Senate Bill S608

Signed By Governor
2023-2024 Legislative Session

Relates to price gouging of medicine

download bill text pdf

Sponsored By

Current Bill Status - Signed by Governor

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2023-S608 - Details

Law Section:
General Business Law
Laws Affected:
Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2019-2020: S3654
2021-2022: S3081

2023-S608 - Summary

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

2023-S608 - Sponsor Memo

2023-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

co-Sponsors

2023-S608A - Details

Law Section:
General Business Law
Laws Affected:
Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2019-2020: S3654
2021-2022: S3081

2023-S608A - Summary

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

2023-S608A - Sponsor Memo

2023-S608A - 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

co-Sponsors

2023-S608B - Details

Law Section:
General Business Law
Laws Affected:
Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2019-2020: S3654
2021-2022: S3081

2023-S608B - Summary

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

2023-S608B - Sponsor Memo

2023-S608B - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  608--B
     Cal. No. 77
 
                        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, LIU, SANDERS, SERRANO -- read twice and ordered print-
   ed, 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 -- reported favorably from
   said committee and committed to the Committee  on  Rules  --  reported
   favorably  from  said committee, ordered to a third reading, passed by
   Senate and delivered to the  Assembly,  recalled,  vote  reconsidered,
   restored  to  third  reading, amended and ordered reprinted, retaining
   its place in 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:
 
   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.

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

co-Sponsors

2023-S608C (ACTIVE) - Details

Law Section:
General Business Law
Laws Affected:
Add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2019-2020: S3654
2021-2022: S3081

2023-S608C (ACTIVE) - Summary

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

2023-S608C (ACTIVE) - Sponsor Memo

2023-S608C (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  608--C
     Cal. No. 77
 
                        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, LIU, SANDERS, SERRANO -- read twice and ordered print-
   ed, 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 -- reported favorably from
   said committee and committed to the Committee  on  Rules  --  reported
   favorably  from  said committee, ordered to a third reading, passed by
   Senate and delivered to the  Assembly,  recalled,  vote  reconsidered,
   restored  to  third  reading, amended and ordered reprinted, retaining
   its place in the order of third reading -- again amended  and  ordered
   reprinted, retaining its place in 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:
 
   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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03763-10-3

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