South Carolina General Assembly
115th Session, 2003-2004

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H. 5044

STATUS INFORMATION

General Bill
Sponsors: Reps. McGee, Quinn and Toole
Document Path: l:\council\bills\nbd\12394ac04.doc

Introduced in the House on March 30, 2004
Introduced in the Senate on April 27, 2004
Last Amended on May 27, 2004
Currently residing in the Senate

Summary: Establishes the Pharmacy and Therapeutics Committee

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/30/2004  House   Introduced and read first time HJ-7
   3/30/2004  House   Referred to Committee on Medical, Military, Public and 
                        Municipal Affairs HJ-7
   4/21/2004  House   Member(s) request name added as sponsor: Toole
   4/21/2004  House   Committee report: Favorable Medical, Military, Public 
                        and Municipal Affairs HJ-5
   4/22/2004  House   Read second time HJ-37
   4/22/2004  House   Unanimous consent for third reading on next legislative 
                        day HJ-38
   4/22/2004          Scrivener's error corrected
   4/23/2004  House   Read third time and sent to Senate HJ-3
   4/27/2004  Senate  Introduced and read first time SJ-13
   4/27/2004  Senate  Referred to Committee on Medical Affairs SJ-13
   5/13/2004  Senate  Committee report: Favorable Medical Affairs SJ-7
   5/27/2004  Senate  Amended SJ-233
   5/27/2004  Senate  Read second time SJ-233
   5/27/2004  Senate  Ordered to third reading with notice of amendments SJ-233

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/30/2004
4/21/2004
4/22/2004
5/13/2004
5/27/2004

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

AMENDED

May 27, 2004

H. 5044

Introduced by Reps. McGee, Quinn and Toole

S. Printed 5/27/04--S.

Read the first time April 27, 2004.

            

A BILL

TO AMEND CHAPTER 6 OF TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 8 SO AS TO ESTABLISH THE PHARMACY AND THERAPEUTICS COMMITTEE WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, TO PROVIDE FOR THE MEMBERSHIP, ORGANIZATION, AND DUTIES OF THE COMMITTEE, AND TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL ADHERE TO CERTAIN PROVISIONS WHEN IMPLEMENTING THE PREFERRED DRUG LIST.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

Part I

Act Citation

SECTION    1.    This act may be cited as the "Health and Human Services and Accountability Act of 2004."

Part II

Pharmacy and Therapeutics Committee

SECTION    1.    Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Article 8

Pharmacy and Therapeutics Committee

Section 44-6-1000.    For purposes of this chapter:

(1)    'Chairman' means Chairman of the Pharmacy and Therapeutics Committee.

(2)    'Committee' means the Pharmacy and Therapeutics Committee.

(3)    'Department' means the Department of Health and Human Services.

(4)    'Director' means the Director of the Department of Health and Human Services.

Section 44-6-1010.    (A)    There is established within the department the Pharmacy and Therapeutics Committee. The committee shall consist of fifteen members appointed by the director and serving at his pleasure. The members shall include eleven physicians and four pharmacists licensed to practice in South Carolina and actively engaged in providing services to the South Carolina Medicaid population. The physicians may include, but are not limited to, doctors who have experience in treating diabetes, cancer, HIV/AIDS, mental illness, and hemophilia and who practice in internal medicine, primary care, and pediatrics.     (B)    The committee shall adopt by-laws that include, at a minimum, the length of term of a membership. A chairman and vice-chairman shall be elected on an annual basis from the committee membership. Committee members must not be compensated for service on the committee. However, committee members may be reimbursed for actual and necessary expenses incurred pursuant to discharging committee duties in an amount not to exceed the mileage and subsistence amounts allowed by law for members of boards, commissions, and committees.

(C)    The committee shall meet at least quarterly and may meet at other times at the discretion of the chairman or the director. Committee meetings are subject to the provisions of the Freedom of Information Act. The department shall publish notice of regular business meetings of the committee at least thirty days before the meeting. However, the director or chairman may call special meetings of the committee and provide such public notice as may be practical.

