[Congressional Record Volume 162, Number 33 (Tuesday, March 1, 2016)]
[Senate]
[Pages S1151-S1154]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3377. Mr. KING submitted an amendment intended to be proposed by 
him to the bill S. 524, to authorize the Attorney General to award 
grants to address the national epidemics of prescription opioid abuse 
and heroin use; which was ordered to lie on the table; as follows:

       At the end, add the following:

               TITLE VIII--PHARMACEUTICAL STEWARDSHIP ACT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Pharmaceutical Stewardship 
     Act of 2016''.

     SEC. 802. NATIONAL PHARMACEUTICAL STEWARDSHIP PROGRAMS.

       (a) Definitions.--In this section:
       (1) The term ``board of directors'' means the board of 
     directors of the organization.
       (2) The term ``producer'', with respect to a covered drug, 
     means the holder of an approved application for the covered 
     drug under subsection (b) or (j) of section 505 of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355).
       (3) The term ``certified national pharmaceutical 
     stewardship program'' means a national pharmaceutical 
     stewardship program with a certification in effect under 
     subsection (g) or (h).
       (4) The term ``controlled substance'' means a controlled 
     substance (as such term is defined in section 102 of the 
     Controlled Substances Act (21 U.S.C. 802)) in schedule II, 
     III, IV, or V under section 202 of such Act (21 U.S.C. 812).
       (5) The term ``covered drug'' means a drug (as such term is 
     defined in section 201 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321)) that is marketed in the United 
     States other than--
       (A) a drug for which a take-back program is in effect 
     pursuant to a risk evaluation and mitigation strategy under 
     section 505-1 of the Federal Food, Drug, and Cosmetic Act (21 
     U.S.C. 355-1);
       (B) a vitamin or dietary supplement (as such term is 
     defined in section 201 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321));
       (C) an herbal-based remedy or homeopathic drug, product, or 
     remedy;
       (D) a soap (with or without germicidal agents), laundry 
     detergent, bleach, household cleaning product, shampoo, 
     sunscreen, toothpaste, lip balm, antiperspirant, or other 
     product that is regulated under the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 301 et seq.) exclusively as a 
     cosmetic;
       (E) a biological product (as defined in section 351 of the 
     Public Health Service Act (42 U.S.C. 262)); or
       (F) a pesticide (as defined in section 2 of the Federal 
     Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136)) 
     that is contained in a collar, powder, shampoo, topical 
     application, or other system for delivery or application to a 
     pet.
       (6) The term ``organization'' means the National 
     Pharmaceutical Stewardship Organization established in 
     accordance with subsection (c).
       (7) The term ``Secretary'' means the Secretary of Health 
     and Human Services.
       (8) The term ``ultimate user'' has the meaning given to 
     such term in section 102 of the Controlled Substances Act (21 
     U.S.C. 802).
       (b) Required Participation.--Each producer of a covered 
     drug shall participate in--
       (1) the certified national pharmaceutical stewardship 
     program of the National Pharmaceutical Stewardship 
     Organization; or
       (2) another certified national pharmaceutical stewardship 
     program.
       (c) National Pharmaceutical Stewardship Organization.--
       (1) Establishment.--There shall be established in 
     accordance with this section a nonprofit private corporation 
     to be known as the National Pharmaceutical Stewardship 
     Organization. The organization shall not be an agency or 
     instrumentality of the Federal Government, and officers, 
     employees, and members of the board of the organization shall 
     not, by virtue of such service, be considered officers or 
     employees of the Federal Government.
       (2) Purpose.--The purpose of the organization shall be to 
     establish and, beginning not later than 2 years after the 
     date of enactment of this title, implement a certified 
     national pharmaceutical stewardship program.
       (3) Board of directors.--
       (A) Representation.--The organization shall have a board of 
     directors with balanced representation of each of the 
     following:
       (i) Producers of covered drugs.
       (ii) Public health, pharmacy, law enforcement, and 
     substance use disorder treatment professionals.
       (iii) Water quality and waste management stakeholders.
       (B) Initial members.--The Secretary shall appoint the 
     initial members of the board of directors.
       (4) Powers.--
       (A) In general.--The organization may--
       (i) adopt and amend a constitution and bylaws for the 
     management of its property and the regulation of its affairs;
       (ii) adopt and alter a corporate seal;

