NY State Senate Bill S3081A

Archive: Last Bill Status - Vetoed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Vetoed by Governor

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Actions

view actions (29)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 23, 2022	vetoed memo.162
Dec 16, 2022	delivered to governor
Jun 01, 2022	returned to senate passed assembly ordered to third reading rules cal.528 substituted for a5860b
May 31, 2022	referred to codes returned to assembly repassed senate
May 25, 2022	amended on third reading 3081b
May 25, 2022	vote reconsidered - restored to third reading returned to senate recalled from assembly
May 24, 2022	referred to consumer affairs and protection delivered to assembly passed senate
May 16, 2022	amended on third reading 3081a
Feb 14, 2022	advanced to third reading
Feb 09, 2022	2nd report cal.
Feb 08, 2022	1st report cal.461
Jan 05, 2022	referred to consumer protection returned to senate died in assembly
Jun 08, 2021	referred to consumer affairs and protection delivered to assembly passed senate
Jun 07, 2021	ordered to third reading cal.1528 committee discharged and committed to rules
Jan 27, 2021	referred to consumer protection

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S3081 - Details

Law Section:: General Business Law
Laws Affected:: Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3654
2023-2024: S608

S3081 - Summary

Prohibits selling a drug subject to a shortage for an unconscionably excessive price.

S3081 - Sponsor Memo

 
BILL NUMBER: S3081

SPONSOR: SALAZAR
TITLE OF BILL:

An act to amend the general business law, in relation to the price goug-
ing of medicine

 
PURPOSE OR GENERAL IDEA OF THE BILL:

This legislation adds medicine to the list of goods and services that
can be classified as possibly being subject to price gouging.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 396-rrr of the general business law is amended to add
medicine to the list of consumer goods that can be classified as subject
to price gouging. The classification of medicines falling under this
section of law will be determined by the publicly reported drug short-
ages reported by the U.S. Food and Drug Administration (FDA).

Section 2: Bans the price gouging of medicines listed as been in short

supply by the U.S. FDA.

Section 3: Allows for the courts to determine if the price established
for a drug in short supply is unconscionably excessive and establishes
the criteria for the court to consider such determination.

Section 4: Extends medicine price gouging prosecution powers to the
Attorney General of New York State and provides right of action to
impacted consumer.

 
JUSTIFICATION:

After workshops on improving health care access for Latinos by the NYS
Assembly Puerto Rican Hispanic Task Force (PRHTF) during its annual
legislative conference and after data reported by the Associated Press
(AP) on the price gouging of medicines on short supply was made public
on September 23, 2011, legislation to ban the practice was introduced by
the PRHTF. The AP report documents that there was an ongoing and "severe
shortage of drugs for chemotherapy, infections and other serious
ailments which is endangering patients and forcing hospitals to buy
life-saving medications from secondary suppliers at huge markups because
they can't get them any other way."

An Associated Press review of industry reports and interviews with near-
ly two dozen experts found at least 15 deaths in the past 15 months due
to the shortages, (i.e. the correct drug wasn't available, dosing
errors, problems in administering or preparing alternative medications).
Despite this, many deaths still go unreported. The shortages, mainly
involving widely used generic injected drugs that ordinarily are inex-
pensive, have been delaying surgeries and cancer treatments, leaving
patients in unnecessary pain and forcing hospitals to give less effec-
tive treatments. This results in complications and longer hospital
stays.

Over half of 549 U.S. hospital responses to a survey by the Institute
for Safe Medication Practices, said they had purchased one or more
prescription drugs from so-called "gray market vendors" - secondary
market companies that purchase scare drugs from small regional whole-
salers, pharmacies, or others sources and then gouge the prices of the
products when selling them to hospitals. Most hospitals also said
they've had to do so more often of late, and 7 percent reported side
effects or other problems.

The average price markup on drugs sold by secondary distributors were
650 percent. In an extreme case, one vendor was offering a generic drug
for high blood pressure, normally priced at $25.90 per dose, for $1,200.

 
SOCIAL JUSTICE IMPACT:

This legislation would contribute to the right of New Yorkers to afford-
able and exceptional health care. This legislation would put the afford-
able treatment of New Yorkers over the profits of secondary market
companies.

