AZ SB1797

Prohibits manufacturers and wholesale distributors from engaging in "price gouging" on essential off-patent or generic drugs, defined as unconscionable price increases not justified by production costs or public health access expansion.

Covers prescription drugs that appear on the WHO essential medicines list or are designated essential by HHS, have expired patents/marketing rights, are sold by three or fewer manufacturers, and are available in Arizona.

Allows the state Medicaid program (AHCCCS) to notify the Attorney General when essential drug prices increase by 50% or more within one year and cost exceeds $80 for a 30-day supply or full treatment course.

Authorizes the Attorney General to require manufacturers to submit itemized cost statements within 45 days explaining price increases, and to subpoena relevant records.

Permits courts to impose civil penalties up to $10,000 per violation, order consumer refunds, and require manufacturers to sell to Medicaid participants at pre-violation prices for up to one year.