This bill amends New Mexico’s Pharmacy Benefits Manager (PBM) Regulation Act to introduce several new definitions and prohibit certain practices by pharmacy benefits managers. The bill defines new terms like “patient steering,” which includes directing patients to use specific pharmacies through mandatory mail order, restricted pharmacy networks, or copay differentials, and “spread pricing,” where PBMs reimburse pharmacies at a lower rate than they bill insurers. The legislation prohibits PBMs from engaging in patient steering or spread pricing, and adds new restrictions on their operations, such as preventing them from requiring pharmacies to participate in multiple contracts, mandating clear contract language, and ensuring pharmacists can discuss drug pricing and alternatives with patients. The bill also introduces protections for pharmacies, including a provision that minor clerical errors during audits cannot be considered fraud or be used as a basis for recoupment. Additionally, the bill requires PBMs to provide transparency by making contracts and other documents available upon request and submitting network adequacy reports to the superintendent of insurance, who is granted the authority to examine PBM records to ensure compliance with the law.