 
PRIOR LEGISLATIVE HISTORY:

SENATE
S.3654 of 2019
02/11/19      REFERRED TO CONSUMER PROTECTION
06/12/19      COMMITTEE DISCHARGED AND COMMITTED TO RULES
06/12/19      ORDERED TO THIRD READING CAL.1299
06/12/19      PASSED SENATE
06/12/19      DELIVERED TO ASSEMBLY
06/12/19      referred to consumer affairs and protection
01/08/20      died in assembly
01/08/20      returned to senate
01/08/20      REFERRED TO CONSUMER PROTECTION
02/12/20      1ST REPORT CAL.437
02/13/20      2ND REPORT CAL.
02/24/20      ADVANCED TO THIRD READING
02/25/20      PASSED SENATE
02/25/20      DELIVERED TO ASSEMBLY
02/25/20      referred to consumer affairs and protection

ASSEMBLY
No current same as

A8801 of 2012
Passed Assembly 2012-2018.
Died in Senate 2012-2018.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None

 
EFFECTIVE DATE:
This bill will take effect immediately.

S3081 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3081
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2021
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation to the price goug-
   ing of medicine
 
   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 section
 396-rrr to read as follows:
   §  396-RRR.  PRICE  GOUGING  OF  MEDICINE. 1. FOR THE PURPOSES OF THIS
 SECTION, "DRUG SUBJECT TO A SHORTAGE" SHALL MEAN  ANY  DRUG  OR  MEDICAL
 PRODUCT  INTENDED  FOR HUMAN USE PUBLICLY REPORTED AS BEING SUBJECT TO A
 SHORTAGE BY THE U.S.  FOOD  AND  DRUG  ADMINISTRATION  ON  ITS  WEBSITE,
 PROVIDED,  HOWEVER, THAT A DRUG OR MEDICAL PRODUCT SHALL ONLY BE CONSID-
 ERED A "DRUG SUBJECT TO A SHORTAGE" DURING THE PERIOD OF TIME THAT  SUCH
 DRUG OR MEDICAL PRODUCT IS LISTED AS BEING SUBJECT TO A SHORTAGE ON SUCH
 WEBSITE.
   2.  NO PARTY WITHIN THE CHAIN OF DISTRIBUTION OF ANY DRUG SUBJECT TO A
 SHORTAGE SHALL SELL OR OFFER TO SELL ANY SUCH DRUG SUBJECT TO A SHORTAGE
 FOR AN AMOUNT WHICH REPRESENTS AN UNCONSCIONABLY EXCESSIVE PRICE.
   3. WHETHER A PRICE IS UNCONSCIONABLY EXCESSIVE IS A  QUESTION  OF  LAW
 FOR THE COURT.
   (A)  THE  COURT'S  DETERMINATION  THAT A VIOLATION OF THIS SECTION HAS
 OCCURRED SHALL BE BASED ON ANY OF THE FOLLOWING FACTORS:
   (I) THAT THE AMOUNT OF THE EXCESS IN PRICE IS UNCONSCIONABLY EXTREME;
   (II) THAT THERE WAS AN EXERCISE OF UNFAIR LEVERAGE  OR  UNCONSCIONABLE
 MEANS; OR
   (III)  A  COMBINATION OF BOTH FACTORS IN SUBPARAGRAPHS (I) AND (II) OF
 THIS PARAGRAPH.
   (B) IN ANY PROCEEDING COMMENCED PURSUANT TO SUBDIVISION FOUR  OF  THIS
 SECTION, PRIMA FACIE PROOF THAT A VIOLATION OF THIS SECTION HAS OCCURRED
 SHALL INCLUDE EVIDENCE THAT:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06581-01-1

