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CONFERENCE COMMITTEE REPORT ADOPTED -- NOT PRINTED
June 21, 2000
H. 4934
S. Printed 5/31/00--S.
Read the first time May 18, 2000.
TO AMEND SECTION 37-11-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS USED IN THE "STATE CONTINUING CARE RETIREMENT COMMUNITY ACT", SO AS TO REVISE THE DEFINITION OF "CONTINUING CARE CONTRACT" SUCH THAT ONLY THOSE COMMUNITIES THAT REQUIRE THE PAYMENT OF AN ENTRANCE FEE OR OTHER FEE IN RETURN FOR A PROMISE OF FUTURE CARE ARE SUBJECT TO THE PROVISIONS OF THE ACT; TO AMEND SECTION 37-11-135, RELATING TO EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT, SO AS TO EXEMPT CONTINUING CARE RETIREMENT COMMUNITIES FROM ALL PROVISIONS OF THE ACT IF PAYMENT OF AN ENTRANCE FEE IS NOT REQUIRED; AND TO ADD SECTION 37-17-10 SO AS TO MAKE IT UNLAWFUL TO SELL, MARKET, PROMOTE, ADVERTISE, OR DISTRIBUTE A CARD OR OTHER DEVICE WHICH IS NOT INSURANCE BUT WHICH OFFERS DISCOUNTS ON PRESCRIPTION DRUG PURCHASES UNLESS CERTAIN CONDITIONS ARE MET, INCLUDING REGISTRATION WITH THE DEPARTMENT OF INSURANCE AND TO PROVIDE PENALTIES AND EXCEPTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-11-20(6) of the 1976 Code, as added by Act 97 of 1989, is amended to read:
"(6) 'Continuing care contract' means a contract to provide board or lodging together with nursing, medical, or other health-related services:
(a) to a person sixty-five years of age or older at the time the contract is signed or purchased; or
(b) which requires payment of an entrance fee or other fee in return for a promise of future care; or
(c) which provides for services for the life of the person or for more than one year, including mutually terminable contracts.; and
(c) which requires payment of an entrance fee or other fee in return for a promise of future care."
SECTION 2. Section 37-11-135 of the 1976 Code, as added by Act 19 of 1995, is amended to read:
"Section 37-11-135. A continuing care retirement community which does not require payment of an entrance fee is exempt from the requirements of Sections 37-11-30(B)(9), 37-11-40, and 37-11-50(2) this chapter."
SECTION 3. The 1976 Code is amended by adding:
"Section 37-17-10. (A) It is unlawful for a person to sell, market, promote, advertise, or distribute a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases unless:
(1) the person is registered with the Department of Insurance for this express purpose;
(2) the card or other purchasing mechanism or device expressly states in bold and prominent type, prominently placed, that the discounts are not insurance;
(3) documentation is provided to the Department of Insurance that the discounts are specifically authorized and the person has a separate contract with each pharmacy or pharmacy chain listed in conjunction with the card or other purchasing mechanism or device; and
(4) the discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered, are not misleading, deceptive, or fraudulent.
(B) A person who sells, markets, promotes, advertises, or distributes a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases in this State shall designate a resident of this State as an agent for service of process and register the agent with the Secretary of State.
(C)(1) A person who violates subsection (A) is guilty of a misdemeanor and upon conviction must be imprisoned for not more than six months or fined not more than one thousand dollars, or both; for a second or subsequent violation a person must be imprisoned for not more than two years or fined not more than five thousand dollars, or both.
(D) This section does not apply to:
(1) a pharmacy holding a permit issued pursuant to Title 40, Chapter 43;
(2) eye or vision care services or glasses or contact lenses provided by an optometrist or ophthalmologist;
(3) an insured benefit administered by a health insurer, health care service contractor, or health maintenance organization; or
(4) an insured benefit administered by, or under contract with, the State of South Carolina.
(E) For purposes of this section, 'person' means an individual, corporation, partnership or any other business entity, including but not limited to, a health maintenance organization, an insurance company, or a third party payor.
SECTION 4. This act takes effect upon approval by the Governor.
/s/Glenn F. McConnell /s/Mark S. Kelley
/s/Glen G. Reese /s/Mack T. Hines
/s/Luke A. Rankin /s/Donny Wilder
On Part of the Senate. On Part of the House.
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