SB 121 — An Act relating to the Board of Pharmacy; relating to insurance; relating to pharmacies; relating to pharmacists; relating to pharmacy benefits managers; relating to patient choice of pharmacy; and providing for an effective date.
Last action — (S) COSPONSOR(S): CLAMAN
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
509 added · 600 removedPlain-language change summary
In the updated version of SB 121, several key changes were made, including how entities involved in drug manufacture and distribution are licensed and regulated. The new draft adds a requirement for training on administering epinephrine auto-injectors, which reflects a broader focus on emergency health training for pharmacists. Additionally, the legislation now specifies that licensed pharmacists must register with a controlled substance database when dispensing certain medications, enhancing monitoring and safety. Overall, these updates aim to improve public health and ensure better oversight in the pharmaceutical sector.
33-LS0310\H33-LS0310\S SPONSOR SUBSTITUTE FOR SENATE BILL NO.
2/8/243/31/23 Referred:
SB0121BSB0121A -1- SSSBSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H33-LS0310\S (4) adopt regulations to carry out the purposes of this chapter;
(10) licenseissue andlicenses regulateto thepersons qualifications of entities and individuals engaged in the manufacture orand distribution of drugs and related devices;
(12) establish standards for the independent prescribing and administration of vaccines and related emergency medications under AS 08.80.168, including the completion of an immunization training program approved by the boardboard; and an epinephrine auto-injector training program under AS 17.22.020(b);
(14) require that a licensed pharmacist who dispenses a schedule II, III, or IV controlled substance under federal law to a person in the state register with the controlled substance prescription database under AS 17.30.200(n);
(15) establish the qualifications and duties of the executive SSSB 121 -2- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H administrator and delegate authority to the executive administrator that is necessary to conduct board business;
SB 121 -2- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S (16) license and inspect the facilities of pharmacies, manufacturers, wholesale drug distributors, third-party logistics providers, and outsourcing facilities located outside the state under AS 08.80.159;
(17) licensefor Internet-baseda pharmaciesprescription providingdrug servicesthat the United States Food and Drug Administration or the prescription drug's manufacturer has not approved for self-administration, prohibit, limit, or provide conditions relating to residentsthe indispensing of the state;prescription drug, including establishing specifications to ensure the effectiveness and security of a prescription drug to be administered by infusion or otherwise administered in a clinical setting.
(18) adopt regulations pertaining to retired pharmacist status;
(19) prohibit, limit, or provide conditions relating to the dispensing of a prescription drug that the United States Food and Drug Administration or the prescription drug's manufacturer has not approved for self-administration to ensure the effectiveness and security of a prescription drug to be administered by infusion or in a clinical setting.
AS 21.27.90121.27.901(b) is amended to read:
Sec.(b) A pharmacy benefits manager registered under AS 21.27.630 may (1) contract with an insurer to administer or manage pharmacy benefits provided by an insurer for a covered person, including claims processing services for and audits of payments for prescription drugs and medical devices and supplies;
21.27.901.
Registration of pharmacy benefits managers;
scope of business practice.
(a) A person may not conduct business in the state as a pharmacy benefits manager unless the person is registered with the director [AS A THIRD- PARTY ADMINISTRATOR UNDER AS 21.27.630].
(b) A pharmacy benefits manager registered under this section [AS 21.27.630] may (1) contract with an insurer to administer or manage pharmacy benefits provided by an insurer for a covered person, including claims processing services for and audits of payments for prescription drugs and medical devices and supplies;
AS 21.27.901 is amended by adding a new subsectionssubsection to read:
(c) AEach day that a pharmacy benefits manager (1)conducts shallbusiness applyin forthe registrationstate followingas thea samepharmacy proceduresbenefits formanager SB0121Bwithout -3-being SSSBregistered 121as Newrequired Textby Underlined(a) [DELETEDof TEXTthis BRACKETED]section 33-LS0310\His licensurea setseparate outviolation inof ASthis 21.27.040;section.
(2) is subject to hearings and orders on violations;
denial, nonrenewal, suspension, or revocation of registration;
penalties;
and surrender of registration under the procedures set out in AS 21.27.405 - 21.27.460.
(d) Each day that a pharmacy benefits manager conducts business in the state as a pharmacy benefits manager without being registered is a separate violation of this section, and each separate violation is subject to the maximum civil penalty under AS 21.97.020.
AS 21.27.905(a) is amended to read:
(a) A pharmacy benefits manager shall biennially renew a registration with the director following the procedures for license renewal in AS 21.27.380.
* Sec.
5.
AS 21.27 is amended by adding a new section to read:
Sec.
21.27.907.
Fiduciary duty.
(a) A pharmacy benefits manager owes a fiduciary duty to a plan sponsor.
A pharmacy benefits manager shall adhere to the practices set out in this section.
