reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 2 - THIRD PARTY ADMINISTRATORS (§§ 23-92-201 — 23-92-208) › Section 23-92-208 - Compensation

The compensation for an administrator may be based on:
(1)
Premiums or charges collected;
(2)
The number of claims paid or processed; or
(3)
Some other fair and equitable basis provided by the contract.
Acts 1985, No. 796, § 6; A.S.A. 1947, § 66-6008.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-401 - Title

This subchapter may be cited as the "Arkansas Professional Employer Organization Recognition and Licensing Act".
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-407 - Fees

(a)
Upon filing an initial licensing statement under this subchapter, a professional employer organization shall pay an initial licensing fee of one thousand dollars ($1,000).
(b)
Upon each biennial renewal of a licensing statement filed under this subchapter, a professional employer organization shall pay a renewal fee of one thousand dollars ($1,000).
(c)
Each professional employer organization exempt from licensing under the terms of this subchapter shall pay an exemption fee in the amount of fifty dollars ($50.00) upon initial application for exemption and upon each biennial renewal of the exemption.
(d)
Upon the filing of each request for a change in ownership or controlling person filed under this subchapter, a professional employer organization shall pay a change-in-ownership fee of five hundred dollars ($500).
(e)
By rule, the Insurance Commissioner may increase, decrease, or eliminate any fee provided for in this section, but no fee provided for in this section shall ever exceed five thousand dollars ($5,000).
Amended by Act 2019, No. 315,§ 2774, eff. 7/24/2019.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-410 - Issuance, refusal, suspension, or revocation of license - Grounds and procedure

(a)
The Insurance Commissioner shall issue a license as a professional employer organization to any person who qualifies for the license under the terms of this subchapter.
(b)
In addition, the commissioner may refuse to issue a license to any person, may suspend or revoke the license of any professional employer organization, or impose administrative fines as provided for in this subchapter when the commissioner finds:
(1)
That the licensee or applicant has violated any of the provisions of this subchapter, the rules or other orders lawfully promulgated by the commissioner, or the conditions of financial assurances required by this subchapter;
(2)
That the licensee or applicant has engaged in a fraudulent, deceptive, or dishonest practice; or
(3)
For good and sufficient cause, that the licensee or applicant is unfit to be a professional employer organization within the meaning of this subchapter or of any of the rules or orders lawfully promulgated by the commissioner.
(c)
The commissioner may not refuse to issue a license or suspend or revoke a license unless he or she furnishes the professional employer organization with a written statement of the charges against it and affords it an opportunity to be heard on the charges.
Amended by Act 2019, No. 315,§ 2777, eff. 7/24/2019.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-412 - Penalties

(a)
Any person who engages in the business of a professional employer organization or acts as a professional employer organization without first procuring a license or who otherwise violates any of the provisions under this subchapter shall be liable for a civil penalty of not less than two hundred fifty dollars ($250) nor more than five thousand dollars ($5,000) for each day that it engages in the business of providing professional employer services without a license.
(b)
(1)
Any person who violates any of the provisions under this subchapter or who violates any rules promulgated by the Insurance Commissioner under this subchapter shall be liable for a civil penalty for each offense of not less than two hundred fifty dollars ($250) nor more than five thousand dollars ($5,000) for each violation.
(2)
For any violation affecting two (2) or more employees covered by a professional employer organization agreement, the fine shall be multiplied by the number of employees affected by the violation.
(c)
The commissioner shall have the statutory power to enjoin or restrain by bringing an action in the Pulaski County Circuit Court against any person who engages in the business of or acts as a professional employer organization without having first procured a license for engaging in the business of a professional employer organization or acting as a professional employer organization.
Amended by Act 2019, No. 315,§ 2778, eff. 7/24/2019.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-413 - Nondisclosure of proprietary information

