An Act to amend the Internal Revenue Code to permit the filling of oral prescriptions for certain drugs, and for other purposes
PL 83-729 (S.3447), enacted 08/31/1954

i68STAT.] 
PUBLIC LAW 729-AUG. 31, 1954 
lOOl 
"(1) $390, while he is assigned to duty as an aide to the Fire 
Chief or to a Deputy or Battalion Fire Chief; 
"(2) $208, while he is assigned to duty as a regular first driver-
operator of a fire department hose wagon, aerial ladder truck, 
rescue squad, or fire department ambulance; 
"(3) $390, while he is assigned to duty as a chief radio tech-
nician ; and 
" (4) $208, while he is assigned to duty as a chief photographer." 
SEC. 6. Sections 1, 2, 3, and 4 shall take effect as of July 1,1953, and 
section 5 shall take effect on the first day of the first pay period of 
the Fire Department of the District of Columbia which begins after 
the date of the enactment of this Act. 
Approved August 31, 1954. 
Public Law 729 
CHAPTER 1147 
^ ^ ACT 
August 31, 1954 
To amend the Internal Revenue Code to permit the filling of oral prescriptions 
P'^^^^^ 
for certain dru.ns, and for other purposes. 
Effective date. 
Narcotic drugs. 
Oral prescri]f>» 
Be it enacted hy the Senate and House of Reyresentatwes 
of the 
United States of America in Congress assembled^ That section 2554 
(c) (1) of the Internal Revenue Code of 1939 is amended to read as tio'iiV.' 
^ ^^ ^ ' 
68A Stat. 94 2, 
f o l l o w s : 
551. 
"(1) USE or D
R
U
G
S IN PROFESSIONAL PRACTICE.—To the dispens-
ing or distribution of narcotic drugs to a patient by a physician, 
dentist, veterinary surgeon, or other practitioner, registered un-
der section 3221, in the course of his professional practice only: sslf"^ ^
*
®
*
* ^^^' 
Provided^ That such physician, dentist, veterinary surgeon, or 
other practitioner, shall keep a record of all such drugs dispensed 
or distributed, showing the amount dispensed or distributed, the 
date, and the name and address of the patient to whom such drugs 
are dispensed or distributed, except such as may be dispensed 
^^ 
or distributed to a patient upon whom such physician, dentist, 
veterinary surgeon, or other practitioner, shall personally attend; 
and such record shall be kept for a period of two years from the 
date of dispensing or distributing such drugs, subject to inspec-
tion, as provided in section 2556." 
56^7*^ ^
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SEC. 2. Section 2554 (c) (2) of the Internal Revenue Code of 1939 
is amended to read as follows: 
"(2) PRESCRIPTION.—To the sale, dispensing, or distribution 
of narcotic drugs by a dealer to a consumer under and in pursuance 
of a written prescription issued by a physician, dentist, veterinary 
surgeon, or other practitioner, registered under section 3221: Pro-
vided^ hoioever^ That (1) such prescription shall be dated as 
of the day on which signed and shall be signed by the physician, 
dentist, veterinary surgeon, or other practitioner, who shall have 
issued the same; (2) that such dealer shall preserve such prescrip-
tion for a period of two years from the day on which such prescrip-
tion is filled in such a way as to be readily accessible to inspection 
by the officers, agents, employees, and officials mentioned in section 
2556. 
"In lieu of a written prescription for such narcotic drugs or 
compounds of a narcotic drug which the Secretary, in his discre-
tion (after considering any views expressed on the subject by the 
Surgeon General, United States Public Health Service; the Com-
missioner, United States Food and Drug Administration, the re-
spective heads of State narcotic law enforcement agencies, and 
1002 
PUBLIC LAW 729-AUG. 31, 1954 
[68 STAT. 
the respective secretaries of national associations representing (a) 
narcotic drug manufacturers, (b) physicians, and (c) pharma-
cists), shall find and by regulation designate to possess relatively 
little or no addiction liability, the sale, dispensing, or distribution 
may be made by a dealer to a consumer upon oral prescription of 
a duly registered physician, dentist, veterinary surgeon, or other 
practitioner, which oral prescription is reduced promptly to writ-
ing, and the writing filed and preserved by the dealer for a period 
of two years from the date on which such prescription is filled 
in such a way as to be readily accessible to inspection by the 
officers, agents, employees, and officials mentioned in section 2556. 
In issuing an oral prescription, the prescriber shall furnish the 
dealer with the same information as is required by law or regula-
tion in case of a written prescription for narcotic drugs or com-
pounds of a narcotic drug except for the written signature of the 
prescriber, and the dealer who fills such prescription shall be re-
quired to inscribe such information on the written record of the 
prescription made, filed and preserved by him, and shall inscribe 
on the label of the container of the narcotic drug or compound of 
a narcotic drug the same information as is required in filling a 
written prescription. 
