Bill Text: NY A05653 | 2023-2024 | General Assembly | Amended

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

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Introduced) 2023-05-16 - substituted by s608c [A05653 Detail]

Download: New_York-2023-A05653-Amended.html

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                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.