HOUSE BILL No. 4679

 

April 26, 2007, Introduced by Reps. Sak and Dean and referred to the Committee on Health Policy.

 

      A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 7105, 7106, 7303a, 7311, 7401, 7405, 16105,

 

16106, 16221, 16226, 16245, 17751, 17759, 17763, and 17766 (MCL

 

333.7105, 333.7106, 333.7303a, 333.7311, 333.7401, 333.7405,

 

333.16105, 333.16106, 333.16221, 333.16226, 333.16245, 333.17751,

 

333.17759, 333.17763, and 333.17766), sections 7105 and 7311 as

 

amended by 1993 PA 80, section 7303a as added by 1993 PA 305,

 

section 7401 as amended by 2002 PA 710, sections 7405, 17751, and

 

17763 as amended by 2006 PA 672, sections 16105 and 16106 as

 

amended by 2002 PA 643, sections 16221 and 16226 as amended by

 

2004 PA 214, section 16245 as amended by 2006 PA 26, and section

 


17766 as amended by 2006 PA 416.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 7105. (1) "Deliver" or "delivery" means the actual,

 

 2  constructive, or attempted transfer from 1 person to another of a

 

 3  controlled substance, whether or not there is an agency

 

 4  relationship.

 

 5        (2) "Disciplinary subcommittee" means the disciplinary

 

 6  subcommittee for the board of pharmacy appointed under section

 

 7  16216.

 

 8        (3) "Dispense" means to deliver or issue a controlled

 

 9  substance to an ultimate user or research subject by or pursuant

 

10  to the lawful order of a practitioner, including the prescribing,

 

11  administering, or compounding necessary to prepare the substance

 

12  for the delivery or issuance.

 

13        (4) "Dispenser" means a practitioner who dispenses.

 

14        (5) "Distribute" means to deliver other than by

 

15  administering or dispensing a controlled substance.

 

16        (6) "Distributor" means a person who distributes.

 

17        (7) "Drug" means a substance recognized as a drug in the

 

18  official United States pharmacopoeia, official homeopathic

 

19  pharmacopoeia of the United States, or official national

 

20  formulary, or any supplement to any of them; a substance intended

 

21  for use in the diagnosis, cure, mitigation, treatment, or

 

22  prevention of disease in human beings or animals; a substance

 

23  other than food intended to affect the structure or any function

 

24  of the body of human beings or animals; or, a substance intended

 

25  for use as a component of any article specified in this

 


 1  subsection. It does not include a device or its components,

 

 2  parts, or accessories.

 

 3        (8) "Harmful controlled substance" means a controlled

 

 4  substance intended for use by human beings that is harmful

 

 5  because of its toxicity, habit-forming nature, or other potential

 

 6  adverse effect, the method of its use, or the collateral measures

 

 7  necessary to its safe and effective use, and that is designated

 

 8  as harmful by the board according to rule.

 

 9        (9) (8) "Human consumption" means application, injection,

 

10  inhalation, or ingestion by a human being.

 

11        Sec. 7106. (1) "Immediate precursor" means a substance which

 

12  that the administrator has found to be and by rule designates as

 

13  being the principal compound commonly used or produced primarily

 

14  for use, and which that is an immediate chemical intermediary

 

15  used or likely to be used in the manufacture of a controlled

 

16  substance, the control of which is necessary to prevent, curtail,

 

17  or limit manufacture.

 

18        (2) "Internet" means that term as defined in section 230 of

 

19  title II of the communications act of 1934, 47 USC 230.

 

20        (3) (2) "Manufacture" means the production, preparation,

 

21  propagation, compounding, conversion, or processing of a

 

22  controlled substance, directly or indirectly by extraction from

 

23  substances of natural origin, or independently by means of

 

24  chemical synthesis, or by a combination of extraction and

 

25  chemical synthesis. It Manufacture includes the packaging or

 

26  repackaging of the substance or labeling or relabeling of its

 

27  container, except that it the term does not include the

 


 1  following:

 

 2        (a) The preparation or compounding of a controlled substance

 

 3  by an individual for his or her own use.

 

 4        (b) The preparation, compounding packaging, or labeling of a

 

 5  controlled substance:

 

 6        (i) By a practitioner as an incident to the practitioner's

 

 7  administering or dispensing of a controlled substance in the

 

 8  course of his or her professional practice.

 

 9        (ii) By a practitioner, or by the practitioner's authorized

 

10  agent under his or her supervision, for the purpose of, or as an

 

11  incident to, research, teaching, or chemical analysis and not for

 

12  sale.

 

13        (4) (3) "Marihuana" means all parts of the plant Canabis

 

14  sativa L., growing or not; the seeds thereof; the resin extracted

 

15  from any part of the plant; and every compound, manufacture,

 

16  salt, derivative, mixture, or preparation of the plant or its

 

17  seeds or resin. It does not include the mature stalks of the

 

18  plant, fiber produced from the stalks, oil or cake made from the

 

19  seeds of the plant, any other compound, manufacture, salt,

 

20  derivative, mixture, or preparation of the mature stalks, except

 

21  the resin extracted therefrom, fiber, oil or cake, or the

 

22  sterilized seed of the plant which that is incapable of

 

23  germination.

 

24        Sec. 7303a. (1) A prescriber who holds a controlled

 

25  substances license may administer or dispense a controlled

 

26  substance listed in schedules 2 to 5 without a separate

 

27  controlled substances license for those activities.

 


 1        (2) Before prescribing or dispensing a controlled substance

 

 2  to a patient, a licensed prescriber shall ask the patient about

 

 3  other controlled substances the patient may be using. The

 

 4  prescriber shall record the patient's response in the patient's

 

 5  medical or clinical record.

