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sSB494 / File No. 483 1
General Assembly File No. 483
February Session, 2026 Substitute Senate Bill No. 494
Senate, April 7, 2026
The Committee on Human Services reported through SEN.
LESSER of the 9th Dist., Chairperson of the Committee on the
part of the Senate, that the substitute bill ought to pass.
AN ACT CONCERNING PRESCRIPTION DRUG SHORTAGES,
PRESCRIPTION DRUG REBATES AND PROHIBITED
MANUFACTURER PRACTICES CONCERNING CERTAIN
PRESCRIPTION DRUGS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 28-33 of the 2026 supplement to the general statutes 1
is repealed and the following is substituted in lieu thereof (Effective from 2
passage): 3
(a) There is established a task force to study emergency preparedness 4
and mitigation strategies for prescription drug shortages. The task force 5
shall identify prescription drugs at risk of shortage in this state and 6
make recommendations pursuant to subsection (g) of this section. 7
(b) The task force shall consist of the following members: 8
(1) Two appointed by the speaker of the House of Representatives, 9
one of whom has expertise in prescription drug supply chains and one 10
of whom has expertise in federal law concerning prescription drug 11
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shortages; 12
(2) Two appointed by the president pro tempore of the Senate, one of 13
whom represents hospitals and one of whom represents health care 14
providers who treat patients with rare diseases; 15
(3) One appointed by the majority leader of the House of 16
Representatives, who represents one of the two federally recognized 17
Indian tribes in the state; 18
(4) One appointed by the majority leader of the Senate, who 19
represents one of the two federally recognized Indian tribes in the state; 20
(5) One appointed by the minority leader of the House of 21
Representatives, who represents health insurance companies; 22
(6) One appointed by the minority leader of the Senate, who is a 23
representative of the Connecticut Health Insurance Exchange; 24
(7) The Commissioner of Health Strategy, or the commissioner's 25
designee; 26
(8) The Commissioner of Consumer Protection, or the commissioner's 27
designee; 28
(9) The Commissioner of Social Services, or the commissioner's 29
designee; 30
(10) The Commissioner of Public Health, or the commissioner's 31
designee; 32
(11) The chief executive officer of The University of Connecticut 33
Health Center, or the chief executive officer's designee; 34
(12) The Insurance Commissioner, or the commissioner's designee; 35
(13) The Commissioner of Economic and Community Development, 36
or the commissioner's designee; [and] 37
(14) The House chairperson and Senate chairperson of the joint 38
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standing committee of the General Assembly having cognizance of 39
matters relating to human services, who shall serve as chairpersons of 40
the task force; and 41
[(14)] (15) Any other members as deemed necessary by the 42
chairpersons of the task force. 43
(c) Task force members appointed pursuant to subdivisions (1) to (6), 44
inclusive, and (15) of subsection (b) of this section shall serve two -year 45
terms. Subsequent appointments shall be made on a staggered basis, 46
with members subsequently appointed pursuant to subdivisions (1) to 47
(3), inclusive, and (15) of subsection (b) of this section appointed to two-48
year terms and members subsequently appointed pursuant to 49
subdivisions (4) to (6), inclusive, of said subsection appointed to three -50
year terms. Terms for members appointed pursuant to subdivisions (7) 51
to (14), inclusive, of said subsection shall be coterminous with their 52
terms in office. Any member of the task force appointed under 53
subdivision (1), (2), (3), (4), (5) , [or] (6) or (15) of subsection (b) of this 54
section may be a member of the General Assembly. 55
(d) All initial appointments to the task force shall be made not later 56
than [thirty days after July 8, 2025 ] August 1, 2026 . Any vacancy shall 57
be filled by the appointing authority. 58
(e) The [speaker of the House of Representatives and the president 59
pro tempore of the Senate shall select the chairpersons of the task force 60
from among the members of the task force. Such ] chairpersons of the 61
task force shall schedule the first meeting of the task force, which shall 62
be held not later than [sixty days after July 8, 2025] September 1, 2026. 63
(f) The administrative staff of the joint standing committee of the 64
General Assembly having cognizance of matters relating to [general 65
