NY State Senate Bill 2015-S439

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to consumer protection
Jan 07, 2015	referred to consumer protection

2015-S439 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 38-B §§830 & 831, Gen Bus L
Versions Introduced in 2013-2014 Legislative Session:: S7389

2015-S439 (ACTIVE) - Summary

Relates to consumer protection from prescription drug reimportation and unlawful practices and enforcement and penalties.

2015-S439 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S439

 TITLE OF BILL :  An act to amend the general business law, in
relation to consumer protection from prescription drug reimportation

 PURPOSE :

This bill makes prescription drug reimportation an unlawful practice
in New York State, authorizes the Attorney General to make an
application to the court for an injunction against the continuance of
violations of this article, and allows the court to impose civil
penalties for such violations.

 SUMMARY OF PROVISIONS :

Section one adds a new article to the general business law titled
"Consumer Protection from Prescription Drug Reimportation."

This section makes it an unlawful practice to purchase for resale,
sell, offer for sale, or deliver in any manner any prescription
medication approved by the United States Federal Drug Administration
that is either: (1) manufactured in the United States, exported to
another country, and then subsequently reimported in violation of
state or federal law, or (2) manufactured for sale in another country
and imported into the United States in violation of state or federal
law.

Further, this section provides enforcement and penalties for this new
article. It authorizes the New York State Attorney General to make an
application to the court for an injunction to enjoin and restrain the
continuance of violations of this article and authorizes the court to
issue such injunction if the court or justice finds that the defendant
has in fact violated this article. It also authorizes the New York
State Attorney General, in connection with any proposed application
for injunction, to take proof, make a determination of the relevant
facts, and issue subpoenas in accordance with the Civil Practice Law
and Rules (CPLR). Further, the court may impose a civil penalty of
$1,000 to $10,000 when a violation of this article has occurred.

Lastly, this section provides that the New York State Attorney General
give notice to the person against whom such proceeding is contemplated
and an opportunity to show why proceedings should not be instituted
against him or her. The Attorney General is exempted from giving
notice and opportunity where it is not in the public interest.

Section two states that this act shall take effect on the ninetieth
day after it shall have become a law.

 JUSTIFICATION :

In recent years, there has been an increase in individuals and
businesses buying prescription drugs from foreign countries and
importing them for sale in New York State. This practice is extremely
dangerous to New York consumers. Prescription drugs that are illegally
imported into New York State could be contaminated, ineffective, and
improperly stored and transported, thus making them unsafe. These
drugs pose additional risks to consumers if they do not comply with
federal labeling requirements and warnings which provide important
product information to the consumer.

While the illegal importation of prescription drugs may be prosecuted
at the federal level, there are few protections for consumers at the
state level. This bill creates a new article under the general
business law that makes prescription drug reimportation an unlawful
practice and provides the New York State Attorney General and the
court with certain powers for those in violation of this article.
 LEGISLATIVE HISTORY :

2013-14: S.7389 Committed to Rules

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
The ninetieth day after it shall have become a law.

2015-S439 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   439

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by Sen. GALLIVAN -- 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  consumer
  protection from prescription drug reimportation

  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 article
38-B to read as follows:
                               ARTICLE 38-B
               CONSUMER PROTECTION FROM PRESCRIPTION DRUG
                              REIMPORTATION
SECTION 830. UNLAWFUL PRACTICES.
        831. ENFORCEMENT AND PENALTIES.
  S 830. UNLAWFUL PRACTICES. IT SHALL BE UNLAWFUL FOR ANY PERSON,  FIRM,
CORPORATION  OR ASSOCIATION OR AGENT OR EMPLOYEE THEREOF TO PURCHASE FOR
RESALE, SELL, OFFER FOR SALE, OR DELIVER IN ANY MANNER, ANY PRESCRIPTION
DRUG APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION THAT  IS
EITHER:
  1.  MANUFACTURED IN THE UNITED STATES, EXPORTED FROM THE UNITED STATES
TO ANY OTHER COUNTRY, AND IMPORTED INTO THE UNITED STATES FROM ANY PLACE
OUTSIDE THEREOF IN VIOLATION OF STATE OR FEDERAL LAW; OR
  2. MANUFACTURED FOR SALE IN A COUNTRY OTHER THAN THE UNITED STATES AND
IMPORTED INTO THE UNITED  STATES  FROM  ANY  PLACE  OUTSIDE  THEREOF  IN
VIOLATION OF STATE OR FEDERAL LAW.
  S  831.  ENFORCEMENT  AND  PENALTIES.  1.  WHENEVER  THERE  SHALL BE A
VIOLATION OF THIS ARTICLE, AN APPLICATION MAY BE MADE  BY  THE  ATTORNEY
GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OR
JUSTICE  HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN INJUNC-
TION TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS;  AND  IF
IT  SHALL  APPEAR  TO  THE SATISFACTION OF THE COURT OR JUSTICE THAT THE

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

                                                           LBD01364-01-5

S. 439                              2

DEFENDANT HAS, IN FACT, VIOLATED THIS  ARTICLE,  AN  INJUNCTION  MAY  BE
ISSUED  BY  SUCH  COURT OR JUSTICE ENJOINING AND RESTRAINING ANY FURTHER
VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS,  IN  FACT,  BEEN
INJURED  OR  DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY MAKE
ALLOWANCES TO THE ATTORNEY GENERAL  AS  PROVIDED  IN  PARAGRAPH  SIX  OF
SUBDIVISION (A) OF SECTION EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRAC-
TICE  LAW  AND  RULES,  AND DIRECT RESTITUTION. WHENEVER THE COURT SHALL
DETERMINE THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED  THE  COURT  MAY
IMPOSE  A  CIVIL  PENALTY OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE
THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION. FOR THE PURPOSES  OF  THIS
SECTION,  EACH  GROUP  OF  IDENTICAL  ITEMS  SHALL  CONSTITUTE  A SINGLE
VIOLATION. IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE  ATTOR-
NEY  GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES.
  2. BEFORE ANY VIOLATION OF THIS ARTICLE IS SOUGHT TO BE ENJOINED,  THE
ATTORNEY  GENERAL SHALL BE REQUIRED TO GIVE THE PERSON AGAINST WHOM SUCH
PROCEEDING IS CONTEMPLATED NOTICE BY CERTIFIED MAIL AND  AN  OPPORTUNITY
TO SHOW IN WRITING WITHIN FIVE BUSINESS DAYS AFTER RECEIPT OF NOTICE WHY
PROCEEDINGS  SHOULD  NOT  BE  INSTITUTED  AGAINST HIM OR HER, UNLESS THE
ATTORNEY GENERAL SHALL FIND, IN ANY  CASE  IN  WHICH  HE  OR  SHE  SEEKS
PRELIMINARY  RELIEF,  THAT TO GIVE SUCH NOTICE AND OPPORTUNITY IS NOT IN
THE PUBLIC INTEREST.
  3. IN ANY SUCH ACTION IT SHALL BE A COMPLETE DEFENSE THAT THE  ACT  OR
PRACTICE  IS  SUBJECT TO AND COMPLIES WITH THE RULES AND REGULATIONS OF,
AND THE STATUES ADMINISTERED BY, THE  FEDERAL  FOOD  AND  DRUG  ADMINIS-
TRATION  OR  ANY  OFFICIAL DEPARTMENT, DIVISION, COMMISSION OR AGENCY OF
THE UNITED STATES AS SUCH RULES, REGULATIONS OR STATUES ARE  INTERPRETED
BY  THE  FEDERAL  FOOD AND DRUG ADMINISTRATION OR SUCH DEPARTMENT, DIVI-
SION, COMMISSION OR AGENCY OR THE FEDERAL COURTS.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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Senate Bill S439

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2015-S439 (ACTIVE) - Details

2015-S439 (ACTIVE) - Summary

2015-S439 (ACTIVE) - Sponsor Memo

2015-S439 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S439

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Sponsored By

Patrick M. Gallivan

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2015-S439 (ACTIVE) - Details

2015-S439 (ACTIVE) - Summary

2015-S439 (ACTIVE) - Sponsor Memo

2015-S439 (ACTIVE) - Bill Text download pdf

Comments