What's happening
This bill creates an interstate compact to award financial prizes for cures to major diseases, incentivizing research and development through a multi-state commission.
Why it matters
Creates a multistate commission with broad powers to select, evaluate, and award substantial, multi-year financial prizes for cures to at least ten major diseases, with prize amounts tied to the projected five-year public health savings for each disease. This means the financial incentive is directly linked to the economic and health impact of a cure, potentially making the rewards much larger than typical research grants or current patent profits.
Mandates that to claim a prize, the winning researcher or company must transfer all relevant intellectual property for the cure to the commission, which is then responsible for making the cure widely available at cost (plus limited royalties outside member states). This could dramatically shift how life-saving treatments are commercialized, prioritizing broad, affordable access over traditional exclusivity and profit models.
Establishes a standardized, regularly updated set of ethical research standards based on the strictest state or federal laws, which all prize-claimants must follow. This makes the compact a potential driver for higher ethical standards in medical research, regardless of where the research is conducted.
Imposes binding financial obligations on member states to contribute annual payments based on their actual health care savings once a cure is available, with mechanisms for borrowing, dispute resolution, transparency, and accountability built in. This model tries to ensure sustainability and fairness in funding, but also creates enforceable financial commitments for states that could impact future budgets and policy decisions.
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Who cares
Headline styles
Reward Cures for Diseases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to health
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prize Money for Curing Diseases
In Assembly Committee · Health · Sponsor Richard Gottfried
Full text
12 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7770
IN SENATE
February 18, 2020
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 adopting the solemn covenant of the states to award prizes for curing diseases interstate compact
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public health law is amended by adding a new article 49-A to read as follows:
ARTICLE 49-A
SOLEMN COVENANT OF THE STATES TO AWARD PRIZES FOR CURING DISEASES
Section 4999. Definitions.
4999-a. Establishment of the commission; membership.
4999-b. Powers of the commission.
4999-c. Meetings and voting.
4999-d. Bylaws.
4999-e. Rules.
4999-f. Committees.
4999-g. Finance.
4999-h. Records.
4999-i. Compliance.
4999-h. Records.
4999-j. Venue.
4999-k. Qualified immunity, defense, and indemnification.
4999-l. Compacting states, effective date, and amendment.
4999-m. Withdrawal, default, and expulsion.
4999-n. Severability and construction.
4999-o. Binding effect of compact and other laws.
§ 4999. Definitions. For purposes of this article:
1. "Compacting state" means either of the following:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15088-01-0
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a. Any state that has enacted the compact and which has not withdrawn or been suspended pursuant section forty-nine hundred ninety-nine-m of this article;
b. The federal government in accordance with the commission's bylaws.
2. "Compact" means the solemn covenant of the states to award prizes for curing diseases enacted in this article.
3. "Non-compacting state" means any state or the federal government, if it is not at the time a compacting state.
4. "Public health expenses" means the amount of all costs paid by taxpayers in a specified geographic area relating to a particular disease.
5. "State" means any state, district, or territory of the United States of America.
§ 4999-a. Establishment of the commission; membership. 1. Upon the enactment of the compact by six states, the compacting states shall establish the Solemn Covenant of States Commission.
2. The commission is a body corporate and politic and an instrumentality of each of the compacting states and is solely responsible for its liabilities, except as otherwise specifically provided in the compact.
3. Each compacting state shall be represented by one member as selected by the compacting state. Each compacting state shall determine its member's qualifications and period of service and shall be responsible for any action to remove or suspend its member or to fill the member's position if it becomes vacant. Nothing in the compact shall be construed to affect a compacting state's authority regarding the qualification, selection, or service of its own member.
