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  S.B. No. 1879
 
 
 
 
AN ACT
  relating to the regulation of controlled substances; providing an
  administrative penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 481.064, Health and
  Safety Code, is amended to read as follows:
         (a)  The director may charge a nonrefundable fee of not more
  than $25 before processing an application for annual registration
  and may charge a late fee of not more than $50 for each application
  for renewal the department receives after the date the registration
  expires. The director by rule shall set the amounts [amount] of the
  fees [fee] at the amounts [amount] that are [is] necessary to cover
  the cost of administering and enforcing this subchapter. Except as
  provided by Subsection (b), registrants shall pay the fees to the
  director.  Not later than 60 days before the date the registration
  expires, the director shall send a renewal notice to the registrant
  at the last known address of the registrant according to department
  records.
         SECTION 2.  Section 481.074, Health and Safety Code, is
  amended by amending Subsections (b), (d), and (k) and adding
  Subsection (q) to read as follows:
         (b)  Except in an emergency as defined by rule of the
  director or as provided by Subsection (o) or Section 481.075(j) or
  (m), a person may not dispense or administer a controlled substance
  listed in Schedule II without the written prescription of a
  practitioner on an official prescription form that meets the
  requirements of and is completed by the practitioner in accordance
  with Section 481.075. In an emergency, a person may dispense or
  administer a controlled substance listed in Schedule II on the oral
  or telephonically communicated prescription of a practitioner. The
  person who administers or dispenses the substance shall:
               (1)  if the person is a prescribing practitioner or a
  pharmacist, promptly comply with Subsection (c); or
               (2)  if the person is not a prescribing practitioner or
  a pharmacist, promptly write the oral or telephonically
  communicated prescription and include in the written record of the
  prescription the name, address, department registration number,
  and Federal Drug Enforcement Administration number of the
  prescribing practitioner, all information required to be provided
  by a practitioner under Section 481.075(e)(1), and all information
  required to be provided by a dispensing pharmacist under Section
  481.075(e)(2).
         (d)  Except as specified in Subsections (e) and (f) [of this
  section], the director, by rule and in consultation with the Texas
  Medical Board and the Texas State Board of Pharmacy, shall
  establish the period after the date on which the prescription is
  issued that a person may [not] fill a prescription for a controlled
  substance listed in Schedule II [after the end of the seventh day
  after the date on which the prescription is issued]. A person may
  not refill a prescription for a substance listed in Schedule II.
         (k)  A prescription for a controlled substance must show:
               (1)  the quantity of the substance prescribed:
                     (A)  numerically, followed by the number written
  as a word, if the prescription is written; or
                     (B)  if the prescription is communicated orally or
  telephonically, as transcribed by the receiving pharmacist;
               (2)  the date of issue;
               (3)  the name, [and] address, and date of birth or age
  of the patient or, if the controlled substance is prescribed for an
  animal, the species of the animal and the name and address of its
  owner;
               (4)  the name and strength of the controlled substance
  prescribed;
               (5)  the directions for use of the controlled
  substance;
               (6)  the intended use of the substance prescribed
  unless the practitioner determines the furnishing of this
  information is not in the best interest of the patient; [and]
               (7)  the legibly printed or stamped name, address,
  Federal Drug Enforcement Administration registration number, and
  telephone number of the practitioner at the practitioner's usual
  place of business;
               (8)  if the prescription is handwritten, the signature
  of the prescribing practitioner; and
               (9)  if the prescribing practitioner is licensed in
  this state, the practitioner's department registration number.
         (q)  Each dispensing pharmacist shall send all information
  required by the director, including any information required to
  complete the Schedule III through V prescription forms, to the
  director by electronic transfer or another form approved by the
  director not later than the 15th day after the last day of the month
  in which the prescription is completely filled.
