CA SB 41
enactedPharmacy benefits.
California · 2025-2026 Regular Session · upper
Quick answers
Did CA SB 41 pass?
Yes. CA SB 41 has been enacted into law as of 2025-10-11. Latest recorded action (2025-10-11): Chaptered by Secretary of State. Chapter 605, Statutes of 2025.
What is CA SB 41 about?
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a pharmacy benefit manager engaging in business with a health care service plan or health insurer to secure a license from the Department of Managed Health Care on or after January 1, 2027, or the date on which the department has established the licensure process, whichever is later. This bill would prohibit a pharmacy benefit manager from, among other things, requiring use of only an affiliated pharmacy, as specified, and from imposing requirements, conditions, or exclusions that discriminate against a nonaffiliated pharmacy in connection with dispensing drugs. The bill would limit a pharmacy benefit manager's income to that derived from a pharmacy benefit management fee for pharmacy benefit management services provided, and would require a pharmacy benefit manager to use a passthrough pricing model. The bill would authorize the Attorney General to recover specified civil penalties and receive equitable relief for violations of the pharmacy benefit manager licensing provisions. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program. The bill would also require a contract between a health insurer and a pharmacy benefit manager issued, amended, or renewed on or after January 1, 2027, or the date on which the Department of Managed Health Care has established the pharmacy benefit manager licensure process, whichever is later, to require the pharmacy benefit manager to be licensed and in good standing with the Department of Managed Health Care. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment apply to the applicable deductible. This bill would prohibit a health care service plan contract or health insurance policy issued, amended, or renewed on or after January 1, 2026, that provides prescription drug coverage from calculating an enrollee's or insured's cost sharing at an amount that exceeds the actual rate paid by the plan or insurer for the prescription drug, except as specified, and would require the contract or policy to include specified cost-sharing provisions. The bill would prohibit a contract between a pharmacy benefit manager and a health care service plan or health insurer that is executed, amended, or renewed on or after January 1, 2026, from authorizing spread pricing. Because a willful violation of the bill's requirements relative to health care service plans would be a crime, the bill would impose a state-mandated local program. This bill would declare that it does not narrow, abrogate, or otherwise alter the authority of the Attorney General to maintain or restore competitive, fair, and honest markets and prosecute violations of law, and would declare that the provisions of this bill are severable. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors CA SB 41?
Wiener is the primary sponsor of CA SB 41, joined by 6 cosponsors.
Description
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a pharmacy benefit manager engaging in business with a health care service plan or health insurer to secure a license from the Department of Managed Health Care on or after January 1, 2027, or the date on which the department has established the licensure process, whichever is later. This bill would prohibit a pharmacy benefit manager from, among other things, requiring use of only an affiliated pharmacy, as specified, and from imposing requirements, conditions, or exclusions that discriminate against a nonaffiliated pharmacy in connection with dispensing drugs. The bill would limit a pharmacy benefit manager's income to that derived from a pharmacy benefit management fee for pharmacy benefit management services provided, and would require a pharmacy benefit manager to use a passthrough pricing model. The bill would authorize the Attorney General to recover specified civil penalties and receive equitable relief for violations of the pharmacy benefit manager licensing provisions. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program. The bill would also require a contract between a health insurer and a pharmacy benefit manager issued, amended, or renewed on or after January 1, 2027, or the date on which the Department of Managed Health Care has established the pharmacy benefit manager licensure process, whichever is later, to require the pharmacy benefit manager to be licensed and in good standing with the Department of Managed Health Care. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment apply to the applicable deductible. This bill would prohibit a health care service plan contract or health insurance policy issued, amended, or renewed on or after January 1, 2026, that provides prescription drug coverage from calculating an enrollee's or insured's cost sharing at an amount that exceeds the actual rate paid by the plan or insurer for the prescription drug, except as specified, and would require the contract or policy to include specified cost-sharing provisions. The bill would prohibit a contract between a pharmacy benefit manager and a health care service plan or health insurer that is executed, amended, or renewed on or after January 1, 2026, from authorizing spread pricing. Because a willful violation of the bill's requirements relative to health care service plans would be a crime, the bill would impose a state-mandated local program. This bill would declare that it does not narrow, abrogate, or otherwise alter the authority of the Attorney General to maintain or restore competitive, fair, and honest markets and prosecute violations of law, and would declare that the provisions of this bill are severable. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
- Introduced
- 2024-12-03
- Latest action
- 2025-10-11 — Chaptered by Secretary of State. Chapter 605, Statutes of 2025.
