S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1913
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2025
                                ___________
 
 Introduced  by  Sens. RIVERA, COMRIE, FERNANDEZ, JACKSON, KRUEGER, RAMOS
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Health
 
 AN ACT to amend the public health law, in relation to  establishing  the
   340B prescription drug anti-discrimination act

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "340B prescription drug anti-discrimination act".
   § 2. The public health law is amended by adding a new section 280-d to
 read as follows:
   § 280-D. PRESCRIPTION DRUG DISCRIMINATION PROHIBITED.  1. DEFINITIONS.
 (A)  "340B  PROGRAM"  SHALL MEAN THE DRUG DISCOUNT PROGRAM AUTHORIZED BY
 SECTION 340B OF THE FEDERAL PUBLIC  HEALTH  SERVICE  ACT  (42  U.S.C.  §
 256B).
   (B)  "COVERED  ENTITY"  SHALL HAVE THE SAME MEANING AS IS SET FORTH IN
 SECTION 340B(A)(4) OF THE FEDERAL PUBLIC HEALTH SERVICE ACT (42 U.S.C. §
 256B).
   (C) "CONTRACT PHARMACY" SHALL INCLUDE NEW YORK STATE  PHARMACIES  THAT
 RECEIVE  DRUGS  PURCHASED  UNDER  A CONTRACT PHARMACY ARRANGEMENT WITH A
 COVERED ENTITY.
   (D) "DISPENSING" SHALL INCLUDE A PHARMACY'S ENTIRE DISTRIBUTION  PROC-
 ESS,  INCLUDING,  BUT NOT LIMITED TO, THE ORDERING, PURCHASING, DELIVER-
 ING, RECEIPT, AND SALE OF DRUGS.
   (E) "PHARMACY" SHALL HAVE THE SAME MEANING AS IS SET FORTH IN  SECTION
 SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION LAW.
   2.  PROHIBITION OF DISCRIMINATORY PRACTICE. NO PHARMACEUTICAL MANUFAC-
 TURER, PHARMACY BENEFIT MANAGER, OUTSOURCING  FACILITY,  OR  THIRD-PARTY
 LOGISTICS PROVIDER SHALL DIRECTLY OR INDIRECTLY:
   (A)  DENY,  PROHIBIT,  CONDITION, OR OTHERWISE LIMIT THE DISPENSING OF
 DRUGS FROM A COVERED ENTITY OR CONTRACT PHARMACY, OTHER THAN SUCH  LIMI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03887-02-5
              

 S. 1913                             2
 
 TATIONS  EXPLICITLY  IDENTIFIED  OR  EXPLICITLY  AUTHORIZED EITHER UNDER
 SECTION 340B OF THE FEDERAL PUBLIC  HEALTH  SERVICE  ACT  (42  U.S.C.  §
 256B), OR ANY REGULATIONS PROMULGATED PURSUANT TO SUCH STATUTE;
   (B) DENY ACCESS TO DRUGS MANUFACTURED BY A PHARMACEUTICAL MANUFACTURER
 TO  A COVERED ENTITY OR CONTRACT PHARMACY BASED ON SUCH COVERED ENTITY'S
 OR CONTRACT PHARMACY'S PARTICIPATION IN THE 340B PROGRAM; OR
   (C)  IMPOSE  REQUIREMENTS,  EXCLUSIONS,  REIMBURSEMENT  TERMS,   FEES,
 AUDITS, CLAIM IDENTIFICATION, OR OTHER CONDITIONS ON A COVERED ENTITY OR
 CONTRACT   PHARMACY  THAT  DIFFER  FROM  THE  REQUIREMENTS,  EXCLUSIONS,
 REIMBURSEMENT TERMS, FEES, AUDITS, CLAIM IDENTIFICATION, OR OTHER CONDI-
 TIONS APPLIED TO ENTITIES THAT DO NOT PARTICIPATE IN THE  340B  PROGRAM,
 OTHER  THAN SUCH LIMITATIONS EXPLICITLY IDENTIFIED OR EXPLICITLY AUTHOR-
 IZED EITHER UNDER SECTION 340B OF THE FEDERAL PUBLIC HEALTH SERVICE  ACT
 (42  U.S.C.  §  256B),  OR  ANY REGULATIONS PROMULGATED PURSUANT TO SUCH
 STATUTE.
   3. ENFORCEMENT. (A) ANY PROVISION OF A CONTRACT THAT  IS  CONTRARY  TO
 THIS ACT SHALL BE VOID AND UNENFORCEABLE.
   (B)  THE COMMISSIONER SHALL HAVE THE AUTHORITY TO IMPOSE A CIVIL MONE-
 TARY PENALTY PURSUANT TO SECTION TWELVE OF THIS CHAPTER  ON  ANY  ENTITY
 THAT VIOLATES THE PROVISIONS OF THIS ACT.
   (C) THE COMMISSIONER SHALL REFER ANY MATTERS IN WHICH A CIVIL MONETARY
 PENALTY  IS  BEING IMPOSED TO THE EDUCATION DEPARTMENT AND THE OFFICE OF
 THE ATTORNEY GENERAL FOR REVIEW.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   § 4. This act shall take effect immediately.