senate Bill S7389A

Relates to consumer protection from prescription drug reimportation

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 14 / May / 2014
    • REFERRED TO CONSUMER PROTECTION
  • 16 / Jun / 2014
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 16 / Jun / 2014
    • PRINT NUMBER 7389A
  • 19 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1618
  • 20 / Jun / 2014
    • RECOMMITTED TO RULES

Summary

Relates to consumer protection from prescription drug reimportation and unlawful practices and enforcement and penalties.

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Bill Details

Versions:
S7389
S7389A
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Add Art 38-B ยงยง830 & 831, Gen Bus L

Sponsor Memo

BILL NUMBER:S7389A

TITLE OF BILL: An act to amend the general business law, in relation
to consumer protection from prescription drug reimportation

PURPOSE: This bill makes prescription drug reimportation an unlawful
practice in New York State, authorizes the Attorney General to make an
application to the court for an injunction against the continuance of
violations of this article, and allows the court to impose civil
penalties for such violations.

SUMMARY OF PROVISIONS:

Section one adds a new article to the general business law titled
"Consumer Protection from Prescription Drug Reimportation."

This section makes it an unlawful practice to purchase for resale,
sell, offer for sale, or deliver in any manner any prescription drug
approved by the United States Federal Drug Administration that is
either: (1) manufactured in the United States, exported to another
country, and then subsequently reimported in violation of state or
federal law, or (2) manufactured for sale in another country and
imported into the United States in violation of state or federal law.

Further, this section provides enforcement and penalties for this new
article. It authorizes the New York State Attorney General to make an
application to the court for an injunction to enjoin and restrain the
continuance of violations of this article and authorizes the court to
issue such injunction if the court or justice finds that the defendant
has in fact violated this article. It also authorizes the New York
State Attorney General, in connection with any proposed application
for injunction, to take proof, make a determination of the relevant
facts, and issue subpoenas in accordance with the Civil Practice Law
and Rules (CPLR). Further, the court may impose a civil penalty of
$1,000 to $10,000 when a violation of this article has occurred.

Lastly, this section provides that the New York State Attorney General
give notice to the person against whom such proceeding is contemplated
and an opportunity to show why proceedings should not be instituted
against him or her. The Attorney General is exempted from giving
notice and opportunity where it is not in the public interest.

Section two states that this act shall take effect on the ninetieth
day after it shall have become a law.

JUSTIFICATION: In recent years, there has been an increase in
individuals and businesses buying prescription drugs from foreign
countries and importing them for sale in New York State. This practice
is extremely dangerous to New York consumers. Prescription drugs that
are illegally imported into New York State could be contaminated,
ineffective, and improperly stored and transported, thus making them
unsafe. These drugs pose additional risks to consumers if they do not
comply with federal labeling requirements and warnings which provide
important product information to the consumer.

While the illegal importation of prescription drugs may be prosecuted
at the federal level, there are few protections for consumers at the


state level. This bill creates a new article under the general
business law that makes prescription drug reimportation an unlawful
practice and provides the New York State Attorney General and the
court with certain powers for those in violation of this article.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None to the state

EFFECTIVE DATE: The ninetieth day after it shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7389--A

                            I N  S E N A T E

                              May 14, 2014
                               ___________

Introduced by Sens. GALLIVAN, KENNEDY, MAZIARZ -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN  ACT  to  amend  the  general  business  law, in relation to consumer
  protection from prescription drug reimportation

