House File 722 - Reprinted



                                    HOUSE FILE       
                                    BY  COMMITTEE ON HUMAN RESOURCES

                                    (SUCCESSOR TO HSB 226)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the creation of an electronic drug database,
  2    establishing fees, providing penalties, and providing an
  3    effective date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1293HV 81
  6 rn/sh/8

PAG LIN



  1  1    Section 1.  Section 22.7, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  51.  The information contained in the
  1  4 electronic drug database established in section 124.510A,
  1  5 except to the extent that disclosure is authorized pursuant to
  1  6 section 124.510C.
  1  7    Sec. 2.  NEW SECTION.  124.510A  ELECTRONIC DRUG DATABASE
  1  8 ESTABLISHED.
  1  9    The board shall establish and maintain an electronic drug
  1 10 database.  The board shall use the electronic drug database to
  1 11 monitor the misuse, abuse, and diversion of selected
  1 12 controlled substances and other drugs the board includes in
  1 13 the database pursuant to section 124.510E, subsection 1,
  1 14 paragraph "i".  The board shall electronically collect and
  1 15 disseminate information pursuant to sections 124.510C and
  1 16 124.510D and rules adopted pursuant to this division.  The
  1 17 board may contract with a third=party/private vendor to
  1 18 administer the electronic drug database.
  1 19    Sec. 3.  NEW SECTION.  124.510B  DATA REPORTING.
  1 20    1.  Each licensed pharmacy that dispenses selected drugs
  1 21 identified by the board by rule to patients in the state, and
  1 22 each licensed pharmacy located in the state that dispenses
  1 23 such selected drugs to patients inside or outside the state,
  1 24 unless specifically excepted in this section or by rule, shall
  1 25 submit the following prescription information to the board or
  1 26 its designee:
  1 27    a.  Pharmacy identification.
  1 28    b.  Patient identification.
  1 29    c.  Prescriber identification.
  1 30    d.  The date the prescription was issued by the prescriber.
  1 31    e.  The date the prescription was dispensed.
  1 32    f.  An indication of whether the prescription dispensed is
  1 33 new or a refill.
  1 34    g.  Identification of the drug dispensed.
  1 35    h.  Quantity of the drug dispensed.
  2  1    i.  The number of days' supply of the drug dispensed.
  2  2    j.  Serial or prescription number assigned by the pharmacy.
  2  3    k.  Source of payment for the prescription.
  2  4    2.  Information shall be submitted electronically in the
  2  5 format specified by the board unless the board has granted a
  2  6 waiver and approved an alternate format.
  2  7    3.  Information shall be timely transmitted as designated
  2  8 by the board by rule, unless the board grants an extension.
  2  9 The board may grant an extension if either of the following
  2 10 occurs:
  2 11    a.  The pharmacy suffers a mechanical or electronic
  2 12 failure, or cannot meet the deadline established by the board
  2 13 for other reasons beyond the pharmacy's control.
  2 14    b.  The board or its designee is unable to receive
  2 15 electronic submissions.
  2 16    4.  This section shall not apply to a prescriber
  2 17 furnishing, dispensing, supplying, or administering drugs to
  2 18 the prescriber's patient, or to dispensing by a licensed
  2 19 pharmacy for the purposes of inpatient hospital care,
  2 20 inpatient hospice care, or long=term residential facility
  2 21 patient care.
  2 22    Sec. 4.  NEW SECTION.  124.510C  DATA ACCESS.
  2 23    1.  The board or its designee may provide information from
  2 24 the electronic drug database to all of the following:
  2 25    a.  A person who is a designated representative of a
  2 26 governmental entity responsible for the licensure, regulation,
  2 27 or discipline of licensed health care professionals authorized
  2 28 to prescribe or dispense drugs, who is involved in an
  2 29 investigation of a person licensed, regulated, or subject to
  2 30 discipline by the entity, and who is seeking access to
  2 31 information in the database that is relevant to the subject
  2 32 matter of the investigation and pursuant to a written probable
  2 33 cause determination.
  2 34    b.  A federal, state, county, township, or municipal
  2 35 officer of this or any other state, or the United States,
  3  1 whose duty it is to enforce the laws relating to prescription
  3  2 drugs and who is actively engaged in a specific investigation
  3  3 of a specific person and is seeking access to information in
  3  4 the database pursuant to a probable cause determination or
  3  5 warrant.
