TN HB1959

Prohibits pharmacy benefits managers (PBMs) from owning, controlling, or holding any beneficial interest in pharmacies in Tennessee, effective January 1, 2027, regardless of ownership percentage

Requires all pharmacy license applicants and holders to file annual verified disclosures identifying owners with 5% or more interest, affiliated entities providing services, and any agreements granting PBMs control over operations

Creates a limited-use pharmacy license exception for rare, orphan, or FDA-designated limited-distribution drugs unavailable elsewhere in the state, with annual board review and automatic repeal on September 1, 2028

Establishes enforcement penalties of up to $10,000 per day for violations, authorizes injunctive relief and subpoena power for the Board of Pharmacy, and requires annual public reporting of enforcement actions beginning January 15, 2028

Mandates PBM-affiliated pharmacies notify patients and prescribers by November 1, 2026, of potential closure, with operations permitted through December 31, 2026 (plus possible 6-month extension) if actively pursuing sale to an unaffiliated entity