1. (1) The following acts are violations of this chapter:

   1. (a) A PBM fails to timely submit all information, including updates to information, required pursuant to this chapter;
   2. (b) A PBM provides any false, misleading, or deceptive information to the Department;
   3. (c) A PBM fails to comply with a requirement of, or engages in any action prohibited by, this chapter; or

   4. (d) Information submitted to the Department indicates any of the following are not authorized to transact business in this state; are not financially responsible as indicated by evidence of financial negligence, financial fraud, or gross mismanagement; or have engaged in any false, fraudulent, or dishonest practices in the course of business:

      1. 1. The PBM;
      2. 2. Any of the PBM’s officers, directors, partners, members, or managers; or
      3. 3. Any person or entity with control of a PBM.
2. (2) A violation of this chapter may subject a PBM to the sanctions described in T.C.A. § 56-2-305.
3. (3) A person or entity that has, or that triggers a presumption of, control of a PBM may disclaim control in the same manner allowed under T.C.A. § 56-11-105(k).

Authority: T.C.A. §§ 56-2-305 and 56-7-3101. Administrative History: New rules filed March 28, 2024; effective June 26, 2024.