Bill Text: IA HF618 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to opioid abuse prevention and treatment by creating an opioid abuse prevention and treatment workgroup and excise tax on the gross receipts of certain controlled substances sold at wholesale and providing for the transfer of the excise tax revenues to a newly created fund.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2017-03-28 - Introduced, referred to Human Resources. H.J. 798. [HF618 Detail]
Download: Iowa-2017-HF618-Introduced.html
House File 618 - Introduced HOUSE FILE BY ISENHART, BROWN=POWERS, and FORBES A BILL FOR 1 An Act relating to opioid abuse prevention and treatment by 2 creating an opioid abuse prevention and treatment workgroup 3 and excise tax on the gross receipts of certain controlled 4 substances sold at wholesale and providing for the transfer 5 of the excise tax revenues to a newly created fund. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2475YH (7) 87 tr/rj PAG LIN 1 1 Section 1. NEW SECTION. 135.191 Opioid abuse prevention 1 2 and treatment fund. 1 3 1. An opioid abuse prevention and treatment fund is created 1 4 in the state treasury under the control of the department. The 1 5 fund is established to expand treatment and access to opioid 1 6 use disorder and to assist opioid drug abuse prevention and 1 7 treatment programs in the state including but not limited 1 8 to medication=assisted treatment programs that provide 1 9 appropriate holistic services, treatment programs licensed 1 10 in the administrative rules of the department, in accordance 1 11 with programs sponsored by community organizations, programs 1 12 that provide emergency responders with affordable access 1 13 to opioid antagonists, and programs that assist in paying 1 14 treatment costs for individuals who are ineligible for Medicaid 1 15 services or private insurance coverage. The fund shall also 1 16 provide support for the expansion of substance abuse and pain 1 17 management curricula at the university of Iowa college of 1 18 medicine, evidence=based public health research on nonnarcotic 1 19 pain treatment and management alternatives, and expanded mental 1 20 health and substance abuse education and training for emergency 1 21 medical care providers as defined in section 147A.1. 1 22 2. Distribution of moneys from the opioid abuse prevention 1 23 and treatment program shall be made to eligible applicants in 1 24 the following order of priority: 1 25 a. A public entity, including but not limited to a state, 1 26 county, or local community health clinic and federally 1 27 qualified health center, or a public health agency, as 1 28 defined in section 135.154, that provides opioid use disorder 1 29 treatment. 1 30 b. A nonpublic entity that, in addition to opioid use 1 31 disorder treatment services, provides required primary health 1 32 services as described in 42 U.S.C. {254b(b)(1)(A). 1 33 c. A nonpublic entity that provides opioid use disorder 1 34 treatment but does not provide required primary health services 1 35 as described in 42 U.S.C. b(b)(1)(A). 2 1 3. The fund shall consist of all moneys deposited in the 2 2 fund pursuant to section 423G.4 and any other moneys available 2 3 to, obtained, or accepted by the department for placement in 2 4 the fund. Moneys in the fund are not subject to section 8.33. 2 5 Notwithstanding section 12C.7, interest or earnings on moneys 2 6 in the fund shall be credited to the fund. 2 7 Sec. 2. NEW SECTION. 135.192 Opioid abuse prevention and 2 8 treatment workgroup. 2 9 1. An opioid abuse prevention and treatment workgroup shall 2 10 be established by the state board of health. The workgroup 2 11 shall be composed of nine members appointed by the governor 2 12 based on recommendations by the department, including the 2 13 following: 2 14 a. One physician licensed under chapter 148. 2 15 b. One pharmacist licensed under chapter 155A. 2 16 c. One social worker licensed under chapter 154C. 2 17 d. One advanced registered nurse practitioner licensed under 2 18 chapter 152. 2 19 e. One representative of a county board of health. 2 20 f. One representatives of a substance abuse treatment 2 21 program licensed under chapter 125. 2 22 g. One person who has been treated for and has recovered 2 23 from opioid abuse. 2 24 h. Two persons who are not licensed to practice medicine, 2 25 pharmacy, social work, or nursing who shall represent the 2 26 general public. 