Oklahoma 2022 Regular Session

Oklahoma House Bill HB2123 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	3	+	ENGR. S. A. TO ENGR. H. B. NO. 2123 Page 1 1
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	28	+	ENGROSSED SENATE AMENDMENT
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3	31		BILL NO. 2123 By: McEntire, Townley, Frix,
4	32		Grego, Newton, Moore, Pae,
5	33		Boles, Johns, Phillips,
6	34		Lawson, Burns, Hilbert,
7	35		Sterling, Roe and Caldwell
8	36		(Chad) of the House
9	37
10	38		and
11	39
12	40		McCortney, Stephens, Hicks
13	41		and Taylor of the Senate
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	46	+	An Act relating to insurance; defining term; amending
	47	+	36 O.S. 2011, Section 121, which relates to
	48	+	computation of time; including the Pharmacy Choice
	49	+	Commission; ***Pharmacy Choice Commission with
	50	+	certain duties and authorities; author izing the
	51	+	Insurance Commissioner to employ certain persons;
	52	+	providing for certain expenses to be charged to
	53	+	certain entities; requiring filing and keeping of a
	54	+	certain affidavit; *** confidentiality and privileged
	55	+	information; including the Pharmacy Choice
	56	+	Commission; providing for codification; and declaring
	57	+	an emergency.
18	58
19	59
20		-	An Act relating to insurance; clarifying reference;
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	62	+	AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
	63	+	entire bill and insert
	64	+
	65	+	“An Act relating to insurance; clarifying reference;
21	66		amending 36 O.S. 2011, Section 121, which r elates to
22	67		computation of time; clarifying reference; amending
23	68		36 O.S. 2011, Section 307, as amended by Section 1,
24	69		Chapter 362, O.S.L. 2017 (36 O.S. Supp. 2020, Section
25	70		307), which relates to the duties of the Insurance
26	71		Commissioner; creating exceptions; re quiring
27	72		Commissioner report certain information to Pharmacy
28	73		Choice Commission; amending 36 O.S. 2011, Section
29	74		312A, as amended by Section 2, Chapter 298, O.S.L.
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30	101		2015 (36 O.S. Supp. 2020, Section 312A), which
31	102		relates to enforcement and recording of penaltie s and
32	103		fees; providing for enforcement of certain actions by
33	104		the Pharmacy Choice Commission; modifying penalties
34	105		Commissioner and Pharmacy Choice Commission may
35	106		impose; amending 36 O.S. 2011, Section 313, which
36	107		relates to orders and notices; specifying
37	108		requirements for Pharmacy Choice Commission orders
38	109		and notices; requiring the Pharmacy Choice Commission
39	110		to comply with certain requirements; amending 36 O.S.
40	111		2011, Section 319, which relates to hearings;
41	112		requiring Pharmacy Choice Commission to conduct
42	113		certain hearings; requiring final order be issued in
43	114		certain time period; specifying that Commission
44	115		members not receive compensation; amending 36 O.S.
45	116		2011, Section 332, which relates to general duties
46		-	and powers; vesting the Pharmacy Choice Commission ~~ENR. H. B. NO. 2123 Page 2~~
	117	+	and powers; vesting the Pharmacy Choice Commission
47	118		with certain duties and powers created by Insurance
48	119		Commissioner; providing for certain expenses to be
49	120		charged to certain entities; amending 36 O.S. 2011,
50	121		Section 907, which relates to the general powers of
51	122		the Insurance Commissioner; adding PBMs to entities
52	123		Insurance Commissioner may examine; amending Section
53	124		8, Chapter 426, O.S.L. 2019 (36 O.S. Supp. 2020,
54	125		Section 6965), which relates to the power to
55	126		investigate; authorizing Commissioner to examine PBMs
56	127		in certain circumstances; modifying time for certain
57	128		response; amending Section 9, Chapter 426, O.S.L.
58	129		2019 (36 O.S. Supp. 2020, Section 6966), which
59	130		relates to complaints of certain violations; creating
60	131		the Patient's Right to Pharmacy Choice Commission;
61	132		adding complaints Commissioner may hear; adding to
62	133		Commissioner’s powers for violation of certain acts;
63	134		authorizing Pharmacy Choice Commission to hold
64	135		hearings in certain circumstances; authorizing
65	136		Commission to impose certain disciplinary action to
66	137		certain persons; modifying appointments of initial
67	138		members; providing for election of chair and vice -
68	139		chair; establishing terms for certain hearings;
69	140		modifying persons who may request a full record of
70	141		proceedings be made; allowing certain parties to
71	142		intervene in certain hearings; adding Pharmacy Choice
72	143		Commission as entity to hold certain hearings and
73	144		require certain reporting; amending Section 10,
74	145		Chapter 426, O.S.L. 2019 (36 O.S. Supp. 2020, Section
75	146		6967), which relates to confidentiality and
76	147		privileged information; modifying information deemed
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77	174		confidential in certain circ umstances; adding
78	175		Pharmacy Choice Commission as entity for certain
79	176		disclosures and confidentiality; construing
80	177		provision; providing for codification; and declaring
81	178		an emergency.
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85		-
86		-	SUBJECT: Insurance
87		-
88	182		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
89		-	ENR. H. B. NO. 2123 Page 3
90	183		SECTION 1. NEW LAW A new section of law to be codified
91	184		in the Oklahoma Statutes as Section 107.3 of Title 36, unless there
92	185		is created a duplication in numbering, reads as follows:
93		-
94	186		When used with reference to the administration of the Oklahoma
95		-	Insurance Code, "Pharmacy Choice Commission " means the Patient’s
	187	+	Insurance Code, “Pharmacy Choice Commission” means the Patient’s
96	188		Right to Pharmacy Choice Commission established by Section 10 of
97	189		this act.
98		-
99	190		SECTION 2. AMENDATORY 36 O.S. 2011, Section 121, is
100	191		amended to read as follows:
101		-
102	192		Section 121. In com puting any period of time prescribed or
103	193		allowed by this title, by the rules of the Insurance Commissioner,
104	194		or by any applicable statute, the day of the act, event , or default
105	195		from which the designated period of time begins to run shall not be
106	196		included. The last day of the period so computed shall be included,
107	197		unless it is a Saturday, a Sunday, a legal holiday as defined by the
108	198		Oklahoma Statutes, or any day when the office of the Commissioner
109	199		does not remain open for public business until 4:00 p.m., in whic h
110	200		event the period runs until the end of the next day when the office
111	201		of the Commissioner is open until 4:00 p.m. When the period of time
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112	228		prescribed or allowed is less than seven (7) days, intermediate
113	229		Saturdays, Sundays and legal holidays shall be exclud ed in the
114	230		computation.