 

 6        (3) Before prescribing or dispensing a harmful controlled

 

 7  substance, a licensed prescriber shall conduct a good faith prior

 

 8  examination of the patient for whom that controlled substance is

 

 9  being prescribed or dispensed and expressly indicate on the

 

10  original prescription that an examination was conducted. A

 

11  prescriber shall not dispense a harmful controlled substance via

 

12  the internet without a prescription that expressly indicates that

 

13  the prescription is issued pursuant to a good faith prior

 

14  examination conducted by the original prescriber.

 

15        (4) (3) A licensed prescriber who dispenses controlled

 

16  substances shall maintain all of the following records separately

 

17  from other prescription records:

 

18        (a) All invoices and other acquisition records for each

 

19  controlled substance acquired by the prescriber for not less than

 

20  5 years after the date the prescriber acquires the controlled

 

21  substance.

 

22        (b) A log of all controlled substances dispensed by the

 

23  prescriber for not less than 5 years after the date the

 

24  controlled substance is dispensed.

 

25        (c) Records of all other dispositions of controlled

 

26  substances under the licensee's control for not less than 5 years

 

27  after the date of the disposition.

 


 1        (5) (4) The requirement under section 7303 for a license is

 

 2  waived in the following circumstances:

 

 3        (a) When a controlled substance listed in schedules 2 to 5

 

 4  is administered on the order of a licensed prescriber by an

 

 5  individual who is licensed under article 15 as a practical nurse,

 

 6  a registered professional nurse, or a physician's assistant.

 

 7        (b) When methadone or a methadone congener is dispensed on

 

 8  the order of a licensed prescriber in a methadone treatment

 

 9  program licensed under article 6 or when a controlled substance

 

10  listed in schedules 2 to 5 is dispensed on the order of a

 

11  licensed prescriber in a hospice rendering emergency care

 

12  services in a patient's home as described in section 17746 by a

 

13  registered professional nurse or a physician's assistant licensed

 

14  under article 15.

 

15        Sec. 7311. (1) A license under section 7306 to manufacture,

 

16  distribute, prescribe, or dispense a controlled substance may be

 

17  denied, suspended, or revoked or a licensee may be fined,

 

18  reprimanded, ordered to perform community service or make

 

19  restitution, or placed on probation by the disciplinary

 

20  subcommittee upon a finding that an applicant for licensure or a

 

21  licensee is subject to any 1 or more of the following:

 

22        (a) The applicant or licensee has furnished false or

 

23  fraudulent material information in an application filed under

 

24  this article.

 

25        (b) The applicant's or licensee's federal registration to

 

26  manufacture, distribute, or dispense controlled substances has

 

27  been surrendered, suspended, or revoked.

 


 1        (c) The applicant or licensee has promoted a controlled

 

 2  substance to the general public.

 

 3        (d) The applicant or licensee is not a practitioner,

 

 4  manufacturer, or distributor.

 

 5        (e) The applicant or licensee has not maintained effective

 

 6  controls against diversion of controlled substances to other than

 

 7  legitimate and professionally recognized therapeutic, scientific,

 

 8  or industrial uses.

 

 9        (f) The applicant or licensee is not in compliance with

 

10  applicable federal, state, and local laws.

 

11        (g) The applicant or licensee has manufactured, distributed,

 

12  or dispensed a controlled substance for other than legitimate or

 

13  professionally recognized therapeutic, scientific, or industrial

 

14  purposes or outside the scope of practice of the practitioner-

 

15  licensee or applicant.

 

16        (h) The applicant or licensee has prescribed or dispensed a

 

17  harmful controlled substance via the internet without a

 

18  prescription that expressly indicates that the prescription is

 

19  issued pursuant to a good faith prior examination of the patient

 

20  for whom that controlled substance was prescribed or dispensed.

 

21        (i) (h) The applicant or licensee has violated or attempted

 

22  to violate, directly or indirectly, assisted in or abetted the

 

23  violation of, or conspired to violate this article or rules a

 

24  rule of the administrator promulgated under this article.

 

25        (2) The disciplinary subcommittee may limit a license under

 

26  subsection (1) to a particular controlled substance.

 

27        (3) A license under section 7306 to manufacture, distribute,

 


 1  prescribe, or dispense a controlled substance shall be denied or

 

 2  revoked by the disciplinary subcommittee if the applicant or

 

 3  licensee has been convicted of a felony under a state or federal

 

 4  law relating to a controlled substance.

 

 5        (4) If the disciplinary subcommittee suspends or revokes a

 

 6  license or if a license is void under subsection (6), all

 

 7  controlled substances owned or possessed by the licensee at the

 

 8  time of suspension or the effective date of the revocation order

 

 9  may be placed under seal or seized at the discretion of the

 

10  disciplinary subcommittee. The department shall not dispose of

 

11  controlled substances under seal or seizure until the time for

 

12  taking an appeal has elapsed or until all appeals have been

 

13  concluded, unless a court, upon application therefor, orders the

 

14  sale of perishable controlled substances and the deposit of the

 

15  proceeds of the sale with the court. Upon a revocation order

 

16  becoming final or after a license becomes void under subsection

 

17  (6) because the licensee's license to practice is revoked under

 

18  article 15 and that revocation order becomes final, the

 

19  disciplinary subcommittee may order all controlled substances

 

20  under seal or seizure to be forfeited to this state.

 

21        (5) The disciplinary subcommittee shall promptly notify the

 

22  bureau of all orders suspending or revoking a license and all

 

23  forfeitures of controlled substances.

