In considering approval of a subcontract between a managed care organization and a pharmacy benefit manager to provide Medicaid prescription drug benefits, the commission shall review and consider whether in the preceding three years the pharmacy benefit manager has been:

1. (1) convicted of:

   1. (A) an offense involving a material misrepresentation or an act of fraud; or
   2. (B) another violation of state or federal criminal law;
2. (2) adjudicated to have committed a breach of contract; or
3. (3) assessed a penalty or fine of $500,000 or more in a state or federal administrative proceeding.

Added by Acts 2023, 88th Leg., R.S., Ch. 769 (H.B. 4611), Sec. 1.01, eff. April 1, 2025.