115		-
116	231		SECTION 3. AMENDATORY 36 O.S. 2011, Section 307, as
117	232		amended by Section 1, Chapter 362, O.S.L. 2017 (36 O.S. Supp. 2020,
118	233		Section 307), is amended to read as follows:
119		-
120	234		Section 307. The Insurance Commissioner s hall be charged with
121	235		the duty of administration and enforcement of the provisions of the
122	236		Oklahoma Insurance Code and, of any requirements placed on an
123	237		insurance company pursuant to the Oklahoma Statutes and determining
124	238		the duties assigned to the Patient’s Right to Pharmacy Choice
125	239		Commission. The Commissioner shall have jurisdiction over
126	240		complaints against all persons engaged in the business of insurance,
127	241		and shall hear all matters either in person, by authorized
128	242		disinterested employees , or by hearing examiners appointed by the
129	243		Commissioner for that purpose and not specifically addressed
130	244		otherwise in this act . It shall be the duty of the Commissioner to
131	245		file and safely keep all books and papers required by law to be
132	246		filed with the Insurance Department, and to keep and preserve in
133	247		permanent form a full record of proceedings , including a concise
134		-	statement of the conditions of such insurers and ~~ot her~~ entities ~~ENR. H. B. NO. 2123 Page 4~~
	248	+	statement of the conditions of such insurers and other entities
135	249		reported and examined by the Department and its examiners. The
136	250		Commissioner shall, annually, at the ea rliest practicable date after
137	251		returns are received from the several authorized insurers and other
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138	278		organizations, make a report to the Governor of the State of
139	279		Oklahoma of the affairs of the Office office of the Commissioner,
140	280		which report shall contain a ta bular statement and synopsis of the
141	281		several statements, as accepted by the Commissioner, which shall
142	282		include with respect to each insurance company the admitted assets,
143	283		liabilities except capital, capital and surplus, Oklahoma premium
144	284		income, amount of cla ims paid in Oklahoma , and such other matters as
145	285		may be of benefit to the public. The Commissioner shall, on a
146	286		quarterly basis, report to the Pharmacy Choice Commission an
147		-	accounting of matters relating to pharmacy benefit s managers
	287	+	accounting of matters relating to pharmacy benefit managers
148	288		including, but not limit ed to, the number and types of complaints:
149		-
150	289		1. Received;
151		-
152	290		2. Resolved by hearing;
153		-
154	291		3. Resolved by settlement;
155		-
156	292		4. Determined not to be violations; and
157		-
158	293		5. That are outstanding.
159		-
160	294		The Commissioner may educate consumers and make recommendations
161	295		regarding the subject of insurance in this state, and shall set
162	296		forth in a statement the various sums received and disbursed by the
163	297		Department, from and to whom and for what purpose. Such report
164	298		shall be published by and subject to the order of the Commissioner.
165	299		The Commissioner shall, upon retiring from office, deliver to the
166	300		qualified successor all furniture, records, papers and property of
167	301		the office.
168	302
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169	328		SECTION 4. AMENDATORY 36 O.S. 2011, Section 312A, as
170	329		amended by Section 2, Chapter 298, O.S .L. 2015 (36 O.S. Supp. 2020,
171	330		Section 312A), is amended to read as follows:
172		-
173	331		Section 312A. Civil penalties and fees imposed by the Insurance
174	332		Commissioner or the Patient’s Right to Pharmacy Choice Commission
175	333		pursuant to Oklahoma law may be enforced in the s ame manner in which
176	334		civil judgments may be enforced. All final orders of the Insurance
177	335		Commissioner or Pharmacy Choice Commission imposing administrative
178	336		charges, fees, civil penalties , restitution or fines may be recorded
179		-	in the office of the Clerk of ~~the~~ District Court of Oklahoma County ~~ENR. H. B. NO. 2123 Page 5~~
	337	+	in the office of the Clerk of th e District Court of Oklahoma County
180	338		and, upon such recording, all appropriate writs and process shall
181	339		issue and shall be enforced by the judges of said court upon
182	340		application.
183		-
184	341		SECTION 5. AMENDATORY 36 O.S. 2011, Section 313, is
185	342		amended to read as follows:
186		-
187	343		Section 313. A. Orders and notices of the Insurance
188	344		Commissioner or Patient’s Right to Pharmacy Choice Commission shall
189	345		be in writing and shall be signed by either the Commissioner, an
190	346		authorized employee of the Insurance Depart ment, or an independent
191	347		hearing examiner or the Pharmacy Choice Commission . A final order
192	348		signed by an independent hearing examiner, or the Chair or Vice -
193	349		Chair of the Pharmacy Choice Commission, after hearing, shall be
194	350		final agency action, notwithstanding the provisions of Section 311
195	351		of Title 75 of the Oklahoma Statutes.
196	352
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197	378		B. In the exercise of the powers and the performance of the
198	379		duties enumerated in this title, the Commissioner and the Pharmacy
199	380		Choice Commission shall comply with the procedures of the
200	381		Administrative Procedures Act. Any conflict between the provisions
201	382		of Title 75 of the Oklahoma Statutes and of this title shall be
202	383		resolved in favor of the provisions of this title.
203		-
204	384		SECTION 6. AMENDATORY 36 O.S. 2011, Section 319, is
205	385		amended to read as follows:
206		-
207	386		Section 319. A. In conducting any hearing pursuant to the
208	387		Insurance Code, the Insurance Commissioner may appoint an
209	388		independent hearing examiner who shall sit as a quasi -judicial
210	389		officer. The ordinary fees and costs of su ch hearing examiner shall
211	390		be assessed by the hearing examiner against the respondent, unless
212	391		the respondent is the prevailing party. Within thirty (30) days
213	392		after termination of the hearing or of any rehearing thereof or
214	393		reargument thereon, unless such ti me is extended by stipulation, a
215	394		final order shall be issued.
216		-
217	395		B. 1. The Patient’s Right to Pharmacy Choice Commission
218	396		established pursuant to Section 10 of this act shall conduct any
219	397		hearing pursuant to the Patient’s Right to Pharmacy Choice Act or
220	398		relating to the oversight of pharmacy benefits managers pursuant to
221	399		the Pharmacy Audit Integrity Act and Sections 357 through 360 of
222	400		Title 59 of the Oklahoma Statutes. Within thirty (30) days after
223		-	termination of a hearing or of any rehearing thereof or reargument ENR. H. B. NO. 2123 Page 6
	401	+	termination of a hearing or of any rehearing thereof or reargu ment
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224	428		thereon, unless such time is extended by stipulation, a final order
225	429		shall be issued.
226		-
227	430		2. The Pharmacy Choice Commission members shall not be entitled
228	431		to receive any compensation related to conducting a hearing pursuant
229	432		to this section including per di em or mileage for any travel or
230	433		expenses related to appointment on the Commission.
231		-
232	434		SECTION 7. AMENDATORY 36 O.S. 2011, Section 332, is
233	435		amended to read as follows:
234		-
235	436		Section 332. A. The powers and duties of the Patient’s Right
236	437		to Pharmacy Choice Commission shall be created by the Insurance
237	438		Commissioner and set forth in the applicable provisions of the
238	439		Insurance Code.
239		-
240	440		B. The Commissioner may conduct such examinations and
241	441		investigations of insurance matters, within the scope of the
242	442		authority of the Commissioner, as the Commissioner may deem proper
243	443		to secure information useful in the lawful administration of the
244	444		applicable provisions of the Oklahoma Insurance Code.
245		-
246	445		B. C. The Insurance Commissioner shall have the authority to
247	446		employ actuaries, statisticians, accountants, attorneys, auditors,
248	447		investigators or any other technicians as the Insurance Commissioner
249	448		may deem necessary or beneficial to examine any filings for rate
250	449		revisions made by insurers or advisory organizations and to exam ine
251	450		such records of the insurers or advisory organizations as may be
252	451		deemed appropriate in conjunction with the filing for a rate
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253	478		revision in order to determine that the rates or other filings are
254	479		consistent with the terms, conditions, requirements and pur poses of
255	480		the Insurance Code, and to verify, validate and investigate the
256	481		information upon which the insurer or advisory organization relies
257	482		to support such filing.
