Senate passes transparency bill for entities in 340B supply chain, 30-4

The Colorado Senate approved Senate Bill 71 on March 26 by a vote of 30-4. The measure, sponsored in the Senate by Sen. Michaelson Janae and Sen. Rich and in the House by Representatives Martinez and Taggart, addresses practices by entities in the supply chain for drugs purchased under the federal 340B drug pricing program.

Supporters said SB 71 increases transparency around how 340B savings are used and reported. During floor remarks, proponents highlighted the program’s original intent — to help providers that serve low‑income and uninsured patients — and pressed for clearer disclosures that would ensure savings support community health services.

Opponents raised concerns about potential impacts on rural and critical‑access hospitals. A senator speaking for the Colorado Rural Hospital Association said the organization continued to oppose the bill, asserting that some hospitals would not fit the bill’s definitions yet still depend on 340B savings to support hundreds of employees and local services.

Servicio de la Raza submitted written opposition that was read into the record by Sen. Gonzales on the floor; the statement said SB 71, while purporting to safeguard access, could perpetuate exploitation of the 340B program if reforms are not crafted to ensure equitable distribution of savings.

Sen. Kolker said she supported both SB 71 and a companion bill discussed earlier, saying transparency provisions in SB 71 made her more inclined to vote yes. She relayed consultation with an independent expert and noted that the 340B program’s reach in Colorado extended beyond hospitals to related entities such as federally qualified health centers and school‑based clinics.

The Senate voted 30 ayes, 4 no, 0 absent and 1 excused to pass SB 71. The transcript records both affirmative floor argument for transparency and repeated concerns from rural hospital representatives about unintended harm to community providers.