  3  6    c.  A properly convened grand jury pursuant to a subpoena
  3  7 properly issued.
  3  8    d.  A pharmacist or prescriber who requests the information
  3  9 and certifies in a form specified by the board that it is for
  3 10 the purpose of providing medical or pharmaceutical care to a
  3 11 patient of the pharmacist or prescriber.
  3 12    e.  An individual who requests the individual's own
  3 13 database information in accordance with the procedure
  3 14 established in rules of the board adopted under section
  3 15 124.510E.
  3 16    2.  The board or its designee shall maintain a record of
  3 17 each person that requests information from the database.
  3 18 Pursuant to rules adopted by the board under section 124.510E,
  3 19 the board may use the records to document and report
  3 20 statistics and law enforcement outcomes and to identify
  3 21 inappropriate access or other prohibited acts.  The board or
  3 22 its designee may provide records of a person's requests for
  3 23 database information to the following persons:
  3 24    a.  Pursuant to a probable cause determination, a
  3 25 designated representative of a governmental entity that is
  3 26 responsible for the licensure, regulation, or discipline of
  3 27 licensed health care professionals authorized to prescribe or
  3 28 dispense drugs who is involved in a specific investigation of
  3 29 the individual who submitted the request.
  3 30    b.  Pursuant to a probable cause determination or warrant,
  3 31 a federal, state, county, township, or municipal officer of
  3 32 this or any other state or the United States, whose duty is to
  3 33 enforce the laws relating to prescription drugs, and who is
  3 34 actively engaged in a specific investigation of the specific
  3 35 person who submitted the request.
  4  1    3.  Information contained in the database and any
  4  2 information obtained from it is strictly confidential medical
  4  3 information, is not a public record pursuant to chapter 22,
  4  4 and is not subject to discovery, subpoena, or other means of
  4  5 legal compulsion for release except as provided in this
  4  6 division.  Information contained in the records of requests
  4  7 for information from the database is privileged and
  4  8 confidential, is not a public record, and is not subject to
  4  9 discovery, subpoena, or other means of legal compulsion for
  4 10 release except as provided in this division.  Information from
  4 11 the database shall not be released, shared with an agency or
  4 12 institution, or made public except as provided in this
  4 13 division.
  4 14    4.  Information collected for the database shall be
  4 15 retained in the database for four years.  The information
  4 16 shall then be destroyed unless a law enforcement agency or a
  4 17 governmental entity responsible for the licensure, regulation,
  4 18 or discipline of licensed health care professionals authorized
  4 19 to prescribe or dispense drugs has submitted a written request
  4 20 to the board or its designee for retention of specific
  4 21 information in accordance with rules adopted by the board
  4 22 under section 124.510E.
  4 23    5.  A pharmacist or other dispenser making a report to the
  4 24 database in good faith pursuant to this division is immune
  4 25 from any liability, civil, criminal, or administrative, which
  4 26 might otherwise be incurred or imposed as a result of the
  4 27 report.
  4 28    6.  Nothing in this section shall require a pharmacist or
  4 29 prescriber to obtain information about a patient from the
  4 30 database.  A pharmacist or prescriber does not have a duty and
  4 31 shall not be held liable in damages to any person in any civil
  4 32 or derivative criminal or administrative action for injury,
  4 33 death, or loss to person or property on the basis that the
  4 34 pharmacist or prescriber did or did not seek or obtain
  4 35 information from the database.  A pharmacist or prescriber
  5  1 acting in good faith is immune from any civil, criminal, or
  5  2 administrative liability that might otherwise be incurred or
  5  3 imposed for requesting or receiving information from the
  5  4 database.
  5  5    7.  The board shall not charge a fee to a pharmacy,
  5  6 pharmacist, or prescriber for the establishment, maintenance,
  5  7 or administration of the database.  The board shall not charge
  5  8 a fee for the transmission of data to the database nor for the
  5  9 receipt of information from the database, except that the
  5 10 board may charge a reasonable fee to an individual who
  5 11 requests the individual's own database information or to a
  5 12 person requesting statistical, aggregate, or nonpersonally
  5 13 identified information from the database.  A fee charged
  5 14 pursuant to this subsection shall not exceed the cost of
  5 15 providing the requested information and shall be considered a
  5 16 repayment receipt as defined in section 8.2.
