S. 6738--A 2
(B) FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING WORDS OR PHRASES
SHALL HAVE THE FOLLOWING MEANINGS, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(1) "MANUFACTURER" MEANS AN ENTITY ENGAGED IN THE MANUFACTURE OF
PRESCRIPTION DRUGS SOLD IN THIS STATE.
(2) "PHARMACY SERVICES ADMINISTRATIVE ORGANIZATION" OR "PSAO" MEANS AN
ENTITY THAT IS OPERATING IN THIS STATE AND THAT CONTRACTS WITH A PHARMA-
CY FOR THE PURPOSE OF CONDUCTING BUSINESS ON THE PHARMACY'S BEHALF WITH
WHOLESALERS, DISTRIBUTORS, HEALTH PLANS OR PHARMACY BENEFIT MANAGERS.
(3) "REBATE AGGREGATOR" MEANS AN ENTITY THAT PROVIDES FORMULARY REBATE
ADMINISTRATIVE SERVICES FOR PHARMACY BENEFIT MANAGERS OR OTHERWISE NEGO-
TIATES REBATES WITH MANUFACTURERS ON BEHALF OF PHARMACY BENEFIT MANAG-
ERS.
(4) "SWITCH COMPANY" MEANS AN ENTITY THAT ACTS AS AN INTERMEDIARY
BETWEEN A PHARMACY AND A PHARMACY BENEFIT MANAGER OR HEALTH PLAN FOR THE
PURPOSE OF ROUTING INSURANCE CLAIMS DATA TO OR FROM A PHARMACY.
§ 3002. ELECTRONIC FILING REQUIREMENT. NOTWITHSTANDING ANY LAW TO THE
CONTRARY, ANY FILING OR SUBMISSION REQUIRED UNDER THIS ARTICLE SHALL BE
MADE ELECTRONICALLY UNLESS THE ENTITY REQUIRED TO MAKE SUCH FILING OR
SUBMISSION DEMONSTRATES UNDUE HARDSHIP, IMPRACTICABILITY OR GOOD CAUSE
AS REQUIRED BY SECTION THREE HUNDRED SIXTEEN OF THIS CHAPTER.
§ 3003. SPECIAL REPORTS AND OTHER POWERS. (A) THE SUPERINTENDENT MAY
ADDRESS TO ANY ENTITY REQUIRED TO REGISTER OR REPORT INFORMATION UNDER
THIS ARTICLE, OR ITS OFFICERS, OR ANY AGENT OR EMPLOYEE THEREOF ANY
INQUIRY IN RELATION TO ITS BUSINESS OR ANY MATTER CONNECTED THEREWITH.
EVERY INDIVIDUAL OR ENTITY SO ADDRESSED SHALL REPLY IN WRITING TO SUCH
INQUIRY PROMPTLY AND TRUTHFULLY, AND SUCH REPLY SHALL BE, IF REQUIRED BY
THE SUPERINTENDENT, SUBSCRIBED BY SUCH INDIVIDUAL, OR BY SUCH OFFICER OR
OFFICERS OF THE ENTITY, OR BY SUCH AGENT OR EMPLOYEE OF THE ENTITY AS
THE SUPERINTENDENT SHALL DESIGNATE, AND AFFIRMED BY THEM AS TRUE UNDER
THE PENALTIES OF PERJURY.
(B) IN THE EVENT ANY INDIVIDUAL OR ENTITY DOES NOT SUBMIT A GOOD FAITH
RESPONSE TO AN INQUIRY FROM THE SUPERINTENDENT PURSUANT TO SUBSECTION
(A) OF THIS SECTION WITHIN A TIME PERIOD SPECIFIED BY THE SUPERINTENDENT
OF NOT LESS THAN FIFTEEN BUSINESS DAYS, THE SUPERINTENDENT IS AUTHORIZED
TO LEVY A CIVIL PENALTY, AFTER NOTICE AND HEARING, AGAINST SUCH PERSON
NOT TO EXCEED ONE THOUSAND DOLLARS PER DAY FOR EACH DAY BEYOND THE DATE
SPECIFIED BY THE SUPERINTENDENT FOR RESPONSE TO THE INQUIRY.
