Prohibits pharmacy benefits managers from operating pharmacy practice sites directly or indirectly.

S3381

SENATE, No. 3381

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 5, 2026

Sponsored by:

Senator� VIN GOPAL

District 11 (Monmouth)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Prohibits pharmacy benefits managers from operating
pharmacy practice sites directly or indirectly.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning pharmacy benefits managers and
pharmacy practice sites and supplementing P.L.2003, c.280 (C.45:14-40 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� The Legislature finds
and declares that:

���� a.���� It is beneficial to the
State to support patient access to prescription drugs and pharmacy services at
fair prices in a market that supports optimal patient care.

���� b.��� The Federal Trade
Commission and the United States House Committee on Oversight and Government
Reform have found evidence of anticompetitive business tactics that have driven
locally-operated pharmacies out of business, limiting patient choices and
inflating drug prices at pharmacies owned by pharmacy benefits managers.

���� c.���� The State seeks to
minimize conflicts of interest by prohibiting pharmacy benefits managers from
being both a price setter and price taker.

���� d.��� It is the intent of the
Legislature to improve healthcare delivery in the pharmacy market for patients
by eliminating certain anticompetitive behavior of pharmacy benefits managers
as a basic tenant of this act.

���� 2.��� a.� A pharmacy benefits
manager shall not acquire a direct or indirect interest in, or hold, directly
or indirectly, a permit to operate a pharmacy practice site pursuant to the
�New Jersey Pharmacy Practice Act,� P.L.2003, c.280 (C.45:14-40 et seq.).�

���� b.��� The board shall deny,
revoke, or refuse to renew the permit of a pharmacy practice site that violates
the provisions of this act.

���� c.���� (1)� The board may
issue a special permit, pursuant to N.J.A.C.13:39-4.16, for certain rare,
orphan, or limited distribution drugs otherwise unavailable in the market to a
patient or a pharmacy practice site that would otherwise be prohibited pursuant
to this section.

���� (2)�� The board may assess the
need for rare, orphan, or limited distribution drugs for a special permit
issued pursuant to paragraph (1) of this subsection before the revocation of,
or refusal to renew, an existing permit for a pharmacy practice site.

���� (3)�� If an assessment
performed by the board pursuant to paragraph (2) of this subsection determines
that a rare, orphan, or limited distributed drug is otherwise unavailable in
the market to a patient or pharmacy practice site that would otherwise be
prohibited pursuant to this section, the board shall convert the existing
regular permit for the prohibited pharmacy to a special permit issued pursuant
to this subsection that shall be valid for a period of no less than 90 days.

���� (4)�� The board shall adopt
pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.), rules to effectuate the purposes of this subsection, specifically:

���� (a)�� the process in which a
patient, pharmacy practice site, or healthcare provider may notify the board of
a rare, orphan, or limited distribution drug unavailable in the market;

���� (b)�� the process in which a
pharmacy practice site may request a special permit pursuant to paragraph (1)
of this subsection;

���� (c)�� the timeline in which
the board shall render a decision on whether or not to grant a special permit;
and

���� (d)�� the process for
emergency determinations due to patient need.

���� (5)�� This subsection shall
expire on September 1, 2028.

���� 3.��� a.� The board shall
conduct an initial assessment of each active permit issued pursuant to the �New
Jersey Pharmacy Practice Act,� P.L.2003, c.280 (C.45:14-40 et seq.) as of the
date of enactment of this act, and shall send written notice, by mail or electronic
mail, at least 90 days before July 1, 2027, to each pharmacy practice site that
the board reasonably believes will violate section 2 of this act.

���� (1)�� The written notice
required pursuant to this subsection shall include:

���� (a)�� a list of each pharmacy
benefits manager that holds a direct or indirect interest in, or otherwise
holds, directly or indirectly, a permit issued pursuant to the �New Jersey
Pharmacy Practice Act,� P.L.2003, c.280 (C.45:14-40 et seq.);

���� (b)�� a phone number and
electronic mail address that is monitored by the board during regular business
hours; and

���� (c)�� a list of each State
pharmacy that holds an active permit that is not reasonably expected to violate
section 2 of this act as of July 1, 2027.� The list shall include:

���� (i)��� the name of the
pharmacy;

���� (ii)�� the phone number of the
pharmacy;

���� (iii)� the physical address of
the pharmacy;

���� (iv)� the Internet website of
the pharmacy, if known; and

���� (v)�� an electronic mail
address for the pharmacy, if known.

���� (2)�� If the board has a
searchable Internet website that includes the information required pursuant to
subparagraph (c) of paragraph (1) of this subsection, the board may provide the
address for the website in lieu of separately compiling the list required in
subparagraph (c).

���� b.��� (1)� A pharmacy practice
site that receives a written notice from the board pursuant to subsection a. of
this section shall provide written notice, by mail or electronic mail, or
through a patient portal of a pharmacy practice site, if available, at least 60
days before July 1, 2027 to each patient and prescribing healthcare provider of
the patient within the past 12 months, informing the patient and healthcare
provider that the site can no longer dispense the provider�s prescription order
on or after July 1, 2027.

���� (2)�� A written notice
provided to a patient and healthcare provider pursuant to paragraph (1) of this
subsection shall include information provided to a pharmacy practice site
pursuant to subparagraphs (b) and (c) of paragraph (1) of subsection a. of this
section.

���� 4.��� Sections 1 and 3 of this
act shall take effect immediately, and section 2 shall take effect on July 1,
2027; however, the New Jersey State Board of Pharmacy may take any anticipatory
administrative action in advance as shall be necessary for the implementation
of section 2 of this act.

STATEMENT

���� This bill prohibits pharmacy
benefits managers from operating pharmacy practice sites.

���� Under the bill, a pharmacy
benefits manager will be prohibited, beginning on July 1, 2027, from acquiring
a direct or indirect interest in, or holding, directly or indirectly, a permit
to operate a pharmacy practice site pursuant to the �New Jersey Pharmacy
Practice Act.�� The New Jersey State Board of Pharmacy may issue a special
permit to a pharmacy practice site in violation of this bill to continue
operation for certain rare, orphan, or limited distribution drugs that are
otherwise unavailable in the market to a patient or a pharmacy practice site
that would otherwise be prohibited pursuant to the bill, but will only be valid
until September 1, 2028.� The board may assess the need for a special permit
before the revocation of, or refusal to renew, an existing permit for a
pharmacy practice site, and will be required to adopt rules to establish and
implement a process and timeline to issue a special permit.

���� The bill also requires the New
Jersey State Board of Pharmacy to conduct an initial assessment of each active
permit that was issued under the �New Jersey Pharmacy Practice Act� and to send
written notices, by mail or electronic mail, at least 90 days before July 1,
2027, to each pharmacy practice site that the board reasonably believes will
violate the provisions of this bill.� Pharmacy practice sites that receive a
written notice from the board concerning the site�s violation of this bill will
be required to provide written notice, by mail or electronic mail, or through
a� patient portal of a pharmacy practice site, if available, at least 60 days
before July 1, 2027, to each patient and prescribing healthcare provider of the
patient within the previous 12 months to inform the patient and healthcare
provider that the pharmacy will no longer dispense the provider�s prescription
order on or after July 1, 2027.� Written notices provided to a patient or
healthcare provider will be required to include a phone number and electronic mail
address that is monitored by the board during regular business hours and a list
of State pharmacies that hold an active permit and are not reasonably expected
to violate this bill as of July 1, 2027.