Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB773 Latest Draft

Bill / Amended Version Filed 04/16/2025

                             
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HOUSE OF REPRESENTATIVES - FLOOR VERSION 
 
STATE OF OKLAHOMA 
 
1st Session of the 60th Legislature (2025) 
 
ENGROSSED SENATE 
BILL NO. 773 	By: Gollihare and Jech of the 
Senate 
 
  and 
 
  Stinson of the House 
 
 
 
An Act relating to pharmacy benefit managers; 
amending 36 O.S. 2021, Sections 6960, as last amended 
by Section 1, Chapter 306, O.S.L. 2024, 6962, as last 
amended by Section 2, Chapter 306, O.S.L. 2024, 6965, 
as last amended by Section 3, Chapter 306, O.S.L. 
2024, and Section 3, Chapter 38, O.S.L. 2022, a s last 
amended by Section 4, Chapter 306, O.S.L. 2024 (36 
O.S. Supp. 2024, Section s 6960, 6962, 6965, and 
6966.1), which relate to definitions, compliance 
review, and power, authority to investigate, examine, 
and enforce, and violations, penalties, and hea rings; 
modifying definitions; prohibiting certain 
circumstances; requiring nonpayment under providing 
venue for certain court proceeding; allowing Attorney 
General to obtain certain information; extending 
certain duties; allowing certain request for a cour t 
reporter; requiring certain refund of certain costs 
by Attorney General; establishing certain fines and 
penalties; updating statutory references; and 
providing an effective date . 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     36 O.S. 2021, Section 6960, as 
last amended by Section 1, Chapter 306, O.S.L. 2024 (36 O.S. Supp. 
2024, Section 6960), is amended to read as follows:   
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Section 6960.  A.  For purposes of the Patient ’s Right to 
Pharmacy Choice Act: 
1.  “Covered entity” means a nonprofit hospital or medical 
service organization, for -profit hospital or medical service 
organization, insurer, health benefit plan, health maintenance 
organization, health program administered by the state in the 
capacity of providing health coverage, or an employer, labor union, 
or other group of persons that provides health coverage to persons 
in this state.  This term does not include a health plan that 
provides coverage only for accidental injury, specified disease, 
hospital indemnity, disability income, or other limited benefit 
health insurance policies and contracts th at do not include 
prescription drug coverage; 
2.  “Health insurer” means any corporation, association, benefit 
society, exchange, partnership or indivi dual licensed by the 
Oklahoma Insurance Code; 
3.  “Health insurer payor ” means a health insurance company, 
health maintenance organization, union, hospital and medical 
services organization or any entity providing or administering a 
self-funded health benefit plan; 
4.  “Mail-order pharmacy” means a pharmacy licensed by this 
state that primarily dispenses and delivers covered drugs via common 
carrier;   
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5.  “Pharmacy benefits manager ” or “PBM” means a person, 
business, or other entity that performs pharmacy be nefits 
management.  The term shall include any business or entity licensed 
by the Insurance Department to perform PBM services, or a person or 
entity acting on behalf of a PBM in a contractual or employment 
relationship in the performance of pharmacy benef its management for 
a managed care company, nonprofit hospital, medical service 
organization, insurance co mpany, third-party payor or a health 
program administered by a department of this state; 
6.  “Pharmacy benefits management ” means a service provided to 
covered entities to facilitate the provisions of prescription drug 
benefits to covered individuals within the state, including, but not 
limited to, negotiating pricing and other terms with drug 
manufacturers and providers.  Pharmacy benefits management ma y 
include any or all of the following services: 
a. claims processing, retail network management, and 
payment of claims to pharmacies for prescription drugs 
dispensed to covered individuals, 
b. administration or management of pharmacy discount 
cards or programs, 
c. clinical formulary development and management 
services, or 
d. c. rebate contracting and administration;   
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7.  “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; 
8.  “Retail pharmacy network ” means retail pharmacy providers 
contracted with a PBM in which the pharmacy primarily fills and 
sells prescriptions via a retail, storefront location; 
9.  “Rural service area” means a five-digit ZIP code in which 
the population density is less than one thousand (1,000) individuals 
per square mile; 
