BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 25, 2000
          Chief Counsel:      Bruce E. Chan


                        ASSEMBLY COMMITTEE ON PUBLIC SAFETY 
                               Carl Washington, Chair

                    AB 2018 (Thomson) - As Amended:  April 5, 2000
           

          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 electronic  
          prescription tracking pilot project (CURES), thereby making the  
          program permanent.  Specifically,  this bill  :

          1)Repeals provisions of existing law relating to the triplicate  
            prescription requirement for Schedule II controlled  
            substances.  

          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.  Repeals the  
            provision of existing law that requires the prescriber to  
            provide a triplicate prescription by the seventh day,  
            following the initial transmission of the order, permitting  
            instead a written prescription.

          4)Repeals the provision of existing law requiring the prescriber  
            to preserve for three years the book containing copies of  
            issued prescriptions.  

          5)Repeals the July 1, 2003 sunset date of the CURES project, and  
            repeals references to "pilot project," thereby making this  
            program permanent. Repeals a requirement that DOJ, in  
            consultation with the Board of Pharmacy (Board), submit an  
            annual report on the CURES pilot project.  








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           EXISTING LAW  :

          1)Prohibits any person from furnishing any dangerous drug or  
            device except upon the prescription of a physician, dentist,  
            podiatrist, optometrist or veterinarian.  (Health and Safety  
            Code (HSC) Section 11150.)

          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 with the least restrictive.  
             Schedule II substances are generally the most dangerous  
            substances that can still be legally prescribed, such as  
            morphine, Methadone, Demerol, and Percodan.  (HSC Section  
            11055.)

          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.  (HSC Section 11164.)

          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.  (HSC Section 11161.)

          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  








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            record.  (HSC Section 11159.)

          6)Exempts Schedule II prescriptions from the triplicate  
            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.  (HSC  
            Section 11159.2.)

          7)Requires the prescriber to maintain a prescription book  
            containing copies of issued prescriptions for three years.   
            (HSC Section 11168.)

          8)Provides for criminal penalties for issuing false  
            prescriptions, furnishing controlled substances for other than  
            legitimate purposes, and counterfeiting official prescription  
            forms.  (HSC Section 11153 et seq.)

          9)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.  (HSC Section 11165.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "AB 2018 would  
            repeal the requirement that a Schedule II controlled substance  
            prescription be written on a triplicate prescription, and  
            would make permanent the electronic monitoring of those same  
            drugs through the CURES system.  California is one of only 8  
            states that require a government-issued prescription for  
            Schedule II drugs.  The triplicate is widely viewed by the  
            medical and patient community as a barrier to pain management.  
             For patients, pain management is all too frequently reported  
            to be poor.  Studies indicate that cancer-related pain could  








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            be well controlled in 80% to 90% of affected patients, but  
            recent findings indicate that more than 40% of cancer patients  
            receive inadequate pain relief.  Many patients with chronic,  
            intractable pain are not treated effectively or appropriately.  
             Some physicians simply refuse to use triplicates.  Researches  
            have found that multiple-copy prescription programs result in  
            prescribers substituting drugs that do not require a  
            triplicate for those that do, which means patients may not be  
            getting the pain relief they need.  AB 2018 does not end  
            monitoring of Schedule II drugs - it simply eliminates the  
            government-issued prescription required and makes electronic  
            monitoring permanent.  The 1994 California Pain Summit  
            included a recommendation for legislators to consider:   
            'Replace the requirement for a special, state-issued  
            prescription form (triplicate system) with electronic  
            monitoring of controlled substances prescription that can  
            foster better, more effective pain management and better  
            diversion detection.'  AB 2018 implements that  
            recommendation."

          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.  
            According to the author, only 40,333 of the 74,518  
            California-licensed physicians with Schedule II privileges had  
            triplicates issued to them. 

