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<leg xml:space="preserve" billnum="HB0356" sponsor="Logan J. Monson" designation="HB" otherSponsor="Evan J. Vickers" otherHouse="Senate" sess="2026GS" fileno="2026FL1210" date="1/23/2026 11:01:360" printDate="02-03 10:49" subVer="0" minVer="0" office="LEGISLATIVE GENERAL COUNSEL" actionDate="" impact="code"><info><nextbuid>15</nextbuid><aminfo anum="0" effdate="01/01/1800"><seclist><sect action="A" src="code" buid="2" uid="C31A-46-S311_1800010118000101" fromuid="C31A-46-S311_2025050720250507" sort="31A46 03110018000101" mtype="section" effdate="01/01/1800">31A-46-311</sect><sect src="uncod" untype="effdate" buid="14" uid="EF0000" sort="UZEFF" mtype="uncod" effdate="05/06/2026"/></seclist></aminfo></info><tbox><sinfo><nextpairid>0</nextpairid></sinfo><st numlevel="1" lineno="1" slineno="0-1">Drug Distribution Amendments</st><sessionhead>2026 GENERAL SESSION</sessionhead><statehead>STATE OF UTAH</statehead><sponsorhead>Chief Sponsor: Logan J. Monson</sponsorhead><otherSponsorhead>Senate Sponsor: Evan J. Vickers</otherSponsorhead></tbox><lt numlevel="1" lineno="2" slineno="0-2"><lthead lineno="3">LONG TITLE</lthead><gdhead lineno="4">General Description:</gdhead><gd numlevel="1" lineno="5" slineno="0-5">This bill amends provisions related to the 340B drug discount program.</gd><hphead lineno="6">Highlighted Provisions:</hphead><hp numlevel="1" lineno="7" slineno="0-7">This bill:<hl numlevel="1" lineno="8" slineno="0-8" level="1">defines a 340B covered entity and a 340B eligible drug;</hl><hl numlevel="1" lineno="9" slineno="0-9" level="1">clarifies prohibited actions under the 340B drug discount program;</hl><hl numlevel="1" lineno="10" slineno="0-10" level="1">defines terms; and</hl><hl numlevel="1" lineno="11" slineno="0-11" level="1">makes technical and conforming changes.</hl></hp><moni numlevel="1" lineno="12" slineno="0-12" display="none">Money Appropriated in this Bill:</moni><moniNone lineno="13">None</moniNone><oc numlevel="1" lineno="14" slineno="0-14">Other Special Clauses:<ocl type="effdate" sort="2" numlevel="1" lineno="15" slineno="0-15">This bill provides a special effective date.</ocl></oc><sa numlevel="1" lineno="16" slineno="0-16">Utah Code Sections Affected:<saamd numlevel="1" lineno="17" slineno="0-17"><snhead>AMENDS:</snhead><sn num="31A-46-311" src="code" uid="C31A-46-S311_1800010118000101" buid="2" sort="31A46 03110018000101" numlevel="1" lineno="18" slineno="0-18"><bold>31A-46-311</bold>, as enacted by Laws of Utah 2025, Chapter 514</sn></saamd></sa></lt><enacthead lineno="19"/><enact numlevel="1" lineno="20" slineno="0-20">Be it enacted by the Legislature of the state of Utah:</enact><bdy><bsec buid="2" num="31A-46-311" type="amend" src="code" uid="C31A-46-S311_1800010118000101" sort="31A46 03110018000101" numlevel="1" lineno="21" slineno="1-1" sn="1"><section number="31A-46-311" numlevel="1" lineno="22" slineno="1-2" type="amend"><secline lineno="21">Section 1. Section <bold>31A-46-311</bold> is amended to read:</secline><catline lineno="22"><bold>31A-46-311<parens/>. Prohibited actions with respect to the 340B drug discount program.</bold></catline><subsection ssid="2-null-1" dnum="1-o" numlevel="1" lineno="23" slineno="1-3" level="1" placement="noreturn"><display>(1)</display>As used in this section<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="8" groupid="7" style="2" owner="jchristopherson" level="1" deltag="both">,</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="6" groupid="5" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">:</amend><subsection ssid="2-18" dnum="_-o:a-i" numlevel="1" lineno="24" slineno="1-4" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1001" style="1" owner="i" level="1" amendtag="start">(a)</amend></display><amend anum="0" ea="amend" pairid="50" groupid="46" style="1" owner="jchristopherson" level="1" amendtag="end">"340B covered entity" means the same as the term "covered entity" is defined in 42 <ln numlevel="1" lineno="25" slineno="1-5"/>U.S.C. Sec. 256b(a)(4).