The House Judiciary Committee Substitute for House Bill 540 removes the provisions in the HHHC substitute related to manufacturers and also removes the provisions regarding Pharmacy Benefit Manager (PBM) reporting to OSI. The HJC substitute retains the provisions that prohibit PBMs from discriminating against a 340B covered entity on the basis of its participation in the federal 340B program by: 1) Reimbursing a covered entity for a 340B drug at a rate lower than that paid for the same drug to pharmacies that are non-covered entities for 340B; 2) Assessing a fee, chargeback or other adjustment to the covered entity that is not assessed to non-covered entities; 3) Imposing a provision that prevents or interferes with a person’s choice to receive 340B drugs from a covered entity; or 4) Imposing terms or conditions that differ from terms or conditions imposed on a non-covered entity. House Bill 540 would prohibit a Pharmacy Benefit Manager (PBM) from engaging in activities or imposing terms and conditions that would discriminate against an entity utilizing the federal 340B drug pricing program pursuant to the federal Public Health Act. HB540 would ensure the continued availability of discounted drug pricing for covered entities under the 340B drug pricing program.