- Bill type
- bill
- Last updated
- —
Subjects
Sponsors
- Wienerauthor
- Wahabauthor
- Weber Piersonprincipal coauthor
- Bontaprincipal coauthor
- Hadwickprincipal coauthor
- Schiavoprincipal coauthor
- Pellerincoauthor
Committees
Not provided by source.
Action timeline
2024-12-03
Introduced. To Com. on RLS. for assignment. To print.
introduction,referral-committee
2024-12-04
From printer. May be acted upon on or after January 3.
2025-01-06
Read first time.
reading-1
2025-01-29
Referred to Coms. on HEALTH and JUD.
referral-committee
2025-03-17
From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-04-02
Set for hearing April 23.
2025-04-08
Set for hearing April 29 in JUD. pending receipt.
2025-04-24
From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0. Page 867.) (April 23). Re-referred to Com. on JUD.
committee-passage,committee-passage-favorable,referral-committee
2025-04-30
From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 938.) (April 29). Re-referred to Com. on APPR.
committee-passage,committee-passage-favorable,referral-committee
2025-05-01
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-05-02
Set for hearing May 12.
2025-05-12
May 12 hearing: Placed on APPR. suspense file.
2025-05-16
Set for hearing May 23.
2025-05-23
From committee: Do pass. (Ayes 6. Noes 0. Page 1189.) (May 23).
committee-passage,committee-passage-favorable
2025-05-23
Read second time. Ordered to third reading.
reading-1,reading-2,reading-3
2025-05-28
Read third time. Passed. (Ayes 37. Noes 0. Page 1276.) Ordered to the Assembly.
passage,reading-1,reading-3
2025-05-28
In Assembly. Read first time. Held at Desk.
reading-1
2025-06-05
Referred to Coms. on HEALTH and JUD.
referral-committee
2025-06-30
From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-07-09
From committee: Do pass and re-refer to Com. on JUD. (Ayes 14. Noes 0.) (July 8). Re-referred to Com. on JUD.
committee-passage,committee-passage-favorable,referral-committee
2025-07-09
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-07-16
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 15).
amendment-passage,committee-passage,committee-passage-favorable,referral-committee
2025-07-17
Read second time and amended. Re-referred to Com. on APPR.
amendment-passage,reading-1,reading-2,referral-committee
2025-08-20
August 20 set for first hearing. Placed on APPR. suspense file.
2025-08-29
From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).
amendment-passage,committee-passage,committee-passage-favorable
2025-09-02
Read second time and amended. Ordered to second reading.
amendment-passage,reading-1,reading-2
2025-09-03
Read second time. Ordered to third reading.
reading-1,reading-2,reading-3
2025-09-04
Ordered to third reading.
reading-1,reading-3
2025-09-04
Read third time and amended.
amendment-passage,reading-1,reading-3
2025-09-09
Read third time. Passed. (Ayes 69. Noes 2. Page 3081.) Ordered to the Senate.
passage,reading-1,reading-3
2025-09-09
In Senate. Concurrence in Assembly amendments pending.