[[Page S1152]]

       (iii) choose officers, managers, agents, and employees as 
     the activities of the organization require;
       (iv) make contracts;
       (v) acquire, own, lease, encumber, and transfer property as 
     necessary to carry out the purposes of the organization;
       (vi) borrow money, issue instruments of indebtedness, and 
     secure its obligations by granting security interests in its 
     property;
       (vii) sue and be sued; and
       (viii) do any other act necessary and proper to carry out 
     the purpose of the organization.
       (B) Bylaws.--The board of directors shall establish the 
     general policies of the organization for carrying out the 
     purpose described in paragraph (2), including the 
     establishment of the bylaws of the organization, which shall 
     include bylaws for the following:
       (i) Entering into contracts and agreements with service 
     providers and entities as necessary, useful, or convenient to 
     provide all or portions of the national pharmaceutical 
     stewardship program of the organization.
       (ii) Taking any legal action necessary or proper for the 
     recovery of an assessment for, on behalf of, or against 
     producers of a covered drug participating in such program.
       (iii) Performing other such functions as may be necessary 
     or proper to carry out the purpose described in paragraph 
     (2).
       (iv) Ensuring that the members of the board of directors 
     serve without compensation, but are entitled to reimbursement 
     (solely from the funds of the organization) for expenses 
     incurred in the discharge of their duties as members of the 
     board of directors.
       (v) Ensuring that the organization does not use any 
     Federal, State, or local government funds to carry out the 
     purpose described in paragraph (2).
       (vi) Allowing the Secretary--

       (I) to audit the activities of the organization as the 
     Secretary deems necessary; and
       (II) to access any facilities or property of the 
     organization as the Secretary deems necessary to conduct 
     inspections or investigate complaints.

       (5) Nonprofit status.--In carrying out the purpose 
     described in paragraph (2), the board of directors shall 
     establish such policies and bylaws under paragraph (4)(B) as 
     may be necessary to ensure that the organization maintains 
     its status as an organization that--
       (A) is described in subsection (c)(3) of section 501 of the 
     Internal Revenue Code of 1986; and
       (B) is, under subsection (a) of such section, exempt from 
     taxation.
       (6) Contributions to national pharmaceutical stewardship 
     organization not treated as charitable contributions.--A 
     contribution (including any payment or fee) by a producer of 
     a covered drug to the organization or the organization's 
     national pharmaceutical stewardship program shall not be 
     treated as a charitable contribution for purposes of section 
     170 of the Internal Revenue Code of 1986.
       (7) Articles of incorporation.--The Secretary shall ensure 
     that the initial articles of incorporation of the 
     organization are properly filed not later than 60 days after 
     the date of enactment of this title.
       (d) Program Requirements.--To be certified (and maintain 
     certification) under subsection (g) or (h), a national 
     pharmaceutical stewardship program (referred to in this 
     section as a ``program'') shall meet each of the following 
     requirements:
       (1) The program is operated pursuant to an agreement among 
     the producers of covered drugs participating in the program.
       (2) Subject to subsection (e), the costs of the program are 
     fully paid by such producers.
       (3) The program shall not impose any fee on individuals, 
     wholesalers, or retailers for transport and disposal of a 
     covered drug through the program, except to the extent an 
     individual, wholesaler, or retailer is acting as a producer 
     of a covered drug.
       (4) The program is developed with input from the public, 
     including an opportunity for public comment and public 
     hearings.
       (5) The program provides a system to facilitate the 
     collection and disposal of any covered drug that--
       (A) is delivered to the program by the ultimate user of the 
     covered drug in the United States; and
       (B) is household waste as defined under the implementing 
     regulations of subtitle C of title II of the Solid Waste 
     Disposal Act (42 U.S.C. 6901 et seq.; commonly referred to as 
     the ``Resource Conservation and Recovery Act'').
       (6) Collection and disposal of a covered drug through the 
     program's system (described in paragraph (5)) occurs only in 
     a manner that--
       (A) is safe and secure;
       (B) results in the covered drug being rendered 
     unrecoverable in accordance with the requirements for 
     nonretrievable disposal of controlled substances under part 
     1300 of title 21, Code of Federal Regulations (or any 
     successor regulations);
       (C) protects patient information;
       (D) is accessible in every State, county, and city or town, 
     by including--
       (i) at least one collection site that is accessible on an 
     ongoing, year-round basis in every county of every State and 
     at least one additional such collection site for every 30,000 
     county residents, giving preference to retail pharmacies 
     that--

