1. Ensuring transparency and oversight of the 340B drug discount program (a) In general Section 340B(a)(5) of the Public Health Service Act ( 42 U.S.C. 256b(a)(5) ) is amended— (1) in subparagraph (C)— (A) by striking A covered entity shall permit and inserting: (i) Duplicate discounts and drug resale A covered entity shall permit ; and (B) by adding at the end the following new clauses: (ii) Use of savings A covered entity shall permit the Secretary to audit, at the Secretary’s expense, the records of the entity to determine how savings (as defined in subparagraph (E)(iii)) from drugs subject to an agreement under this section furnished by such entity is used by such entity. (iii) Records retention Covered entities shall retain such records and provide such records and reports as determined necessary by the Secretary for carrying out this subparagraph. ; and (2) by adding at the end the following new subparagraph: (E) Reporting (i) In general During the first year beginning on or after the date that is 14 months after the date of enactment of this subparagraph and during each subsequent year, each covered entity described in subparagraph (L) of paragraph (4) (and any other covered entity specified by the Secretary) shall report to the Secretary (at a time and in a form and manner specified by the Secretary) the following information with respect to the preceding year: (I) With respect to such covered entity and each off-campus outpatient department of such entity— (aa) the total number of individuals who were dispensed or administered drugs during such preceding year that were subject to an agreement under this section