2 27 2. The workgroup shall do all of the following: 2 28 a. Promote meetings and programs for the discussion of 2 29 methods to reduce opioid abuse and disseminate information 2 30 in cooperation with any other department, agency, or other 2 31 governmental or nongovernmental entity on the prevention, 2 32 evaluation, care, treatment, and rehabilitation of persons 2 33 affected by opioid abuse. 2 34 b. Study and review current prevention, evaluation, care, 2 35 treatment, and rehabilitation programs and strategies and 3 1 recommend appropriate preparation, training, retraining, and 3 2 distribution of personnel and resources in the provision of 3 3 services to persons with opioid abuse issues through treatment 3 4 programs licensed in accordance with the administrative rules 3 5 of the department. 3 6 c. Make recommendations to the department to expend moneys 3 7 deposited in the opioid abuse prevention and treatment fund 3 8 created in section 135.191 to carry out the recommendations of 3 9 the workgroup in accordance with section 135.191, subject to 3 10 the approval of the department. 3 11 d. Meet at least quarterly. 3 12 e. Make recommendations regarding approval by the state 3 13 board of health of administrative rules for adoption by the 3 14 department pursuant to chapter 17A. 3 15 3. The department may receive gifts, grants, or donations 3 16 made for any of the purposes of the workgroup's duties and 3 17 disburse and administer them in accordance with their terms. 3 18 Sec. 3. NEW SECTION. 423G.1 Definitions. 3 19 1. For purposes of this chapter, unless the context 3 20 otherwise requires: 3 21 a. "Gross receipts" means the total revenues received from 3 22 the wholesale sale of schedule II controlled substances to 3 23 practitioners in this state. 3 24 b. "Practitioner" means the same as defined in section 3 25 124.101. 3 26 c. "Schedule II controlled substance" means a controlled 3 27 substance listed in the schedule provided in section 124.206. 3 28 d. "Wholesaler" means a person other than a distributor or 3 29 distributing agent who engages in the business of selling or 3 30 distributing schedule II controlled substances to practitioners 3 31 in this state, for the purpose of resale. 3 32 2. All other words and phrases used in this chapter and 3 33 defined in section 423.1 have the meaning given them by section 3 34 423.1 for purposes of this chapter. 3 35 Sec. 4. NEW SECTION. 423G.2 Tax imposed. 4 1 A tax of five percent is imposed on the gross receipts of 4 2 a schedule II controlled substance sold at wholesale to a 4 3 practitioner in this state. The tax imposed under this section 4 4 shall be collected and paid over to the department by the 4 5 wholesaler. 4 6 Sec. 5. NEW SECTION. 423G.3 Administration by director. 4 7 1. The director of revenue shall administer the excise tax 4 8 on the gross receipts of schedule II controlled substances as 4 9 nearly as possible in conjunction with the administration of 4 10 the state sales and use tax law, except that portion of the law 4 11 that implements the streamlined sales and use tax agreement. 4 12 The director shall provide appropriate forms, or provide on the 4 13 regular state tax forms, for reporting tax liability pursuant 4 14 to this chapter. 4 15 2. The director may require all wholesalers subject to tax 4 16 liability under this chapter to register with the department. 4 17 The director may also require a tax permit applicable only to 4 18 this chapter for any wholesaler not collecting taxes under 4 19 chapter 423. 4 20 3. Section 422.25, subsection 4, sections 422.30, 422.67, 4 21 and 422.68, section 422.69, subsection 1, sections 422.70, 4 22 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 4 23 1, and sections 423.23, 423.24, 423.25, 423.31 through 4 24 423.35, 423.37 through 423.42, and 423.47, consistent with 4 25 the provisions of this chapter, shall apply with respect to 4 26 the tax authorized under this chapter, in the same manner 4 27 and with the same effect as if the excise tax on the gross 4 28 receipts of schedule II controlled substances by a wholesaler 4 29 was a retail sales tax within the meaning of those provisions. 4 30 Notwithstanding this subsection, the director shall provide for 4 31 quarterly filing of returns and for other than quarterly filing 4 32 of returns both as prescribed in section 423.31. All taxes 4 33 collected under this chapter by a wholesaler are deemed to be 4 34 held in trust for the state of Iowa. 4 35 Sec. 6. NEW SECTION. 