HOUSE BILL No. 5735

 

January 13, 2010, Introduced by Reps. Liss, Haugh, Constan, Ball, Marleau, Gonzales, Calley, Angerer, Segal, McDowell, Lahti, Nerat and Green 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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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

 

patient.

 

     (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).

 

     (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) or (8) 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

 

department.

 

     (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

 

system.

 

     (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) On or before January 1, 2010 and notwithstanding any

 

practitioner-patient privilege, the director of the department

 

shall provide direct access to the electronic monitoring system

 

established under subsection (1) to health care payment or benefit

 

providers for the purposes of ensuring patient safety and

 

investigating fraud and abuse. As used in this subsection, "health

 

care payment or benefit providers" 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 regulation.

 

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

 

agreements for the administration of this section.

 

     (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.

 

     (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.

 

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

 


department of consumer and industry services community health.