§ 111 — Investigation by the superintendent with respect to prescription drugs

New York § 111

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 1: General Provisions

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§ 111. Investigation by the superintendent with respect to\nprescription drugs. (a) Whenever it shall appear to the superintendent,\neither upon complaint or otherwise, that in the advertisement, purchase\nor sale within this state of any prescription drug, which is\ncontemplated to be paid by a policy approved by the department for\noffering within the state, has increased over the course of any twelve\nmonths by more than fifty percent to an amount greater than five dollars\nper unit and if it is suspected that any person, partnership,\ncorporation, company, trust or association, or any agent or employee\nthereof, shall have employed, or employs, or is about to employ any\ndevice, scheme or artifice to defraud or for obtaining money or property\nby means of any false pretense, representation or promise, or that any\nperson, partnership, corporation, company, trust or association, or any\nagent or employee thereof, shall have made, makes or attempts to make\nwithin or from this state or shall have engaged in or engages in or is\nabout to engage in any practice or transaction or course of business\nrelating to the purchase, exchange, or sale of prescription drugs which\nis fraudulent or in violation of law and which has operated or which\nwould operate as a fraud upon the purchaser, or that any agent or\nemployee thereof, has sold or offered for sale or is attempting to sell\nor is offering for sale any prescription drug for which the price has\nincreased fifty percent over the prior calendar year to an amount\ngreater than five dollars per unit, and the superintendent believes it\nto be in the public interest that an investigation be made, he or she\nmay in their sole discretion either require or permit such person,\npartnership, corporation, company, trust or association, or any agent or\nemployee thereof, to file with the department a statement in writing\nunder oath or otherwise as to all the facts and circumstances concerning\nthe price increase which he or she believes it to be in the public\ninterest to investigate, and for that purpose may prescribe forms upon\nwhich such statements shall be made. The superintendent may also require\nsuch other data and information as he or she may deem relevant and may\nmake such special and independent investigations as he or she may deem\nnecessary in connection with the matter.\n (b) In addition to any other power granted by law, the superintendent,\nhis or her deputy or other officer designated by the superintendent is\nempowered to subpoena witnesses, compel their attendance, examine them\nunder oath and require the production of any books or papers which he or\nshe deems relevant or material to the inquiry. Such power of subpoena\nshall be enforced as though the subpoena were issued under section three\nhundred six of the financial services law.\n (c) If any person, partnership, corporation, company, trust or\nassociation, fails to submit a written statement required by the\nsuperintendent under subsection (a) of this section or fails to comply\nwith a subpoena issued pursuant to subsection (b) of this section, the\nsuperintendent may, after notice and a hearing, levy a civil penalty not\nto exceed to one thousand dollars per day that the failure continues.\n (d) Notwithstanding any law to the contrary, any information obtained\nin an investigation under this section shall be confidential and shall\nnot be subject to disclosure by the department except to the drug\naccountability board, which may review the information and, as\nnecessary, include any such information in its report. The\nsuperintendent may also disclose any such information necessary to\nprotect the public, but such disclosures shall to the greatest extent\npossible not identify a specific manufacturer or prices charged for\ndrugs by such manufacturer.\n