(C) IN ADDITION TO ALL OTHER POWERS GRANTED BY LAW, THE SUPERINTENDENT
IS HEREBY EMPOWERED TO ORDER ANY PERSON OR ENTITY REQUIRED TO REGISTER
OR REPORT INFORMATION UNDER THIS ARTICLE TO CEASE AND DESIST FROM
VIOLATIONS OF THIS ARTICLE AND, FOLLOWING ISSUANCE OF SUCH AN ORDER, MAY
BRING AND MAINTAIN AN ACTION IN ANY COURT OF COMPETENT JURISDICTION FOR
AN INJUNCTION OR OTHER APPROPRIATE RELIEF TO ENJOIN THREATENED OR EXIST-
ING VIOLATIONS OF THIS ARTICLE, OR OF THE SUPERINTENDENT'S ORDERS OR
REGULATIONS. SUCH ACTION MAY SPECIFICALLY SEEK RESTITUTION ON BEHALF OF
PERSONS AGGRIEVED BY A VIOLATION OF THIS ARTICLE OR ORDERS OR REGU-
LATIONS OF THE SUPERINTENDENT.
(D) IN ADDITION TO ALL OTHER POWERS GRANTED BY LAW, WHENEVER IT SHALL
APPEAR TO THE SUPERINTENDENT, EITHER UPON COMPLAINT OR OTHERWISE, THAT
IN THE COURSE OF ITS BUSINESS WITHIN OR FROM THIS STATE THAT ANY ENTITY
SHALL HAVE EMPLOYED, OR EMPLOYS, OR IS ABOUT TO EMPLOY ANY BUSINESS
PRACTICE OR SHALL HAVE PERFORMED, OR IS PERFORMING, OR IS ABOUT TO
PERFORM ANY ACT IN VIOLATION OF THIS ARTICLE OR ORDERS OR REGULATIONS OF
THE SUPERINTENDENT, OR THE SUPERINTENDENT BELIEVES IT TO BE IN THE
PUBLIC INTEREST THAT AN INVESTIGATION BE MADE, THE SUPERINTENDENT MAY,
S. 6738--A 3
IN THE SUPERINTENDENT'S DISCRETION, EITHER REQUIRE OR PERMIT SUCH ENTITY
OR ANY AGENT OR EMPLOYEE THEREOF, TO FILE WITH THE DEPARTMENT A STATE-
MENT IN WRITING UNDER OATH OR OTHERWISE AS TO ALL THE FACTS AND CIRCUM-
STANCES CONCERNING THE SUBJECT MATTER THAT THE SUPERINTENDENT BELIEVES
IS IN THE PUBLIC INTEREST TO INVESTIGATE AND FOR SUCH PURPOSE MAY
PRESCRIBE FORMS UPON WHICH SUCH STATEMENTS SHALL BE MADE. THE SUPER-
INTENDENT MAY ALSO REQUIRE SUCH OTHER DATA AND INFORMATION AS THE SUPER-
INTENDENT MAY DEEM RELEVANT AND MAY MAKE SUCH SPECIAL AND INDEPENDENT
INVESTIGATIONS AS THE SUPERINTENDENT MAY DEEM NECESSARY IN CONNECTION
WITH THE MATTER. IT SHALL BE THE DUTY OF ALL PUBLIC OFFICERS, THEIR
DEPUTIES, ASSISTANTS, SUBORDINATES, CLERKS OR EMPLOYEES AND ALL OTHER
PERSONS TO RENDER AND FURNISH TO THE SUPERINTENDENT, WHEN REQUESTED IN
CONNECTION WITH AN INVESTIGATION UNDER THIS SUBSECTION, ALL INFORMATION
AND ASSISTANCE IN THEIR POSSESSION OR WITHIN THEIR POWER.
(E) ANY ENTITY WHO VIOLATES AN ORDER UNDER SUBSECTION (C) OR (D) OF
THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY, AFTER NOTICE AND A
HEARING, OF NOT MORE THAN TEN THOUSAND DOLLARS PER ACT IN VIOLATION, IN
ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW.
