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E2SSB 5981

Momentum Bucket Became Law
Legal Title AN ACT Relating to protecting the integrity of the 340B drug pricing program;
Bill Description Concerning the 340B drug pricing program.
What this bill does
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This bill creates new state prohibitions and reporting requirements related to the federal 340B drug pricing program and amends and adds sections in chapter 43.71C RCW and adds a new chapter in Title 69 RCW. It bars manufacturers (and third parties acting for manufacturers) from denying, restricting, or prohibiting covered entities, contract pharmacies, or authorized locations from acquiring or receiving 340B drugs unless federal law prohibits receipt, and from conditioning receipt of 340B drugs on submission of claims, utilization, purchasing, or other data unless federal law requires such sharing. The bill defines key terms (including “340B drug,” “covered entity,” “manufacturer,” “covered manufacturer,” and “covered drug”) and specifies that each package of 340B drugs subject to a prohibited act is a separate violation. The bill creates a private right of action for covered entities and authorizes state enforcement by the attorney general (including actions as parens patriae), makes violations subject to the state consumer protection act for attorney general actions, and establishes civil penalties up to $5,000 per day per violation plus reasonable attorneys’ fees and costs. It also allows the Health Care Authority (referred to as “the authority”) to assess administrative fines up to $1,000 per day for failure to provide required information, subject to administrative review, but provides that no penalty will be issued if a covered entity supplies the requested information within 30 calendar days of written notice. The measure requires reporting and data submission by covered entities and manufacturers, sets deadlines and formats for manufacturer submissions (including at least 60 days before certain qualifying price increases, within 30 days of new covered drug market release, and annual 340B participation reports before April 1), and requires covered entities to file annual reports on or before April 1 following their fiscal year. The authority may establish annual, tiered filing fees to cover its costs (with covered-entity fees limited to no more than 25% of the authority’s costs), and the bill creates a dedicated 340B program reporting account in the state treasury for those fees. The authority must compile and publish an annual report (to begin January 1, 2021) with aggregated 340B data, cost information, and fee details; most submitted data is confidential except for specified covered-entity items and authorized disclosures to the legislature and certain state boards. The text available omits the full content of section 5 (the specific data elements required of covered entities and other details), cuts off part of Sec. 5(4)(b), does not show the complete new chapter text in Title 69, and does not state an explicit effective date in the provided extracts. These missing provisions and the exact scope of some reporting items are therefore uncertain from the provided material.
Why it matters
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If enacted, drug manufacturers would no longer be able to block or condition shipment of discounted 340B drugs to eligible clinics, hospitals, or their contract pharmacies, and they would face higher legal and financial exposure if they do — including the possibility of private lawsuits, state attorney general enforcement, and penalties counted per package. Federally qualified health centers and certain hospitals would gain stronger protection of their 340B supplies but would also have to file annual participation reports, risk a $1,000-per-day fine if they miss deadlines (unless they cure within 30 days of notice), and pay an annual filing fee to help fund the state’s reporting work (with covered entities limited to covering no more than 25% of those costs). The Health Care Authority would take on new duties to collect, analyze, and publish an annual report and to set and collect tiered filing fees, deposit them into a dedicated account, and make data available to state affordability and transparency boards; this shifts ongoing administrative costs onto manufacturers and reporting covered entities and creates more public and legislative visibility into 340B activity. Important details are missing from the provided text — notably the exact data elements required of covered entities in section 5, the full rules on what will be publicly released versus kept confidential, and the effective dates — so the precise scope of reporting burdens, public disclosure, and compliance timelines remains uncertain.
Official Documents View Full Bill Text
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E2SSB 5981 Details and Bill Topics

Details

Date Introduced 02/09/2026
Originating Chamber Senate
Biennium 2025-26
Total Campaign Dollars Backing Bill $6,940,458.00

Bill Topics

DRUGS

E2SSB 5981 Sponsors and Committee Hearings

Sponsors

Senator Cleveland (Primary)
Senator Slatter
Senator Harris
Senator Bateman
Senator Alvarado
Senator Chapman
Senator Dhingra
Senator Frame
Senator Hasegawa
Senator Liias
Senator Pedersen
Senator Saldaña
Senator Valdez

Committee Hearings

Hearing Senate Health & Long-Term Care (Public)
Hearing Senate Health & Long-Term Care (Executive)
Hearing Senate Ways & Means (Public)
Hearing Senate Ways & Means (Executive)
Hearing House Health Care & Wellness (Public)
Hearing House Health Care & Wellness (Executive)
Hearing House Appropriations (Public)
Hearing House Appropriations (Executive)
Go to E2SSB 5981 at leg.wa.gov

E2SSB 5981 Bill Timeline

Became Law
3/24/2026
C 227 L 26
Effective date 6/11/2026.
3/24/2026
C 227 L 26
Chapter 227, 2026 Laws.
3/24/2026
C 227 L 26
Governor signed.
3/11/2026
C 227 L 26
Delivered to Governor.
3/10/2026
C 227 L 26
Speaker signed.
3/9/2026
C 227 L 26
President signed.
3/8/2026
C 227 L 26
Passed final passage; yeas, 30; nays, 19; absent, 0; excused, 0.
3/8/2026
C 227 L 26
Senate concurred in House amendments.
3/5/2026
C 227 L 26
Third reading, passed; yeas, 67; nays, 30; absent, 0; excused, 1.
3/5/2026
C 227 L 26
Committee amendment(s) adopted with no other amendments.
3/3/2026
C 227 L 26
Rules Committee relieved of further consideration. Placed on second reading.
3/1/2026
C 227 L 26
Referred to Rules 2 Review.
3/1/2026
C 227 L 26
APP - Majority; do pass with amendment(s) by Health Care & Wellness.
3/1/2026
C 227 L 26
APP - Executive action taken by committee.
2/24/2026
C 227 L 26
Referred to Appropriations.
2/24/2026
C 227 L 26
HCW - Majority; do pass with amendment(s).
2/24/2026
C 227 L 26
HCW - Executive action taken by committee.
2/16/2026
C 227 L 26
First reading, referred to Health Care & Wellness.
2/12/2026
C 227 L 26
Third reading, passed; yeas, 30; nays, 18; absent, 0; excused, 1.
2/12/2026
C 227 L 26
Rules suspended. Placed on Third Reading.
2/12/2026
C 227 L 26
Floor amendment(s) adopted.
2/12/2026
C 227 L 26
2nd substitute bill substituted.
2/9/2026
C 227 L 26
Placed on second reading by Rules Committee.
2/8/2026
C 227 L 26
Passed to Rules Committee for second reading.
2/8/2026
C 227 L 26
Minority; without recommendation.
2/8/2026
C 227 L 26
Minority; do not pass.
2/8/2026
C 227 L 26
WM - Majority; 2nd substitute bill be substituted, do pass.
1/27/2026
Ssubst for
Referred to Ways & Means.
1/26/2026
Ssubst for
And refer to Ways & Means.
1/26/2026
Ssubst for
HLTC - Majority; 1st substitute bill be substituted, do pass.
1/11/2026
Ssubst for
First reading, referred to Health & Long-Term Care.
1/4/2026
Ssubst for
Prefiled for introduction.

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