A06606 Summary:

COSPNSRReyes, D'Urso, Stern, Griffin, Jacobson, Hevesi, Seawright, Pichardo, Weprin, Barron, Carroll, LiPetri, Simon, Mosley, Buttenschon, Benedetto, Montesano, Hunter, Cruz, Colton, Gottfried, Niou, Dinowitz, Epstein, Ortiz, Jean-Pierre
Add 396-rrr, Gen Bus L
Penalizes the price gouging of pharmaceuticals; penalty not to exceed one million dollars.
Go to top    

A06606 Actions:

03/14/2019referred to consumer affairs and protection
01/08/2020referred to consumer affairs and protection
Go to top

A06606 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the general business law, in relation to the price gouging of pharmaceuticals   SUMMARY OF PROVISIONS: Section 1. Defines pharmaceuticals; provides that no manufacturer or wholesaler can sell a pharmaceutical at an unconscionably excessive price; gives court discretion to determine unconscionably excessive price; allows the Office of the New York State Attorney General the ability to file a motion to cease sale of a pharmaceutical at unlawful price; allows the court to impose a maximum penalty of $1,000,000 and possible restitution to those aggrieved. Section 2. This act shall take effect immediately.   JUSTIFICATION: There is minimal regulation on the pricing of pharmaceuticals. In the United States, a system has developed where drug companies are putting profits ahead of people's health. Based on this price-gouging, accessi- bility to medicine is becoming a serious problem. One example is epinephrine, an injection of which is used to treat anaphylactic shock. In 2007, the average cost of a two-pack of epinephrine auto-injectors for those with medical insurance was $94. Today, the price of the treat- ment for those with medical insurance has steadily risen to more than $600. Another example is the anti-parasitic drug, Daraprim. After an acquisi- tion in August of 2015, the price of the drug was raised from $13.50 a tablet to $750 a tablet. Those with medical insurance are now paying anywhere from $1,000 to $16,000 in co-pays for a bottle of Daraprim. This legislation is intended to give regulatory oversight to the NYS Attorney General in order to create equal access and affordability to pharmaceuticals for all New Yorkers.   LEGISLATIVE HISTORY: 2015-16: S8182B - Rules BILL NO A10527 05/04/2018 referred to consumer affairs and protection   EFFECTIVE DATE: This act will take effect immediately.
Go to top

A06606 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 14, 2019
        Introduced by M. of A. CRESPO -- read once and referred to the Committee
          on Consumer Affairs and Protection
        AN ACT to amend the general business law, in relation to the price goug-
          ing of pharmaceuticals
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  396-rrr to read as follows:
     3    § 396-rrr. Price gouging; pharmaceuticals.   1. For  the  purposes  of
     4  this section, "pharmaceuticals" shall mean any compound manufactured for
     5  sale as a medicinal drug.
     6    2.  No  manufacturer  or  wholesaler  of pharmaceuticals shall sell or
     7  offer to sell pharmaceuticals for an amount which represents  an  uncon-
     8  scionably  excessive  price. Whether a price is unconscionably excessive
     9  is a question of law for the court.
    10    3. The court's determination that a  violation  of  this  section  has
    11  occurred shall be based on any of the following factors:
    12    (a) that the amount of the excess in price is unconscionably extreme;
    13    (b)  that  there  was an exercise of unfair leverage or unconscionable
    14  means; or
    15    (c) a combination of both factors.
    16    4. In any court proceeding commenced pursuant to this  section,  proof
    17  that  a  violation  of  this section has occurred shall include evidence
    18  that:
    19    (a) the amount charged represents a gross disparity between the market
    20  price of the pharmaceutical that led to the action  under  this  section
    21  and  the  price  of the same pharmaceutical over the six months prior to
    22  the price change that led to the action under this section; or
    23    (b) the amount charged grossly exceeded the price at which the pharma-
    24  ceuticals were readily obtainable by other purchasers.

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

        A. 6606                             2
     1    5. A defendant may rebut a prima facie case with evidence  that  addi-
     2  tional costs not within the control of the defendant were imposed on the
     3  defendant.
     4    6.  Where a violation of this section is alleged to have occurred, the
     5  attorney general may apply in the name of the people of the state of New
     6  York to the supreme court within the judicial  district  in  which  such
     7  violation  is  alleged  to have occurred, on notice of five days, for an
     8  order enjoining or restraining commission or continuance of the  alleged
     9  unlawful acts. In any such proceeding where a violation is found to have
    10  occurred,  the  court  shall  impose a civil penalty in an amount not to
    11  exceed one million dollars and, where appropriate, order restitution  to
    12  aggrieved consumers.
    13    § 2. This act shall take effect immediately.
Go to top