Introduced Version




SENATE BILL No. 482

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 24-5-21 .

Synopsis: Prescription drug discount card. Provides that a person may not sell, market, promote, advertise, or distribute a card, a device, or another purchasing mechanism that is not insurance that purports to offer discounts or access to discounts from a pharmacy for purchases of prescription drugs or devices if certain conditions exist. Provides penalties for violations.

Effective: July 1, 2001.



Johnson


    January 22, 2001, read first time and referred to Committee on Corrections, Criminal and Civil Procedures.




Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 482


    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulations; consumer sales and credit.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 24-5-21 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
     Chapter 21. Prescription Drug Discount Cards
    Sec. 1. This chapter does not apply to the following:
        (1) Eye or vision care services, glasses, or contact lenses provided by an optometrist or ophthalmologist.
        (2) A card, a device, or another purchasing mechanism that is not insurance but that is administered in conjunction with a health or medical benefit by an insurance company, a nonprofit health service plan corporation, or a health maintenance organization.
        (3) A benefit administered by or under contract with the state of Indiana.
        (4) A customer discount or membership card issued by a store or buying club for use at that store or buying club.
    Sec. 2. As used in this chapter, "person" has the meaning set

forth in IC 24-5-0.5-2.
    Sec. 3. A person may not sell, market, promote, advertise, or distribute a card, a device, or another purchasing mechanism that purports to offer discounts or access to discounts from a pharmacy for purchases of prescription drugs or devices in the following situations:
        (1) The card, device, or other purchasing mechanism does not expressly state in bold and prominent type that the discounts are not insurance. This statement must be prominently placed.
        (2) The discounts are not specifically authorized by an individual and separate contract with each pharmacy listed with the card, device, or other purchasing mechanism.
        (3) The discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered, are deceptive or misleading.
    Sec. 4. A person, who is not exempt under section 1 of this chapter, who sells, markets, promotes, advertises, or distributes a card, a device, or another purchasing mechanism that purports to offer discounts or access to discounts from a pharmacy for purchases of prescription drugs or devices shall designate a resident in Indiana as an agent for service of process and register the agent with the secretary of state.
    Sec. 5. A contract entered into to purchase a card, a device, or another purchasing mechanism that purports to offer discounts or access to discounts from a pharmacy for purchases of prescription drugs or devices that does not comply with this chapter is voidable by the purchaser.
    Sec. 6. (a) The attorney general, a prosecuting attorney, or an individual may maintain an action to enjoin any act that is in violation of this chapter and for the recovery of damages.
    (b) An action brought under this section may be brought in the county where:
        (1) the plaintiff resides or conducts business;
        (2) the defendant resides or conducts business; or
        (3) the card, device, or other purchasing mechanism that purports to offer discounts or access to discounts from a pharmacy for purchases of prescription drugs or devices was sold, marketed, promoted, advertised, or distributed.
    (c) If the court finds that the defendant violated any provision of this chapter, the court shall enjoin the defendant from continuing the acts that are in violation of this chapter.

    (d) A plaintiff who prevails in an action under this chapter may recover the following:
        (1) A sum equal to one hundred dollars ($100) per card, device, or other purchasing mechanism that is sold or distributed in Indiana or ten thousand dollars ($10,000), whichever is greater.
        (2) Three (3) times the amount of actual damages, if any.
        (3) Reasonable attorney's fees.
        (4) Court costs.
        (5) Any other relief that the court considers proper.
    Sec. 7. (a) The provisions of this chapter are not exclusive and do not relieve a person from compliance with other applicable provisions of law.
    (b) The penalties in this chapter are cumulative and in addition to any applicable penalties.
    (c) A person that violates this chapter is subject to the penalties set forth in IC 24-5-0.5.
    (d) All actions brought under this chapter must be brought within two (2) years after the date on which the violation of this chapter occurred.