trolled substance monitoring programs 
under this section; 
‘‘(ii) provides an analysis of the extent 
to which the operation of controlled sub-
stance monitoring programs have reduced 
inappropriate use, abuse, or diversion of 
controlled substances or affected patient 
access to appropriate pain care in States 
operating such programs; 
‘‘(iii) determines the progress of 
States in achieving interoperability between 
controlled substance monitoring programs, 
including an assessment of technical and 
legal barriers to such activities and rec-
ommendations for addressing these bar-
riers; 
‘‘(iv) determines the feasibility of im-
plementing a real-time electronic controlled 
substance monitoring program, including 
the costs associated with establishing such 
a program; 
‘‘(v) provides an analysis of the pri-
vacy protections in place for the informa-
tion reported to the controlled substance 
monitoring program in each State receiv-
ing a grant for the establishment or oper-
ation of such program, and any rec-
ommendations for additional requirements 
for protection of this information; 
‘‘(vi) determines the feasibility of im-
plementing technological alternatives to 
centralized data storage, such as peer-to-
peer file sharing or data pointer systems, 
in controlled substance monitoring pro-
grams and the potential for such alter-
natives to enhance the privacy and security 
of individually identifiable data; and 
‘‘(vii) evaluates the penalties that 
States have enacted for the unauthorized 
use and disclosure of information main-
tained in the controlled substance moni-
toring program, and reports on the criteria 
used by the Secretary to determine wheth-
er such penalties qualify as appropriate 
pursuant to this section; and 
‘‘(B) submit a report to the Congress on 
the results of the study. 
‘‘(k) PREFERENCE.—Beginning 3 years after the 
date on which funds are first appropriated to carry out 
this section, the Secretary, in awarding any competitive
grant that is related to drug abuse (as determined by the 
Secretary) and for which only States are eligible to apply, 
shall give preference to any State with an application ap-
proved under this section. The Secretary shall have the 
discretion to apply such preference to States with existing 
controlled substance monitoring programs that meet min-
imum requirements under this section or to States that 
put forth a good faith effort to meet those requirements 
(as determined by the Secretary). 
‘‘(l) ADVISORY COUNCIL.—
‘‘(1) ESTABLISHMENT.—A State may establish 
an advisory council to assist in the establishment, 
implementation, or improvement of a controlled sub-
stance monitoring program under this section. 
‘‘(2) LIMITATION.—A State may not use 
amounts received under a grant under this section 
for the operations of an advisory council established 
under paragraph (1). 
‘‘(3) SENSE OF CONGRESS.—It is the sense of 
the Congress that, in establishing an advisory coun-
cil under this subsection, a State should consult with 
appropriate professional boards and other interested 
parties. 
‘‘(m) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘bona fide patient’ means an in-
dividual who is a patient of the practitioner involved. 
‘‘(2) The term ‘controlled substance’ means a 
drug that is included in schedule II, III, or IV of 
section 202(c) of the Controlled Substance Act. 
‘‘(3) The term ‘dispense’ means to deliver a 
controlled substance to an ultimate user by, or pur-
suant to the lawful order of, a practitioner, irrespec-
tive of whether the dispenser uses the Internet or 
other means to effect such delivery. 
‘‘(4) The term ‘dispenser’ means a physician, 
pharmacist, or other person that dispenses a con-
trolled substance to an ultimate user. 
‘‘(5) The term ‘interoperability’ with respect to 
a State controlled substance monitoring program 
means the ability of the program to electronically 
share reported information, including each of the re-
quired report components described in subsection 
(d), with another State if the information concerns 
either the dispensing of a controlled substance to an 
ultimate user who resides in such other State, or the 
dispensing of a controlled substance prescribed by a 
practitioner whose principal place of business is lo-
cated in such other State.