(F) ANY COMMUNICATIONS OR DOCUMENTS SENT OR RECEIVED IN CONNECTION
WITH AN INVESTIGATION UNDER THIS ARTICLE AND ANY MATERIALS REFERRING TO
SUCH INFORMATION IN THE POSSESSION OF THE SUPERINTENDENT SHALL BE CONFI-
DENTIAL AND NOT SUBJECT TO DISCLOSURE. NOTWITHSTANDING THE FOREGOING,
THE SUPERINTENDENT MAY RELEASE SUCH CONFIDENTIAL COMMUNICATIONS OR DOCU-
MENTS TO THE EXTENT NECESSARY TO ADDRESS CRIMINAL OR OTHER UNLAWFUL
BEHAVIOR. THIS SUBSECTION SHALL NOT APPLY TO INFORMATION, DOCUMENTS AND
MATERIALS IN THE POSSESSION AND UNDER THE CONTROL OF AN ENTITY OTHER
THAN THE SUPERINTENDENT.
§ 3004. REGISTRATION OF PHARMACY SERVICES ADMINISTRATIVE ORGANIZA-
TIONS. (A) NO PSAO SHALL OPERATE IN THIS STATE AFTER MARCH THIRTY-FIRST,
TWO THOUSAND TWENTY-FIVE WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
(B) A PSAO SEEKING REGISTRATION SHALL FILE, IN A FORM AND MANNER
DETERMINED BY THE SUPERINTENDENT, INFORMATION THAT INCLUDES AT A MINI-
MUM:
(1) THE LEGAL NAME OF THE ENTITY;
(2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
(3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
(4) THE PHARMACIES LOCATED WITHIN THIS STATE WITH WHICH THE ENTITY
PROVIDES SERVICES;
(5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
(6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
(7) AN AGENT FOR SERVICE OF PROCESS;
(8) A SET OF AUDITED FINANCIALS FOR THE PRIOR FISCAL YEAR; AND
(9) SUCH OTHER INFORMATION AS THE SUPERINTENDENT SHALL REQUIRE.
(C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF THE SUPER-
INTENDENT DETERMINES THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED
IN A SATISFACTORY FORM AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE
REGISTRATION FEE OF FIVE THOUSAND DOLLARS. NOTWITHSTANDING THE REQUIRE-
MENTS OF THIS SUBSECTION THE SUPERINTENDENT MAY, IN HIS OR HER SOLE
DISCRETION AND UPON GOOD CAUSE SHOWN, REDUCE THE REGISTRATION FEE FOR
ANY PSAO TO AN AMOUNT NOT LESS THAN ONE-TENTH OF ONE PERCENT OF THE FEES
EARNED BY THE PSAO FROM ALL PHARMACIES LOCATED IN NEW YORK IN THE PRIOR
CALENDAR YEAR.
(D) IF ANY OF THE INFORMATION CONTAINED IN THE REGISTRATION SHALL
CHANGE, THE PSAO SHALL NOTIFY THE DEPARTMENT OF SUCH CHANGE IN A FORM
AND MANNER PRESCRIBED BY THE SUPERINTENDENT FOR SUCH PURPOSE WITHIN
TWENTY-ONE DAYS OF THE CHANGE. THE REQUIREMENT TO UPDATE SHALL INCLUDE
S. 6738--A 4
THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR ANY
CHANGE OTHER THAN NEW AUDITED FINANCIALS, THE FILING SHALL NOT BE DEEMED
COMPLETE UNLESS ACCOMPANIED BY A PAYMENT OF A FEE OF FIFTY DOLLARS.
(E) EVERY PSAO REGISTRATION ISSUED PURSUANT TO THIS SECTION SHALL
EXPIRE TWELVE MONTHS AFTER THE DATE OF ISSUE. A PSAO MAY RENEW ITS
REGISTRATION FOR ANOTHER TWELVE MONTHS UPON THE FILING OF AN APPLICATION
IN CONFORMITY WITH THIS SECTION.
(F) BEFORE A PSAO REGISTRATION SHALL BE RENEWED, THE PSAO SHALL FILE
AN APPLICATION FOR RENEWAL IN SUCH FORM AS THE SUPERINTENDENT PRESCRIBES
AND PAY A FEE OF FIVE THOUSAND DOLLARS. NOTWITHSTANDING THE REQUIREMENTS
OF THIS SUBSECTION, THE SUPERINTENDENT MAY, IN HIS OR HER SOLE
DISCRETION AND UPON GOOD CAUSE SHOWN, REDUCE THE REGISTRATION FEE FOR
ANY PSAO TO AN AMOUNT NOT LESS THAN ONE-TENTH OF ONE PERCENT OF THE FEES
EARNED BY THE PSAO FROM ALL PHARMACIES LOCATED IN NEW YORK IN THE PRIOR
CALENDAR YEAR.
