Read 1st time February 2, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To amend chapter 407, RSMo, by adding thereto four new sections relating to the deceptive sale or promotion of health-related cash discount cards, with a penalty provision.
Section A. Chapter 407, RSMo, is amended by adding thereto four new sections, to be known as sections 407.1350, 407.1353, 407.1356 and 407.1360, to read as follows:
407.1350. It shall be unlawful 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 where:
(1) Such card or other purchasing mechanism or device does not expressly provide in bold and prominent type that the discounts are not insurance;
(2) Such discounts are not specifically authorized by an individual and separate contract with each health care provider listed in conjunction with the card or other purchasing mechanism or device; or
(3) The discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered are misleading, deceptive or fraudulent, regardless of the literal wording used.
407.1353. 1. Any person, firm, private corporation, trade association, or municipal or other public corporation may maintain an action to enjoin a continuance of any act or acts in violation of sections 407.1350 to 407.1360 and for the recovery of damages.
2. Any person subject to liability pursuant to this section shall be deemed, as a matter of law, to have purposefully availed himself or herself of the privileges of conducting activities within the state of Missouri sufficient to subject such person to the personal jurisdiction of the circuit court hearing an action brought pursuant to sections 407.1350 to 407.1360.
3. An action for a violation of this section may be brought in the county where the plaintiff resides, where the plaintiff conducts business, or where the card or other purchasing mechanism or device was sold, marketed, promoted, advertised or otherwise distributed.
4. (1) In such action, if the court finds that the defendant is violating or has violated any of the provisions of sections 407.1350 to 407.1360, the court shall enjoin the defendant from a continuance thereof.
(2) Except to recover for actual damages pursuant to paragraph (b) of subdivision (3) of this subsection, the plaintiff shall not be required to allege or prove actual damages.
(3) In addition to injunctive relief, the plaintiff shall be entitled to recover from the defendant:
(a) One hundred dollars per card or other purchasing mechanism or device sold, marketed, promoted, advertised or otherwise distributed within the state of Missouri, or ten thousand dollars, whichever is greater;
(b) Three times the amount of the actual damages, if any, sustained;
(c) Reasonable attorney's fees;
(d) Costs; and
(e) Any other relief which the court deems proper.
5. All actions pursuant to this section shall be commenced within two years after the date on which the violation occurred or within two years after the person bringing the action discovered, or in the exercise of reasonable diligence, should have discovered the occurrence of the violation. The period of limitation provided in this section may be extended for a period of one hundred eighty days if the person bringing the action proves by a preponderance of the evidence that the failure to timely commence the action was caused by the defendants engaging in conduct solely calculated to induce the plaintiff to refrain from or postpone the commencement of the action.
6. The remedies prescribed in this section are cumulative and in addition to any other remedy provided by law.
407.1356. Any person who sells, markets, promotes, advertises or otherwise distributes any card or other purchasing mechanism or device, which is not insurance, that purports to offer discounts from health care providers in health-related purchases in Missouri shall designate an agent who is a resident of Missouri for service of process and register such agent with the secretary of state.
407.1360. Nothing in sections 407.1350 to 407.1360 shall be construed to apply to eye or vision care services,
glasses or contact lenses provided by an optometrist or ophthalmologist.
Missouri House of Representatives