(D)    The committee shall provide for public comment, including comment on clinical and patient care data from Medicaid providers, representatives of the pharmaceutical industry, and patient advocacy groups. Trade secrets as defined in Section 30-4-40(a)(1) and relevant federal law must not be publicly disclosed.

(E)    The committee shall recommend to the department therapeutic classes of drugs that should be included on a Preferred Drug List. For those recommended classes, the committee shall recommend the drug or drugs considered preferred within that class based on safety and efficacy. In determining safety and efficacy, the committee may consider all submitted public comment or clinical information including, but not limited to, scientific evidence, standards of practice, peer-reviewed medical literature, randomized clinical trials, pharmacoeconomic studies, and outcomes research data. The committee also shall recommend prior authorization criteria for nonpreferred drugs in the recommended therapeutic classes.

Section 44-6-1020.    Any Preferred Drug List program implemented by the department must include:

(1)    procedures to ensure that a request for prior authorization that has no material defect or impropriety can be processed within twenty-four hours of receipt;

(2)    procedures to allow the prescribing physician to request and receive notification of any delay or negative decision in regard to a prior authorization request;

(3)    procedures to allow the prescribing physician to request and receive a second review of any denial of a prior authorization request; and

(4)    procedures to allow a pharmacist to dispense an emergency, seventy-two-hour supply of a drug requiring prior authorization without such prior authorization if the pharmacist:

(a)    has made a reasonable attempt to contact the prescribing physician and request that the prescribing physician secure prior authorization; and

(b)    reasonably believes that refusing to dispense a seventy-two-hour supply would unduly burden the Medicaid recipient and produce undesirable health consequences.

Section 44-6-1030.    A grant of prior authorization for a drug is specific to the drug, rather than the actual prescription, and extends to all refills allowed pursuant to the original prescription and to subsequent prescriptions for the same drug at the same dosage provided the time allowed by the prior authorization has not expired.

Section 44-6-1040.    A Medicaid recipient who has been denied prior authorization for a prescribed drug is entitled to appeal this decision through the department's appeals process."

Part III

Medicaid Initiatives

SECTION    1.    Chapter 2, Title 12 of the 1976 Code is amended by adding:

"Section 12-2-100.    By July 1, 2006, the Department of Revenue shall implement electronic interface between information systems to enable the Department of Health and Human Services to electronically obtain income and related financial information of residents of the State from the department for the purpose of assisting the Department of Health and Human Services in making eligibility determinations of persons applying for Medicaid coverage."

SECTION 2. Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-110.    The department shall report to the House Ways and Means Committee, the Senate Finance Committee, the House Medical, Military, Public and Municipal Affairs Committee, and the Senate Medical Affairs Committee the following:

(1)    prospectively, any changes to the Medicaid state plan;

(2)    by January 31 of each year, a listing of all co-payments required of Medicaid recipients and the number of recipients and providers impacted by each."

SECTION    3.    Article 1, Chapter 71, Title 38 of the 1976 Code is amended by adding:

"Section 38-71-270.    An insurer, including a health maintenance organization, providing health insurance to residents of this State shall submit the names and other identifying information of its insureds to the Department of Insurance in the manner and time prescribed by the department. The department shall submit this information to the Department of Health and Human Services to be used to identify Medicaid applicants who have other health insurance coverage."

SECTION    4.    A.    This section may be cited as the "South Carolina Medicaid Managed Care Pilot Program."

B.        Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-130.    (A)    The department shall develop pilot programs to implement managed and coordinated patient care within the Medicaid program. Each pilot must provide a medical home for Medicaid recipients that will promote continuity of care, emphasize prevention and self-management to improve quality of life, supply evidence-based information and resources to support optimal health management, improve healthcare outcomes, increase access to care, and reduce overall program costs. Each pilot program must consist of one or both of the following:

(1)    managed health care programs employing managed care organizations reimbursed with capitated payments;

(2)    primary care case management programs where a primary care provider is responsible for approving and monitoring the care of enrolled beneficiaries and reimbursement is based on a fee-for-service or capitated basis, or both.