258		-
259	483		1. The Commissioner shall maintain a list of technicians
260	484		qualified pursuant to rules adopte d by the Commissioner who are
261	485		proficient in the lines of insurance being reviewed. Upon request
262	486		of the Commissioner, the Commissioner shall employ the next
263	487		available technician in rotation on the list, proficient in the line
264	488		or lines of insurance being re viewed. The Commissioner may deviate
265	489		from the list when employing technicians for loss cost filings
266	490		pursuant to Section 901.5 of this title.
267		-	ENR. H. B. NO. 2123 Page 7
268	491		2. All reasonable expenses incurred in such filing review shall
269	492		be paid by the insurer or advisory organization m aking the filing.
270		-
271	493		C. D. The Commissioner shall employ examiners to ensure that
272	494		the rates which have been approved by or filed with the Commissioner
273	495		are the rates which are being used by the insurer or by the insurers
274	496		whose advisory organization has had a rate approval or rate filing.
275		-
276		-	1. Any insurer or pharmacy benefits manager examined pursuant
277		-	to the provisions of th is section shall pay all reasonable charges
	497	+	1. Any insurer or pharmacy benefit manager examined pursuant to
	498	+	the provisions of this section shall pay all reasonable charges
278	499		incurred in such examination , including the actual expense of the
279	500		Commissioner or, the Pharmacy Choice Commission and the expenses and
280	501		compensation of the authorized representative of the Commissioner
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281	528		and the expense and compensation of assistants and examiners
282	529		employed therein.
283		-
284	530		2. All expenses incurred in such examination shall be verified
285	531		by affidavit and a copy shall be filed and kept in the office of the
286	532		Insurance Commissioner.
287		-
288	533		SECTION 8. AMENDATORY 36 O.S. 2011, Section 907, is
289	534		amended to read as follows:
290		-
291	535		Section 907. In addition to any powers hereinbefore expressly
292	536		enumerated in this law, the Insurance Commissioner shall have full
293	537		power and authority to enforce by regulations, orders , or otherwise
294	538		all and singular, the provisions of this law, and the full intent
295	539		thereof. In particular it the Commissioner shall have the authority
296	540		and power:
297		-
298		-	1. To examine all records of insurers , pharmacy benefits
	541	+	1. To examine all records of insurers , pharmacy benefit
299	542		managers and advisory organizations and to require any insurer,
300	543		agent, broker and advisory organization to furnish under oath such
301	544		information as it may deem necessary for the a dministration of this
302	545		law. The expense of such examination shall be paid by the insurer
303	546		or advisory organization examined. In lieu of such examination, the
304	547		Commissioner may, in the discretion of the Commissioner, accept a
305	548		report of examination made by an y other insurance supervisory
306	549		authority;
307		-
308	550		2. To make and enforce such reasonable orders, rules , and
309	551		regulations as may be necessary in making this law effective, but
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310	578		such orders, rules and regulations shall not be contrary to or
311	579		inconsistent with the provi sions of this law; and
312		-	ENR. H. B. NO. 2123 Page 8
313	580		3. To issue an order, after a full hearing to all parties in
314	581		interest requiring any insurer, group, association , or organization
315	582		of insurers and the members and subscribers thereof to cease and
316	583		desist from any unfair or unreasonable practice.
317		-
318	584		SECTION 9. AMENDATORY Section 8, Chapter 426, O.S.L.
319	585		2019 (36 O.S. Supp. 2020, Section 6965), is amended to read as
320	586		follows:
321		-
322	587		Section 6965. A. The Insurance Commissioner shall have power
323	588		and authority to examine and investigate into the affairs of every
324	589		pharmacy benefits manager (PBM) engaged in pharmacy benefits
325	590		management in this state in order to determine whether such entity
326	591		is in compliance with the Patient’s Right to Pharmacy Choice Act.
327		-
328	592		B. All PBM files and reco rds shall be subject to examination by
329	593		the Insurance Commissioner or by duly appointed designees. The
330	594		Insurance Commissioner, authorized employees and examiners shall
331	595		have access to any of a PBM’s files and records that may relate to a
332	596		particular complaint under investigation or to an inquiry or
333	597		examination by the Insurance Department.
334		-
335	598		C. Every officer, director, employee or agent of the PBM, upon
336	599		receipt of any inquiry from the Commissioner shall, within thirty
337	600		(30) twenty (20) days from the date the inq uiry is sent, furnish the
338	601		Commissioner with an adequate response to the inquiry.
	602	+
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339	627
340	628		D. When making an examination under this section, the Insurance
341	629		Commissioner may retain subject matter experts, attorneys,
342	630		appraisers, independent actuaries, independent cert ified public
343	631		accountants or an accounting firm or individual holding a permit to
344	632		practice public accounting, certified financial examiners or other
345	633		professionals and specialists as examiners, the cost of which shall
346	634		be borne by the PBM which that is the subject of the examination.
347		-
348	635		SECTION 10. AMENDATORY Section 9, Chapter 426, O.S.L.
349	636		2019 (36 O.S. Supp. 2020, Section 6966), is amended to read as
350	637		follows:
351		-
352	638		Section 6966. A. There is hereby created the Patient’s Right
353	639		to Pharmacy Choice Commission.
354		-
355	640		B. The Insurance Commissioner shall provide for the receiving
356	641		and processing of individual complaints alleging violations of the
357		-	provisions of the Patient’s Right to Pharmacy Choice Act , the ~~ENR. H. B. NO. 2123 Page 9~~
	642	+	provisions of the Patient’s Right to Pharmacy Choice Act , the
358	643		Pharmacy Audit Integrity Act and Sections 357 thr ough 360 of Title
359	644		59 of the Oklahoma Statutes .
360		-
361	645		B. C. The Commissioner shall establish a Patient’s Right to
362	646		Pharmacy Choice Advisory Committee to have the power and authority
363	647		to review complaints, hold hearings, subpoena witnesses and records,
364	648		initiate prosecution, reprimand, require restitution, approve and
365	649		sign settlement agreements, place on probation, suspend, revoke
366	650		and/or levy fines not to exceed Ten Thousand Dollars ($10,000.00)
367	651		for each count for which any pharmacy benefits manager (PBM) has
	652	+
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368	678		violated a provision of this act the Patient’s Right to Pharmacy
369	679		Choice Act, the Pharmacy Integrity Audit Act and Sections 357
370	680		through 360 of Title 59 of the Oklahoma Statutes . The Advisory
371	681		Committee Any violation that cannot be settled shall go to a hearing
372	682		before the Pharmacy Choice Commission.
373		-
374	683		The Pharmacy Choice Commission shall hold hearings and may
375	684		reprimand, require restitution, place on probation, suspend, revoke
376	685		or levy fines not to exceed Ten Thousand Dollars ($10,000.00) for
377	686		each count that a PBM has v iolated a provision of the Patient’s
378	687		Right to Pharmacy Choice Act, the Pharmacy Integrity Audit Act or
379	688		Sections 357 through 360 of Title 59 of the Oklahoma Statutes. The
380	689		Insurance Commissioner or the Pharmacy Choice Commission may impose
381	690		as part of any disciplinary action restitution to the provider or
382	691		patient and the payment of costs expended by the Pharmacy Choice
383	692		Commission or Insurance Department for any legal fees and costs
384	693		including, but not limited to, staff time, salary and travel
385	694		expense, witness fees and attorney fees. The Advisory Committee
386	695		Insurance Commissioner or the Pharmacy Choice Commission may take
387	696		such actions singly review violations singularly or in combination,
388	697		as the nature of the violation requires.