law] human services shall serve as administrative staff of the task force. 66
(g) Not later than January 1, [2026] 2027, and annually thereafter, the 67
task force shall submit a report on its findings and recommendations to 68
the joint standing committees of the General Assembly having 69
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cognizance of matters relating to general law, human services, insurance 70
and real estate and public health, in accordance with the provisions of 71
section 11-4a. [, including, but not] The report shall include, but need 72
not be limited to, identification of prescription drugs the task force 73
determines are at risk of shortage and strategies that would mitigate 74
these shortages, including methods to increase in -state production of 75
such drugs deemed both at risk of shortage and critically necessary for 76
the provision of health care within the state. 77
Sec. 2. (NEW) ( Effective July 1, 2026 ) (a) As used in this section, 78
"Strategic Supply Chain Initiative" means a program administered by 79
the Department of Economic and Community Development to help 80
state-based companies to increase their production capacity to win new 81
business and attract out -of-state and international supply chain 82
operations. 83
(b) The Commissioner of Economic and Community Development 84
shall expand the Strategic Supply Chain Initiative to include efforts to 85
prevent or mitigate prescription drug shortages, including, but not 86
limited to, incorporating recommendations to prevent or mitigate 87
prescription drug shortages by the task force established pursuant to 88
section 28-33 of the general statutes, as amended by this act. 89
Sec. 3. Section 17b -491c of the general statutes is repealed and the 90
following is substituted in lieu thereof (Effective July 1, 2026): 91
(a) On and after February 1, 2008, any pharmaceutical manufacturer 92
of a prescription drug covered by the Department of Social Services 93
under a state medical assistance program administered by the 94
department that is a federally qualified state pharmacy assistance 95
program shall provide rebates to the department for prescription drugs 96
paid for by the department under such program in unit rebate amounts 97
equal to the unit rebate amounts paid under the Medicaid program. 98
(b) On and after February 1, 2008, any pharmaceutical manufacturer 99
of a prescription drug covered by the department under a state medical 100
assistance program that is not a federally qualified state pharmacy 101
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assistance program shall provide rebates to the department. The unit 102
rebate amount shall be calculated as follows: (1) For noninnovator 103
multiple source drugs, the average manufacturer's price multiplied by 104
eleven per cent, and (2) for single source or innovator drugs, the greater 105
of the average manufacturer's price multiplied by fifteen and one-tenth 106
per cent or the average manufacturer's price minus best price. In the 107
event the calculated rebate would establish a new Medicaid best price, 108
the unit rebate amount will be capped at the average manufacturer's 109
price minus best price. 110
(c) The department may enter into contracts for supplemental rebates 111
for drugs that are on a preferred drug list or formulary established by 112
the department. On and after July 1, 2026, the department shall develop 113
and implement a plan to increase the number of such supplemental 114
rebates by not less than twenty per cent. 115
(d) Pharmaceutical manufacturers shall submit written confirmation 116
of participation on a form prescribed by the Commissioner of Social 117
Services, that states the terms of participation, including, but not limited 118
to, the process by which a manufacturer may discontinue participation. 119
The department shall provide advance notice to participating 120
manufacturers if a new pharmacy assistance program is established and 121
shall provide the manufacturers with the opportunity to discontinue 122
participation. The department shall promptly notify participating 123
manufacturers if a state pharmacy assistance program becomes 124
disqualified. If a program becomes disqualified and a manufacturer has 125
paid rebates at the rate for a qualified program, the department shall 126
reimburse the manufacturer the amount overpaid as a result of 127
disqualification. 128
(e) A manufacturer shall not be required to provide a rebate for a 129
prescription drug that is new to the marketplace until the quarter in 130
which the manufacturer has established a Medicaid best price for the 131