2025-09-10
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2819.) Ordered to engrossing and enrolling.
amendment-passage,committee-passage,committee-passage-favorable
2025-09-17
Enrolled and presented to the Governor at 2 p.m.
executive-receipt
2025-10-11
Approved by the Governor.
executive-signature
2025-10-11
Chaptered by Secretary of State. Chapter 605, Statutes of 2025.
became-law
Versions
- 12/03/24 - Introduced — 2024-12-03Compare
- 03/17/25 - Amended Senate — 2025-03-17Compare
- 05/01/25 - Amended Senate — 2025-05-01Compare
- 06/30/25 - Amended Assembly — 2025-06-30Compare
- 07/09/25 - Amended Assembly — 2025-07-09Compare
- 07/17/25 - Amended Assembly — 2025-07-17Compare
- 09/02/25 - Amended Assembly — 2025-09-02Compare
- 09/04/25 - Amended Assembly — 2025-09-04Compare
- 09/12/25 - Enrolled — 2025-09-12Compare
- 10/11/25 - Chaptered — 2025-10-11Compare
- SB41Compare
- (document, no version)Compare
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Votes
Do pass, but first be re-referred to the Committee on [Judiciary]
2025-04-23 · pass · 11-0
Member-level votes (11)
- Weber Pierson: yes
- Wiener: yes
- Richardson: yes
- Menjivar: yes
- Gonzalez: yes
- Limón: yes
- Durazo: yes
- Rubio: yes
- Valladares: yes
- Grove: yes
- Padilla: yes
Do pass, but first be re-referred to the Committee on [Appropriations]
2025-04-29 · pass · 13-0
Member-level votes (13)
- Arreguín: yes
- Niello: yes
- Allen: yes
- Durazo: yes
- Laird: yes
- Valladares: yes
- Wahab: yes
- Stern: yes
- Caballero: yes
- Weber Pierson: yes
- Ashby: yes
- Umberg: yes
- Wiener: yes
Placed on suspense file
2025-05-12 · pass · 7-0
Member-level votes (7)
- Wahab: yes
- Seyarto: yes
- Grayson: yes
- Richardson: yes
- Cabaldon: yes
- Dahle: yes
- Caballero: yes
Do pass
2025-05-23 · pass · 6-0
Member-level votes (7)
- Caballero: yes
- Seyarto: yes
- Wahab: yes
- Cabaldon: yes
- Richardson: yes
- Grayson: yes
- Dahle: other
3rd Reading SB41 Wiener et al.
2025-05-28 · pass · 37-0
Member-level votes (40)
- McNerney: yes
- Cabaldon: yes
- Allen: yes
- Padilla: yes
- Gonzalez: yes
- Smallwood-Cuevas: yes
- Laird: yes
- Becker: yes
- Ochoa Bogh: yes
- Rubio: yes
- Strickland: yes
- Umberg: yes
- Caballero: yes
- Arreguín: yes
- Wahab: yes
- Weber Pierson: yes
- Archuleta: yes
- McGuire: yes
- Richardson: yes
- Blakespear: yes
- Choi: yes
- Cortese: yes
- Hurtado: yes
- Valladares: yes
- Jones: yes
- Alvarado-Gil: yes
- Grove: yes
- Dahle: yes
- Durazo: yes
- Niello: yes
- Ashby: yes
- Grayson: yes
- Wiener: yes
- Stern: yes
- Pérez: yes
- Seyarto: yes
- Menjivar: yes
- Limón: other
- Reyes: other
- Cervantes: other
Do pass and be re-referred to the Committee on [Judiciary]
2025-07-08 · pass · 14-0
Member-level votes (16)
- Chen: other
- Ellis: other
- Rogers: yes
- Caloza: yes
- Mark González: yes
- Elhawary: yes
- Patel: yes
- Aguiar-Curry: yes
- Schiavo: yes
- Bonta: yes
- Flora: yes
- Celeste Rodriguez: yes
- Stefani: yes
- Addis: yes
- Sharp-Collins: yes
- Sanchez: yes
Do pass as amended and be re-referred to the Committee on [Appropriations]
2025-07-15 · pass · 11-0
Member-level votes (12)
- Stefani: yes
- Dixon: yes
- Bryan: yes
- Kalra: yes
- Pacheco: yes
- Sanchez: yes
- Bauer-Kahan: yes
- Connolly: yes
- Papan: yes
- Harabedian: yes
- Zbur: yes
- Macedo: other
Do pass as amended.
