AB43,,8737 4. Performing certification in a specialized care program.

AB43,,8738 5. Providing compliance support.

AB43,,8739 6. Setting flat fees for generic drugs.

AB43,,8740 7. Assisting with store layout.

AB43,,8741 8. Managing inventory.

AB43,,8742 9. Providing marketing support.

AB43,,8743 10. Providing management and analysis of payment and drug dispensing data.

AB43,,8744 11. Providing resources for retail cash cards.

AB43,,8745 (b) “Independent pharmacy” means a pharmacy operating in this state that is licensed under s. 450.06 or 450.065 and is under common ownership with no more than 2 other pharmacies.

AB43,,8746 (c) “Pharmacy benefit manager” has the meaning given in s. 632.865 (1) (c).

AB43,,8747 (d) “Pharmacy services administrative organization” means an entity operating in this state that does all of the following:

AB43,,8748 1. Contracts with an independent pharmacy to conduct business on the independent pharmacy’s behalf with a 3rd-party payer.

AB43,,8749 2. Provides at least one administrative service to an independent pharmacy and negotiates and enters into a contract with a 3rd-party payer or pharmacy benefit manager on behalf of the independent pharmacy.

AB43,,8750 (e) “Third-party payer” means an entity, including a plan sponsor, health maintenance organization, or insurer, operating in this state that pays or insures health, medical, or prescription drug expenses on behalf of beneficiaries.

AB43,,8751 (2) Licensure. (a) Beginning on the first day of the 12th month beginning after the effective date of this paragraph .... [LRB inserts date], no person may operate as a pharmacy services administrative organization in this state without being licensed by the commissioner as a pharmacy services administrative organization under this section. In order to obtain a license, the person shall apply to the commissioner in the form and manner prescribed by the commissioner. The application shall include all of the following:

AB43,,8752 1. The name, address, telephone number, and federal employer identification number of the applicant.

AB43,,8753 2. The name, business address, and telephone number of a contact person for the applicant.

AB43,,8754 3. The fee under s. 601.31 (1) (nw).

AB43,,8755 4. Evidence of financial responsibility of at least $1,000,000.

AB43,,8756 5. Any other information required by the commissioner.

AB43,,8757 (b) The term of a license issued under par. (a) shall be 2 years from the date of issuance.

AB43,,8758 (3) Disclosure to the commissioner. (a) A pharmacy services administrative organization licensed under sub. (2) shall disclose to the commissioner the extent of any ownership or control of the pharmacy services administrative organization by an entity that does any of the following:

AB43,,8759 1. Provides pharmacy services.

AB43,,8760 2. Provides prescription drug or device services.

AB43,,8761 3. Manufactures, sells, or distributes prescription drugs, biologicals, or medical devices.

AB43,,8762 (b) A pharmacy services administrative organization licensed under sub. (2) shall notify the commissioner in writing within 5 days of any material change in its ownership or control relating to an entity described in par. (a).

AB43,,8763 (4) Rules. The commissioner may promulgate rules to implement this section.

AB43,3089 Section 3089. 632.865 (2m) of the statutes is created to read:

AB43,,8765 632.865 (2m) Fiduciary duty and disclosures to health benefit plan sponsors. (a) A pharmacy benefit manager owes a fiduciary duty to the health benefit plan sponsor to act according to the health benefit plan sponsor’s instructions and in the best interests of the health benefit plan sponsor.