 

24        (6) A license under section 7306 to manufacture, distribute,

 

25  prescribe, or dispense a controlled substance is automatically

 

26  void if the licensee's license to practice is suspended or

 

27  revoked under article 15.

 


 1        (7) Subject to subsection (8), if the administrator or the

 

 2  disciplinary subcommittee finds that an applicant or licensee has

 

 3  been convicted of a misdemeanor or a felony under a state or

 

 4  federal law relating to a controlled substance, the applicant or

 

 5  licensee shall not have a direct financial interest in or be

 

 6  employed by a person who is licensed under this article to

 

 7  manufacture, distribute, prescribe, or dispense a controlled

 

 8  substance in a capacity in which the individual has direct access

 

 9  to controlled substances for a period of not less than 3 years

 

10  after the date of conviction. An individual who violates this

 

11  subsection is subject to a civil fine of not more than $25,000.00

 

12  in a proceeding in the circuit court.

 

13        (8) Subsection (7) applies only to a conviction for a

 

14  misdemeanor that is directly related to the manufacture,

 

15  delivery, possession, possession with intent to manufacture or

 

16  deliver, use, distribution, prescription, or dispensing of a

 

17  controlled substance. Subsection (7) does not apply to a

 

18  conviction for a misdemeanor based upon an unintentional error or

 

19  omission involving a clerical or record-keeping function.

 

20        Sec. 7401. (1) Except as authorized by this article, a

 

21  person shall not manufacture, create, deliver, or possess with

 

22  intent to manufacture, create, or deliver a controlled substance,

 

23  a prescription form, or a counterfeit prescription form. A

 

24  practitioner licensed by the administrator under this article

 

25  shall not dispense, prescribe, or administer a controlled

 

26  substance for other than legitimate and professionally recognized

 

27  therapeutic or scientific purposes or outside the scope of

 


 1  practice of the practitioner, licensee, or applicant. A

 

 2  practitioner licensed by the administrator under this article

 

 3  shall not dispense or administer a harmful controlled substance

 

 4  for a patient via the internet without a prescription that

 

 5  expressly indicates that the prescription is issued pursuant to a

 

 6  good faith examination conducted by the prescriber.

 

 7        (2) A person who violates this section as to:

 

 8        (a) A controlled substance classified in schedule 1 or 2

 

 9  that is a narcotic drug or a drug described in section 7214(a)(iv)

 

10  and:

 

11        (i) Which That is in an amount of 1,000 grams or more of any

 

12  mixture containing that substance is guilty of a felony

 

13  punishable by imprisonment for life or any term of years or a

 

14  fine of not more than $1,000,000.00, or both.

 

15        (ii) Which That is in an amount of 450 grams or more, but

 

16  less than 1,000 grams, of any mixture containing that substance

 

17  is guilty of a felony and punishable by imprisonment for not more

 

18  than 30 years or a fine of not more than $500,000.00, or both.

 

19        (iii) Which That is in an amount of 50 grams or more, but less

 

20  than 450 grams, of any mixture containing that substance is

 

21  guilty of a felony punishable by imprisonment for not more than

 

22  20 years or a fine of not more than $250,000.00, or both.

 

23        (iv) Which That is in an amount less than 50 grams, of any

 

24  mixture containing that substance is guilty of a felony

 

25  punishable by imprisonment for not more than 20 years or a fine

 

26  of not more than $25,000.00, or both.

 

27        (b) Either of the following:

 


 1        (i) A substance described in section 7214(c)(ii) is guilty of

 

 2  a felony punishable by imprisonment for not more than 20 years or

 

 3  a fine of not more than $25,000.00, or both.

 

 4        (ii) Any other controlled substance classified in schedule 1,

 

 5  2, or 3, except marihuana is guilty of a felony punishable by

 

 6  imprisonment for not more than 7 years or a fine of not more than

 

 7  $10,000.00, or both.

 

 8        (c) A substance classified in schedule 4 is guilty of a

 

 9  felony punishable by imprisonment for not more than 4 years or a

 

10  fine of not more than $2,000.00, or both.

 

11        (d) Marihuana or a mixture containing marihuana is guilty of

 

12  a felony punishable as follows:

 

13        (i) If the amount is 45 kilograms or more, or 200 plants or

 

14  more, by imprisonment for not more than 15 years or a fine of not

 

15  more than $10,000,000.00, or both.

 

16        (ii) If the amount is 5 kilograms or more but less than 45

 

17  kilograms, or 20 plants or more but fewer than 200 plants, by

 

18  imprisonment for not more than 7 years or a fine of not more than

 

19  $500,000.00, or both.

 

20        (iii) If the amount is less than 5 kilograms or fewer than 20

 

21  plants, by imprisonment for not more than 4 years or a fine of

 

22  not more than $20,000.00, or both.

 

23        (e) A substance classified in schedule 5 is guilty of a

 

24  felony punishable by imprisonment for not more than 2 years or a

 

25  fine of not more than $2,000.00, or both.

 

26        (f) A prescription form or a counterfeit prescription form

 

27  is guilty of a felony punishable by imprisonment for not more

 


 1  than 7 years or a fine of not more than $5,000.00, or both.

 

 2        (3) A term of imprisonment imposed under subsection (2)(a)

 

 3  may be imposed to run consecutively with any term of imprisonment

 

 4  imposed for the commission of another felony.

