BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:  April 11, 2000

                            ASSEMBLY COMMITTEE ON HEALTH 
                               Martin Gallegos, Chair
                    AB 2018 (Thomson) - As Amended:  April 5, 2000
           
          SUBJECT  :  Controlled substances: Schedule II: triplicate  
          prescription.

           SUMMARY  :  Repeals the requirement that Schedule II controlled  
          substances be written on an official prescription form (known as  
          the "triplicate form") issued by the Department of Justice  
          (DOJ), and repeals the sunset date of the Controlled Substance  
          Utilization Review and Evaluation System (CURES) pilot project,  
          thereby making this program permanent.  Specifically,  this bill  :  
           

          1)Repeals provisions of law relating to the triplicate  
            prescription requirement for Schedule II controlled substances  
            (as specified in existing law below).

          2)Includes Schedule II controlled substances within existing  
            provisions of law governing the prescribing of controlled  
            substances listed in Schedules III, IV and V, except for  
            provisions permitting the oral and electronic transmission of  
            prescriptions for controlled substances.

          3)Permits an order for a Schedule II substance to be dispensed  
            on an oral or electronic transmission order where failure to  
            issue a prescription may result in loss of life or intense  
            suffering, subject to specified requirements, including  
            requiring the prescriber to provide a written prescription by  
            the seventh day following the initial transmission of the  
            order.

          4)Repeals the July 1, 2003 sunset date of the CURES project, and  
            repeals references to "pilot project," thereby making this  
            program permanent.

          5)Repeals a requirement that DOJ, in consultation with the Board  
            of Pharmacy (board), submit an annual report on the CURES  
            pilot project.

           EXISTING LAW  :









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          1)Prohibits any person from furnishing any dangerous drug or  
            device except upon the prescription of a physician, dentist,  
            podiatrist, optometrist or veterinarian.

          2)Establishes the California Uniform Controlled Substances Act,  
            which lists controlled substances in five schedules, with  
            Schedule I containing substances with the highest restrictions  
            (generally illegal), and Schedule V the least restrictive.   
            Schedule II substances are generally the most dangerous  
            substances that can still be legally prescribed, such as  
            morphine, Demerol, and Percodan.

          3)Requires each prescription for a controlled substance  
            classified in Schedule II to be wholly written in ink or  
            indelible pencil in the handwriting of the prescriber upon an  
            official prescription form, in triplicate, issued by DOJ.   
            Requires the original and duplicate of the prescription to be  
            delivered to the pharmacist filling the prescription.   
            Requires the duplicate 

            to be retained by the pharmacist, and the original to be  
            transmitted to DOJ at the end of the month in which the  
            prescription was filled.

          4)Requires triplicate prescription blanks to be issued by DOJ in  
            serially numbered groups of not more than 100 forms each, and  
            to be furnished to any practitioner authorized to write a  
            prescription for Schedule II controlled substances.  Requires  
            the prescription blanks to bear the preprinted name, address,  
            and category of professional licensure of the practitioner to  
            whom they are issued, and the federal registry number for  
            controlled substances.  Permits DOJ to charge a fee for the  
            prescription blanks sufficient to reimburse the department for  
            the actual costs associated with the preparation, processing,  
            and filing of the forms.  Provides that any unauthorized  
            person possessing a triplicate prescription blank is guilty of  
            a misdemeanor.

          5)Exempts orders for controlled substances from the prescription  
            procedure, including the triplicate form for Schedule II  
            substances, when used by a patient in a hospital, as long as  
            specified information is recorded in the patient's medical  
            record.

          6)Exempts Schedule II prescriptions from the triplicate  








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            procedure when prescribed for use by a patient who has a  
            terminal illness, defined in part as an illness that will, in  
            the judgment of the physician, bring about the death of the  
            patient within a period of one year.  These prescriptions must  
            meet certain requirements, including a requirement that they  
            be wholly written in the handwriting of the prescriber.

          7)Establishes the CURES Pilot Project within DOJ for the  
            electronic monitoring of the prescribing and dispensing of  
            Schedule II controlled substance in order to assist law  
            enforcement and regulatory agencies in their efforts to  
            control the diversion and resultant abuse of Schedule II  
            controlled substances.  The CURES Pilot Project was  
            established on July 1, 1997, and is required to be  
            administered concurrently with the existing triplicate  
            prescription process to examine the comparative efficiencies  
            between the two systems.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, triplicate  
            prescriptions are an administrative hassle for prescribers and  
            can result in inadequate relief for patients in pain.  The  
            author states that for patients, pain management is frequently  
            reported to be poor, and the author argues that triplicates  
            interfere with the patient-physician relationship.  The author  
            cites a study published in 1993 in the  Annals of Internal  
            Medicine  that showed physicians practicing in states requiring  
            multiple copy prescriptions were more likely to cite physician  
            reluctance to prescribe opioids and concern about excessive  
            drug regulation as barriers to cancer pain management when  
            compared to physicians in other states.  The author states  
            that researchers have found that multiple copy prescription  
            programs result in prescribers substituting drugs that do not  
            require a triplicate for those that do.  The author further  
            asserts that many physicians do not have the full range of  
            tools necessary to treat patients with severe pain because  
            they do not have triplicate forms.  According to the author,  
            only 40,333 of the 74,518 California-licensed physicians with  
            Schedule II privileges had triplicates issued to them.   
            Finally, the author points to the Institute of Medicine's 1997  
            book Approaching Death: Improving Care at the End of Life,  
            which recommends the "reform of prescription laws?that impede  