  5 17    Sec. 5.  NEW SECTION.  124.510D  DATA REVIEW AND REFERRAL.
  5 18    The board or its designee shall review the information in
  5 19 the electronic drug database.  If the board determines,
  5 20 consistent with the board's authority under this chapter or
  5 21 chapter 155A, that there is probable cause to believe that
  5 22 drug diversion or another violation of law may have occurred,
  5 23 the board shall notify the appropriate law enforcement agency
  5 24 or the governmental entity responsible for the licensure,
  5 25 regulation, or discipline of the licensed health care
  5 26 professional, and shall supply information required to
  5 27 initiate an investigation.  The board shall not refer
  5 28 information relating to an individual for further
  5 29 investigation except upon a probable cause determination.  A
  5 30 probable cause determination shall be consistent with
  5 31 guidelines developed by the advisory council established under
  5 32 section 124.510F.
  5 33    Sec. 6.  NEW SECTION.  124.510E  RULES AND REPORTING.
  5 34    1.  The board shall adopt rules in accordance with chapter
  5 35 17A to carry out the purposes of, and to enforce the
  6  1 provisions of, this division.  The rules shall include but not
  6  2 be limited to the development of procedures relating to:
  6  3    a.  Identifying each patient about whom information is
  6  4 entered into the electronic drug database.
  6  5    b.  An electronic format for the submission of information
  6  6 from pharmacies.
  6  7    c.  A waiver to submit information in another format for a
  6  8 pharmacy unable to submit information electronically.
  6  9    d.  Granting by the board of a request from a law
  6 10 enforcement agency or a governmental entity responsible for
  6 11 the licensure, regulation, or discipline of licensed health
  6 12 care professionals authorized to prescribe or dispense drugs
  6 13 for the retention of information scheduled for deletion from
  6 14 the database after four years when the information pertains to
  6 15 an open investigation being conducted by the agency or entity.
  6 16    e.  An application for an extension of time by a pharmacy
  6 17 regarding information to be transmitted to the board or its
  6 18 designee.
  6 19    f.  The submission by a person or governmental entity to
  6 20 which the board is authorized to provide information of a
  6 21 request for the information and a procedure for the
  6 22 verification of the identity of the requestor.
  6 23    g.  Use by the board of the database request records
  6 24 required by section 124.510C, subsection 2, to document and
  6 25 report statistics and law enforcement outcomes and to identify
  6 26 inappropriate access or other prohibited acts.
  6 27    h.  Submission of a request by an individual for the
  6 28 individual's own database information and verification of the
  6 29 identity of the requestor.
  6 30    i.  The development of a list of controlled substances and
  6 31 other drugs that shall be included in the database.
  6 32    j.  Access by a pharmacist or prescriber to information in
  6 33 the database pursuant to a written agreement with the board.
  6 34    k.  Terms and conditions of the contract, if the board
  6 35 contracts for database administration with a third=party or
  7  1 private vendor.
  7  2    l.  The correction or deletion of erroneous information
  7  3 from the database.
  7  4    2.  No later than January 1, 2008, and every two years
  7  5 thereafter, the board shall present to the general assembly
  7  6 and the governor a report of the following:
  7  7    a.  The cost to the state of implementing and maintaining
  7  8 the database.
  7  9    b.  Information from pharmacies, prescribers, the board,
  7 10 and others regarding the usefulness of the database.
  7 11    c.  Information from pharmacies, prescribers, the board,
  7 12 and others regarding the board's effectiveness in providing
  7 13 information from the database.
  7 14    d.  Information documenting the timely transmission of
  7 15 information from the electronic drug database to authorized
  7 16 requestors.
  7 17    Sec. 7.  NEW SECTION.  124.510F  ADVISORY COUNCIL
  7 18 ESTABLISHED.
  7 19    The board shall establish an advisory council to provide
  7 20 oversight to the electronic drug database program.  The board
  7 21 shall adopt rules specifying the duties and activities of the
  7 22 advisory council and related matters.
  7 23    1.  The council shall consist of three licensed
  7 24 pharmacists, three licensed physicians, two licensed
  7 25 prescribers who are not physicians, and two members of the
  7 26 general public.  The board shall solicit recommendations for
  7 27 health professional council members from Iowa health
  7 28 professional licensing boards, associations, and societies.
