H 4792

South Carolina General Assembly
126th Session, 2025-2026
Bill 4792
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION 38-2-10, RELATING TO ADMINISTRATIVE PENALTIES FOR VIOLATIONS OF STATE
AND FEDERAL INSURANCE LAWS IN THIS STATE, SO AS TO INCREASE PENALTIES FOR
VIOLATIONS BY INSURERS, PHARMACY BENEFITS MANAGERS, AND HEALTH MAINTENANCE
ORGANIZATIONS; AND BY AMENDING SECTION 38-71-2210, RELATING TO LICENSE
REQUIREMENTs FOR PHARMACY BENEFITS MANAGERS, SO AS TO INCREASE LICENSE
APPLICATION AND RENEWAL FEES.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Section 38-2-10(A)(1) of the S.C. Code is amended to
read:
    (1) If the violator is an insurer,
pharmacy benefits manager, or a health maintenance organization licensed in
this State, the director or his designee shall fine the violator in an amount
not to exceed fifteentwenty-five
thousand dollars, suspend or revoke the violator's authority to do business in
this State, or both. If the violation is wilful, the director or his designee
shall fine the violator in an amount not to exceed thirtytwo hundred fifty thousand dollars, suspend or revoke the
violator's authority to do business in this State, or both.
SECTION 2.  Section 38-71-2210(A)(2) of the S.C. Code is amended to
read:
    (2) The director shall prescribe the
application for a license to operate in this State as a pharmacy benefits
manager and may charge an initial application fee of onetwenty-five thousand dollars and an annual renewal fee of
five hundredten thousand
dollars, provided the pharmacy benefits manager application form must collect
the following information:
  (a)
the name, address, and telephone contact number of the pharmacy benefits
manager;
  (b)
the name and address of the pharmacy benefits manager's agent for service of
process in the State;
  (c)
the name and address of each person with management or control over the
pharmacy benefits manager;
  (d)
the name and address of each person with a beneficial ownership interest in the
pharmacy benefits manager;
  (e)
a signed statement indicating that, to the best of their knowledge, no officer
with management or control of the pharmacy benefits manager has been convicted
of a felony or has violated any of the requirements of state law applicable to
pharmacy benefits managers, or, if the applicant cannot provide such a
statement, a signed statement describing the relevant conviction or violation;
and
  (f)
in the case of a pharmacy benefits manager applicant that is a partnership or
other unincorporated association, limited liability company, or corporation,
and has five or more partners, members, or stockholders:
  (i) the applicant shall specify its
legal structure and the total number of its partners, members, or stockholders
who, directly or indirectly, own, control, hold with the power to vote, or hold
proxies representing ten percent or more of the voting securities of any other
person;  and
  (ii) the applicant shall agree that,
upon request by the department, it shall furnish the department with
information regarding the name, address, usual occupation, and professional
qualifications of any other partners, members, or stockholders who, directly or
indirectly, own, control, hold with the power to vote, or hold proxies
representing ten percent or more of the voting securities of any other person.
SECTION 3.  This act takes effect upon approval
by the Governor.
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This web page was last updated on December 17, 2025 at 01:51 PM