389		-
390	698		C. D. The Advisory Committee Pharmacy Choice Commission shall
391	699		consist of seven (7) persons who shall serve as hearing examiners
392	700		and shall be appointed as follows:
	701	+
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393	726
394	727		1. Two persons who are members in good standing of the Oklahoma
395	728		Pharmacists Association, who shall be nominated appointed by the
396	729		Oklahoma Pharmacists Association Board of Pharmacy; a list of
397	730		eligible appointees shall be sent annually to the Oklahoma Board of
398	731		Pharmacy by the Oklahoma Pharmacists Association ;
399		-
400	732		2. Two consumer members not employed by or professionally
401	733		related to the insurance, pharmacy or PBM nominated industry
402		-	appointed by the Office of the Governor; ENR. H. B. NO. 2123 Page 10
403		-
	734	+	appointed by the Office of the Governor;
404	735		3. Two persons representing the PBM or insurance industry
405	736		nominated appointed by the Insurance Commissioner; and
406		-
407	737		4. One person representing the Office of the Attorn ey General
408	738		nominated appointed by the Attorney General.
409		-
410	739		D. Committee E. Pharmacy Choice Commission members shall be
411	740		first appointed for terms of five (5) years shall serve the initial
412	741		term staggered as follows: the two members appointed by the Office
413	742		of the Governor shall serve for one (1) year, the two members
414	743		appointed by the Insurance Commissioner shall serve for two (2)
415	744		years, the two members appointed by the Oklahoma Pharmacists
416	745		Association shall serve for two (2) years and the one member
417	746		appointed by the Attorney General shall serve for three (3) years.
418	747		Subsequent terms shall be for five (5) years . The terms of the
419	748		members of the Advisory Committee shall expire on the thirtieth day
420	749		of June of the year designated for the expiration of the term for
421	750		which appointed, but the member shall serve until a qualified
	751	+
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422	777		successor has been duly appointed. No Except for the initial term
423	778		to establish the Pharmacy Choice Commission, no person shall be
424	779		appointed to serve more than two consecutive terms. The Commission
425	780		shall annually elect a chair and vice -chair from among its members.
426	781		There shall be no limit on the number of times a member may serve as
427	782		chair or vice-chair. A quorum shall consist of no less than five
428		-	members and shall be required for the ~~Commission~~ to hold a ~~hearing.~~
429		-
	783	+	(5) members and shall be required for the Commis sion to hold a
	784	+	hearing.
430	785		E. F. Hearings shall be held in the Insurance Commissioner’s
431	786		offices or at such other place as the Insurance Commissioner may
432	787		deem convenient.
433		-
434	788		F. G. The Insurance Commissioner shall issue and serve upon the
435	789		PBM a statement of the charges and a notice of hearing in accordance
436	790		with the Administrative Procedures Act, Sections 250 through 323 of
437	791		Title 75 of the Oklahoma Statutes. A hearing shall be set within
438	792		thirty (30) days and notice of that hearing date shall be provided
439	793		to the complainant within a reasonable time period.
440		-
441	794		G. H. At the time and place fixed for a hearing, the PBM shall
442	795		have an opportunity to be heard and to show cause why the Insurance
443	796		Commissioner or his or her duly appointed hearing examiner Pharmacy
444	797		Choice Commission should not revoke or suspend the PBM’s license and
445	798		levy administrative fines for each violation. Upon good cause
446	799		shown, the Commissioner Commission shall permit any person any
447		-	complainant or a duly authorized representative of the complainant ENR. H. B. NO. 2123 Page 11
	800	+	complainant or a duly authorized representative of the complainant
	801	+
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448	827		to intervene, appear and be heard at the hearing by counsel or in
449	828		person.
450		-
451	829		H. I. All hearings will be public and held in accordance with,
452	830		and governed by, Sections 250 through 323 of Title 75 of the
453	831		Oklahoma Statutes.
454		-
455	832		I. J. The Insurance Commissioner, upon writt en request
456	833		reasonably made by the complainant or the licensed PBM affected by
457		-	the hearing and at such PBM’s expense of the requesting party , shall
	834	+	the hearing and at such PBM’s expense of the requesting party shall
458	835		cause a full stenographic record of the proceedings to be made by a
459	836		competent court reporter.
460		-
461	837		J. K. If the Insurance Commissioner or Pharmacy Choice
462	838		Commission determines, based on an investigation of complaints, that
463	839		a PBM has engaged in violations of this act the Patient’s Right to
464	840		Pharmacy Choice Act, the Pharmacy Integrity Act or Sections 357
465	841		through 360 of Title 59 of the Oklahoma Statutes with such frequency
466	842		as to indicate a general business practice and that such PBM should
467	843		be subjected to closer supervision with respect to such practices,
468	844		the Insurance Commissioner or the Pharmacy Choice Commission may
469	845		require the PBM to file a report at such periodic intervals as the
470	846		Insurance Commissioner or the Pharmacy Choice Commission deems
471	847		necessary.
472		-
473	848		SECTION 11. AMENDATORY Section 10, Chapter 426, O.S.L.
474	849		2019 (36 O.S. Supp. 2020, Section 6967 ), is amended to read as
475	850		follows:
476	851
	852	+	ENGR. S. A. TO ENGR. H. B. NO. 2123 Page 17 1
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	876	+
477	877		Section 6967. A. Documents, evidence, materials, records,
478	878		reports, complaints or other information in the possession or
479	879		control of the Insurance Department or the Right to Pharmacy Choice
480		-	Commission that are obtained by , created by or disclosed to the
	880	+	Commission, that are obtained by , created by or disclosed to the
481	881		Insurance Commissioner , Pharmacy Choice Commission or any other
482	882		person in the course of an evaluation, examination, investigation or
483	883		review made pursuant to the provisions of the Patient’s Right to
484	884		Pharmacy Choice Act, the Pharmacy Integrity Audit Act or Sections
485	885		357 through 360 of Title 59 of the Oklahoma Statutes shall be
486	886		confidential by law and privileged, shall not be subject to open
487	887		records request, shall not be subject to subpoena , and shall not be
488	888		subject to discovery or admissible in evidence in any private civil
489	889		action if obtained from the Insurance Commissioner , the Pharmacy
490	890		Choice Commission or any employees or representatives of the
491	891		Insurance Commissioner.
492		-	ENR. H. B. NO. 2123 Page 12
493	892		B. Nothing in this section shall prevent the disclosure o f a
494	893		final order issued against a pharmacy benefits manager by the
495	894		Insurance Commissioner or his or her duly appointed hearing examiner
496	895		Pharmacy Choice Commission . Such orders shall be open records.
497		-
498	896		C. In the course of any hearing made pursuant to the pro visions
499	897		of the Patient’s Right to Pharmacy Choice Act, the Pharmacy
500	898		Integrity Audit Act or Sections 357 through 360 of Title 59 of the
501	899		Oklahoma Statutes, nothing in this section shall be construed to
502	900		prevent the Insurance Commissioner or any employees or
	901	+
	902	+	ENGR. S. A. TO ENGR. H. B. NO. 2123 Page 18 1
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503	927		representatives of the Insurance Commissioner from presenting
504	928		admissible documents, evidence, materials, records, reports or
505	929		complaints to the adjudicating authority.