</amend></subsection><subsection ssid="2-21" dnum="_-o:b-i" numlevel="1" lineno="26" slineno="1-6" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1002" style="1" owner="i" level="1" amendtag="start">(b)</amend></display><amend anum="0" ea="amend" pairid="65" groupid="59" style="1" owner="jchristopherson" level="1" amendtag="end">"340B eligible drug" means a drug purchased through the 340B drug discount <ln numlevel="1" lineno="27" slineno="1-7"/>program, in accordance with 42 U.S.C. Sec. 256b, by a 340B covered entity.</amend></subsection><subsection ssid="2-20" dnum="_-o:c-i" numlevel="1" lineno="28" slineno="1-8" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1003" style="1" owner="i" level="1" amendtag="start">(c)</amend></display><amend anum="0" ea="amend" pairid="57" groupid="52" style="1" owner="jchristopherson" level="1" amendtag="end">"Contracted pharmacy" means a pharmacy contracting with a 340B covered entity to <ln numlevel="1" lineno="29" slineno="1-9"/>dispense 340B eligible drugs.</amend></subsection><subsection ssid="2-16" dnum="_-o:d-i" numlevel="1" lineno="30" slineno="1-10" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1004" style="1" owner="i" level="1" amendtag="both">(d)</amend></display><amendoutstart style="2"/><amend anum="0" ea="erase" pairid="15" groupid="13" style="2" owner="jchristopherson" level="1" deltag="both">"manufacturer"</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="14" groupid="12" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">"Manufacturer"</amend> means a pharmaceutical manufacturer, including an <ln numlevel="1" lineno="31" slineno="1-11"/>agent or affiliate of a pharmaceutical manufacturer.</subsection><subsection ssid="2-17" dnum="_-o:e-i" numlevel="1" lineno="32" slineno="1-12" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1005" style="1" owner="i" level="1" amendtag="start">(e)</amend></display><amend anum="0" ea="amend" pairid="13" groupid="11" style="1" owner="jchristopherson" level="1" amendtag="end">"Pharmacy" means any place where drugs are dispensed.</amend></subsection></subsection><subsection ssid="2-null-2" dnum="2-o" numlevel="1" lineno="33" slineno="1-13" level="1"><display>(2)</display>A manufacturer may not:<subsection ssid="2-null-3" dnum="a-o" numlevel="1" lineno="34" slineno="1-14" level="2"><display>(a)</display>directly or indirectly restrict or prohibit:<subsection ssid="2-null-4" dnum="i-o" numlevel="1" lineno="35" slineno="1-15" level="3"><display>(i)</display>a pharmacy from contracting with a 340B <amend anum="0" ea="amend" pairid="29" groupid="27" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity, including by denying the <ln numlevel="1" lineno="36" slineno="1-16"/>pharmacy access to a drug that is manufactured by the manufacturer;</subsection><subsection ssid="2-null-5" dnum="ii-o" numlevel="1" lineno="37" slineno="1-17" level="3"><display>(ii)</display>a 340B <amend anum="0" ea="amend" pairid="30" groupid="28" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity from contracting with a pharmacy, including by denying <ln numlevel="1" lineno="38" slineno="1-18"/>the 340B <amend anum="0" ea="amend" pairid="31" groupid="29" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity access to a drug that is manufactured by the manufacturer;</subsection><subsection ssid="2-null-6" dnum="iii-o" numlevel="1" lineno="39" slineno="1-19" level="3"><display>(iii)</display>the acquisition, dispensing, or delivery of a 340B <amend anum="0" ea="amend" pairid="88" groupid="79" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug to any location <ln numlevel="1" lineno="40" slineno="1-20"/>authorized by a 340B <amend anum="0" ea="amend" pairid="32" groupid="30" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity to receive the drug, unless prohibited by <ln numlevel="1" lineno="41" slineno="1-21"/>federal law; or</subsection><subsection ssid="2-null-7" dnum="iv-o" numlevel="1" lineno="42" slineno="1-22" level="3"><display>(iv)</display>a 340B <amend anum="0" ea="amend" pairid="33" groupid="31" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity from receiving <amendoutstart style="2"/><amend anum="0" ea="erase" pairid="95" groupid="86" style="2" owner="jchristopherson" level="1" deltag="both">340B drug discount program pricing for </amend><amendoutend style="2"/>a <ln numlevel="1" lineno="43" slineno="1-23"/>340B <amend