Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1628 Latest Draft

Bill / Amended Version Filed 02/21/2024

                             
 
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SENATE FLOOR VERSION 
February 20, 2024 
AS AMENDED 
 
SENATE BILL NO. 1628 	By: Howard 
 
 
 
 
 
[ prescription drug pricing - pharmacy benefits 
manager - contracts - actions - codification - 
effective date ] 
 
 
 
 
 
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOM A: 
SECTION 1.     AMENDATORY    36 O.S. 2021, Section 6960, as 
amended by Section 1, Chapter 38, O.S.L. 2022 (36 O.S. Supp. 2023, 
Section 6960), is amended to read as follows: 
Section 6960. For purposes of the Patient ’s Right to Pharmacy 
Choice Act: 
1.  “Health insurer” means any corporation, association, benefit 
society, exchange, partnership or individual licensed by the 
Oklahoma Insurance Code; 
2.  “Health insurer payor” means a health insurance company, 
health maintenance organizatio n, union, hospital and medical 
services organization or any entity providing or admin istering a 
self-funded health benefit plan;   
 
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3. “Mail-order pharmacy” means a pharmacy licensed by this 
state that primarily dispenses and delivers covered drugs via commo n 
carrier; 
4.  “Pharmacy benefits manager ” or “PBM” means a person that 
performs pharmacy benefits man agement and any other person acting 
for such person under a contractual or employm ent relationship in 
the performance of pharmacy benefits management for a managed-care 
company, nonprofit hospital, medi cal service organization, insurance 
company, third-party payor or a health program administered by a 
department of this state; 
5. “Provider” means a pharmacy, as defined in Section 353.1 of 
Title 59 of the Oklahoma Statutes or an agent or representative of a 
pharmacy; 
6.  “Retail pharmacy network ” means retail pharmacy providers 
contracted with a PBM in which the pharmacy primari ly fills and 
sells prescriptions via a retail, storefron t location; 
7.  “Rural service area” means a five-digit ZIP code in which 
the population density is less than one thousand (1,000) individu als 
per square mile; 
8.  “Spread pricing” means a prescription drug pricing model 
utilized by a pharmacy benefits manager in which the PBM cha rges a 
health benefit plan a contracted price for prescription drugs that 
differs from the amount the PBM directly or indirectly pays the 
pharmacy or pharmacist for pr oviding pharmacy services;   
 
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9.  “Suburban service area” means a five-digit ZIP code in whi ch 
the population density is between one thousan d (1,000) and three 
thousand (3,000) individuals per square mile ; and 
10.  “Urban service area” means a five-digit ZIP code in which 
the population density is greater than three thousand (3,000) 
individuals per square mile; 
11.  “340B drug pricing” means the pricing agreement established 
under Section 602 of the Veterans Health Care Act of 1992, Pub. L. 
No. 102-585; and 
12.  “340B entity” means a covered entity as that term is 
defined in 42 U.S.C., Section 256b. 
SECTION 2.     AMENDATORY     36 O.S. 2021, Sect ion 6962, as 
last amended by Section 1, Chapter 293, O.S.L. 2023 (36 O.S. Supp. 
2023, Section 6962), is amended to read as follows: 
Section 6962. A.  The Attorney General shall review and approve 
retail pharmacy network access for all p harmacy benefits managers 
(PBMs) to ensure compliance with Sec tion 6961 of this title. 
B.  A PBM, or an agent of a PBM, s hall not: 
1.  Cause or knowingly permit the use of advertisement, 
promotion, solicitation, representation, proposal or offer that is 
untrue, deceptive or misleading; 
2.  Charge a pharmacist or phar macy a fee related to the 
adjudication of a claim including without limitation a fee for: 
a. the submission of a claim,   
 
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b. enrollment or partici pation in a retail pharmacy 
network, or 
c. the development or management of claims processing 
services or claims payment services related to 
participation in a retail pharmacy network; 
3.  Reimburse a pharmacy or pharmacist in the state an amount 
less than the amount that the PBM reimburses a pharm acy owned by or 
under common ownership with a PBM for providing the s ame covered 
services.  The reimbursement amount paid to the pharmacy shall be 
equal to the reimbursement amount calculated on a per-unit basis 
using the same generic product identifier or generic code number 
paid to the PBM-owned or PBM-affiliated pharmacy; 
4.  Deny a provider the opportunity to participate in any 
pharmacy network at preferred participation status if the provider 
is willing to accept the terms and conditions that the PBM has 
established for other providers as a condition of preferred networ k 
participation status; 
5.  Deny, limit or terminate a provider’s contract based on 
employment status of a ny employee who has an active license to 
dispense, despite probation status, wi th the State Board of 
Pharmacy; 
6.  Retroactively deny or reduce reimbu rsement for a covered 
service claim after returning a paid claim response as part of the 
adjudication of the claim, unless:   
 