(b) A pharmacy benefits manager shall (1) perform the manager's duties with care, skill, prudence, and diligence and in accordance with the standards of conduct applicable to a fiduciary in an enterprise of a like character and with like aims;
and (2) notify the plan sponsor in writing of any activity, policy, or practice of the pharmacy benefits manager that directly or indirectly presents any conflict of interest with the duties imposed by this chapter.
(c) A pharmacy benefits manager that receives from a drug manufacturer or labeler a payment or benefit of any kind in connection with the use of a prescription drug by a covered person, including a payment or benefit based on volume of sales or market share, shall pass that payment or benefit on in full to the plan sponsor.
This provision does not prohibit the insurer from agreeing by contract to compensate the pharmacy benefits manager by returning a portion of the benefit or payment to the pharmacy benefits manager.
(d) Upon request by a plan sponsor, a pharmacy benefits manager shall (1) provide information showing the quantity of drugs purchased by SSSB 121 -4- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H the covered person and the net cost to the covered person for the drugs;
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the information must include all rebates, discounts, and other similar payments;
if requested by the plan sponsor, the pharmacy benefits manager shall provide the quantity and net cost information on a drug-by-drug basis by National Drug Code registration number rather than on an aggregated basis;
and (2) disclose to the plan sponsor all financial terms and arrangements for remuneration of any kind that apply between the pharmacy benefits manager and a prescription drug manufacturer or labeler, including formulary management and drug- substitution programs, educational support, claims processing, and data sales fees.
(e) A pharmacy benefits manager providing information to a plan sponsor under (d) of this section may designate that information as confidential.
Information designated as confidential may not be disclosed by the plan sponsor to another person without the consent of the pharmacy benefits manager, unless ordered by a court.
(f) If a pharmacy dispenses a substitute prescription drug for a prescribed drug to a covered person and the substitute prescription drug costs more than the prescribed drug, the pharmacy benefits manager shall disclose to the plan sponsor the cost of both drugs and any benefit or payment directly or indirectly accruing to the pharmacy benefits manager as a result of the substitution.
The pharmacy benefits manager shall transfer in full to the plan sponsor a benefit or payment received in any form by the pharmacy benefits manager as a result of a prescription drug substitution.
* Sec.
6.
(3) [(2)] provide and keep current a telephone number at which a network pharmacy may contact an employee of a pharmacy benefits manager [TO SB0121A -3- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S DISCUSS THE PHARMACY'S APPEAL];
SB0121B -5- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (5) [(4)] review and update [APPLICABLE] list information at least once every seven [BUSINESS] days to ensure [REFLECT MODIFICATION OF] list pricing reflects current national drug database pricing;
7.5.
(b) Before placing or maintaining a specific drug on the list, a pharmacy benefits manager shall ensure that (1) if the drug is therapeutically equivalent and pharmaceutically equivalent to a prescribed drug, the drug is listed as therticallythtically equivalent and pharmaceutically equivalent "A" or "B" rated in the most recent edition or supplement of the United States Food and Drug Administration's Approved Drug Products with Therapeutic Equivalence Evaluations, also known as the Orange Book;
8.6.
and SB 121 -4- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S (3) specify for each drug (A) the national drug code;
SSSB 121 -6- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (C) the wholesale acquisition cost, if available;
and (D) the reimbursement amount;amount.
and (4) specify the date on which a drug is added or removed from the list.
(4) "significant price update or modification" means (A) an increase or decrease of 10 percent or more in the pharmacy acquisition cost from 60 percent or more of the pharmaceutical wholesalers doing business in the state;
SB0121A -5- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S * Sec.
9.7.
(a) A pharmacy benefits manager shall SB0121B -7- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H reimburse a pharmacy or pharmacist for a drug in an amount not less than the national average drug acquisition cost for the drug on the date that the drug is administered or dispensed.
(b) In addition to the reimbursement required under (a) of this section, a pharmacy benefits manager shall reimburse the pharmacy or pharmacist for a professional dispensing fee setthat is not less than the pharmacy dispensing fee applicable to providers in the state as listed in the Alaska Medicaid Fee Schedules and Covered Codes provided by the director.Department of Health on the date that the drug is administered or dispensed.
(c) The director shall periodically review dispensing fees paid under coverage provided to individuals entitled to medical benefits under AS 39.30.091 and available cost of dispensing surveys, including surveys conducted by the Department of Health for the medical assistance program under AS 47.07 and the national average drug acquisiton cost retail price survey conducted by the federal Centers for Medicare and Medicaid Services.
The director shall set and adjust the professional dispensing fee accordingly.
The director shall adjust the professional dispensing fee at least once every five years.
