,i #aafth ,,congress #ast ,session ,h4 ,r4 #biag ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjai,ms4 ,gabbard 7for herself and ,mr4 ,khanna7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to hold pharmaceutical companies accountable for dubious marketing and distribution of opioid products and for their role in creating and exacerbating the opioid epidemic in the ,united ,states4 #a4 ,short title ,this ,act may be cited as the ,opioid ,crisis ,accountability ,act of #bjai4 #b4 ,prohibition of dubious marketing and medically unreasonable distribution practices with respect to opioids 7a7 ,dubious marketing or distribution practice with respect to an opioid 7#a7 ,in general ,in this section1 the term dubious marketing or distribution practice with respect to an opioid1 subject to paragraph 7#b71 means-- 7,a7 including in any advertisement1 promotion1 direct-to-consumer marketing materials1 or other marketing material a representation that an opioid has no addiction-forming or addiction-sustaining liability or has less of an addiction-forming or addiction-sustaining liability than #a or more other opioids1 knowing the representation to be false1 as determined by the ,secretary of ,health and ,human ,services 7referred to in this section as the ,secretary71 in consultation with the ,commissioner of ,food and ,drugs 7referred to in this section as the ,commissioner71 based on research1 testimonials1 and other evidence2 7,b7 knowingly supplying ,states or communities with a quantity of opioids that the person knows is not medically reasonable2 or 7,c7 failing to report to the ,secretary any order or pattern of orders for the distribution of opioids in a ,state or community that the person knows are not being dispensed in a medically reasonable manner4 7#b7 ,limitation ,an act does not constitute a dubious marketing or distribution practice with respect to an opioid1 with respect to a natural person-- 7,a7 within the meaning of paragraph 7#a77;,b71 if such natural person was not involved in the decision making regarding the quantity of opioids to supply2 or 7,b7 within the meaning of paragraph 7#a77;,c7 if such natural person knows that the ,secretary should reasonably be aware of the relevant order or pattern of orders for the distribution of opioids4 7b7 ,prohibition ,it shall be unlawful for any person involved in the manufacture or distribution of an opioid to engage in an dubious marketing or distribution practice with respect to an opioid4 7c7 ,penalties 7#a7 ,in general ,any person who violates subsection 7b7-- 7,a7 if a natural person employed by an opioid manufacturer or distributor1 shall be-- 7i7 subject to a civil penalty in an amount equal to the sum of-- 7,i7 such person's full amount of salary for each year during which such person engaged in dubious marketing or distribution practices with respect to an opioid product2 and 7,,ii7 the amount by which the stock or other certificates of ownership interest of the person that is owned by the individual has increased in value during the period during which such person engaged in dubious marketing or distribution practices of an opioid product1 without regard to whether the individual has sold any of the stock or certificates from such opioid manufacturer or distributor2 and 7ii7 subject to a term of imprisonment-- 7,i7 with respect to a violation involving a drug in schedule ,,ii of section #bjb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hab71 of not more than #aj years2 or 7,,ii7 with respect to a violation involving a drug in schedule ,,iii of section #bjb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hab71 of not more than #e years2 or 7,b7 if a corporate entity1 shall be subject to a civil penalty in the amount equal to #ge percent of the total profit such corporate entity made on lawful sales of opioids in the ,united ,states during the period in which the corporate entity engaged in dubious marketing or distribution practices4 7#b7 ,other penalties applicable in the case of a violation by a corporate entity ,if a person that is a corporate entity violates subsection 7b71 the court1 without regard to the participation of such individuals in1 or knowledge of such individuals of1 the violation1 shall-- 7,a7 impose on the chief executive officer 7or equivalent7 of the corporate entity a civil penalty in an amount equal to the sum of-- 7i7 the salary of the individual during the period in which the corporate entity engaged in dubious marketing or distribution practices and such individual served as chief executive office2 and 7ii7 the amount by which the stock or other certificates of ownership interest of the corporate entity that is owned by the individual has increased in value during the period that the corporate entity engaged in dubious marketing or distribution practices and such individual served as chief executive officer1 without regard to whether the individual has sold any of the stock or certificates2 7,b7 impose on any executive other than the chief executive officer 7or equivalent7 who led the finance1 research1 marketing1 or sales department of the corporate entity a civil penalty in the amount equal to the sum of-- 7i7 #be percent of the salary of the individual during the period that the corporate entity engaged in