product. 132
(f) No payment shall be made by the department for the prescription 133
drugs of a manufacturer that does not provide rebates to the department 134
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pursuant to this section unless a specific drug is determined by the 135
department to be medically necessary for an individual client. 136
(g) Not later than January fifteenth annually, the Commissioner of 137
Social Services shall file a report, in accordance with the provisions of 138
section 11 -4a, with the joint standing committee of the General 139
Assembly having cognizance of matters relating to human services on 140
(1) the number of prescription rebates received the previous calendar 141
year, (2) any increase or decrease in such rebates from the previous 142
calendar year, (3) the number of supplemental rebates negotiated by the 143
commissioner pursuant to subsection (c) of this section, and (4) any 144
increase or decrease in such rebates from the previous calendar year. 145
Sec. 4. (NEW) ( Effective from passage ) As used in this section and 146
section 5 of this act: 147
(1) "340B drug" means a drug that (A) is a covered outpatient drug 148
within the meaning of 42 USC 256b; (B) has been subject to any offer for 149
reduced prices by a manufacturer under 42 USC 256b(a)(1); and (C) is 150
purchased by a covered entity. "340B drug" includes a drug that would 151
have been purchased but for the restriction or limitation described in 152
subsection (a) of section 5 of this act; 153
(2) "Biologic" has the same meaning as provided in section 21a-70d of 154
the general statutes; 155
(3) "Covered entity" means The University of Connecticut Health 156
Center, a federally qualified health center, a family planning clinic and 157
a Ryan White clinic; 158
(4) "Manufacturer" has the same meaning as provided in section 21a-159
70 of the general statutes. "Manufacturer" includes manufacturers of 160
biologics; 161
(5) "Package" has the same meaning as provided in 21 USC 162
360eee(11)(A); and 163
(6) "Pharmacy" has the same meaning as provided in section 20 -571 164
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of the general statutes. 165
Sec. 5. (NEW) (Effective from passage) (a) A manufacturer, or an agent 166
or affiliate of such manufacturer, shall not, either directly or indirectly: 167
(1) Deny, restrict, prohibit, discriminate against or otherwise limit the 168
acquisition of a 340B drug by, or delivery of a 340B drug to, a pharmacy 169
that is under contract with, or otherwise authorized by, a covered entity 170
to receive 340B drugs on behalf of the covered entity unless such receipt 171
is prohibited under federal law; or 172
(2) Require a covered entity, or a pharmacy that is under contract 173
with a covered entity, to submit any claims or utilization data as a 174
condition for allowing the acquisition of a 340B drug by, or delivery of 175
a 340B drug to, a covered entity, or a pharmacy that is under contract 176
with a covered entity, unless the claims or utilization data sharing is 177
required by the United States Department of Health and Human 178
Services. 179
(b) (1) On and after July 1, 2026, if the Commissioner of Consumer 180
Protection receives information and has a reasonable belief, after 181
evaluating such information, that any manufacturer, or an agent or 182
affiliate of such manufacturer, has acted in violation of any provision of 183
this section or regulation adopted thereunder, such manufacturer, or an 184
agent or affiliate of such manufacturer, shall be subject to a civil penalty 185
of not more than fifty thousand dollars for each violation. The 186
commissioner shall issue a notice of violation and civil penalty and may 187
issue such notice by first-class mail or personal service. Such notice shall 188
include: (A) A reference to the section of the general statutes or 189
regulation of Connecticut state agencies believed or alleged to have been 190
violated; (B) a short and plain -language statement of the matters 191
asserted or charged; (C) a description of the activity to cease; (D) a 192
statement of the amount of the civil penalty or penalties that may be 193
imposed; (E) a statement concerning the right to a hearing; and (F) a 194
statement that such manufacturer, or an agent or affiliate of such 195
manufacturer, may, not later than ten business days after receipt of such 196
notice, make a request for a hearing on the matters asserted. 197
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(2) The manufacturer, or an agent or affiliate of such manufacturer, 198