       (I) operate secure collection receptacles in accordance 
     with applicable regulations of the Drug Enforcement 
     Administration; and
       (II) are geographically distributed to provide reasonably 
     convenient and equitable access;

       (ii) if ongoing, year-round collection is not feasible in a 
     specific county or city (as determined by the Secretary)--

       (I) periodic collection events; or
       (II) the provision of prepaid mailing envelopes or 
     deactivation technologies to individuals in such county or 
     city; and

       (iii) prepaid mailing envelopes or deactivation 
     technologies made available to individuals with disabilities 
     and home-bound residents upon request through the program's 
     toll-free telephone number and website under paragraph (8); 
     and
       (E) in the case of a controlled substance, is consistent 
     with section 302(g) of the Controlled Substances Act (21 
     U.S.C. 822(g)).
       (7) The program--
       (A) promotes the collection and disposal of covered drugs 
     through the program; and
       (B) to the extent feasible, works with local recycling 
     facilities and officials to collect and recycle covered drug 
     packaging at collection locations.
       (8) The program ensures that options for collection and 
     disposal of covered drugs through the program are widely 
     understood by customers, pharmacists, retailers, and health 
     care practitioners including doctors and other prescribers, 
     including by--
       (A) maintaining a toll-free telephone number, a website 
     optimized for mobile platforms, and a free mobile application 
     that--
       (i) publicize all currently available collection and 
     disposal options, updated within 30 days of any change; and
       (ii) provide substance use disorder treatment and referral 
     information;
       (B) preparing educational and outreach materials that--
       (i) clearly explain what ``covered drugs'' are collected at 
     each collection site;
       (ii) describe where and how to dispose of covered drugs 
     through the program;
       (iii) address the risks of diversion of covered drugs, 
     including accidental overdose, accidental poisoning, and 
     environmental contamination;
       (iv) raise awareness about the importance of safe storage 
     and disposal; and
       (v) utilize plain language and explanatory images readily 
     understandable by all residents, including individuals with 
     limited English proficiency; and
       (C) providing such materials to pharmacies, health care 
     facilities, and other interested parties for dissemination.
       (9) Every 4 years, the program, using an independent 
     evaluator at the expense of the program, evaluates the 
     effectiveness of its educational and outreach activities 
     under paragraph (8), including with respect to--
       (A) the percentage of residents of the United States who 
     are aware of the program;
       (B) the percentage of residents of the United States who 
     report having access to a collection site, prepaid mail-back 
     envelope, or deactivation system; and
       (C) the extent to which residents of the United States find 
     the program to be convenient.
       (10) Annually, the program, using an independent auditor at 
     the expense of the program, audits relevant information 
     provided in the program's report to the Secretary, 
     including--
       (A) the amount, by weight, of covered drugs collected and 
     disposed of in each State by drop-off site and, if 
     applicable, the total amount by weight collected by mail-back 
     method and disposed of; and
       (B) the income and expenditures of the program.
       (e) Mechanism for Transfer of Costs Among Producers.--To be 
     certified (and maintain certification) under subsection (g) 
     or (h), a program shall include a mechanism that--
       (1) provides for receiving and transferring of funds among 
     all national pharmaceutical stewardship programs that are so 
     certified in such amounts as may be necessary, to be adjusted 
     on at least an annual basis, to ensure that the producers of 
     covered drugs participating in such programs bear the costs 
     of such programs in a manner that provides for a fair and 
     reasonable allocation of such costs across such participants; 
     and
       (2) is specified in a written agreement among all producers 
     of covered drugs.
       (f) Program Reporting Requirements.--
       (1) In general.--To be certified (and maintain 
     certification) under subsection (g) or (h), a program shall 
     agree to submit a report to the Secretary within one year 
     following such certification, and annually thereafter.
       (2) Contents.--Each report submitted by a program under 
     paragraph (1) shall describe the program's activities during 
     the preceding calendar year, including at a minimum--
       (A) a list of producers participating in the program;
       (B) a specification of the amount, by weight, of covered 
     drugs collected and disposed of in each State--
       (i) by drop-off site; and
       (ii) if applicable, by mail-back method;
       (C) a description of the collection system in each State, 
     including the location of each collection site and, if 
     applicable, locations where envelopes for mail-back or 
     deactivation technologies are provided;
       (D) an identification of any safety or security problems 
     which occurred during collection, transportation, or disposal 
     of covered drugs during the preceding calendar year and, with 
     respect to any such problems, a description of the changes 
     which have or will be made to policies, procedures, or 
     tracking mechanisms to alleviate any such problems

