S03654 Summary:

BILL NOS03654
 
SAME ASSAME AS A05946
 
SPONSORSALAZAR
 
COSPNSRCARLUCCI
 
MLTSPNSR
 
Add 396-rrr, Gen Bus L
 
Prohibits selling a drug subject to a shortage for an unconscionably excessive price.
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S03654 Actions:

BILL NOS03654
 
02/11/2019REFERRED TO CONSUMER PROTECTION
06/12/2019COMMITTEE DISCHARGED AND COMMITTED TO RULES
06/12/2019ORDERED TO THIRD READING CAL.1299
06/12/2019PASSED SENATE
06/12/2019DELIVERED TO ASSEMBLY
06/12/2019referred to consumer affairs and protection
01/08/2020died in assembly
01/08/2020returned to senate
01/08/2020REFERRED TO CONSUMER PROTECTION
02/12/20201ST REPORT CAL.437
02/13/20202ND REPORT CAL.
02/24/2020ADVANCED TO THIRD READING
02/25/2020PASSED SENATE
02/25/2020DELIVERED TO ASSEMBLY
02/25/2020referred to consumer affairs and protection
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S03654 Memo:

Memo not available
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S03654 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3654
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                    February 11, 2019
                                       ___________
 
        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:

     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  of  medicine. 1. For the purposes of this
     4  section, "drug subject to a shortage" shall mean  any  drug  or  medical
     5  product  intended  for human use publicly reported as being subject to a
     6  shortage by the U.S.  food  and  drug  administration  on  its  website,
     7  provided,  however, that a drug or medical product shall only be consid-
     8  ered a "drug subject to a shortage" during the period of time that  such
     9  drug or medical product is listed as being subject to a shortage on such
    10  website.
    11    2.  No party within the chain of distribution of any drug subject to a
    12  shortage shall sell or offer to sell any such drug subject to a shortage
    13  for an amount which represents an unconscionably excessive price.
    14    3. Whether a price is unconscionably excessive is a  question  of  law
    15  for the court.
    16    (a)  The  court's  determination  that a violation of this section has
    17  occurred shall be based on any of the following factors:
    18    (i) that the amount of the excess in price is unconscionably extreme;
    19    (ii) that there was an exercise of unfair leverage  or  unconscionable
    20  means; or
    21    (iii)  a  combination of both factors in subparagraphs (i) and (ii) of
    22  this paragraph.
    23    (b) In any proceeding commenced pursuant to subdivision four  of  this
    24  section, prima facie proof that a violation of this section has occurred
    25  shall include evidence that:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09882-01-9

        S. 3654                             2
 
     1    (i)  the amount charged represents a gross disparity between the price
     2  of the drug subject to a shortage which was the subject  of  the  trans-
     3  action and their value measured by the price at which such drug was sold
     4  or  offered  for  sale  by the defendant in the usual course of business
     5  immediately prior to the onset of the shortage; and
     6    (ii)  the  amount charged grossly exceeded the price at which the same
     7  or similar drug subject to a shortage was readily  obtainable  by  other
     8  purchasers  in  the trade area. A defendant may rebut a prima facie case
     9  with evidence that additional  costs  not  within  the  control  of  the
    10  defendant were imposed on the defendant for the drug subject to a short-
    11  age.
    12    4.  (a) Where a violation of this section is alleged to have occurred,
    13  the attorney general may apply in the name of the People of the State of
    14  New York to the supreme court within the judicial district in which such
    15  violation is alleged to have occurred, on notice of five  days,  for  an
    16  order  enjoining or restraining commission or continuance of the alleged
    17  unlawful acts. In any such proceeding, the court shall  impose  a  civil
    18  penalty  in  an  amount  not to exceed one hundred thousand dollars and,
    19  where appropriate, order restitution to aggrieved consumers.
    20    (b) In addition to any action brought by the attorney general pursuant
    21  to paragraph (a) of this subdivision, a person injured by a violation of
    22  this section may bring an action to recover damages. The court may  also
    23  award reasonable attorneys fees to a prevailing plaintiff.
    24    § 2. This act shall take effect immediately.
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