 

 5        (4) If an individual was sentenced to lifetime probation

 

 6  under subsection (2)(a)(iv) before the effective date of the

 

 7  amendatory act that added this subsection and the individual has

 

 8  served 5 or more years of that probationary period, the probation

 

 9  officer for that individual may recommend to the court that the

 

10  court discharge the individual from probation. If an individual's

 

11  probation officer does not recommend discharge as provided in

 

12  this subsection, with notice to the prosecutor, the individual

 

13  may petition the court seeking resentencing under the court

 

14  rules. The court may discharge an individual from probation as

 

15  provided in this subsection. An individual may file more than 1

 

16  motion seeking resentencing under this subsection.

 

17        (5) As used in this section, "plant" means a marihuana plant

 

18  that has produced cotyledons or a cutting of a marihuana plant

 

19  that has produced cotyledons.

 

20        Sec. 7405. (1) A person:

 

21        (a) Who is licensed by the administrator under this article

 

22  shall not distribute, prescribe, or dispense a controlled

 

23  substance in violation of section 7333.

 

24        (b) Who is a licensee shall not manufacture a controlled

 

25  substance not authorized by his or her license or distribute,

 

26  prescribe, or dispense a controlled substance not authorized by

 

27  his or her license to another licensee or other authorized

 


 1  person, except as authorized by rules promulgated by the

 

 2  administrator.

 

 3        (c) Shall not refuse an entry into any premises for an

 

 4  inspection authorized by this article.

 

 5        (d) Shall not knowingly keep or maintain a store, shop,

 

 6  warehouse, dwelling, building, vehicle, boat, aircraft, or other

 

 7  structure or place, that is frequented by persons using

 

 8  controlled substances in violation of this article for the

 

 9  purpose of using controlled substances, or that is used for

 

10  keeping or selling controlled substances in violation of this

 

11  article.

 

12        (e) Who is a practitioner shall not dispense a prescription

 

13  for a controlled substance written and signed or transmitted by

 

14  facsimile, electronic transmission, or other means of

 

15  communication by a physician prescriber licensed to practice in a

 

16  state other than Michigan, unless the prescription is issued by a

 

17  physician prescriber who resides adjacent to the land border

 

18  between this state and an adjoining state or resides in Illinois

 

19  or Minnesota and who is authorized under the laws of that state

 

20  to practice medicine or osteopathic medicine and surgery and to

 

21  prescribe controlled substances and whose practice may extend

 

22  into this state, but who does not maintain an office or designate

 

23  a place to meet patients or receive calls in this state.

 

24        (f) Who is a practitioner shall not dispense a prescription

 

25  for a harmful controlled substance via the internet without a

 

26  prescription that expressly indicates that the prescription is

 

27  issued pursuant to a good faith prior examination conducted by

 


 1  the prescriber.

 

 2        (2) A person who violates subsection (1) is subject to the

 

 3  penalties prescribed in section 7406.

 

 4        Sec. 16105. (1) "Health occupation" means a health related

 

 5  vocation, calling, occupation, or employment performed by an

 

 6  individual whether or not the individual is licensed or

 

 7  registered under this article.

 

 8        (2) "Health profession" means a vocation, calling,

 

 9  occupation, or employment performed by an individual acting

 

10  pursuant to a license or registration issued under this article.

 

11        (3) "Health profession specialty field" means an area of

 

12  practice established under this article that is within the scope

 

13  of activities, functions, and duties of a licensed health

 

14  profession and that requires advanced education and training

 

15  beyond that required for initial licensure.

 

16        (4) "Health profession specialty field license" means an

 

17  authorization to use a title issued to a licensee who has met

 

18  qualifications established by the Michigan board of dentistry for

 

19  registration in a health profession specialty field. An

 

20  individual who holds a dental specialty certification on the

 

21  effective date of the amendatory act that added this subsection

 

22  is considered to hold a health profession specialty field license

 

23  in that speciality and may obtain renewal of the health

 

24  profession specialty field license in that speciality on the

 

25  expiration date of the specialty certification. The health

 

26  profession specialty field license is not a license as that term

 

27  is defined in section 16106(2) 16106.

 


 1        (5) "Health profession subfield" means an area of practice

 

 2  established under this article which is within the scope of the

 

 3  activities, functions, and duties of a licensed health

 

 4  profession, and requires less comprehensive knowledge and skill

 

 5  than is required to practice the full scope of the health

 

 6  profession.

 

 7        Sec. 16106. (1) "Incompetence" means a departure from, or

 

 8  failure to conform to, minimal standards of acceptable and

 

 9  prevailing practice for a health profession, whether or not

 

10  actual injury to an individual occurs.

 

11        (2) "Internet" means that term as defined in section 230 of

 

12  title II of the communications act of 1934, 47 USC 230.

 

13        (3) (2) "License", except as otherwise provided in this

 

14  subsection, means an authorization issued under this article to

 

15  practice where practice would otherwise be unlawful. License

 

16  includes an authorization to use a designated title which use

 

17  would otherwise be prohibited under this article and may be used

 

18  to refer to a health profession subfield license, limited

 

19  license, or a temporary license. For purposes of the definition

 

20  of "prescriber" contained in section 17708(2) 17708 only, license

 

21  includes an authorization issued under the laws of another state,

 

22  or the country of Canada to practice in that state or in the

 

23  country of Canada, where practice would otherwise be unlawful,

 

24  and is limited to a licensed doctor of medicine, a licensed

 

25  doctor of osteopathic medicine and surgery, or another licensed

 

26  health professional acting under the delegation and using,

 

27  recording, or otherwise indicating the name of the delegating

 


 1  licensed doctor of medicine or licensed doctor of osteopathic

 

 2  medicine and surgery. License does not include a health

 

 3  profession specialty field license.

 

 4        (4) (3) "Licensee", as used in a part that regulates a

 

 5  specific health profession, means an individual to whom a license

 

 6  is issued under that part, and as used in this part means each

 

 7  licensee regulated by this article.