10.  “Spread pricing” means a prescription drug pricing model 
utilized by a pharmacy benefits manager in which the PBM charges a 
health benefit plan a contracted price for prescriptio n drugs that 
differs from the amount the PBM directly or indirectly pays the 
pharmacy or pharmacist for p roviding pharmacy services; 
11.  “Suburban service area ” means a five-digit ZIP code in 
which the population density is between one thousand (1,000) an d 
three thousand (3,000) individuals per square mile; and 
12.  “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. 
B.  Nothing in the definitions of pharmacy b enefits manager or 
pharmacy benefits management as such terms are defined in the 
Patient’s Right to Pharmacy Choice Act, the Pharmacy Audit Integrity 
Act, or Sections 357 through 360 of Title 59 of the Oklahoma   
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Statutes shall be construed to deem the follo wing entities to be a 
pharmacy benefits manager: 
1.  An employer of its own self -funded health benefit plan, 
except, to the extent permitted by applicable law, where the 
employer without the utilization of a third party and unrelated to 
the employer’s own pharmacy: 
a. negotiates directly with drug manufacturers, 
b. processes claims on behalf of its members, o r 
c. manages its own retail network of pharmacies; or 
2.  A pharmacy that provides a patient with a discount card or 
program that is for exclusive use at the pharmacy offering the 
discount. 
SECTION 2.     AMENDATORY     36 O.S. 2021, Section 6962, as 
last amended by Section 2, Chapter 306, O.S.L. 2024 (36 O.S. Supp. 
2024, Section 6962), is amended to read as follows: 
Section 6962.  A.  The Attorney General shall review and approve 
retail pharmacy network access for all pharmacy benefits ma nagers 
(PBMs) to ensure compliance with Section 6961 of this title. 
B.  A PBM, or an agent of a PBM, shall not: 
1.  Cause or knowingly permit the use o f advertisement, 
promotion, solicitation, representation, proposal or offer that is 
untrue, deceptive or misleading; 
2.  Charge a pharmacist or pharmacy a fee related to the 
adjudication of a claim including without limitation a fee for:   
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a. the submission of a claim, 
b. enrollment or participation in a retail pharmacy 
network, or 
c. the development or managem ent of claims processing 
services or claims payment services related to 
participation in a retail pharmacy network; 
3.  Reimburse a pharmacy or pharmac ist in the state an amount 
less than the amount that the PBM reimburses a pharmacy owned by or 
under common ownership with a PBM for providing the same covered 
services.  The reimbursement amount paid to the pharmacy shall be 
equal to the reimbursement amo unt 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 stat us if the provider 
is willing to accept the terms and conditions that the PBM has 
established for other providers as a condition of preferred network 
participation status; 
5.  Deny, limit or terminate a provider ’s contract based on 
employment status of any employee who has an active license to 
dispense, despite probation status, with the State Board of 
Pharmacy;   
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6.  Retroactively deny or reduce reimbursement for a covered 
service claim after returning a paid claim response as part of the 
adjudication of the claim, unless: 
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 paym ent due to a pharmacy or pharmacist for 
covered services properly rendered in the event a PBM terminates a 
provider from a pharmacy benefits manager network; 
8.  Fail to make any payment due to a pharmacy or pharmacist for 
covered services properly rendere d in the event a PBM terminates its 
contract with a plan sponsor or insurer; 
9. Conduct or practice spread pricing, as defined in Section 
6960 of this title, in this state; or 
9. 10. Charge a pharmacist or pharmacy a fee related to 
participation in a ret ail 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 clai ms 
processing services or claims payment services.   
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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 prescription drug from informing, or 
penalize such pharmacy for informing, an individual of 
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 pharmacy that dispenses a 
prescription drug from i nforming, 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 the amount an individual 
would pay for acquisition of the drug without using 
any health plan or health insurance coverage.   
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2.  A pharmacy benefits manager ’s contract with a provider shall 
not prohibit, restrict, or limit disclosure of information or 