423G.4 Deposit of revenues. 5 1 1. All moneys received and all refunds shall be deposited in 5 2 or withdrawn from the general fund of the state. 5 3 2. Subsequent to the deposit in the general fund of the 5 4 state, the department shall transfer the revenues collected 5 5 under this chapter to the opioid abuse prevention and treatment 5 6 fund created in section 135.191. 5 7 EXPLANATION 5 8 The inclusion of this explanation does not constitute agreement with 5 9 the explanation's substance by the members of the general assembly. 5 10 This bill relates to opioid abuse prevention and treatment 5 11 by creating an opioid abuse prevention and treatment workgroup 5 12 and an excise tax on the gross receipts of certain controlled 5 13 substances sold at wholesale and providing for the transfer of 5 14 the excise tax revenues to a newly created fund. 5 15 The bill establishes an opioid abuse prevention and 5 16 treatment workgroup within the department of public health. 5 17 Under the bill, the membership of the workgroup includes one 5 18 physician, one pharmacist, one social worker, one advanced 5 19 registered nurse practitioner, one representative of a county 5 20 board of health, one representative of a substance abuse 5 21 treatment program licensed under Code chapter 125, one person 5 22 who has been treated for and has recovered from opioid abuse, 5 23 and two persons who are not licensed to practice medicine, 5 24 pharmacy, social work, or nursing who shall represent the 5 25 general public. 5 26 Under the bill, the workgroup is required to promote 5 27 meetings and programs for the discussion of methods to reduce 5 28 opioid abuse and disseminate information in cooperation 5 29 with any other department, agency, or other governmental 5 30 or nongovernmental entity on the prevention, evaluation, 5 31 care, treatment, and rehabilitation of persons affected by 5 32 opioid abuse. The bill also requires the workgroup to study 5 33 and review current prevention, evaluation, care, treatment, 5 34 and rehabilitation programs and strategies and recommend 5 35 appropriate preparation, training, retraining, and distribution 6 1 of personnel and resources in the provision of services to 6 2 persons with opioid abuse issues through treatment programs 6 3 licensed in accordance with the administrative rules of the 6 4 department. 6 5 The bill directs the workgroup to make recommendations to 6 6 the department to expend moneys deposited in the opioid abuse 6 7 prevention and treatment fund to carry out the recommendations 6 8 of the workgroup in accordance with criteria set forth in 6 9 Code section 135.191. The bill also directs the workgroup to 6 10 make recommendations to the state board of health to approve 6 11 administrative rules for adoption by the department relating to 6 12 the workgroup's recommendations. 6 13 The bill imposes an excise tax of 5 percent on the gross 6 14 receipts of schedule II controlled substances sold at wholesale 6 15 to practitioners in the state. The tax shall be collected and 6 16 paid over to the department of revenue by the wholesaler. The 6 17 bill contains definitions for "gross receipts", "practitioner", 6 18 "schedule II controlled substance", and "wholesaler". 6 19 The bill requires the director of revenue to administer 6 20 the excise tax as nearly as possible in conjunction with the 6 21 administration of the state sales and use tax laws, and, to 6 22 that end, the bill incorporates by reference several Code 6 23 sections that relate to general tax administration and the 6 24 sales and use tax laws. 6 25 The bill requires excise tax revenues collected pursuant 6 26 to the bill to be deposited in the general fund of the state, 6 27 then transferred to the opioid abuse prevention and treatment 6 28 fund created in the bill. The fund is created in the state 6 29 treasury under the control of the department of public health. 6 30 The fund is established to assist opioid abuse prevention and 6 31 treatment programs in the state, including but not limited to 6 32 programs described in the bill. The fund consists of moneys 6 33 deposited in the fund from the revenues of the excise tax, and 6 34 any other moneys obtained by the department for placement in 6 35 the fund. Moneys in the fund are not subject to Code section 7 1 8.33. Notwithstanding Code section 12C.7, interest or earnings 7 2 on moneys in the fund shall be credited to the fund. LSB 2475YH (7) 87 tr/rj