An oral prescription shall not be refilled. 
"If the Secretary shall subsequently determine that a narcotic 
drug or a compound of a narcotic drug, to which the oral prescrip-
tion procedure described in the preceding paragraph has been 
made applicable, possesses a degree of drug addiction liability 
that, in his opinion, results in abusive use of such procedure, 
Publicationin 
he shall by regulation publish the determination in the Federal 
Register. 
The determination shall be final, and after the expira-
tion of a period of six months from the date of its publication, 
the oral prescription procedure described in the preceding para-
graph shall cease to apply to the particular narcotic drug or to 
the particular compound of a narcotic drug which is the subject 
of the determination." 
5s\f^ s*«*- ^^2. 
SEC. 3. Section 2553 (b) (1) of the Internal Revenue Code of 
1939 is amended to read as follows: 
"(1) PRESCRIPTIONS.—To any person having in his or her pos-
session any narcotic drugs or compounds of narcotic drug which 
have been obtained from a registered dealer in pursuance of a 
written or oral prescription referred to in section 2554 (c) (2), 
issued for legitimate medical uses by a physician, dentist, vet-
erinary surgeon, or other practitioner registered under section 
3221; and where the bottle or other container in which such nar-
cotic drug or compound of a narcotic drug may be put up by the 
dealer upon said prescription bears the name and registry num-
ber of the druggist, and name and address of the patient, serial 
number of prescription, and name, address, and registry num-
ber of the person issuing said prescription; or". 
5g6 8A Stat. 9 4 2, 
SEC. 4. Sectiou 2556 (a) of the Internal Revenue Code of 1939 is 
amended by placing a comma after the word "prescriptions" in the 
first sentence thereof and interpolating immediately following said 
comma, the phrase "including the written record of oral prescrip-
tions ". 
5568A Stat. 94 6, 
SEC. 5. Sectiou 3224 (b) (5) of the Internal Revenue Code of 1939 
is amended to read as follows: 
"(5) 
to any person carrying any narcotic drug or compound 
of a narcotic drug which has been obtained by the person from a 
registered dealer in pursuance of a written or oral prescription 
6 8A Stat. 9 4 2, 
referred to in section 2554 (c) (2), issued for legitimate medical 
68A Stat. 567. 
68A Stat. 551. 
68 S T A T . ] 
PUBLIC LAW 729-AUG. 31, 1954 
10CI3 
uses by a physician, dentist, veterinary surgeon, or other practi-
tioner, registered under section 3221, if the bottle or other con- ^^%f^ s*«** 94 6. 
tainer in which such drug or compound of a narcotic drug is car-
ried bears the name and registry number of the druggist, serial 
number of prescription, name and address of the patient, and 
name, address, and registry number of the person issuing such 
prescription." 
SEC. 6. Section 4705 (c) (1) of the Internal Revenue Code of 1954 
esAstat. 551. 
is amended to read as follows: 
"(1) USE OF D
R
U
G
S IN PROFESSIONAL PRACTICE.—To the dispens-
ing or distribution of narcotic drugs to a patient by a physician, 
dentist, veterinary surgeon, or other practitioner registered under 
section 4722, in the course of his professional practice only: 
^ ^ ^
*
*
*
* ^^s. 
Provided, 
That such physician, dentist, veterinary surgeon, or 
other practitioner shall keep a record of all such drugs dispensed 
or distributed, showing the amount dispensed or distributed, the 
date, and the name and address of the patient to whom such drugs 
are dispensed or distributed, except such as may be dispensed 
or distributed to a patient upon whom such physician, dentist, 
> 
= ?' -« 
veterinary surgeon, or other practitioner shall personally attend; 
and such record shall be kept for a period of two years from the 
date of dispensing or distributing such drugs, subject to inspec-
tion, as provided in section 4773." 
SEC. 7. Section 4705 (c) (2) of the Internal Revenue Code of 1954 
is amended to read as follows: 
"(2) PRESCRIPTIONS,—(A) To the sale, dispensing, or distribu-
tion of narcotic drugs by a dealer to a consumer under and in 
pursuance of a written prescription issued by a physician, dentist, 
veterinary surgeon, or other practitioner registered under section 
4722: Provided, 
however, That (i) such prescription shall be 
esAStat. sss. 
dated as of the day on which signed and shall be signed by the 
physician, dentist, veterinary surgeon, or other practitioner who 
shall have issued the same; (ii) that such dealer shall preserve 
such prescription for a period of two years from the day on which 
such prescription is filled in such a way as to be readily accessible 
to inspection by the officers, agents, employees, and officials men-
tioned in section 4773. 
