-  This bill is not active in this session.
 

A05653 Summary:

BILL NOA05653B
 
SAME ASSAME AS S00608-C
 
SPONSORReyes
 
COSPNSRWilliams, Otis, Walsh, Jacobson, Dickens
 
MLTSPNSR
 
Amd 396-r, Gen Bus L
 
Prohibits selling a drug subject to a shortage for an unconscionably excessive price.
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A05653 Actions:

BILL NOA05653B
 
03/20/2023referred to consumer affairs and protection
03/28/2023amend and recommit to consumer affairs and protection
03/28/2023print number 5653a
04/25/2023reported
04/27/2023advanced to third reading cal.175
05/10/2023amended on third reading 5653b
05/16/2023substituted by s608c
 S00608 AMEND=C SALAZAR
 01/05/2023REFERRED TO CONSUMER PROTECTION
 01/12/2023AMEND AND RECOMMIT TO CONSUMER PROTECTION
 01/12/2023PRINT NUMBER 608A
 01/17/2023REPORTED AND COMMITTED TO RULES
 01/17/2023ORDERED TO THIRD READING CAL.77
 01/17/2023PASSED SENATE
 01/17/2023DELIVERED TO ASSEMBLY
 01/17/2023referred to consumer affairs and protection
 04/24/2023RECALLED FROM ASSEMBLY
 04/24/2023returned to senate
 04/24/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
 04/24/2023AMENDED ON THIRD READING 608B
 05/08/2023AMENDED ON THIRD READING 608C
 05/16/2023REPASSED SENATE
 05/16/2023RETURNED TO ASSEMBLY
 05/16/2023substituted for a5653b
 05/16/2023ordered to third reading cal.175
 05/16/2023passed assembly
 05/16/2023returned to senate
 12/12/2023DELIVERED TO GOVERNOR
 12/13/2023SIGNED CHAP.725
 01/05/2023REFERRED TO CONSUMER PROTECTION
 01/12/2023AMEND AND RECOMMIT TO CONSUMER PROTECTION
 01/12/2023PRINT NUMBER 608A
 01/17/2023REPORTED AND COMMITTED TO RULES
 01/17/2023ORDERED TO THIRD READING CAL.77
 01/17/2023PASSED SENATE
 01/17/2023DELIVERED TO ASSEMBLY
 01/17/2023referred to consumer affairs and protection
 04/24/2023RECALLED FROM ASSEMBLY
 04/24/2023returned to senate
 04/24/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
 04/24/2023AMENDED ON THIRD READING 608B
 05/08/2023AMENDED ON THIRD READING 608C
 05/16/2023REPASSED SENATE
 05/16/2023RETURNED TO ASSEMBLY
 05/16/2023substituted for a5653b
 05/16/2023ordered to third reading cal.175
 05/16/2023passed assembly
 05/16/2023returned to senate
 12/12/2023DELIVERED TO GOVERNOR
 12/13/2023SIGNED CHAP.725
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A05653 Committee Votes:

CONSUMER AFFAIRS AND PROTECTION Chair:Rozic DATE:04/25/2023AYE/NAY:11/5 Action: Favorable
RozicAyeMikulinNay
FallAyeMillerNay
BurgosAyeBlumencranzNay
GallagherAyeBeephanNay
RajkumarAyeMaherNay
ForrestAye
WallaceAye
BoresAye
LeeAye
AlvarezAye
SimoneAye

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A05653 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5653B
 
SPONSOR: Reyes
  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.   DIFFERENCE FROM THE ORIGINAL VERSION OF THE BILL: This bill clarifies the federal laws and agencies referred, to under the statute.   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 bill has been simplified by moving the price gouging of medicine issue to the existing statutory provision relating to price, gouging within the General Business Law. Newest version of the bill makes a technical   PRIOR LEGISLATIVE HISTORY: A5860-B- 2021-2022 - Passed Both Houses, Vetoed by the Governor (Memo 162) A8801 of 2012, Passed Assembly every year since 2012 thru 2018. Died in Senate each and every year since 2012 thru 2018.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT: None   EFFECTIVE DATE: This bill will take effect immediately.
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A05653 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5653--B
                                                                Cal. No. 175
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 20, 2023
                                       ___________
 
        Introduced  by  M.  of  A. REYES, WILLIAMS, OTIS, WALSH -- read once and
          referred to the  Committee  on  Consumer  Affairs  and  Protection  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- reported from committee, advanced  to
          a third reading, amended and ordered reprinted, retaining its place on
          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:
 
     1    Section 1.  Subdivision 2 of section 396-r  of  the  general  business
     2  law, as amended by chapter 90 of the laws of 2020, is amended to read as
     3  follows:
     4    2.  (a)  During  any  abnormal  disruption of the market for goods and
     5  services vital and necessary for  the  health,  safety  and  welfare  of
     6  consumers  or  the general public, no party within the chain of distrib-
     7  ution of such goods or services or both shall sell or offer to sell  any
     8  such  goods or services or both for an amount which represents an uncon-
     9  scionably excessive price.
    10    (b) For purposes of this section, the phrase "abnormal  disruption  of
    11  the market" shall mean any change in the market, whether actual or immi-
    12  nently  threatened,  resulting  from  stress  of  weather, convulsion of
    13  nature, failure or shortage of electric power or other source of energy,
    14  strike, civil disorder, war, military action, national or local emergen-
    15  cy, drug shortage, or other cause  of  an  abnormal  disruption  of  the
    16  market  which  results in the declaration of a state of emergency by the
    17  governor.
    18    (c) For purposes of this section, the term "drug shortage" shall mean,
    19  with respect to any drug or medical product intended for human use, that
    20  such drug or medical product is publicly reported as being subject to  a
    21  shortage by the U.S. Food and Drug Administration.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03763-09-3

        A. 5653--B                          2
 
     1    (d)  For  the  purposes of this section, the term "goods and services"
     2  shall include [(a)] (i) consumer goods  and  services  used,  bought  or
     3  rendered  primarily  for  personal,  family or household purposes, [(b)]
     4  (ii) essential medical supplies and services used for  the  care,  cure,
     5  mitigation, treatment or prevention of any illness or disease, and [(c)]
     6  (iii)  any other essential goods and services used to promote the health
     7  or welfare of the public.
     8    (e) This prohibition shall apply to all parties within  the  chain  of
     9  distribution, including any manufacturer, supplier, wholesaler, distrib-
    10  utor  or retail seller of goods or services or both sold by one party to
    11  another when the product sold was located in  the  state  prior  to  the
    12  sale.  [Goods] For the purposes of this subdivision, the term "goods and
    13  services" shall also include any repairs made by any  party  within  the
    14  chain of distribution of goods on an emergency basis as a result of such
    15  abnormal disruption of the market.
    16    § 2. This act shall take effect immediately.
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