SJR 7: DIRECTING THE STATE EMPLOYEE BENEFITS COMMITTEE AND THE SECRETARY OF HUMAN RESOURCES TO ENGAGE WITH INDEPENDENT CONSULTANTS AND OTHER SUPPLY CHAIN TACTICS FOR COST CONTAINMENT OF PRESCRIPTION DRUGS FOR STATE EMPLOYEES AND RETIREES’ INSURANCE PROGRAMS.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

This is a Substitute for Senate Joint Resolution No. 7. Like Senate Joint Resolution No. 7, this Substitute directs the State Employees Benefits Committee (SEBC) to utilize specific strategies and policies when interacting and contracting with Pharmacy Benefit Managers (PBM) in order to achieve lower cost pharmaceutical drug benefit plans for the State. This Substitute differs from Senate Joint Resolution No. 7 by clarifying that the SEBC has a duty to consider all of the following strategies and policies when negotiating for pharmaceuticals: 1. Drug cost transparency. 2. Formation of an independent Pharmacy and Therapeutics Committee. 3. Any other supply chain tactics such as a reverse auction or transparency committee. 4. Compacts with other states to negotiate directly with drug manufacturers. 5. Paying no higher price for all drugs negotiated by Medicare. 6. Requiring PBMs disclose administrative expenses for all pharmaceutical drugs. 7. Requiring PBMs bid based on lowest pricing sources, not average wholesale price. 8. Requiring the SEBC be provided all agreements between PBMs and pharmaceutical companies when those agreements are for drugs contracted for on behalf of the SEBC. 9. Performing audits when the SEBC believes it should be entitled to information to achieve transparency or clarity. This Substitute differs from Senate Joint Resolution No. 7 by directing the SEBC to prepare a report by August 1, 2026, to summarize any difficulties in implementing any of these policies and to submit the report to the Governor; the President Pro Tempore of the Senate and Speaker of the House of Representatives, for distribution to all members of the General Assembly; the Director and the Librarian of the Division of Legislative Services; and the Public Archives.

Sponsors

Sponsors by party (alphabetical): Democratic 8 · Republican 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 25, 2025Signed by Governor
2. July 1, 2025Passed By Senate. Votes: 21 YES
3. July 1, 2025Suspension of Rules in Senate
4. June 30, 2025Passed By House. Votes: 39 YES 1 ABSENT 1 VACANT
5. June 30, 2025Amendment HA 1 to SS 1 - Passed In House by Voice Vote
6. June 25, 2025Reported Out of Committee (Administration) in House with 5 On Its Merits
7. June 18, 2025Not Worked in Committee
8. June 11, 2025Not Worked in Committee
9. May 22, 2025Assigned to Administration Committee in House
10. May 21, 2025Passed By Senate. Votes: 19 YES 2 ABSENT
11. May 21, 2025was introduced and adopted in lieu of SJR 7