(G) IF A PSAO FILES A RENEWAL APPLICATION WITH THE SUPERINTENDENT AT
LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN THE REGISTRATION SOUGHT TO
BE RENEWED SHALL CONTINUE IN FULL FORCE AND EFFECT EITHER UNTIL THE
ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL REGISTRATION APPLIED FOR
OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT SHALL HAVE REFUSED TO ISSUE
SUCH RENEWAL REGISTRATION AND GIVEN NOTICE OF SUCH REFUSAL TO THE APPLI-
CANT, OTHERWISE THE PSAO REGISTRATION SHALL EXPIRE AND THE REGISTRANT
SHALL HAVE NO EXPECTATION OF RENEWAL.
§ 3005. REQUIRED DISCLOSURES BY PHARMACY SERVICES ADMINISTRATIVE
ORGANIZATIONS. (A) (1) EACH PSAO SHALL AT THE TIME OF REGISTRATION
PURSUANT TO SECTION THREE THOUSAND FOUR OF THIS ARTICLE DISCLOSE TO THE
DEPARTMENT THE EXTENT OF ANY OWNERSHIP OR CONTROL OF THE PSAO OR BY THE
PSAO OF ANY PARENT COMPANY, SUBSIDIARY, OR AFFILIATE THAT:
(A) PROVIDES PHARMACY SERVICES;
(B) PROVIDES PRESCRIPTION DRUG OR DEVICE SERVICES; OR
(C) MANUFACTURES, SELLS, OR DISTRIBUTES PRESCRIPTION DRUGS, BIOLOG-
ICALS, OR MEDICAL DEVICES.
(2) A PSAO SHALL FURNISH A COPY OF THE DISCLOSURE MADE AT THE TIME OF
REGISTRATION TO ALL PHARMACIES LOCATED IN THIS STATE WITH WHICH IT HAS A
CONTRACT IN PLACE AT THE TIME OF THE REGISTRATION. A PSAO SHALL NOT
COLLECT ANY FEE FOR ANY SERVICES PROVIDED TO A PHARMACY FOR ANY PERIOD
BEGINNING FIVE DAYS AFTER THE FILING OF A REGISTRATION WITH THE DEPART-
MENT UNTIL SUCH DISCLOSURE IS SENT TO THE PHARMACY.
(3) NOT LATER THAN APRIL FIRST, TWO THOUSAND TWENTY-SIX, THE DEPART-
MENT SHALL PUBLISH ALL DISCLOSURES RECEIVED UNDER THIS SECTION ON A
PUBLICLY ACCESSIBLE ONLINE DATABASE, WHICH SHALL BE SEARCHABLE AT LEAST
BY PSAO NAME. ALL DISCLOSURES SHALL BE POSTED NOT LATER THAN TEN BUSI-
NESS DAYS AFTER A REGISTRATION IS ACCEPTED AND SHALL REMAIN ON THE DATA-
BASE FOR THE DURATION OF THE REGISTRATION OF THE PSAO.
(B) (1) PRIOR TO ENTERING INTO ANY CONTRACT WITH ANY PHARMACY LOCATED
IN THIS STATE, INCLUDING A CONTRACT WITH A GROUP OF PHARMACIES AT LEAST
ONE OF WHICH IS IN THIS STATE, A PSAO SHALL FURNISH TO THE PHARMACY A
WRITTEN DISCLOSURE OF THE INFORMATION REQUIRED TO BE DISCLOSED IN
SUBSECTION (A) OF THIS SECTION. NO CONTRACT WITH A PHARMACY SHALL BE
ENFORCEABLE AGAINST THE PHARMACY BY A PSAO UNLESS SUCH PSAO MAKES SUCH
DISCLOSURE PRIOR TO THE AGREEMENT. IN ADDITION TO ANY OTHER POWER
CONFERRED BY LAW, THE SUPERINTENDENT MAY PRESCRIBE THE FORM AND MANNER
OF SUCH DISCLOSURES.
