Senate Substitute 1 for Senate Bill 176

149th General Assembly (2017 - 2018)

Bill Progress

LOT 6/20/18
The General Assembly has ended, the current status is the final status.

Bill Details

Sen. Henry
Reps. Keeley, Hudson
This Act creates a Prescription Opioid Impact Fund (“Fund”) through a prescription opioid impact fee (“Fee”) that is assessed on manufacturers of prescription opioids as follows: 1. The fee is based on the total of the Morphine Milligram Equivalent (“MME”) in each manufacturer’s products dispensed in Delaware, based upon data already reported to the Prescription Monitoring Program (“PMP”). The PMP data contains the mandatory reports by pharmacists of every prescription opioid dispensed in the State. The PMP data does not include prescription opioids administered in hospitals, provided directly to patients by hospice, or dispensed by veterinarians. 2. The fee is assessed against manufacturers who exceed a threshold of MME dispensed each quarter. 3. The Fee is assessed as follows: • One penny per MME for a prescription opioid dispensed and reported in the PMP. • One-quarter of a penny per MME for a prescription opioid that is a generic. The money in the Prescription Opioid Impact Fund must be spent on the following activities: 1. Opioid addiction prevention. 2. The following opioid addiction services: • Inpatient and outpatient treatment programs and facilities, including short-term and long-term residential treatment programs and sober living facilities. • Treating substance use disorder for the under-insured and uninsured. • Emergency assistance relating to prescription opioids, including purchasing Naloxone. 3. Research regarding opioid addiction and treatment. 4. Administrative costs of implementing the Fee and Fund, up to 15% of the amount in the Fund. The Addiction Action Committee will award grants and contracts from the money in the Fund, based upon priorities developed in consultation with the Behavioral Health Consortium. A standing subcommittee of the Addiction Action Committee that does not contain any State employees will make the recommendations regarding the awards of the grants and contracts. This Substitute Bill differs from Senate Bill No. 176 as follows: • Adds additional whereas clauses to further explain the background for the Fund and Fee. • Gives responsibility for the Fee to the Secretary of State instead of the Secretary of the Department of Health and Social Services, because the PMP and the Controlled Substances Act are under the Secretary of State. • Removes the ability to use the funds from the Fee for Medicaid, and restricts appropriations to specifically-listed activities. • Prohibits using the Fund to supplant existing State funding. • Permits a manufacturer to challenge an invoice for a prescription opioid impact fee through the existing appeal process under the Controlled Substances Act. • Gives responsibility for appropriating funds from the Fund to the Addiction Action Committee. • Lowers the amount of the impact fee for generic drugs. • Establishes a minimum threshold before manufacturers are assessed the Fee. • Removes the restriction on raising prices to consumers because the Fee is unlikely to materially increase the price of prescription drugs because those prices are set on a national basis. • Provides explicitly that the Attorney General may recover interest and reasonable attorney fees and costs in a successful lawsuit to enforce this Act. • Clarifies that the Secretary of State develops the rules and regulations for implementing the Fee. And the Addiction Action Committee, with the Secretary of the Department of Health and Social Services, develops the rules and regulations for implementing the Fund. • Revises the reporting requirements on how money from the Fund is spent. • Provides clear permission to share the PMP data with the Addiction Action Committee, Secretary of State, and Attorney General for the purposes of administering and enforcing this chapter.
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Takes effect upon being signed into law

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