S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5946
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 20, 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 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.
              

                                                            LBD09882-01-9

 A. 5946                             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.