All Roll Calls
Yes: 224 • No: 5
North DakotaHB 15842025 Regular SessionHouse
AN ACT to create and enact four new sections to chapter 26.1-27.1 of the North Dakota Century Code, relating to pharmacy benefits managers and a pharmacy benefit manager enforcement fund; to amend and reenact subsection 1 of section 26.1-01-07, sections 26.1-27.1-01, 26.1-27.1-02, 26.1-27.1-04, 26.1-27.1-06 and 26.1-27.1-07 of the North Dakota Century Code, relating to pharmacy benefits managers; to repeal section 26.1-27-01.1 and chapter 26.1-36.10 of the North Dakota Century Code, relating to pharmacy benefits managers and prescription drug costs; to provide a penalty; to provide an appropriation; to provide for a transfer; to provide an effective date; to provide an expiration date; and to declare an emergency.
Sponsored By: Jim Kasper (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
Pharmacies gain contract choices and exits
Pharmacy benefit managers must offer pharmacy contracts on an opt-in basis. A pharmacy or its contracting representative must sign to accept. Pharmacies get at least 30 days to respond to an offer. They can leave a manager's contract by giving at least 90 days' notice.
State funds drug benefit enforcement
The law creates a pharmacy benefit manager enforcement fund, with spending subject to legislative approval. On the act's effective date, the state must transfer the Drug Pricing Fund balance into it. The pharmacy board may add up to $600 from each eligible wholesaler and virtual wholesaler license fee. The law provides up to $1.2 million in otherwise uncommitted fund money through June 30, 2027, for enforcement and an actuarial study of effects on premiums and consumer drug prices. It authorizes three full-time positions—an attorney, pharmacist, and investigator—and the fund provisions expire after June 30, 2029.
Drug benefit managers need state licenses
Beginning January 1, 2026, pharmacy benefit managers need a North Dakota license and must show $1 million in financial responsibility. Initial applications and annual renewals carry nonrefundable fees, each capped at $10,000. Licenses cannot be transferred, and annual renewal is due by April 30. The stated license term runs from April 30 through March 31. Operating without a license is a class C felony.
Drug managers face penalties and repayment
The insurance commissioner can adopt rules and use state enforcement powers, including subpoenas, to enforce pharmacy benefit manager requirements. Managers face penalties up to $10,000 per violation and civil penalties up to $50,000 for a second or later violation. The commissioner can suspend or revoke licenses and require repayment for losses suffered by affected entities, pharmacies, or individuals. Managers facing penalties are entitled to a hearing under state administrative procedures. Legal papers can be served by email to the maintained address or by mail to the last-known address or principal office; service is complete when sent.
Drug payment oversight includes privacy limits
Payments counted under the rules include rebates collected by aggregators or kept by managers, pharmacy price concessions, network fees, and other pharmacy payments. Covered entities must report annually what benefits they receive from payments to pharmacy benefit managers. Reports must explain whether those benefits lower rates or go to covered people; neither outcome is guaranteed. The insurance commissioner reviews contracts and related records during covered-entity examinations. Examination disclosures receive trade-secret protection, but final orders against managers remain public.
New rules define covered drug managers
The law covers third parties that manage pharmacy benefits through contracts or other financial arrangements with covered entities. Health plans managing their own pharmacy benefits are excluded from the manager definition. Limited-benefit policies without prescription drug coverage are also excluded. Covered managers must follow specified state pharmacy laws; the act replaces earlier rules by repealing section 26.1-27-01.1 and chapter 26.1-36.10. An emergency clause gives the act immediate effect, except for the January 1, 2026 licensing start.
Sponsors & Cosponsors
Sponsor
Jim Kasper
Republican • House
Cosponsors
Ben Koppelman
Republican • House
Mike Lefor
Republican • House
Vicky Steiner
Republican • House
Don Vigesaa
Republican • House
Jonathan Warrey
Republican • House
Jeff Barta
Republican • Senate
Keith Boehm
Republican • Senate
Josh Boschee
Democratic • Senate
David Hogue
Republican • Senate
Jerry Klein
Republican • Senate
Roll Call Votes
House vote • 4/21/2025
Second reading, passed, yeas 92 nays 0, Emergency clause carried
Yes: 92 • No: 0
Senate vote • 4/16/2025
Second reading, passed as amended, yeas 42 nays 5
Yes: 42 • No: 5
House vote • 2/21/2025
Second reading, passed, yeas 90 nays 0, Emergency clause carried
Yes: 90 • No: 0
Actions Timeline
Filed with Secretary Of State 04/28
4/30/2025HouseSigned by Governor 04/28
4/29/2025HouseSent to Governor
4/25/2025HouseSigned by Speaker
4/25/2025HouseSigned by President
4/22/2025SenateSecond reading, passed, yeas 92 nays 0, Emergency clause carried
4/21/2025HouseConcurred
4/21/2025HouseReturned to House (12)
4/16/2025HouseEmergency clause carried
4/16/2025SenateSecond reading, passed as amended, yeas 42 nays 5
4/16/2025SenateAmendment adopted, placed on calendar
4/16/2025SenateReported back amended, do pass, amendment placed on calendar 15 1 0
4/15/2025SenateCommittee Hearing 03:00
4/8/2025SenateRereferred to Appropriations
4/7/2025SenateAmendment adopted
4/7/2025SenateReported back amended, do pass, amendment placed on calendar 4 0 1
4/4/2025SenateCommittee Hearing 02:30
3/31/2025SenateIntroduced, first reading, (emergency), referred Industry and Business Committee
3/7/2025SenateReceived from House
2/24/2025SenateSecond reading, passed, yeas 90 nays 0, Emergency clause carried
2/21/2025HouseAmendment adopted, placed on calendar
2/20/2025HouseReported back amended, do pass, amendment placed on calendar 11 0 3
2/19/2025HouseCommittee Hearing 02:30
2/11/2025HouseIntroduced, first reading, (emergency), referred Industry, Business and Labor Committee
1/20/2025House
Bill Text
Adopted by the House Industry, Business and Labor Committee
Adopted by the Senate Industry and Business Committee
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with Senate Amendments
INTRODUCED
Prepared by the Legislative Council staff for Senator Sickler
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