documents to the Attorney General, law enforcement or s tate and 
federal governmental officials investigating or examining a 
complaint or conducting a review of a pharmacy benefits manager ’s 
compliance with the requirements under the Patient ’s Right to 
Pharmacy Choice Act, the Pharmacy Audit Integrity Act, and Sections 
357 through 360 of Title 59 of the Oklahoma Statutes. 
D.  A pharmacy benefits manager shall: 
1.  Establish and maintain an electronic claim in quiry 
processing system using the National Council for Prescription Drug 
Programs’ Programs’s 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 respective aggregate 
prescription drug discounts, rebates received from drug 
manufacturers and pharmacy audit recoupments; 
3.  Provide the Attorney General, insurers, self -funded employer 
plans and unions unrestricted audit rig hts 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,   
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contract negotiations and any denials to providers to join networks.  
This documentation shall be made available to the Attorney General 
upon request; and 
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 the PBM, 
b. the aggregate amount of rebates distributed to the 
appropriate health insurer payor, 
c. the aggregate amount of rebate s passed on to the 
enrollees of each health 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 aggregate amount paid by the health 
insurer payor to the PBM for pharmacy services 
itemized by pharmacy, drug product and service 
provided, and 
e. the individual and aggregate amount a PBM paid a 
provider for pharmacy services itemized by pharmacy, 
drug product and service provided. 
E.  Nothing in the Pa tient’s Right to Pharmacy Choice Act shall 
prohibit the Attorney General from requesting and obtaining detailed 
data, including raw data, in response to the information provided by 
a PBM in the quarterly reports required by this section.  The   
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Attorney General may alter the frequency of the reports required by 
this section at his or her sole discretion. 
F.  The Attorney General may promulgate rules to implement the 
provisions of the Patient ’s Right to Pharmacy Choice Act, the 
Pharmacy Audit Integrity Act, an d Sections 357 through 360 of Title 
59 of the Oklahoma Statutes. 
SECTION 3.     AMENDATORY     36 O.S. 2021, Section 6965, as 
last amended by Section 3, Chapter 306, O.S.L. 2024 (36 O.S. Supp. 
2024, Section 6965), is amended to read as fo llows: 
Section 6965.  A.  The Attorney General shall have power and 
authority to examine and investigate the affairs of every pharmacy 
benefits manager (PBM) engaged in pharmacy benefits management in 
this state in order to determine whether such entity is in 
compliance with the Patient ’s Right to Pharmacy Choice Act, the 
Pharmacy Audit Integrity Act, and Sections 357 through 360 of Title 
59 of the Oklahoma Statutes. 
B.  The Attorney General shall have the power and authority to 
subpoena witnesses and recor ds, whether prior to or during an 
investigation or prosecution of a complaint, from any relevant 
entity or persons to ensure compliance with the Patient ’s Right to 
Pharmacy Choice Act, the Pharmacy Audit Integrity Act, and Sections 
357 through 360 of Title 59 of the Oklahoma Statutes. 
C.  All PBM files and records shall be subject to examination by 
the Attorney General or by duly appointed designees.  The Attorney   
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General, authorized employees and examiners shall have access to any 
of a PBM’s files and records that may relate to a particular 
complaint under investigation or to an inquiry or examination by the 
Attorney General. 
D.  Every officer, director, employee or agent of the PBM, upon 
receipt of any inquiry from the Attorney General, shall, within 
twenty (20) days from the date the inquiry is sent, furnish the 
Attorney General with an adequate response to the inquiry. 
E.  When making an examination under this section, the Attorney 
General may retain subject matter experts, attorneys, appraisers, 
independent actuaries, independent certified public accountants or 
an accounting firm or individual holding a per mit to practice public 
accounting, certified financial examiners or other professionals and 
specialists as examiners, the cost of which shall be borne by the 
PBM that is the subject of the examination. 
F.  1.  Protected health information (PHI) held by a PBM shall 
be provided at the request of the Attorney General for the purpose 
of conducting investigations into potential violations of state laws 
and regulations related to the PBM.  Disclosure of protected health 