to whom such notice is provided pursuant to subparagraph (A) of 199
subdivision (1) of this subsection may, not later than ten business days 200
after receipt of such notice, make written application to the Department 201
of Consumer Protection to request a hearing to demonstrate that such 202
violation did not occur. The failure to make a timely request for a 203
hearing shall result in the issuance of a cease and desist order or 204
imposition of a civil penalty by the department. All hearings held under 205
this subsection shall be conducted in accordance with the provisions for 206
contested cases under chapter 54 of the general statutes. 207
(3) Following any hearing before the Department of Consumer 208
Protection pursuant to subdivision (2) of this subsection, if the 209
department finds, by a preponderance of the evidence, that any 210
manufacturer, or an agent or affiliate of such manufacturer, violated or 211
is violating any provision of this subsection, any regulation adopted 212
thereunder or any order issued by the department, the department shall 213
issue a final cease and desist order in addition to any civil penalty the 214
department imposes. 215
(c) Nothing in this section shall be construed or applied to be in 216
conflict with or less restrictive than: 217
(1) Applicable federal law and related regulations, including 21 USC 218
355-1, as amended from time to time; or 219
(2) Other laws of this state to the extent such laws are compatible with 220
applicable federal law. 221
(d) The Commissioner of Consumer Protection shall adopt 222
regulations in accordance with the provisions of chapter 54 of the 223
general statutes to implement the provisions of this section. 224
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 28-33
Sec. 2 July 1, 2026 New section
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Sec. 3 July 1, 2026 17b-491c
Sec. 4 from passage New section
Sec. 5 from passage New section
Statement of Legislative Commissioners:
The title was changed, and in Section 4(4), the definition of
"manufacturer" was rewritten for consistency with standard drafting
conventions.
HS Joint Favorable Subst.
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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Treasurer, Debt Serv. GF - Potential
Cost
See Below See Below
Social Services, Dept. GF - Potential
Savings
See Below See Below
Consumer Protection, Dept. GF - Cost 199,182 195,182
State Comptroller - Fringe
Benefits1
GF - Cost 79,166 79,166
Resources of the General Fund GF - Potential
Revenue Gain
See Below See Below
UConn Health Ctr. Other Funds -
Potential Savings
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill makes various changes regarding prescription drugs
resulting in the impacts described below.
Section 1 has no fiscal impact by modifying the membership of a task
force to study emergency preparedness and mitigation strategies for
prescription drug shortages.
Section 2 expands the Strategic Supply Chain Initiative program,
which is funded by General Obligation (GO) bond funds, to include
1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
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efforts to prevent or mitigate prescription drug shortages.
Future General Fund debt service costs may be incurred sooner
under the bill to the degree that it causes authorized GO bond funds to
be expended more rapidly than they otherwise would have been. To
date, the State Bond Commission allocated $49.5 million in total bond
funds to the Strategic Supply Chain Initiative program. 2 The bill does
not change GO bond authorizations relevant to the program.
Section 3 requires the Department of Social Services (DSS) to develop
and implement a plan to increase the number of supplemental rebates
for drugs on the preferred drug list or formulary by at least 20%. To the
extent DSS is able to achieve higher rebate levels, DSS will experience
related pharmacy savings.
Sections 4 – 5 require the Department of Consumer Protection (DCP)
to regulate the 340 B marketplace resulting in a cost to the state. DCP
does not currently regulate this marketplace or have the expertise to do
so and will have to hire two employees to meet the requirements of the
bill. DCP will need to hire one drug control agent and one staff attorney
for a salary and other expenses cost of $199,182 in FY 27 and $195,182 in
FY 28, along with associated fringe benefit costs of $79,166 per year.
These sections also create a civil penalty of $50,000 for every violation
resulting in a potential revenue gain to the state to the extent that
violations occur.