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a. the original claim was submitted fraudulently, or 
b. to correct errors identified in an audit, so long as 
the audit was conducted in compliance with Sections 
356.2 and 356.3 of Title 59 of the Oklahoma Statutes; 
7.  Fail to make any payment due to a pharmacy or pharmacist for 
covered services properly re ndered in the event a PBM terminates a 
provider from a pharmacy benefits manager network; 
8.  Conduct or practice spread pricing, as defined in Section 1 
of this act, in this state; or 
9. Charge a pharmacist or pharmacy a fee related to 
participation in a re tail pharmacy network including but not limited 
to the following: 
a. an application fee, 
b. an enrollment or participation fee, 
c. a credentialing or re-credentialing fee, 
d. a change of ownership fee, or 
e. a fee for the development or management of claims 
processing services or claims payment services; 
10.  Discriminate, offer lower reimbursement, or impose any 
separate terms upon a provider on the basis that a p rovider 
participates in 340B drug pricing; 
11.  Require a provider to reverse, resubmit, or clarify a 340B 
drug pricing claim after the initial adjudication unless these   
 
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actions are in normal course of pharmacy business and not related to 
340B drug pricing; 
12.  Require a billing modifier to indicate that the drug or 
claim is a 340B drug pricing claim, unless the drug or claim is 
being billed to the Oklahoma Medicaid Program; 
13.  Modify a patient copayment on the basis that the provider 
of the patient participates in 340B drug pricing; 
14.  Exclude a provider from a network on the basis that the 
provider participates in 340B drug pricing ; 
15.  Establish or set network adequacy req uirements based on 
340B drug pricing participat ion by a provider; 
16.  Prohibit a 340B entity or a pharmacy under contract with a 
340B entity from participating in the network of the PBM on the 
basis of participation in 340B drug pricing; or 
17.  Base the drug formulary or drug coverage decisions upon the 
340B drug pricing status of a drug, including price or availability, 
or whether a dispensing pharmacy participates in 340B drug pricing. 
C.  The prohibitions under this section shall apply to contracts 
between pharmacy benefits managers and providers for participation 
in retail pharmacy networks. 
1.  A PBM contract shall: 
a. not restrict, directly or indirectly, any pharmacy 
that dispenses a presc ription drug from informing, or 
penalize such pharmacy for informing, an indivi dual of   
 
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any differential between the individual’s out-of-
pocket cost or coverage with respect to acquisition of 
the drug and the amount an individual would pay to 
purchase the drug directly, and 
b. ensure that any entity that provides pharmacy benefits 
management services under a contract with any such 
health plan or health insurance coverage does not, 
with respect to such plan or coverage, restrict, 
directly or indirectly, a ph armacy that dispenses a 
prescription drug from inf orming, or penalize such 
pharmacy for informing, a covered individual of any 
differential between the individual’s out-of-pocket 
cost under the plan or coverage with respect to 
acquisition of the drug and t he amount an individual 
would pay for acquisition of the drug without using 
any health plan or health insurance coverag e, and 
c. eliminate discriminatory contracting as it relates to: 
(1) transferring the benefit of 340B drug pricing 
savings from a 340B entity to another entity, 
including without limitation pharmacy bene fits 
managers, private insurers, and managed care 
organizations,   
 
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(2) offering a lower reimbursement rate for drugs 
purchased under 340B drug pricing than for the 
same drug not purchased under 340B d rug pricing, 
(3) refusal to cover drug purchases utilizing 340B 
drug pricing, 
(4) refusal to allow providers who utilize 340B drug 
pricing to participate in netwo rks, and 
(5) charging more than fair market value or seeking 
profit sharing in exchange for servi ces involving 
340B drug pricing. 
2.  A pharmacy benefits manager ’s contract with a provider shall 
not prohibit, restrict or limit disclosure of information to the 
Attorney General, law enforcement or state and federal governmental 
officials investigating or examining a c omplaint or conducting a 
review of a pharmacy benefits manager ’s compliance with the 
requirements under the Patient’s Right to Pharmacy Choice Act. 
D. A pharmacy benefits m anager shall: 
1. Establish and maintain an electronic claim inquiry 
processing system using the National Council for Prescription Drug 
Programs’ current standards to communicate information to pharmacies 
submitting claim inquiries ; 
2.  Fully disclose to insurers, self-funded employers, unions or 
other PBM clients the existence of the re spective aggregate   
 
