FOLLOWING INTRODUCTORY STATEMENTS BY COMMITTEE MEMBERS WHICH HIGHLIGHTED PROBLEMS CAUSED BY ABUSE OF PRESCRIPTION DRUGS, A REPRESENTATIVE FROM THE WHITE HOUSE STAFF SUMMARIZED FEDERAL EFFORTS TO IDENTIFY POINTS OF DIVERSION AND CONDUCT EDUCATIONAL PROGRAMS FOR HEALTH CARE PERSONNEL ON APPROPRIATE PRESCRIBING OF DRUGS. THE ADMINISTRATOR OF THE DRUG ENFORCEMENT ADMINISTRATION (DEA) THEN PROVIDED STATISTICS ON THE EXTENT OF ILLEGAL DIVERSION AND SUGGESTED CHANGES IN STATE LAWS TO COMBAT ILLEGAL SALES. HE COMMENTED THAT THE DEA DID NOT HAVE THE RESOURCES TO MOVE AGAINST THE PROBLEM EFFECTIVELY AT THE RETAIL LEVEL. THE WITNESS ANSWERED QUESTIONS CONCERNING THE EFFICACY OF A CENTRAL REGISTRY FOR PRESCRIPTIONS AND STATE PROCEDURES FOR REVOKING PHYSICIANS' OR PHARMACISTS' LICENSES. DRUG DIVERSION IN THE MEDICAID PROGRAM WAS DISCUSSED BY AN OFFICIAL FROM THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE (HEW). EFFECTIVE CONTROL TECHNIQUES USED BY STATES WERE LISTED, AND THE USE OF COMPUTER TECHNIQUES TO IDENTIFY ABERRANT PRACTICES WAS DESCRIBED. HE CONCLUDED THAT BOTH REGULATORY AND LAW ENFORCEMENT TECHNIQUES WERE NECESSARY TO REDUCE ABUSE. THE NEXT THREE WITNESSES APPROACHED THE PROBLEM FROM THE STATE AND LOCAL PERSPECTIVES. THE DIRECTOR OF THE MARYLAND DEPARTMENT THAT ADMINISTERS MEDICAID DESCRIBED DRUG UTILIZATION REVIEW EFFORTS TARGETED AT PHYSICIANS, PHARMACISTS, AND PATIENTS, AND CITED THE FLOOD OF MINOR TRANQUILIZERS ON THE MARKET AS THE STATE'S MAJOR PROBLEM. AN INDEPENDENT PHARMACIST FROM A MARYLAND SUBURB OF WASHINGTON, D.C. SUMMARIZED PHARMACISTS' REACTIONS TO ABUSE OF LEGAL DRUGS AND THEIR FEAR OF CRIME. HE ALSO PROPOSED AN EDUCATIONAL PROGRAM FOR THE GENERAL PUBLIC AND STRICTER LAWS REGARDING DRUG CONTROLS AND PENALTIES FOR DRUG OFFENSES. THE FINAL WITNESS DETAILED THE STRUCTURE AND FUNCTION OF THE STATE OF MARYLAND COMMISSION ON MEDICAL DISCIPLINE, WHICH IS AUTHORIZED TO REMOVE PHYSICIANS' LICENSES. HE FELT THAT COMPUTER SYSTEMS WOULD BE AN EFFECTIVE WAY TO MONITOR ALL CONTROLLED SUBSTANCES. THE APPENDIXES CONTAIN COPIES OF THE EXHIBITS ON DRUG DIVERSION AND FORGED PRESCRIPTIONS USED AT THE HEARINGS, THE TEXT OF THE FEDERAL REGISTER GIVING THE BACKGROUND OF THE FOOD AND DRUG ADMINISTRATION'S PROPOSAL TO BAN AMPHETAMINES FOR OBESITY TREATMENT, AND PREPARED STATEMENTS OF ALL WITNESSES.