506		-
507	930		SECTION 12. It being immediately necessary for the preservation
508	931		of the public peace, health or safety, an emergency is hereby
509	932		declared to exist, by reason whereof this act shall take effect and
510		-	be in full force from and after its passage and approval. ENR. H. B. NO. 2123 Page 13
511		-	Passed the House of Representatives the 5th day of May, 2021.
	933	+	be in full force from and after its passage and approval. ”
	934	+
	935	+	Passed the Senate the 22nd day of April, 2021.
	936	+
	937	+
	938	+
	939	+	Presiding Officer of the Senate
	940	+
	941	+
	942	+	Passed the House of Representatives the ____ day of __________,
	943	+	2021.
	944	+
	945	+
	946	+
	947	+	Presiding Officer of the House
	948	+	of Representatives
	949	+
	950	+	ENGR. H. B. NO. 2123 Page 1 1
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	974	+
	975	+	ENGROSSED HOUSE
	976	+	BILL NO. 2123 By: McEntire, Townley, Frix,
	977	+	Grego, Newton, Moore, Pae,
	978	+	Boles, Johns, Phillips,
	979	+	Lawson, Burns, Hilbert,
	980	+	Sterling, Roe and Caldwell
	981	+	(Chad) of the House
	982	+
	983	+	and
	984	+
	985	+	McCortney, Stephens, Hicks
	986	+	and Taylor of the Senate
	987	+
	988	+
	989	+
	990	+
	991	+
	992	+
	993	+	An Act relating to insurance; defining term; amending
	994	+	36 O.S. 2011, Section 121, which relates to
	995	+	computation of time; inclu ding the Pharmacy Choice
	996	+	Commission; amending 36 O.S. 2011, Section 301, which
	997	+	relates to the Insurance Department; including the
	998	+	Pharmacy Choice Commission; providing for the powers
	999	+	and duties of the Commission; amending 36 O.S. 2011,
	1000	+	Section 307, as amen ded by Section 1, Chapter 362,
	1001	+	O.S.L. 2017 (36 O.S. Supp. 2020, Section 307), which
	1002	+	relates to the duties of the Insurance Commissioner;
	1003	+	creating exceptions; amending 36 O.S. 2011, Section
	1004	+	312A, as amended by Section 2, Chapter 298, O.S.L.
	1005	+	2015 (36 O.S. Supp. 2020, Section 312A), which
	1006	+	relates to enforcement and recording of penalties and
	1007	+	fees; providing for enforcement of certain actions by
	1008	+	the Pharmacy Choice Commission; amending 36 O.S.
	1009	+	2011, Section 313, which relates to orders and
	1010	+	notices; requiring th e Pharmacy Choice Commission to
	1011	+	comply with certain requirements; amending 36 O.S.
	1012	+	2011, Section 332, which relates to general duties
	1013	+	and powers; vesting the Pharmacy Choice Commission
	1014	+	with certain duties and authorities; authorizing the
	1015	+	Insurance Commissioner to employ certain persons;
	1016	+	providing for certain expenses to be charged to
	1017	+	certain entities; requiring filing and keeping of a
	1018	+	certain affidavit; amending 36 O.S. 2011, Section
	1019	+	907, which relates to the general powers of the
	1020	+	Insurance Commissioner; pr oviding exception; amending
	1021	+	Section 8, Chapter 426, O.S.L. 2019 (36 O.S. Supp.
	1022	+
	1023	+	ENGR. H. B. NO. 2123 Page 2 1
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	1047	+
	1048	+	2020, Section 6965), which relates to the power to
	1049	+	investigate; vesting certain authority in the
	1050	+	Pharmacy Choice Commission; modifying time for
	1051	+	certain response; amending Sectio n 9, Chapter 426,
	1052	+	O.S.L. 2019 (36 O.S. Supp. 2020, Section 6966), which
	1053	+	relates to complaints of certain violations; creating
	1054	+	the Patient's Right to Pharmacy Choice Commission;
	1055	+	providing for restitution; modifying terms; modifying
	1056	+	appointments of initial m embers; providing for
	1057	+	election of chair and vice -chair; allowing certain
	1058	+	parties to intervene in certain hearings;
	1059	+	transferring certain duties from the Insurance
	1060	+	Commissioner to the Pharmacy Choice Commission;
	1061	+	amending Section 10, Chapter 426, O.S.L. 2019 (36
	1062	+	O.S. Supp. 2020, Section 6967), which relates to
	1063	+	confidentiality and privileged information; including
	1064	+	the Pharmacy Choice Commission; providing for
	1065	+	codification; and declaring an emergency.
	1066	+
	1067	+
	1068	+
	1069	+
	1070	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	1071	+	SECTION 13. NEW LAW A new section of law to be codified
	1072	+	in the Oklahoma Statutes as Section 107.3 of Title 36, unless there
	1073	+	is created a duplication in numbering, reads as follows:
	1074	+	When used with reference to the administration of the O klahoma
	1075	+	Insurance Code, "Pharmacy Choice Commission", "Pharmacy Commission"
	1076	+	or "Commission" means the Patient's Right to Pharmacy Choice
	1077	+	Commission established by Section 6966 of Title 36 of the Oklahoma
	1078	+	Statutes.
	1079	+	SECTION 14. AMENDATORY 36 O.S. 2011, Section 121, is
	1080	+	amended to read as follows:
	1081	+	Section 121. In computing any period of time prescribed or
	1082	+	allowed by this title, by the rules of the Insurance Commissioner or
	1083	+
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	1108	+
	1109	+	the Pharmacy Choice Commission , or by any applicable statute, t he
	1110	+	day of the act, event, or default from which the designated period
	1111	+	of time begins to run shall not be included. The last day of the
	1112	+	period so computed shall be included, unless it is a Saturday, a
	1113	+	Sunday, a legal holiday as defined by the Oklahoma Stat utes, or any
	1114	+	day when the office of the Commissioner does not remain open for
	1115	+	public business until 4:00 p.m., in which event the period runs
	1116	+	until the end of the next day when the office of the Commissioner is
	1117	+	open until 4:00 p.m. When the period of time prescribed or allowed
	1118	+	is less than seven (7) days, intermediate Saturdays, Sundays and
	1119	+	legal holidays shall be excluded in the computation.
	1120	+	SECTION 15. AMENDATORY 36 O.S. 2011, Section 301, is
	1121	+	amended to read as follows:
	1122	+	Section 301. The Insurance Department of the State of Oklahoma
	1123	+	is hereby created. The Department shall consist of the Insurance
	1124	+	Commissioner and the Pharmacy Choice Commission. The Insurance
	1125	+	Commissioner shall be the chief executive officer of the Insurance
	1126	+	Department. The powers and duties of the Insurance Commissioner
	1127	+	shall be those created by the Oklahoma Insurance Code and not
	1128	+	reserved to the Commission, as well as such powers and duties as the
	1129	+	Commission may request the Commissioner to perform. The powers and
	1130	+	duties of the Pharmacy Choice Commission shall be those created by
	1131	+	the applicable provisions of the Code . The Insurance Department
	1132	+	shall be situated in one area in the State Capitol or some other
	1133	+
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	1159	+	location conveniently accessible to the general public subject to
	1160	+	the provisions of Sections 63 and 94 of Title 74 of the Oklahoma
	1161	+	Statutes and Section 580:20 -13-5 of the Oklahoma Administrative
	1162	+	Code.