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            effective use of opioids to releive pain and suffering."  The  
            author also cites a recommendation from the 1994 California  
            Pain Summit that California "replace the requirement for a  
            special, state-issued prescription form (triplicate system)  
            with electronic monitoring of controlled substances  
            prescriptions that can foster better, more effective pain  
            management and better diversion detection."

           2)CURES REPORT  .  AB 3042 (Takasugi), Chapter 738, Statutes of  
            1996, established the CURES Pilot Project, which was to begin  
            July 1, 1997.  As required by AB 3042, a report prepared by  
            DOJ, in consultation with the board, was submitted to the  
            Legislature in January of 1999 regarding the implementation of  
            CURES.  According to this report, CURES has been implemented  
            in a timely and cost-effective manner.  At the time of the  
            report, automated collection of Schedule II prescription data  
            from the state's 5,000 pharmacies had been in place for almost  
            one year, and the data analysis and on-line communications  
            linkage to the state agencies had also been established in its  
            initial phase.  According to the report, in 1995, the  
            triplicate program reached its peak production level by  
            manually entering data from 256,303 triplicate prescription  
            forms into the computer system.  Since 1995, productivity has  
            steadily declined, and in 1998 only 39,945 triplicate  
            prescription forms, representing 1.7 percent of the total,  
            were manually entered into the system.  The report states that  
            CURES has solved the data entry backlog problem experience by  
            the triplicate program.  Through CURES, DOJ and  
            medical-related licensing boards have ready access to  
            up-to-date information on Schedule II drug prescriptions.  In  
            the first seven months that CURES was operational, a total of  
            892,985 Schedule II prescriptions were transmitted by  
            pharmacies into the CURES system.  The report made several  
            recommendations, including making CURES permanent, and  
            reclassifying, as appropriate, current triplicate prescription  
            program staff to classifications more suitable to the  
            investigative and analytical duties they will perform for  
            CURES.

           3)BOARD OF PHARMACY  .  This bill is sponsored by the Board of  
            Pharmacy.  According to the board, under the triplicate  
            program, once the original is mailed by the pharmacy to DOJ,  
            these prescriptions must be entered manually into a computer  
            system and/or filed in boxes for manual searches.  This  
            labor-intensive system resulted in fewer than 2 percent of all  








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            triplicate prescriptions being entered into DOJ's computer  
            system in recent years.  The board states that CURES, instead,  
            works by having pharmacies make electronic copies of all  
            Schedule II prescriptions dispensed each month.  The  
            electronic data from all California pharmacies is then  
            compiled into a statewide database that is provided to DOJ.   
            The board states that it is sponsoring this legislation  
            because the CURES program has clearly established that  
            electronic monitoring is a superior alternative to collecting  
            the more than 2 million paper prescriptions that are written  
            each year.  The board argues that the CURES system makes  
            identifying patterns of abuse and diversion of prescription  
            drugs into illicit markets much easier because all data is  
            readily available for analysis.  The board states that with  
            CURES, the triplicate prescription process has out-lived its  
            utility.

           4)SUPPORT  .  Numerous organizations are in support of this bill.   
            The American Cancer Society (ACS) states in support that  
            research indicates less than half of cancer patients get  
            adequate relief of their pain even though the means to relieve  
            almost all cancer pain currently exists.  ACS states that it  
            has found there is a dichotomy between the effort to restrict  
            the availability of controlled substances and the need to  
            adequately and compassionately treat patients experiencing  
            pain, and ACS has long supported CURES as a way to address  
            both concerns.  Americans for Death with Dignity (ADD) states  
            that physician's fears about law enforcement are not idle  
            fears given the lack of understanding about the use of opioid  
            drugs as acceptable medical practice by both medical boards  
            and physicians in this country.  ADD points to studies in the  
            early 1990s which revealed appalling statistics of medical  
            board members and physicians who thought that prescribing  
            narcotics to relieve pain was an illegal act and/or not  
            acceptable treatment, which it is neither.  ADD argues that it  
            is time to eliminate the stigma of triplicate prescriptions  
            for the medical use of narcotics for terminally ill and dying  
            patients.  The Congress of California Seniors states in  
            support that some in the medical profession have been hesitant  
            to adequately prescribe medication for severe pain because  
            some have been prosecuted for over-prescribing in cases of  
            terminal patients, and this bill will begin to resolve such  
            foolish restrictions.  The California Medical Association  
            states that survey data indicates that 54 percent of  
            physicians modify their pain prescriptions based on concerns  