Sections 4 – 5 also result in a potential savings to UConn Health
Center (UCHC) annually beginning in FY 27. The sections restrict the
ability of prescription drug manufacturers to limit the purchasing of
340B drugs by covered entities, which includes UCHC. Any savings will
vary based on any increase in the purchase of 340B drugs that occurs
due to the bill. From 2024 to 2025, UCHC incurred approximately $8
million in unrealized savings due to 340B drug purchasing limits
2 The State Bond Commission reallocated funding from the Manufacturing Assistance
Act program towards the Strategic Supply Chain Initiative at the August 2025 and
December 2025 meetings.
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imposed by prescription drug manufacturers, and which the bill
restricts.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to employee wage increases, the number
of violations, and inflation.
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OLR Bill Analysis
sSB 494
AN ACT CONCERNING PRESCRIPTION DRUG SHORTAGES,
PRESCRIPTION DRUG REBATES AND PROHIBITED
MANUFACTURER PRACTICES CONCERNING CERTAIN
PRESCRIPTION DRUGS.
SUMMARY
This bill makes several changes in laws related to prescription drug
prices and prescription drug shortages.
Existing law authorizes the Department of Social Services (DSS) to
enter contracts for supplemental rebates for drugs on the department’s
preferred drug list or formulary. The bill requires DSS to develop and
implement a plan, starting July 1, 2026, to inc rease the number of
supplemental rebates by at least 20% and sets a related reporting
requirement.
Existing law establishes a n ongoing task force to study emergency
preparedness and mitigation strategies for prescription drug shortages.
The bill adds the Human Services Committee chairpersons to the task
force and makes them the task force’s chairpersons. Among other
things, i t sets requirements for member terms and new deadlines to
appoint members and meet.
The bill requires the Department of Economic and Community
Development (DECD) to expand the Strategic Supply Chain Initiative to
include efforts to prevent or mitigate prescription drug shortages.
The bill also generally prohibits drug manufacturers from (1) limiting
access to 340B drugs (see below) for pharmacies contracting with
covered entities or (2) requir ing pharmacies or covered entities to
submit claims or utilization data as a condition for receiving 340B drugs.
It also establishes a hearing process and penalties for violators.
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EFFECTIVE DATE: Upon passage, except provisions on the Strategic
Supply Chain Initiative and supplemental rebates are effective July 1,
2026.
§ 3 — SUPPLEMENTAL REBATES
The federal Medicaid Drug Rebate Program requires a drug
manufacturer to enter into a rebate agreement in exchange for Medicaid
coverage of most of the manufacturer’s drugs. States may negotiate with
drug manufacturers for supplemental rebates in addition to federal
rebates.
Starting July 1, 2026, the bill requires DSS to develop and implement
a plan to increase the number of supplemental rebates by at least 20%.
It also requires DSS to report to the Human Services Committee
annually by January 15 on the number of (1) prescription rebates
received the previous calendar year and any increase or decrease from
the prior calendar year and (2) supplemental rebates negotiated by DSS
and any increase or decrease from the prior calendar year.
§ 1 — TASK FORCE ON PRESCRIPTION DRUG SHORTAGES
Under current law, the House speaker and Senate president pro
tempore select the taskforce’s chairpersons. The bill adds the Human
Services Committee chairpersons to the task force and makes them the
taskforce’s chairpersons. It changes responsibility for administrative
staffing for the task force from the General Law Committee to the
Human Services Committee.
Existing law requires legislative leaders to appoint eight task force
members and allows the task force’s chairpersons to appoint more
members as they find necessary (in addition to certain ex -officio
members). Under the bill, these appointed members have two -year
terms, but subsequent appointments are made on a staggered basis, as
follows:
1. two-year terms for members appointed by the House Speaker,
Senate president pro tempore, House majority leader, and the
Human Services Committee chairpersons; and
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2. three-year terms for members appointed by the Senate majority
leader, House minority leader, and Senate minority leader.