10.8.
or SSSB 121 -8- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (2) restrict access to drugs by limiting distribution of a drug through an affiliate, except to the extent necessary to meet limited distribution requirements of the United States Food and Drug Administration or to ensure the appropriatearopriate dispensing SB 121 -6- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S of a drug that requires extraordinary special handling, provider coordination, or patient education when those requirements cannot be met by a network pharmacy;
(c) An insurer or its pharmacy benefits manager shall act on a pharmacy's or pharmacist's request for a direct service agreement or a network pharmacy agreement not later than 30 days after the insurer or its pharmacy benefits manager receives the pharmacy's or pharmacist's request or, if the insurer or its pharmacy benefits manager SB0121B -9- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H requests supplemental information, 30 days after the insurer or its pharmacy benefits manager receives the supplemental information.
(d) A network pharmacy or a pharmacy applying to become a network SB0121A -7- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S pharmacy under this section shall be presumed to meet the requirements of a specialty pharmacy upon its assertion that it meets the requirements of a specialty pharmacy.
(5) interfere with the right of a covered person to obtain a clinician- SSSB 121 -10- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H administered drug from the provider or pharmacy of the person's choice, including by inducement, steering, or offering or promoting financial or other incentives;
(6) limit or exclude coverage for a clinician-administered drug when SB 121 -8- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S not dispensed by a pharmacy or acquired from an entity selected by the insurer or its pharmacy benefits manager when the drug would otherwise be covered;
11.9.
(4) "list" means a [THE] list of [MULTI-SOURCE GENERIC] drugs for which a pharmacy benefits manager has established predetermined reimbursement amounts, or methods for determining reimbursement amounts, to be paid to a network pharmacy or pharmacist for pharmacy services, [AMOUNT SB0121B -11- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H HAS BEEN ESTABLISHED] such as a maximum allowable cost or maximum allowable cost list or any other list of prices used by a pharmacy benefits manager;
12.10.
SB0121A -9- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S (6) "network pharmacy" means a pharmacy or pharmacist who, under a contract or agreement with the insurer or its pharmacy benefits manager, has agreed to provide pharmacy services to a covered person with an expectation of receiving payment, other than in-network coinsurance, copayments, or deductibles, directly or indirectly from the insurer;
13.11.
(18) "plan"provider" sponsor"means hasa physician, pharmacist, hospital, clinic, hospital outpatient department, pharmacy under the meaningcommon givenownership or control of a provider, or other person licensed or otherwise authorized in ASthis 21.54.500;state to furnish health care services;
(19) "provider""wholesale meansacquisition acost" physician,has pharmacist, hospital, clinic, hospital outpatient department, pharmacy under the commonmeaning ownershipgiven or control of a provider, or other person licensed or otherwise authorized in this42 stateU.S.C. to furnish health SSSB 121 -12- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H care services;
(20) "wholesale acquisition cost" has the meaning given in 42 U.S.C.
14.12.
AS 21.36 is amended by adding a new section to article 5 to read:
SB 121 -10- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S Sec.
21.36.520.21.36.126.
SB0121B -13- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (9) impose a reduction in reimbursement for pharmacy services because of the person's choice among pharmacies that have agreed to participate in the plan according to the terms offered by the insurer or its pharmacy benefits manager;
(10) use a covered person's pharmacy services data collected under the SB0121A -11- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S provision of claims processing services for the purpose of soliciting, marketing, or referring the person to an affiliate of the pharmacy benefits manager;
(14) prohibit or limit a network pharmacy from informing an insured person of the difference between the out-of-pocket cost to the covered person to purchase a drug, medical device, or supply using the covered person's pharmacy SSSB 121 -14- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H benefits and the pharmacy's usual and customary charge for the drug, medical device, or supply;
(16) assess, charge, or collect a form of remuneration that passes from SB 121 -12- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S a pharmacy or a pharmacist in a pharmacy network to the pharmacy benefits manager including claim processing fees, performance-based fees, network participation fees, or accreditation fees;fees.
(17) reverse and resubmit the claim of a pharmacy more than 30 days after the date the claim was first adjudicated, and may not reverse and resubmit the claim of a pharmacy unless the insurer or pharmacy benefits manager (A) provides prior written notification to the pharmacy;
(B) has just cause;
(C) first attempts to reconcile the claim with the pharmacy;
and (D) provides to the pharmacy, at the time of the reversal and resubmittal, a written description that includes details of and justification for the reversal and resubmittal.
(f) TheIn directorthis maysection, adopt(1) regulations"affiliate" tohas providethe ameaning grievancegiven procedurein forAS complaints21.27.951(a)(2); alleging a violation of this section.
(g) In this section, SB0121B -15- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (1) "affiliate" has the meaning given in AS 21.27.951(a)(2);
(9) "out-of-pocket cost" means a deductible, coinsurance, copayment, SB0121A -13- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S or similar expense owed by a covered person under the terms of the covered person's health care insurance plan;
15.13.
16.14.