 S. 3081                             2
 
   (I)  THE AMOUNT CHARGED REPRESENTS A GROSS DISPARITY BETWEEN THE PRICE
 OF THE DRUG SUBJECT TO A SHORTAGE WHICH WAS THE SUBJECT  OF  THE  TRANS-
 ACTION AND THEIR VALUE MEASURED BY THE PRICE AT WHICH SUCH DRUG WAS SOLD
 OR  OFFERED  FOR  SALE  BY THE DEFENDANT IN THE USUAL COURSE OF BUSINESS
 IMMEDIATELY PRIOR TO THE ONSET OF THE SHORTAGE; AND
   (II)  THE  AMOUNT CHARGED GROSSLY EXCEEDED THE PRICE AT WHICH THE SAME
 OR SIMILAR DRUG SUBJECT TO A SHORTAGE WAS READILY  OBTAINABLE  BY  OTHER
 PURCHASERS  IN  THE TRADE AREA. A DEFENDANT MAY REBUT A PRIMA FACIE CASE
 WITH EVIDENCE THAT ADDITIONAL  COSTS  NOT  WITHIN  THE  CONTROL  OF  THE
 DEFENDANT WERE IMPOSED ON THE DEFENDANT FOR THE DRUG SUBJECT TO A SHORT-
 AGE.
   4.  (A) WHERE A VIOLATION OF THIS SECTION IS ALLEGED TO HAVE OCCURRED,
 THE ATTORNEY GENERAL MAY APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF
 NEW YORK TO THE SUPREME COURT WITHIN THE JUDICIAL DISTRICT IN WHICH SUCH
 VIOLATION IS ALLEGED TO HAVE OCCURRED, ON NOTICE OF FIVE  DAYS,  FOR  AN
 ORDER  ENJOINING OR RESTRAINING COMMISSION OR CONTINUANCE OF THE ALLEGED
 UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE COURT SHALL  IMPOSE  A  CIVIL
 PENALTY  IN  AN  AMOUNT  NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS AND,
 WHERE APPROPRIATE, ORDER RESTITUTION TO AGGRIEVED CONSUMERS.
   (B) IN ADDITION TO ANY ACTION BROUGHT BY THE ATTORNEY GENERAL PURSUANT
 TO PARAGRAPH (A) OF THIS SUBDIVISION, A PERSON INJURED BY A VIOLATION OF
 THIS SECTION MAY BRING AN ACTION TO RECOVER DAMAGES. THE COURT MAY  ALSO
 AWARD REASONABLE ATTORNEYS FEES TO A PREVAILING PLAINTIFF.
   § 2. This act shall take effect immediately.

Co-Sponsors

S3081A - Details

Law Section:: General Business Law
Laws Affected:: Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3654
2023-2024: S608

S3081A - Summary

Prohibits selling a drug subject to a shortage for an unconscionably excessive price.

S3081A - Sponsor Memo

 
BILL NUMBER: S3081A

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to amend the general business law, in relation to the price goug-
ing of medicine

 
PURPOSE OR GENERAL IDEA OF THE BILL:

This legislation adds medicine to the list of goods and services that
can be classified as possibly being subject to price gouging.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 396-rrr of the general business law is amended to add
medicine to the list of consumer goods that can be classified as subject
to price gouging. The classification of medicines falling under this
section of law will be determined by the publicly reported drug short-
ages reported by the U.S. Food and Drug Administration (FDA).

Section 2: Bans the price gouging of medicines listed as been in short

supply by the U.S. FDA.

Section 3: Allows for the courts to determine if the price established
for a drug in short supply is unconscionably excessive and establishes
the criteria for the court to consider such determination.

Section 4: Extends medicine price gouging prosecution powers to the
Attorney General of New York State.

 
JUSTIFICATION:

After workshops on improving health care access for Latinos by the NYS
Assembly Puerto Rican Hispanic Task Force (PRHTF) during its annual
legislative conference and after data reported by the Associated Press
(AP) on the price gouging of medicines on short supply was made public
on September 23, 2011, legislation to ban the practice was introduced by
the PRHTF. The AP report documents that there was an ongoing and "severe
shortage of drugs for chemotherapy, infections and other serious
ailments which is endangering patients and forcing hospitals to buy
life-saving medications from secondary suppliers at huge markups because
they can't get them any other way."

An Associated Press review of industry reports and interviews with near-
ly two dozen experts found at least 15 deaths in the past 15 months due
to the shortages, (i.e. the correct drug wasn't available, dosing
errors, problems in administering or preparing alternative medications).

DesPite this many deaths still go unreported. The shortages, mainly
involving widely used generic injected drugs that ordinarily are inex-
pensive, have been delaying surgeries and cancer treatments, leaving
patients in unnecessary pain and forcing hospitals to give less effec-
tive treatments. This results in complications and longer hospital
stays.

