According to the Legislative Budget Board (LBB), HB 3317 would have no significant fiscal implication to the State of Texas. The implementing agencies, including the Department of Insurance and the Health and Human Services Commission, are expected to absorb any costs associated with the bill using existing resources.

The bill imposes new regulatory requirements on health benefit plan issuers and pharmacy benefit managers (PBMs), such as providing online access to pharmacy contracts, requiring mutual consent for adverse contract changes, and restricting certain audit-related recoupment practices. While these changes may entail some administrative costs to agencies tasked with oversight and enforcement—particularly the Texas Department of Insurance—these costs are not expected to require new appropriations or staffing increases.

Furthermore, the bill does not create new entitlements, impose direct mandates on state-funded health plans, or significantly alter state reimbursement structures. As such, its fiscal impact is confined to regulatory and compliance oversight rather than service delivery or benefit design. No fiscal implication is anticipated for local governments either, as the bill applies solely to private sector PBMs and insurers operating under state regulation.

HB 3317 represents a well-calibrated effort to protect independent pharmacists and pharmacies from potentially coercive and opaque business practices employed by pharmacy benefit managers (PBMs) and certain health insurers. By improving transparency, requiring mutual consent for adverse contract changes, and curbing aggressive audit recoupment tactics, the bill supports key principles of free enterprise, individual liberty, and private property rights.

Crucially, HB 3317 does not grow the size or scope of government. It imposes no new taxes, fees, or state programs, and the Legislative Budget Board has determined that any administrative costs associated with the bill can be absorbed within existing agency resources. Therefore, there is no increased burden on taxpayers. Additionally, the regulatory requirements established by the bill are narrowly focused and apply only to PBMs and health plan issuers—entities with significant market power—not to individual citizens or small businesses. In fact, these reforms are designed to reduce regulatory and contractual coercion against pharmacies, particularly small and rural operators.

In summary, this legislation restores balance and fairness in the pharmacy benefit space without expanding government, raising taxes, or imposing undue burdens. It aligns with multiple liberty principles and addresses long-standing complaints from independent pharmacies about PBM overreach. As such, Texas Policy Research recommends that lawmakers vote YES on HB 3317.

• Individual Liberty: The bill enhances individual liberty by safeguarding the rights of pharmacists and pharmacy owners to operate without undue coercion from dominant pharmacy benefit managers (PBMs). It prohibits unilateral contract changes by PBMs, ensures pharmacies can access and review contract terms via an online portal, and prevents penalties for declining to join certain networks. These provisions protect the autonomy of individual professionals and small businesses in making free, informed contractual decisions.
• Personal Responsibility: While the bill does not directly alter incentives for personal responsibility, it indirectly supports it by clarifying the rules of engagement in contractual relationships. Pharmacies must still ensure accuracy and integrity in claims submissions, and they remain accountable for fraudulent or substantive dispensing errors. By drawing a clear distinction between clerical mistakes and fraud, the bill reinforces a framework where responsibility is proportional to the error or misconduct involved.
• Free Enterprise: The bill strengthens free enterprise by addressing anti-competitive practices in the PBM-pharmacy relationship. It limits the ability of PBMs to leverage market dominance to impose non-negotiable terms or retaliate against non-compliant pharmacies. By doing so, the bill enhances market access for independent pharmacies and fosters a more competitive and transparent business environment—especially vital in rural or underserved areas.
• Private Property Rights: The bill protects pharmacists’ financial interests—which constitute a form of private property—by restricting when and how PBMs can recoup payments. Only in cases of fraud or serious errors may PBMs recover the cost of a drug; otherwise, recoupment is limited to the dispensing fee. This ensures that pharmacies are not subjected to retroactive financial clawbacks that could threaten their solvency or unjustly deprive them of income already earned.
• Limited Government: Although the bill imposes new regulatory standards, these are narrowly focused and aimed at correcting imbalances in a highly consolidated sector. The bill does not expand the size of government or create new enforcement entities. Oversight responsibilities remain within existing agencies, particularly the Texas Department of Insurance, with no new fiscal burden to taxpayers. Thus, the principle of limited government is respected while enabling the state to uphold fair market practices.

• SB 1236 (Same As)