           2)Pharmaceutical Drug Diversion:  The Need To Monitor Schedule  
            II Controlled Substances  :  DOJ's report to the Legislature  
            regarding the CURES program described the four principal  
            methods of illegal diversion of drugs:  (a) illegal sales or  
            dispensing by health care professionals; (b) inappropriate or  
            careless prescribing by the physician or dispensing by the  
            pharmacist; (c)"doctor shopping" by individuals who visit  
            several unwitting physicians to illegally obtain a  
            prescription drug; and, (d) prescription forgery, stolen  
            prescriptions, theft of drugs from a pharmacy or physician's  
            office.  According to information from a recent conference  
            sponsored by the State Board of Pharmacy:

             a)15 of the 20 most commonly abused drugs are prescription  
               drugs.








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             b)33% of illicit drug sales involve prescription drugs.

             c)Over 3.5 billion dosage units of prescription drugs are  
               diverted to illicit sales each year.

             d)Diverted prescription drugs are the fastest growing segment  
               of the illicit drug market in the United States.

             e)In 1996, over 30% of all drug abuse deaths and 25% of all  
               drug-related emergency room admissions involved lawfully  
               manufactured controlled substances. 

           3)Triplicate Prescriptions:   All prescription drugs in  
            California are monitored and regulated in a schedule system  
            similar to federal law.  The schedules identify the legality  
            and abuse potential of individual drugs.  Schedule II  
            controlled substances are the strongest, highest abuse  
            potential drugs available by prescription yet have substantial  
            medical value.  Existing law requires that any person  
            prescribing a Schedule II controlled substance issue the  
            prescription on a triplicate prescription form provided by the  
            DOJ.  Since the mid-1940's, California has administered the  
            existing system for the monitoring of Schedule II controlled  
            substances through the use of DOJ-issued, serialized  
            triplicate prescription forms.  Existing law requires the  
            pharmacist to forward the original of the prescription form to  
            the DOJ each month.  The prescriptions are sorted, coded, and  
            prepared for entry into an automated system. Although filled  
            prescriptions are reviewed, DOJ does not have the resources to  
            input all the data collected.  Thus, the vast majority of  
            information is not available to DOJ for enforcement, research,  
            or drug utilization review.

           4)Electronic Prescription Monitoring: The History Of CURES:   The  
            Controlled Substances Prescription Advisory Council,  
            established in 1992 by Senate Concurrent Resolution 74, was  
            created to evaluate, among other things, the multiple-copy  
            prescription programs and electronic data tracking systems  
            used in other states and the benefits of modernizing the  
            current system.  The Council submitted a report to the  
            Attorney General and the Legislature in December 1993.  In the  
            final report submitted to the Legislature and Attorney  
            General, the Controlled Substances Prescription Advisory  
            Council recommended that DOJ implement a technologically  








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            sophisticated data monitoring system to collect as much data  
            as is needed and provide easy access to the data collected for  
            educational, law enforcement, regulatory, and research  
            purposes.  The Council concluded that the technology was now  
            available to provide this type of monitoring system at a cost  
            not dramatically different from current costs.

          AB 3042 (Takasugi), Chapter 738, Statutes of 1996, established  
            the CURES project.  AB 3042 was sponsored by the Attorney  
            General who described the need for the legislation: "the  
            information captured on the current system is not complete and  
            therefore not useful in identifying and investigating those  
            suspected of abusing the prescribing and dispensing process?By  
            integrating existing systems, virtually 100% of the data could  
            be captured at the point of sale, and the information made  
            accessible to law enforcement."  

          As originally enacted, the CURES project was intended "to assist  
            law enforcement and regulatory agencies in their efforts to  
            control the diversion and resultant abuse of Schedule II  
            controlled substances."  (Penal Code Section 11165.)  In 1999,  
            the statutory language regarding the purposes of CURES was  
            amended to include, "and for statistical analysis, education,  
            and research." 

           5)The CURES Report:   AB 3042 required a report prepared by DOJ  
            to be submitted to the Legislature in January 1999.  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% 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  








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            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.

           6)Existing Law Provides For An Exemption For Terminally Ill:   In  
            1999, AB 2693 (Migden), Chapter 789, Statutes of 1998,  
            exempted Schedule II prescriptions from the triplicate  
            procedure when prescribed for use by a patient who has a  
            terminal illness.  Terminal illness is 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 prescribers.

