BILL NUMBER: S351
SPONSOR: RIVERA
 
TITLE OF BILL:
An act to amend the public health law, in relation to adopting the
solemn covenant of the states to award prizes for curing diseases inter-
state compact
 
PURPOSE:
Adopts the solemn covenant of the states to award prizes for curing
diseases through an interstate compact.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 creates a new article 49-B of the Public Health Law, as it
relates to an interstate compact to award prizes for curing diseases,
and titles the new Article 49-A Solemn Covenant of the States to Award
Prizes for Curing Diseases. For the purpose of the bill, the terms
compacting state, compact, non-compacting state, and state are defined.
This section also establishes the rules and bylaws of the compact and
establishes the powers and duties of the commission. The powers and
responsibilities of the commission include reviewing treatments and
therapeutic protocols for the cure of diseases submitted to the commis-
sion and awarding prizes for submissions that meet the commission's
standards for a successful treatment. This section also provides for
committees of the commission to be established once twenty-six states
enact the compact and establish a process by which a state may withdraw
or be reinstated, as well as for the expulsion of a compact state that
has defaulted on its obligations or responsibilities under the compact.
Section 2 provides an effective date.
 
JUSTIFICATION:
This bill, known as the Cure Bill, is an ingenious proposal that creates
a new multi-state compact that would offer billions of dollars in cash
prizes to those who develop actual cures for major diseases like cancer,
Parkinson's disease, or Alzheimer's that are identified by the compact
based on severity and cost.
Amazingly, despite huge advances in technology and spending on health
care, the last major disease cured was Polio in 1955. Clearly, the
current incentives are for companies to discover treatments, not cures,
because treatments involve years of drugs and therapies and thus reap
much larger financial benefits than cures. Even government and charity
funding aimed at disease has not produced results. For example, despite
the War on Cancer declared by the federal government in 1971, there have
been no cures for cancer, which continues to be one of the leading caus-
es of death. We need incentives beyond basic science that government
funding provides to get human trials of that science. The Cure Bill aims
to change the current state of affairs by enticing venture capitalists
with huge prize money to seek cures. The funding would represent the
savings member states realize in their public health care spending over
a five-year period as a result of the cure.
At least six states must join the compact before it goes into effect, so
the prize money would amount to many billions of dollars. However,
member states are not on the hook for paying out all of that money
before they realize the savings from the cure. Instead, the compact
would borrow the money to pay the prize and take ownership of the patent
for the cure which they could then mass produce and distribute afford-
ably. These states will no longer be paying the costs of treatment for
the disease or diseases through their public health programs, thus
saving money. Noncompact states and even nations will pay a royalty for
the cure to offset expenses, allowing those states that joined the
compact to recoup their initial investment. It is truly a win-win, espe-
cially for those states that join the compact and for all those individ-
uals and their families suffering from illnesses for which a cure could
be found.
If passed, this legislation would allow New York to join other states at
the ground level and enhance its status as an "owner" of cures developed
as a result of the incentives offered by the compact. In 2019, Ohio
became the first state to adopt the compact legislation. Since then,
several other states have introduced compact legislation and begun to
make progress toward adoption. New York State should immediately adopt
this legislation to join the compact.
For far too long, New Yorkers and their families have suffered from
debilitating, often life-threatening illnesses. The Cure Bill provides
an opportunity for New York State to join fellow states and be an inno-
vator by changing the current paradigm of healthcare research and incen-
tivizing the development and FDA approval of cures rather than treat-
ments. There is nothing to lose. If no cure is found, states pay
nothing. At worst, we see huge economic activity as the potential prize
encourages investments in research toward cures. At best, we will
finally discover cures that will benefit all of humanity.
 
LEGISLATIVE HISTORY:
2019-2020: S7770/A10429 Gottfried
2021-2022: S2123/A220 Gottfried
2023-24: S2868/ A7210 Kim
 
FISCAL IMPLICATIONS:
Potential savings as New York joins other states in encouraging cures
that lower health care spending on treatments such as maintenance medi-
cations and ongoing care.
 
EFFECTIVE DATE:
Immediately, provided the compact becomes effective and binding upon
enactment of the compact legislation by six states.