anum="0" ea="amend" pairid="89" groupid="80" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug, including by imposing a time limitation on a 340B <amend anum="0" ea="amend" pairid="34" groupid="32" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend><ln numlevel="1" lineno="44" slineno="1-24"/>entity to replenish or submit a claim for a 340B <amend anum="0" ea="amend" pairid="90" groupid="81" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug;</subsection></subsection><subsection ssid="2-null-8" dnum="b-o" numlevel="1" lineno="45" slineno="1-25" level="2"><display>(b)</display>directly or indirectly:<subsection ssid="2-null-9" dnum="i-o" numlevel="1" lineno="46" slineno="1-26" level="3"><display>(i)</display>require a 340B <amend anum="0" ea="amend" pairid="35" groupid="33" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity to purchase a 340B <amend anum="0" ea="amend" pairid="91" groupid="82" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug from a supplier if <ln numlevel="1" lineno="47" slineno="1-27"/>the manufacturer would otherwise permit the 340B <amend anum="0" ea="amend" pairid="36" groupid="34" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity to purchase a <ln numlevel="1" lineno="48" slineno="1-28"/>drug that is not a 340B <amend anum="0" ea="amend" pairid="92" groupid="83" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug from the supplier; or</subsection><subsection ssid="2-null-10" dnum="ii-o" numlevel="1" lineno="49" slineno="1-29" level="3"><display>(ii)</display>require a 340B <amend anum="0" ea="amend" pairid="37" groupid="35" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity<amend anum="0" ea="amend" pairid="58" groupid="53" style="1" owner="jchristopherson" level="1" amendtag="both"> or a contracted pharmacy</amend> to submit any claim data, <ln numlevel="1" lineno="50" slineno="1-30"/>utilization data, or information about a 340B <amend anum="0" ea="amend" pairid="38" groupid="36" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity's contracts with a <ln numlevel="1" lineno="51" slineno="1-31"/>third-party<amend anum="0" ea="amend" pairid="102" groupid="92" style="1" owner="jchristopherson" level="1" amendtag="both">, unless the data or information sharing is required by federal law,</amend> as a <ln numlevel="1" lineno="52" slineno="1-32"/>condition for allowing<amend anum="0" ea="amend" pairid="103" groupid="93" style="1" owner="jchristopherson" level="1" amendtag="both">:</amend> <subsection ssid="2-26" dnum="_-o:A-i" numlevel="1" lineno="53" slineno="1-33" ea="amend" anum="0" owner="jchristopherson" style="1" level="4"><display><amend anum="0" ea="amend" pairid="1015" style="1" owner="i" level="1" amendtag="both">(A)</amend></display>the acquisition of a 340B <amend anum="0" ea="amend" pairid="93" groupid="84" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug by<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="115" groupid="103" style="2" owner="jchristopherson" level="1" deltag="both">,</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="114" groupid="102" style="1" owner="jchristopherson" level="1" amendtag="both" space="true"> a 340B covered entity;</amend> or </subsection><subsection ssid="2-27" dnum="_-o:B-i" numlevel="1" lineno="54" slineno="1-34" ea="amend" anum="0" owner="jchristopherson" style="1" level="4"><display><amend anum="0" ea="amend" pairid="1016" style="1" owner="i" level="1" amendtag="both">(B)</amend></display>delivery of a 340B <amend anum="0" ea="amend" pairid="94" groupid="85" style="1" owner="jchristopherson" level="1" amendtag="both">eligible </amend>drug to<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="117" groupid="105" style="2" owner="jchristopherson" level="1" deltag="both">,</amend><amendoutend style="2"/> a 340B <amend anum="0" ea="amend" pairid="39" groupid="37" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="118" groupid="106" style="2" owner="jchristopherson" level="1" deltag="both">, unless the data <ln numlevel="1" lineno="55" slineno="1-35"/>or information sharing is required by federal law</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="119" groupid="107" style="1" owner="jchristopherson" level="1" amendtag="both" space="true"> or a contracted pharmacy</amend>; or</subsection></subsection></subsection><subsection