(a)
(1)
Professional employer organizations and professional employer organization groups are required under this subchapter to file with the Insurance Commissioner certain proprietary material, including financial records and financial information and client lists, the disclosure of which would give advantage to competitors.
(2)
(A)
The commissioner shall not consider proprietary material under this subchapter to be subject to mandatory disclosure under §
25-19-105(b)(9)(A)
.
(B)
If litigation or any other proceedings are instituted to compel disclosure, the total expense of the proceedings shall be paid by the professional employer organization or professional employer organization group whose proprietary material is being sought.
(C)
The commissioner shall give notice in writing to any professional employer organization or professional employer organization group whose client lists or other material that the commissioner deems to be proprietary are being sought under the Freedom of Information Act of 1967, §
25-19-101
et seq.
(b)
Notwithstanding subsection (a) of this section or any other law governing disclosure of confidential information, the commissioner, the Director of the Division of Workforce Services, and the Workers' Compensation Commission may exchange information among themselves for the purposes of regulating professional employer organizations.
Amended by Act 2019, No. 910,§ 611, eff. 7/1/2019.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-414 - Employer service assurance organization affidavit

(a)
The Insurance Commissioner may provide by rule for the acceptance of an employer service assurance organization affidavit provided on behalf of a professional employer organization in lieu of the requirements under §§
23-92-404
-
23-92-406
and
23-92-408
and the fees provided for in §
23-92-407
.
(b)
The fee for filing an employer service assurance organization affidavit shall be five hundred dollars ($500) for initial licensure and five hundred dollars ($500) for each biennial renewal.
Amended by Act 2019, No. 315,§ 2779, eff. 7/24/2019.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-416 - Employer service assurance organizations - Prohibited activities

(a)
No employer service assurance organization shall attempt to monopolize or to combine or conspire with any other person to monopolize any market or make any arrangement with any professional employer organization, employer service assurance organization, or other person that has the purpose or effect of unreasonably restraining trade or of substantially lessening competition in the business of professional employer organization services or insurance.
(b)
An employer service assurance organization may not have or adopt any rule, exact any agreement, or formulate or engage in any program that would require any member or subscriber to:
(1)
Interfere with the right of any professional employer organization to conduct business in the state as permitted by law and independent of that service organization;
(2)
Utilize some or all of its services as provided by the service organization's policies and procedures as approved by the Insurance Commissioner;
(3)
Adhere to its standards, procedures, or membership requirements except on a voluntary basis; or
(4)
Prevent any professional employer organization from acting independently.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-417 - Employer service assurance organization - Permitted activities

In addition to other activities permitted, any employer service assurance organization may:
(1)
Provide services under §
23-92-414
and §
23-92-419(b)
;
(2)
Develop and administer standards, procedures, and programs of accreditation and financial assurance and other services for professional employer organizations and state agencies unless otherwise prohibited by law; and
(3)
Furnish any other services not prohibited by this subchapter.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-418 - Filing of information

(a)
Each employer service assurance organization shall file with the Insurance Commissioner each affidavit and related document and information under §
23-92-414
or §
23-92-419(b)
on or before the date the affidavit or related document and information are otherwise due, as prescribed by the commissioner.
(b)
The commissioner may extend the filing deadline by prior written notice to the filer.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 4 - ARKANSAS PROFESSIONAL EMPLOYER ORGANIZATION RECOGNITION AND LICENSING ACT (§§ 23-92-401 — 23-92-419) › Section 23-92-419 - Rules

(a)
(1)
The Insurance Commissioner may prescribe rules for the conduct of the business of professional employer organizations needed to implement this subchapter.
(2)
The commissioner shall adopt rules under this subchapter in compliance with the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
(b)
(1)
The commissioner may adopt reasonable rules for use by employer service assurance organizations to record and report to the commissioner information determined by the commissioner to be necessary or appropriate for the administration of this subchapter and for the effectuation of its purposes.
(2)
The commissioner may designate one (1) or more employer service assurance organizations to assist him or her in gathering, compiling, and reporting the information.
Amended by Act 2019, No. 315,§ 2780, eff. 7/24/2019.
Acts 2003, No. 1750, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-501 - Title

