Pennsylvania SB 190: An Act providing for pharmaceutical transparency; establishing the Pharmaceutical Transparency Review Board and providing for its powers and duties; establishing the Pharmaceutical Transparency Review Fund; and imposing a penalty.

Bill Text

PRINTER'S NO. 140
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 190
Session of
2025
INTRODUCED BY STREET, KEARNEY, HUGHES, COSTA, KANE, SCHWANK AND
LAUGHLIN, JANUARY 29, 2025
REFERRED TO BANKING AND INSURANCE, JANUARY 29, 2025
AN ACT
Providing for pharmaceutical transparency; establishing the
Pharmaceutical Transparency Review Board and providing for
its powers and duties; establishing the Pharmaceutical
Transparency Review Fund; and imposing a penalty.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the
Pharmaceutical Transparency Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board." The Pharmaceutical Transparency Review Board
established in section 3(a).
"Fund." The Pharmaceutical Transparency Review Fund
established in section 8(a).
"Manufacturer." An entity that:
(1) Does the following:
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(i) engages in the manufacture of a prescription
drug product; or
(ii) enters into a lease with another manufacturer
to market and distribute a prescription drug product
under the entity's own name.
(2) Sets or changes the wholesale acquisition cost of
the prescription drug product that the entity manufactures or
markets.
"Prescription drug product." Any of the following:
(1) A brand name drug licensed under a new drug
application.
(2) A generic drug licensed under an abbreviated new
drug application.
(3) A biologic licensed under a biologic license
application.
Section 3. Pharmaceutical Transparency Review Board.
(a) Establishment.--The Pharmaceutical Transparency Review
Board is established as an independent board. The board shall be
an instrumentality of the Commonwealth and a body corporate and
politic.
(b) Purpose.--The purpose of the board is to review high-
cost prescription drug products and develop recommendations for
addressing affordability burdens faced by residents, State and
local government agencies, commercial health plans, health care
providers, employers, pharmacies licensed in this Commonwealth
and other stakeholders.
(c) Composition.--
(1) The board shall be composed of the following
individuals, who must have expertise in health care economics
or clinical medicine:
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(i) One member appointed by the Governor who shall
act as chair.
(ii) One member appointed by the President pro
tempore of the Senate.
(iii) One member appointed by the Speaker of the
House of Representatives.
(iv) One member appointed by the Majority Leader of
the Senate.
(v) One member appointed by the Majority Leader of
the House of Representatives.
(vi) One member appointed by the Minority Leader of
the Senate.
(vii) One member appointed by the Minority Leader of
the House of Representatives.
(2) A member may not be an employee of, a board member
of or a consultant to a manufacturer or trade association for
manufacturers.
(3) In appointing members to the board, an appointing
authority shall consider and disclose a conflict of interest,
including whether the individual has an association,
including a financial or personal association, that has the
potential to bias or has the appearance of biasing an
individual's decision in matters related to the board or the
conduct of the board's activities.
(d) Term of office.--
(1) Except as provided under paragraph (2), the term of
a member of the board is five years.
(2) The terms of the initial members of the board are as
follows:
(i) Members appointed under subsection (c)(1)(iv)
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and (vi) shall serve initial terms of three years.
(ii) Members appointed under subsection (c)(1)(v)
and (vii) shall serve initial terms of four years.
(iii) Members appointed under subsection (c)(1)(i),
(ii) and (iii) shall serve initial terms of five years.
(e) Board staff.--The chair shall appoint an executive
director, general counsel and other staff for the board to the
extent funds are available to the board for this purpose.
(f) Compensation.--A member of the board:
(1) May receive compensation as a member of the board in
conformity with the rules of the Executive Board.
(2) Is entitled to reimbursement for expenses in
accordance with Commonwealth regulations.
(g) Quorum.--A majority of the members of the board shall
constitute a quorum for the purposes of conducting the business
of the board.
(h) Meetings.--
(1) The board shall meet for the following purposes:
(i) Subject to subparagraphs (ii) and (iv), the
board shall meet in open session at least once each
quarter to review prescription drug product information.
(ii) The following actions of the board shall be
made in open session:
(A) Deliberations on wheth