All Roll Calls
Yes: 224 • No: 5
North DakotaHB 15842025 Regular SessionHouseWALLET
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)
Became Law
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 2 costs, 2 mixed.
Fairer PBM contracts for pharmacies
PBMs must follow state drug substitution rules. They cannot force a pharmacy to join one contract to join another. They cannot drop a qualified pharmacy that accepts the PBM’s terms and pay rates. Opt-in contracts must give at least 30 days to respond and require a signature. A pharmacy can leave a PBM contract with at least 90 days’ notice.
PBMs must be licensed in-state
To run a PBM in North Dakota, you must have an administrator license from the insurance commissioner. Operating without a license is a class C felony. Licenses run April 30 through March 31; renew by April 30. Initial fees can be up to $250; renewal up to $100. Each filing must show $1,000,000 in financial responsibility. Licenses are nontransferable and must show the expiration date. The commissioner may ask for more information. Initial fees are not refunded; renewal fees are returned if renewal is denied.
Stronger penalties and PBM enforcement
The insurance commissioner can use all powers in state law, including subpoenas, to enforce PBM rules. The attorney general may also investigate and prosecute, and agencies can work together. A PBM can be fined up to $10,000 per violation. A second or later violation can bring a civil penalty up to $50,000. The commissioner may suspend or revoke a license and order restitution to affected entities or people. PBMs get a hearing. The commissioner must adopt needed rules before implementation.
More transparency on PBM rebates
During examinations, the insurance commissioner reviews contracts between covered entities and PBMs to see if PBM payments lowered plan rates or reached members. Covered entities must report each year what benefits came from PBM payments and how they were used. PBM payments include rebates, manufacturer fees, network fees, pharmacy price concessions, and other program or data fees. Most disclosures are trade secrets, but a final order against a PBM is public.
Who these PBM rules cover
The law defines a PBM as someone who manages drug benefits for others under a contract. It does not treat public self-funded pools, a single-employer self-funded plan serving its own people, or an insurer running PBM services for its own insureds as PBMs here. It defines covered entities to include nonprofit hospitals, insurers, health plans, HMOs, state health programs, and employers or unions that provide coverage in North Dakota. Self-funded ERISA plans, federal employee plans, and limited plans without drug coverage are not covered.
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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