Regular Session 2015-2016 House Bill 1511 P.N. 2140

PRINTER'S NO. 2140

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1511

Session of

2015

INTRODUCED BY DiGIROLAMO, ACOSTA, PASHINSKI, MURT, KINSEY,

ROZZI, TAYLOR, CALTAGIRONE, DRISCOLL, O'BRIEN, McNEILL,

HARHAI, MAHONEY, W. KELLER, GODSHALL, SCHWEYER, READSHAW,

FARRY, WATSON, REGAN, DEAN AND SNYDER, AUGUST 26, 2015

REFERRED TO COMMITTEE ON HUMAN SERVICES, AUGUST 26, 2015

AN ACT

Amending Title 35 (Health and Safety) of the Pennsylvania

Consolidated Statutes, providing for emergency addiction

treatment; imposing powers and duties on the Department of

Drug and Alcohol Programs; establishing the Emergency

Addiction Treatment Program and the Opioid Reparation and

Accountability Fund; and imposing fines and penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 35 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 83

EMERGENCY ADDICTION TREATMENT

Subchapter

A. Preliminary Provisions

B. Program

C. Administration

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

8301. Short title of chapter.

8302. Declaration of policy.

8303. Definitions.

§ 8301. Short title of chapter.

This chapter shall be known and may be cited as the Emergency

Addiction Treatment Act.

§ 8302. Declaration of policy.

The General Assembly finds and declares as follows:

(1) More than 219,000,000 prescriptions for opioid

painkillers were written in the United States in 2014.

(2) Sales of opioid painkillers generated more than

$11,000,000,000 in revenue in 2009 and are expected to grow

to more than $15,000,000,000 in 2016.

(3) This Commonwealth is in the middle of a major drug

epidemic, primarily driven by opioid painkillers and heroin.

(4) In 2013, there were more than 2,525 drug overdose

deaths in this Commonwealth.

(5) Heroin-related admissions to addiction treatment

programs in this Commonwealth increased by 17% in 2014. The

heroin problem is being driven by prescription drug

addiction.

(6) The widespread availability, overmarketing and

overprescribing of opioid painkillers have resulted in

increases in overdose deaths, emergency room admissions,

admissions to addiction treatment programs and crime, all of

which adversely impact State and local budgets.

(7) State and county funding for addiction treatment

programs is insufficient to handle the increased demand for

addiction treatment.

§ 8303. Definitions.

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The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Department." The Department of Drug and Alcohol Programs of

the Commonwealth.

"Fund." The Opioid Reparation and Accountability Fund

established under section 8306 (relating to fund).

"Impact fee." The opioid reparation and accountability

impact fee established under section 8305 (relating to impact

fee).

"Opioid products." Pharmaceutical drugs containing opiates.

"Person." An individual, unincorporated association,

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

syndicate, trust, trustee, receiver, fiduciary, partnership or

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

prescribing or imposing penalties, the term, as applied to a

partnership, unincorporated association or other joint venture,

shall mean the partners or members of the partnership,

unincorporated association or other joint venture, and as

applied to a corporation, shall mean each officer and director

of the corporation.

"Program." The Emergency Addiction Treatment Program

established in section 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 the cost or value of the

property sold, cost or value of transportation, cost or value of

labor service, interest or discount paid or allowed after the

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sale is consummated, any tax imposed by the Commonwealth or any

other expense.

SUBCHAPTER B

PROGRAM

Sec.

8304. Emergency Addiction Treatment Program.

8305. Impact fee.

8306. Fund.

§ 8304. Emergency Addiction Treatment Program.

(a) Establishment.--The Emergency Addiction Treatment

Program is established in the Department of Drug and Alcohol

Programs to provide addiction treatment in licensed long-term

residential addiction treatment facilities, including licensed

halfway houses, for individuals who are unable to obtain timely

or appropriate treatment, as determined by the department and to

establish such treatment facilities. The program shall be

administered by the department.

(b) Powers and duties of department.--In order to provide

individuals seeking assistance with better and more timely

access to drug and alcohol addiction treatment, the department

shall:

(1) Maintain a toll-free telephone number to assist

individuals seeking help for drug and alcohol problems. The

telephone number shall be posted on the department's publicly

accessible Internet website and shall be posted or published

by the department in such other media as the department

determines is necessary to reach as many individuals as

possible.