(B)    Each pilot program must operate for a period of three years. If any pilot program fails to demonstrate budget neutrality, the department may end that pilot program prior to the end of the three-year period.

(C)    By June 30, 2006, enrollment in the pilot programs must target a total of at least thirty percent of the total statewide Temporary Assistance to Needy Families, Supplemental Omnibus Budget Reconciliation Act, and Supplemental Security Income Medicaid eligibles. By June 30, 2007, enrollment in the pilot programs must target a total of at least forty percent of the same population. By June 30, 2008, enrollment in the pilot programs must target a total of at least fifty percent of the same population.

(D)    Eligibiles must be given ninety days from their initial Medicaid eligibility determination to elect to participate in one of the pilot programs or in the existing fee-for-service program. If participation in either of the pilot programs is elected, this election must be for a period of not less than one year, subject to all applicable federal laws and regulations. The department may retain an independent enrollment broker or employ such other measures as may be necessary including, but not limited to, auto-enrollment to ensure an appropriate distribution of beneficiaries among the pilot programs.

(E)    Beginning January 31, 2006, and by January 31 of each year thereafter, the department shall submit to the Governor, the Lieutenant Governor, the House Ways and Means Committee, the Senate Finance Committee, the House Medical, Military, Public and Municipal Affairs Committee, and the Senate Medical Affairs Committee an annual evaluation of each pilot program. Each evaluation must include, but is not limited to, the following:

(1)    financial and medical outcomes of each pilot program;

(2)    individual and collective pilot program enrollment totals relative to established targets and explanations of any existing or potential barriers to future targets; and

(3)    the overall effectiveness of each pilot program in managing appropriate emergency room utilization, inpatient hospital admissions, and pharmaceutical utilization while increasing the use of preventive care measures, provider satisfaction, and patient satisfaction.

The department may employ the services of a quality review organization to assist in the evaluation process.

(F)    Each pilot program is subject to all applicable federal laws and regulations.

(G)    To ensure competition, accountability, and the actuarial soundness of each pilot program, the department shall use an independent third-party actuary to develop objective actuarial standards and rates. Updates to rates must be based on actuarially sound business methods and available funding.

(H)    The department shall expeditiously apply for any federal waivers or approvals necessary to implement the pilot programs. If necessary, all implementation and target dates may be delayed to coincide with the effective date of these waivers.

(I)    The department may establish contractual agreements for pilot service providers and may terminate any pilot program, or component of a pilot program, for contractual non-compliance or practices that adversely and dangerously impact patient care.

(J)    Nothing in this section must be construed to limit existing Medicaid programs or to limit the department from establishing other initiatives it considers necessary, in addition to the pilot program, in its administration of the Medicaid program."

C.     This section takes effect June 30, 2005.

SECTION    5.    Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-120.    (A)    The department shall explore contracting for external administration of the Medicaid eligibility redetermination process, and if determined to be feasible, upon implementation, the privatized process must be evaluated annually to ensure compliance with all federal and state eligibility determination criteria. If an annual evaluation reveals that the privatized process does not improve efficiency or accuracy in processing Medicaid eligibility redeterminations, the department shall cancel the contract and resume internal processing of Medicaid eligibility redeterminations.

(B)    The department shall develop eligibility determination criteria and processes that:

(1)    provide for face-to-face initial and continued eligibility determinations when feasible and cost-effective;

(2)    prevent the routine initiation of coverage for all recipients except pregnant women until verification of all required eligibility data is complete;

(3)    apply the same standards to eligibility redetermination as applied to the initial eligibility determination process;

(4)    require verification of all unearned income;

(5)    require documented proof of citizenship or legal alien status;

(6)    require applicants' parents, the responsible party, or persons holding a power of attorney for the applicant to sign the application, thereby attesting to the accuracy of the information provided and granting the consent of the applicant for an eligibility search; and

(7)    in accordance with applicable federal laws and regulations, provide for the termination of recipients who have provided false information.