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prescription drug discounts, rebates rece ived from drug 
manufacturers and pharmacy audit recoupments; 
3.  Provide the Attorney General, insurers, self-funded employer 
plans and unions unrestricted audi t rights of and access to the 
respective PBM pharmaceutical manufacturer and provider contracts, 
plan utilization data, plan pricing data, pharmacy utilization data 
and pharmacy pricing data; 
4.  Maintain, for no less than three (3) years, documentation of 
all network development activities including but not limited to 
contract negotiations and any denials to providers to join networks.  
This documentation shall be made available to th e Attorney General 
upon request; 
5.  Report to the Attorney General, on a quarterly basis for 
each health insurer payor, on the following information: 
a. the aggregate amount of rebates received by t he PBM, 
b. the aggregate amount of rebates distributed to the 
appropriate health in surer payor, 
c. the aggregate amount of rebates passed on to the 
enrollees of each healt h insurer payor at the point of 
sale that reduced the applicable deductible, 
copayment, coinsure or other cost sharing amount of 
the enrollee, 
d. the individual and agg regate amount paid by t he health 
insurer payor to the PBM for pharmacy services   
 
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itemized by pharmacy, drug product and service 
provided, and 
e. the individual and aggreg ate amount a PBM paid a 
provider for pharmacy services itemized by pharmacy, 
drug product and service provide d; and 
6.  Make drug formulary and coverage decisions based on the 
normal course of business of the PBM. 
SECTION 3.     AMENDATORY     Section 3, Chapter 38, O.S.L. 
2022, as amended by Section 3, Chapter 293, O.S.L. 2023 (36 O.S. 
Supp. 2023, Section 6966.1), is am ended to read as fol lows: 
Section 6966.1. A.  The Insurance Commissioner may censure, 
suspend, revoke or refuse to issue or renew a license of or levy a 
civil penalty against any person licensed under the insurance laws 
of this state for any violation of the Patient’s Right to Pharmacy 
Choice Act, Section 6958 et seq. o f this title. 
B.  1.  If the Attorney General finds, after notice and 
opportunity for hearing, that a pharmacy benefits manager (PBM) 
violated one or more provisions of the Patient’s Right to Pharmacy 
Choice Act, the Pharmacy Audit Integrity Act or the provisions of 
Sections 357 through 360 of Title 59 of the Oklahoma Statues, the 
Attorney General may recommend the PBM be censured, his or her 
license may be suspended or rev oked and a penalty or remedy 
authorized by this act may be imposed.  If the Attorney General   
 
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makes such recommendation, the Commissioner shall take the 
recommended action. 
2.  In addition to or in lieu of any censure, suspension or 
revocation of a license, a PBM may be subject to a civil fine o f not 
less than One Hundred Dollars ($100.00) and not greater tha n Ten 
Thousand Dollars ($10,000.00) for each violation of the provisions 
of the Patient’s Right to Pharmacy Choice Act, the Pharmacy Audit 
Integrity Act or the provi sions of Sections 357 throug h 360 of Title 
59 of the Oklahoma Statues, following notic e and an opportunity for 
a hearing. 
C.  Notwithstanding whether the license of a PBM has been 
issued, suspended, revoke d, surrendered or lapsed by operation of 
law, the Attorney General is hereby authorized to enforce the 
provisions of the Patient ’s Right to Pharmacy Cho ice Act and impose 
any penalty or remedy authorized under the act against a PBM under 
investigation for or charg ed with a violation of the Pati ent’s Right 
to Pharmacy Choice Act, the Pharmacy Audit Integrity Act, the 
provisions of Sections 357 through 360 of Title 59 of the Oklahoma 
Statues or any provisi on of the insurance laws of this state. 
D.  Each day that a PBM conducts business in this sta te without 
a license from the Insurance Department shall be deemed a violation 
of the Patient’s Right to Pharmacy Choice Act.   
 
