Should Licenses to Manufacture, Distribute, or Dispense Controlled Substances be Terminated When Registrants Cease to Exist? (H.R. 1899)

What is H.R. 1899?

(Updated November 12, 2021)

This bill was enacted on November 10, 2021

This bill, the Ensuring Compliance Against Drug Diversion Act of 2021, would terminate licenses to manufacture, distribute, or dispense controlled substances or chemicals on the Drug Enforcement Administration’s (DEA) List I, if and when the registrant dies, ceases to legally exist, discontinues business or professional practice, or surrenders their registration.

Argument in favor

Loose restrictions on registrations to manufacture, distribute, and dispense controlled substances contributed heavily to the opioid crisis. Ensuring that these registrations are canceled when their holders die, cease existing as legal entities, or surrender their registrations is an important means of keeping opioids out of the hands of wrongdoers.

Argument opposed

Limiting the transfer of licenses to manufacture, distribute, or dispense controlled substances could impede the operations of healthcare providers, pharmacies, and drug manufacturers. Controlling the opioid crisis will be better done at the point of use, such as by limiting overprescription of these highly addictive substances.

Impact

Manufacturers, distributors, or dispensers of controlled substances or List I chemicals; licenses to manufacture, distribute, or dispense controlled substances or List I chemicals; regulation of licenses to manufacture, distribute, or dispense controlled substances or List I chemicals; and the Drug Enforcement Administration (DEA).

Cost of H.R. 1899

In the 116th Congress, the Congressional Budget Office (CBO) estimated that there would be no cost to implement this bill.

Additional Info

In-Depth: Sponsoring Rep. Morgan Griffith (R-VA) reintroduced this legislation from the 116th Congress to limit the transfer of registrations to manufacture, distribute, or dispense controlled substances. After this bill passed the House Energy and Commerce Committee in the 116th Congress, Rep. Griffith said:

“The abuse of legal manufacturing and sales of opioids heavily contributed to the opioid crisis. The Ensuring Compliance Against Drug Diversion Act would tighten restrictions on registrations to manufacture, distribute, or dispense them, helping to reduce opioid abuse as our country continues to face this crisis.”

After this bill’s passage in the House during the previous session of Congress, Rep. Griffith further observed that “[t]he opioid crisis grew in part due to the abuse of opioids legally manufactured and sold.” He added that this legislation’s reform of Drug Enforcement Agency (DEA) regulations to close legal loopholes that could enable opioid abuse would be a “small but important fix that will assist in fighting the opioid epidemic.”

This legislation has one Republican cosponsor, Rep. Ben Cline (R-VA), in the 117th Congress. 

In the previous session of Congress, Rep. Griffith introduced this bill with the support of one Republican cosponsor, Rep. Greg Walden (R-OR). It passed the House by voice vote but didn’t receive a Senate vote.

Media:

• Sponsoring Rep. Morgan Griffith (R-VA) Press Release After Committee Passage (116th Congress)
  
• Sponsoring Rep. Morgan Griffith (R-VA) Press Release After House Passage (116th Congress)
  
• CBO Cost Estimate