dubious marketing or distribution practices and such individual served as such an executive2 and 7ii7 #be percent of the amount by which the stock or other certificates of ownership interest of the corporate entity that is owned by the individual has increased in value during the period that the corporate entity engaged in dubious marketing or distribution practices and such individual served as such an executive1 without regard to whether the individual has sold any of the stock or certificates2 and 7,c7 impose on any executive1 including the chief executive officer 7or equivalent7 who led the finance1 research1 marketing1 or sales department of the corporate entity during the calendar year in which a court enters a judgment that the corporate entity violated subsection 7b7 and who is not subject to a civil penalty under subparagraph 7,a7 or 7,b71 a civil penalty in the amount equal to the sum of-- 7i7 #be percent of the salary of the individual from the corporate entity during the calendar year in which a court enters such judgment2 and 7ii7 #be percent of the amount by which the stock or other certificates of ownership interest of the corporate entity that is owned by the individual has increased in value during the calendar year in which a court enters such judgment4 7d7 ,rules for application 7#a7 ,quantity of opioids covered 7,a7 ,formula ,for purposes of subparagraphs 7,b7 and 7,c7 of subsection 7a77#a71 the ,secretary1 in consultation with the ,attorney ,general and1 as appropriate1 provider groups and patient advocacy groups1 using1 if applicable1 data from the ,automated ,reports and ,consolidated ,ordering ,system of the ,department of ,justice1 shall establish a formula for determining the quantity of opioids that is not medically reasonable with respect to a community or ,state4 7,b7 ,rebuttable presumption ,there shall be a rebuttable presumption that a person who supplies a ,state or community with a quantity of opioids that is not medically reasonable1 as determined using the formula established under paragraph 7#a71 knowingly supplied such quantity in violation of subsection 7a77#a77;,b74 7#b7 ,medically reasonable quantities in an order 7,a7 ,guidance ,for purposes of subsection 7a77#a77;,c71 the ,secretary shall issue guidance setting forth a procedure that opioid manufacturers and distributors shall follow to recognize orders or patterns of orders for the distribution of opioids that are not medically reasonable4 7,b7 ,rebuttable presumption ,there shall be a rebuttable presumption that a person who-- 7i7 receives an order that the ,secretary determines to be not medically reasonable and does not report such order2 and 7ii7 did not follow the procedure set forth in the guidance described in subparagraph 7,a7 with respect to such order1 knowingly failed to report as described in subsection 7a77#a77;,c74 7e7 ,fees applicable to all opioid manufacturers and distributors 7#a7 ,in general ,the ,secretary shall assess a fee against each corporate entity that1 during the period beginning on ,january #a1 #aiic1 and ending on the day before the date of enactment of this ,act1 manufactured or distributed any opioid drug that was covered by a ,federal health program at least once during such period1 in amounts1 for each such manufacturer or distributor1 determined by the ,secretary through rulemaking4 7#b7 ,total amount ,the ,secretary shall ensure that the total amount assessed under paragraph 7#a7 equals #bj1jjj1jjj1jjj4 7#c7 ,due dates ,with respect to a fee assessed under this subsection-- 7,a7 not less than #ej percent of the amount of the fee shall be paid within #a year of the date of enactment of this ,act2 and 7,b7 #ajj percent of such amount shall be paid not later than #b years after the date of enactment of this ,act4 7#d7 ,withdrawal of approval in the case of nonpayment by manufacturer ,if a manufacturer assessed a fee under this subsection fails to pay the full fee as required under paragraph 7#c71 the ,secretary shall withdraw approval of the application under section #eje of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7 for the drug until the fee is paid in full4 7#e7 ,investigation ,immediately after the date of enactment of this ,act1 the ,secretary1 acting through the ,commissioner and in consultation with the ,attorney ,general1 acting through the ,administrator of the ,drug ,enforcement ,administration1 shall begin an assessment to set fees under this subsection4 7f7 ,reimbursement of economic impact 7#a7 ,establishment of fund ,there is established in the ,treasury of the ,united ,states a fund1 to be known as the ,opioids ,reimbursement ,fund 7referred to in this subsection as the ,fund71 to be administered by the ,secretary1 in consultation with the ,commissioner4 7#b7 ,appropriations2 transfers to the ,fund 7,a7 ,appropriation ,there is appropriated1 out of any monies in the ,treasury not otherwise appropriated1 #bj1jjj1jjj1jjj to the ,fund4 7,b7 ,transfers ,in a manner consistent with section #ccjb7;b7 of title #ca1 ,united ,states ,code1 there shall be transferred to the ,fund from the ,general ,fund of the ,treasury an amount equal to-- 7i7 the amount of the civil penalties collected under subsection 7c72 plus 7ii7 the amount of fees collected under subsection 7e74 7,c7 ,availability ,funds appropriated under paragraph 7#a7 and transferred under subparagraph 7,b7 shall remain available until expended4 7#c7 ,use of funds 7,a7 ,in general ,the ,secretary1 in consultation with the ,commissioner1 may1 without further appropriation1 use amounts in the ,fund to combat the misuse and abuse of opioids in the ,united ,states1 which may include transferring amounts from the ,fund to other agencies to carry out programs1 projects1 and activities of the agencies to combat the misuse and abuse of opioids in the ,united ,states4 7,b7 ,priority ,in using amounts in the ,fund1 the ,secretary shall give priority to providing funds for-- 7i7 programs1 projects1 and activities of the ,substance ,abuse and ,mental ,health ,services ,administration1 the ,department of ,labor1 the ,centers for ,disease ,control and ,prevention1 and the ,health ,resources and ,services ,administration2 7ii7 programs1 projects1 and activities that provide services to individuals directly affected by the misuse and abuse of opioids 7including family members of such individuals72 7iii7 programs1 projects1 and activities of the ,department of ,education related to national activities for school safety1 including such activities authorized under section #dfca of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #gbha7 to help ,state and local educational agencies implement evidence-based opioid misuse and abuse prevention strategies for schools in communities impacted by the opioid crisis1 and particularly for any applicant who describes how such applicant would use the funds to prevent opioid misuse and abuse by students and address the mental health needs of students affected by opioid misuse and abuse with their families or communities2 and 7iv7 ,head ,start programs1 including ,early ,head ,start programs1 under the ,head ,start ,act 7#db ,u4,s4,c4 #ihca et seq47 and the ,healthy ,start program of the ,health ,resources and ,services ,administration to provide additional qualified child care providers trained in trauma-informed care in ,states with the largest number of children and families affected by the opioid crisis in their communities4 7,c7 ,availability ,amounts transferred to an agency under subparagraph 7,a7 shall remain available until expended4 7,d7 ,supplement not supplant ,amounts transferred to an agency under subparagraph 7,a7 to carry out programs1 projects1 and activities of the agency shall supplement1 and not supplant1 amounts otherwise available for such purpose4 #c4 ,reduced exclusivity 7a7 ,in general ,if a drug manufacturer violates section #b7;b7 with respect to a covered opioid1 effective on the date on which such manufacturer is found to have so violated such section-- 7#a7 any remaining period of market exclusivity with respect to such covered opioid shall be revoked2 7#b7 the period of market exclusivity with respect to any other opioid for which such manufacturer is the holder of an approved application under section #eje of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7 or a license under section #cea of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7 shall be reduced to one half of the remaining period of market exclusivity2 and 7#c7 no new or additional exclusivity shall be awarded to any opioid for which an application is submitted by such manufacturer for approval under section #eje of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7 or under section #cea of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7 or marketed as a result of product hopping4 7b7 ,definitions ,for purposes of this section3 7#a7 ,covered opioid ,a covered opioid is a prescription opioid drug1 the sales of which in the ,united ,states1 beginning on the date on which the drug was first eligible to be marketed in the ,united ,states and ending on the date on which the manufacturer was found to be in violation of section #b7;b71 has generated at least #a4 7#b7 ,period of market exclusivity ,the term period of market exclusivity with respect to a drug means the total period of market exclusivity granted under clause 7ii71 7iii71 or 7iv7 of section #eje7;c77#c77;,e7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7;c77#c77;,e771 section #eje7;j77#e77;,b77iv7 of such ,act1 clause 7ii71 7iii71 or 7iv7 of section #eje7;j77#e77;,f7 of such ,act1 section #ebg of such ,act 7#ba ,u4,s4,c4 #cfj;cc71 or paragraph 7#f7 or 7#g7 of section #cea7k7 of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7k771 and any extension of such a period granted under section #eje;,a or #eje;,e of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cee;a1 #cee;f74 7#c7 ,product hopping ,the term product hopping means a reformulation of an approved drug or biological product that allows a manufacturer to submit a new drug application under section #eje7;b7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7;b77 or new application for a license under section #cea7;a7 of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7;a77 and that-- 7,a7 is intended for the treatment of the same medical condition as the drug or biological product that was originally so approved2 and 7,b7 is undertaken in conjunction with the sponsor's actions to reduce or eliminate demand for the original formulation of the drug or biological product4