1.1    .................... moves to amend H. F. No. 1041 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [62Q.138] PRESCRIBING OF CONTROLLED SUBSTANCES.
1.4    All health plan companies and other entities administering health plans, including
1.5but not limited to entities described in section 60A.23, subdivision 8, shall develop and
1.6implement a plan to: (1) monitor the prescribing of controlled substances listed in section
1.7152.02, subdivisions 3 and 4, and those substances defined by the board of pharmacy
1.8under section 152.02, subdivisions 7, 8, and 12, by enrolled providers or providers
1.9under contract; and (2) require enrolled providers or providers under contract to report
1.10information related to potential patient abuse of the controlled substances to the health
1.11plan company or administrative entity, and the board of pharmacy.

1.12    Sec. 2. Minnesota Statutes 2006, section 152.11, is amended by adding a subdivision to
1.13read:
1.14    Subd. 2d. Identification requirement for schedule II or III controlled substance.
1.15    No person may dispense a controlled substance included in schedule II or III without
1.16requiring the person purchasing the controlled substance to present valid photographic
1.17identification, unless the person purchasing the controlled substance, or if applicable the
1.18person for whom the controlled substance prescription is written, is known to the dispenser.

1.19    Sec. 3. [152.126] SCHEDULE II AND III CONTROLLED SUBSTANCES
1.20PRESCRIPTION ELECTRONIC REPORTING SYSTEM.
1.21    Subdivision 1. Definitions. For purposes of this section, the terms defined in this
1.22subdivision have the meanings given.
1.23    (a) "Board" means the Minnesota State Board of Pharmacy established under
1.24chapter 151.
2.1    (b) "Controlled substances" means those substances listed in section 152.02,
2.2subdivisions 3 and 4, and those substances defined by the board pursuant to section
2.3152.02, subdivisions 7, 8, and 12.
2.4    (c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision
2.530. Dispensing does not include the direct administering of a controlled substance to a
2.6patient by a licensed health care professional.
2.7    (d) "Dispenser" means a person authorized by law to dispense, pursuant to a valid
2.8prescription, a controlled substance. A dispenser does not include a licensed hospital
2.9pharmacy that distributes controlled substances for inpatient hospital care.
2.10    (e) "Prescriber" means a licensed health care professional who is authorized to
2.11prescribe a controlled substance under section 152.12, subdivision 1.
2.12    (f) "Prescription" has the meaning given in section 151.01, subdivision 16.
2.13    Subd. 2. Prescription electronic reporting system. (a) The board shall establish
2.14by January 1, 2009, an electronic system for reporting the information required under
2.15subdivision 4 for all controlled substances dispensed within the state. Data for controlled
2.16substance prescriptions that are dispensed in a quantity small enough to provide treatment
2.17to a patient for a period of 48 hours or less need not be reported.
2.18    (b) The board may contract with a vendor for the purpose of obtaining technical
2.19assistance in the design, implementation, and maintenance of the electronic reporting
2.20system. The vendor's role shall be limited to providing technical support to the board
2.21concerning the software, databases, and computer systems required to interface with the
2.22existing systems currently used by pharmacies to dispense prescriptions and transmit
2.23prescription data to other third parties.
2.24    Subd. 3. Prescription Electronic Reporting Advisory Committee. (a) The board
2.25may convene an advisory committee. If the board convenes a committee, the committee
2.26must include at least one representative of:
2.27    (1) the Department of Health;
2.28    (2) the Department of Human Services;
2.29    (3) each health-related licensing board that licenses prescribers;
2.30    (4) a professional medical association, which may include an association of pain
2.31management and chemical dependency specialists;
2.32    (5) a professional pharmacy association;
2.33    (6) a consumer privacy or security advocate; and
2.34    (7) a consumer or patient rights organization.
2.35    (b) The advisory committee shall advise the board on the development and operation
2.36of the electronic reporting system, including, but not limited to:
3.1    (1) technical standards for electronic prescription drug reporting;
3.2    (2) proper analysis and interpretation of prescription monitoring data; and
3.3    (3) an evaluation process for the program.
3.4    Subd. 4. Reporting requirements. (a) Each dispenser must submit the following
3.5data to the board or its designated vendor:
3.6    (1) name of the prescriber;
3.7    (2) national provider identifier of the prescriber;
3.8    (3) name of the dispenser;
3.9    (4) national provider identifier of the dispenser;
3.10    (5) name of the patient for whom the prescription was written;
3.11    (6) date of birth of the patient for whom the prescription was written;
3.12    (7) date the prescription was written;
3.13    (8) date the prescription was filled;
3.14    (9) name and strength of the controlled substance;
3.15    (10) quantity of controlled substance prescribed; and
3.16    (11) quantity of controlled substance dispensed.
3.17    (b) The dispenser must submit the required information by a procedure and in a
3.18format established by the board.
3.19    (c) A dispenser is not required to submit this data for those controlled substance
3.20prescriptions dispensed for:
3.21(1) individuals residing in licensed skilled nursing or intermediate care facilities;
3.22(2) individuals receiving assisted living services under chapter 144G or through a
3.23medical assistance home and community-based waiver;
3.24(3) individuals receiving medication intravenously;
3.25(4) individuals receiving hospice and other palliative or end-of-life care; and
3.26(5) individuals receiving services from a home care provider regulated under chapter
3.27144A.
3.28    Subd. 5. Use of data by board. (a) The board shall develop and maintain a database