           7)Arguments In Support:   Numerous organizations and individuals  
            are in support of this bill.  The arguments in support may be  
            summarized as follows:

              a)CURES is superior to the existing triplicate system at  
               detecting abuse and diversion:   The sponsor of this bill,  
               the Board of Pharmacy, states that because the triplicate  
               program relies upon manual data entry and storage, fewer  
               than 2% of all triplicate prescriptions are being entered  
               into DOJ's computer system.  CURES works instead by having  
               pharmacies make electronic copies of all Schedule II  
               prescriptions dispensed each month.  The electronic data  
               from all pharmacies is then compiled into a statewide  
               database.  The CURES program has clearly established that  
               electronic monitoring is a superior alternative to  
               collecting the more than 2 million paper prescriptions  
               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 triplicate  
               prescription process has out-lived its utility as  
               demonstrated by the small percentage of forms actually  
               being entered into the database. 

              b)Restricting the availability of controlled substances  
               interferes with the adequate and compassionate treatment of  








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               patients:   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.

              c)Triplicate prescription forms stigmatize pain reduction  
               strategies and result in physician underuse of appropriate  
               medication:   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 1990's 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  
               restrictions.  The California Medical Association states  
               that survey data indicates that 54% of physicians modify  
               their pain prescriptions based on concerns of regulatory  
               oversight, and physicians have continually expressed  
               concerns over restrictive regulations, feeling threatened,  
               and fearing harassment and/or prosecution by enforcement  
               authorities.  

              d)Triplicate prescription forms are an unnecessary  
               administrative burden that do not measurably reduce the  
               diversion of controlled substances justifying interference  
               in the doctor-patient relationship:   The California Academy  
               of Family Physicians states that triplicate prescriptions  
               are an administrative "hassle" for prescribers, can also  
               interfere with the patient-physician relationship, and  








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               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.  

              e)Small amounts of Schedule II drugs are diverted to  
               non-medical use:   ADD states "tiny amounts of Schedule II  
               drugs are diverted to non-medical use?1.4% of Schedule II  
               drugs were illegally used in 1996.  There were no Schedule  
               II drugs in the top 20 drugs of abuse in the same year.   
               Lastly, according to the DOJ data, only 1.7% of the 39,945  
               triplicate prescription forms were manually entered into an  
               automated system to check for potential illegal use."

           8)Arguments In Opposition:   The arguments in support may be  
            summarized as follows:

              a)Illegal use of Schedule II controlled substances is a  
               significant public safety problem:   The DOJ states that law  
               enforcement estimates that abuse of prescription drugs  
               accounts for nearly 50% of all drug-related injuries and  
               deaths in the country.  The illegal trade in California of  
               prescription medication may be as much as $1 billion  
               annually.  Illegal diversion, intentional misuse and over  
               prescribing of benzodiazepines accounted for 20% of drug  
               diversion arrests in California from 1988-1990. The federal  
               Drug Enforcement Administration (DEA) estimates the  
               nationwide cost of prescription drug diversion to be in  
               excess of $25 billion annually.

              b)States without serialized forms have higher rates of  
               prescription forgery:    The California Police Chiefs and  
               Peace Officers Association assert that states that do not  
               have a program of serialized prescriptions are prone to  
               high incidences of forgery of prescriptions.  For instance,  
               New York reported a 12% forgery rate prior to the  








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               implementation of its state-serialized program, while  
               implementation of the program reduced the forgery rate down  
               to 0.0006%.  Surveys performed by DOJ report that Oklahoma,  
                                                   Nevada,  North Carolina and Mississippi, which do not have  
               serialized prescription programs, have reported high  
               incidences of forgeries and counterfeited prescription  
               pads.