This subchapter shall be known and may be cited as the "Arkansas Pharmacy Benefits Manager Licensure Act".
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-502 - Purpose

(a)
This subchapter establishes the standards and criteria for the regulation and licensure of pharmacy benefits managers providing claims processing services or other prescription drug or device services for health benefit plans.
(b)
The purpose of this subchapter is to:
(1)
Promote, preserve, and protect the public health, safety, and welfare through effective regulation and licensure of pharmacy benefits managers;
(2)
Provide for powers and duties of the Insurance Commissioner, the State Insurance Department, and other state agencies and officers; and
(3)
Prescribe penalties and fines for violations of this subchapter.
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-504 - License to do business - Application - Fees - Rules

(a)
(1)
A person or organization shall not establish or operate as a pharmacy benefits manager in Arkansas for health benefit plans without obtaining a license from the Insurance Commissioner under this subchapter.
(2)
The commissioner shall prescribe the application for a license to operate in Arkansas as a pharmacy benefits manager and may charge application fees and renewal fees as established by rule.
(b)
The commissioner shall issue rules establishing the licensing, fees, application, financial standards, penalties, compliance and enforcement requirements, and reporting requirements of pharmacy benefits managers under this subchapter.
Amended by Act 2023, No. 302,§ 2, eff. 8/1/2023.
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-505 - Pharmacy benefits manager network adequacy

(a)
A pharmacy benefits manager shall provide:
(1)
(A)
A reasonably adequate and accessible pharmacy benefits manager network for the provision of prescription drugs for a health benefit plan that shall provide for convenient patient access to pharmacies within a reasonable distance from a patient's residence.
(B)
A mail-order pharmacy shall not be included in the calculations determining pharmacy benefits manager network adequacy; and
(2)
A pharmacy benefits manager network adequacy report describing the pharmacy benefits manager network and the pharmacy benefits manager network's accessibility in this state in the time and manner required by rule issued by the State Insurance Department.
(b)
(1)
The Insurance Commissioner may examine the books and records of a pharmacy benefits manager as necessary to determine:
(A)
The aggregate amount of rebates received by a pharmacy benefits manager;
(B)
The aggregate amount of rebates distributed by a pharmacy benefits manager to an appropriate healthcare payor; and
(C)
The aggregate amount of rebates passed on to an enrollee of each healthcare payor at the point of sale that reduced the enrollee's applicable deductible, copayment, coinsurance, or other cost-sharing amount.
(2)
The commissioner may examine the books and records of a pharmacy benefits manager as necessary to determine:
(A)
The individual and aggregate amount paid by a healthcare payor to the pharmacy benefits manager for pharmacist services itemized by pharmacy, product, and goods and services, including other prescription drug or device services; and
(B)
The individual and aggregate amount a pharmacy benefits manager paid for pharmacist services itemized by pharmacy, product, and goods and services, including other prescription drug or device services.
(c)
A pharmacy benefits manager is prohibited from conducting spread pricing in this state.
(d)
This section does not limit the power of the commissioner to examine or audit the books and records of a pharmacy benefits manager under this subchapter.
Amended by Act 2023, No. 302,§ 4, eff. 8/1/2023.
Amended by Act 2023, No. 302,§ 3, eff. 8/1/2023.
Amended by Act 2021, No. 665,§ 5, eff. 7/28/2021.
Amended by Act 2019, No. 994,§ 8, eff. 7/24/2019.
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-507 - Gag clauses prohibited

