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F I S C A L I M P A C T R E P O R T

SPONSOR Heaton

ORIGINAL DATE

LAST UPDATED

1/28/2006

2/1/2006 HB 211/aHBIC

SHORT TITLE Psuedophedrine as a Controlled Substance

SB

ANALYST McSherry

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

($2.0)

($18.0)

($2.0)

Recurring Pharmacy Board

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 179 “Methanphetamines Trafficking Penalties” and SB 195 “Prison Time

for Methamphetamine Manufacture”

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

Department of Health (DOH)

Board of Pharmacy (BOP)

SUMMARY

Synopsis of HBIC Amendments

The House Business and Industry Committee amendments make the requirements for a customer

to sign a log, with information including driver’s license number, produce photo identification,

and be limited to 9 grams of the substance only pertain to customers without a valid prescription.

The amendment also provides for the Board of Pharmacy to “monitor prices charged for com-

pounds, mixtures and preparations that contain pseudophedrine” and to adopt rules to prevent

“unwarranted price increases” resulting from the substance’s regulation.

House Bill 211/aHBIC – Page

2

Synopsis of Original Bill

House Bill 211 proposes to add pseudoephedrine to the Controlled Substances Act.

The bill would:

•

Allow non-narcotic substances to be controlled under the Controlled Substances Act

•

Require that any compound, mixture or preparation that contains any detectable quantity

of pseudoephedrine, its salts or its optical isomers, only be dispensed by a licensed phar-

macist including pseudoephedrine.

•

Require a purchaser to show photo ID, including birth date, and sign a log or receipt

showing the date, name, diver’s license number, name of the pharmacist/pharmacist in-

tern/pharmacist tech and the amount of the compound (as amended only customers with-

out a valid prescription would be subject to these requirements).

•

Limits a person to no more than nine grams of the compound within a thirty-day period,

provided that the compound is not dispensed pursuant to a valid prescription.

•

Allow removal of a product containing pseudoephedrine from Controlled Substances act

restrictions if the board determines that the product cannot be converted into metham-

phetamine.

FISCAL IMPLICATIONS

The Pharmacy Board reports that it would lose approximately $2-18 thousand in recurring reve-

nues from the licensure of the sellers of pseudoephedrine products; these licensures would have

to be discontinued should product sales be restricted to pharmacies.

SIGNIFICANT ISSUES

The Public Defender (PD) cites Ephedrine, which could be simply be derived from pseudoephed-

rine, as a necessary precursor to methamphetamine, a Schedule I controlled substance. Retail

outlets selling psuedoephedrine are thought to be the source for the precursors of most metham-

phetamine used in the United States.

PD further cites that Sudafed, a typical over-the-counter/nonprescription pseudoephedrine brand,

has a dosage of one or two 30 mg. tablets per four to six hour period. This bill would permit pos-

session of 300 Sudafed tablets monthly (9 grams = 9,000 milligrams ÷ 30 mg. = 300 tablets),

which would be enough to treat most allergy symptoms. A New Mexican with a prescription un-

der the proposed act could have all the pseudoephedrine his/her physician prescribed.

According to the Board of Pharmacy, (BOP) the illicit use of pseudoephedrine products in the

manufacture of methamphetamine is a serious problem in New Mexico. Pseudoephedrine prod-

ucts are currently available for the public’s use in the treatment of a broad range of medical con-

ditions/symptoms including the common cold, influenza, and seasonal allergies and are sold in

numerous stores, supermarkets, pharmacies, and other businesses.

BOP asserts that restricting the sale of pseudoephedrine products and maintaining a log of all

sales will reduce the ability of illicit manufacturers of methamphetamine form utilizing “smirfs”

who purchase pseudoephedrine from multiple locations on a daily basis.

House Bill 211/aHBIC – Page

3

BOP points out that the drug manufacturing industry has converted many of the products that

contained pseudophedrine by replacing it with phenylphrine (another decongestant). This bill

would not restrict the sale of reformulated products and they may be offered by any business.

DOH reports that methamphetamine deaths have increased from 12 in 2002 to 21 in 2004.

PERFORMANCE IMPLICATIONS

The Public Defender predicts that, over time, enactment of the proposed bill could decrease the

workload of the courts, prosecutors, and Public Defender Department by a predicted reduction in

the methamphetamine problem in New Mexico, and a corresponding reduction in the criminal

cases associated with it.

DOH cites that the proposed bill would support its Strategic Plan in terms of controlling inap-

propriate use of addictive controlled substances.

ADMINISTRATIVE IMPLICATIONS

The Pharmacy Board reports that it would be required to change current regulations concerning

the sale of pseudoephedrine products and to stop licensing the retail and wholesale distributors of

the products.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Legislation was passed during the 2004 legislative session authorizing the Board of Pharmacy to

license the whole-salers/retailers of methamphetamine precursors (including pseudoephedrine)

and to adopt regulations for the sale of those products. The Board adopted regulations that in-

cluded security requirements for the drugs, training requirements for the employees, and limits

on sales to any one individual. The regulations became effective January 30, 2005. These li-

censes would be discontinued if sales are effectively limited to licensed pharmacies.

House Bill 211 relates to House Bill 179 “Methanphetamines Trafficking Penalties” and SB 195

“Prison Time for Methamphetamine Manufacture”

TECHNICAL ISSUES

The Board of Pharmacy licenses 336 pharmacies in New Mexico. Not every city/or community

in New Mexico has a pharmacy.

OTHER SUBSTANTIVE ISSUES

The Board of Pharmacy suggests the creation of a possession penalty for quantities indicative of

the manufacture of methamphetamine. The bill allows for 9 grams of psuedoephedrine to be

purchased every 30 days; the Board suggests quantities exceeding 18 grams should be consid-

ered possession with intent to manufacture and be a 4

th

degree felony.

Department of Health, points out that nationally, the number of seizures of methamphetamines

increased from 3000, in 1997 to 14,000 in 2002 and that in 2003, the Youth Risk and Resiliency

House Bill 211/aHBIC – Page

4

Survey found that 8.2 percent of high school-aged youth in New Mexico reported using

methamphetamine in the past year, up from 5.3 percent in 2001.

DOH cites potential public concern about infringement on privacy rights relating to the regis-

traion requirement included in the bill requiring a person’s personal information including driv-

er’s license number or government ID number.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The Board of Pharmacy would continue to regulate the sale of pseudoephedrine. Medication that

can be sold without a prescription (such as pseudoepherine) would not be covered by the Con-

trolled Substances Act and would be available for purchase in facilities other than pharmacies.

EM/nt