	1163	+	SECTION 16. AMENDATORY 36 O.S. 2011, Section 307, as
	1164	+	amended by Section 1, Chapter 362, O.S.L. 2017 (36 O.S. Supp. 2020,
	1165	+	Section 307), is amended to read as follows:
	1166	+	Section 307. The Insurance Commissioner shall be charged with
	1167	+	the duty of administration and enforcement of the provisions of the
	1168	+	Oklahoma Insurance Code and of any require ments placed on an
	1169	+	insurance company pursuant to the Oklahoma Statutes , except those
	1170	+	duties specifically assigned to the Pharmacy Choice Commission. The
	1171	+	Insurance Commissioner shall provide such administrative and staff
	1172	+	support as required by the Commissi on. The Commissioner shall have
	1173	+	jurisdiction over complaints against all persons engaged in the
	1174	+	business of insurance, other than complaints assigned to the
	1175	+	Pharmacy Choice Commission, and shall hear all matters either in
	1176	+	person, by authorized disinterest ed employees, or by hearing
	1177	+	examiners appointed by the Commissioner for that purpose. It shall
	1178	+	be the duty of the Commissioner to file and safely keep all books
	1179	+	and papers required by law to be filed with the Insurance
	1180	+	Department, and to keep and preserve in permanent form a full record
	1181	+	of proceedings, including a concise statement of the conditions of
	1182	+	such insurers and other entities reported and examined by the
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	1209	+	Department and its examiners. The Commissioner shall, annually, at
	1210	+	the earliest practicable d ate after returns are received from the
	1211	+	several authorized insurers and other organizations, make a report
	1212	+	to the Governor of the State of Oklahoma of the affairs of the
	1213	+	Office office of the Commissioner, which report shall contain a
	1214	+	tabular statement and synopsis of the several statements, as
	1215	+	accepted by the Commissioner, which shall include with respect to
	1216	+	each insurance company the admitted assets, liabilities except
	1217	+	capital, capital and surplus, Oklahoma premium income, amount of
	1218	+	claims paid in Oklahoma , and such other matters as may be of benefit
	1219	+	to the public. The Commissioner may educate consumers and make
	1220	+	recommendations regarding the subject of insurance in this state,
	1221	+	and shall set forth in a statement the various sums received and
	1222	+	disbursed by the Department, from and to whom and for what purpose.
	1223	+	Such report shall be published by and subject to the order of the
	1224	+	Commissioner. The Commissioner shall, upon retiring from office,
	1225	+	deliver to the qualified successor all furniture, records, papers
	1226	+	and property of the office.
	1227	+	SECTION 17. AMENDATORY 36 O.S. 2011, Section 312A, as
	1228	+	amended by Section 2, Chapter 298, O.S.L. 2015 (36 O.S. Supp. 2020,
	1229	+	Section 312A), is amended to read as follows:
	1230	+	Section 312A. Civil penalties and fee s imposed by the Insurance
	1231	+	Commissioner or Pharmacy Choice Commission pursuant to Oklahoma law
	1232	+	may be enforced in the same manner in which civil judgments may be
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	1259	+	enforced. All final orders of the Insurance Commissioner or
	1260	+	Pharmacy Choice Commission imposing administrative charges, fees,
	1261	+	civil penalties, restitution or fines may be recorded in the office
	1262	+	of the Clerk of the District Court of Oklahoma County and, upon such
	1263	+	recording, all appropriate writs and process shall issue and shall
	1264	+	be enforced by the judges of said court upon application.
	1265	+	SECTION 18. AMENDATORY 36 O.S. 2011, Section 313, is
	1266	+	amended to read as follows:
	1267	+	Section 313. A. Orders and notices of the Insurance
	1268	+	Commissioner or Pharmacy Choice Commission shall be in writing and
	1269	+	shall be signed by either the Commissioner, an authorized employee
	1270	+	of the Insurance Department, or an independent hearing examiner. A
	1271	+	final order signed by an independent hearing examiner, after
	1272	+	hearing, shall be final agency action, notwithsta nding the
	1273	+	provisions of Section 311 of Title 75 of the Oklahoma Statutes.
	1274	+	B. In the exercise of the powers and the performance of the
	1275	+	duties enumerated in this title, the Commissioner and the Pharmacy
	1276	+	Choice Commission shall comply with the procedures of the
	1277	+	Administrative Procedures Act. Any conflict between the provisions
	1278	+	of Title 75 of the Oklahoma Statutes and of this title shall be
	1279	+	resolved in favor of the provisions of this title.
	1280	+	SECTION 19. AMENDATORY 36 O.S. 2011, Sectio n 332, is
	1281	+	amended to read as follows:
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	1308	+	Section 332. A. The Pharmacy Choice Commission is hereby
	1309	+	vested with the duty and authority of enforcing and administering
	1310	+	all applicable provisions of the Oklahoma Insurance Code pertaining
	1311	+	to the jurisdiction of th e Commission, as well as the provisions of
	1312	+	Sections 356 through 360 of Title 59 of the Oklahoma Statutes.
	1313	+	B. The Commission shall have powers and authority expressly
	1314	+	conferred upon it and reasonably implied by the provisions of this
	1315	+	Code and by the provis ions of Sections 356 through 360 of Title 59
	1316	+	of the Oklahoma Statutes. The Commission shall have the power to
	1317	+	approve, disapprove, or approve with modifications any filings
	1318	+	submitted to it.
	1319	+	C. The Commission may conduct such examinations and
	1320	+	investigations of insurance matters, within the scope of its
	1321	+	authority, as it may deem proper to secure information useful in the
	1322	+	lawful administration of the applicable provisions of this Code and
	1323	+	Sections 356 through 360 of Title 59 of the Oklahoma Statutes.
	1324	+	D. The Insurance Commissioner, on behalf of the Pharmacy Choice
	1325	+	Commission, shall have the authority to employ actuaries,
	1326	+	statisticians, accountants, attorneys, auditors, investigators or
	1327	+	any other technicians, as the Commission may deem necessary or
	1328	+	beneficial, to examine, audit, review, validate, investigate or
	1329	+	secure information useful in the lawful administration of the
	1330	+	applicable provisions of this Code and Sections 356 through 360 of
	1331	+	Title 59 of the Oklahoma Statutes.
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	1358	+	1. Any entity examined by the Commissi on pursuant to this
	1359	+	section shall pay all reasonable charges incurred in such
	1360	+	examination, including the actual expense of the Commission or the
	1361	+	expenses and compensation of the authorized representative of the
	1362	+	Commission.
	1363	+	2. All expenses incurred in such examination shall be verified
	1364	+	by affidavit and a copy thereof shall be filed and kept at the
	1365	+	office of the Insurance Commissioner.
	1366	+	E. The Commissioner may conduct such examinations and
	1367	+	investigations of insurance matters, within the scope of the
	1368	+	authority of the Commissioner, as the Commissioner may deem proper
	1369	+	to secure information useful in the lawful administration of the
	1370	+	applicable provisions of the Oklahoma Insurance Code.
