Heroin and Opioid Abuse Prevention and Treatment Act of 2016

Summary: Heroin and Opioid Abuse Prevention and Treatment Act of 2016  This bill amends the Internal Revenue Code to require manufacturers, producers, and importers of active opioids to pay an excise tax of one cent per milligram of opioid.  The bill also amends the Public Health Service Act to require the Department of Health and Human Services (HHS) to provide grants to states for: (1) research on opioids (including heroin), and (2) opioid abuse prevention and treatment.  The Department of the Treasury must transfer an amount equal to the revenue collected from the tax to HHS to carry out this bill. The bill makes the funds available without further appropriation and designates the funding as an emergency requirement under the Statutory Pay-As-You-Go Act of 2010 (PAYGO). 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Heroin and Opioid Abuse Prevention 
and Treatment Act of 2016''.

SEC. 2. EXCISE TAX ON OPIOIDS.

    (a) In General.--Subchapter E of chapter 32 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 4192. OPIOIDS.

    ``(a) In General.--There is hereby imposed on the manufacturer, 
producer, or importer of any taxable active opioid a tax equal to the 
amount determined under subsection (b).
    ``(b) Amount Determined.--The amount determined under this 
subsection with respect to a manufacturer, producer, or importer for a 
calendar year is 1 cent per milligram of taxable active opioid in the 
production or manufacturing quota determined for such manufacturer, 
producer, or importer for the calendar year under section 306 of the 
Controlled Substances Act.
    ``(c) Taxable Active Opioid.--For purposes of this section--
            ``(1) In general.--The term `taxable active opioid' means 
        any controlled substance (as defined in section 102 of the 
        Controlled Substances Act) manufactured in the United States 
        which is opium, an opiate, or any derivative thereof. Such term 
        excludes a narcotic drug for maintenance treatment or 
        detoxification treatment if, to dispense the drug, a 
        practitioner must obtain a separate registration under section 
        303(g) of the Controlled Substances Act.
            ``(2) Other ingredients.--In the case of a product that 
        includes a taxable active opioid and another ingredient, 
        subsection (a) shall apply only to the portion of such product 
        that is a taxable active opioid.''.
    (b) Clerical Amendments.--
            (1) The heading of subchapter E of chapter 32 of the 
        Internal Revenue Code of 1986 is amended by striking ``Medical 
        Devices'' and inserting ``Other Medical Products''.
            (2) The table of subchapters for chapter 32 of such Code is 
        amended by striking the item relating to subchapter E and 
        inserting the following new item:

               ``subchapter e. other medical products''.

            (3) The table of sections for subchapter E of chapter 32 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 4192. Opioids.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after the date of the enactment of 
this Act.

SEC. 3. GRANTS TO STATES FOR PREVENTION AND TREATMENT OF OPIOID 
              (INCLUDING HEROIN) ABUSE.

    (a) In General.--The Public Health Service Act is amended by 
inserting after section 399V-6 (42 U.S.C. 280g-17) the following new 
section:

``SEC. 399V-7. PREVENTION AND TREATMENT OF OPIOID (INCLUDING HEROIN) 
              ABUSE.

    ``(a) In General.--The Secretary shall provide--
            ``(1) grants to States for research on opioids (including 
        heroin); and
            ``(2) grants to States for opioid abuse prevention and 
        treatment, which may include--
                    ``(A) establishing new addiction treatment 
                facilities for opioid addicts;
                    ``(B) establishing sober living facilities for 
                recovering opioid addicts;
                    ``(C) recruiting and increasing reimbursement for 
                certified mental health providers providing opioid 
                abuse treatment in medically underserved communities or 
                communities with high rates of opioid abuse;
                    ``(D) expanding access to long-term, residential 
                treatment programs for opioid addicts and recovering 
                addicts;
                    ``(E) establishing or operating support programs 
                that offer employment services, housing, and other 
                support services for recovering opioid addicts;
                    ``(F) establishing or operating housing for 
                children whose parents are participating in opioid 
                abuse treatment programs;
                    ``(G) establishing or operating facilities to 
                provide care for babies born with neonatal abstinence 
                syndrome;
                    ``(H) establishing or operating controlled opioid 
                take-back programs; and
                    ``(I) other opioid abuse prevention and treatment 
                programs, as the Secretary determines appropriate.
    ``(b) Appropriation of Funds.--From time to time, beginning in the 
second calendar year that begins after the date of enactment of this 
section, the Secretary of the Treasury shall transfer from the general 
fund of the Treasury an amount equal to the total amount of taxes 
collected under section 4192 of the Internal Revenue Code of 1986 to 
the Secretary of Health and Human Services to carry out this section. 
Amounts transferred under this subsection shall remain available 
without further appropriation until expended.''.
    (b) Emergency Designation.--The amounts made available by 
amendments made by this section are designated as an emergency 
requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act 
of 2010 (2 U.S.C. 933(g)).