68A Stat. 567. 
"(B) In lieu of a written prescription for such narcotic drugs 
or compounds of a narcotic drug which the Secretary or his dele-
gate, in his discretion (after considering any views expressed on 
the subject by the Surgeon General, United States Public Health 
Service; the Commissioner, United States Food and Drug Admin- 
., , 
istration; the respective heads of State narcotic law enforce-
ment agencies; and the respective secretaries of national associ- 
.. . :. ,.. 
ations representing 
(i) 
narcotic drug manufacturers, 
(ii) 
physicians, and (iii) pharmacists), shall find and by regulation 
designate to possess relatively little or no addiction liability, the 
sale, dispensing, or distribution may be made by a dealer to a 
consumer upon oral prescription of a duly registered physician, 
dentist, veterinary surgeon, or other practitioner, which oral 
prescription is reduced promptly to writing, and the writing 
filed and preserved by the dealer for a period of two years from 
the date on which such prescription is filled in such a way as to 
be readily accessible to inspection by the officers, agents, 
employees, and officials mentioned in section 4773. In issuing 
an oral prescription, the prescriber shall furnish the dealer with 
the same information as is required by law or regulation in case 
of a written prescription for narcotic drugs or compounds of a 
narcotic drug except for the written signature of the prescriber, 
• 
1004 
PUBLIC LAW 730-AUG. 31, 1954 
[68 STAT. 
and the dealer who fills such prescription shall be required to 
inscribe such information on the written record of the prescrip-
tion made, filed and preserved by him, and shall inscribe on the 
label of the container of the narcotic drug or compound of a 
narcotic drug the same information as is required in filling a 
written prescription. 
An oral prescription shall not be refilled. 
"(C) If the Secretary or his delegate shall subsequently deter-
mine that a narcotic drug or a compound of a narcotic drug, to 
which the oral prescription procedure described in the preceding 
subparagraph has been made applicable, possesses a degree of drug 
addiction liability that, in his opinion, results in abusive use of 
^Publication in 
svLch procedure, he shall by regulation publish the determination 
in the Federal Register. The determination shall be final, and 
after the expiration of a period of six months from the date of its 
publication, the oral prescription procedure described in the pre-
ceding subparagraph shall cease to apply to the particular narcotic 
drug or to the particular compound of a narcotic drug which is 
the subject of the determination." 
6
8
A Stat. 551. 
SEC. 8. Scctiou 4704 (b) (1) of the Internal Revenue Code of 1954 is 
amended to read as follows: 
" (1) PRESCRIPTIONS.—To any person having in his or her posses-
sion any narcotic drugs or compounds of narcotic drug which have 
been obtained from a registered dealer in pursuance of a written 
68A Stat. 551. 
or oral prescription referred to in section 4705 (c) (2), issued for 
legitimate medical uses by a physician, dentist, veterinary sur-
68A Stat. 555. 
geou, or Other practitioner registered under section 4722; and 
where the bottle or other container in which such narcotic drug or 
compound of a narcotic drug may be put up by the dealer upon 
said prescription bears the name and registry number of the drug-
gist, and name and address of the patient, serial number of pre-
scription, and name, address, and registry number of the person 
issuing said prescription; or". 
68A Stat. 567. 
§^0. 9. Sectioii 4773 of the Internal Revenue Code of 1954 is 
amended by striking out "prescriptions required" and inserting in lieu 
thereof "prescriptions, including the written record of oral prescrip-
tions, required". 
68A Stat. 556. 
s^c. 10. Sectiou 4724 (b) (5) of the Internal Revenue Code of 1954 
is amended to read as follows: 
"(5) to any person carrying any narcotic drug or compound 
of a narcotic drug which has been obtained by the person from a 
registered dealer in pursuance of a written or oral prescription 
68Astat. 551. 
referred to in section 4705 (c) (2), issued for legitimate medical 
uses by a physician, dentist, veterinary surgeon, or other practi-
68A Stat. 555. 
tioiicr registered under section 4722, if the bottle or other container 
in which such drug or compound of a narcotic drug is carried 
bears the name and registry number of the druggist, serial num-
ber of prescription, name and address of the patient, and name, 
address, and registry number of the person issuing such prescrip-
tion;" 
Approved August 31, 1954. 
Public Law 730 
CHAPTER 1148 
August 31, 1954 
^^ 
A C T 
[s. 3627] 
To amend the Civil Service Retirement Act, as amended. 
Be it enacted hy the Senate and House of Representatives 
of the 
civu service re- Jjnited States of America in Congress assembled. That section 5 of 
tirement. 
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