South Carolina General Assembly
122nd Session, 2017-2018

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Indicates Matter Stricken
Indicates New Matter

A39, R62, H3883

STATUS INFORMATION

General Bill
Sponsors: Reps. Sandifer and Pope
Document Path: l:\council\bills\agm\19126wab17.docx

Introduced in the House on March 2, 2017
Introduced in the Senate on May 3, 2017
Last Amended on May 2, 2017
Passed by the General Assembly on May 8, 2017
Governor's Action: May 10, 2017, Signed

Summary: Pyramid Promotional Scheme Prohibition Act

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
    3/2/2017  House   Introduced and read first time (House Journal-page 8)
    3/2/2017  House   Referred to Committee on Judiciary (House Journal-page 8)
   4/26/2017  House   Committee report: Favorable with amendment Judiciary 
                        (House Journal-page 117)
    5/2/2017  House   Amended (House Journal-page 35)
    5/2/2017  House   Read second time (House Journal-page 35)
    5/2/2017  House   Roll call Yeas-93  Nays-0 (House Journal-page 36)
    5/3/2017  House   Read third time and sent to Senate 
                        (House Journal-page 12)
    5/3/2017  Senate  Introduced and read first time (Senate Journal-page 11)
    5/3/2017  Senate  Referred to Committee on Labor, Commerce and Industry 
                        (Senate Journal-page 11)
    5/4/2017  Senate  Recalled from Committee on Labor, Commerce and Industry 
                        (Senate Journal-page 5)
    5/4/2017  Senate  Read second time (Senate Journal-page 5)
    5/4/2017  Senate  Roll call Ayes-41  Nays-0 (Senate Journal-page 5)
    5/8/2017  Senate  Read third time and enrolled (Senate Journal-page 16)
    5/9/2017          Ratified R 62
   5/10/2017          Signed By Governor
   5/17/2017          Effective date 05/10/17
   5/18/2017          Act No. 39

View the latest legislative information at the website

VERSIONS OF THIS BILL

3/2/2017
4/26/2017
5/2/2017
5/4/2017

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A39, R62, H3883)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "PYRAMID PROMOTIONAL SCHEME PROHIBITION ACT" BY ADDING ARTICLE 7 TO CHAPTER 5, TITLE 39 SO AS TO PROVIDE PYRAMID PROMOTIONAL SCHEMES CONSTITUTE UNFAIR TRADE PRACTICES UNDER THE SOUTH CAROLINA UNFAIR TRADE PRACTICES ACT, AND TO PROVIDE NECESSARY DEFINITIONS; AND TO REPEAL SECTION 39-5-30 RELATING TO PYRAMID CLUBS AND SIMILAR OPERATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Pyramid Promotional Scheme Prohibition Act

SECTION    1.    Chapter 5, Title 39 of the 1976 Code is amended by adding:

"Article 7

Pyramid Promotional Scheme Prohibition Act

Section 39-5-710.    This article must be known and may be cited as the 'Pyramid Promotional Scheme Prohibition Act'.

Section 39-5-720.    As used in this article:

(1)    'Compensation' means the payment of money, a thing of value, or a benefit.

(2)    'Consideration' means either the payment of money or the provision of a thing of value for the purchase of a product, good, service, or intangible property. Consideration does not include:

(a)    the purchase of a product, furnished at cost, for use in making a sale, but not for resale, of the purchased product itself; or

(b)    time and effort spent to pursue a sale or recruiting activity.

(3)    'Pyramid promotional scheme' means a plan or operation in which an individual pays consideration for the right to receive compensation based primarily upon recruiting other individuals into the plan or operation instead of selling products or services to ultimate users for their use or consumption.

(4)    'Ultimate users' are individuals who consume or use the products or services, whether or not they are participants in the plan or operation.

Section 39-5-730.    A pyramid promotional scheme is an unfair trade practice pursuant to Section 39-5-20(a), and accordingly, is prohibited in this State."

Repeal

SECTION    2.    Section 39-5-30 of the 1976 Code is repealed.

Savings clause

SECTION    3.    The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

Time effective

SECTION    4.    This act takes effect upon approval by the Governor.

Ratified the 9th day of May, 2017.

Approved the 10th day of May, 2017.

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This web page was last updated on June 8, 2017 at 1:56 PM