(2) A PSAO THAT OWNS, IS OWNED BY, IN WHOLE OR IN PART, OR CONTROLS
ANY ENTITY THAT MANUFACTURES, SELLS, OR DISTRIBUTES PRESCRIPTION DRUGS,
BIOLOGICALS, OR MEDICAL DEVICES SHALL NOT, AS A CONDITION OF ENTERING
S. 6738--A 5
INTO A CONTRACT WITH A PHARMACY, REQUIRE THAT THE PHARMACY PURCHASE ANY
DRUGS OR MEDICAL DEVICES FROM AN ENTITY WITH WHICH THE PSAO HAS A FINAN-
CIAL INTEREST, OR AN ENTITY WITH AN OWNERSHIP INTEREST IN THE PSAO.
(3) NO PSAO SHALL ENTER INTO A CONTRACT WITH A PHARMACY IN THIS STATE
UNLESS SUCH CONTRACT SHALL PROVIDE THAT ALL REMITTANCES FOR CLAIMS
SUBMITTED BY A PHARMACY BENEFIT MANAGER OR THIRD-PARTY PAYER ON BEHALF
OF A PHARMACY TO THE PSAO SHALL BE PASSED THROUGH BY THE PSAO TO THE
PHARMACY WITHIN A REASONABLE AMOUNT OF TIME, ESTABLISHED IN THE
CONTRACT, AFTER RECEIPT OF THE REMITTANCE BY THE PSAO FROM THE PHARMACY
BENEFIT MANAGER OR THIRD-PARTY PAYER.
(C) (1) A PSAO THAT PROVIDES, ACCEPTS, OR PROCESSES A DISCOUNT,
CONCESSION, OR PRODUCT VOUCHER, TO REDUCE, DIRECTLY OR INDIRECTLY, A
COVERED INDIVIDUAL'S OUT-OF-POCKET EXPENSE FOR THE ORDER, DISPENSING,
SUBSTITUTION, SALE, OR PURCHASE OF A PRESCRIPTION DRUG SHALL MAKE AVAIL-
ABLE TO EACH PHARMACY IN THIS STATE THAT IT CONTRACTS WITH OR WHICH IT
CONTRACTED WITH IN THE PRIOR CALENDAR YEAR, AN ANNUAL REPORT THAT
INCLUDES:
(A) AN AGGREGATED TOTAL OF ALL SUCH TRANSACTIONS, BY THE PHARMACY; AND
(B) AN AGGREGATED TOTAL OF ANY PAYMENTS RECEIVED BY THE PSAO ITSELF
FOR PROVIDING, PROCESSING, OR ACCEPTING ANY DISCOUNT, CONCESSION, OR
PRODUCT VOUCHER ON BEHALF OF A PHARMACY.
(2) A PHARMACY IN THIS STATE THAT IS A PARTY TO A CONTRACT WITH A PSAO
SHALL HAVE A RIGHT TO AN ACCOUNTING OF THE FUNDS RECEIVED BY THE PSAO
FOR GOODS OR SERVICES PROVIDED BY THE PHARMACY TO PATIENTS AND CUSTOM-
ERS.
§ 3006. REGISTRATION OF PHARMACY SWITCH COMPANIES. (A) NO SWITCH
COMPANY MAY DO BUSINESS IN THIS STATE AFTER JUNE THIRTIETH, TWO THOUSAND
TWENTY-FIVE WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
(B) A SWITCH COMPANY SEEKING REGISTRATION SHALL FILE WITH THE DEPART-
MENT, IN A FORM AND MANNER DETERMINED BY THE SUPERINTENDENT, INFORMATION
INCLUDING BUT NOT LIMITED TO:
(1) THE LEGAL NAME OF THE ENTITY;
(2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
(3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
(4) THE PHARMACIES LOCATED WITHIN THIS STATE AND THE PHARMACY BENEFIT
MANAGERS LICENSED IN THIS STATE WITH WHICH THE ENTITY PROVIDES SERVICES;
(5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
(6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
(7) AN AGENT FOR SERVICE OF PROCESS;
(8) A SET OF AUDITED FINANCIALS FOR THE PRIOR FISCAL YEAR; AND
(9) SUCH OTHER INFORMATION OR DOCUMENTS AS THE SUPERINTENDENT SHALL
REQUIRE.
(C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF HE OR SHE
DEEMS THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED IN A SATISFAC-
TORY FORM AND MANNER AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE REGIS-
TRATION FEE OF ONE THOUSAND DOLLARS.