(2) Provide assistance in accessing addiction treatment.

The department may provide this service by contract.

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(3) Develop and maintain a database identifying problems

and patterns in accessing appropriate addiction treatment.

(4) Prepare an annual report to the General Assembly on

the activities described in paragraphs (1), (2) and (3),

including recommendations for improving access to addiction

treatment. The report shall be posted on the department's

publicly accessible Internet website.

the Legislative Reference Bureau for publication in the

Pennsylvania Bulletin guidelines for the implementation of the

program established under section 8306(b) (relating to fund) and

to govern the eligible use of such funds by counties and other

entities or persons that provide addiction treatment services to

individuals in licensed long-term residential addiction

treatment facilities, including halfway houses.

§ 8305. Impact fee.

(a) Imposition of fee.--An opioid reparation and

accountability impact fee 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 shall not be required to pay any portion of

the impact fee assessed under this section, either directly or

indirectly.

(b) Assessment of impact fee.--The impact fee shall be

assessed at the time an opioid product is first sold in this

Commonwealth or for use in this Commonwealth at the rate of 10%

of the purchase price charged to the initial buyer of the opioid

product. The impact fee shall be paid by the person selling the

opioid product to the initial buyer and remitted to the

Department of Revenue. A person required to remit the fee shall

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separately state the amount of the fee on an invoice or other

sales document.

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 impact fee.--

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

sells or offers to sell opioid products in this Commonwealth

or for use in this Commonwealth shall file monthly reports

with the Department of Revenue by the 20th day of each

calendar month commencing with the second calendar month

following the effective date of this chapter. The report

shall contain the information listed in section 8311(b)

(relating to reports, records and inspection) for the

previous month.

(2) The impact fee is due at the time the report is due.

(3) The Department of Revenue may require the filing of

reports and the remittance of the impact fee on a less

frequent basis at its discretion.

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

the provisions of Article II of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, shall apply to the

reports, payments, penalties, enforcement, collections and

appeals of the impact fee imposed by this section.

§ 8306. Fund.

(a) Establishment.--The Opioid Reparation and Accountability

Fund is established in the State Treasury. The Department of

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Revenue shall deposit the impact fee remitted under section 8305

(relating to impact fee) into the fund. Money in the fund shall

not lapse and shall be appropriated on a continuing basis to the

department for the purposes set forth in this section.

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

quarterly as follows:

(1) Fifty-five percent to the department to fund the

implementation and administration of the program. The

department shall disperse funds through contract, grant or

application by single county authorities on drugs and alcohol

created under the act of April 14, 1972 (P.L.221, No.63),

known as the Pennsylvania Drug and Alcohol Abuse Control Act,

or licensed addiction treatment programs or individuals

seeking treatment services described in section 8304(a)

(relating to Emergency Addiction Treatment Program).

(2) Thirty-seven percent to counties to fund the

following:

(i) The purchase of naloxone for local police and

first responders and the provision of training on the use

of naloxone.

(ii) Drug and alcohol addiction counseling in county

jails.

(iii) Costs to the criminal justice system related

to drugs and alcohol addiction.

(iv) Establishment and maintenance of procedures to

ensure the transition of overdose survivors to addiction

treatment programs.

(3) Four percent to the department to fund the

activities under section 8304(b).

(4) Three percent to the department to fund the other

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responsibilities under this chapter.

(5) 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.

used to supplement, and not to replace, other funding for drug

and alcohol addiction treatment programs in this Commonwealth.

SUBCHAPTER C

ADMINISTRATION

Sec.

8307. Powers and duties of Department of Revenue and

administration.

8308. Assessment.

8309. Electronic filing.

8310. Extension of limitation period.

8311. Reports, records and inspections.

8312. Information exchange.

8313. Fines and penalties.

§ 8307. Powers and duties of Department of Revenue and

administration.

The administration of this chapter relating to the imposition

and collection of the impact fee, including enforcement, is

vested in the Department of Revenue. The Department of Revenue

shall adopt rules and regulations for the enforcement of its

obligations under this chapter.