Over half of 549 U.S. hospital responses to a survey by the Institute
for Safe Medication Practices, said they had purchased one or more
prescription drugs from so-called "gray market vendors" - secondary
market companies that purchase scare drugs from small regional whole-
salers, pharmacies, or others sources and then gouge the prices of the
products when selling them to hospitals. Most hospitals also said
they've had to do so more often of late, and 7 percent reported side
effects or other problems.

The average price markup on drugs sold by secondary distributors were
650 percent. In an extreme case, one vendor was offering a generic drug
for high blood pressure, normally priced at $25.90 per dose, for $1,200.

 
SOCIAL JUSTICE IMPACT:

This legislation would contribute to the right of New Yorkers to afford-
able and exceptional health care. This legislation would put the afford-
able treatment of New Yorkers over the profits of secondary market
companies.

 
AMENDED VERSION:

The "A" Print clarified the wording in Section 2, eliminated the private
right of action, and reduced the potential penalty for a violation.

 
PRIOR LEGISLATIVE HISTORY:

SENATE

S.3654 of 2019

02/11/19       REFERRED TO CONSUMER PROTECTION
06/12/19       COMMITTEE DISCHARGED AND COMMITTED TO RULES
06/12/19       ORDERED TO THIRD READING CAL.1299
06/12/19       PASSED SENATE
06/12/19       DELIVERED TO ASSEMBLY
06/12/19       referred to consumer affairs and protection
01/08/20       died in assembly
01/08/20       returned to senate
01/08/20       REFERRED TO CONSUMER PROTECTION
02/12/20       1ST REPORT CAL.437
02/13/20       2ND REPORT CAL.
02/24/20       ADVANCED TO THIRD READING
02/25/20       PASSED SENATE
02/25/20       DELIVERED TO ASSEMBLY
02/25/20       referred to consumer affairs and protection

A8801 of 2012

Passed Assembly 2012-2018.

Died in Senate 2012-2018.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None

 
EFFECTIVE DATE:
This bill will take effect immediately.

S3081A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3081--A
     Cal. No. 461
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2021
                                ___________
 
 Introduced by Sens. SALAZAR, BIAGGI, BRISPORT, GIANARIS, JACKSON, KRUEG-
   ER,  LANZA, REICHLIN-MELNICK, SANDERS -- read twice and ordered print-
   ed, and when printed to be committed  to  the  Committee  on  Consumer
   Protection  --  recommitted to the Committee on Consumer Protection in
   accordance with Senate Rule 6, sec. 8 -- reported favorably from  said
   committee,  ordered  to  first  and  second report, ordered to a third
   reading, amended and ordered reprinted, retaining  its  place  in  the
   order of third reading
 
 AN ACT to amend the general business law, in relation to the price goug-
   ing of medicine
 
   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 section
 396-rrr to read as follows:
   § 396-RRR. PRICE GOUGING OF MEDICINE. 1.  FOR  THE  PURPOSES  OF  THIS
 SECTION,  "DRUG  SUBJECT  TO  A SHORTAGE" SHALL MEAN ANY DRUG OR MEDICAL
 PRODUCT INTENDED FOR HUMAN USE PUBLICLY REPORTED AS BEING SUBJECT  TO  A
 SHORTAGE  BY  THE  U.S.  FOOD  AND  DRUG  ADMINISTRATION ON ITS WEBSITE,
 PROVIDED, HOWEVER, THAT A DRUG OR MEDICAL PRODUCT SHALL ONLY BE  CONSID-
 ERED  A "DRUG SUBJECT TO A SHORTAGE" DURING THE PERIOD OF TIME THAT SUCH
 DRUG OR MEDICAL PRODUCT IS LISTED AS BEING SUBJECT TO A SHORTAGE ON SUCH
 WEBSITE.
   2. NO MANUFACTURER, SUPPLIER, WHOLESALER, DISTRIBUTOR OR RETAIL SELLER
 OF ANY DRUG SUBJECT TO A SHORTAGE SHALL SELL OR OFFER TO SELL  ANY  SUCH
 DRUG SUBJECT TO A SHORTAGE FOR AN AMOUNT WHICH REPRESENTS AN UNCONSCION-
 ABLY EXCESSIVE PRICE.
   3.  WHETHER  A  PRICE IS UNCONSCIONABLY EXCESSIVE IS A QUESTION OF LAW
 FOR THE COURT.
   (A) THE COURT'S DETERMINATION THAT A VIOLATION  OF  THIS  SECTION  HAS
 OCCURRED SHALL BE BASED ON ANY OF THE FOLLOWING FACTORS:
   (I) THAT THE AMOUNT OF THE EXCESS IN PRICE IS UNCONSCIONABLY EXTREME;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06581-03-1
 S. 3081--A                          2
 