information shall be limited to the extent necessary for the 
investigation and enforcement of state law. 
2.  All disclosures of protected health information shall be 
made in compliance with all applicable federal and state privacy 
laws, including the Health Insurance Portability and Accountability   
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Act of 1996 (HIPAA), and other relevant laws protecting the privacy 
and confidentiality of health information. 
3.  Any protected health information obt ained for an 
investigation shall be handled and maintained per applicable federal 
and state privacy laws and regulations, including HIPAA. 
4.  Unauthorized disclosure of protected health information 
obtained during an investigation is strictly prohibited a nd subject 
to legal penalties. 
G.  1.  If the Attorney General, after notice and opportunity 
for hearing, finds that any PBM operating within this state has not 
fully cooperated with an investigation or inquiry conducted by the 
Attorney General related to compliance with the Patient ’s Right to 
Pharmacy Choice Act, the Pharmacy Audit Integrity Act, and Section s 
357 through 360 of Title 59 of the Oklahoma Statutes, the Attorney 
General may instruct the Insurance Commissioner that the PBM be 
censured or his or her license be suspended or revoked.  If the 
Attorney General makes such instruction, the Commissioner shall 
enforce the instructed action within thirty (30) days. 
2.  In addition to or in lieu of any censure, suspension, or 
revocation by the Commissioner , the Attorney General may levy a 
civil or administrative fine not less than One Hundred Dollars 
($100.00) and not greater than Ten Thousand Dollars ($10,000.00) for 
each violation of this subsection and assess any other penalty or 
remedy authorized by thi s act section and Sections 6960, 6962,   
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6966.1, 6966.2, and 6967 of this title .  For purposes of this 
section, each day a PBM fails to comply with an investigation or 
inquiry may be considered a separate violation. 
H.  The proper venue to compel compliance with a subpoena of a 
person or entity under this section shall be in the Oklahoma County 
District Court. 
I.  No provision of this state ’s law shall be construed to 
prohibit the Attorney General from obtaining any information or 
documentation pertaining to prescription drug transactions 
including, but not limited to, data, statements, testimonies, 
contracts, communications, provider manuals, or any other 
documentation or materials, whether related to discount programs, 
loyalty programs, or otherwise.  The du ty to provide cooperation as 
set forth in this section shall extend to all PBMs, insurers, 
auditors, employers, vendors, or any other individual s or entities 
acting on behalf of or in collaboration with a PBM. 
SECTION 4.     AMENDATORY    Section 3, Chapter 38, O.S.L. 
2022, as last amended by Section 4, Chapter 306, O.S.L. 2024 (36 
O.S. Supp. 2024, Section 6966.1), is amended to read as follows : 
Section 6966.1.  A.  The Insurance Commissioner may censure, 
suspend, revoke, or refuse to iss ue 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. of this title.   
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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 th e Oklahoma Statutes, the 
Attorney General may instruct the Insurance Commissioner that the 
PBM be censured or his or her license be suspended or revoked.  If 
the Attorney General makes such instruction, the Commissioner shall 
enforce such action within thi rty (30) days. 
2.  In addition to or in lieu of any censure or suspension or 
revocation of a license by the Commissioner, the Attorney General 
may levy a civil or administrative fine not less than One Hundred 
Dollars ($100.00) and not greater than Ten Thou sand 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 provisions of Sections 357 through 360 of Title 59 of the 
Oklahoma Statutes. 
3.  The Attorney General may order restitution for economic loss 
suffered by pharmacies or patients for violations 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 Statutes. 
C.  Notwithstanding whether the license of a PBM has been 
issued, suspended, revoked, surrendered or lapsed by operation of   
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law, the Attorney General is hereby authorized to enforce the 
provisions of the Patient ’s Right to Pharmacy Choice Act and impose 
any penalty or remedy authorized under the act against a PBM under 
investigation for or charged with a violation of the Patient ’s Right 
to Pharmacy Choice Act, the Pharmacy Audit Integrity Act, the 
provisions of Sections 357 through 360 of Title 59 of the Oklahom a 
Statutes or any provision of the insurance laws of this state. 
