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S1406aa.....................................by COMMERCE AND HUMAN RESOURCES
DISCOUNT CARDS - Adds to existing law to make it unlawful, under specified
circumstances, for any person to sell, market, promote, advertise or
otherwise distribute any card or other purchasing mechanism or device,
which is not insurance, that purports to offer discounts or access to
discounts from health care providers in health-related purchases.
02/11 Senate intro - 1st rdg - to printing
02/14 Rpt prt - to Com/HuRes
02/25 Rpt out - to 14th Ord
03/01 Rpt out amen - to engros
03/02 Rpt engros - 1st rdg - to 2nd rdg as amen
03/03 2nd rdg - to 3rd rdg as amen
03/09 3rd rdg as amen - PASSED - 32-0-3
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, Lee, Noh, Parry, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Walton/Branch,
Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--King-Barrutia, McLaughlin, Thorne
Floor Sponsor - Wheeler
Title apvd - to House
03/10 House intro - 1st rdg as amen - to Health/Wel
03/15 Rpt out - rec d/p - to 2nd rdg as amen
03/16 2nd rdg - to 3rd rdg as amen
03/29 3rd rdg as amen - PASSED - 63-0-7
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
Callister, Campbell, Chase, Cheirrett, Clark, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher, Marley,
McKague, Meyer, Montgomery, Mortensen, Moss, Pearce, Pischner,
Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman,
Trail, Wood, Zimmermann
NAYS -- None
Absent and excused -- Barrett, Crow, Geddes, Mader, Moyle, Wheeler,
Mr Speaker
Floor Sponsor - Cheirrett
Title apvd - to Senate
03/30 To enrol - rpt enrol - Pres signed
03/31 Sp signed
04/03 To Governor
04/04 Governor signed
Session Law Chapter 185
Effective: 07/01/00
S1406
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1406, As Amended
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO CONSUMER PROTECTION; AMENDING TITLE 48, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW CHAPTER 16, TITLE 48, IDAHO CODE, TO PROVIDE UNLAWFUL PRAC-
4 TICES FOR OFFERING DISCOUNTS OR ACCESS TO DISCOUNTS FROM HEALTH CARE
5 PROVIDERS USING CASH DISCOUNT CARDS IN HEALTH-RELATED PURCHASES AND TO
6 PROVIDE EXCEPTIONS, TO PROVIDE COURT ACTIONS UPON VIOLATION OF LAW AND TO
7 PROVIDE FOR DESIGNATION OF AN AGENT FOR SERVICE OF PROCESS IN THIS STATE;
8 AND PROVIDING AN EFFECTIVE DATE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Title 48, Idaho Code, be, and the same is hereby amended
11 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
12 ter 16, Title 48, Idaho Code, and to read as follows:
13 CHAPTER 16
14 HEALTH-RELATED CASH DISCOUNT CARDS
15 48-1601. UNLAWFUL PRACTICES -- EXCEPTIONS. It shall be unlawful and a
16 violation of this chapter for any person to sell, market, promote, advertise
17 or otherwise distribute any card or other purchasing mechanism or device,
18 which is not insurance, that purports to offer discounts or access to dis-
19 counts from health care providers in health-related purchases where:
20 (1) Such card or other purchasing mechanism or device does not expressly
21 provide in bold and prominent type that the discounts are not insurance;
22 (2) Such discounts are not specifically authorized by an individual and
23 separate contract with each health care provider listed in conjunction with
24 the card or other purchasing mechanism or device; or
25 (3) The discounts or access to discounts offered or the range of dis-
26 counts or access to the range of discounts offered are misleading, deceptive
27 or fraudulent, regardless of the literal wording used.
28 (4) Nothing in this chapter shall be construed to apply to:
29 (a) A customer discount or membership card issued by a store or buying
30 club for use at that store or buying club;
31 (b) A benefit administered by an insurer, a carrier or a managed care
32 organization as defined in sections 41-103, 41-2212 and 41-3903, Idaho
33 Code, respectively.
34 48-1602. COURT ACTIONS UPON VIOLATION. (1) The attorney general of the
35 state of Idaho, any person, firm, private corporation, municipal or other pub-
36 lic corporation, or trade association, may maintain an action to enjoin a con-
37 tinuance of any act or acts in violation of this chapter and for the recovery
38 of damages.