(C)    The department shall require affirmative proof of current income and other eligibility criteria when determining whether a Medicaid recipient is eligible for continued coverage. These reviews must be conducted annually for all income-eligible recipients, provided that such reviews are conducted quarterly for all income-eligible recipients who report that they earn no income.

(D)    The department shall require that all files pertaining to Medicaid eligibility of any agency employee or member of their immediate family be transferred to a central location for processing. The department must not allow an agency employee to participate in processing eligibility determinations for themselves or their immediate family members.

(E)    The department shall conduct regular, random, unannounced audits of eligibility files for completeness and accuracy. These audits must report results that are specific to individual eligibility determination employees and supervisors rather than report statewide results.

(F)    The department shall explore the following eligibility accuracy and efficiency initiatives:

(1)    reducing and streamlining the number of eligibility categories;

(2)    developing a comprehensive eligibility staff training program that must include statewide and on-site training sessions and web-based training and policy dissemination tools;

(3)    piloting online income and asset verification; and

(4)    expanding the number of out-stationed sponsored Medicaid workers.

(G)    Notwithstanding any other provision of law and except as provided below, any promissory note received after July 1, 2004, by a Medicaid applicant or recipient or the spouse of a Medicaid applicant or recipient in exchange for assets, which if retained by the applicant or recipient or his spouse would cause the applicant or recipient to be ineligible for Medicaid benefits are, for Medicaid eligibility purposes, deemed to be fully negotiable under the laws of this State unless the promissory note contains language plainly stating that it is not transferable under any circumstances. To be considered valid for Medicaid eligibility determination purposes, a promissory note must be actuarially sound, require monthly installments that fully amortize it over the life of the loan, and be free of any conditional or self-canceling clauses."

SECTION    6.    There is established a "Task Force on Emergency Room Diversion" to be led by the Department of Health and Environmental Control to develop a plan for community service alternatives, or contract alternatives or both, for persons who currently use emergency rooms inappropriately.

The task force shall submit a plan and budget to reduce inappropriate utilization of the emergency room and to provide more appropriate services. Membership must include, but is not limited to, representatives of the following organizations: South Carolina Medical Association, the South Carolina Academy of Family Physicians, the South Carolina Hospital Association, the Emergency Medical Services Association, the South Carolina Sheriff's Association, Partners in Crisis, the Probate Court Judges Association, and the South Carolina Psychiatric Association. A report and budget must be submitted to the Senate Finance Committee, the Senate Medical Affairs Committee, the House Ways and Means Committee, and the House Medical, Military, Public and Municipal Affairs Committee by January 1, 2006. Upon approval by the committee, the Department of Health and Human Services shall provide support for a pilot project to be administered by the Department of Health and Environmental Control which shall monitor and provide regular evaluations of the pilot project.

SECTION    7.    Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-140.    (A)    There is created within the department the South Carolina Medicaid Incentives for Suggesting Expense Reductions program to be known as SC MISER. The department is authorized to establish such regulations as may be necessary for administration of SC MISER.

(B)    SC MISER must be offered to Medicaid Providers and their employees and must feature a monetary award for suggesting a measure that successfully results in saving the Medicaid program money.

(C)    SC MISER suggestions may be made through a form available on the department's website, mailed with provider remittances, or mailed upon request from the department's Public Information Office. Within thirty days of receipt, SC MISER suggestions must be reviewed for merit by department program, fiscal, legal, and program integrity staff. SC MISER suggestions determined to be with merit must be presented to the department director for implementation authorization.

