PRINTER'S NO. 575

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

534

Session of

2017

INTRODUCED BY COSTA, BREWSTER, SABATINA, YUDICHAK, LEACH,

TARTAGLIONE, SCHWANK, FARNESE AND DINNIMAN, MARCH 24, 2017

REFERRED TO FINANCE, MARCH 24, 2017

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," providing for addiction prevention and treatment

assessment and establishing the Opioid Addiction Prevention

and Treatment Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 4, 1971 (P.L.6, No.2), known as

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Assessment." The addiction prevention and treatment

assessment imposed under this article.

"Department." The Department of Revenue of the Commonwealth.

"Fund." The Opioid Addiction Prevention and Treatment Fund

established under section 1210-B.

"Opioid product." A pharmaceutical drug containing opiates.

"Person." An individual, unincorporated association,

company, corporation, joint stock company, group, agency,

conservator. If used in any of the provisions of this article

the corporation.

"Program." The Emergency Addiction Treatment Program

established under 35 Pa.C.S. § 8304 (relating to Emergency

Addiction Treatment Program).

"Purchase price." The total value of anything paid or

delivered, or promised to be paid or delivered, money or

otherwise, in complete performance of a sale or purchase,

without any deduction on account of any of the following:

(1) t he cost or value of:

(i) the property sold;

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(4) any other expense.

Section 1202-B. Addiction prevention and treatment assessment.

(a) Imposition of assessment.--An addiction prevention and

treatment assessment shall be paid by a person that

manufactures, produces, distributes, sells or offers to sell

opioid products in this Commonwealth. The ultimate end user of

an opioid product may not be required to pay any portion of the

assessment under this section, either directly or indirectly.

each opioid product is first sold in this Commonwealth or for

assessment shall separately state the amount of the assessment

on an invoice or other sales document.

(c) Exceptions.--The assessment may not be imposed on opioid

products that:

(1) are exported for sale and use outside this

Commonwealth; or

(2) are not subject to taxation by the Commonwealth

under any Federal law.

(d) Report and remittance of assessment.--

(1) A person that manufactures, produces, distributes,

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information listed in section 1207-B(b) for the previous

month.

(2) The assessment is due at the time the report is due.

(3) The department may require the filing of reports and

the remittance of the assessment on a less frequent basis at

its discretion.

(e) Other provisions.--Unless otherwise specifically noted,

the provisions of Article II, shall apply to the reports,

assessment imposed under this section.

Section 1204-B. Assessment.

The department may make the inquiries, determinations and

valuations of the assessment, including interest, additions and

penalties, imposed by this article.

Section 1205-B. Electronic filing.

The department may require that a report required to be filed

under this article be filed electronically.

Section 1206-B. Extension of limitation period.

Notwithstanding any other provision of this article, where,

before the expiration of the period prescribed for the

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Section 1207-B. Reports, records and inspections.

(a) Reports of shipments and receipts of opioid products

required.--The department may, at such times as it deems

necessary, require a report from a common carrier or contract

carrier who transports opioid products to any point or points

within this Commonwealth, and from any bonded warehouseman or

bailee who has in the possession of the warehouseman or bailee

any opioid products. The report shall contain the information

determines to be necessary for the administration and

sells opioid products subject to the assessment shall keep, on

an annual basis, for a period of four years, records showing for

each calendar year:

(1) The number or units and pharmaceutical name or

description of opioid products sold.

(2) The date the opioid products were sold.

(3) The name, address or other contact information, as

may be required by the department, of the person to whom the

opioid products were initially sold.

(4) The purchase price charged to the initial buyer for

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premises and equipment of any person in order to verify the

accuracy of the payment of the assessment imposed by this

article. The person subject to an inspection shall give to the

department or its duly authorized representative the means,

facilities and opportunity for the inspection.

Section 1208-B. Information exchange.

The department is authorized to exchange information with any

other Federal, State or local enforcement agency for purposes of

Section 1209-B. Fines and penalties.

(2) If a person willfully files a false or fraudulent

report with the intent to evade the assessment, the amount of

the assessment due may be imposed and collected by the

department at any time.

(b) Failure to furnish information, returning false

information or failure to permit inspection.--

(1) A person who fails to keep or make a record, report,

inventory or statement or keeps or makes any false or

fraudulent record, report, inventory or statement required by

this article commits a misdemeanor and shall, upon

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sentenced to pay a fine of $500 or to imprisonment for not

more than one year, or both.

(c) Penalties.--

(1) A person who sells an opioid product for which the

proper assessment has not been paid commits a summary offense

and shall, upon conviction, be sentenced to pay a fine of not

less than $100 nor more than $1,000 or to imprisonment for

not more than 60 days, or both.

intentionally or willfully, with intent to evade the payment

(3) In addition to the penalties prescribed in

paragraphs (1) and (2), if a person fails to file the report

required under section 1202-B(d) or fails to pay the

assessment, the department may impose an administrative

penalty equal to the amount of the assessment not paid. The

penalty shall be added to the assessment not paid and imposed

and collected at the same time and in the same manner as the

assessment.

(d) Failure to electronically file.--A person who fails to

electronically file a report or other information that the

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penalty imposed under subsection (c)(3). The criminal penalty

for failure to file a report electronically shall be the same as

the criminal penalty for failure to furnish information or file

a report under subsection (b)(1).

(e) Fines and penalties payable to department.--All fines

and penalties imposed and collected under the provisions of this

article shall be payable to the Commonwealth and appropriated to

the department to be used in carrying out its duties under this

Section 1210-B. Fund.

in this section.

(b) Distributions.--Money in the fund shall be distributed

quarterly as follows:

(1) Fifty-five percent to the Department of Drug and

Alcohol Programs to fund the implementation and

administration of the program.

(2) Five percent to the Department of Drug and Alcohol

Programs for grants for the purchase of naloxone for local

police and first responders and the provision of training on

the use of naloxone.

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drug and alcohol addiction.

(iii) Establishment and maintenance of procedures to

ensure the transition of overdose survivors to addiction

treatment programs.

(4) Five percent to the department to fund the

activities under 35 Pa.C.S. Ch. 83 (relating to emergency

addiction treatment).

(5) Four percent to the department to fund its other

(6) Seven and one-half percent to the Department of

Drug Addiction Counselor Loan Forgiveness Program as provided

for under the act of , (P.L. , No. ), known

as the Alcohol and Drug Addiction Counselor Loan Forgiveness

Program Act.

(8) One percent to the Department of Health to be used

exclusively for prescription drug monitoring under the act of

October 27, 2014 (P.L.2911, No.191), known as the Achieving

Better Care by Monitoring All Prescriptions Program (ABC-MAP)

Act.

(c) Other funding.--Money distributed from the fund shall be

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