         SECTION 3.  Subsections (a) and (c), Section 481.076, Health
  and Safety Code, are amended to read as follows:
         (a)  The director may not permit any person to have access to
  information submitted to the director under Section 481.074(q) or
  481.075 except:
               (1)  an investigator for the Texas [State Board of]
  Medical Board [Examiners], the Texas State Board of Podiatric
  Medical Examiners, the State Board of Dental Examiners, the State
  Board of Veterinary Medical Examiners, or the Texas State Board of
  Pharmacy;
               (2)  an authorized officer or member of the department
  engaged in the administration, investigation, or enforcement of
  this chapter or another law governing illicit drugs in this state or
  another state; or
               (3)  if the director finds that proper need has been
  shown to the director:
                     (A)  a law enforcement or prosecutorial official
  engaged in the administration, investigation, or enforcement of
  this chapter or another law governing illicit drugs in this state or
  another state;
                     (B)  a pharmacist or practitioner who is a
  physician, dentist, veterinarian, [or] podiatrist, or advanced
  practice nurse or physician assistant described by Section
  481.002(39)(D) and is inquiring about a [the] recent Schedule II,
  III, IV, or V prescription history of a particular patient of the
  practitioner; or
                     (C)  a pharmacist or practitioner who is inquiring
  about the person's own dispensing or prescribing activity.
         (c)  The director by rule shall design and implement a system
  for submission of information to the director by electronic or
  other means and for retrieval of information submitted to the
  director under this section and Sections 481.074 and [Section]
  481.075. The director shall use automated information security
  techniques and devices to preclude improper access to the
  information. The director shall submit the system design to the
  Texas State Board of Pharmacy and the Texas [State Board of] Medical
  Board [Examiners] for review and approval or comment a reasonable
  time before implementation of the system and shall comply with the
  comments of those agencies unless it is unreasonable to do so.
         SECTION 4.  Subsections (a), (b), (c), and (e), Section
  481.0761, Health and Safety Code, are amended to read as follows:
         (a)  The director shall consult with the Texas State Board of
  Pharmacy and by rule establish and revise as necessary a
  standardized database format that may be used by a pharmacy to
  transmit the information required by Sections 481.074(q) and
  [Section] 481.075(i) to the director electronically or to deliver
  the information on storage media, including disks, tapes, and
  cassettes.
         (b)  The director shall consult with the [Texas] Department
  of State Health Services, the Texas State Board of Pharmacy, and the
  Texas [State Board of] Medical Board [Examiners] and by rule may:
               (1)  remove a controlled substance listed in Schedules
  [Schedule] II through V from the official prescription program, if
  the director determines that the burden imposed by the program
  substantially outweighs the risk of diversion of the particular
  controlled substance; or
               (2)  return a substance previously removed from
  Schedules [Schedule] II through V to the official prescription
  program, if the director determines that the risk of diversion
  substantially outweighs the burden imposed by the program on the
  particular controlled substance.
         (c)  The director by rule may:
               (1)  permit more than one prescription to be
  administered or dispensed and recorded on one [official]
  prescription form for a Schedule III through V controlled
  substance;
               (2)  remove from or return to the official prescription
  program any aspect of a practitioner's or pharmacist's hospital
  practice, including administering or dispensing;
               (3)  waive or delay any requirement relating to the
  time or manner of reporting;
               (4)  establish compatibility protocols for electronic
  data transfer hardware, software, or format;
               (5)  establish a procedure to control the release of
  information under Sections 481.074, 481.075, and 481.076; and
               (6)  establish a minimum level of prescription activity
  below which a reporting activity may be modified or deleted.
         (e)  In adopting a rule relating to the electronic transfer
  of information under this subchapter, the director shall consider
  the economic impact of the rule on practitioners and pharmacists
  and, to the extent permitted by law, act to minimize any negative
  economic impact, including the imposition of costs related to
  computer hardware or software or to the transfer of information.
  The director may not adopt a rule relating to the electronic
  transfer of information under this subchapter that imposes a fee in
  addition to the fees [fee] authorized by Section 481.064.