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
38-B to read as follows:
                               ARTICLE 38-B
               CONSUMER PROTECTION FROM PRESCRIPTION DRUG
                              REIMPORTATION
SECTION 830. UNLAWFUL PRACTICES.
        831. ENFORCEMENT AND PENALTIES.
  S  830. UNLAWFUL PRACTICES. IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM,
CORPORATION OR ASSOCIATION OR AGENT OR EMPLOYEE THEREOF TO PURCHASE  FOR
RESALE, SELL, OFFER FOR SALE, OR DELIVER IN ANY MANNER, ANY PRESCRIPTION
DRUG  APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION THAT IS
EITHER:
  1. MANUFACTURED IN THE UNITED STATES, EXPORTED FROM THE UNITED  STATES
TO ANY OTHER COUNTRY, AND IMPORTED INTO THE UNITED STATES FROM ANY PLACE
OUTSIDE THEREOF IN VIOLATION OF STATE OR FEDERAL LAW; OR
  2. MANUFACTURED FOR SALE IN A COUNTRY OTHER THAN THE UNITED STATES AND
IMPORTED  INTO  THE  UNITED  STATES  FROM  ANY  PLACE OUTSIDE THEREOF IN
VIOLATION OF STATE OR FEDERAL LAW.
  S 831. ENFORCEMENT  AND  PENALTIES.  1.  WHENEVER  THERE  SHALL  BE  A
VIOLATION  OF  THIS  ARTICLE, AN APPLICATION MAY BE MADE BY THE ATTORNEY
GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OR
JUSTICE HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN  INJUNC-
TION  TO  ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF
IT SHALL APPEAR TO THE SATISFACTION OF THE COURT  OR  JUSTICE  THAT  THE
DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS ARTICLE, AN INJUNCTION MAY BE
ISSUED BY SUCH COURT OR JUSTICE ENJOINING AND  RESTRAINING  ANY  FURTHER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14900-03-4

S. 7389--A                          2

VIOLATION,  WITHOUT  REQUIRING  PROOF THAT ANY PERSON HAS, IN FACT, BEEN
INJURED OR DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT  MAY  MAKE
ALLOWANCES  TO  THE  ATTORNEY  GENERAL  AS  PROVIDED IN PARAGRAPH SIX OF
SUBDIVISION (A) OF SECTION EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRAC-
TICE  LAW  AND  RULES,  AND DIRECT RESTITUTION. WHENEVER THE COURT SHALL
DETERMINE THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED  THE  COURT  MAY
IMPOSE  A  CIVIL  PENALTY OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE
THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION. FOR THE PURPOSES  OF  THIS
SECTION,  EACH  GROUP  OF  IDENTICAL  ITEMS  SHALL  CONSTITUTE  A SINGLE
VIOLATION. IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE  ATTOR-
NEY  GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES.
  2. BEFORE ANY VIOLATION OF THIS ARTICLE IS SOUGHT TO BE ENJOINED,  THE
ATTORNEY  GENERAL SHALL BE REQUIRED TO GIVE THE PERSON AGAINST WHOM SUCH
PROCEEDING IS CONTEMPLATED NOTICE BY CERTIFIED MAIL AND  AN  OPPORTUNITY
TO SHOW IN WRITING WITHIN FIVE BUSINESS DAYS AFTER RECEIPT OF NOTICE WHY
PROCEEDINGS  SHOULD  NOT  BE  INSTITUTED  AGAINST HIM OR HER, UNLESS THE
ATTORNEY GENERAL SHALL FIND, IN ANY  CASE  IN  WHICH  HE  OR  SHE  SEEKS
PRELIMINARY  RELIEF,  THAT TO GIVE SUCH NOTICE AND OPPORTUNITY IS NOT IN
THE PUBLIC INTEREST.
  3. IN ANY SUCH ACTION IT SHALL BE A COMPLETE DEFENSE THAT THE  ACT  OR
PRACTICE  IS  SUBJECT TO AND COMPLIES WITH THE RULES AND REGULATIONS OF,
AND THE STATUES ADMINISTERED BY, THE  FEDERAL  FOOD  AND  DRUG  ADMINIS-
TRATION  OR  ANY  OFFICIAL DEPARTMENT, DIVISION, COMMISSION OR AGENCY OF
THE UNITED STATES AS SUCH RULES, REGULATIONS OR STATUES ARE  INTERPRETED
BY  THE  FEDERAL  FOOD AND DRUG ADMINISTRATION OR SUCH DEPARTMENT, DIVI-
SION, COMMISSION OR AGENCY OR THE FEDERAL COURTS.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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