(a) A pharmacy benefit manager shall not do business in this State without first registering with the Commissioner on a form and in a manner prescribed by the Commissioner.

(b) In accordance with rules adopted by the Commissioner, pharmacy benefit managers operating in the State of Vermont and proposing to contract for the provision of pharmacy benefit management shall notify health insurers when the pharmacy benefit manager provides a quotation that a quotation for an administrative-services-only contract with full pass through of negotiated prices, rebates, and other such financial benefits that would identify to the health insurer external sources of revenue and profit is generally available and whether the pharmacy benefit manager offers that type of arrangement. Quotations for an administrative-services-only contract shall include a reasonable fee payable by the health insurer that represents a competitive pharmacy benefit profit. This subsection shall not be interpreted to require a pharmacy benefit manager to offer an administrative-services-only contract.

(c) In order to enable periodic verification of pricing arrangements in administrative-services-only contracts, pharmacy benefit managers shall allow access, in accordance with rules adopted by the Commissioner, by the health insurer who is a party to the administrative-services-only contract to financial and contractual information necessary to conduct a complete and independent audit designed to verify the following:

(d) The reasonable expenses of the Department of Financial Regulation in administering the provisions of this section may be charged to pharmacy benefit managers in the manner provided for in 8 V.S.A. § 18. These expenses shall be allocated in proportion to the lives of Vermonters covered by each pharmacy benefit manager as reported annually to the Commissioner in a manner and form prescribed by the Commissioner. The Department of Financial Regulation shall not charge its expenses to the pharmacy benefit manager contracting with the Department of Vermont Health Access if the Department of Vermont Health Access notifies the Department of Financial Regulation of the conditions contained in its contract with a pharmacy benefit manager.

(e) The Commissioner may adopt such rules as are necessary or desirable in carrying out the purposes of this section. The rules also shall ensure that proprietary information is kept confidential and not disclosed by a health insurer.