         SECTION 5.  Chapter 481, Health and Safety Code, is amended
  by adding Subchapter H to read as follows:
  SUBCHAPTER H.  ADMINISTRATIVE PENALTY
         Sec. 481.301.  IMPOSITION OF PENALTY.  The department may
  impose an administrative penalty on a person who violates Section
  481.061, 481.066, 481.067, 481.069, 481.074, 481.075, 481.077,
  481.0771, 481.078, 481.080, or 481.081 or a rule or order adopted
  under any of those sections.
         Sec. 481.302.  AMOUNT OF PENALTY.  (a)  The amount of the
  penalty may not exceed $1,000 for each violation, and each day a
  violation continues or occurs is a separate violation for purposes
  of imposing a penalty.  The total amount of the penalty assessed for
  a violation continuing or occurring on separate days under this
  subsection may not exceed $20,000.
         (b)  The amount shall be based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the threat to health or safety caused by the
  violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  whether the violator demonstrated good faith,
  including when applicable whether the violator made good faith
  efforts to correct the violation; and
               (6)  any other matter that justice may require.
         Sec. 481.303.  REPORT AND NOTICE OF VIOLATION AND PENALTY.
  (a)  If the department initially determines that a violation
  occurred, the department shall give written notice of the report to
  the person by certified mail, registered mail, personal delivery,
  or another manner of delivery that records the person's receipt of
  the notice.
         (b)  The notice must:
               (1)  include a brief summary of the alleged violation;
               (2)  state the amount of the recommended penalty; and
               (3)  inform the person of the person's right to a
  hearing on the occurrence of the violation, the amount of the
  penalty, or both.
         Sec. 481.304.  PENALTY TO BE PAID OR INFORMAL HEARING
  REQUESTED. (a)  Before the 21st day after the date the person
  receives notice under Section 481.303, the person in writing may:
               (1)  accept the determination and recommended penalty;
  or
               (2)  make a request for an informal hearing held by the
  department on the occurrence of the violation, the amount of the
  penalty, or both.
         (b)  At the conclusion of an informal hearing requested under
  Subsection (a), the department may modify the amount of the
  recommended penalty.
         (c)  If the person accepts the determination and recommended
  penalty, including any modification of the amount, or if the person
  fails to timely respond to the notice, the director by order shall
  approve the determination and impose the recommended penalty.
         Sec. 481.305.  FORMAL HEARING. (a)  The person may request
  a formal hearing only after participating in an informal hearing.
         (b)  The request must be submitted in writing and received by
  the department before the 21st day after the date the person is
  notified of the decision from the informal hearing.
         (c)  If a timely request for a formal hearing is not
  received, the director by order shall approve the determination
  from the informal hearing and impose the recommended penalty.
         (d)  If the person timely requests a formal hearing, the
  director shall refer the matter to the State Office of
  Administrative Hearings, which shall promptly set a hearing date
  and give written notice of the time and place of the hearing to the
  director and to the person. An administrative law judge of the
  State Office of Administrative Hearings shall conduct the hearing.
         (e)  The administrative law judge shall make findings of fact
  and conclusions of law and promptly issue to the director a proposal
  for a decision about the occurrence of the violation and the amount
  of any proposed penalty.
         (f)  If a penalty is proposed under Subsection (e), the
  administrative law judge shall include in the proposal for a
  decision a finding setting out costs, fees, expenses, and
  reasonable and necessary attorney's fees incurred by the state in
  bringing the proceeding. The director may adopt the finding and
  impose the costs, fees, and expenses on the person as part of the
  final order entered in the proceeding.
         Sec. 481.306.  DECISION. (a)  Based on the findings of
  fact, conclusions of law, and proposal for a decision, the director
  by order may:
               (1)  find that a violation occurred and impose a
  penalty; or
               (2)  find that a violation did not occur.
         (b)  The notice of the director's order under Subsection (a)
  that is sent to the person in the manner provided by Chapter 2001,
  Government Code, must include a statement of the right of the person
  to judicial review of the order.