 

 8        (5) (4) "Limitation" means an action by which a board

 

 9  imposes restrictions or conditions, or both, on a license.

 

10        (6) (5) "Limited license" means a license to which

 

11  restrictions or conditions, or both, as to scope of practice,

 

12  place of practice, supervision of practice, duration of licensed

 

13  status, or type or condition of patient or client served are

 

14  imposed by a board.

 

15        Sec. 16221. The department may investigate activities

 

16  related to the practice of a health profession by a licensee, a

 

17  registrant, or an applicant for licensure or registration. The

 

18  department may hold hearings, administer oaths, and order

 

19  relevant testimony to be taken and shall report its findings to

 

20  the appropriate disciplinary subcommittee. The disciplinary

 

21  subcommittee shall proceed under section 16226 if it finds that 1

 

22  or more of the following grounds exist:

 

23        (a) A violation of general duty, consisting of negligence or

 

24  failure to exercise due care, including negligent delegation to

 

25  or supervision of employees or other individuals, whether or not

 

26  injury results, or any conduct, practice, or condition that

 

27  impairs, or may impair, the ability to safely and skillfully

 


 1  practice the health profession.

 

 2        (b) Personal disqualifications, consisting of 1 or more of

 

 3  the following:

 

 4        (i) Incompetence.

 

 5        (ii) Subject to sections 16165 to 16170a, substance abuse as

 

 6  defined in section 6107.

 

 7        (iii) Mental or physical inability reasonably related to and

 

 8  adversely affecting the licensee's ability to practice in a safe

 

 9  and competent manner.

 

10        (iv) Declaration of mental incompetence by a court of

 

11  competent jurisdiction.

 

12        (v) Conviction of a misdemeanor punishable by imprisonment

 

13  for a maximum term of 2 years; a misdemeanor involving the

 

14  illegal delivery, possession, or use of a controlled substance;

 

15  or a felony. A certified copy of the court record is conclusive

 

16  evidence of the conviction.

 

17        (vi) Lack of good moral character.

 

18        (vii) Conviction of a criminal offense under sections 520b to

 

19  520g of the Michigan penal code, 1931 PA 328, MCL 750.520b to

 

20  750.520g. A certified copy of the court record is conclusive

 

21  evidence of the conviction.

 

22        (viii) Conviction of a violation of section 492a of the

 

23  Michigan penal code, 1931 PA 328, MCL 750.492a. A certified copy

 

24  of the court record is conclusive evidence of the conviction.

 

25        (ix) Conviction of a misdemeanor or felony involving fraud in

 

26  obtaining or attempting to obtain fees related to the practice of

 

27  a health profession. A certified copy of the court record is

 


 1  conclusive evidence of the conviction.

 

 2        (x) Final adverse administrative action by a licensure,

 

 3  registration, disciplinary, or certification board involving the

 

 4  holder of, or an applicant for, a license or registration

 

 5  regulated by another state or a territory of the United States,

 

 6  by the United States military, by the federal government, or by

 

 7  another country. A certified copy of the record of the board is

 

 8  conclusive evidence of the final action.

 

 9        (xi) Conviction of a misdemeanor that is reasonably related

 

10  to or that adversely affects the licensee's ability to practice

 

11  in a safe and competent manner. A certified copy of the court

 

12  record is conclusive evidence of the conviction.

 

13        (xii) Conviction of a violation of section 430 of the

 

14  Michigan penal code, 1931 PA 328, MCL 750.430. A certified copy

 

15  of the court record is conclusive evidence of the conviction.

 

16        (c) Prohibited acts, consisting of 1 or more of the

 

17  following:

 

18        (i) Fraud or deceit in obtaining or renewing a license or

 

19  registration.

 

20        (ii) Permitting the license or registration to be used by an

 

21  unauthorized person.

 

22        (iii) Practice outside the scope of a license.

 

23        (iv) Obtaining, possessing, or attempting to obtain or

 

24  possess a controlled substance as defined in section 7104 or a

 

25  drug as defined in section 7105 without lawful authority; or

 

26  selling, prescribing, giving away, or administering drugs for

 

27  other than lawful diagnostic or therapeutic purposes.

 


 1        (d) Unethical business practices, consisting of 1 or more of

 

 2  the following:

 

 3        (i) False or misleading advertising.

 

 4        (ii) Dividing fees for referral of patients or accepting

 

 5  kickbacks on medical or surgical services, appliances, or

 

 6  medications purchased by or in behalf of patients.

 

 7        (iii) Fraud or deceit in obtaining or attempting to obtain

 

 8  third party reimbursement.

 

 9        (e) Unprofessional conduct, consisting of 1 or more of the

 

10  following:

 

11        (i) Misrepresentation to a consumer or patient or in

 

12  obtaining or attempting to obtain third party reimbursement in

 

13  the course of professional practice.

 

14        (ii) Betrayal of a professional confidence.

 

15        (iii) Promotion for personal gain of an unnecessary drug,

 

16  device, treatment, procedure, or service.

 

17        (iv) Either of the following:

 

18        (A) A requirement by a licensee other than a physician that

 

19  an individual purchase or secure a drug, device, treatment,

 

20  procedure, or service from another person, place, facility, or

 

21  business in which the licensee has a financial interest.

