Connecticut Seal

General Assembly

 

Substitute Bill No. 1130

    January Session, 2015

 

*_____SB01130FIN___042415____*

AN ACT IMPLEMENTING A TAX ON CONTROLLED SUBSTANCES AND FUNDING REGIONAL OPIOID ABUSE PREVENTION AND TREATMENT PROGRAMS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective January 1, 2016) (a) For the purposes of this section and section 2 of this act:

(1) "Commissioner" means the Commissioner of Revenue Services;

(2) "Controlled substance" means a controlled substance, as defined in section 21a-240 of the general statutes, in schedule I or II, except that "controlled substance" does not include marijuana prescribed for palliative use pursuant to chapter 420f of the general statutes;

(3) "Manufacturer" means a manufacturer of a controlled substance to be sold in this state, and includes, but is not limited to, a manufacturer of a controlled substance that is licensed in accordance with section 21a-246 of the general statutes;

(4) "Pharmacist" means a person authorized by law to practice pharmacy pursuant to section 20-590, 20-591, 20-592 or 20-593 of the general statutes;

(5) "Pharmacy" means an establishment licensed pursuant to section 20-594 of the general statutes; and

(6) "Wholesaler" means a wholesaler, as defined in section 21a-240 of the general statutes, of a controlled substance to be sold in this state, and includes, but is not limited to, a wholesaler of a controlled substance that is licensed in accordance with section 21a-246 of the general statutes.

(b) There shall be paid to the Commissioner of Revenue Services by each manufacturer or wholesaler of a controlled substance a tax at a rate of six and thirty-five-hundredths per cent on its gross receipts for any controlled substance lawfully sold on or after January 1, 2016, to any of the following-named persons located in this state: (1) A pharmacist or pharmacy; (2) a physician, dentist or veterinarian; (3) a person in charge of a hospital, incorporated college or scientific institution; (4) a person in charge of a laboratory; or (5) a registrant, as defined in subdivision (47) of section 21a-240 of the general statutes, who is permitted to purchase and possess such controlled substance under federal and state laws and regulations. Such manufacturer or wholesaler may itemize and collect the amount of such tax on any sale to a person described in subdivisions (1) to (5), inclusive, of this subsection. Any person described in subdivisions (1) to (5), inclusive, of this subsection who dispenses such controlled substance within this state to a beneficiary of the Medicare Part D program as a covered benefit under the Medicare Part D program, or to a beneficiary of any other program under which such controlled substance is a covered benefit that is exempt from taxation, may claim a refund of the amount of such tax with respect to such beneficiary in accordance with section 2 of this act.

(c) Each manufacturer or wholesaler of controlled substances that lawfully sells such controlled substances to any of the persons described in subsection (b) of this section shall register with the Commissioner of Revenue Services not later than January 1, 2016, on forms prescribed by the commissioner and each registered manufacturer or wholesaler shall renew its registration with the commissioner annually, in such manner as the commissioner may prescribe. No manufacturer or wholesaler may engage in or transact business as a manufacturer or wholesaler of controlled substances to be sold in this state unless such manufacturer or wholesaler is registered with the commissioner in accordance with the provisions of this section. Any manufacturer or wholesaler that fails to register or renew such registration in accordance with the provisions of this subsection shall pay a penalty of one thousand dollars for each such failure, which penalty shall not be subject to waiver.

(d) Each manufacturer and wholesaler shall submit a return quarterly to the Commissioner of Revenue Services, applicable with respect to the calendar quarter beginning January 1, 2016, and each calendar quarter thereafter, on or before the last day of the month immediately following the end of each such calendar quarter, on a form prescribed by the commissioner, together with payment of the quarterly tax determined and payable in accordance with the provisions of this section. Whenever such tax is not paid when due, a penalty of ten per cent of the amount due or fifty dollars, whichever is greater, shall be imposed, and such tax shall bear interest at the rate of one per cent per month or fraction thereof until the same is paid. The Commissioner of Revenue Services shall cause copies of a form prescribed for submitting returns as required under this section to be distributed to persons subject to the tax. Failure to receive such form shall not be construed to relieve any manufacturer or wholesaler subject to the tax under this section from the obligations of submitting a return, together with payment of such tax within the time required. The provisions of sections 12-548 to 12-554, inclusive, of the general statutes and sections 12-555a and 12-555b of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections 12-548 to 12-554, inclusive, and sections 12-555a and 12-555b had been incorporated in full into this section and had expressly referred to the tax imposed under this section, except to the extent that any such provision is inconsistent with a provision of this section. Any moneys received by the commissioner pursuant to this section shall be deposited into the opioid abuse prevention and treatment account established in section 3 of this act.

(e) The Commissioner of Revenue Services shall notify the Commissioner of Consumer Protection whenever a manufacturer or wholesaler licensed pursuant to section 21a-246 of the general statutes has continuously failed to comply with the requirements of this section for a period of at least six months. The Commissioner of Consumer Protection may suspend, revoke or refuse to renew the license of a manufacturer or wholesaler who has continuously failed to comply with the requirements of this section for a period of six months or longer. The Commissioner of Revenue Services shall notify the licensing authority of any other state where a manufacturer or wholesaler is licensed whenever such manufacturer or wholesaler has continuously failed to comply with the requirements of this section for a period of at least six months.

