March 2, 2011, Introduced by Reps. Liss, Segal, Barnett and Haugh and referred to the Committee on Health Policy.


     A bill to amend 1978 PA 368, entitled


"Public health code,"


by amending section 7333a (MCL 333.7333a), as added by 2001 PA 231.




     Sec. 7333a. (1) The department shall establish, by rule, an


electronic system for monitoring schedule 2, 3, 4, and 5 controlled


substances dispensed in this state by veterinarians, and by


pharmacists and dispensing prescribers licensed under part 177 or


dispensed to an address in this state by a pharmacy licensed in


this state. The rules shall provide an appropriate electronic


format for the reporting of data including, but not limited to,


patient identifiers, the name of the controlled substance


dispensed, date of dispensing, quantity dispensed, prescriber, and


dispenser. The department shall require a veterinarian, pharmacist,


or dispensing prescriber to utilize the electronic data transmittal


process developed by the department or the department's contractor.


A veterinarian, pharmacist, or dispensing prescriber shall not be


required to pay a new fee dedicated to the operation of the


electronic monitoring system and shall not incur any additional


costs solely related to the transmission of data to the department.


The rules promulgated under this subsection shall exempt both of


the following circumstances from the reporting requirements:


     (a) The administration of a controlled substance directly to a




     (b) The dispensing from a health facility or agency licensed


under article 17 of a controlled substance by a dispensing


prescriber in a quantity adequate to treat a patient for not more


than 48 hours.


     (2) Notwithstanding any practitioner-patient privilege, the


director of the department may provide data obtained under this


section to all of the following:


     (a) A designated representative of a board responsible for the


licensure, regulation, or discipline of a practitioner, pharmacist,


or other person who is authorized to prescribe, administer, or


dispense controlled substances.


     (b) An employee or agent of the department.


     (c) A state, federal, or municipal employee or agent whose


duty is to enforce the laws of this state or the United States


relating to drugs.


     (d) A state-operated medicaid program.


     (e) A state, federal, or municipal employee who is the holder


of a search warrant or subpoena properly issued for the records.


     (f) A practitioner or pharmacist who requests information and


certifies that the requested information is for the purpose of


providing medical or pharmaceutical treatment to a bona fide


current patient.


     (g) An individual with whom the department has contracted


under subsection (9) (8).


     (h) The health care payment or benefit provider for the


purposes of ensuring patient safety and investigating fraud and


abuse. As used in this subdivision, "health care payment or benefit


provider" means a person that provides health benefits, coverage,


or insurance in this state, including a health insurance company, a


nonprofit health care corporation, a health maintenance


organization, a multiple employer welfare arrangement, a medicaid


contracted health plan, or any other person providing a plan of


health benefits, coverage, or insurance subject to state insurance




     (3) Except as otherwise provided in this part, information


submitted under this section shall be used only for bona fide drug-


related criminal investigatory or evidentiary purposes or for the


investigatory or evidentiary purposes in connection with the


functions of a disciplinary subcommittee or 1 or more of the


licensing or registration boards created in article 15.


     (4) A person who receives data or any report under subsection


(2) containing any patient identifiers of the system from the


department shall not provide it to any other person or entity


except by order of a court of competent jurisdiction.


     (5) Except as otherwise provided in this subsection, reporting


under subsection (1) is mandatory for a veterinarian, pharmacist,


and dispensing prescriber. However, the department may issue a


written waiver of the electronic reporting requirement to a


veterinarian, pharmacist, or dispensing prescriber who establishes


grounds that he or she is unable to use the electronic monitoring


system. The department shall require the applicant for the waiver


to report the required information in a manner approved by the




     (6) In addition to the information required to be reported


annually under section 7112(3), the controlled substances advisory


commission shall include in the report information on the


implementation and effectiveness of the electronic monitoring




     (7) The department, in consultation with the controlled


substances advisory commission, the Michigan board of pharmacy, the


Michigan board of medicine, the Michigan board of osteopathic


medicine and surgery, the Michigan state police, and appropriate


medical professional associations, shall examine the need for and


may promulgate rules for the production of a prescription form on


paper that minimizes the potential for forgery. The rules shall not


include any requirement that sequential numbers, bar codes, or


symbols be affixed, printed, or written on a prescription form or


that the prescription form be a state produced prescription form.


In examining the need for rules for the production of a


prescription form on paper that minimizes the potential for


forgery, the department shall consider and identify the following:


     (a) Cost, benefits, and barriers.


     (b) Overall cost-benefit analysis.


     (c) Compatibility with the electronic monitoring system


required under this section.


     (8) The department shall report its findings under subsection


(7) to the members of the house and senate standing committees


having jurisdiction over health policy issues not later than


October 1, 2002, and before the electronic monitoring system


required under this section becomes operational.


     (8) (9) The department may enter into 1 or more contractual


agreements for the administration of this section.


     (9) (10) The department, all law enforcement officers, all


officers of the court, and all regulatory agencies and officers, in


using the data for investigative or prosecution purposes, shall


consider the nature of the prescriber's and dispenser's practice


and the condition for which the patient is being treated.


     (10) (11) The data and any report containing any patient


identifiers obtained therefrom is not a public record, and is not


subject to the freedom of information act, 1976 PA 442, MCL 15.231


to 15.246.


     (11) (12) As used in this section, "department" means the


department of consumer and industry services community health.