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SF3271 (Legislative Session 94 (2025-2026))

Independent audits of 340B entity reporting by nonprofit public interest organizations authorization; revenue from prescription drugs obtained under the 340B program to be used for charity care; enforcement by the attorney general authorization

AI Generated Summary

Purpose of the Bill

This bill aims to regulate the use of revenue generated by nonprofit organizations within the 340B Drug Pricing Program in Minnesota. It seeks to ensure that a portion of these revenues is used for charitable purposes. Additionally, it authorizes independent audits to maintain transparency and compliance.

Main Provisions

  • Independent Audits: The bill allows nonprofit public interest organizations to conduct independent audits of 340B covered entities to verify compliance with reporting requirements and financial regulations.

  • Charity Care Requirement: The bill mandates that 340B covered entities must allocate 25% of their net revenue from the 340B program towards providing charity care. Medical debt write-offs and community services are excluded from these charity care expenditures.

  • Confidentiality and Reporting: Nonprofit auditing organizations must keep all data obtained during audits confidential. However, they can report audit findings and offer recommendations to legislative committees concerned with health and human services policy and finance.

  • Enforcement Mechanism: Apart from the primary enforcement responsibilities of the relevant commissioner, the Attorney General is also authorized to enforce the provisions of this bill.

Significant Changes

  • 340B Revenue Allocation: Introduces a new requirement for 340B covered entities to use a significant portion of their revenue specifically for charity care, providing a more structured approach to how these entities utilize their funds.

  • Role of Attorney General: Empowers the Attorney General to have a direct role in enforcing compliance, ensuring that entities adhere to the new financial obligations.

Relevant Terms

340B Program, drug discount program, nonprofit public interest organizations, independent audits, charity care, medical debt write-offs, Attorney General enforcement.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionReferred toHealth and Human Services

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends existing definitions related to the 340B program.",
      "modified": [
        "Clarifies definitions relevant to 340B entities within Minnesota."
      ]
    },
    "citation": "62J.461",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Allows for audits of 340B covered entities by nonprofit organizations."
      ],
      "removed": [],
      "summary": "Introduces a new provision for independent audits by nonprofit public interest organizations.",
      "modified": []
    },
    "citation": "62J.461",
    "subdivision": "subdivision 3a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Grants certain enforcement powers to the attorney general.",
      "modified": [
        "Extends attorney general's enforcement powers to cover compliance with section 144.5875."
      ]
    },
    "citation": "8.31",
    "subdivision": ""
  }
]

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