39 (2) Any person subject to liability under this section shall be deemed,
40 as a matter of law, to have purposefully availed himself of the privileges of
41 conducting activities within Idaho, sufficient to subject the person to the
2
1 personal jurisdiction of the district court hearing an action brought pursuant
2 to this chapter.
3 (3) An action for violation of this section may be brought:
4 (a) In the county where the plaintiff resides;
5 (b) In the county where the plaintiff conducts business; or
6 (c) In the county where the card or other purchasing mechanism or device
7 was sold, marketed, promoted, advertised or otherwise distributed.
8 (4) If, in such action, the court shall find that the defendant is vio-
9 lating or has violated any of the provisions of this chapter, it shall enjoin
10 the defendant from a continuance thereof. It shall not be necessary, except to
11 recover for actual damages under subsection (5) of this section, that actual
12 damages to the plaintiff be alleged or proved.
13 (5) In addition to injunctive relief, the plaintiff in the action shall
14 be entitled to recover from the defendant:
15 (a) One hundred dollars ($100) per card or other purchasing mechanism or
16 device sold, marketed, promoted, advertised or otherwise distributed
17 within the state of Idaho, or ten thousand dollars ($10,000), whichever is
18 greater;
19 (b) Three (3) times the amount of the actual damages, if any sustained;
20 (c) Reasonable attorney's fees;
21 (d) Costs; and
22 (e) Any other relief which the court deems proper.
23 (6) All actions under this section shall be commenced within two (2)
24 years after the date on which the violation of this chapter occurred or within
25 two (2) years after the person bringing the action discovered, or in the exer-
26 cise of reasonable diligence, should have discovered, the occurrence of the
27 violation of this chapter. The period of limitation provided in this section
28 may be extended for a period of one hundred eighty (180) days if the person
29 bringing the action proves by a preponderance of the evidence that the failure
30 to timely commence the action was caused by the defendant's engaging in con-
31 duct solely calculated to induce the plaintiff to refrain from or postpone
32 commencement of the action.
33 (7) Any defendant in an action brought under the provisions of this chap-
34 ter may be required to testify as provided by law. In addition, the books and
35 records of any such defendant may be brought into court and introduced, by
36 reference, into evidence.
37 (8) The remedies prescribed in this section are cumulative and in addi-
38 tion to any other remedies prescribed by law, and in addition to any other
39 applicable criminal, civil or administrative penalties.
40 48-1603. DESIGNATION OF AGENT. Any person who sells, markets, promotes,
41 advertises or otherwise distributes any card or other purchasing mechanism or
42 device, which is not insurance, that purports to offer discounts from health
43 care providers in health-related purchases in Idaho, shall designate an agent
44 who is a resident of Idaho, for service of process and register such agent
45 with the secretary of state.
46 SECTION 2. This act shall be in full force and effect on and after July
47 1, 2000.
AS1406
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Wheeler
Seconded by Crow
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1406
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 15, following "PRACTICES" insert:
3 "-- EXCEPTIONS"; following line 27, insert:
4 "(4) Nothing in this chapter shall be construed to apply to:
5 (a) A customer discount or membership card issued by a store or buying
6 club for use at that store or buying club;
7 (b) A benefit administered by an insurer, a carrier or a managed care
8 organization as defined in sections 41-103, 41-2212 and 41-3903, Idaho
9 Code, respectively."; and in line 28, delete "Any" and insert: "The attor-
10 ney general of the state of Idaho, any".
11 On page 2, in line 17, delete "the chapter" and insert: "this chapter".
12 CORRECTION TO TITLE
13 On page 1, in line 5, following "PURCHASES" insert: "AND TO PROVIDE EXCEP-
14 TIONS".
STATEMENT OF PURPOSE
RS 09684C1
Adds a new section to the Idaho Code to prohibit a promotional scam involving a
card purporting to offer discounts from health care providers under certain
circumstances that are misleading, deceptive or fraudulent. It provides for court
action upon violation of the terms of the act and awards damages and cost
recovery.
FISCAL IMPACT
None
Contact
Name: Sen. "Moon" Wheeler
Phone: 332-1409
Jennifer Lindsey
342-0010
STATEMENT OF PURPOSE/FISCAL NOTE S 1406