3.29of the data reported under subdivision 4. The board shall maintain data that could identify
3.30an individual prescriber or dispenser in encrypted form. The database may be used by
3.31permissible users identified under subdivision 6 for the identification of:
3.32    (1) individuals receiving prescriptions for controlled substances from prescribers
3.33who subsequently obtain controlled substances from dispensers in quantities or with a
3.34frequency inconsistent with generally recognized standards of dosage for those controlled
3.35substances; and
4.1    (2) individuals presenting forged or otherwise false or altered prescriptions for
4.2controlled substances to dispensers.
4.3    (b) No permissible user identified under subdivision 6 may access the database
4.4for the sole purpose of identifying prescribers of controlled substances for unusual or
4.5excessive prescribing patterns without a valid search warrant or court order.
4.6    (c) No personnel of a state or federal occupational licensing board or agency may
4.7access the database for the purpose of obtaining information to be used to initiate or
4.8substantiate a disciplinary action against a prescriber.
4.9    (d) Data reported under subdivision 4 shall be retained by the board in the database
4.10for a six-month period, and shall be removed from the database six months from the
4.11date the data was received.
4.12    Subd. 6. Access to reporting system data. (a) Except as indicated in this
4.13subdivision, the data submitted to the board under subdivision 4 is private data on
4.14individuals as defined in section 13.02, subdivision 12.
4.15    (b) Except as specified in subdivision 5, the following persons shall be considered
4.16permissible users and may access the data submitted under subdivision 4 in the same or
4.17similar manner, and for the same or similar purposes, as those persons who are authorized
4.18to access similar private data on individuals under federal and state law:
4.19    (1) a prescriber, to the extent the information relates specifically to a current patient
4.20of the prescriber, to whom the practitioner is prescribing or considering prescribing any
4.21controlled substance;
4.22    (2) a dispenser to the extent the information relates specifically to a current patient to
4.23whom that dispenser is dispensing or considering dispensing any controlled substance;
4.24    (3) an individual who is the recipient of a controlled substance prescription for
4.25which data was submitted under subdivision 4;
4.26    (4) personnel of the board specifically assigned to conduct a bona fide investigation
4.27of a specific licensee;
4.28    (5) personnel of the board engaged in the collection of controlled substance
4.29prescription information as part of the assigned duties and responsibilities under this
4.30section;
4.31    (6) authorized personnel of a vendor under contract with the board who are engaged
4.32in the design, implementation, and maintenance of the electronic reporting system as part
4.33of the assigned duties and responsibilities of their employment, provided that access to data
4.34is limited to the minimum amount necessary to test and maintain the system databases;
4.35    (7) federal, state, and local law enforcement authorities engaged in a bona fide
4.36investigation of a specific person; and
5.1    (8) personnel of the medical assistance program assigned to use the data collected
5.2under this section to identify recipients whose usage of controlled substances may warrant
5.3restriction to a single primary care physician, a single outpatient pharmacy, or a single
5.4hospital.
5.5    (c) Any permissible user identified in paragraph (b), who directly accesses
5.6the data electronically, shall implement and maintain a comprehensive information
5.7security program that contains administrative, technical, and physical safeguards that
5.8are appropriate to the user's size and complexity, and the sensitivity of the personal
5.9information obtained. The permissible user shall identify reasonably foreseeable internal
5.10and external risks to the security, confidentiality, and integrity of personal information
5.11that could result in the unauthorized disclosure, misuse, or other compromise of the
5.12information and assess the sufficiency of any safeguards in place to control the risks.
5.13    (d) The board shall not release data submitted under this section unless it is provided
5.14with evidence, satisfactory to the board, that the person requesting the information is
5.15entitled to receive the data. Access to the data by law enforcement authorities must be
5.16accompanied by a valid search warrant.
5.17    (e) The board shall not release the name of a prescriber without the written consent
5.18of the prescriber or a valid search warrant or court order. The board shall provide a
5.19mechanism for a prescriber to submit to the board a signed consent authorizing the release
5.20of the prescriber's name when data containing the prescriber's name is requested.
5.21    (f) The board shall maintain a log of all persons who access the data and shall ensure
5.22that any permissible user complies with paragraph (c) prior to attaining direct access to
5.23the data.
5.24    Subd. 7. Disciplinary action. (a) A dispenser who knowingly fails to submit data to
5.25the board as required under this section is subject to disciplinary action by the appropriate
5.26health-related licensing board.
5.27    (b) A prescriber or dispenser authorized to access the data who knowingly discloses
5.28the data in violation of state or federal laws relating to the privacy of healthcare data shall
5.29be subject to disciplinary action by the appropriate health-related licensing board.
5.30    Subd. 8. Evaluation and reporting. (a) The board shall evaluate the prescription
5.31electronic reporting system to determine if the system is cost-effective and whether it is
5.32negatively impacting appropriate prescribing practices of controlled substances. The
5.33board may contract with a vendor to design and conduct the evaluation.
5.34    (b) The board shall submit the evaluation of the system to the legislature by January
5.3515, 2010.