  7 29 The license of each health professional appointed to and
  7 30 serving on the advisory council shall be current and in good
  7 31 standing with the professional's licensing board.
  7 32    2.  The council may make recommendations to advance the
  7 33 goals of the database, which include identification of misuse
  7 34 and diversion of identified controlled substances and other
  7 35 drugs and enhancement of the quality of health care delivery
  8  1 in this state.
  8  2    3.  Among other things, the council shall:
  8  3    a.  Assist the board in developing criteria for granting
  8  4 requests by researchers and other persons for statistical,
  8  5 aggregate, or nonpersonally identified information using
  8  6 database information, developed consistent with the goals of
  8  7 the database.
  8  8    b.  Assist the board in ensuring patient confidentiality
  8  9 and the integrity of the patient's treatment relationship with
  8 10 the patient's health care provider.
  8 11    c.  Make recommendations regarding the continued benefits
  8 12 of maintaining the electronic drug database in relationship to
  8 13 cost and other burdens to the board.  The council's
  8 14 recommendations shall be included in reports required by
  8 15 section 124.510E, subsection 2.
  8 16    3.  Members of the advisory council shall be eligible to
  8 17 request and receive actual expenses for their duties as
  8 18 members of the advisory council, subject to reimbursement
  8 19 limits imposed by the department of administrative services,
  8 20 and shall also be eligible to receive a per diem compensation
  8 21 as provided in section 7E.6, subsection 1.
  8 22    Sec. 8.  NEW SECTION.  124.510G  PROHIBITED ACTS AND
  8 23 PENALTIES.
  8 24    The failure of a licensed pharmacist or licensed prescriber
  8 25 to comply with the requirements of this division, or the
  8 26 performance or causing the performance of, or the aiding and
  8 27 abetting of another person in the performance of, any of the
  8 28 prohibited acts identified in this section shall constitute
  8 29 grounds for disciplinary action against the pharmacist or
  8 30 prescriber by the appropriate professional licensing board.
  8 31 Each licensing board that licenses prescribers and drug
  8 32 dispensers subject to the provisions of this division may
  8 33 adopt rules in accordance with chapter 17A to implement the
  8 34 provisions of this section and may impose penalty as allowed
  8 35 under section 272C.3.  In addition, a civil penalty not to
  9  1 exceed twenty=five thousand dollars for each violation may be
  9  2 imposed.
  9  3    1.  A pharmacist who willfully and knowingly fails to
  9  4 submit prescription information to the board or its designee
  9  5 as required by this division, or who knowingly and
  9  6 intentionally submits prescription information known to the
  9  7 pharmacist to be false or fraudulent, may be subject to
  9  8 disciplinary action by the board.
  9  9    2.  A person authorized to access or receive prescription
  9 10 information pursuant to this division who willfully and
  9 11 knowingly discloses or attempts to disclose such information
  9 12 with the intent to cause harm to another person in violation
  9 13 of this division is guilty of a class "D" felony.
  9 14    3.  A person who willfully and knowingly uses, releases,
  9 15 publishes, or otherwise makes available to another person any
  9 16 personally identifiable information obtained from or contained
  9 17 in the database is guilty of a serious misdemeanor.
  9 18    4.  A person without lawful authority who obtains or
  9 19 attempts to obtain information, obtains or attempts to obtain
  9 20 unauthorized access to, or who willfully and knowingly alters
  9 21 or destroys valid information contained in the database is
  9 22 guilty of a class "D" felony.
  9 23    5.  A person authorized to access or receive prescription
  9 24 information pursuant to this division who knowingly and
  9 25 intentionally discloses confidential information to a person
  9 26 who is not authorized to receive the information pursuant to
  9 27 this division is guilty of a serious misdemeanor.
  9 28    6.  This section shall not preclude a pharmacist or
  9 29 prescriber who requests and receives information from the
  9 30 database consistent with the requirements of this chapter from
  9 31 otherwise lawfully providing that information to any other
  9 32 person for medical or pharmaceutical care purposes.
  9 33    Sec. 9.  EFFECTIVE DATE.  This Act, being deemed of
  9 34 immediate importance, takes effect upon enactment.
  9 35 HF 722
 10  1 rn:nh/es/25