ssid="2-null-11" dnum="c-o" numlevel="1" lineno="56" slineno="1-36" level="2"><display>(c)</display>interfere with:<subsection ssid="2-null-12" dnum="i-o" numlevel="1" lineno="57" slineno="1-37" level="3"><display>(i)</display>a contract between a pharmacy and a 340B <amend anum="0" ea="amend" pairid="40" groupid="38" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity; or</subsection><subsection ssid="2-null-13" dnum="ii-o" numlevel="1" lineno="58" slineno="1-38" level="3"><display>(ii)</display>the ability of a pharmacy and a 340B <amend anum="0" ea="amend" pairid="41" groupid="39" style="1" owner="jchristopherson" level="1" amendtag="both">covered </amend>entity to enter into a contract.</subsection></subsection></subsection><subsection ssid="2-null-14" dnum="3-o" numlevel="1" lineno="59" slineno="1-39" level="1"><display>(3)</display>The Public Employees' Benefit and Insurance Program created in Section <xref depth="3" refnumber="49-20-103">49-20-103</xref> <ln numlevel="1" lineno="60" slineno="1-40"/>may adjust the program's business practices to mitigate any financial impacts resulting <ln numlevel="1" lineno="61" slineno="1-41"/>from this section.</subsection><subsection ssid="2-null-15" dnum="4-o" numlevel="1" lineno="62" slineno="1-42" level="1"><display>(4)</display>Nothing in this section is to be construed to conflict with federal law.</subsection></section></bsec><bsec buid="14" type="uncod" untype="effdate" src="uncod" uid="EF0000" sort="UZEFF" langlock="true" numlevel="1" lineno="63" slineno="2-1" sn="2"><section type="uncod" untype="effdate" display="false" src="uncod"><secline lineno="63">Section 2.  <bold>Effective Date.</bold></secline><sectionText lineno="64"><amend anum="0" ea="amend" pairid="1" groupid="1" style="1" owner="jchristopherson" level="1" amendtag="both">This bill takes effect:</amend></sectionText><subsection ssid="14-1" dnum="_-o:1-i" numlevel="1" lineno="65" slineno="2-3" ea="amend" anum="0" owner="jchristopherson" style="1" level="1"><display><amend anum="0" ea="amend" pairid="1022" style="1" owner="i" level="1" amendtag="start">(1)</amend></display><amend anum="0" ea="amend" pairid="4" groupid="3" style="1" owner="jchristopherson" level="1" m-anum="0" m-ea="amend" m-pairid="6" m-groupid="5" m-style="1" m-owner="jchristopherson" m-level="1" amendtag="end">except as provided in Subsection (2), <effdate uid="code" date="5/6/2026">May 6, 2026</effdate>; or</amend></subsection><subsection ssid="14-2" dnum="_-o:2-i" numlevel="1" lineno="66" slineno="2-4" ea="amend" anum="0" owner="jchristopherson" style="1" level="1"><display><amend anum="0" ea="amend" pairid="1023" style="1" owner="i" level="1" amendtag="start">(2)</amend></display><amend anum="0" ea="amend" pairid="9" groupid="7" style="1" owner="jchristopherson" level="1" amendtag="end">if approved by two-thirds of all members elected to each house:</amend><subsection ssid="14-3" dnum="_-o:a-i" numlevel="1" lineno="67" slineno="2-5" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1024" style="1" owner="i" level="1" amendtag="start">(a)</amend></display><amend anum="0" ea="amend" pairid="12" groupid="9" style="1" owner="jchristopherson" level="1" amendtag="end">upon approval by the governor;</amend></subsection><subsection ssid="14-4" dnum="_-o:b-i" numlevel="1" lineno="68" slineno="2-6" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1025" style="1" owner="i" level="1" amendtag="start">(b)</amend></display><amend anum="0" ea="amend" pairid="15" groupid="11" style="1" owner="jchristopherson" level="1" amendtag="end">without the governor's signature, the day following the constitutional time limit of <ln numlevel="1" lineno="69" slineno="2-7"/>Utah Constitution, Article VII, Section 8; or</amend></subsection><subsection ssid="14-5" dnum="_-o:c-i" numlevel="1" lineno="70" slineno="2-8" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1026" style="1" owner="i" level="1" amendtag="start">(c)</amend></display><amend anum="0" ea="amend" pairid="18" groupid="13" style="1" owner="jchristopherson" level="1" amendtag="end">in the case of a veto, the date of veto override.</amend></subsection></subsection></section></bsec></bdy><foot><rev><tm>1-23-26 11:47 AM</tm></rev></foot></leg>