HB254 Alabama 2012 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2012

Title

Pharmacy benefit managers, registration and licensing by State Board of Pharmacy, required

Summary

HB254 would regulate pharmacy benefit managers in Alabama by requiring registration and licensing through the State Board of Pharmacy and setting standards and penalties.

What This Bill Does

It defines what a pharmacy benefit manager is and that the law applies to PBMs serving Alabama residents. PBMs must obtain a board-issued permit and register biennially with renewal fees; permits expire at the end of even-numbered years. The State Board of Pharmacy can discipline PBMs for violations, including sanctions such as fines, suspension, or revocation. The act provides due-process steps, allows appeals, and permits injunctions for enforcement; it does not apply to ERISA employee welfare benefit plans. It takes effect on the date specified: the first day of the third month after passage/approval.

Who It Affects

• Pharmacy benefit managers operating in Alabama would need a board-issued permit, register every two years, and follow board rules.
• Covered persons in Alabama (policy holders, enrollees, or other individuals in health benefit plans) would be affected because PBMs serving them would be regulated and subject to board standards and potential sanctions.

Key Provisions

• Defines PBM, covered person, board, and the practice of pharmacy to set scope and definitions.
• Requires PBMs serving Alabama residents to obtain a valid permit and register biennially with renewal by December 31 of even-numbered years; permits may have fees and expiration rules.
• Provides grounds and procedures for disciplinary actions by the board, including denial, suspension, revocation, censure, probation, fines up to $1,000 per count, cost assessments, and operation restrictions.
• Establishes due process for disciplinary actions (notice and hearing, service requirements) and allows appeals to the circuit court under applicable judicial review laws.
• Authorizes the board to seek injunctions to stop violations and enforce compliance.
• Excludes ERISA employee welfare benefit plans from the act.
• Effective date: the first day of the third month after passage/approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Pharmacies and Pharmacists