                                 CODE OF VIRGINIA

LICENSE REQUIRED TO PROVIDE PHARMACY BENEFITS MANAGEMENT SERVICES; REQUIREMENTS
FOR A LICENSE, RENEWAL, AND REVOCATION OR SUSPENSION; CIVIL PENALTY (§
38.2-3466)

A. Unless otherwise covered by a license as a carrier, no person shall provide
pharmacy benefits management services or otherwise act as a pharmacy benefits
manager in the Commonwealth without first obtaining a license in a manner and in
a form prescribed by the Commission.

B. Each applicant for a license as a pharmacy benefits manager shall make
application to the Commission, in the form and containing the information listed
in subsection C and any other information the Commission prescribes. The
Commission may require any documents reasonably necessary to verify the
information contained in an application. Each applicant shall, at the time of
applying for a license, pay a nonrefundable application processing fee in an
amount and in a manner prescribed by the Commission. The fee shall be collected
by the Commission and paid directly into the state treasury and credited to the
&#8220;Bureau of Insurance Special Fund &#x2014; State Corporation
Commission&#8221; for the maintenance of the Bureau of Insurance as provided in
subsection B of &#xA7; 38.2-400.

C. An applicant for a license as a pharmacy benefits manager shall provide the
Commission the following information:

   1. The name, address, and telephone contact number of the pharmacy benefits
   manager;

   2. The name and address of each person with management or control over the
   pharmacy benefits manager;

   3. The name and address of each person with a beneficial ownership interest in
   the pharmacy benefits manager; and

   4. If the pharmacy benefits manager registrant (i) is a partnership or other
   unincorporated association, a limited liability company, or a corporation and
   (ii) has five or more partners, members, or stockholders, the registrant shall
   specify its legal structure and the total number of its partners, members, or
   stockholders who, directly or indirectly, own, control, hold with the power to
   vote, or hold proxies representing 10 percent or more of the voting securities
   of any other person.

D. An applicant shall provide the Commissioner with a signed statement
indicating that, to the best of its knowledge, no officer with management or
control of the pharmacy benefits manager has been convicted of a felony or has
violated any of the requirements of state law applicable to pharmacy benefits
managers, or, if the applicant cannot provide such a statement, a signed
statement describing the relevant conviction or violation.

E. Except where prohibited by state or federal law, by submitting an application
for a license, the applicant shall be deemed to have appointed the clerk of the
Commission as the agent for service of process on the applicant in any action or
proceeding arising in the Commonwealth out of or in connection with the exercise
of the license. Such appointment of the clerk of the Commission as agent for
service of process shall be irrevocable during the period within which a cause
of action against the applicant may arise out of transactions with respect to
subjects of pharmacy benefits management in the Commonwealth. Service of process
on the clerk of the Commission shall conform to the provisions of Chapter 8
(&#xA7; 38.2-800 et seq.).

F. Each applicant that has complied with the provisions of this article and
Commission regulations is entitled to and shall receive a license in the form
the Commission prescribes.

G. Each pharmacy benefits manager shall renew its license annually and shall, at
the time of renewal, pay a renewal fee in an amount and in a manner prescribed
by the Commission. The fee shall be collected by the Commission and paid
directly into the state treasury and credited to the &#8220;Bureau of Insurance
Special Fund &#x2014; State Corporation Commission&#8221; for the maintenance of
the Bureau of Insurance as provided in subsection B of &#xA7; 38.2-400.

H. The Commission may refuse to issue or renew a license or may revoke or
suspend a license if it finds that the applicant or license holder has not
complied with the provisions of this article or Commission regulations.

I. A person that violates the provisions of this section may be subject to a
civil penalty of $5,000 for each day on which such violation occurs. The
Commission may adopt such rules or establish such guidelines as may be necessary
to enforce the provisions of this section.

HISTORY: 2020, cc. 219, 1288; 2024, cc. 329, 626.