2025-08-29 · pass · 11-0
Member-level votes (15)
- Elhawary: yes
- Pellerin: yes
- Fong: yes
- Pacheco: yes
- Calderon: yes
- Arambula: yes
- Mark González: yes
- Wicks: yes
- Caloza: yes
- Ahrens: yes
- Solache: yes
- Sanchez: other
- Ta: other
- Tangipa: other
- Dixon: other
SB 41 Wiener Senate Third Reading By Bonta
2025-09-09 · pass · 69-2
Member-level votes (80)
- Ahrens: yes
- Johnson: yes
- Dixon: yes
- Mark González: yes
- Quirk-Silva: yes
- Gipson: yes
- Rogers: yes
- Addis: yes
- Ward: yes
- Haney: yes
- Hart: yes
- Fong: yes
- Calderon: yes
- Elhawary: yes
- Wilson: yes
- Carrillo: yes
- Bains: yes
- Ransom: yes
- Soria: yes
- Michelle Rodriguez: yes
- Berman: yes
- Valencia: yes
- Wicks: yes
- Celeste Rodriguez: yes
- Arambula: yes
- Connolly: yes
- Schultz: yes
- Bauer-Kahan: yes
- Bennett: yes
- Papan: yes
- Schiavo: yes
- Bonta: yes
- Aguiar-Curry: yes
- Jeff Gonzalez: yes
- Pacheco: yes
- Boerner: yes
- Alvarez: yes
- Lee: yes
- Alanis: yes
- Wallis: yes
- Patterson: yes
- Stefani: yes
- Ta: yes
- Caloza: yes
- Hoover: yes
- Sharp-Collins: yes
- Nguyen: yes
- Ortega: yes
- Solache: yes
- Lowenthal: yes
- Blanca Rubio: yes
- Bryan: yes
- Petrie-Norris: yes
- Harabedian: yes
- Gabriel: yes
- Davies: yes
- Pellerin: yes
- Muratsuchi: yes
- Hadwick: yes
- Krell: yes
- Irwin: yes
- Lackey: yes
- Ramos: yes
- Patel: yes
- Kalra: yes
- Sanchez: yes
- Rivas: yes
- Flora: yes
- Garcia: yes
- Ávila Farías: no
- McKinnor: no
- Tangipa: other
- Jackson: other
- Macedo: other
- Gallagher: other
- Zbur: other
- Chen: other
- Castillo: other
- Ellis: other
- DeMaio: other
Unfinished Business SB41 Wiener et al. Concurrence
2025-09-10 · pass · 40-0
Member-level votes (40)
- Umberg: yes
- Grove: yes
- Wiener: yes
- Niello: yes
- Jones: yes
- Wahab: yes
- Cortese: yes
- Dahle: yes
- Alvarado-Gil: yes
- Limón: yes
- Seyarto: yes
- Durazo: yes
- Choi: yes
- Archuleta: yes
- Gonzalez: yes
- Smallwood-Cuevas: yes
- Grayson: yes
- Weber Pierson: yes
- Hurtado: yes
- Arreguín: yes
- Laird: yes
- Cervantes: yes
- Rubio: yes
- McGuire: yes
- Reyes: yes
- Blakespear: yes
- Padilla: yes
- Valladares: yes
- Menjivar: yes
- Pérez: yes
- Strickland: yes
- Stern: yes
- Allen: yes
- Caballero: yes
- McNerney: yes
- Ochoa Bogh: yes
- Ashby: yes
- Richardson: yes
- Becker: yes
- Cabaldon: yes
Related bills
No related bills recorded for this bill.
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