Under the bill, a ll initial appointments must be made by August 1,
2026, and the task force must hold its first meeting by September 1, 2026.
Its annual report is due January 1, 2027, to the General Law, Human
Services, and Insurance and Real Estate, and Public Health committees.
§ 2 — STRATEGIC SUPPLY CHAIN INITIATIVE
The bill requires the DECD commissioner to expand the department’s
Strategic Supply Chain Initiative to include efforts to prevent or mitigate
prescription drug shortages, including task force recommendations (see
above).
Under the bill, this initiat ive is a DECD -administered program to
help state-based companies increase their production capacity to win
new business and attract out -of-state and international supply chain
operations.
§§ 4 & 5 — 340B PROGRAM
Section 340B of the federal Public Health Service Act (the 340B Drug
Pricing Program) requires drug manufacturers participating in
Medicaid to sell certain outpatient prescription drugs at discounted
prices to health care organizations that care for uninsu red and low -
income patients. Pharmacies may contract with 340B -participating
healthcare organizations to also purchase reduced -price outpatient
drugs.
The bill prohibits drug manufacturers (including biologics
manufacturers), and their agents or affiliates, from directly or indirectly
taking any of the following actions:
1. denying or limiting access to 340B drugs for a pharmacy
contracting or otherwise working with a covered entity (see
below) to obtain them on the entity’s behalf, unless the
pharmacy’s receipt of a drug is federally prohibited, or
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2. requiring a covered entity, or pharmacy contracted with a
covered entity, to submit claims or utilization data as a condition
for acquiring a 340B drug, unless the claims or data sharing is
federally required.
For these restrictions, “covered entities” are the UConn Health
Center, federally qualified health centers, family planning clinics, and
Ryan White clinics (clinics that receive specified HIV and AIDS -related
federal funding). (Federal law allows other organizations to participate
in the 340B program, such as hospitals that serve a disproportionate
number of low-income patients.)
Also, under these provisions, 340B drugs are those that a covered
entity (1) purchases under the program and that are subject to the
program’s pricing requirements or (2) would purchase except for the
prohibited conduct.
The bill subject s violators to civil penalties (see below). It also
requires the Department of Consumer Protection (DCP) commissioner
to adopt implementing regulations.
The bill specifies that its 340B provisions must not be applied in a way
that conflicts with, or is less restrictive than, applicable state and federal
laws (including the federal law on drug risk evaluation and mitigation
strategies (REMSs); see BACKGROUND).
Violations
Beginning July 1, 2026, the bill subjects drug manufacturers (or their
agents or affiliates) to a civil penalty of up to $50,000 per violation if the
DCP commissioner has a reasonable belief, based on received
information, that they have violated these provisions or regulations.
The commissioner must issue the violation notice by first -class mail
or personal service, and it must include:
1. a reference to the law or regulation that has allegedly been
violated;
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2. a short and plain language statement of the matter;
3. a description of the activity to cease;
4. the penalty amount that may be imposed; and
5. an explanation of the right to request, in writing to DCP, a
hearing within 10 business days after receiving the notice.
Under the bill, DCP must hold requested hearings as contested case
hearings under the Uniform Administrative Procedure Act (UAPA). If
after a hearing, DCP finds by a preponderance of the evidence that there
was a violation or that the entity violated any DCP order, the
department must issue a final cease and desist order in addition to any
civil penalty imposed.
If the manufacturer, agent, or affiliate does not timely request a
hearing, DCP must issue a cease and desist order or impose a civil
penalty.
BACKGROUND
REMS
Federal law authorizes the FDA to require a drug safety program
(called “REMS”) for certain prescription medications with serious safety
concerns to ensure that the medications are used safely and the risks of
serious or life -threatening side effects are m inimized for patients,
pharmacies, and providers (21 U.S.C. § 355-1).
COMMITTEE ACTION
Human Services Committee
Joint Favorable Substitute
Yea 15 Nay 8 (03/19/2026)