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            of regulatory oversight, and physicians have continually  
            expressed concerns over restrictive regulations, feeling  
            threatened, and fearing harassment and/or prosecution by  
            enforcement authorities.  The California Academy of Family  
            Physicians states that triplicate prescriptions are an  
            administrative hassle for prescribers and can also interfere  
            with the patient-physician relationship, and often results in  
            inadequate relief for patients in pain.  The California Nurses  
            Association states that every day, nurses see the barriers  
            that triplicate prescriptions cause when doctors choose to  
            under-prescribe non-narcotic analgesics to treat serious pain  
            because they do not want to apply to DOJ for triplicate  
            prescription forms.  The California Association of Health  
            Plans argues that interference in the physician-patient  
            relationship does not become defensible simply because it may,  
            in some broad and non-specific manner, relate to a law  
            enforcement objective, and believes this principle should be  
            accorded the strongest possible consideration when the care of  
            very seriously ill people is involved.

           5)OPPOSITION  .  This bill is opposed by the California Peace  
            Officers' Association (CPOA) and the California Police Chiefs  
            Association (CPCA).  CPOA and CPCA state that California's  
            triplicate system enables law enforcement to monitor the  
            distribution of Schedule II controlled substances statewide  
            through the issuance of serialized triplicate prescription  
            forms and the receipt and review of cashed triplicates, and  
            allows them to respond to specific law enforcement or  
            regulatory inquiry and to forward investigative leads to  
            prevent diversion of prescription drugs into the illegal  
            market, all without interfering with lawful prescribing  
            practices.  CPOA and CPCA state that the diversion of  
            controlled substances from legitimate sources into illicit  
            street drug traffic is a significant problem in California,  
            with DOJ estimating that illegal trade in controlled  
            substances is approximately a $1 billion a year industry.   
            Serialized prescription forms are a useful tool in eliminating  
            forgery and counterfeiting, and CPOA and CPCA point out in  
            contrast that states that do not have such a program are prone  
            to high incidences of forgery of prescriptions.  For instance,  
            CPOA and CPCA state that New York reported a 12 percent  
            forgery rate prior to the implementation of its  
            state-serialized program, while implementation of the program  
            slashed the forgery rate down to .0006 percent.  CPOA and CPCA  
            state that surveys done by DOJ report that Oklahoma, Nevada,  








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            North Carolina and Mississippi, which do not have a serialized  
            prescription program, have reported high incidences of  
            forgeries and counterfeited prescription pads.  CPOA and CPCA  
            state that perhaps there will be a time when CURES will have  
            sufficient safeguards to operate as a "stand-alone" monitoring  
            strategy, but until CURES has technology to ensure security,  
            or to be able to capture signatures, fingerprints or retinal  
            scans, abandonment of the serialized triplicate system is  
            premature.
           
             This bill is also opposed by the California State Sheriffs'  
            Association, which states that the current triplicate system  
            has no impact on the consumer and what little negative impact  
            it may have on doctors and pharmacists is mitigated by the  
            public safety benefits of the system in protecting against  
            illegal diversion of prescription drugs to the criminal  
            market.

          6)DOUBLE REFERRAL  .  Should this bill pass out of this Committee,  
            it will be referred to the Assembly Public Safety Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support  

          California Board of Pharmacy (sponsor)
          Adventist Health Home Care Services
          Alliance of Catholic Health Care
          American Academy of Pain Management
          American Academy of Pain Medicine
          American Cancer Society
          Americans for Death with Dignity
          California Academy of Family Physicians
          California Academy of Ophthalmology
          California Association of Health Facilities
          California Association of Health Plans
          California Association of Health Services at Home
          California Association of Public Hospitals and Health Systems
          California Church IMPACT
          California Hospice and Palliative Care Association
          California Medical Association
          California Nurses Association
          California Psychiatric Association
          California Society of Anesthesiologists, Inc.
          Catholic Healthcare West Bay Area Region








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          Catholic Healthcare West North State Region
          Congress of California Seniors
          Death with Dignity National Center
          Hoffman Hospice
          Hope Hospice, Inc.
          Hospice and Palliative Care of Contra Costa
          Hospice by the Bay
          Hospice Care of California
          Hospice Caring Project
          Hospice of Marin
          Hospice of San Joaquin
          Hospice of the Valley
          Hospice of the Valleys
          Hospice Services of Tulare County, Inc.
          Kaiser Permanente
          Madrone Hospice
          Mercy Hospital and Health Services, Merced
          Mission Hospital Regional Medical Center
          NorthBay Hospice and Bereavement
          Odyssey HealthCare, Inc.
          Older Women's League of California
          Sacramento-El Dorado Medical Society
          San Diego Hospice
          Southern California Cancer Pain Initiative
          St. Joseph Health System - Humboldt County
          St. Joseph's Medical Center
          The Elizabeth Hospice
          The TMJ Society of California
          Torrance Memorial Home Health & Hospice
          Visiting Nurse Association and Hospice
          Yolo County Medical Society
          Z G International Health Care Division

           Opposition  

          California Peace Officers' Association
          California Police Chiefs Association
          California State Sheriffs' Association
           
          Analysis Prepared by  :  Vincent D. Marchand / HEALTH / (916)  
          319-2097