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E.  1.  All hearings conducted by the Office of the Attorney 
General pursuant to this section shall be public and held in 
accordance with the Administrative Procedures Act. 
2.  Hearings shall be held at the office of the Attorney General 
or any other place the Attorney General may deem convenient. 
3. The Attorney General, upon written request from a PBM 
affected by the hearing, shall cause a f ull stenographic record of 
the proceedings to be made by a competent court reporter .  This 
record shall be at the expense of the PBM. 
4.  The ordinary fees and costs of the hearing examiner 
appointed pursuant to Section 319 of this title may be assessed by 
the hearing examiner against the respondent unless the respondent is 
the prevailing party. 
F.  Any PBM whose license has been censured, susp ended, revoked 
or denied renewal or who has had a fine levied against him or her 
shall have the right of appeal from the final order of the Attorney 
General, pursuant to Section 318 et seq. of Title 75 of the Oklahoma 
Statutes. 
G.  If the Attorney General determines, based upon an 
investigation of complaints, that a PBM has engaged in violations of 
the provisions of the Patient’s Right to Pharmacy Choice Act with 
such frequency as to indicate a general business practice, and that 
the PBM should be subjected to closer supervision with respect to 
those practices, the Attorney General may require the PBM to file a   
 
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report at any periodic interval the Attorney General deems 
necessary. 
H.  All claims processed by a PBM on behalf of a provider that 
participates in 340B drug pricing or on behalf of a 340B entity 
shall be deemed final at t he point of adjudication. 
SECTION 4.     AMENDATORY     59 O.S. 2021, Section 353.1, as 
amended by Section 6, Chapter 288, O.S.L. 2022 (59 O.S. Supp. 2023, 
Section 353.1), is amended to read as follows: 
Section 353.1. For the purposes of the Oklahoma Pharmacy Act: 
1.  “Accredited program” means those seminars, classes, 
meetings, work projects, and oth er educational courses approved by 
the Board for purposes of continuing professional education; 
2.  “Act” means the Oklahoma Pharmacy Act; 
3.  “Administer” means the direct application of a drug, whether 
by injection, inhalation, ingestion or any other m eans, to the body 
of a patient; 
4.  “Assistant pharmacist” means any person presently licensed 
as an assistant pharmacist in the State of Okla homa by the Board 
pursuant to Section 353.10 of this title and for the purposes of the 
Oklahoma Pharmacy Act shal l be considered the same as a pharmacist, 
except where otherwise specified; 
5.  “Board” or “State Board” means the State Board of Pharmacy; 
6.  “Certify” or “certification of a prescription ” means the 
review of a filled prescription by a licensed pharmac ist or a   
 
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licensed practitioner with dispensing authori ty to confirm that the 
medication, labeling an d packaging of the filled prescription are 
accurate and meet all requirem ents prescribed by state and federa l 
law.  For the purposes of this paragraph, “licensed practitioner” 
shall not include optometrists wit h dispensing authority; 
7.  “Chemical” means any medicinal substance, whether simple or 
compound or obtained through the process of the science and art of 
chemistry, whether of organic or inorganic ori gin; 
8.  “Compounding” means the combining, admixing, m ixing, 
diluting, pooling, reconstituting or ot herwise altering of a drug or 
bulk drug substance to create a drug.  Compounding includes the 
preparation of drugs or devices in anticipation of prescript ion drug 
orders based on routine, regularly observed pre scribing patterns; 
9.  “Continuing professional education” means professional, 
pharmaceutical education in the general areas of the socioeconomic 
and legal aspects of health care; the properties and actions of 
drugs and dosage forms; and the etiology, char acteristics and 
therapeutics of the diseased s tate; 
10.  “Dangerous drug”, “legend drug”, “prescription drug” or “Rx 
Only” means a drug: 
a. for human use subject to 21 U.S.C. 353(b)(1), or 
b. is labeled “Prescription Only”, or labeled with the 
following statement:  “Caution:  Federal law restricts   
 