 

22        (B) A referral by a physician for a designated health

 

23  service that violates section 1877 of part D of title XVIII of

 

24  the social security act, 42 USC 1395nn, or a regulation

 

25  promulgated under that section. Section 1877 of part D of title

 

26  XVIII of the social security act, 42 USC 1395nn, and the

 

27  regulations promulgated under that section, as they exist on June

 


 1  3, 2002, are incorporated by reference for purposes of this

 

 2  subparagraph. A disciplinary subcommittee shall apply section

 

 3  1877 of part D of title XVIII of the social security act, 42 USC

 

 4  1395nn, and the regulations promulgated under that section

 

 5  regardless of the source of payment for the designated health

 

 6  service referred and rendered. If section 1877 of part D of title

 

 7  XVIII of the social security act, 42 USC 1395nn, or a regulation

 

 8  promulgated under that section is revised after June 3, 2002, the

 

 9  department shall officially take notice of the revision. Within

 

10  30 days after taking notice of the revision, the department shall

 

11  decide whether or not the revision pertains to referral by

 

12  physicians for designated health services and continues to

 

13  protect the public from inappropriate referrals by physicians. If

 

14  the department decides that the revision does both of those

 

15  things, the department may promulgate rules to incorporate the

 

16  revision by reference. If the department does promulgate rules to

 

17  incorporate the revision by reference, the department shall not

 

18  make any changes to the revision. As used in this subparagraph,

 

19  "designated health service" means that term as defined in section

 

20  1877 of part D of title XVIII of the social security act, 42 USC

 

21  1395nn, and the regulations promulgated under that section and

 

22  "physician" means that term as defined in sections 17001 and

 

23  17501.

 

24        (v) For a physician who makes referrals pursuant to section

 

25  1877 of part D of title XVIII of the social security act, 42 USC

 

26  1395nn, or a regulation promulgated under that section, refusing

 

27  to accept a reasonable proportion of patients eligible for

 


 1  medicaid and refusing to accept payment from medicaid or medicare

 

 2  as payment in full for a treatment, procedure, or service for

 

 3  which the physician refers the individual and in which the

 

 4  physician has a financial interest. A physician who owns all or

 

 5  part of a facility in which he or she provides surgical services

 

 6  is not subject to this subparagraph if a referred surgical

 

 7  procedure he or she performs in the facility is not reimbursed at

 

 8  a minimum of the appropriate medicaid or medicare outpatient fee

 

 9  schedule, including the combined technical and professional

 

10  components.

 

11        (f) Beginning June 3, 2003, the department of consumer and

 

12  industry services shall prepare the first of 3 annual reports on

 

13  the effect of this amendatory act on access to care for the

 

14  uninsured and medicaid patients. The department shall report on

 

15  the number of referrals by licensees of uninsured and medicaid

 

16  patients to purchase or secure a drug, device, treatment,

 

17  procedure, or service from another person, place, facility, or

 

18  business in which the licensee has a financial interest.

 

19        (f) (g) Failure to report a change of name or mailing

 

20  address within 30 days after the change occurs.

 

21        (g) (h) A violation, or aiding or abetting in a violation,

 

22  of this article or of a rule promulgated under this article.

 

23        (h) (i) Failure to comply with a subpoena issued pursuant to

 

24  this part, failure to respond to a complaint issued under this

 

25  article or article 7, failure to appear at a compliance

 

26  conference or an administrative hearing, or failure to report

 

27  under section 16222 or 16223.

 


 1        (i) (j) Failure to pay an installment of an assessment

 

 2  levied pursuant to the insurance code of 1956, 1956 PA 218, MCL

 

 3  500.100 to 500.8302, within 60 days after notice by the

 

 4  appropriate board.

 

 5        (j) (k) A violation of section 17013 or 17513.

 

 6        (k) (l) Failure to meet 1 or more of the requirements for

 

 7  licensure or registration under section 16174.

 

 8        (l) (m) A violation of section 17015 or 17515.

 

 9        (m) (n) A violation of section 17016 or 17516.

 

10        (n) (o) Failure to comply with section 9206(3).

 

11        (o) (p) A violation of section 5654 or 5655.

 

12        (p) (q) A violation of section 16274.

 

13        (q) (r) A violation of section 17020 or 17520.

 

14        (r) (s) A violation of the medical records access act, 2004

 

15  PA 47, MCL 333.26261 to 333.26271.

 

16        (s) (t) A violation of section 17764(2).

 

17        (t) A violation of section 17751 or 17759.

 

18        Sec. 16226. (1) After finding the existence of 1 or more of

 

19  the grounds for disciplinary subcommittee action listed in

 

20  section 16221, a disciplinary subcommittee shall impose 1 or more

 

21  of the following sanctions for each violation:

 

 

22   Violations of Section 16221 Sanctions

23 Subdivision (a), (b)(ii),        Probation, limitation, denial,

24 (b)(iv), (b)(vi), or              suspension, revocation,

25 (b)(vii)                          restitution, community service,

26                                 or fine.

27 Subdivision (b)(viii)             Revocation or denial.


Subdivision (b)(i),              Limitation, suspension,

(b)(iii), (b)(v),                 revocation, denial,

(b)(ix), (b)(x),                 probation, restitution,

(b)(xi), or (b)(xii)              community service, or fine.

Subdivision (c)(i)               Denial, revocation, suspension,

                                probation, limitation, community

                                service, or fine.

Subdivision (c)(ii)              Denial, suspension, revocation,

                                restitution, community service,

10                                 or fine.

11 Subdivision (c)(iii)              Probation, denial, suspension,

12                                 revocation, restitution,

13                                 community service, or fine.

14 Subdivision (c)(iv)              Fine, probation, denial,

15 or (d)(iii)                       suspension, revocation, community

16                                 service, or restitution.

17 Subdivision (d)(i)               Reprimand, fine, probation,

18 or (d)(ii)                       community service, denial,

19                                 or restitution.