(D)    Twelve months after implementation, the department shall evaluate the savings generated and award the individual who made the suggestions an amount equal to ten percent of the state savings generated, up to five hundred dollars, during that period. Awards must be funded from third party liability collections only and must not exceed twenty thousand dollars annually."

Part IV

Seniors Forum

SECTION    1.    Chapter 21, Title 43 of the 1976 Code is amended by adding:

"Section 43-21-15.    (A)    There is created the Office on Aging in the Lieutenant Governor's Office that must be supported by a Seniors Forum consisting of sixteen voting members as follows:

(1)    four Council on Aging Directors must be appointed by the Governor upon the recommendation of the South Carolina Association of Council on Aging Directors;

(2)    two members must be appointed by the Governor to represent other local senior services providers;

(3)    two members must be appointed by the Governor upon the recommendation of South Carolina Association of Area Agencies on Aging, to represent area Agencies on Aging or their federally mandated advisory councils;

(4)    two members must be appointed by the Governor upon the recommendation of the South Carolina Silver Haired Legislature, Inc.;

(5)    two members must be appointed by the Governor upon the recommendation of the American Association of Retired Persons (AARP);

(6)    two members must be appointed by the Speaker of the House of Representatives; one must be a member of the House of Representatives and one must be a consumer of senior services;

(7)    two members must be appointed by the President Pro Tempore of the Senate; one must be a member of the Senate and one must be a consumer of senior services.

All members shall serve terms of four years, except that the members listed in subsections (1), (2), and (3) shall serve an initial term of two years. A vacancy must be filled in the same manner as the original appointment for the remainder of the unexpired term. A chairperson must be elected by the members of the forum for a term of two years and shall serve until a successor is elected. Members of the forum shall serve without compensation and may not receive mileage, per diem, or subsistence. The Office on Aging shall provide staff for the forum. The Office on Aging must submit an annual draft plan of action for the upcoming fiscal year to the Senior's Forum by December 15 of each year.

(B)    The forum shall:

(1)    meet at least once each quarter and additional meetings may be called at the discretion of the chair. Rules and procedures must be adopted by the forum for the governance of its operations and activities;

(2)    make recommendations regarding:

(a)    the respective responsibilities and appropriate roles of state, regional, and local entities;

(b)    the delivery of services to senior South Carolinians;

(c)    what services should be made available to eligible seniors; and

(d)    the allocation of funds to ensure maximum delivery of services to those seniors who are recipients of services;

(3)    sponsor public forums during the year before the Office on Aging's state plan is due for submission to the Administration on Aging.

(4)    respond to the annual draft plan submitted to the forum by the Office on Aging by January 31 of the following year with its comments and recommendations.

(C)    Taking into consideration recommendations developed by the Seniors Forum in accordance with this chapter, the Office on Aging shall develop, in accordance with all applicable federal laws and regulations, a service delivery plan for seniors in this State and in developing and implementing this plan, shall maximize the use of state and federal funds for direct service delivery. The office shall review and revise this service delivery plan annually and shall submit a draft plan to the Seniors Forum annually before December 15 and shall submit a final revised plan to the Governor, the Senate Finance Committee, the Senate Medical Affairs Committee, the House Ways and Means Committee, the House Medical, Military, Public and Municipal Affairs Committee, and the Seniors Forum by March 1 of each year."

SECTION 2.    Section 43-21-140 of the 1976 Code is amended to read:

"Section 43-21-140.    The council has no authority to direct or require any implementing action from any member agency. The council Seniors Forum shall identify future policy issues in long-term care and may conduct research and demonstration activities related to these issues. Through close coordination of each member agency's planning efforts, the council The forum shall develop recommendations for a statewide service delivery system for all health-impaired elderly or disabled persons, regardless of the persons' resources or source of payment. These recommendations must be updated annually as needed and submitted to the Office on Aging, the Senate Medical Affairs Committee, the Senate Finance Committee, the House Ways and Means Committee, the House Medical, Military, Public and Municipal Affairs Committee, and to the Director of the Department of Health and Human Service. The service delivery system must provide for:

(1)    charges based on ability to pay for persons not eligible for Medicaid;

(2)    coordination of community services;

(3)    access to and receipt of an appropriate mix of long-term care services for all health impaired elderly or disabled persons;

(4)    case management; and

(5)    discharge planning and services.