(a)
The prohibitions under §
23-99-407
apply to participation contracts between pharmacy benefits managers and pharmacists or pharmacies providing prescription drug coverage for health benefit plans.
(b)
A pharmacy or pharmacist may provide to an insured information regarding the insured's total cost for pharmacist services for a prescription drug.
(c)
A pharmacy or pharmacist shall not be proscribed by a pharmacy benefits manager from discussing information regarding the total cost for pharmacist services for a prescription drug or from selling a more affordable alternative to the insured if a more affordable alternative is available.
(d)
A pharmacy benefits manager contract with a participating pharmacist or pharmacy shall not prohibit, restrict, or limit disclosure of information to the Insurance Commissioner, law enforcement, or state and federal governmental officials investigating or examining a complaint or conducting a review of a pharmacy benefits manager's compliance with the requirements under this subchapter.
(e)
Without limiting its application to any other plan or program, this section applies to an organization or entity directly or indirectly providing services to patients under the Medicaid Provider-Led Organized Care Act, §
20-77-2701
et seq., or any other Medicaid-managed care program operating in this state.
Amended by Act 2019, No. 994,§ 11, eff. 7/24/2019.
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-508 - Enforcement

(a)
The Insurance Commissioner shall enforce this subchapter.
(b)
(1)
The commissioner may examine or audit the books and records of a pharmacy benefits manager providing claims processing services or other prescription drug or device services for a health benefit plan to determine if the pharmacy benefits manager is in compliance with this subchapter.
(2)
The information or data acquired during an examination under subdivision (b)(1) of this section is:
(A)
Considered proprietary and confidential under §
23-61-107(a)(4)
and §
23-61-207
; and
(B)
Not subject to the Freedom of Information Act of 1967, §
25-19-101
et seq.
(c)
After notice and opportunity for hearing, the commissioner may:
(1)
Impose a penalty of up to five thousand dollars ($5,000) per violation against a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager has not:
(A)
Followed the process established for determining pricing or costs under the Maximum Allowable Cost List under §
17-92-507
; or
(B)
Used the national average drug acquisition cost under §
23-92-506(b)
; or
(2)
Revoke or suspend the license of a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager:
(A)
Has committed a pattern of violations of this subchapter;
(B)
Has not followed the process established for determining pricing and costs under the Maximum Allowable Cost List under §
17-92-507
; or
(C)
Has not used the national average drug acquisition cost under §
23-92-506(b)
.
Amended by Act 2023, No. 302,§ 5, eff. 8/1/2023.
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 5 - ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT (§§ 23-92-501 — 23-92-511) › Section 23-92-510 - Applicability

(a)
This subchapter is applicable to a contract or health benefit plan issued, renewed, recredentialed, amended, or extended on and after September 1, 2018.
(b)
A contract existing on the date of licensure of the pharmacy benefits manager shall comply with the requirements of this subchapter as a condition of licensure for the pharmacy benefits manager.
(c)
Without limiting its application to any other plan or program, this section applies to an organization or entity directly or indirectly providing services to patients under the Medicaid Provider-Led Organized Care Act, §
20-77-2701
et seq., or any other Medicaid-managed care program operating in this state.
(d)
This subchapter applies to a health benefit plan that is issued outside this state if that health benefit plan provides benefits for healthcare services to residents of this state.
Amended by Act 2023, No. 302,§ 6, eff. 8/1/2023.
Amended by Act 2019, No. 994,§ 12, eff. 7/24/2019.
Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.
Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 6 - 340B DRUG PRICING NONDISCRIMINATION ACT (§§ 23-92-601 — 23-92-606) › Section 23-92-601 - Title

This subchapter shall be known and may be cited as the "340B Drug Pricing Nondiscrimination Act".
Added by Act 2021, No. 1103,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 6 - 340B DRUG PRICING NONDISCRIMINATION ACT (§§ 23-92-601 — 23-92-606) › Section 23-92-602 - Definitions

