AB 259 — Establishes provisions governing prescription drugs. (BDR 40-165)

EXEMPTAssembly (ReprintedBill withNo. amendments adopted on April 17, 2025) FIRST REPRINT A.B.

259259–Assemblymembers AConsidine; SSEMBLY B ILLN O.

259–ASSEMBLYMEMBERS CONSIDINE ;AND A NDERSON FEBRUARY 19, 2025 ____________ Referred to Committee on Commerce and LaborAnderson SUMMARY—EstablishesCHAPTER.......... provisions governing prescription drugs.

(BDR 40-165) FISCAL NOTE:

EffEffect on the State:

Yes.May have Fiscal Impact.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

§§ 1395 et seq.) Existing federal law requires the United States Secretary of Health and Human Services to negotiate with the manufacturers of certain drugs and to establish the maximum fair price for certain drugs, which is the maximum price at which such drugs may be fair sold to a recipient of Medicare.

§§ 1320f-2, 1320f-3) Existing federal law requires the Secretary of Health and Human Services to publish those maximumor fairentity prices.that:

(42 U.S.C.

§ 1320f-4) Section 1 of this bill prohibits a person or entity that:

or (2) seeks reimbursement for a drug subject to a maximum fair price which is delivered, dispensed or administered to a person in this State from seeking reimbursement at a rate which is higher than the maximum fair price.

Section 1 exempts from suchtsuch at a prohibitions certain providers of health coverage under federal law but prescribes a procedure by which such a provider of health coverage may elect to be subject to the provisions of section 1.

(1) prohibits certain trade practices which are deemed to be engaging in deceptive trade practices;practices, including by prescribing criminal penalties to be imposed against a person who engages in a deceptive trade practice.

and(NRS (2)598.0903-598.0999) providesSection 1 makes it a deceptive trade practice for theany enforcementperson ofto violate the prohibition on bepurchasing imposedor againstseeking areimbursement personfor whoa engagesdrug inat a deceptiveprice tradehigher practice.than the maximum fair price.

(NRSnaltiesSections to1 598.0903-598.0999)and Section3 1of makesthis itbill provide that a deceptiveperson tradewho practiceviolates forthe anyprovisions personof section 1 is not subject to violateany thecriminal prohibitionpenalty onset purchasingforth orin seekingexisting reimbursementlaw for engaging in a drugdeceptive attrade practice, meaning such a priceperson higheris thansubject only to the maximumvarious faircivil price.enforcement measures, including civil penalties, set forth in existing law for engaging in a deceptive trade practice.

Sections(NRSExisting 1law andauthorizes 3any of this bill provide that a - *AB259_R1* – 2 – person who violatesis thea provisionsvictim of sectionconsumer 1fraud, isincluding not subject to any criminal penalty set forth in existing law for engaging in a deceptive trade practice, meaningto suchbring a person is subject only to the various civil enforcementaction. measures, including (NRS 598.097-598.0999)orth in existing law for engaging in a deceptive trade practice.

Existing law authorizes any person who is a victim of consumer fraud, including a deceptive trade practice, to bring a civil action.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

276 directed the Legislative Commission to appoint a committee to conduct an interim study concerning the cost of prescription drugs - 83rd Session (2025) – 2 – in this State and the impact of rebates, reductions in price and other remuneration from manufacturers on prescription drug prices;

21-9 also stated that “[i]ncreasing drug prices disproportionately affect uninsured and underinsured patients, while insured patients covered by high-deductible, commercial, or government-sponsored health insurance plans tend to pay more through premium and co-pay increases”;

andandlans tend W HEREAS , The Nevada Spending and Government Efficiency Commission noted in its final report, “Final Report of the Nevada Spending and Government Efficiency Commission to Governor Jim Gibbons,” published January 7, 2010, that the State of Nevada would realize significant savings on Medicaid, mental health, corrections and other programs if the cost of prescription drugs were better controlled;

and - *AB259_R1* – 3 – W HEREAS , Excessive costs of prescription drugs contribute significantly to rising costs for health care provided and paid for through health insurance programs for public employees, including employees of the State, municipalities, counties, school districts and institutions for higher education and retirees whose health costs are funded by taxpayer dollars, thereby threatening the ability of the State and local governments to fund other programs necessary for the public good and safety, such as public safety, police, fire and education;

and W HEREAS , To protect residents of this State from the negative effects from excessive costs of prescription drugs, and to protect the safety, health and economic well-being of Nevadans, the Legislature - 83rd Session (2025) – 3 – finds that legislation regarding affordable access to prescription drugs is necessary for residents of this State to achieve and maintain good health;

Except as otherwise provided in subsection 4, a violation of subsection 1 or 2 by any person constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

- *AB259_R1* – 4 – 6.

- 83rd Session (2025) – 4 – 8.

(b) “Price applicability period” has the meaning ascribed to it in 42 U.S.C.

period” has the meaning ascribed to it (c) “Referenced drug” means a drug subject to a maximum fair price.

4.upon any contract underlying the original transaction.

Any action brought pursuant to this section is not an action uponSec. any contract underlying the original transaction.

Sec.

Except as otherwise provided in NRS 598.0974, a person who violates a court order or injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, upon a - *AB259_R1* – 5 – complaint brought by the Commissioner, the Director, the district attorney of any county of this State or the Attorney General shall forfeit and pay to the State General Fund a civil penalty of not more than $10,000 for each violation.

Except as otherwise provided in NRS 598.0974, in any action brought pursuant to the provisions of NRS 598.0903 to 598.0999,- inclusive,83rd ifSession the(2025) court– finds5 that– a person has willfully engaged in a deceptive trade practice, the Commissioner, thethellfully Director, the district attorney of any county in this State or the Attorney General bringing the action may recover a civil penalty not to exceed $15,000 for each violation.

(b) For an offense involving a loss of property or services valued at $5,000 or more but less than $25,000, is guilty of a category C felony and shall be punished as provided in NRSNRS(c) 193.130.For an offense involving a loss of property or services valued at $25,000 or more but less than $100,000, is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years, and by a fine of not more than $10,000.

(c) For an offense involving a loss of property or services valued at $25,000 or more but less than $100,000, is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years, and by a fine of not more than $10,000.

 The court may require the natural person, firm, or officer or managing agent of the corporation or association to pay to the aggrieved party damages on all profits derived from the knowing and willful engagement in a deceptive trade practice and treble - *AB259_R1* – 6 – damages on all damages suffered by reason of the deceptive trade practice.

If a person violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.405 to 598.525, inclusive, 598.741 to 598.787, inclusive, 598.840 to 598.966, inclusive, or 598.9701 to 598.9718, inclusive, fails to comply with a judgment or order of any court in this State concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged- violation83rd ofSession such(2025) a– provision,6 the– Commissioner or the district attorney of any county may bring an action in the name of the State of Nevada seeking: