Newly signed Ensuring Compliance Against Drug Diversion Act addresses registration loopholes surrounding illegal opioid distribution

President Joe Biden signed the Ensuring Compliance Against Drug Diversion Act (H.R.1899) into law last week, codifying current drug regulations to make it harder for bad actors to create shell companies or transfer registration to evade crackdowns and continue distributing illegal opioids.

“I’m pleased President Biden signed our legislation into law, making it harder to abuse the legal manufacturing and sale of controlled substances,” U.S. Sen. Dianne Feinstein (D-CA), who introduced the legislation alongside U.S. Sen. John Cornyn (R-TX), said. “We’ve seen far too many drugs — particularly opioids — flooding our communities and leaving devastation behind. This legislation will help put a stop to these community-destroying practices.”

One of the major existing loopholes was a lack of clarity surrounding Drug Enforcement Administration (DEA) registrations. Some had been transferring these registrations or otherwise passing them from one organization to another. The new law specifically restricts this, establishing that such registrations cannot be transferred or passed from one entity to another after the possessing entity dies, ceases legal existence, discontinues professional practice, or surrenders its registration.

“While narcotics can play a role in pain management for patients receiving medical care, the abuse of these drugs has ravaged communities across the country,” Cornyn said. “By closing a loophole in drug regulations, this legislation would help stop companies from distributing opioids under false pretenses and fueling this epidemic.”

Entities looking to inherit or gain access to a DEA registration will need to go through the DEA to get a new one.