[[Page S1153]]

     and to improve safety and security in the future;
       (E) a description of the educational and outreach 
     activities under subsection (d)(8) and the methodology used 
     to evaluate such activities under subsection (d)(9);
       (F) a description of how collected packaging was recycled 
     to the extent feasible, including the recycling facility or 
     facilities used; and
       (G) the total expenditures of the program.
       (3) Procedures.--The Secretary shall establish procedures 
     for reporting under this subsection not later than the date 
     that is one year after the date of the enactment of this 
     title.
       (4) Public availability.--The Secretary shall make each 
     report submitted under this subsection available to the 
     public.
       (g) Certification of National Pharmaceutical Stewardship 
     Organization's Program.--
       (1) Program plan.--To seek certification of its program, 
     the organization shall submit a plan to the Secretary 
     containing such information as the Secretary may require.
       (2) Consideration by secretary.--Upon receipt of a plan 
     under paragraph (1), the Secretary--
       (A) shall consult with the Administrator of the Drug 
     Enforcement Administration on the adequacy of the proposed 
     program's security measures for collection, transportation, 
     and disposal of covered drugs, disposal systems, and 
     mechanisms for secure tracking and handling;
       (B) shall consult with the Administrator of the 
     Environmental Protection Agency on the adequacy of the 
     program's disposal methods and compliance with environmental 
     requirements;
       (C) shall consult with the Secretary of Transportation on 
     the adequacy of the program's compliance with respect to 
     requirements for transport of covered drugs; and
       (D) within 90 days after receipt of the plan, shall--
       (i) certify the program if the Secretary determines it 
     meets the requirements of this section; or
       (ii) reject the proposed program and provide a written 
     explanation of the reasons for such rejection.
       (3) Response to rejection of proposed program.--If the 
     Secretary rejects the organization's proposed program under 
     paragraph (2)(D)(ii), the rejection shall be treated as final 
     agency action, and the organization may--
       (A) revise its proposed program and submit a new plan under 
     paragraph (1); or
       (B) seek judicial review of the rejection not later than 60 
     days after receiving notice of the rejection.
       (4) Term of certification; recertification.--The term of a 
     certification (including a recertification) under paragraph 
     (2)(D)(i) shall be not more than 2 years. To have its program 
     recertified, the organization shall submit a new plan under 
     paragraph (1), including any relevant updates, for approval 
     under paragraph (2)(D)(i).
       (5) Changes to certified program.--Before making any 
     significant change to its certified national pharmaceutical 
     stewardship program, the organization shall seek and obtain 
     approval for the change from the Secretary. Not later than 15 
     days after submission of a request for a change under the 
     preceding sentence, the Secretary shall approve the change or 
     reject the change and provide a written explanation of the 
     reasons for the rejection.
       (6) Submission requirements.--
       (A) Publication.--Not later than 6 months after the date of 
     the enactment of this title, the Secretary shall publish 
     requirements for the submission of program plans under 
     paragraph (1) and requests for changes under paragraph (5), 
     including requirements for the contents of such submissions.
       (B) Failure to publish.--If the Secretary fails to publish 
     such requirements by the deadline specified in subparagraph 
     (A), the requirements of this section applicable to producers 
     of covered drugs shall nonetheless apply.
       (h) Certification of Other Programs.--
       (1) Application.--In lieu of participating in the certified 