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this drug except for use by or on the order of a 
licensed veterinarian.”; 
11.  “Director” means the Executive Director of the State Board 
of Pharmacy unless context clearly indicates otherwise; 
12.  “Dispense” or “dispensing” means the interpretation, 
evaluation, and implementation of a prescription dru g order 
including the prepar ation and delivery of a drug or dev ice to a 
patient or a patient ’s agent in a suitable container appropria tely 
labeled for subsequent ad ministration to, or use by, a patient.  
Dispense includes sell, distribute, leave with, give away, dispose 
of, deliver or supply; 
13.  “Dispenser” means a retail pharmacy, hospital pharmacy, a 
group of chain pharmacies under c ommon ownership and control th at do 
not act as a wholesale distributor, or any other person authorized 
by law to dispense or administer prescription d rugs, and the 
affiliated warehouses or distributions of such entities und er common 
ownership and control t hat do not act as a wholesale distributor.  
For the purposes of this paragraph, “dispenser” does not mean a 
person who dispenses only products to be used in animals in 
accordance with 21 U.S.C. 360b(a)(5); 
14.  “Distribute” or “distribution” means the sale, purchase, 
trade, delivery, handling, storage, or receipt of a product, and 
does not include the dispensing of a product pursuant to a 
prescription executed in accordance with 21 U.S.C . 353(b)(1) or the   
 
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dispensing of a product approved under 21 U.S.C. 360 b(b); provided, 
taking actual physical possession of a product or title shall not be 
required; 
15.  “Doctor of Pharmacy” means a person licensed by the Board 
to engage in the practice of pharmacy .  The terms “pharmacist”, 
“D.Ph.”, and “Doctor of Pharmacy” shall be interchangeable and s hall 
have the same meaning wherever they a ppear in the Oklahoma Statutes 
and the rules promulgated by the Board; 
16.  “Drug outlet” means all manufacturers , repackagers, 
outsourcing faciliti es, wholesale distributors, third -party 
logistics providers, pharm acies, and all other facilities which are 
engaged in dispensing, delivery, distribution or s torage of 
dangerous drugs; 
17.  “Drugs” means all medicinal substances and preparations 
recognized by the United States Pharmacopoeia and National 
Formulary, or any revision thereof, and all substances an d 
preparations intended for external and/or internal use in the cure, 
diagnosis, mitigation, treatment or preventio n of disease in humans 
or animals and all substances and preparations, other than food, 
intended to affect the structure or any function of the body of a 
human or animals; 
18.  “Drug sample” means a unit of a prescription drug packaged 
under the authority and responsibility of the manufac turer that is   
 
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not intended to be sold and is intended to promote the sale of the 
drug; 
19. “Durable medical equipment” has the same meaning as 
provided by Section 2 of this act; 
20. “Filled prescription” means a packaged prescription 
medication to which a label has been affixed which contain s such 
information as is requi red by the Oklahoma Pharmacy Act; 
21.  “Hospital” means any institution licensed as a hospit al by 
this state for the care and treatment of patients, or a pharmacy 
operated by the Oklahoma Department of Veterans Affairs; 
22.  “Licensed practitioner ” means an allopathic physician, 
osteopathic physician, podiatric physician, dentist, veterinarian or 
optometrist licensed to pra ctice and authorized to prescribe 
dangerous drugs within the scope of practice of such practitione r; 
23.  “Manufacturer” or “virtual manufacturer” means with respect 
to a product: 
a. a person that holds an application appr oved under 21 
U.S.C. 355 or a license issued under 42 U.S.C. 262 for 
such product, or if such product is not the subject of 
an approved application or license , the person who 
manufactured the product, 
b. a co-licensed partner of the person described in 
subparagraph a that obtains the produ ct directly from   
 
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a person described in this subparagraph or 
subparagraph a of this paragraph, 
c. an affiliate of a person described in subpara graph a 
or b who receives the product directly from a person 
described in this subpara graph or in subparagraph a or 
b of this paragraph, or 
d. a person who contracts with another to manufacture a 
product; 
24.  “Manufacturing” means the production, preparation, 
propagation, compounding, conversion or processing of a device or a 
drug, either directly or indirectly by extraction from substances of 
natural origin or independently by means of chemic al or biological 
synthesis and includes any pac kaging or repackaging of the 
substances or labeling or relabeling of its container, and the 
promotion and marketing of such drug s or devices.  The term 
“manufacturing” also includes the preparation and promoti on of 
commercially available products from bulk compounds for resale by 
licensed pharmacies, licensed practitioners or other persons; 
25.  “Medical gas” means those gases including those in liquid 
state upon which the manufacturer or distributor has placed one of 
several cautions, such as “Rx Only”, in compliance with federal l aw; 
26.  “Medical gas order” means an order for medical gas issued 
by a licensed prescriber;   
 