As used in this subchapter:
(1)
"Patient" means an individual seeking medical diagnosis and treatment;
(2)
"Pharmacy" means the same as defined in §
17-92-101
;
(3)
"Provider" means a licensed pharmacist as defined in §
17-92-101
;
(4)
(A)
"Third party" means:
(i)
A payor or the payor's intermediary; or
(ii)
A pharmacy benefits manager.
(B)
"Third party" does not include:
(i)
The Arkansas Medicaid Program;
(ii)
A risk-based provider organization as established under the Medicaid Provider-Led Organized Care Act, §
20-77-2701
et seq.; or
(iii)
A self-insured governmental plan or a pharmacy benefits manager for a self-insured governmental plan; and
(5)
"340B drug pricing" means the program established under section 602 of the Veterans Health Care Act of 1992, Pub. L. No. 102-585.
Added by Act 2021, No. 1103,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 6 - 340B DRUG PRICING NONDISCRIMINATION ACT (§§ 23-92-601 — 23-92-606) › Section 23-92-603 - Third-party requirements

A third party shall:
(1)
Inform a patient that the patient is not required to use a mail-order pharmacy;
(2)
Obtain a signed waiver from a patient before allowing the use of a mail-order pharmacy;
(3)
Make drug formulary and coverage decisions based on the third party's normal course of business;
(4)
Allow a patient the freedom to use any pharmacy or any provider the patient chooses, whether or not the pharmacy participates in 340B drug pricing; and
(5)
Eliminate discriminatory contracting as it relates to:
(A)
Transferring the benefit of 340B drug-pricing savings from one (1) entity, including critical access hospitals, federally qualified health centers, other hospitals, or 340B drug-pricing participants and their underserved patients, to another entity, including without limitation pharmacy benefits managers, private insurers, and managed care organizations;
(B)
Pricing that occurs when offering a lower reimbursement for a drug purchased under 340B drug pricing than for the same drug not purchased under 340B drug pricing;
(C)
Refusal to cover drugs purchased under 340B drug pricing;
(D)
Refusal to allow 340B drug-pricing pharmacies to participate in networks; and
(E)
Charging more than fair market value or seeking profit sharing in exchange for services involving 340B drug pricing.
Added by Act 2021, No. 1103,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 6 - 340B DRUG PRICING NONDISCRIMINATION ACT (§§ 23-92-601 — 23-92-606) › Section 23-92-604 - Third party and pharmaceutical manufacturer - Prohibitions

(a)
A third party shall not:
(1)
Coerce a patient into using a mail-order pharmacy;
(2)
Require a patient to use a mail-order pharmacy;
(3)
Discriminate, lower the reimbursement, or impose any separate terms upon a pharmacy in any other third party contract on the basis that a pharmacy participates in 340B drug pricing;
(4)
Require a pharmacy to reverse, resubmit, or clarify a 340B drug-pricing claim after the initial adjudication unless these actions are in the normal course of pharmacy business and not related to 340B drug pricing;
(5)
Require a billing modifier to indicate that the drug or claim is a 340B drug-pricing claim unless the drug or claim is being billed to the fee-for-service Arkansas Medicaid Program;
(6)
Modify a patient's copayment on the basis of a pharmacy's participation in 340B drug pricing;
(7)
Exclude a pharmacy from a network on the basis of the pharmacy's participation in 340B drug pricing;
(8)
Establish or set network adequacy requirements based on 340B drug pricing participation by a provider or a pharmacy; or
(9)
Prohibit an entity authorized to participate in 340B drug pricing or a pharmacy under contract with an entity authorized to participate in 340B drug pricing from participating in the third party's provider network on the basis of participation in 340B drug pricing.
(b)
A third party that is a pharmacy benefits manager shall not base the drug formulary or drug coverage decisions upon the 340B drug-pricing status of a drug, including price or availability, or whether a dispensing pharmacy participates in 340B drug pricing.
(c)
A pharmaceutical manufacturer shall not:
(1)
Prohibit a pharmacy from contracting or participating with an entity authorized to participate in 340B drug pricing by denying access to drugs that are manufactured by the pharmaceutical manufacturer; or
(2)
Deny or prohibit 340B drug pricing for an Arkansas-based community pharmacy that receives drugs purchased under a 340B drug pricing contract pharmacy arrangement with an entity authorized to participate in 340B drug pricing.
Added by Act 2021, No. 1103,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 6 - 340B DRUG PRICING NONDISCRIMINATION ACT (§§ 23-92-601 — 23-92-606) › Section 23-92-605 - Pharmacy claims