     national pharmaceutical stewardship program of the 
     organization, one or more producers of a covered drug may 
     submit a stewardship plan to the Secretary seeking 
     certification of a separate national pharmaceutical 
     stewardship program.
       (2) Governing provisions.--The provisions of subsection (g) 
     shall apply with respect to a stewardship plan for 
     certification of a program under paragraph (1) to the same 
     extent and in the same manner as such provisions apply to a 
     program plan for certification of a program by the 
     organization under subsection (g), except as follows:
       (A) The reference to 90 days in subsection (g)(2)(D) 
     (relating to the period of the Secretary's review of a 
     program plan) shall be treated as a reference to 120 days.
       (B) If the Secretary rejects the proposed stewardship plan, 
     in lieu of submitting a new stewardship plan under paragraph 
     (1) or seeking judicial review of the rejection, the 
     producers may choose to participate in the certified national 
     pharmaceutical stewardship program of the organization.
       (C) The reference to 2 years in subsection (g)(4) (relating 
     to the term of certification) shall be treated as references 
     to 1 year.
       (i) Solicitation of Public Comment To Inform Program 
     Updates.--
       (1) In general.--A certified national product stewardship 
     program shall--
       (A) annually invite comments from stakeholders on their 
     satisfaction with the services provided by the program, 
     including representatives of health care facilities, 
     prescribers, pharmacies and pharmacists, State and local 
     government officials, law enforcement personnel, public 
     health organizations, substance use disorder professionals, 
     waste management stakeholders, environmental organizations, 
     and consumers;
       (B) compile and submit the information received through 
     such comments to the Secretary; and
       (C) use such information in developing updates and changes 
     to the program.
       (2) Use by secretary.--The Secretary shall use information 
     submitted under paragraph (1)(B) in reviewing proposed 
     updates and revisions to certified national pharmaceutical 
     stewardship program plans.
       (3) Guidance.--The Secretary shall issue guidance on the 
     process for complying with this subsection.
       (j) Suspension of Program.--
       (1) Imminent danger.--The Secretary may suspend, in whole 
     or in part, the certification of any national pharmaceutical 
     stewardship program under this section if the Secretary 
     determines that such action is necessary to protect the 
     public from imminent danger.
       (2) Failure to comply.--If the Secretary determines that a 
     national pharmaceutical stewardship is in violation of the 
     requirements of this section, the Secretary--
       (A) within 30 days of learning of the violation, may issue 
     a written warning to the program stating that the program is 
     in violation of this section; and
       (B) if the program has not rectified each violation 
     identified in such warning within 30 days of receipt of such 
     warning, may suspend, in whole or in part, the certification 
     of the program.
       (k) Civil Penalties.--Beginning on the date that is 2 years 
     after the date of enactment of this title, a producer of a 
     covered drug shall be liable for a civil penalty of not more 
     than $50,000 for each calendar day on which, as determined by 
     the Secretary, the producer--
       (1) is not participating in a certified national 
     pharmaceutical program; or
       (2) is in violation of its obligation to contribute to the 
     costs of such a program under subsection (d)(2).
       (l) Regulatory Power.--The Secretary may adopt rules or 
     guidance necessary to implement, administer, and enforce this 
     section. The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, the 
     Administrator of the Drug Enforcement Administration, the 
     Director of National Drug Control Policy, the Secretary of 