	1371	+	B. F. The Insurance Commissioner shall have the authority to
	1372	+	employ actuaries, statisticians, accountants, attorneys, auditors,
	1373	+	investigators or any other technicians as the Insurance Commissioner
	1374	+	may deem necessary or beneficial to examine any filings for rate
	1375	+	revisions made by insurers or advisory organizations and to examine
	1376	+	such records of the insurers or advisory organizations as may be
	1377	+	deemed appropriate in conjunction with the filing for a rate
	1378	+	revision in order to determine that the rates or other filings are
	1379	+	consistent with the terms, conditions, requirements and purposes o f
	1380	+	the Insurance Code, and to verify, validate and investigate the
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	1407	+	information upon which the insurer or advisory organization relies
	1408	+	to support such filing.
	1409	+	1. The Commissioner shall maintain a list of technicians
	1410	+	qualified pursuant to rules adopted by th e Commissioner who are
	1411	+	proficient in the lines of insurance being reviewed. Upon request
	1412	+	of the Commissioner, the Commissioner shall employ the next
	1413	+	available technician in rotation on the list, proficient in the line
	1414	+	or lines of insurance being reviewed. The Commissioner may deviate
	1415	+	from the list when employing technicians for loss cost filings
	1416	+	pursuant to Section 901.5 of this title.
	1417	+	2. All reasonable expenses incurred in such filing review shall
	1418	+	be paid by the insurer or advisory organization making t he filing.
	1419	+	C. G. The Commissioner shall employ examiners to ensure that
	1420	+	the rates which have been approved by or filed with the Commissioner
	1421	+	are the rates which are being used by the insurer or by the insurers
	1422	+	whose advisory organization has had a rate ap proval or rate filing.
	1423	+	1. Any insurer examined pursuant to the provisions of this
	1424	+	section shall pay all reasonable charges incurred in such
	1425	+	examination, including the actual expense of the Commissioner or the
	1426	+	expenses and compensation of the authorized re presentative of the
	1427	+	Commissioner and the expense and compensation of assistants and
	1428	+	examiners employed therein.
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	1455	+	2. All expenses incurred in such examination shall be verified
	1456	+	by affidavit and a copy shall be filed and kept in the office of the
	1457	+	Insurance Commissioner.
	1458	+	SECTION 20. AMENDATORY 36 O.S. 2011, Section 907, is
	1459	+	amended to read as follows:
	1460	+	Section 907. In addition to any powers hereinbefore expressly
	1461	+	enumerated in this law, the Commissioner shall have full power and
	1462	+	authority to enforce by regulations, orders, or otherwise all and
	1463	+	singular, the provisions of this law, and the full intent thereof ,
	1464	+	except for those provisions reserved to the Pharmacy Choice
	1465	+	Commission by the Oklahoma Insurance Code and Sections 356 through
	1466	+	360 of Title 59 of the Oklahoma Statutes . In particular it the
	1467	+	Commissioner shall have the authority and power:
	1468	+	1. To examine all records of insurers and advisory
	1469	+	organizations and to require any insurer, agent, broker and advisory
	1470	+	organization to furnish u nder oath such information as it may deem
	1471	+	necessary for the administration of this law. The expense of such
	1472	+	examination shall be paid by the insurer or advisory organization
	1473	+	examined. In lieu of such examination, the Commissioner may, in the
	1474	+	discretion of the Commissioner, accept a report of examination made
	1475	+	by any other insurance supervisory authority;
	1476	+	2. To make and enforce such reasonable orders, rules, and
	1477	+	regulations as may be necessary in making this law effective, but
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	1504	+	such orders, rules and regula tions shall not be contrary to or
	1505	+	inconsistent with the provisions of this law; and
	1506	+	3. To issue an order, after a full hearing to all parties in
	1507	+	interest requiring any insurer, group, association, or organization
	1508	+	of insurers and the members and subscriber s thereof to cease and
	1509	+	desist from any unfair or unreasonable practice.
	1510	+	SECTION 21. AMENDATORY Section 8, Chapter 426, O.S.L.
	1511	+	2019 (36 O.S. Supp. 2020, Section 6965), is amended to read as
	1512	+	follows:
	1513	+	Section 6965. A. The Insurance Commissioner Pharmacy Choice
	1514	+	Commission shall have power and authority to examine and investigate
	1515	+	into the affairs of every pharmacy benefits manager (PBM) engaged in
	1516	+	pharmacy benefits management in this state in order to determine
	1517	+	whether such entity is in compliance with the Patient's Right to
	1518	+	Pharmacy Choice Act.
	1519	+	B. All PBM files and records shall be subject to examination by
	1520	+	the Insurance Commissioner or by duly appointed designees Pharmacy
	1521	+	Choice Commission. The Insurance Commissioner Commission,
	1522	+	authorized employees and examiners shall have access to any of a
	1523	+	PBM's files and records that may relate to a particular complaint
	1524	+	under investigation or to an inquiry or examination by the Insurance
	1525	+	Department Commission.
	1526	+	C. Every officer, director, employ ee or agent of the PBM, upon
	1527	+	receipt of any inquiry from the Commissioner Pharmacy Choice
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	1554	+	Commission shall, within thirty (30) fifteen (15) days from the date
	1555	+	the inquiry is sent, furnish the Commissioner Commission with an
	1556	+	adequate response to the inquiry .
	1557	+	D. When making an examination under this section, the Insurance
	1558	+	Commissioner Pharmacy Choice Commission may retain subject matter
	1559	+	experts, attorneys, appraisers, independent actuaries, independent
	1560	+	certified public accountants or an accounting firm or in dividual
	1561	+	holding a permit to practice public accounting, certified financial
	1562	+	examiners or other professionals and specialists as examiners, the
	1563	+	cost of which shall be borne by the PBM which that is the subject of
	1564	+	the examination.
	1565	+	SECTION 22. AMENDATORY Section 9, Chapter 426, O.S.L.
	1566	+	2019 (36 O.S. Supp. 2020, Section 6966), is amended to read as
	1567	+	follows:
	1568	+	Section 6966. A. There is hereby created the Patient's Right
	1569	+	to Pharmacy Choice Commission.
	1570	+	B. The Insurance Commissioner , on behalf of the Pharmacy Choice
	1571	+	Commission, shall provide for the receiving and processing of
	1572	+	individual complaints alleging violations of the provisions of the
	1573	+	Patient's Right to Pharmacy Choice Act and Sections 356 through 360
	1574	+	of Title 59 of the Oklahoma St atutes.
	1575	+	B. C. The Commissioner Pharmacy Choice Commission shall
	1576	+	establish a Patient's Right to Pharmacy Choice Advisory Committee to
	1577	+	review complaints, hold hearings, subpoena witnesses and records,
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	1604	+	initiate prosecution, reprimand, require restitution, place on
	1605	+	probation, suspend, revoke and/or levy fines not to exceed Ten
	1606	+	Thousand Dollars ($10,000.00) for each count for which any pharmacy
	1607	+	benefits manager (PBM) has violated a provision of this act the
	1608	+	Patient's Right to Pharmacy Choice Act or Sections 356 through 360
	1609	+	of Title 59 of the Oklahoma Statutes . The Advisory Committee
	1610	+	Commission may impose as part of any disciplinary action restitution
	1611	+	to the provider or patient and the payment of costs expended by the
	1612	+	Commission or Insurance Department for any l egal fees and costs
	1613	+	including, but not limited to, staff time, salary and travel
	1614	+	expense, witness fees and attorney fees. The Advisory Committee
	1615	+	Commission may take such actions singly or in combination, as the
	1616	+	nature of the violation requires.