All pharmacy claims processed by a pharmacy that participates in 340B drug pricing are final at the point of adjudication.
Added by Act 2021, No. 1103,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 6 - 340B DRUG PRICING NONDISCRIMINATION ACT (§§ 23-92-601 — 23-92-606) › Section 23-92-606 - Rules

The Insurance Commissioner shall promulgate rules to implement this subchapter.
Added by Act 2021, No. 1103,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 7 - ARKANSAS PHARMACY BENEFITS MANAGER SHARE THE SAVINGS ACT (§§ 23-92-701 — 23-92-704) › Section 23-92-701 - Title

This subchapter shall be known and may be cited as the "Arkansas Pharmacy Benefits Manager Share the Savings Act".
Added by Act 2023, No. 333,§ 2, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 7 - ARKANSAS PHARMACY BENEFITS MANAGER SHARE THE SAVINGS ACT (§§ 23-92-701 — 23-92-704) › Section 23-92-702 - Purpose

The purpose of this subchapter is to require pharmacy benefits managers to share the benefit of rebates with enrollees in this state.
Added by Act 2023, No. 333,§ 2, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 92 - MULTIPLE EMPLOYER TRUSTS AND SELF-INSURED PLANS (§§ 23-92-101 — 23-92-704) › Subchapter 7 - ARKANSAS PHARMACY BENEFITS MANAGER SHARE THE SAVINGS ACT (§§ 23-92-701 — 23-92-704) › Section 23-92-704 - Implementation of subchapter - Requirements

(a)
An enrollee's defined cost sharing for a prescription drug shall be calculated at the point-of-sale based on a price that is reduced by an amount equal to at least one hundred percent (100%) of all rebates received, or to be received, in connection with the dispensing or administration of the prescription drug.
(b)
This subchapter shall not preclude a pharmacy benefits manager from decreasing an enrollee's defined cost sharing by an amount greater than that required under subsection (a) of this section.
(c)
(1)
A pharmacy benefits manager shall submit a certification to the Insurance Commissioner by January 1 of each calendar year certifying that the pharmacy benefits manager has complied with the requirements of this section during the previous calendar year.
(2)
The certification under subdivision (c)(1) of this section shall be signed by the chief executive officer or chief financial officer of the pharmacy benefits manager.
(3)
The form of the certification shall:
(A)
Be in a format approved or established by the commissioner; and
(B)
Include the pharmacy benefits manager's best estimate of the aggregate amount of rebates used to reduce enrollee-defined cost sharing for prescription drugs in the previous calendar year based on information known to the pharmacy benefits manager as of the date of the certification.
(d)
(1)
In complying with this section, a pharmacy benefits manager or its agents shall not publish or otherwise reveal information regarding the actual amount of rebates a pharmacy benefits manager receives on a product or therapeutic class of products, manufacturer, or pharmacy-specific basis.
(2)
The information described in subdivision (d)(1) of this section is:
(A)
Protected as a trade secret;
(B)
Considered proprietary and confidential under §
23-61-107(a)(4)
and §
23-61-207
;
(C)
Not subject to disclosure under the Freedom of Information Act of 1967, §
25-19-101
et seq.; and
(D)
Not to be disclosed:
(i)
Directly or indirectly; or
(ii)
In a manner that would:
(a)
Allow for the identification of an individual product, therapeutic class of products, or manufacturer; or
(b)
Have the potential to compromise the financial, competitive, or proprietary nature of the information.
(3)
A pharmacy benefits manager shall impose the confidentiality protections of this section on any vendor or downstream third party that performs healthcare services or administrative services on behalf of the pharmacy benefits manager that may receive or have access to rebate information.
Added by Act 2023, No. 333,§ 2, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-101 - Title