(D) IF ANY OF THE INFORMATION CONTAINED IN THE REGISTRATION SHALL
CHANGE, THE SWITCH COMPANY SHALL NOTIFY THE DEPARTMENT OF THE CHANGE IN
A FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT FOR SUCH PURPOSE
WITHIN TWENTY-ONE DAYS OF THE CHANGE. SUCH REQUIREMENT TO UPDATE SHALL
INCLUDE THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR
ANY CHANGE OTHER THAN NEW AUDITED FINANCIALS, THE FILING SHALL NOT BE
DEEMED COMPLETE UNLESS ACCOMPANIED BY A PAYMENT OF A FEE OF FIFTY
DOLLARS.
(E) EVERY PHARMACY SWITCH COMPANY'S REGISTRATION SHALL EXPIRE TWELVE
MONTHS AFTER THE DATE OF ISSUE. EVERY REGISTRATION ISSUED PURSUANT TO
S. 6738--A 6
THIS SECTION MAY BE RENEWED FOR THE ENSUING PERIOD OF TWELVE MONTHS UPON
THE FILING OF AN APPLICATION IN CONFORMITY WITH THIS SECTION.
(F) BEFORE A PHARMACY SWITCH COMPANY'S REGISTRATION SHALL BE RENEWED,
THE PHARMACY SWITCH COMPANY SHALL PROPERLY FILE IN THE OFFICE OF THE
SUPERINTENDENT AN APPLICATION FOR RENEWAL IN SUCH FORM AS THE SUPER-
INTENDENT PRESCRIBES AND PAY A FEE OF ONE THOUSAND DOLLARS.
(G) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
WITH THE SUPERINTENDENT AT LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN
THE REGISTRATION SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
REGISTRATION APPLIED FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND GIVEN NOTICE
OF SUCH REFUSAL TO THE APPLICANT, OTHERWISE THE REGISTRATION SHALL
EXPIRE AND THE REGISTRANT SHALL HAVE NO EXPECTATION OF RENEWAL.
§ 3007. REQUIRED DISCLOSURES BY PHARMACY SWITCH COMPANIES. (A) EACH
SWITCH COMPANY SHALL ANNUALLY DISCLOSE TO THE DEPARTMENT, IN A FORM AND
MANNER PRESCRIBED BY THE SUPERINTENDENT, SUCH INFORMATION AS THE SUPER-
INTENDENT DEEMS NECESSARY FOR THE PROPER SUPERVISION OF THE INDUSTRY.
SUCH INFORMATION SHALL INCLUDE:
(1) A LIST OF SERVICES THE SWITCH COMPANY PROVIDES AND THE INDUSTRIES
TO WHICH THEY ARE PROVIDED;
(2) INFORMATION ON ELECTRONIC VOUCHER SERVICES PROVIDED BY THE SWITCH
COMPANY, INCLUDING:
(A) A LIST OF MANUFACTURERS THAT THE SWITCH COMPANY HAS CONTRACTS WITH
OR FOR WHICH IT TRANSMITS ELECTRONIC VOUCHERS;
(B) A LIST OF MEDICATIONS AND THE NATIONAL DRUG CODES (NDCS) FOR WHICH
THE SWITCH COMPANY MAY APPLY ELECTRONIC VOUCHERS; AND
(C) THE TOTAL AMOUNT OF MONEY COLLECTED FROM MANUFACTURERS RELATED TO
TRANSMISSION OF ELECTRONIC VOUCHERS; AND
(3) THE NUMBER OF TRANSACTIONS PROCESSED IN THIS STATE AND THE TOTAL
AMOUNT OF REVENUE ATTRIBUTABLE TO THOSE TRANSACTIONS.
(B) A SWITCH COMPANY SHALL DISCLOSE TO EACH PHARMACY BENEFIT MANAGER
WITH WHICH IT DOES BUSINESS ANY INSTANCE IN WHICH AN ELECTRONIC VOUCHER
WAS APPLIED IN THE COURSE OF ROUTING THE CLAIM.
§ 3008. REGISTRATION OF REBATE AGGREGATORS. (A) NO REBATE AGGREGATOR
MAY DO BUSINESS IN THIS STATE AFTER SEPTEMBER THIRTIETH, TWO THOUSAND
TWENTY-FIVE WITHOUT FIRST REGISTERING WITH THE DEPARTMENT.