   (II)  THAT  THERE WAS AN EXERCISE OF UNFAIR LEVERAGE OR UNCONSCIONABLE
 MEANS; OR
   (III)  A  COMBINATION OF BOTH FACTORS IN SUBPARAGRAPHS (I) AND (II) OF
 THIS PARAGRAPH.
   (B) IN ANY PROCEEDING COMMENCED PURSUANT TO SUBDIVISION FOUR  OF  THIS
 SECTION, PRIMA FACIE PROOF THAT A VIOLATION OF THIS SECTION HAS OCCURRED
 SHALL INCLUDE EVIDENCE THAT:
   (I)  THE AMOUNT CHARGED REPRESENTS A GROSS DISPARITY BETWEEN THE PRICE
 OF THE DRUG SUBJECT TO A SHORTAGE WHICH WAS THE SUBJECT  OF  THE  TRANS-
 ACTION AND THEIR VALUE MEASURED BY THE PRICE AT WHICH SUCH DRUG WAS SOLD
 OR  OFFERED  FOR  SALE  BY THE DEFENDANT IN THE USUAL COURSE OF BUSINESS
 IMMEDIATELY PRIOR TO THE ONSET OF THE SHORTAGE; OR
   (II) THE AMOUNT CHARGED GROSSLY EXCEEDED THE PRICE AT WHICH  THE  SAME
 OR  SIMILAR  DRUG  SUBJECT TO A SHORTAGE WAS READILY OBTAINABLE BY OTHER
 PURCHASERS IN THE TRADE AREA.
   (C) A DEFENDANT MAY REBUT A PRIMA FACIE CASE WITH EVIDENCE THAT:
   (I) THE INCREASE IN THE AMOUNT CHARGED PRESERVES THE MARGIN OF  PROFIT
 THAT  THE  DEFENDANT  RECEIVED  FOR  THE SAME DRUG SUBJECT TO A SHORTAGE
 PRIOR TO THE ONSET OF THE SHORTAGE; OR
   (II) ADDITIONAL COSTS NOT WITHIN THE CONTROL  OF  THE  DEFENDANT  WERE
 IMPOSED ON THE DEFENDANT FOR THE DRUG SUBJECT TO A SHORTAGE.
   4.  (A) WHERE A VIOLATION OF THIS SECTION IS ALLEGED TO HAVE OCCURRED,
 THE ATTORNEY GENERAL MAY APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF
 NEW YORK TO THE SUPREME COURT WITHIN THE JUDICIAL DISTRICT IN WHICH SUCH
 VIOLATION IS ALLEGED TO HAVE OCCURRED, ON NOTICE OF FIVE  DAYS,  FOR  AN
 ORDER  ENJOINING OR RESTRAINING COMMISSION OR CONTINUANCE OF THE ALLEGED
 UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE COURT SHALL  IMPOSE  A  CIVIL
 PENALTY  IN  AN  AMOUNT  NOT  TO EXCEED TWENTY-FIVE THOUSAND DOLLARS PER
 VIOLATION OR THREE TIMES  THE  GROSS  RECEIPTS  FOR  THE  RELEVANT  DRUG
 SUBJECT  TO  THE  SHORTAGE, WHICHEVER IS GREATER, AND WHERE APPROPRIATE,
 ORDER RESTITUTION TO AGGRIEVED PARTIES.
   (B) IN ADDITION TO ANY ACTION BROUGHT BY THE ATTORNEY GENERAL PURSUANT
 TO PARAGRAPH (A) OF THIS SUBDIVISION, A PERSON INJURED BY A VIOLATION OF
 THIS SECTION MAY BRING AN ACTION TO RECOVER DAMAGES. THE COURT MAY  ALSO
 AWARD REASONABLE ATTORNEYS FEES TO A PREVAILING PLAINTIFF.
   § 2. This act shall take effect immediately.

