacturer" has the meaning given to that term in the
2  Wholesale Drug Distribution Licensing Act.
3  "Person" means and includes a natural person, partnership,
4  association, corporation, or any other legal business entity,
5  but does not include any federal or State government entity or
6  body.
7  "Secretary" means the Secretary of Financial and
8  Professional Regulation.
9  Section 15. Protection of patient access to pharmacy.
10  (a) No person, including a pharmaceutical manufacturer,
11  may deny, restrict, prohibit, condition, or otherwise
12  interfere with, either directly or indirectly, the acquisition
13  of a 340B drug by, or delivery of a 340B drug to, a 340B
14  covered entity or a 340B contract pharmacy authorized to
15  receive 340B drugs on behalf of the 340B covered entity unless
16  such receipt is prohibited by federal law.
17  (b) No person, including a pharmaceutical manufacturer,
18  may impose any restriction on the ability of a 340B covered
19  entity to contract with or designate a 340B contract pharmacy
20  including restrictions relating to the number, location,
21  ownership, or type of 340B contract pharmacy.
22  (c) No person, including a pharmaceutical manufacturer,
23  may require or compel a 340B covered entity or 340B contract
24  pharmacy to:
25  (1) submit or otherwise provide ingredient cost or

 

 

  SB2385 - 3 - LRB104 09642 BAB 19708 b


SB2385- 4 -LRB104 09642 BAB 19708 b   SB2385 - 4 - LRB104 09642 BAB 19708 b
  SB2385 - 4 - LRB104 09642 BAB 19708 b
1  pricing data pertinent to 340B drugs unless required by
2  State or federal law;
3  (2) institute requirements in any way relating to how
4  a 340B covered entity manages its inventory of 340B drugs
5  that are not required by a State or federal agency,
6  including requirements relating to the frequency or scope
7  of audits of inventory management systems of a 340B
8  covered entity or a 340B contract pharmacy; or
9  (3) submit data or information that is not required by
10  State or federal law as a condition for a 340B covered
11  entity, its 340B contract pharmacy, or a location
12  otherwise authorized by a 340B covered entity to receive
13  340B drugs.
14  (d) Each individual saleable unit, as such term is defined
15  in 21 U.S.C. 360eee-11, of 340B drugs that is subject to a
16  prohibited act in subsections (a) and (b) shall constitute a
17  separate violation of this Act. Each communication received by
18  a 340B covered entity or 340B contract pharmacy in violation
19  of subsection (c) shall constitute a separate violation of
20  this Act.
21  Section 20. Enforcement.
22  (a) The Department is authorized to enforce this Act and
23  investigate possible violations of this Act by any person,
24  including a pharmaceutical manufacturer, including, but not
25  limited to, the issuance of subpoenas to:

 

 

  SB2385 - 4 - LRB104 09642 BAB 19708 b


SB2385- 5 -LRB104 09642 BAB 19708 b   SB2385 - 5 - LRB104 09642 BAB 19708 b
  SB2385 - 5 - LRB104 09642 BAB 19708 b
1  (1) require the person, including a pharmaceutical
2  manufacturer, to file a statement or report or answer
3  interrogatories in writing as to all information relevant
4  to the alleged violations;
5  (2) examine under oath any person, including a
6  pharmaceutical manufacturer, who possesses knowledge or
7  information directly related to the alleged violations; or
8  (3) examine any record, book, document, account, or
9  paper necessary to investigate the alleged violation.
10  (b) If the Department determines that there is a reason to
11  believe that any person, including a pharmaceutical
12  manufacturer, has violated this Act, the Secretary may, in the
13  name of the People of the State of Illinois, through the
14  Attorney General of the State of Illinois or the State's
15  Attorney of a county in which the action is brought, bring an
16  action to obtain, and a court may order:
17  (1) temporary, preliminary, or permanent injunctive
18  relief for any act, policy, or practice that violates this
19  Act;
20  (2) money damages to be paid to the 340B covered
21  entity as a result of the violation of this Section;
22  (3) the assessment of a civil penalty of up to $10,000
23  for each violation of Section 15; or
24  (4) any other relief.
25
26  (c) Whenever a 340B covered entity or 340B contract

 

 

  SB2385 - 5 - LRB104 09642 BAB 19708 b


SB2385- 6 -LRB104 09642 BAB 19708 b   SB2385 - 6 - LRB104 09642 BAB 19708 b
  SB2385 - 6 - LRB104 09642 BAB 19708 b
1  pharmacy has reason to believe that any person, including a
2  pharmaceutical manufacturer, has violated Section 15, a 340B
3  covered entity or 340B contract pharmacy may bring a civil
4  action to obtain, and a court may order:
5  (1) temporary, preliminary, or permanent injunctive
6  relief for any act, policy, or practice that violates this
7  Act;
8  (2) money damages to be paid to the 340B covered
9  entity as a result of the violation of this Section;
10  (3) the assessment of a civil penalty of up to $10,000
11  for each violation of Section 15;
12  (4) reimbursement for the costs and reasonable
13  attorney's fees incurred in bringing the action; or
14  (5) any other relief.
15  (d) The actions described in subsections (b) and (c) may
16  be consolidated or combined if a court believes that an action
17  in such form is in the best interests of judicial economy. If
18  an action brought under subsection (b) involves the same or
19  similar allegations as an action brought under subsection (c),
20  then the actions may be combined.
21  Section 25. Preemption.
22  (a) Nothing in this Act shall be construed or applied to be
23  less restrictive than federal law for a person regulated by
24  this Act.
25  (b) Nothing in this Act shall be construed or applied in a

 

 

  SB2385 - 6 - LRB104 09642 BAB 19708 b


SB2385- 7 -LRB104 09642 BAB 19708 b   SB2385 - 7 - LRB104 09642 BAB 19708 b
  SB2385 - 7 - LRB104 09642 BAB 19708 b
1  manner that would conflict with:
2  (1) applicable federal law; or
3  (2) other laws of this State if the State law is
4  compatible with applicable federal law.
5  (c) Limited distribution of a drug required under 21
6  U.S.C. 355-1 may not to be construed as a violation of this
7  Act.
8  Section 97. Severability. If any provision of this Act or
9  its application to any person or circumstance is held invalid,
10  the invalidity of that provision or application does not
11  affect other provisions or applications of this Act that can
12  be given effect without the invalid provision or application.
13  Each paragraph defining "340B contract pharmacy" in Section 10
14  is severable.

 

 

  SB2385 - 7 - LRB104 09642 BAB 19708 b