         Sec. 481.307.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
  Before the 31st day after the date the order under Section 481.306
  that imposes an administrative penalty becomes final, the person
  shall:
               (1)  pay the penalty; or
               (2)  file a petition for judicial review of the order
  contesting the occurrence of the violation, the amount of the
  penalty, or both.
         Sec. 481.308.  STAY OF ENFORCEMENT OF PENALTY. (a)  Within
  the period prescribed by Section 481.307, a person who files a
  petition for judicial review may:
               (1)  stay enforcement of the penalty by:
                     (A)  paying the penalty to the court for placement
  in an escrow account; or
                     (B)  giving the court a supersedeas bond approved
  by the court that:
                           (i)  is for the amount of the penalty; and
                           (ii)  is effective until all judicial review
  of the order is final; or
               (2)  request the court to stay enforcement of the
  penalty by:
                     (A)  filing with the court a sworn affidavit of
  the person stating that the person is financially unable to pay the
  penalty and is financially unable to give the supersedeas bond; and
                     (B)  sending a copy of the affidavit to the
  director by certified mail.
         (b)  Following receipt of a copy of an affidavit under
  Subsection (a)(2), the director may file with the court, before the
  sixth day after the date of receipt, a contest to the affidavit.
  The court shall hold a hearing on the facts alleged in the affidavit
  as soon as practicable and shall stay the enforcement of the penalty
  on finding that the alleged facts are true. The person who files an
  affidavit has the burden of proving that the person is financially
  unable to pay the penalty or to give a supersedeas bond.
         Sec. 481.309.  COLLECTION OF PENALTY. (a)  If the person
  does not pay the penalty and the enforcement of the penalty is not
  stayed, the penalty may be collected.
         (b)  The attorney general may sue to collect the penalty.
         Sec. 481.310.  DECISION BY COURT. (a)  If the court
  sustains the finding that a violation occurred, the court may
  uphold or reduce the amount of the penalty and order the person to
  pay the full or reduced amount of the penalty.
         (b)  If the court does not sustain the finding that a
  violation occurred, the court shall order that a penalty is not
  owed.
         Sec. 481.311.  REMITTANCE OF PENALTY AND INTEREST. (a)  If
  the person paid the penalty and if the amount of the penalty is
  reduced or the penalty is not upheld by the court, the court shall
  order, when the court's judgment becomes final, that the
  appropriate amount plus accrued interest be remitted to the person
  before the 31st day after the date that the judgment of the court
  becomes final.
         (b)  The interest accrues at the rate charged on loans to
  depository institutions by the New York Federal Reserve Bank.
         (c)  The interest shall be paid for the period beginning on
  the date the penalty is paid and ending on the date the penalty is
  remitted.
         Sec. 481.312.  RELEASE OF BOND. (a)  If the person gave a
  supersedeas bond and the penalty is not upheld by the court, the
  court shall order, when the court's judgment becomes final, the
  release of the bond.
         (b)  If the person gave a supersedeas bond and the amount of
  the penalty is reduced, the court shall order the release of the
  bond after the person pays the reduced amount.
         Sec. 481.313.  ADMINISTRATIVE PROCEDURE. A proceeding to
  impose the penalty is considered to be a contested case under
  Chapter 2001, Government Code.
         Sec. 481.314.  DISPOSITION OF PENALTY.  The department shall
  send any amount collected as a penalty under this subchapter to the
  comptroller for deposit to the credit of the general revenue fund.
