Texas Senate Bill SB1142

Texas 2015 - 84th Regular

Caption

Relating to regulation of discount drug card program operators; authorizing administrative and civil penalties; authorizing fees; expanding a registration requirement.

Impact

The enactment of SB1142 will have a substantial impact on the state’s insurance laws, specifically targeting discount drug card operators. By mandating registration and compliance, the bill aims to prevent fraudulent practices and ensure that consumers are fully informed about the nature of the discounts they receive. The Texas Department of Insurance will be empowered to investigate complaints and investigate the business practices of operators, fostering a more transparent environment in the discount drug services industry.

Summary

SB1142 aims to enhance the regulation of discount drug card programs in Texas by introducing new requirements for program operators. The bill seeks to define and limit unfair competition and deceptive trade practices within the discount drug card sector. It significantly expands the registration requirements for operators, ensuring that only compliant entities can offer such programs. Additionally, it lays the groundwork for administrative and civil penalties against operators who fail to adhere to the new regulations, aiming to protect consumers from misleading practices.

Contention

While there is general support for measures that protect consumers from deceptive practices, there may be contention regarding the additional regulatory burden placed on discount drug card operators. Opponents may argue that the increased fees and compliance obligations could limit competition and availability of discount programs. Some stakeholders might express concerns that the requirement for registration could create barriers for new market entrants, potentially reducing options for consumers seeking affordable drug alternatives.