Co-Sponsors

view additional co-sponsors

S3081B (ACTIVE) - Details

Law Section:: General Business Law
Laws Affected:: Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3654
2023-2024: S608

S3081B (ACTIVE) - Summary

Prohibits selling a drug subject to a shortage for an unconscionably excessive price.

S3081B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S3081B

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to amend the general business law, in relation to the price goug-
ing of medicine

 
PURPOSE OR GENERAL IDEA OF THE BILL:

This legislation adds medicine to the list of goods and services that
can be classified as possibly being subject to price gouging.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 396-rrr of the general business law is amended to add
medicine to the list of consumer goods that can be classified as subject
to price gouging. The classification of medicines falling under this
section of law will be determined by the publicly reported drug short-
ages reported by the U.S. Food and Drug Administration (FDA).

Section 2: Bans the price gouging of medicines listed as been in short

supply by the U.S. FDA.

Section 3: Allows for the courts to determine if the price established
for a drug in short supply is unconscionably excessive and establishes
the criteria for the court to consider such determination.

Section 4: Extends medicine price gouging prosecution powers to the
Attorney General of New York State.

 
JUSTIFICATION:

After workshops on improving health care access for Latinos by the NYS
Assembly Puerto Rican Hispanic Task Force (PRHTF) during its annual
legislative conference and after data reported by the Associated Press
(AP) on the price gouging of medicines on short supply was made public
on September 23, 2011, legislation to ban the practice was introduced by
the PRHTF. The AP report documents that there was an ongoing and "severe
shortage of drugs for chemotherapy, infections and other serious
ailments which is endangering patients and forcing hospitals to buy
life-saving medications from secondary suppliers at huge markups because
they can't get them any other way."

An Associated Press review of industry reports and interviews with near-
ly two dozen experts found at least 15 deaths in the past 15 months due
to the shortages, (i.e. the correct drug wasn't available, dosing
errors, problems in administering or preparing alternative medications).

Despite this, many deaths still go unreported. The shortages, mainly
involving widely used generic injected drugs that ordinarily are inex-
pensive, have been delaying surgeries and cancer treatments, leaving
patients in unnecessary pain and forcing hospitals to give less effec-
tive treatments. This results in complications and longer hospital
stays.

Over half of 549 U.S. hospital responses to a survey by the Institute
for Safe Medication Practices, said they had purchased one or more
prescription drugs from so-called "gray market vendors" - secondary
market companies that purchase scare drugs from small regional whole-
salers, pharmacies, or others sources and then gouge the prices of the
products when selling them to hospitals. Most hospitals also said
they've had to do so more often of late, and 7 percent reported side
effects or other problems.

The average price markup on drugs sold by secondary distributors were
650 percent. In an extreme case, one vendor was offering a generic drug
for high blood pressure, normally priced at $25.90 per dose, for $1,200.

 
SOCIAL JUSTICE IMPACT:

This legislation would contribute to the right of New Yorkers to afford-
able and exceptional health care. This legislation would put the afford-
able treatment of New Yorkers over the profits of secondary market
companies.

 
AMENDED VERSION:

The "B" Print clarified an error that appeared in the "A" Print. The
difference between the "B" Print and the original bill are a clarifica-
tion of the wording in Section 2, elimination of the private right of
action, and reduction of potential penalty for a violation.

 
PRIOR LEGISLATIVE HISTORY:

SENATE

S.3654 of 2019

02/11/19 REFERRED TO CONSUMER PROTECTION

06/12/19 COMMITTEE DISCHARGED AND COMMITTED TO RULES

06/12/19 ORDERED TO THIRD READING CAL. 1299

06/12/19 PASSED SENATE

06/12/19 DELIVERED TO ASSEMBLY

06/12/19 referred to consumer affairs and protection

01/08/20 died in assembly

01/08/20 returned to senate

01/08/20 REFERRED TO CONSUMER PROTECTION

02/12/20 1ST REPORT CAL.437

02/13/20 2ND REPORT CAL.

02/24/20 ADVANCED TO THIRD READING

02/25/20 PASSED SENATE

02/25/20 DELIVERED TO ASSEMBLY

02/25/20 referred to consumer affairs and protection

A8801 of 2012

Passed Assembly 2012-2018. Died in Senate 2012-2018.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None

 
EFFECTIVE DATE:
This bill will take effect immediately.

