Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 303-S.F.No. 2579 
                  An act relating to trade regulations; regulating 
                  certain prescription drug discounts; providing 
                  remedies; proposing coding for new law in Minnesota 
                  Statutes, chapter 325F. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [325F.784] [PRESCRIPTION DRUG DISCOUNTS.] 
           Subdivision 1.  [REGULATION.] A person shall not sell, 
        market, promote, advertise, or otherwise distribute any card or 
        other purchasing mechanism or device that is not insurance that 
        purports to offer discounts or access to discounts from 
        pharmacies for prescription drug purchases when: 
           (1) the card or other purchasing mechanism or device does 
        not expressly state in bold and prominent type, prominently 
        placed, that the discounts are not insurance; 
           (2) the discounts are not specifically authorized by an 
        individual and separate contract with each pharmacy 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. 
           Subd. 2.  [ENFORCEMENT.] (a) The attorney general, or an 
        individual or other person, may maintain an action to enjoin any 
        act in violation of this section and for the recovery of damages.
           (b) An action for violation of this section may be brought: 
           (1) in the county where the plaintiff resides; 
           (2) in the county where the plaintiff conducts business; or 
           (3) in the county where the card or other purchasing 
        mechanism or device was sold, marketed, promoted, advertised, or 
        otherwise distributed. 
           (c)(1) If the court finds that the defendant has violated 
        any of the provisions of this section, the court shall enjoin 
        the defendant from continuing the acts that are in violation of 
        this section. 
           (2) It is not necessary, except to recover for actual 
        damages under clause (3), item (ii), that actual damages to the 
        plaintiff be alleged or proved in order to maintain an action 
        under this section. 
           (3) In addition to injunctive relief, the plaintiff in the 
        action may recover from the defendant: 
           (i) $100 per card or other purchasing mechanism or device 
        sold, marketed, promoted, advertised, or otherwise distributed 
        within this state, or $10,000, whichever is greater; 
           (ii) three times the amount of the actual damages, if any, 
        sustained; 
           (iii) reasonable attorney fees; 
           (iv) costs; and 
           (v) any other relief that the court considers proper. 
           (d) An action under this section must 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. 
           (e) The remedies prescribed in this section are cumulative 
        and in addition to any other applicable criminal, civil, or 
        administrative penalties. 
           Subd. 3.  [DESIGNATION OF AGENT FOR SERVICE OF 
        PROCESS.] Any person who sells, markets, promotes, advertises, 
        or otherwise distributes any card or other purchasing mechanism 
        or device that 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. 
           Subd. 4.  [NONAPPLICATION.] This section does not apply to: 
           (1) the following goods or services provided by an 
        optometrist or ophthalmologist:  eye or vision care services, 
        glasses, or contact lenses; 
           (2) any card or other purchasing mechanism or device that 
        is not insurance and which is administered in conjunction with a 
        medical benefit by a health insurer, or nonprofit health service 
        plan corporation or health maintenance organization; 
           (3) a benefit administered by or under contract with, the 
        state of Minnesota; or 
           (4) a customer discount or membership card issued by a 
        store or buying club for use at that store or buying club. 
           Presented to the governor March 28, 2000 
           Signed by the governor March 31, 2000, 2:43 p.m.