(B) A REBATE AGGREGATOR SEEKING REGISTRATION SHALL FILE, IN A FORM AND
MANNER DETERMINED BY THE SUPERINTENDENT, INFORMATION INCLUDING BUT NOT
LIMITED TO:
(1) THE LEGAL NAME OF THE ENTITY;
(2) ANY TRADE OR OTHER NAMES USED BY THE ENTITY;
(3) THE ORGANIZATIONAL STRUCTURE OF THE ENTITY;
(4) THE HEALTH PLANS AND THE PHARMACY BENEFIT MANAGERS LICENSED IN
THIS STATE FOR WHICH THE ENTITY PROVIDES SERVICES;
(5) THE PERSONS WHO EXERCISE CONTROL OF THE ENTITY;
(6) A PRIMARY POINT OF CONTACT FOR THE ENTITY;
(7) AN AGENT FOR SERVICE OF PROCESS;
(8) A SET OF AUDITED FINANCIALS FOR THE PRIOR FISCAL YEAR; AND
(9) SUCH OTHER INFORMATION OR DOCUMENTS AS THE SUPERINTENDENT SHALL
REQUIRE.
(C) THE SUPERINTENDENT SHALL ACCEPT A REGISTRATION ONLY IF HE OR SHE
DEEMS THAT ALL THE REQUIRED INFORMATION HAS BEEN PROVIDED IN A SATISFAC-
TORY FORM AND MANNER AND HAS RECEIVED PAYMENT OF A NONREFUNDABLE REGIS-
TRATION FEE OF ONE THOUSAND DOLLARS.
S. 6738--A 7
(D) IF ANY OF THE INFORMATION CONTAINED IN THE REGISTRATION SHALL
CHANGE THE REBATE AGGREGATOR SHALL NOTIFY THE DEPARTMENT OF SUCH CHANGE
IN A FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT FOR SUCH PURPOSE
WITHIN TWENTY-ONE DAYS OF THE CHANGE. SUCH REQUIREMENT TO UPDATE SHALL
INCLUDE THE FILING OF A NEW SET OF AUDITED FINANCIALS UPON ADOPTION. FOR
ANY CHANGE OTHER THAN NEW AUDITED FINANCIALS, THE FILING SHALL NOT BE
DEEMED COMPLETE UNLESS ACCOMPANIED BY A PAYMENT OF A FEE OF FIFTY
DOLLARS.
(E) EVERY REBATE AGGREGATOR'S REGISTRATION SHALL EXPIRE TWELVE MONTHS
AFTER THE DATE OF ISSUE. EVERY REGISTRATION ISSUED PURSUANT TO THIS
SECTION MAY BE RENEWED FOR THE ENSUING PERIOD OF TWELVE MONTHS UPON THE
FILING OF AN APPLICATION IN CONFORMITY WITH THIS SECTION.
(F) BEFORE A REBATE AGGREGATOR'S REGISTRATION SHALL BE RENEWED, THE
REBATE AGGREGATOR SHALL PROPERLY FILE IN THE OFFICE OF THE SUPERINTEN-
DENT AN APPLICATION FOR RENEWAL IN SUCH FORM AS THE SUPERINTENDENT
PRESCRIBES AND PAY A FEE OF ONE THOUSAND DOLLARS.
(G) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
WITH THE SUPERINTENDENT AT LEAST ONE MONTH BEFORE ITS EXPIRATION, THEN
THE REGISTRATION SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
REGISTRATION APPLIED FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND GIVEN NOTICE
OF SUCH REFUSAL TO THE APPLICANT, OTHERWISE THE REGISTRATION SHALL
EXPIRE AND THE REGISTRANT SHALL HAVE NO EXPECTATION OF RENEWAL.