(f) Nothing in this section shall exempt any person from the tax imposed pursuant to chapter 228d of the general statutes with respect to marijuana or other controlled substance, as those terms are defined in section 12-650 of the general statutes.

Sec. 2. (NEW) (Effective January 1, 2016) (a) Any person claiming a refund pursuant to subsection (b) of section 1 of this act shall file such claim in accordance with this section. Each claim for refund shall be on a form prescribed by the Commissioner of Revenue Services and shall be accompanied by invoices or sales receipts or other statements of fact, under penalty of false statement, showing, to the satisfaction of the commissioner, the amount paid with respect to such refund, and any other information that is deemed necessary by the commissioner for the determination of such claim. Any claim for a refund with respect to a controlled substance sold by such person during any calendar year shall be filed with the commissioner on or before May thirty-first of the succeeding year.

(b) (1) The commissioner shall, not later than ninety days after receipt of any claim under this section, transmit all claims approved by the commissioner to the Comptroller, who shall draw an order upon the State Treasurer for payment. If the commissioner determines that any such claim is not valid, either in whole or in part, the commissioner shall mail notice of the proposed disallowance to the claimant and such notice shall set forth briefly the commissioner's findings of fact and the basis of disallowance in each case decided in whole or in part adversely to the claimant. Sixty days after the date on which it is mailed, a notice of proposed disallowance shall constitute a final disallowance except only for such amounts as to which the claimant has filed, as provided in subdivision (2) of this subsection, a written protest with the commissioner.

(2) On or before the sixtieth day after the mailing of the proposed disallowance, the claimant may file with the commissioner a written protest against the proposed disallowance in which the claimant sets forth the grounds on which the protest is based. If a protest is filed, the commissioner shall reconsider the proposed disallowance and, if the claimant has so requested, may grant or deny the claimant or the claimant's authorized representatives an oral hearing.

(3) The commissioner shall mail notice of the commissioner's determination to the claimant, which notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided in whole or in part adversely to the claimant.

(4) The action of the commissioner on the claimant's protest shall be final upon the expiration of one month from the date on which the commissioner mails notice of the commissioner's action to the claimant unless within such period the claimant seeks judicial review of the commissioner's determination in the manner provided for distributors pursuant to section 12-463 of the general statutes.

Sec. 3. (NEW) (Effective January 1, 2016) There is established an opioid abuse prevention and treatment account which shall be a separate, nonlapsing account within the General Fund. The account shall contain the amount of any taxes collected pursuant to section 1 of this act and any other moneys required by law to be deposited in the account. Amounts in the account shall be expended only for the purpose of providing funds to the Department of Mental Health and Addiction Services to provide grants-in-aid for regional opioid abuse prevention and treatment programs pursuant to section 5 of this act.

Sec. 4. Subsection (d) of section 17a-450 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2016):

(d) The Department of Mental Health and Addiction Services is designated as the lead state agency for substance abuse prevention and treatment in this state, and as such is designated as the state methadone authority. As the designated state methadone authority, the department is authorized by the federal Center for Substance Abuse Treatment of the Substance Abuse and Mental Health Services Administration within the United States Department of Health and Human Services to exercise responsibility and authority for the treatment of opiate addiction with an opioid medication, and specifically for: (1) Approval of exceptions to federal opioid treatment protocols in accordance with the Center for Substance Abuse Treatment, (2) monitoring all opioid treatment programs in the state, (3) providing grants-in-aid to regional opioid abuse prevention and treatment programs that follow state and federal treatment protocols in accordance with section 5 of this act, and [(3)] (4) approval of Center for Substance Abuse Treatment certification of all opioid treatment programs in the state. The Commissioner of Mental Health and Addiction Services may adopt regulations in accordance with chapter 54 to carry out the provisions of this subsection.

Sec. 5. (NEW) (Effective January 1, 2016) (a) The Commissioner of Mental Health and Addiction Services shall provide grants-in-aid, within available resources, to one or more regional opioid abuse prevention and treatment programs in each mental health region established pursuant to section 17a-478 of the general statutes. The commissioner shall provide such grants-in-aid to programs that follow state and federal treatment protocols and shall allocate such grants-in-aid on the basis of regional need and demand for services. Each program that receives a grant-in-aid pursuant to this section shall provide services in a manner that reduces the stigma associated with opioid abuse prevention and treatment and minimizes client contact with the criminal justice system.

(b) Not later than January 31, 2017, the commissioner shall submit a report to the joint standing committees of the General Assembly having cognizance of matters relating to public health and finance, revenue and bonding concerning the grants-in-aid awarded during the calendar year commencing January 1, 2016. The report shall indicate the amount of the grants-in-aid awarded, the recipients of the grants-in-aid, any amounts remaining in the opioid abuse prevention and treatment account established pursuant to section 3 of this act that were not allocated as of December 31, 2016, and the commissioner's recommendations, if any, for amendments to the general statutes regarding the grants-in-aid program or regional opioid abuse prevention and treatment programs.

This act shall take effect as follows and shall amend the following sections:

Section 1

January 1, 2016

New section

Sec. 2

January 1, 2016

New section

Sec. 3

January 1, 2016

New section

Sec. 4

January 1, 2016

17a-450(d)

Sec. 5

January 1, 2016

New section

FIN

Joint Favorable Subst.