An act protecting 340B contract pharmacies

Section 1. Title

This act shall be known as and may be cited as the “An Act protecting 340B contract pharmacies.”

Section 2. Definitions

(A) “340B drug” means a drug that a 340B entity may purchase at a reduced price pursuant to 42

U.S.C. § 256b.

(B) “340B entity” means an entity authorized to participate in the federal 340B drug discount

program, as described in 42 U.S.C. § 256b(a)(4).

(C) “Manufacturer” has the meaning given the term in section 1927(k) of the Social Security

Act.

Section 3. Prohibition of Certain Discriminatory Actions by a Manufacturer or

Distributor

(A) A manufacturer, an agent or affiliate of such manufacturer, or distributor or third-party

logistics provider of a manufacturer’s drugs, shall not, directly or indirectly, deny, restrict,

or prohibit the acquisition of a 340B drug by, or delivery of a 340B drug to, any location

authorized by a 340B entity to receive such 340B drug, unless receipt of the 340B drug is

prohibited by federal law.

(B) A manufacturer, an agent or affiliate of such manufacturer, or distributor or third-party

logistics provider shall not, either directly or indirectly, require a 340B entity to submit

any claims or utilization data as a condition for allowing the acquisition of a 340B drug

by, or delivery of a 340B drug to, a 340B entity unless the claims or utilization data

sharing is required by federal law.

Section 4. Violations

(A) A violation of any provision of this Act by a manufacturer or distributor or third-party

logistics provider of a manufacturer’s drugs constitutes a section 11 violation of the Massachusetts

Consumer Protection Act.

(B) Each package of 340B drugs determined to be subject to a prohibited act under Section 3

constitutes a separate violation under this section.

Section 5. Federal Preemption

(A)Nothing in this Chapter is to be construed or applied to be in conflict with federal law and

related regulations, including 21 U.S.C. § 355-1, or other laws of this state, if the state

law is compatible with applicable federal law.

Section 6. Severability

The individual provisions of this Act are severable. If any provision or item of this Act, or the

application thereof, is held invalid, such invalidity shall not affect any other provision, item, or

application of the Act which can be given effect without the invalid provision, item, or

application.

Section 7. Effective Date

This Act shall become effective upon being enacted into law.