This subchapter shall be known and may be cited as the "Continuing Care Provider Regulation Act".
Acts 1987, No. 329, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-102 - Legislative intent - Applicability

(a)
The General Assembly recognizes that continuing care communities have become an important and necessary alternative for the long-term residential, social, and health maintenance needs for many of the state's elderly citizens.
(b)
The General Assembly recognizes the need for full disclosure of important facts to an appropriate regulatory agency of the state. Accordingly, the General Assembly has determined that continuing care facilities should be regulated in accordance with the provisions of this subchapter.
(c)
(1)
The provisions of this subchapter apply equally to for-profit and not-for-profit provider organizations.
(2)
The provisions of this subchapter shall be the minimum requirements to be imposed upon any person, association, or organization offering or providing continuing care as set forth in this subchapter.
(3)
This subchapter shall not apply to facilities duly authorized and licensed by the State of Arkansas as long-term care facilities providing nursing care.
Acts 1987, No. 329, § 2.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-104 - Violations

(a)
Whenever it appears to the Insurance Commissioner that any person has engaged in, or is about to engage in, any act or practice constituting a violation of any provision of this subchapter or any rule or order under this subchapter, the commissioner may:
(1)
Issue an order directed at that person requiring that person to cease and desist from engaging in the act or practice;
(2)
Bring an action in any court which has appropriate jurisdiction to enjoin the acts or practices and to enforce compliance with this subchapter or any of its rules or orders;
(3)
Issue an order directed at that person to cease and desist from engaging in the act or practice and bring an action in any court which has appropriate jurisdiction to enjoin the acts or practices and to enforce compliance with this subchapter or any of its rules and orders; or
(4)
Issue an order assessing a monetary penalty of not more than one thousand dollars ($1,000) for each violation against that person.
(b)
Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted.
Acts 1987, No. 329, § 12; 1989, No. 203, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-105 - Rules

The Insurance Commissioner shall have the authority to adopt, amend, or repeal such rules as are reasonably necessary for the enforcement of the provisions of this subchapter.
Amended by Act 2019, No. 315,§ 2781, eff. 7/24/2019.
Acts 1987, No. 329, § 13.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-107 - Disclosure statement - Review

(a)
The State Insurance Department shall review the filed disclosure document for the following:
(1)
The completeness of the filing; and
(2)
The manner and method of computing the reserve.
(b)
The Insurance Commissioner shall notify a provider of any deficiency in the filing within sixty (60) days from the date of filing. If the provider is notified of deficiencies in the filing, reasonable time shall be allowed to the provider to correct the deficiencies.
(c)
No provider may offer continuing care contracts to the public during the initial sixty-day filing period or during the period allowed to correct deficiencies noted by the commissioner.
(d)
All disclosure statements shall be made available at the facility and the office of the commissioner for inspection by the citizens of this state upon request. Each resident of a facility shall be informed of the availability of the statement annually.
(e)
Each disclosure statement shall clearly state that:
(1)
A prospective or present resident shall rely solely upon the provider for the accuracy and completeness of the information contained in the disclosure statement; and
(2)
No independent investigation of the accuracy of the information has been conducted by the commissioner.
Acts 1987, No. 329, § 4.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-109 - Right to rescind contracts

For a seven-day period beginning on the date a provider receives any payment from a prospective resident, a prospective resident shall have the right to rescind any contractual obligation into which he or she has entered and receive a full refund of any moneys transferred to the provider.
Acts 1987, No. 329, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-110 - Untrue, deceptive, or misleading statements prohibited