         SECTION 6.  Chapter 107, Occupations Code, is amended by
  adding Subchapter E to read as follows:
  SUBCHAPTER E. PAIN TREATMENT REVIEW COMMITTEE
         Sec. 107.201.  PAIN TREATMENT REVIEW COMMITTEE. (a)  The
  following individuals shall be appointed as a review committee on
  pain treatment:
               (1)  the attorney general or the attorney general's
  designee;
               (2)  a physician who practices at a public hospital in
  this state;
               (3)  a physician who practices at a private hospital in
  this state;
               (4)  a physician who practices in this state as a
  psychiatrist specializing in the treatment of addictive diseases;
               (5)  a probate court judge licensed to practice law in
  this state;
               (6)  a member of the governing board of the American
  Cancer Society, Texas Division, or the member's designee;
               (7)  a member of the governing board of the Texas
  Medical Association or the member's designee;
               (8)  a member of the governing board of the Texas Nurses
  Association or the member's designee;
               (9)  an officer of a public hospital in this state who
  is a member of the governing board of the Texas Hospital Association
  or the member's designee;
               (10)  an officer of a private hospital in this state who
  is a member of the governing board of the Texas Hospital Association
  or the member's designee; and
               (11)  a public member who is a resident of this state.
         (b)  The lieutenant governor and the speaker of the house of
  representatives shall each appoint five of the members described by
  Subsections (a)(2) through (11).
         (c)  The following individuals serve on the committee as
  nonvoting resource members and are appointed by the executive
  director of the agency the member represents:
               (1)  a pharmacist member of the Texas State Board of
  Pharmacy;
               (2)  a physician member of the Texas Medical Board;
               (3)  a nurse member of the Board of Nurse Examiners;
               (4)  a representative of the Department of Aging and
  Disability Services; and
               (5)  a representative of the narcotics regulatory
  programs of the Department of Public Safety.
         (d)  The committee shall study the relevant provisions in the
  laws of this state that relate to the administration of
  prescription medication, controlled substances, and the needs of
  patients for effective pain control and management. The committee
  shall examine how the following statutes affect public health
  needs, the professional medical community, and persons affected by
  acute, chronic, or end-of-life pain:
               (1)  this chapter;
               (2)  Subtitles B, E, I, and J of this title; and
               (3)  Chapter 481, Health and Safety Code.
         (e)  The committee shall meet at least once every three
  months.
         (f)  Not later than September 1, 2008, the committee shall
  report any changes recommended to the statutes examined under
  Subsection (d) to the lieutenant governor, the speaker of the house
  of representatives, and the appropriate standing committees in the
  senate and the house of representatives that have jurisdiction over
  the issues studied by the committee.
         (g)  This section expires July 1, 2009.
         SECTION 7.  (a)  An advisory committee is created to advise
  the Department of Public Safety of the State of Texas on the
  implementation of this Act.
         (b)  The advisory committee is composed of:
               (1)  the public safety director of the Department of
  Public Safety of the State of Texas or the director's designee;
               (2)  a physician appointed by the governor;
               (3)  a pharmacist appointed by the governor;
               (4)  a physician appointed by the lieutenant governor;
               (5)  a pharmacist appointed by the lieutenant governor;
               (6)  a physician appointed by the governor from a list
  of names submitted by the speaker of the house of representatives;
               (7)  a pharmacist appointed by the governor from a list
  of names submitted by the speaker of the house of representatives;
  and
               (8)  one member from each of the following boards:
                     (A)  Texas Medical Board;
                     (B)  Texas State Board of Pharmacy;
                     (C)  State Board of Dental Examiners; and
                     (D)  Board of Nurse Examiners.
         (c)  The public safety director or the director's designee is
  the presiding officer of the advisory committee.  The committee
  shall meet at the call of the presiding officer or at the request of
  any three members other than the presiding officer.