S3081B (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3081--B
     Cal. No. 461
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2021
                                ___________
 
 Introduced by Sens. SALAZAR, BIAGGI, BRISPORT, GIANARIS, JACKSON, KRUEG-
   ER,  LANZA, REICHLIN-MELNICK, SANDERS -- read twice and ordered print-
   ed, and when printed to be committed  to  the  Committee  on  Consumer
   Protection  --  recommitted to the Committee on Consumer Protection in
   accordance with Senate Rule 6, sec. 8 -- reported favorably from  said
   committee,  ordered  to  first  and  second report, ordered to a third
   reading, amended and ordered reprinted, retaining  its  place  in  the
   order of third reading -- passed by Senate and delivered to the Assem-
   bly,  recalled,  vote reconsidered, restored to third reading, amended
   and ordered reprinted, retaining its place in the order of third read-
   ing
 
 AN ACT to amend the general business law, in relation to the price goug-
   ing of medicine
 
   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 section
 396-rrr to read as follows:
   §  396-RRR.  PRICE  GOUGING  OF  MEDICINE. 1. FOR THE PURPOSES OF THIS
 SECTION, "DRUG SUBJECT TO A SHORTAGE" SHALL MEAN  ANY  DRUG  OR  MEDICAL
 PRODUCT  INTENDED  FOR HUMAN USE PUBLICLY REPORTED AS BEING SUBJECT TO A
 SHORTAGE BY THE U.S.  FOOD  AND  DRUG  ADMINISTRATION  ON  ITS  WEBSITE,
 PROVIDED,  HOWEVER, THAT A DRUG OR MEDICAL PRODUCT SHALL ONLY BE CONSID-
 ERED A "DRUG SUBJECT TO A SHORTAGE" DURING THE PERIOD OF TIME THAT  SUCH
 DRUG OR MEDICAL PRODUCT IS LISTED AS BEING SUBJECT TO A SHORTAGE ON SUCH
 WEBSITE.
   2. NO MANUFACTURER, SUPPLIER, WHOLESALER, DISTRIBUTOR OR RETAIL SELLER
 OF  ANY  DRUG SUBJECT TO A SHORTAGE SHALL SELL OR OFFER TO SELL ANY SUCH
 DRUG SUBJECT TO A SHORTAGE FOR AN AMOUNT WHICH REPRESENTS AN UNCONSCION-
 ABLY EXCESSIVE PRICE.
   3. WHETHER A PRICE IS UNCONSCIONABLY EXCESSIVE IS A  QUESTION  OF  LAW
 FOR THE COURT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06581-05-2
 S. 3081--B                          2
 