§ 4999-b. Powers of the commission. 1. To adopt bylaws and rules pursuant to sections forty-nine hundred ninety-nine-d and forty-nine hundred ninety-nine-c of this article, which shall have the force and effect of law and shall be binding in the compacting states to the extent and in the manner provided in the compact;
2. To receive and review in an expeditious manner treatments and therapeutic protocols for the cure of disease submitted to the commission and to award prizes for submissions that meet the commission's standards for a successful cure treatment or therapeutic protocol;
3. To make widely available a cure treatment or therapeutic protocol upon a prize winner claiming a prize and transferring any intellectual property necessary for the manufacture and distribution of the cure in accordance with subdivision three of section forty-nine hundred ninetynine-e of this article, including by arranging or contracting for the manufacturing, production, or provision of any drug, serum, or other substance, device, or process, provided that the commission does not market the cure or conduct any other activity regarding the cure not specifically authorized in the compact;
4. To establish a selling price for the cure, which shall be not more than the expenses for the cure's manufacturing, distribution, licensing, and any other necessary governmental requirements for compacting states, or those expenses plus any royalty fees, for noncompacting states; the price shall not include the expenses of any other activities;
5. In non-compacting states and foreign countries, to establish and collect royalty fees imposed on manufacturers, producers, and providers of any drug, serum, or other substance, device, or process used for a cure treatment or therapeutic protocol, for which a prize is awarded; royalty fees may be added to the sales price of the cure pursuant to subdivision four of this section; provided that the royalty fees shall cumulatively be not more than the estimated five-year savings in public
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health expenses for that state or country, as calculated by actuaries employed or contracted by the commission;
6. To do the following regarding the collected royalty fees:
a. Pay or reimburse expenses related to the payment of a prize, which shall include employing or contracting actuaries to calculate annual taxpayer savings amounts in compacting states in accordance with subdivision three of section forty-nine hundred ninety-nine-e of this article, and payment of interest and other expenses related to a loan obtained in accordance with subdivision three of section forty-nine hundred ninety-nine-e of this article;
b. Annually disburse any amounts remaining after making payments or reimbursements under paragraph a of this subdivision as refunds to compacting states based on the per cent of the state's prize obligation in relation to the total obligation amount of all compacting states;
7. To bring and prosecute legal proceedings or actions in its name as the commission;
8. To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence;
9. To establish and maintain offices;
10. To borrow, accept, or contract for personnel services, including personnel services from employees of a compacting state;
11. To hire employees, professionals, or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of the compact, and determine their qualifications; and to establish the commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation, and qualifications of personnel;
12. To accept any and all appropriate donations and grants of money, equipment, supplies, materials, and services, and to receive, utilize, and dispose of the same; provided that at all times the commission shall strive to avoid any appearance of impropriety;
13. To lease, purchase, or accept appropriate gifts or donations of, or otherwise to own, hold, improve, or use, any property, real, personal, or mixed; provided, that at all times the commission shall strive to avoid any appearance of impropriety;
14. To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, real, personal, or mixed;
15. To monitor compacting states for compliance with the commission's bylaws and rules;
16. To enforce compliance by compacting states with the commission's bylaws and rules;
17. To provide for dispute resolution among compacting states or between the commission and those who submit treatments and therapeutic protocols for the cure of disease for consideration;
18. To establish a budget and make expenditures;
19. To borrow money;
20. To appoint committees, including management, legislative, and advisory committees comprised of members, state legislators or their representatives, medical professionals, and such other interested persons as may be designated by the commission;
21. To establish annual membership dues for compacting states, which shall be used for daily expenses of the commission and not for interest or prize payments;
22. To adopt and use a corporate seal;
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23. To perform such other functions as may be necessary or appropriate to achieve the purposes of this article.
§ 4999-c . Meetings and voting. 1. The commission shall meet and take such actions as are consistent with the compact, bylaws, and rules.
2. A majority of the members of the commission shall constitute a quorum necessary in order to conduct business or take actions at meetings of the commission.
3. Each member of the commission shall have the right and power to cast one vote regarding matters determined or actions to be taken by the commission. Each member shall have the right and power to participate in the business and affairs of the commission.
4. A member shall vote in person or by such other means as provided in the commission's bylaws. The commission's bylaws may provide for members' participation in meetings by telephone or other means of communication.
5. The commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the commission's bylaws.
6. No decision of the commission with respect to the approval of an award for a treatment or therapeutic process for the cure of a disease shall be effective unless two-thirds of all the members of the commission vote in favor thereof.
7. Guidelines and voting requirements for all other decisions of the commission shall be established in the commission's bylaws.
§ 4999-d. Bylaws. The commission shall, by a majority vote of all the members of the commission, prescribe bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of the compact, including, but not limited to:
1. establishing the fiscal year of the commission;
2. providing reasonable procedures for appointing and electing members, as well as holding meetings, of the management committee;
3. providing reasonable standards and procedures:
a. for the establishment and meetings of other committees;
b. governing any general or specific delegation of any authority or function of the commission; and
c. voting guidelines and procedures for commission decisions.