20 Subdivision (e)(i)               Reprimand, fine, probation,

21                                 limitation, suspension, community

22                                 service, denial, or restitution.

23 Subdivision (e)(ii)              Reprimand, probation,

24 or (i)(h)                       suspension, restitution,

25                                 community service, denial, or

26                                 fine.

27 Subdivision (e)(iii),             Reprimand, fine, probation,

28 (e)(iv), or (e)(v)               suspension, revocation,

29                                 limitation, community service,

30                                 denial, or restitution.

31 Subdivision (g)(f)              Reprimand or fine.


Subdivision (h) or (s)(g)       Reprimand, probation, denial,

or (r)                          suspension, revocation,

                                limitation, restitution,

                                community service, or fine.

Subdivision (j)(i)              Suspension or fine.

Subdivision (k), (p),           Reprimand or fine.

or (r)(j), (o), or (q)         

Subdivision (l)(k)               Reprimand, denial, or

                                limitation.

10 Subdivision (m) or              Denial, revocation, restitution,

11 (o)(l), (n), or (t)              probation, suspension,

12                                 limitation, reprimand, or fine.

13 Subdivision (n)(m)              Revocation or denial.

14 Subdivision (q)(p)              Revocation.

15 Subdivision (t)(s)              Revocation, fine, and

16                                 restitution.

 

 

17        (2) Determination of sanctions for violations under this

 

18  section shall be made by a disciplinary subcommittee. If, during

 

19  judicial review, the court of appeals determines that a final

 

20  decision or order of a disciplinary subcommittee prejudices

 

21  substantial rights of the petitioner for 1 or more of the grounds

 

22  listed in section 106 of the administrative procedures act of

 

23  1969, 1969 PA 306, MCL 24.306, and holds that the final decision

 

24  or order is unlawful and is to be set aside, the court shall

 

25  state on the record the reasons for the holding and may remand

 

26  the case to the disciplinary subcommittee for further

 

27  consideration.

 

28        (3) A disciplinary subcommittee may impose a fine of up to,

 


 1  but not exceeding, $250,000.00 for a violation of section

 

 2  16221(a) or (b).

 

 3        (4) A disciplinary subcommittee may require a licensee or

 

 4  registrant or an applicant for licensure or registration who has

 

 5  violated this article or article 7 or a rule promulgated under

 

 6  this article or article 7 to satisfactorily complete an

 

 7  educational program, a training program, or a treatment program,

 

 8  a mental, physical, or professional competence examination, or a

 

 9  combination of those programs and examinations.

 

10        Sec. 16245. (1) An individual whose license is limited,

 

11  suspended, or revoked under this part may apply to his or her

 

12  board or task force for a reinstatement of a revoked or suspended

 

13  license or reclassification of a limited license pursuant to

 

14  section 16247 or 16249.

 

15        (2) An individual whose registration is suspended or revoked

 

16  under this part may apply to his or her board for a reinstatement

 

17  of a suspended or revoked registration pursuant to section 16248.

 

18        (3) A board or task force shall reinstate a license or

 

19  registration suspended for grounds stated in section 16221(j)

 

20  16221(i) upon payment of the installment.

 

21        (4) Except as otherwise provided in this subsection, in case

 

22  of a revoked license or registration, an applicant shall not

 

23  apply for reinstatement before the expiration of 3 years after

 

24  the effective date of the revocation. In the case of a license or

 

25  registration that was revoked for a violation of section

 

26  16221(b)(vii), a violation of section 16221(c)(iv) consisting of a

 

27  felony conviction, any other felony conviction involving a

 


 1  controlled substance, or a violation of section 16221(q)

 

 2  16221(p), an applicant shall not apply for reinstatement before

 

 3  the expiration of 5 years after the effective date of the

 

 4  revocation. The department shall return an application for

 

 5  reinstatement received before the expiration of the applicable

 

 6  time period under this subsection.

 

 7        (5) The department shall provide an opportunity for a

 

 8  hearing before final rejection of an application for

 

 9  reinstatement.

 

10        (6) Based upon the recommendation of the disciplinary

 

11  subcommittee for each health profession, the department shall

 

12  adopt guidelines to establish specific criteria to be met by an

 

13  applicant for reinstatement under this article or article 7. The

 

14  criteria may include corrective measures or remedial education as

 

15  a condition of reinstatement. If a board or task force, in

 

16  reinstating a license or registration, deviates from the

 

17  guidelines adopted under this subsection, the board or task force

 

18  shall state the reason for the deviation on the record.

 

19        (7) An individual who seeks reinstatement or

 

20  reclassification of a license or registration pursuant to this

 

21  section shall pay the application processing fee as a

 

22  reinstatement or reclassification fee. If approved for

 

23  reinstatement or reclassification, the individual shall pay the

 

24  per year license or registration fee for the applicable license

 

25  or registration period.

 

26        (8) An individual who seeks reinstatement of a revoked or

 

27  suspended license or reclassification of a limited license

 


 1  pursuant to this section shall have a criminal history check

 

 2  conducted in accordance with section 16174 and submit a copy of

 

 3  the results of the background check to the board with his or her

 

 4  application for reinstatement or reclassification.

 

 5        Sec. 17751. (1) A pharmacist shall not dispense a drug

 

 6  requiring a prescription under the federal act or a law of this

 

 7  state except under authority of an original prescription or an

 

 8  equivalent record of an original prescription approved by the

 

 9  board. A pharmacist shall not dispense a harmful drug via the

 

10  internet unless the prescriber expressly indicates in his or her

 

11  own handwriting on the original prescription that the harmful

 

12  drug is being prescribed pursuant to a good faith prior

 

13  examination.