§ 8308. Assessment.

The Department of Revenue is authorized to make the

inquiries, determinations and assessments of the impact fee,

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including interest, additions and penalties, imposed by this

chapter.

§ 8309. Electronic filing.

The Department of Revenue may, at its discretion, require

that any or all reports that are required to be filed under this

chapter be filed electronically.

§ 8310. Extension of limitation period.

Notwithstanding any other provision of this chapter, where,

before the expiration of the period prescribed for the

assessment of the impact fee, a person has consented in writing

that the period be extended, the amount of the impact fee due

may be assessed by the Department of Revenue at any time within

the extended period. The period so extended may be extended

further by subsequent consents in writing made before the

expiration of the extended period.

§ 8311. Reports, records and inspections.

(a) Reports of shipments and receipts of opioid products

required.--The Department of Revenue may, in its discretion and

at such times as it deems necessary, require a report from any

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 concerning shipments of opioid

products that the Department of Revenue determines to be

necessary for the administration and enforcement of this

chapter. All common carriers and contract carriers, bailees and

warehousemen shall permit the examination by the Department of

Revenue or its authorized agents of any records relating to the

shipment or receipt of opioid products.

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(b) Records of manufacturers and wholesalers.--A person who

sells opioid products subject to the impact fee 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 Revenue, of the person

to whom the opioid products were initially sold.

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

each unit of opioid products sold.

(5) The place to which the opioid products were shipped.

(6) The name of the common carrier or contract carrier.

inspect the books and records, the stock of opioid products and

the premises and equipment of any person in order to verify the

accuracy of the payment of the impact fee imposed by this

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

Department of Revenue or its duly authorized representative the

means, facilities and opportunity for the inspection.

§ 8312. Information exchange.

The department is authorized to exchange information with any

other Federal, State or local enforcement agency for purposes of

administering and enforcing this chapter.

§ 8313. Fines and penalties.

(a) Collection of impact fee.--

(1) The amount of the impact fee due and not remitted in

accordance with section 8305(d) (relating to impact fee) may

be assessed and collected by the Department of Revenue at any

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time whenever transactions subject to the impact fee are not

reported.

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

report with the intent to evade the impact fee imposed by

this chapter, the amount of the impact fee due may be

assessed and collected by the Department of Revenue 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 any record,

report, inventory or statement or keeps or makes any false or

fraudulent record, report, inventory or statement required by

this chapter commits a misdemeanor and shall, upon

conviction, be sentenced to pay a fine of $500 or to

imprisonment for not more than one year, or both.

(2) A person who willfully refuses to cooperate with or

permit an inspection to the satisfaction of the Department of

Revenue commits a misdemeanor and shall, upon conviction, be

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

more than one year, or both.

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

proper impact fee 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.

(2) A person who falsely or fraudulently, maliciously,

intentionally or willfully, with intent to evade the payment

of the impact fee imposed under section 8305, sells an opioid

product for which the proper impact fee has not been paid

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commits a felony and shall, upon conviction, be sentenced to

pay a fine of not more than $15,000 or to imprisonment for

not more than five years, or both.

(3) In addition to the penalties prescribed in

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

required by section 8305(d) or fails to pay the impact fee

assessed under section 8305(b), the Department of Revenue may

impose an administrative penalty equal to the amount of the

impact fee not paid. The penalty shall be added to the impact

fee not paid and assessed and collected at the same time and

in the same manner as the impact fee.

(d) Failure to electronically file.--Failure to

electronically file any report or other information the

Department of Revenue may direct to be filed electronically

shall subject the person required to submit the report or other

information to a penalty of 5% of the impact fee due on the

report, up to a maximum of $1,000, but not less than $10. This

penalty may be assessed at any time and collected in the manner

provided in this chapter. This penalty shall be in addition to

any administrative penalty imposed under this chapter for

failure to furnish information or file a report. 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 this chapter.

(e) Fines and penalties payable to Department of Revenue.--

All fines and penalties imposed and collected under the

provisions of this chapter shall be payable to the Commonwealth

and appropriated to the Department of Revenue to be used in

carrying out its obligations under this chapter.

Section 2. This act shall take effect in 60 days.

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