6.1    Sec. 4. FEDERAL GRANTS.
6.2    The Board of Pharmacy shall apply for any applicable federal grants or other nonstate
6.3funds to establish and fully implement the prescription electronic reporting system.

6.4    Sec. 5. BOARD OF PHARMACY.
6.5    The Board of Pharmacy shall not increase the license fees of pharmacists or
6.6pharmacies in order to adequately fund the prescription electronic reporting system under
6.7Minnesota Statutes, section 152.126, without specific authority from the legislature.

6.8    Sec. 6. BOARD OF MEDICAL PRACTICE; TRAINING REQUIREMENTS.
6.9    The board of medical practice shall develop training requirements on the appropriate
6.10prescribing of controlled substances listed in Minnesota Statutes, section 152.02,
6.11subdivisions 3 and 4, and those substances defined by the board of pharmacy under
6.12Minnesota Statutes, section 152.02, subdivisions 7, 8, and 12, for pain management, and
6.13shall report to the legislature by December 15, 2007, on the training requirements.

6.14    Sec. 7. EFFECTIVE DATE.
6.15    (a) Section 3 is effective July 1, 2007, or upon receiving sufficient nonstate funds to
6.16implement the prescription electronic reporting program, whichever is later. In the event
6.17that nonstate funds are not secured by the Board of Pharmacy to adequately fund the
6.18implementation of the prescription electronic reporting program, the board is not required
6.19to implement section 3 without a subsequent appropriation from the legislature.
6.20    (b) Sections 4 and 5 are effective the day following final enactment."
6.21Amend the title accordingly