     Transportation, and the Commissioner of Food and Drugs, may 
     include in such regulations or guidance any performance 
     standards determined appropriate for implementing the program 
     requirements specified in this section.
       (m) State, Tribal, and Local Regulation.--Nothing in this 
     title prohibits a State, tribal, or local government from 
     imposing any requirements relating to the safe and secure 
     disposal of covered drugs that are more stringent than the 
     requirements of this title.
       (n) Report to Congress.--Not later than 5 years after the 
     date of enactment of this title, the Secretary shall report 
     to the appropriate committees of the Congress concerning the 
     status of the national pharmaceutical stewardship programs 
     under this section, including any recommendations for changes 
     to this section.
       (o) Severability.--If any provision of this section or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this 
     section, and the application of the provisions of such 
     remainder to any person or circumstance, shall not be 
     affected thereby.
       (p) Evaluation.--
       (1) In general.--Not later than 2 years after the date of 
     the enactment of this title, and annually thereafter, the 
     Director of the Office of the National Drug Control Policy, 
     in consultation with the Secretary of Health and Human 
     Services, the Attorney General, and the Administrator of the 
     Drug Enforcement Administration, shall--
       (A) conduct an evaluation of the effectiveness of the 
     national pharmaceutical stewardship programs under this 
     section; and
       (B) submit a report to the Congress on the results of each 
     such evaluation, including recommendations for improving the 
     programs.
       (2) Metrics.--The evaluation under paragraph (1) shall 
     address each of the following:
       (A) Public access to national pharmaceutical stewardship 
     programs under this section.
       (B) Public awareness of such programs, including awareness 
     of the risks of diversion of drugs and awareness of the 
     importance of safe storage and safe disposal of 
     pharmaceuticals.
       (C) Impact of the programs on prescription drug abuse, 
     including analysis of hospital admissions for prescription 
     drug overdoses, per capita deaths due to prescription drug 
     overdoses, and arrests for illegal possession of controlled 
     substances in schedule II, III, IV, or V.
       (q) Annual Fees.--The Secretary may assess, collect, and 
     use, without further appropriation, annual fees from 
     producers of covered drugs to pay the administrative costs of 
     carrying out this section and section 803.
       (r) Delayed Applicability.--In the case of producer that 
     first offers a covered drug for

[[Page S1154]]

     sale in interstate commerce (including by importing the 
     covered drug) after the date of enactment of this title, the 
     requirements of this title apply with respect to such 
     producer beginning on the date that is 180 days after the 
     date on which the producer first offers the covered drug for 
     sale in interstate commerce.

     SEC. 803. COORDINATED EDUCATION CAMPAIGN ON DRUG DISPOSAL.

       Not later than 18 months after the date of the enactment of 
     this title, the Director of the Office of National Drug 
     Control Policy, in consultation with the Secretary of Health 
     and Human Services and the Administrator of the Environmental 
     Protection Agency, shall establish and begin implementation 
     of a coordinated education and outreach campaign--
       (1) to increase awareness among members of the public 
     regarding how drugs may be safely and securely disposed 
     consistent with public safety, public health, and 
     environmental protection through national pharmaceutical 
     stewardship programs established under section 802 and by 
     other appropriate means; and
       (2) to link members of the public to the national and local 
     educational and outreach activities conducted by such 
     programs.
                                 ______