	1617	+	C. D. The Advisory Committee Pharmacy Choice Commission shall
	1618	+	consist of seven (7) persons appointed as follows:
	1619	+	1. Two persons who shall be nominated appointed by the Oklahoma
	1620	+	Pharmacists Association;
	1621	+	2. Two consumer members not employed by or professionally
	1622	+	related to the insurance, pharmacy or PBM nominated industry
	1623	+	appointed by the Office of the Governor;
	1624	+	3. Two persons representing the PBM or insurance industry
	1625	+	nominated appointed by the Insurance Commissioner; and
	1626	+	4. One person representing the Office of t he Attorney General
	1627	+	nominated appointed by the Attorney General.
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	1654	+	D. Committee E. Pharmacy Choice Commission members shall be
	1655	+	first appointed for terms of five (5) years shall serve the initial
	1656	+	term staggered as follows: the two members appointed by the O ffice
	1657	+	of the Governor shall serve for one (1) year, the two members
	1658	+	appointed by the Insurance Commissioner shall serve for two (2)
	1659	+	years, the two members appointed by the Oklahoma Pharmacists
	1660	+	Association shall serve for two (2) years, and the one member
	1661	+	appointed by the Attorney General shall serve for three (3) years.
	1662	+	Subsequent terms shall be for five (5) years . The terms of the
	1663	+	members of the Advisory Committee shall expire on the thirtieth day
	1664	+	of June of the year designated for the expiration of the term for
	1665	+	which appointed, but the member shall serve until a qualified
	1666	+	successor has been duly appointed. No person shall be appointed to
	1667	+	serve more than two consecutive terms. The Commission shall
	1668	+	annually elect a chair and vice -chair from among its mem bers. There
	1669	+	shall be no limit on the number of times a member may serve as chair
	1670	+	or vice-chair.
	1671	+	E. F. Hearings shall be held in the Insurance Commissioner's
	1672	+	offices or at such other place as the Insurance Commissioner
	1673	+	Commission may deem convenient.
	1674	+	F. G. The Insurance Commissioner , on behalf of the Pharmacy
	1675	+	Choice Commission, shall issue and serve upon the PBM a statement of
	1676	+	the charges and a notice of hearing in accordance with the
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	1703	+	Administrative Procedures Act, Sections 250 through 323 of Title 75
	1704	+	of the Oklahoma Statutes.
	1705	+	G. H. At the time and place fixed for a hearing, the PBM shall
	1706	+	have an opportunity to be heard and to show cause why the Insurance
	1707	+	Commissioner Pharmacy Choice Commission or his or her its duly
	1708	+	appointed hearing examiner should not revoke or suspend the PBM's
	1709	+	license and levy administrative fines for each violation. Upon good
	1710	+	cause shown, the Commissioner Commission shall permit any person a
	1711	+	duly authorized representative of the PBM to intervene, appear and
	1712	+	be heard at the hearing b y counsel or in person.
	1713	+	H. I. All hearings will be public and held in accordance with,
	1714	+	and governed by, Sections 250 through 323 of Title 75 of the
	1715	+	Oklahoma Statutes.
	1716	+	I. J. The Insurance Commissioner, on behalf of the Pharmacy
	1717	+	Choice Commission, upon written request reasonably made by the
	1718	+	licensed PBM affected by the hearing and at such PBM's expense shall
	1719	+	cause a full stenographic record of the proceedings to be made by a
	1720	+	competent court reporter.
	1721	+	J. K. If the Insurance Commissioner Pharmacy Choice Comm ission
	1722	+	determines, based on an investigation of complaints, that a PBM has
	1723	+	engaged in violations of this act the Patient's Right to Pharmacy
	1724	+	Choice Act or Sections 356 through 360 of Title 59 of the Oklahoma
	1725	+	Statutes with such frequency as to indicate a ge neral business
	1726	+	practice and that such PBM should be subjected to closer supervision
	1727	+
	1728	+	ENGR. H. B. NO. 2123 Page 16 1
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	1753	+	with respect to such practices, the Insurance Commissioner
	1754	+	Commission may require the PBM to file a report at such periodic
	1755	+	intervals as the Insurance Commissioner Commission deems necessary.
	1756	+	SECTION 23. AMENDATORY Section 10, Chapter 426, O.S.L.
	1757	+	2019 (36 O.S. Supp. 2020, Section 6967), is amended to read as
	1758	+	follows:
	1759	+	Section 6967. A. Documents, materials, reports, complaints or
	1760	+	other information in the possession or control of the Insurance
	1761	+	Department, on behalf of the Pharmacy Choice Commission, that are
	1762	+	obtained by or disclosed to the Insurance Commissioner , Pharmacy
	1763	+	Choice Commission, or any other person in the course of an
	1764	+	evaluation, examinati on, investigation or review made pursuant to
	1765	+	the provisions of the Patient's Right to Pharmacy Choice Act or
	1766	+	Sections 356 through 360 of Title 59 of the Oklahoma Statutes shall
	1767	+	be confidential by law and privileged, shall not be subject to open
	1768	+	records request, shall not be subject to subpoena, and shall not be
	1769	+	subject to discovery or admissible in evidence in any private civil
	1770	+	action if obtained from the Insurance Commissioner , the Pharmacy
	1771	+	Choice Commission, or any employees or representatives of the
	1772	+	Insurance Commissioner Department.
	1773	+	B. Nothing in this section shall prevent the disclosure of a
	1774	+	final order issued against a pharmacy benefits manager by the
	1775	+	Insurance Commissioner Pharmacy Choice Commission or his or her its
	1776	+	duly appointed hearing examiner. Such orders shall be open records.
	1777	+
	1778	+	ENGR. H. B. NO. 2123 Page 17 1
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	1803	+	SECTION 24. It being immediately necessary for the preservation
	1804	+	of the public peace, health or safety, an emergency is hereby
	1805	+	declared to exist, by reason whereof this act shall take effect and
	1806	+	be in full force from and after its passage and approval.
	1807	+	Passed the House of Representatives the 8th day of March, 2021.
512	1808
513	1809
514	1810
515	1811
516	1812		Presiding Officer of the House
517	1813		of Representatives
518	1814
519	1815
520		-	Passed the Senate the ~~22nd~~ day of ~~April~~, 2021.
	1816	+	Passed the Senate the ___ day of __________, 2021.
521	1817
522	1818
523	1819
524	1820
525	1821		Presiding Officer of the Sen ate
526	1822
527		-
528		-
529		-	OFFICE OF THE GOVERNOR
530		-	Received by the Office of the Governor this ____________________
531		-	day of ___________________, 20_______, at _______ o'clock _______ M.
532		-	By: _________________________________
533		-	Approved by the Governor of the State of Oklahoma this _________
534		-	day of ___________________, 20_______, at _______ o'clock _______ M.
535		-
536		-
537		-	_________________________________
538		-	Governor of the State of Oklahoma
539		-
540		-	OFFICE OF THE SECRETARY OF STATE
541		-	Received by the Office of the Secretary of State this __________
542		-	day of ___________________, 20_______, at _______ o'clock _______ M.
543		-	By: _________________________________
544		-