The council, through its member agencies, forum shall study and make recommendations to the Office on Aging concerning the costs and benefits of: adult day care centers, in-home and institutional respite care, adult foster homes, incentives for families to provide in-home care, such as cash assistance, tax credits or deductions, and home-delivered services to aid families caring for chronically-impaired elderly relatives, and preventive health incentives for all elderly citizens."

SECTION 3.    Members must be appointed to the Seniors Forum, established pursuant to Section 1 of this Part, before December 8, 2004, and the first meeting of the Seniors Forum must be called by the Director of the Office on Aging in the Lieutenant Governor's Office before January 10, 2005.

SECTION 4.    Sections 43-21-10, 43-21-20, 43-21-120, and 43-21-130 of the 1976 Code are repealed.

Part V

Prevention of Youth Access to Tobacco

SECTION    1.    This part may be cited as the "Youth Access to Tobacco Prevention Act of 2004."

SECTION    2.    Section 16-17-500 of the 1976 Code, as last amended by Act 445 of 1996, is amended to read:

"Section 16-17-500.    (A)    It shall be is unlawful for any a person to sell, furnish, give, distribute, purchase for, or provide any a minor under the age of eighteen years with cigarettes, tobacco, cigarette paper, or any substitute therefore a tobacco product. Any person violating the provisions of this section, either in person, by agent or in any other way, shall be guilty of a misdemeanor and, upon indictment and conviction, therefor shall be punished as follows:

(1)    for a first offense by a fine not exceeding twenty-five dollars;

(2)    for a second offense, by a fine not exceeding fifty dollars; and

(3)    for a third or subsequent offense, by a fine of not less than one hundred dollars or imprisonment for not more than one year nor less than sixty days, or both.

One-half of any fine imposed shall be paid to the informer of the offense and the other half to the treasurer of the county in which such conviction shall be had.

(B)    It is unlawful for a person to sell a tobacco product to an individual who does not present upon demand proper proof of age. Proof of age is not required from an individual who the person reasonably believes to be over twenty-seven years of age. Failure to require identification to verify a person's age shall be used as evidence to the knowing and intentional violation of this provision unless the person knows the individual is at least eighteen years of age. Proof that is demanded, is shown, and reasonably is relied upon for the individual's proof of age is a defense to an action initiated pursuant to this section. To determine whether a person believes an individual is at least twenty-seven years of age, a court may consider, but is not limited to considering, proof of the individual's general appearance, facial characteristics, behavior, and manners. This subsection does not apply to mail order sales.

(C)    A retail distributor of tobacco products must train its retail sales employees regarding the provisions contained in this section. In lieu of the penalties contained in subsection (F), a retail establishment that fails to comply with this provision must be fined not more than one thousand dollars. A retail establishment that provides proof that it has complied with the provisions contained in this section is not subject to this penalty.

(D)    It is unlawful for an individual less than eighteen years of age to purchase, accept receipt, attempt to purchase, or attempt to accept receipt of a tobacco product, or present or offer to a person proof of age which is false or fraudulent for the purpose of purchasing or possessing a tobacco product. However, a person less than eighteen years of age may be enlisted by local law enforcement agencies to test a community's compliance with this section and to reduce the extent to which tobacco products are sold or distributed to individuals less than eighteen years of age when the testing is under the direct supervision of the law enforcement agency and with the individual's parental consent. In addition, a person less than eighteen years of age may be enlisted by the Office of Alcohol and Other Drug Abuse Services, or a county alcohol and drug abuse authority to test an outlet's compliance with this section, with the permission of the individual's parent or guardian, to collect data for the federally mandated Youth Access to Tobacco Study.