(a) If a municipality offers a group health care insurance plan covering municipal employees, including by means of self-insurance, the municipal health care insurance plan, including the administration and management of pharmacy benefits under the plan, is subject to the requirements of AS 21.27.901 - 21.27.955 and AS 21.36.520.21.36.126.
SSSB 121 -16- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (c) In this section, "health care insurance plan" has the meaning given in AS 21.54.500.
17.15.
(2) each eligible employee of the state, the spouse and the unmarried children chiefly dependent on the eligible employee for support, and each eligible employee of another participating governmental unit shall be covered by the group SB 121 -14- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S policy, unless exempt under regulations adopted by the commissioner of administration;
an excess loss SB0121B -17- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H insurance policy may be obtained from a life or health insurer authorized to transact business in this state under AS 21.09 or from a hospital or medical service corporation authorized to transact business in this state under AS 21.87;
the lowest responsible bid submitted by an insurance carrier, hospital or medical service corporation, or third-party administrator with adequate servicing facilities shall govern selection of a carrier, hospital or medical service corporation, or SB0121A -15- SB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S third-party administrator under this section or the selection of an insurance carrier or a hospital or medical service corporation to provide excess loss insurance as provided in AS 39.30.091;
SSSB 121 -18- SB0121B New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H (10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for that person and eligible dependents under this section;
(12) each licensee holding a current operating agreement for a vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that SB 121 -16- SB0121A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\S applies to governmental units other than the state;
(13) a group health insurance policy covering employees of a participating governmental unit must meet the requirements of AS 21.27.901 - 21.27.955 and AS 21.36.520,21.36.126, including requirements relating to administration and management of pharmacy benefits under the policy.
18.16.
A self-insured group medical plan covering active state employees provided under this section is subject to the requirements of AS 21.27.901 - 21.27.955 and AS 21.36.520,21.36.126, including requirements relating to administration and management of pharmacy SB0121B -19- SSSB 121 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0310\H benefits under the plan.
19.17.
(58) violating AS 21.36.520(a)21.36.126(a) (insurers and pharmacy benefits managers), if the violation is committed or performed with a frequency that indicates a general business practice.
20.18.
21.19.
This Act applies to a contract between a pharmypharmacy acbenefitsbenefits manager and a pharmacy or pharmacist entered into, renewed, or amended on or after the effective date of secs.this Act.
1 - 21 of this Act.
22.20.
TheThis uncodifiedAct lawtakes ofeffect theJuly State1, of2024. Alaska is amended by adding a new section to read:
TRANSITION:SB0121A -17- SB 121 New Text Underlined [DELETED TEXT BRACKETED]
REGULATIONS.
The Department of Commerce, Community, and Economic Development and the Department of Administration may adopt regulations necessary to implement the changes made by this Act.
The regultions take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law implemented by the regulation.
* Sec.
23.
Section 22 of this Act takes effect immediately under AS 01.10.070(c).
* Sec.
24.
Except as provided in sec.
23 of this Act, this Act takes effect July 1, 2025.
SSSB 121 -20- SB0121B New Text Underlined [DELETED TEXT BRACKETED]
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Action History
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(S) COSPONSOR(S): CLAMAN
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(S) Minutes (SL&C)
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(S) Heard & Held
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(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
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(S) Minutes (SL&C)
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(S) Heard & Held
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(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
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(S) Minutes (SL&C)
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(S) Heard & Held
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(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
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(S) Minutes (SL&C)
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(S) Heard & Held
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(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
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(H) Minutes (HHSS)
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(H) HEALTH & SOCIAL SERVICES at 03:00 PM DAVIS 106
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(S) COSPONSOR(S): GRAY-JACKSON
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(S) REFERRED TO LABOR & COMMERCE
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(S) L&C, FIN
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(S) SPONSOR SUBSTITUTE INTRODUCED - REFERRALS
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(S) COSPONSOR(S): MYERS, TOBIN
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(S) COSPONSOR(S): BJORKMAN
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(S) L&C, FIN
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(S) READ THE FIRST TIME - REFERRALS
Sponsors
- Matt Claman · Cosponsor
- Elvi Gray-Jackson · Cosponsor
- Löki Tobin · Cosponsor
- Robert Myers · Cosponsor
- Jesse Bjorkman · Cosponsor
- Cathy Giessel · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 5 co-sponsors · 59 not signed on
Sponsors (1)
Co-sponsors (5)
Not signed on (59)
59 members have not signed on to this bill.
Show all 59 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 121?
- SB 121 is sponsored by Matt Claman (D), Elvi Gray-Jackson (D), Löki Tobin (D), Robert Myers (R), Jesse Bjorkman (R), and Cathy Giessel (R).
- What is the current status of SB 121?
- This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 121?
- Track SB 121 free on One Click Politics — get push/email alerts when it moves.
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