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27.  “Medical gas distributor ” means a person licensed to 
distribute, transfer, wholesale, deliver or sell medical gases on 
drug orders to suppliers or oth er entities licensed to use, 
administer or distribute medical gas and may also includ e a patient 
or ultimate user; 
28.  “Medical gas supplier” means a person who dispenses medical 
gases on drug orders only to a patient or ultimate user; 
29.  “Medicine” means any drug or combination of drugs which has 
the property of curing, preventing, tre ating, diagnosing or 
mitigating diseases, or which is used for that purpose; 
30.  “Nonprescription drugs ” means medicines or drug s which are 
sold without a prescription and which are prepackaged for use by the 
consumer and labeled in accordance with the re quirements of the 
statutes and regulations of this state and th e federal government.  
Such items shall also include medical and d ental supplies and 
bottled or nonbulk chemicals which are sold or offered for sale to 
the general public if such articles or pr eparations meet the 
requirements of the Federal Food, Drug and Cosmetic Act, 21 
U.S.C.A., Section 321 et seq.; 
31.  “Outsourcing facility” including “virtual outsourcing 
facility” means a facility at one geograp hic location or address 
that: 
a. is engaged in the compounding of sterile drugs,   
 
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b. has elected to register as an outsourcing facility, 
and 
c. complies with all requirem ents of 21 U.S.C. 353b; 
32.  “Package” means the smallest individual saleable unit of 
product for distribution by a manufact urer or repackager that is 
intended by the manufacturer for ultimate s ale to the dispenser of 
such product.  For the purposes of this paragraph, “individual 
saleable unit” means the smallest container of a product intro duced 
into commerce by the manufactur er or repackager that is intended by 
the manufacturer or repackager fo r individual sale to a dispenser; 
33.  “Person” means an individual, partnership, li mited 
liability company, corporation or association, unless the context 
otherwise requires; 
34.  “Pharmacist-in-charge” or “PIC” means the pharmacist 
licensed in this state responsible for th e management control of a 
pharmacy and all other aspects of t he practice of pharmacy in a 
licensed pharmacy as defined by Section 353.18 of this title; 
35.  “Pharmacy” means a place regularly licensed by the Board of 
Pharmacy in which prescriptions, drugs, medicines, chemicals and 
poisons are compounded or dispe nsed or such place where pharmacists 
practice the profession of pharmacy, or a pharmacy operated by the 
Oklahoma Department of Veterans Affairs; 
36.  “Pharmacy technician”, “technician”, “Rx tech”, or “tech” 
means a person issued a Technician permit by the State Board of   
 
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Pharmacy to assist the pharmacist and perform nonjudgment al, 
technical, manipulative, non-discretionary functions in the 
prescription department under the immediate and direct supervision 
of a pharmacist; 
37.  “Poison” means any substance which when introduced into the 
body, either directly or by abs orption, produces violent, morbid or 
fatal changes, or wh ich destroys living tissue with which such 
substance comes into contact; 
38.  “Practice of pharmacy” means: 
a. the interpretation and evaluation of prescription 
orders, 
b. the compounding, dispensing, administer ing and 
labeling of drugs and devices, except labeling by a 
manufacturer, repackager or distributor of 
nonprescription drugs and commercially packaged legend 
drugs and devices, 
c. the participation in drug selection and drug 
utilization reviews, 
d. the proper and safe storage of drugs and de vices and 
the maintenance of proper r ecords thereof, 
e. the responsibility for advising by counseling and 
providing information, where professionally necessary 
or where regulated, of therapeutic values, content, 
hazards and use of drugs and devices,   
 
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f. the offering or performing of those ac ts, services, 
operations or transacti ons necessary in the conduct, 
operation, management and control of a pharmacy, or 
g. the provision of those acts or services that are 
necessary to provide pharmaceutical care; 
39.  “Preparation” means an article which may or may not contain 
sterile products compounded in a licensed pharmacy pursuant to the 
order of a licensed prescriber; 
40.  “Prescriber” means a person licensed in this state who is 
authorized to prescribe dangerous drugs within the scope of practice 
of the person’s profession; 
41.  “Prescription” means and includes any order for drug or 
medical supplies written or signed, or transmitted by word of mouth, 
telephone or other means of communication: 
a. by a licensed prescriber, 
b. under the supervision of an Oklahoma licensed 
practitioner, an Oklahoma licensed advanced practice 
registered nurse or an Oklahoma licensed physician 
assistant, or 
c. by an Oklahoma licensed wholesaler or distri butor as 
authorized in Section 353.29.1 of th is title; 
42.  “Product” means a prescription drug in a finishe d dosage 
form for administration to a patient w ithout substantial further 
manufacturing, such as ca psules, tablets, and lyophilized prod ucts   
 