(a)
No provider shall make, publish, disseminate, circulate, or place before the public or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an advertisement, announcement, or statement of any sort containing any assertion, representation, or untrue, deceptive, or misleading statement.
(b)
No provider shall file with the State Insurance Department or make, publish, disseminate, circulate, or deliver to any person or place before the public or cause, directly or indirectly, to be made, published, disseminated, circulated, or delivered to any person, or placed before the public any financial statement which does not accurately state its true financial condition.
Acts 1987, No. 329, § 7.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-111 - Liquid refund reserve requirement

(a)
(1)
Each provider shall establish and maintain liquid refund reserves in an amount determined in accordance with this section.
(2)
(A)
The refund reserve shall be equal to or shall exceed the actuarially determined annual refund amount as of the financial reporting date.
(B)
The actuarially determined annual refund amount shall be calculated upon both the actual experience of the facility and published industry norms.
(C)
The method which yields the greater sum shall determine the actuarially determined annual refund amount for the purposes of this section and §
23-93-106(a)(8)
.
(b)
The provider may satisfy the liquid reserve requirement by:
(1)
Holding the reserve amount in an escrow account with a federally insured financial institution or institutions located and doing business in this state;
(2)
Purchasing a certificate of deposit from an Arkansas lending institution;
(3)
Investing in bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States of America held in the provider's name and held by the provider within the State of Arkansas;
(4)
Having the unqualified guaranty of an affiliated organization or individual, as evidenced by a written agreement, whose net worth as reported in its most recent financial statement audited by a certified public accountant and certified by the provider and filed with the State Insurance Department, which is equal to five (5) times the reserve amount or portion of the reserve amount to be satisfied by this method; or
(5)
Any combination of the foregoing.
(c)
When requested by the Insurance Commissioner, the provider shall furnish all of the information relating to the amount of the reserve and the method used to maintain the reserve amount.
Acts 1987, No. 329, § 8; 1989, No. 203, § 3.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 93 - CONTINUING CARE PROVIDERS (§§ 23-93-101 — 23-93-207) › Subchapter 1 - CONTINUING CARE PROVIDER REGULATION ACT (§§ 23-93-101 — 23-93-114) › Section 23-93-112 - Escrow account required

(a)
(1)
The Insurance Commissioner shall require that the provider establish an interest-bearing escrow account with a financial institution authorized to do business in this state. Any entrance fees or payments received by the provider prior to the date the resident is permitted to occupy the living unit in the facility shall be placed in the escrow account.
(2)
Release of escrowed amounts to the provider shall be made as follows:
(A)
For living units that have been previously occupied, at the time the new resident makes the first monthly payment; or
(B)
For living units not previously occupied, at the earliest to occur of one (1) of the following:
(i)
When aggregate fees received or receivable equal fifty percent (50%) of total entrance fees due at full occupancy, except that any entrance fee payments that are less than thirty-five percent (35%) of the amount due from a resident will not be counted;
(ii)
When entrance fees plus the proceeds of any first mortgage or other long-term loan in lieu of a first mortgage, plus other funds on hand, equal fifty percent (50%) of the total cost of the facility plus fifty percent (50%) of the start-up losses shown in the provider's application submitted under §
23-93-207
; or
(iii)
When a permanent mortgage or other long-term loan commitment has been received and the mortgagee's commitment conditions prior to disbursement, other than completing construction and closing the purchase, have been satisfied.
(b)
If the funds in an escrow account and any interest earned on the funds are not released within thirty-six (36) months, or such greater time as may have been specified by the provider with the consent of the commissioner, then the funds shall be returned by the escrow agent to the persons who made the payment to the provider.
(c)
Nothing in this section shall require the escrow of any nonrefundable application fees charged to prospective residents.
(d)
An entrance fee held in escrow may be returned by the escrow agent at any time to the person or persons who paid the entrance fee to the provider upon receipt by the escrow agent of notice from the provider that such a person is entitled to a refund of the entrance fee.
Acts 1987, No. 329, § 9; 1995, No. 1351, § 1.