(E)    It is unlawful for an individual less than eighteen years of age to possess a tobacco product. This subsection does not apply to the possession of tobacco products by an individual less than eighteen years of age who delivers tobacco products pursuant to his employment responsibilities.

(F)    Tobacco products may be accessible only in vending machines located in an establishment:

(1)    which is open only to persons who are eighteen years of age or older; or

(2)    where the vending machine is under continuous control by the owner or licensee of the premises, or an employee of the owner or licensee, can be operated only upon activation by the owner, licensee, or employee before each purchase, and is not accessible to the public when the establishment is closed. The owner, licensee, or employee must demand proof of age from a prospective purchaser if he has reasonable grounds to believe the prospective purchaser is less than twenty-seven years of age. Proof that an owner, licensee, or employee demanded, was shown, and reasonably relied upon an individual's proof of age is a defense to any action brought pursuant to this subsection.

Vending machines which distribute tobacco products in establishments must meet the requirements of this section within one hundred-twenty days after the effective date of this section or must be removed.

(G)    A person or individual that intentionally or knowingly violates a provision contained in this section either in person, by agent, or in any other way, is guilty of a misdemeanor and, upon conviction, must be punished as follows:

(1)    for a first offense, by a fine not less than one hundred dollars;

(2)    for a second offense, which occurs within three years of the first offense, by a fine not less than two hundred dollars; and

(3)    for a third or subsequent offense, which occurs within three years of the first offense, by a fine not less than three hundred dollars.

All fines must be placed in the state general fund and distributed in the following manner:

(a)    one-half must be distributed to the treasurer of the county in which the conviction occurred; and

(b)    one-half must be distributed to the county alcohol and drug abuse commission and used for funding youth smoking prevention programs. A violation of this subsection is triable exclusively in either municipal or magistrate court.

A violation of this section is triable exclusively in either municipal or magistrate court.

(H)    In lieu of the penalties contained in subsection (G), a court may require an individual who is less than eighteen years of age who illegally purchases or possesses a tobacco product to perform not less than twenty hours of community service for a first offense and not less than forty hours of community service for a second or subsequent offense.

(I)    As used in this section 'person' means an individual. 'Person' does not mean a firm, partnership, corporation, company, association, club, or commercial entity the person is associated with.

(J)    Notwithstanding any other provision of law, a violation of this section does not violate an establishment's beer and wine permit and is not a ground for revocation or suspension of a beer and wine permit.

(K)    A person who is less than eighteen years of age who is convicted of violating a provision of this section may have his record expunged after his eighteenth birthday if he has paid any fine imposed upon him and successfully completed any court-ordered community service."

SECTION    3.    Section 16-17-501 of the 1976 Code, as added by Act 445 of 1996, is amended to read:

"Section 16-17-501.    As used in this section and Sections 16-17-500, 16-17-502, 16-17-503, and 16-17-504:

(1)    'Distribute' means to sell, furnish, give, or provide tobacco products, including tobacco product samples, cigarette paper, or a substitute for them, to the ultimate consumer.

(2)    'Proof of age' means a driver's license or other documentary or written evidence that the individual is eighteen years of age or older identification card issued by this state, or a United States Armed Services identification card.

(3)    'Sample' means a tobacco product distributed to members of the general public at no cost for the purpose of promoting the products.

(4)    'Sampling' means the distribution of samples to members of the general public in a public place.

(5)    'Tobacco product' means a product that contains tobacco and is intended for human consumption."

Part VI

Severability and Savings

SECTION    1.    (A)    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

(B)    The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

Part VII

Repeals

SECTION    1.    Joint of Resolution 370 of 2002 is repealed. Sections 43-21-10, 43-21-20, 43-21-120, and 43-21-130 of the 1976 Code are repealed.

Part VIII

Time Effective

SECTION    1.    Except as otherwise provided for, this act takes effect upon approval by the Governor.

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