D.  Each day that a PBM conducts busines s in this state without 
a license from the Insurance Department shall be deemed a violation 
of the Patient’s Right to Pharmacy Choice Act. 
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 Attorne y General may deem convenient. 
3.  The Attorney General, upon written request from a PBM 
affected by the hearing, shall cause a full stenographic record of 
the proceedings to be made by a competent court reporter.  This 
record shall be at the expense of th e PBM. The Attorney General may 
request a court reporter without a request from a PBM, which shall 
be at the cost of the Office of the Attorney General unless the 
Attorney General is the prevailing party in litigation following a 
final order.   
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4.  The ordinary fees and costs of the hearing examiner 
appointed pursuant to Section 319 of this title may be assess ed by 
the hearing examiner against the respondent unless the respondent is 
the prevailing party. 
F.  1. Any PBM whose license has been censured, suspe nded, 
revoked, or denied renewal, or who has had monetary damages or 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 . 
2.  Any monetary damages, administrative fines, or court costs 
owed by the PBM resulting from a ny appeal of a final order of the 
Attorney General pursuant to Section 318 of Title 75 of the Oklahoma 
Statutes shall be placed in a holding account with the Office of the 
Attorney General within thirty (30) days of the issuance of the 
final order. 
3.  If the PBM prevails on every issue raised in the appeal of a 
final order of the Attorney General pursuant to Section 318 of Title 
75 of the Oklahoma Statutes, the Attorney General shall refund all 
monies related to the appeal at issue and paid by the PBM within 
sixty (60) days of the expiration of the appeal deadlines for the 
Office of the Attorney General . 
4.  Any instance in which a PBM fails to pay monies owed as a 
result of a final order or an appeal of a final order within thirty 
(30) days of the issuance of the final order shall be considered a   
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separate violation of the provisions of Sections 6958 through 6969 
of this title and Sections 356 through 356.5 and 357 throug h 360 of 
Title 59 of the Oklahoma Statutes . 
5.  The PBM shall be assessed a fine of Ten Thousand Dollars 
($10,000.00) per calendar day for each day the PBM fails to comply 
with this section. 
6.  A PBM that fails to comply with this section for more than 
six (6) months shall have its license to operate in this state 
suspended for the duration of time it takes the PBM to comply with 
this section. 
G.  If the Attorney General determines, based upon an 
investigation of complaints, that a PBM has engaged in viola tions of 
the provisions of the Patient ’s Right to Pharmacy Choice Act, the 
Pharmacy Audit Integrity Act, and Sections 357 through 360 of Title 
59 of the Oklahoma Statutes with such frequency as to indicate a 
general business practice, and that the PBM shou ld be subjected to 
closer supervision with respect to those practices, the Attorney 
General may require the PBM to file a report at any periodic 
interval the Attorney General deems necessary. 
H.  1.  The Attorney General shall have the authority to collect 
all fines, penalties, restitution, and interest thereon pursuant to 
the provisions of the Patient ’s Right to Pharmacy Choice Act, the 
Pharmacy Audit Integrity Act, and the provisions of Sections 357 
through 360 of Title 59 of the Oklahoma Statutes, or any other   
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charge, cause of action, prelitigation settlement, or other 
settlement that requires the recovery of money as a result of 
violations of the Patient ’s Right to Pharmacy Choice Act.  Funds 
collected by the Attorney General pursuant to the Patient ’s Right to 
Pharmacy Choice Act, the Pharmacy Audit Integrity Act, and Sections 
357 through 360 of Title 59 of the Oklahoma Statutes shall be 
deposited into the Attorney General ’s Pharmacy Benefits Manager 
Enforcement Revolving Fund created in Section 5 of this act 6966.2 
of this title. 
2.  Costs of investigation, litigation, attorney fees, and other 
expenses incurred shall be retained by the Office of the Attorney 
General.  Remaining funds shall be distributed to pharmacists, 
patients, or other injured parties as determined by the Attorney 
General. 
3.  The Attorney General shall promulgate rules for the 
distribution of funds pursuant to this subsection. 
SECTION 5.  This act shall become effective November 1, 2025. 
 
COMMITTEE REPORT BY: COMMITTEE ON HEALTH AND HUMAN SERVICES, dated 
04/15/2025 – DO PASS.