 

14        (2) A pharmacist may dispense a prescription written and

 

15  signed or transmitted by facsimile, electronic transmission, or

 

16  other means of communication by a physician prescriber in a state

 

17  other than Michigan, but not including a prescription for a

 

18  controlled substance as defined in section 7104 except under

 

19  circumstances described in section 17763(e), only if the

 

20  pharmacist in the exercise of his or her professional judgment

 

21  determines all of the following:

 

22        (a) That the prescription was issued pursuant to an existing

 

23  physician-patient relationship.

 

24        (b) That the prescription is authentic.

 

25        (c) That the prescribed drug is appropriate and necessary

 

26  for the treatment of an acute, chronic, or recurrent condition.

 

27        (d) If the prescription is submitted via the internet and is

 


 1  for a harmful drug, that the prescription was issued pursuant to

 

 2  a good faith prior examination.

 

 3        (3) A pharmacist or a prescriber shall dispense a

 

 4  prescription only if the prescription falls within the scope of

 

 5  practice of the prescriber.

 

 6        (4) A pharmacist shall not knowingly dispense a prescription

 

 7  after the death of the prescriber or patient.

 

 8        Sec. 17759. (1) A harmful drug shall be dispensed only:

 

 9        (a) As a prescription drug.

 

10        (b) Under the control of a licensed pharmacist or

 

11  prescriber, who maintains records for the dispensing of these

 

12  drugs which are the same as records required for the dispensing

 

13  of prescriptions.

 

14        (2) A harmful drug shall not be dispensed via the internet

 

15  without a prescription that expressly indicates that the

 

16  prescription is being issued pursuant to a good faith prior

 

17  examination.

 

18        Sec. 17763. In addition to the grounds set forth in part

 

19  161, the disciplinary subcommittee may fine, reprimand, or place

 

20  a pharmacist licensee on probation, or deny, limit, suspend, or

 

21  revoke the license of a pharmacist or order restitution or

 

22  community service for a violation or abetting in a violation of

 

23  this part or rules promulgated under this part, or for 1 or more

 

24  of the following grounds:

 

25        (a) Permitting the dispensing of prescriptions by an

 

26  individual who is not a pharmacist, pharmacist intern, or

 

27  dispensing prescriber.

 


 1        (b) Permitting the dispensing of prescriptions by a

 

 2  pharmacist intern, except in the presence and under the personal

 

 3  charge of a pharmacist.

 

 4        (c) Selling at auction drugs in bulk or in open packages

 

 5  unless the sale has been approved in accordance with rules of the

 

 6  board.

 

 7        (d) Promoting a prescription drug to the public in any

 

 8  manner.

 

 9        (e) In addition to the prohibition contained in section

 

10  7405(1)(e), dispensing a prescription for a controlled substance

 

11  as defined in section 7104 that is written and signed or

 

12  transmitted by facsimile, electronic transmission, or other means

 

13  of communication by a physician prescriber in a state other than

 

14  Michigan, unless the prescription is issued by a physician

 

15  prescriber who resides adjacent to the land border between this

 

16  state and an adjoining state or resides in Illinois or Minnesota

 

17  and who is authorized under the laws of that state to practice

 

18  medicine or osteopathic medicine and surgery and to prescribe

 

19  controlled substances and whose practice may extend into this

 

20  state, but who does not maintain an office or designate a place

 

21  to meet patients or receive calls in this state.

 

22        (f) Permitting the dispensing of a harmful drug via the

 

23  internet without a prescription that expressly indicates that the

 

24  prescription is issued pursuant to a good faith prior

 

25  examination.

 

26        Sec. 17766. Except as provided in sections 17766d and 17780,

 

27  a person who does any of the following is guilty of a

 


 1  misdemeanor:

 

 2        (a) Obtains or attempts to obtain a prescription drug by

 

 3  giving a false name to a pharmacist or other authorized seller,

 

 4  prescriber, or dispenser.

 

 5        (b) Obtains or attempts to obtain a prescription drug by

 

 6  falsely representing that he or she is a lawful prescriber,

 

 7  dispenser, or licensee, or acting on behalf of a lawful

 

 8  prescriber, dispenser, or licensee.

 

 9        (c) Falsely makes, utters, publishes, passes, alters, or

 

10  forges a prescription.

 

11        (d) Knowingly possesses a false, forged, or altered

 

12  prescription.

 

13        (e) Knowingly attempts to obtain, obtains, or possesses a

 

14  drug by means of a prescription for other than a legitimate

 

15  therapeutic purpose, or as a result of a false, forged, or

 

16  altered prescription.

 

17        (f) Possesses or controls for the purpose of resale, or

 

18  sells, offers to sell, dispenses, or gives away, a drug,

 

19  pharmaceutical preparation, or chemical that has been dispensed

 

20  on prescription and has left the control of a pharmacist.

 

21        (g) Possesses or controls for the purpose of resale, or

 

22  sells, offers to sell, dispenses, or gives away, a drug,

 

23  pharmaceutical preparation, or chemical that has been damaged by

 

24  heat, smoke, fire, water, or other cause and is unfit for human

 

25  or animal use.

 

26        (h) Prepares or permits the preparation of a prescription

 

27  drug, except as delegated by a pharmacist.

 


 1        (i) Sells a drug in bulk or in an open package at auction,

 

 2  unless the sale has been approved in accordance with rules of the

 

 3  board.

 

 4        (j) Obtains or attempts to obtain a harmful drug from a

 

 5  prescriber or pharmacist via the internet without a valid

 

 6  prescription and a good faith prior examination.