Bill Text: NY A06606 | 2019-2020 | General Assembly | Introduced

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Bill Title: Penalizes the price gouging of pharmaceuticals; penalty not to exceed one million dollars.

Spectrum: Strong Partisan Bill (Democrat 27-2)

Status: (Introduced - Dead) 2020-07-06 - enacting clause stricken [A06606 Detail]

Download: New_York-2019-A06606-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6606
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 14, 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 pharmaceuticals
          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; pharmaceuticals.   1. For  the  purposes  of
     4  this section, "pharmaceuticals" shall mean any compound manufactured for
     5  sale as a medicinal drug.
     6    2.  No  manufacturer  or  wholesaler  of pharmaceuticals shall sell or
     7  offer to sell pharmaceuticals for an amount which represents  an  uncon-
     8  scionably  excessive  price. Whether a price is unconscionably excessive
     9  is a question of law for the court.
    10    3. The court's determination that a  violation  of  this  section  has
    11  occurred shall be based on any of the following factors:
    12    (a) that the amount of the excess in price is unconscionably extreme;
    13    (b)  that  there  was an exercise of unfair leverage or unconscionable
    14  means; or
    15    (c) a combination of both factors.
    16    4. In any court proceeding commenced pursuant to this  section,  proof
    17  that  a  violation  of  this section has occurred shall include evidence
    18  that:
    19    (a) the amount charged represents a gross disparity between the market
    20  price of the pharmaceutical that led to the action  under  this  section
    21  and  the  price  of the same pharmaceutical over the six months prior to
    22  the price change that led to the action under this section; or
    23    (b) the amount charged grossly exceeded the price at which the pharma-
    24  ceuticals were readily obtainable by other purchasers.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05326-01-9
        A. 6606                             2
     1    5. A defendant may rebut a prima facie case with evidence  that  addi-
     2  tional costs not within the control of the defendant were imposed on the
     3  defendant.
     4    6.  Where a violation of this section is alleged to have occurred, the
     5  attorney general may apply in the name of the people of the state of New
     6  York to the supreme court within the judicial  district  in  which  such
     7  violation  is  alleged  to have occurred, on notice of five days, for an
     8  order enjoining or restraining commission or continuance of the  alleged
     9  unlawful acts. In any such proceeding where a violation is found to have
    10  occurred,  the  court  shall  impose a civil penalty in an amount not to
    11  exceed one million dollars and, where appropriate, order restitution  to
    12  aggrieved consumers.
    13    § 2. This act shall take effect immediately.