§ 3009. REQUIRED DISCLOSURES BY REBATE AGGREGATORS. (A) EACH REBATE
AGGREGATOR THAT HAS A CONTRACT OR ARRANGEMENT WITH A PHARMACY BENEFIT
MANAGER SERVING A HEALTH PLAN SHALL, ON AN ANNUAL BASIS, DISCLOSE IN
WRITING TO THE HEALTH PLAN THE FOLLOWING:
(1) FEE STRUCTURE PROVISIONS OF ANY CONTRACT OR ARRANGEMENT BETWEEN
THE REBATE AGGREGATOR AND PHARMACY BENEFIT MANAGER OR DRUG MANUFACTURER,
INCLUDING:
(A) FEES COLLECTED FOR AGGREGATING REBATES DUE TO THE HEALTH PLAN; AND
(B) SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE BY REGU-
LATION; AND
(2) QUANTIFICATION OF INFLATIONARY PAYMENTS, CREDITS, GRANTS,
REIMBURSEMENTS, OTHER FINANCIAL OR OTHER REIMBURSEMENTS, INCENTIVES,
INDUCEMENTS, REFUNDS OR OTHER BENEFITS RECEIVED BY THE REBATE AGGREGATOR
FROM THE DRUG MANUFACTURER AND RETAINED BY THE REBATE AGGREGATOR, WHETH-
ER REFERRED TO AS A REBATE, A DISCOUNT, OR OTHERWISE.
(B) (1) EACH REBATE AGGREGATOR SHALL, AT THE TIME OF REGISTRATION,
DISCLOSE TO THE DEPARTMENT THE EXTENT OF ANY OWNERSHIP OR CONTROL OF THE
REBATE AGGREGATOR OR BY THE REBATE AGGREGATOR OF ANY PARENT COMPANY,
SUBSIDIARY, OR OTHER AFFILIATED ORGANIZATION THAT PROVIDES PHARMACY
BENEFIT MANAGEMENT SERVICES.
(2) EACH REBATE AGGREGATOR SHALL ON AN ANNUAL BASIS DISCLOSE TO THE
DEPARTMENT THE INFORMATION REQUESTED BY THE SUPERINTENDENT, INCLUDING:
(A) ANY PAYMENTS MADE TO A REBATE AGGREGATOR BY A DRUG MANUFACTURER
RELATING TO A DRUG'S UTILIZATION, INCLUDING INFLATIONARY PAYMENTS, CRED-
ITS, GRANTS, REIMBURSEMENTS, OTHER FINANCIAL OR OTHER REIMBURSEMENTS,
INCENTIVES, INDUCEMENTS, REFUNDS OR OTHER BENEFITS RECEIVED BY THE
REBATE AGGREGATOR, WHETHER REFERRED TO AS A REBATE, A DISCOUNT, OR
OTHERWISE;
(B) ANY PAYMENTS MADE, INCLUDING THOSE DESCRIBED IN SUBPARAGRAPH (A)
OF THIS PARAGRAPH AND SUBSEQUENTLY RETAINED BY A REBATE AGGREGATOR;
(C) ANY FEES CHARGED BY THE REBATE AGGREGATOR TO THE PHARMACY BENEFIT
MANAGER OR DRUG MANUFACTURER RELATING TO A DRUG'S UTILIZATION;
S. 6738--A 8
(D) ANY PAYMENTS MADE TO A REBATE AGGREGATOR FROM A PROGRAM ADMINIS-
TERED BY A DRUG MANUFACTURER FOR THE PURPOSE OF ASSISTING PATIENTS WITH
THE COST OF PRESCRIPTION DRUGS, INCLUDING COPAYMENT ASSISTANCE PROGRAMS,
DISCOUNT CARDS, AND COUPONS; AND
(E) THE TERMS AND CONDITIONS OF ANY CONTRACT OR ARRANGEMENT BETWEEN
THE REBATE AGGREGATOR AND A PHARMACY BENEFIT MANAGER OR DRUG MANUFACTUR-
ER.
§ 3010. DEPOSIT OF PENALTIES AND FEES. PENALTIES AND FEES COLLECTED
PURSUANT TO THIS ARTICLE SHALL BE DEPOSITED INTO THE PHARMACY BENEFIT
MANAGER REGULATORY FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-OO
OF THE STATE FINANCE LAW.
§ 3. Subdivision 3 of section 99-oo of the state finance law, as added
by chapter 128 of the laws of 2022, is amended to read as follows:
3. Such fund shall consist of money received by the state as fees
under [article] ARTICLES twenty-nine AND THIRTY of the insurance law or
penalties ordered under [article] ARTICLES twenty-nine AND THIRTY of the
insurance law and all other monies appropriated, credited, or trans-
ferred thereto from any other fund or source pursuant to law. All monies
shall remain in such fund unless and until directed by statute or appro-
priation.
§ 4. This act shall take effect on the one hundred fiftieth day after
it shall have become a law.
