NY State Senate Bill S608A

Current Bill Status - Passed Senate

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

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Actions

view actions (8)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 17, 2023	referred to consumer affairs and protection delivered to assembly passed senate ordered to third reading cal.77 reported and committed to rules
Jan 12, 2023	print number 608a
Jan 12, 2023	amend and recommit to consumer protection
Jan 05, 2023	referred to consumer protection

Votes

view votes

Jan 17, 2023 - floor Vote

S608A

floor

Aye

Nay

Absent

Excused

Abstained

Jan 17, 2023 - Consumer Protection committee Vote

S608A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Jan 17, 2023 - Rules committee Vote

S608A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

S608 - Details

See Assembly Version of this Bill:: A5653
Law Section:: General Business Law
Laws Affected:: Amd §396-r, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3654, A5946
2021-2022: S3081, A5860

S608 - Summary

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

S608 - Sponsor Memo

 
BILL NUMBER: S608

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.

 
PRIOR LEGISLATIVE HISTORY:

SENATE:

2019: S3654 (Salazar)- Referred to Consumer Protection, Committed to
Rules, Passed Senate

2020: Referred to Consumer Protection, Passed Assembly

2021:S3081B (Salazar)- Referred to Consumer Protection, Committed to
Rules, Passed Senate

2022: Referred to Consumer Protection, Passed Senate, Passed Assembly,
Vetoed by Governor

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None

 
EFFECTIVE DATE:
This bill will take effect immediately.

S608 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    608
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by  Sens.  SALAZAR,  BRISPORT,  GIANARIS,  HELMING, JACKSON,
   KRUEGER, LANZA, SANDERS, SERRANO -- 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 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;
   (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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03763-01-3

 S. 608                              2
 
   (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.

Co-Sponsors

view additional co-sponsors

S608A (ACTIVE) - Details

See Assembly Version of this Bill:: A5653
Law Section:: General Business Law
Laws Affected:: Amd §396-r, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3654, A5946
2021-2022: S3081, A5860

S608A (ACTIVE) - Summary

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

S608A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S608A

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: Amends subdivision 2 of section 396-r of the general business
law to add the phrase "drug shortage" to the definition of "abnormal
disruption of the market" and to further define the phrase "drug short-
age" to mean the issuance of a notice by the U.S. Food and Drug Adminis-
tration declaring a drug shortage.

Section 2: Establishes the effective date.

 
JUSTIFICATION:

Price gouging of medicine is a well-documented and significant issue
that interferes with the ability of many people to access necessary
medication and contributes to soaring profits of some pharmaceutical
corporations. Price gouging of medication has a racially disparate
impact, with people of color and communities of color, as well as less
affluent communities in general, disproportionately impacted.

This bill originally was developed in the wake of workshops on improving
health care access for Latinos by the NYS Assembly Puerto Rican Hispanic
Task Force (PRHTF) during its annual legislative conference in 2011.

Although this issue has gained prominent media attention, the problem
remains.

This bill would provide the New York State, through the Office of the
Attorney General with additional tools and authority to respond to price
gouging of medication and to, thereby, protect public health and ease
disparities in health-care access, treatment, and outcomes.

 
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.

The B-print simplifies the bill by moving the price gouging of medicine
issue to the existing statutory provision relating to price gouging
within the General Business Law.

 
PRIOR LEGISLATIVE HISTORY:

SENATE:

2019: S3654 (Salazar)- Referred to Consumer Protection, Committed to
Rules, Passed Senate

2020: Referred to Consumer Protection, Passed Assembly

2021:S3081B (Salazar)- Referred to Consumer Protection, Committed to
Rules, Passed Senate

2022: Referred to Consumer Protection, Passed Senate, Passed Assembly,
Vetoed by Governor

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None

 
EFFECTIVE DATE:
This bill will take effect immediately.

S608A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  608--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by  Sens.  SALAZAR,  BRISPORT,  GIANARIS,  HELMING, JACKSON,
   KRUEGER, LANZA, SANDERS, SERRANO -- 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 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.    Subdivision  2 of section 396-r of the general business
 law, as amended by chapter 90 of the laws of 2020, is amended to read as
 follows:
   2. (A) During any abnormal disruption of  the  market  for  goods  and
 services  vital  and  necessary  for  the  health, safety and welfare of
 consumers or the general public, no party within the chain  of  distrib-
 ution  of such goods or services or both shall sell or offer to sell any
 such goods or services or both for an amount which represents an  uncon-
 scionably excessive price.
   (B)  For  purposes of this section, the phrase "abnormal disruption of
 the market" shall mean any change in the market, whether actual or immi-
 nently threatened, resulting  from  stress  of  weather,  convulsion  of
 nature, failure or shortage of electric power or other source of energy,
 strike, civil disorder, war, military action, national or local emergen-
 cy,  DRUG  SHORTAGE,  or  other  cause  of an abnormal disruption of the
 market which results in the declaration of a state of emergency  by  the
 governor.  FOR  PURPOSES  OF  THIS SECTION, THE TERM DRUG SHORTAGE SHALL
 MEAN THE ISSUANCE OF A NOTICE BY THE U.S. FOOD AND  DRUG  ADMINISTRATION
 PURSUANT  TO  SECTION 506C-1 OF THE FEDERAL FOOD DRUGS AND COSMETICS ACT
 OR ANY SUCCESSOR PROVISION THEREOF.
   (C) For the purposes of this section,  the  term  goods  and  services
 shall  include  [(a)]  (I)  consumer  goods and services used, bought or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03763-03-3

 S. 608--A                           2
 
 rendered primarily for personal, family  or  household  purposes,  [(b)]
 (II)  essential  medical  supplies and services used for the care, cure,
 mitigation, treatment or prevention of any illness or disease, and [(c)]
 (III)  any other essential goods and services used to promote the health
 or welfare of the public. This prohibition shall apply  to  all  parties
 within  the chain of distribution, including any manufacturer, supplier,
 wholesaler, distributor or retail seller of goods or  services  or  both
 sold  by  one  party to another when the product sold was located in the
 state prior to the sale. Goods  and  services  shall  also  include  any
 repairs  made  by any party within the chain of distribution of goods on
 an emergency basis as a  result  of  such  abnormal  disruption  of  the
 market.
   § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S608A

Sponsored By

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

Jan 17, 2023 - floor Vote

Floor Vote: Jan 17, 2023

Jan 17, 2023 - Consumer Protection committee Vote

Consumer Protection Committee Vote: Jan 17, 2023

Jan 17, 2023 - Rules committee Vote

Rules Committee Vote: Jan 17, 2023

Bill Amendments

Co-Sponsors

S608 - Details

S608 - Summary

S608 - Sponsor Memo

S608 - Bill Text download pdf

Co-Sponsors

S608A (ACTIVE) - Details

S608A (ACTIVE) - Summary

S608A (ACTIVE) - Sponsor Memo

S608A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S608A

Share this bill

Sponsored By

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

Jan 17, 2023 - floor Vote

Floor Vote: Jan 17, 2023

Jan 17, 2023 - Consumer Protection committee Vote

Consumer Protection Committee Vote: Jan 17, 2023

Jan 17, 2023 - Rules committee Vote

Rules Committee Vote: Jan 17, 2023

Bill Amendments

Co-Sponsors

S608 - Details

S608 - Summary

S608 - Sponsor Memo

S608 - Bill Text download pdf

Co-Sponsors

S608A (ACTIVE) - Details

S608A (ACTIVE) - Summary

S608A (ACTIVE) - Sponsor Memo

S608A (ACTIVE) - Bill Text download pdf

Comments