              c)Electronic monitoring unaccompanied by serialized forms is  
               inadequate to safeguard against forgery and counterfeiting  
               of prescriptions:   The DOJ states that CURES alone is  
               insufficient to monitor illegal diversion.  The current  
               forms provide strong evidence in the prosecution of  
               diversion cases, since each serialized prescription is  
               assigned to a specific, individual practitioner.  Moreover,  
               the original document is required as evidence in a  
               prosecution because computer printouts are not admissible  
               and present substantial issues regarding authentication and  
               reliability of the record.  A serialized prescription  
               requirement also provides control over the distribution of  
               forms to valid DEA registrants and is crucial for  
               validating the data in CURES.

              d)Serialized forms are not a deterrent to pain management:   
               increasing amounts of lawful prescriptions for Schedule II  
               controlled substances:   While proponents of the elimination  
               of California's serialized prescription requirement allege  
               that it is a deterrent to appropriate pain management,  
               federal data indicates that California practitioners have  
               prescribed ever-increasing amounts of Schedule II drugs  
               from 1980 to 1997, in parallel with United States trends.   
               If anything, serialized forms provide a higher degree of  
               protection to practitioners because distribution is limited  
               to valid DEA registrants with Schedule II privileges.

              e)Serialized forms provide for self-monitoring before  
               prescribing: CURES provides monitoring after the fact:    
               According to DOJ, the total number of pharmacies in  
               California is larger than any other state.  According to  
               DEA, California has 5,652 - 10% of the nation's 61,109  
               pharmacies.  Second to California is New York with 4,211.   
               In light of the fact that 26% of all nationally  
               DEA-registered practitioners in states with prescription  
               monitoring programs are located in California, it is  
               premature for California to move to a purely electronic  








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               monitoring system because current technology cannot ensure  
               the security of such a system. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support  

          California State 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 Academy of Pediatrics
          American Cancer Society
          American Pain Foundation
          Americans for Death with Dignity
          Assisted Home Hospice
          Betty Ford Center
          California Academy of Family Physicians
          California Academy of Ophthalmology
          California Arthritis Foundation Council
          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 Grocers Association
          California Hospice and Palliative Care Association
          California Hospital Medical Center
          California Medical Association
          California Nurses Association
          California Pharmacists Association
          California Psychiatric Association
          California Retailers Association
          California Society of Anesthesiologists, Inc.
          Catholic Healthcare West Bay Area Region
          Catholic Healthcare West North State Region
          Congress of California Seniors
          Death With Dignity National Center
          The Elizabeth Hospice
          Gray Panthers of Sacramento
          Hoffmann Hospice
          Hope Hospice, Inc.
          Hospice of Amador
          Hospice by the Bay








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          Hospice Care of California
          Hospice of the Central Coast
          Hospice of Marin
          Hospice of Napa Valley
          Hospice of Palliative Care of Contra Costa
          Hospice of Petaluma
          Hospice of San Joaquin
          Hospice Services of Lake County
          Hospice of Tulare County, Inc.
          Hospice of the Valley
          Hospice of the Valleys
          Kaiser Permanente Medical Care Program
          Madrone Hospice
          Mercy Hospital and Health Services, Merced
          Mission Hospice, Inc. of San Mateo County
          Mission Hospital Regional Medical Center
          North Bay Hospice and Bereavement
          Older Women's League of California
          Pharmaceutical Research & Manufacturers of America
          Sacramento-El Dorado Medical Society
          Saint Agnes Medical Center
          San Diego Hospice
          Southern California Cancer Pain Initiative
          St. Joseph Health System - Humboldt County
          St. Joseph Health System, Southern California Region
          St. Joseph's Medical Center
          Sutter Hospice/Roseville
          TMJ Society of California
          Torrance Memorial Home Health & Hospice
          United Food & Commerical Workers
          Visiting Nurse Association and Hospice
          VITAS Healthcare Corporation
          VNA and Hospice of Northern California
          VNA Care Hospice in the Home
          Yolo County Medical Society
          ZG International Health Care Division Individuals
          1 Private Citizen

           Opposition  

          California Attorney General
          California Narcotic Officers Association
          California Peace Officers' Association
          California Police Chiefs Association
          California State Sheriffs' Association








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          San Bernardino County Sheriff

           Analysis Prepared by  :    Bruce Chan / PUB. S. / (916) 319-3744