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before reconstitution.  “Product” does not include blood components 
intended for transfusion, radioactive drugs or biologics and med ical 
gas; 
43.  “Repackager”, including “virtual repackager”, means a 
person who owns or operates an establishment that repac ks and 
relabels a product or package for further sale or distribution 
without further transaction; 
44.  “Sterile drug” means a drug that is intended for p arenteral 
administration, an ophthalmic or oral inhalation drug in aqueous 
format, or a drug that is required to be sterile under state and 
federal law; 
45.  “Supervising physician ” means an individual holding a 
current license to practice as a physician from the State Board of 
Medical Licensure and Supervision, pursuant to the provisions of the 
Oklahoma Allopathic Medical and Surgical Licensur e and Supervision 
Act, or the State Board of Osteopathic Examiners, pursuant to the 
provisions of the Oklahoma Osteopathic Medicine Act, who supervises 
an advanced practice registered nurse as defined in Secti on 567.3a 
of this title, and who is not in trai ning as an intern, resident, or 
fellow.  To be eligible to supervise an advanced practice registered 
nurse, such physician shall remain in compliance with the rules 
promulgated by the State Board of Medical Li censure and Supervision 
or the State Board of O steopathic Examiners;   
 
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46.  “Supportive personnel” means technicians and auxi liary 
supportive persons who are regularly paid employees of a pharma cy 
who work and perform ta sks in the pharmacy as authorized by Section 
353.18A of this title; 
47.  “Third-party logistics provider” including “virtual third-
party logistics provider ” means an entity that provides or 
coordinates warehousing, or other logi stics services of a product in 
interstate commerce on beh alf of a manufacturer, wholesale 
distributor, or dispenser of a produ ct but does not take ownersh ip 
of the product, nor have res ponsibility to direct the sale or 
disposition of the product.  For the purposes of this paragraph, 
“third-party logistics provid er” does not include shippers and the 
United States Postal Service; 
48.  “Wholesale distributor ” including “virtual wholesale 
distributor” means a person other than a manufacturer, a 
manufacturer’s co-licensed partner, a thir d-party logistics 
provider, or repackager engaged in wh olesale distribution as defined 
by 21 U.S.C. 353(e)(4) as amended by the Drug Supply Chain Security 
Act; 
49.  “County jail” means a facility operated by a county for the 
physical detention and correct ion of persons charged with, or 
convicted of, criminal offenses or ordinance violations or persons 
found guilty of civil or criminal contempt;   
 
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50.  “State correctional facility ” means a facility or 
institution that houses a p risoner population under the j urisdiction 
of the Department of Corrections; 
51.  “Unit dose package” means a package that contains a single 
dose drug with the n ame, strength, control number, and expiration 
date of that drug on the label; and 
52.  “Unit of issue package” means a package that provides 
multiple doses of the same dru g, but each drug is individually 
separated and includes t he name, lot number, and expiration da te; 
53.  “340B drug pricing” means the pricing agreement established 
under Section 602 of the Veterans Health Care Act of 1992, Pub. L. 
No. 102-585; and 
54.  “340B entity” means a covered entity as that term is 
defined in 42 U.S.C., Section 256b. 
SECTION 5.     NEW LAW     A new secti on of law to be codified 
in the Oklahoma Statutes as Section 355.5 of Title 59, unless there 
is created a duplicatio n in numbering, reads as follows: 
A manufacturer shall not: 
1.  Deny, prohibit, condition, discriminate against, refuse, or 
withhold 340B drug pricing for, or otherwise limit the dispensing , 
purchase, ordering, delivery , or receipt of, a drug purchased by a 
340B entity, including, but not limited to, a drug purchased to be 
dispensed or administered under a contract pharmacy agreement; or   
 
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2.  Prohibit a pharmacy from contracting or participating with a 
340B entity by denying 340B pricing on, or the pharmacy ’s access to, 
a drug that is manufactured by a manufacturer based on a pharmacy’s 
relationship with a 340B entity. 
SECTION 6.  This act shall become effective November 1, 2024. 
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE 
February 20, 2024 - DO PASS AS AMENDED