   (A)  THE  COURT'S  DETERMINATION  THAT A VIOLATION OF THIS SECTION HAS
 OCCURRED SHALL BE BASED ON ANY OF THE FOLLOWING FACTORS:
   (I) THAT THE AMOUNT OF THE EXCESS IN PRICE IS UNCONSCIONABLY EXTREME;
   (II)  THAT  THERE WAS AN EXERCISE OF UNFAIR LEVERAGE OR UNCONSCIONABLE
 MEANS; OR
   (III) A COMBINATION OF BOTH FACTORS IN SUBPARAGRAPHS (I) AND  (II)  OF
 THIS PARAGRAPH.
   (B)  IN  ANY PROCEEDING COMMENCED PURSUANT TO SUBDIVISION FOUR OF THIS
 SECTION, PRIMA FACIE PROOF THAT A VIOLATION OF THIS SECTION HAS OCCURRED
 SHALL INCLUDE EVIDENCE THAT:
   (I) THE AMOUNT CHARGED REPRESENTS A GROSS DISPARITY BETWEEN THE  PRICE
 OF  THE  DRUG  SUBJECT TO A SHORTAGE WHICH WAS THE SUBJECT OF THE TRANS-
 ACTION AND THEIR VALUE MEASURED BY THE PRICE AT WHICH SUCH DRUG WAS SOLD
 OR OFFERED FOR SALE BY THE DEFENDANT IN THE  USUAL  COURSE  OF  BUSINESS
 IMMEDIATELY PRIOR TO THE ONSET OF THE SHORTAGE; OR
   (II)  THE  AMOUNT CHARGED GROSSLY EXCEEDED THE PRICE AT WHICH THE SAME
 OR SIMILAR DRUG SUBJECT TO A SHORTAGE WAS READILY  OBTAINABLE  BY  OTHER
 PURCHASERS IN THE TRADE AREA.
   (C) A DEFENDANT MAY REBUT A PRIMA FACIE CASE WITH EVIDENCE THAT:
   (I)  THE INCREASE IN THE AMOUNT CHARGED PRESERVES THE MARGIN OF PROFIT
 THAT THE DEFENDANT RECEIVED FOR THE SAME  DRUG  SUBJECT  TO  A  SHORTAGE
 PRIOR TO THE ONSET OF THE SHORTAGE; OR
   (II)  ADDITIONAL  COSTS  NOT  WITHIN THE CONTROL OF THE DEFENDANT WERE
 IMPOSED ON THE DEFENDANT FOR THE DRUG SUBJECT TO A SHORTAGE.
   4. WHERE A VIOLATION OF THIS SECTION IS ALLEGED TO HAVE OCCURRED,  THE
 ATTORNEY GENERAL MAY APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF NEW
 YORK  TO  THE  SUPREME  COURT WITHIN THE JUDICIAL DISTRICT IN WHICH SUCH
 VIOLATION IS ALLEGED TO HAVE OCCURRED, ON NOTICE OF FIVE  DAYS,  FOR  AN
 ORDER  ENJOINING OR RESTRAINING COMMISSION OR CONTINUANCE OF THE ALLEGED
 UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE COURT SHALL  IMPOSE  A  CIVIL
 PENALTY  IN  AN  AMOUNT  NOT  TO EXCEED TWENTY-FIVE THOUSAND DOLLARS PER
 VIOLATION OR THREE TIMES  THE  GROSS  RECEIPTS  FOR  THE  RELEVANT  DRUG
 SUBJECT  TO  THE  SHORTAGE, WHICHEVER IS GREATER, AND WHERE APPROPRIATE,
 ORDER RESTITUTION TO AGGRIEVED PARTIES.
   § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S3081A

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Archive: Last Bill Status - Vetoed by Governor

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Votes

May 31, 2022 - floor Vote

Floor Vote: May 31, 2022

May 24, 2022 - floor Vote

Floor Vote: May 24, 2022

Feb 8, 2022 - Consumer Protection committee Vote

Committee Vote: Feb 8, 2022

Jun 8, 2021 - floor Vote

Floor Vote: Jun 8, 2021

Jun 7, 2021 - Rules committee Vote

Committee Vote: Jun 7, 2021

Bill Amendments

Co-Sponsors

S3081 - Details

S3081 - Summary

S3081 - Sponsor Memo

S3081 - Bill Text download pdf

Co-Sponsors

S3081A - Details

S3081A - Summary

S3081A - Sponsor Memo

S3081A - Bill Text download pdf

Co-Sponsors

S3081B (ACTIVE) - Details

S3081B (ACTIVE) - Summary

S3081B (ACTIVE) - Sponsor Memo

S3081B (ACTIVE) - Bill Text download pdf

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senate Bill S3081A

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Sponsored By

Archive: Last Bill Status - Vetoed by Governor

Your Voice

Actions

Votes

May 31, 2022 - floor Vote

Floor Vote: May 31, 2022

May 24, 2022 - floor Vote

Floor Vote: May 24, 2022

Feb 8, 2022 - Consumer Protection committee Vote

Committee Vote: Feb 8, 2022

Jun 8, 2021 - floor Vote

Floor Vote: Jun 8, 2021

Jun 7, 2021 - Rules committee Vote

Committee Vote: Jun 7, 2021

Bill Amendments

Co-Sponsors

S3081 - Details

S3081 - Summary

S3081 - Sponsor Memo

S3081 - Bill Text download pdf

Co-Sponsors

S3081A - Details

S3081A - Summary

S3081A - Sponsor Memo

S3081A - Bill Text download pdf

Co-Sponsors

S3081B (ACTIVE) - Details

S3081B (ACTIVE) - Summary

S3081B (ACTIVE) - Sponsor Memo

S3081B (ACTIVE) - Bill Text download pdf

Comments