Bill Text: NY S08182 | 2015-2016 | General Assembly | Amended

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-09-19 - PRINT NUMBER 8182B [S08182 Detail]

Download: New_York-2015-S08182-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         8182--B
                    IN SENATE
                                     August 26, 2016
                                       ___________
        Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
          printed to be  committed  to  the  Committee  on  Rules  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  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 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.
                                                                   LBD16028-06-6
        S. 8182--B                          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.