4. providing reasonable procedures for calling and conducting meetings of the commission that shall consist of requiring a quorum to be present, ensuring reasonable advance notice of each such meeting and providing for the right of citizens to attend each such meeting with enumerated exceptions designed to protect the public's interest and the privacy of individuals.
5. providing a list of matters about which the commission may go into executive session and requiring a majority of all members of the commission vote to enter into such session. As soon as practicable, the commission shall make public:
a. a copy of the vote to go into executive session, revealing the vote of each member with no proxy votes allowed; and
b. the matter requiring executive session, without identifying the actual issues or individuals involved.
6. establishing the titles, duties, authority, and reasonable procedures for the election of the officers of the commission;
7. providing reasonable standards and procedures for the establishment of the personnel policies and programs of the commission. Notwithstanding any civil service or other similar laws of any compacting state, the
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commission's bylaws shall exclusively govern the personnel policies and programs of the commission;
8. allowing a mechanism for:
a. the federal government to join as a compacting state; and
b. foreign countries or subdivisions of those countries to join as liaison members by adopting the compact; provided that adopting countries or subdivisions shall not have voting power or the power to bind the commission in any way.
9. adopting a code of ethics to address permissible and prohibited activities of members and employees;
10. providing for the maintenance of the commission's books and records;
11. governing the acceptance of and accounting for donations, annual member dues, and other sources of funding and establishing the proportion of these funds to be allocated to prize amounts for treatments and therapeutic protocols that cure disease;
12. governing any fundraising efforts in which the commission wishes to engage; and
13. providing a mechanism for winding up the operations of the commission and the equitable disposition of any surplus funds that may exist after the termination of the compact after the payment and reserving of all its debts and obligations.
§ 4999-e. Rules. 1. The commission shall adopt rules to do the following:
a. effectively and efficiently achieve the purposes of this article;
b. govern the methods, processes, and any other aspect of the research, creation, and testing of a treatment or therapeutic protocol for each disease for which a prize may be awarded.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
Summary of provisions
Section one of the bill creates a new article 49-A of the public health law entitled the Solemn Covenant of the States to Award Prizes for Curing Diseases establishing the interstate compact language. It includes definitions, establishment of the Commission once six states adopt the compact and the powers and responsibilities of the Commission which is charged with, among other things, reviewing treatments and therapeutic protocols for the cure of disease submitted to the Commis- sion and to award 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 establishes a process by which a state may with- draw or be reinstated, as well as for expulsion of a compact state which has defaulted on its obligations or responsibilities under the compact.
Section two provides an effective date.
Read the full memo (781 words)
Justification
This bill, known as the Cure Bill, is an ingenious proposal which 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 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 time we cured a major disease was Polio in 1955. Clear- ly, the current incentives are for companies to discover treatments, not cures, because treatments involve years of drugs and treatments and thus reap much larger benefits than cures. Even government and charity fund- ing aimed at disease has not produced results. For example, despite the War on Cancer the federal government declared in 1971, there have been no cures for cancer which continues to be one of the leading causes 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 6 states must join the compact before it goes into effect, so the prize money would be many billions of dollars. Member states, howev- er, are not on the hook for the paying out all 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 cheaply. These states will no longer be paying the costs of treatment for the disease or diseases through their public health programs, thus saving money. Non- compact states and even nations will pay a royalty to offset expenses allowing those states that joined the compact to recoup their initial investment. It is truly a win-win, especially for those states who join the compact and for all those individuals and their families suffering from illnesses for which a cure may be found.
This legislation, if passed, would have New York join other states at the ground level and enhance its status as an "owner" of cures developed as a result of the rewards 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 should immediately adopt this legis- lation 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 with fellow states and be an innovator by changing the current paradigm of health care research and incentivize the development and FDA approval of cures rather than treat- ments. There is nothing to lose. If no cure is found, states pay noth- ing. At worst, we see huge economic activity as the potential prize encourages investments in research toward cures. At best, we will finally discover cures which will benefit all of humanity.
History
New Bill.
Fiscal
Potential savings as New York joins other states in encouraging cures which 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.