2019 Montana Legislature
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SENATE BILL NO. 322
INTRODUCED BY R. WEBB
A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING A LICENSE ENDORSEMENT FOR WHOLESALE PRESCRIPTION DRUG DISTRIBUTORS WHO BRING OPIOID DRUGS INTO MONTANA; ESTABLISHING AN ENDORSEMENT FEE; PROVIDING FOR USE OF THE FEE; PROVIDING RULEMAKING AUTHORITY; AND AMENDING SECTIONS 37-7-324 AND 37-7-605, MCA."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Drug education and abuse prevention, criminal diversion, and medical education grants -- eligibility -- reporting requirements -- rulemaking. (1) The department of justice shall provide:
(a) drug education and abuse prevention grants to youth development organizations that provide comprehensive after-school and summer experiences that include drug abuse prevention education, youth mentoring, social and emotional support, and college and career exploration;
(b) criminal diversion grants to establish or support drug treatment courts operating in accordance with Title 46, chapter 1, part 11; and
(c) medical education grants to Montana university system units that educate and train students in the practice of psychiatry or nursing.
(2) Drug education and abuse prevention grants may be provided only to a youth development organization that:
(a) acts as an administrative umbrella organization for member organizations that provide youth development programs outside of normal school hours to children who are 6 to 18 years of age; and
(b) has member organizations in at least 10 communities statewide.
(3) The department may adopt rules establishing grant application and award criteria.
(4) An entity that receives a drug education and abuse prevention grant shall report to the department on:
(a) the demographics of the children served;
(b) program attendance and participation; and
(c) whether and how the attitudes of program participants related to substance abuse changed during their time in the program.
(5) A drug treatment court that receives a criminal diversion grant shall report to the department on the number of individuals diverted into a drug treatment program, the types of drug treatment services each individual received, and the outcome of the cases diverted into the treatment program.
(6) A Montana university system unit that receives a medical education grant shall report to the department on the number of students participating in the program receiving grant funds.
(7) The department shall adopt rules establishing criteria for applying for, evaluating, and awarding grants under this section.
NEW SECTION. Section 2. Drug education, criminal diversion, and medical education account. (1) There is a drug education, criminal diversion, and medical education account in the state special revenue fund provided for in 17-2-102 to the credit of the department of justice.
(2) Money from the fee provided for in 37-7-605(5) must be deposited in the account.
(3) The department shall use:
(a) one-third of the money in the account to provide drug education and abuse prevention grants to youth development organizations;
(b) one-third of the money to support medical education programs focusing on the practice of psychiatry or nursing; and
(c) one-third of the money to support drug treatment courts.
(4) All interest and income earned on the account must be deposited in the account.
Section 3. Section 37-7-324, MCA, is amended to read:
"37-7-324. Deposit of fees and fines. (1) Fines paid under this chapter, except those paid to a justice's court, and fees collected by the department for registration and licenses issued under this chapter shall must be deposited in the state special revenue fund for the use of the board, subject to 37-1-101(6).
(2) Except as provided in subsection (3), fees collected by the department for registration, licenses, and endorsements issued under this chapter must be deposited in the state special revenue fund for the use of the board, subject to 37-1-101(6).
(3) Endorsement fees paid by wholesale distributors pursuant to 37-7-605(5) must be deposited in the special revenue account provided for in [section 2]."
Section 4. Section 37-7-605, MCA, is amended to read:
"37-7-605. Out-of-state licensing requirements -- endorsement to distribute opioid-containing drugs -- fee. (1) An out-of-state wholesale distributor, third-party logistics provider, manufacturer, or repackager may not conduct business in this state without first:
(a) obtaining a license from the board and paying the license fee established by the board; and
(b) obtaining a license endorsement and paying the endorsement fee required under this section if the wholesale distributor is bringing prescription drugs containing an opioid into this state.
(2) Application for a license or endorsement under this section must be made on an approved form.
(3) The issuance of a license or endorsement may not affect tax liability imposed by the department of revenue on any out-of-state license.
(4) A person acting as principal or agent for an out-of-state licensee may not sell or distribute prescription drugs in this state unless the wholesale distributor, third-party logistics provider, manufacturer, or repackager has obtained a license.
(5) (a) A wholesale distributor shall pay an annual fee of $5 million for the endorsement required under this section.
(b) A wholesale distributor that has common ownership of multiple locations that are licensed as wholesale distributors and that distribute opioid-containing prescription drugs:
(i) needs only one endorsement for all licensed locations; and
(ii) is not required to pay a separate fee for each licensed location."
NEW SECTION. Section 5. Direction to department of labor and industry. The legislature intends for the department of labor and industry to collect the endorsement fee for fiscal year 2020 no later than December 31, 2019.
NEW SECTION. Section 6. Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 44, chapter 4, and the provisions of Title 44, chapter 4, apply to [sections 1 and 2].
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Latest Version of SB 322 (SB0322.01)
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