         (d)  The advisory committee shall:
               (1)  develop recommendations regarding the improvement
  of the official prescription program established by Section
  481.075, Health and Safety Code;
               (2)  develop recommendations regarding the
  implementation of an electronic controlled substance monitoring
  system that would be used for prescriptions of controlled
  substances listed in Schedules II through V as established under
  Subchapter B, Chapter 481, Health and Safety Code;
               (3)  develop recommendations as to which data should be
  provided to the Department of Public Safety of the State of Texas to
  support a controlled substance monitoring system recommended under
  Subdivision (2) of this subsection, including provider
  identification information;
               (4)  monitor and develop recommendations regarding the
  implementation and enforcement of a controlled substance
  monitoring system recommended under Subdivision (2) of this
  subsection;
               (5)  develop recommended procedures necessary for
  real-time point-of-service access for a practitioner authorized to
  prescribe or dispense controlled substances listed in Schedules II
  through V so that the practitioner may obtain:
                     (A)  the prescription history for a particular
  patient; or
                     (B)  the practitioner's own dispensing or
  prescribing activity; and
               (6)  develop recommended procedures that should be
  followed by the Department of Public Safety of the State of Texas
  and the applicable licensing authority of this state, another
  state, or the United States when:
                     (A)  the department shares information related to
  diversion of controlled substances with a licensing authority for
  the purpose of licensing enforcement; or
                     (B)  a licensing authority shares information
  related to diversion of controlled substances with the department
  for the purpose of criminal enforcement.
         (e)  The public safety director shall report the
  recommendations developed under Subsection (d) of this section to
  the governor, lieutenant governor, speaker of the house of
  representatives, and appropriate committees of the senate and the
  house not later than July 1, 2008.
         (f)  This section expires and the advisory committee is
  abolished on September 1, 2009.
         SECTION 8.  (a)  The Department of Public Safety of the
  State of Texas, Texas Medical Board, Texas State Board of Pharmacy,
  State Board of Dental Examiners, and Board of Nurse Examiners shall
  submit to the presiding officers of the Senate Committee on Health
  and Human Services and the House Committee on Public Health a report
  that details the number and type of actions relating to the
  prosecution of violations of Chapter 481, Health and Safety Code,
  as amended by this Act.
         (b)  Each agency shall submit its initial report under
  Subsection (a) of this section not later than November 1, 2007.
  Each agency shall submit an update of its initial report not later
  than May 1 and November 1 of each year.
         (c)  This section expires November 1, 2011.
         SECTION 9.  The public safety director of the Department of
  Public Safety of the State of Texas shall adopt any rules necessary
  to administer and enforce Subchapter H, Chapter 481, Health and
  Safety Code, as added by this Act, not later than September 1, 2007,
  except that if this section does not take effect before that date,
  the public safety director shall adopt the rules as soon as
  practicable after that date.
         SECTION 10.  (a)  Except as provided by Subsections (b),
  (c), and (d) of this section, this Act takes effect September 1,
  2007.
         (b)  Section 9 of this Act takes effect immediately if this
  Act receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, Section 9 of this Act takes effect September 1, 2007.
         (c)  Except as otherwise provided by Subsection (d) of this
  section, the changes in law made by this Act in amending Subsection
  (k), Section 481.074, and Section 481.076, Health and Safety Code,
  and in adding Subsection (q), Section 481.074 of that code, take
  effect September 1, 2008. The public safety director of the
  Department of Public Safety of the State of Texas shall adopt any
  rules necessary to administer and enforce the changes in law made by
  those provisions not later than September 1, 2008.
         (d)  The change in law made by this Act in amending
  Subsections (b) and (k), Section 481.074, Health and Safety Code,
  to require the use of registration numbers issued by the Department
  of Public Safety of the State of Texas takes effect only after the
  department establishes a means by which pharmacies are able to
  electronically access and verify the accuracy of the registration
  numbers.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1879 passed the Senate on
  April 25, 2007, by the following vote:  Yeas 28, Nays 1;
  May 24, 2007, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 26, 2007, House
  granted request of the Senate; May 26, 2007, Senate adopted
  Conference Committee Report by the following vote:  Yeas 30,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1879 passed the House, with
  amendments, on May 23, 2007, by the following vote:  Yeas 139,
  Nays 0, one present not voting; May 26, 2007, House granted request
  of the Senate for appointment of Conference Committee;
  May 27, 2007, House adopted Conference Committee Report by the
  following vote:  Yeas 143, Nays 1, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor