Relates to establishing the "340B prescription drug anti-discrimination act"; prohibits pharmaceutical manufacturers and pharmacy benefit managers from discriminating against covered entities and New York state pharmacies based on participation in the drug discount program authorized by section 340B of the federal public health service act.
STATE OF NEW YORK
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8992
IN SENATE
April 8, 2024
___________
Introduced by Sen. RIVERA -- 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:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "340B prescription drug anti-discrimination act".
3 § 2. The public health law is amended by adding a new section 280-d to
4 read as follows:
5 § 280-d. Prescription drug discrimination prohibited. 1. Definitions.
6 (a) "340B program" shall mean the drug discount program authorized by
7 section 340B of the federal public health service act (42 U.S.C. §
8 256b).
9 (b) "Covered entity" shall have the same meaning as is set forth in
10 section 340B(a)(4) of the federal public health service act (42 U.S.C. §
11 256b).
12 (c) "Contract pharmacy" shall include New York state pharmacies that
13 receive drugs purchased under a contract pharmacy arrangement with a
14 covered entity.
15 (d) "Dispensing" shall include a pharmacy's entire distribution proc-
16 ess, including, but not limited to, the ordering, purchasing, deliver-
17 ing, receipt, and sale of drugs.
18 (e) "Pharmacy" shall have the same meaning as is set forth in section
19 sixty-eight hundred two of the education law.
20 2. Prohibition of discriminatory practice. No pharmaceutical manufac-
21 turer, pharmacy benefit manager, wholesaler, outsourcing facility, or
22 third-party logistics provider shall:
23 (a) deny, prohibit, condition, or otherwise limit the dispensing of
24 drugs from a covered entity or contract pharmacy, other than such limi-
25 tations explicitly identified or explicitly authorized either under
26 section 340B of the federal public health service act (42 U.S.C. §
27 256b), or any regulations promulgated pursuant to such statute;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11664-03-4
S. 8992 2
1 (b) deny access to drugs manufactured by a pharmaceutical manufacturer
2 to a covered entity or contract pharmacy based on such covered entity's
3 or contract pharmacy's participation in the 340B program; or
4 (c) impose requirements, exclusions, reimbursement terms, fees,
5 audits, claim identification, or other conditions on a covered entity or
6 contract pharmacy that differ from the requirements, exclusions,
7 reimbursement terms, fees, audits, claim identification, or other condi-
8 tions applied to entities that do not participate in the 340B program,
9 other than such limitations explicitly identified or explicitly author-
10 ized either under section 340B of the federal public health service act
11 (42 U.S.C. § 256b), or any regulations promulgated pursuant to such
12 statute.
13 3. Enforcement. (a) Any provision of a contract that is contrary to
14 this act shall be void and unenforceable.
15 (b) The commissioner shall have the authority to impose a civil mone-
16 tary penalty pursuant to section twelve of this chapter on any entity
17 that violates the provisions of this act.
18 (c) The commissioner shall refer any matters in which a civil monetary
19 penalty is being imposed to the education department and the office of
20 the attorney general for review.
21 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
22 sion, section or part of this act shall be adjudged by any court of
23 competent jurisdiction to be invalid, such judgment shall not affect,
24 impair, or invalidate the remainder thereof, but shall be confined in
25 its operation to the clause, sentence, paragraph, subdivision, section
26 or part thereof directly involved in the controversy in which such judg-
27 ment shall have been rendered. It is hereby declared to be the intent of
28 the legislature that this act would have been enacted even if such
29 invalid provisions had not been included herein.
30 § 4. This act shall take effect immediately.
