Kansas Statutes 50-1,101. Unlawful acts; promotion or sale of discount card by supplier; conditions on; registration of supplier; financial responsibility
(a) Any supplier who markets, promotes, advertises or otherwise distributes any discount card in Kansas shall not make misleading, deceptive or fraudulent representations regarding the discount or range of discounts offered by such discount card or the access to any range of discounts offered by such discount card.
(b) Any supplier who sells any discount card in Kansas shall:
Terms Used In Kansas Statutes 50-1,101
- Contract: A legal written agreement that becomes binding when signed.
- Discount card: means a card or any other purchasing mechanism or device, which is not insurance, that purports to offer discounts or access to discounts in health-related purchases from health care providers. See Kansas Statutes 50-1,100
- Health care provider: means any person licensed to practice any branch of the healing arts by the state board of healing arts, any person who holds a temporary permit to practice any branch of the healing arts issued by the state board of healing arts, a medical care facility licensed by the department of health and environment, a podiatrist licensed by the state board of healing arts, an optometrist licensed by the board of examiners in optometry, a pharmacist licensed by the state board of pharmacy, a pharmacy registered with the state board of pharmacy, a dentist licensed by the Kansas dental board, a respiratory therapist, a professional corporation organized pursuant to the professional corporation law of Kansas by persons who are authorized by such law to form such a corporation and who are health care providers as defined by this subsection, a Kansas limited liability company organized for the purpose of rendering professional services by its members who are health care providers as defined by this subsection and who are legally authorized to render the professional services for which the limited liability company is organized, a partnership of persons who are health care providers under this subsection, a Kansas not-for-profit corporation organized for the purpose of rendering professional services by persons who are health care providers as defined by this subsection. See Kansas Statutes 50-1,100
- Month: means a calendar month, unless otherwise expressed. See Kansas Statutes 77-201
- Network of health care providers: means two or more separate health care providers who have specifically authorized the network to enter into a discount card program and who are contractually obligated to honor the discount card contract entered into by the network of health care providers. See Kansas Statutes 50-1,100
- Service area: means the area defined by the consumer's zip code. See Kansas Statutes 50-1,100
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
(1) File an annual notice with the secretary of state of the intention to sell the discount card on a form as prescribed by the secretary of state to be signed under penalty of perjury.
(2) State in bold and prominent type that such discount is not insurance on all advertisements and on all discount cards;
(3) have a separate contract with each health care provider or network of health care providers listed in conjunction with the discount card;
(4) not make misleading, deceptive or fraudulent representations regarding the discount or range of discounts offered by such discount card or the access to any range of discounts offered by such discount card; and
(5) (A) Except as provided in subparagraph (B), provide each prospective customer before purchase or at the time of the confirmation required by Kan. Stat. Ann. § 50-672, and amendments thereto, a written list for each type of service offered in conjunction with the discount card containing the name, address, and phone number of the closest 25 health care providers in the prospective customer’s service area that are contractually bound to honor the discount card. The written list of providers may be provided electronically if requested in that format by the prospective customer.
(B) Unless the supplier has complied with subparagraph (A), the supplier of the discount card must provide the customer a 30-day right to cancel and shall mail the written list required by subparagraph (A) of paragraph 4 within seven calendar days of the date of the transaction.
(6) Make available to each customer on an ongoing basis thereafter through a toll-free telephone number, the internet, or in writing upon request, the name, address and phone number of all health care providers in such customer’s service area who are contractually bound to honor the discount card.
(7) Maintain a surety bond in the amount of $50,000. The surety bond shall be submitted to the secretary of state along with the annual notice. Each surety bond shall be approved by the attorney general prior to filing. Each surety bond shall be subject to the following:
(A) A copy of the bond, and thereafter proof of annual renewal of the bond, shall be filed with the secretary of state with the annual notice. Each such filing shall be accompanied by a filing fee of no more than $250 to cover the cost of filing and administration. Fees received under this act by the secretary of state shall be deposited in the state treasury to the credit of the information services fee fund.
(B) No surety on a discount card company bond shall cancel such bond without giving written notice thereof to the secretary of state and discount card company. Unless such discount card company files another $50,000 surety bond with the secretary of state on or before the cancellation date of such discount card company’s surety bond, then such discount card company will no longer be authorized to do business in this state as a discount card company.
(C) The bond shall be in favor of any person and the attorney general for the benefit of any person who is damaged by any violation of this act, including any violation by the supplier or by any other person which markets, promotes, advertises or otherwise distributes a discount card on behalf of the supplier. The bond shall cover any violation occurring during the time period during which the bond is in effect.
(D) Any person claiming against the bond for a violation of this act may maintain an action at law against the discount card company.
(c) The month in which the supplier files its first annual notice with the secretary of state is the month in which its filings are due annually thereafter.