[Federal Register Volume 87, Number 69 (Monday, April 11, 2022)]
[Notices]
[Pages 21174-21175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07686]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Douglas A. Blose, M.D.; Decision and Order

    On September 28, 2021, a former Acting Assistant Administrator, 
Diversion Control Division, Drug Enforcement Administration 
(hereinafter, Government), issued an Order to Show Cause (hereinafter, 
OSC) to Douglas A. Blose, M.D. (hereinafter, Registrant) of Downey, 
California. OSC, at 1 and 3. The OSC proposed the revocation of 
Registrant's Certificate of Registration No. AB2619510. Id. at 1. It 
alleged that Registrant ``[does not] have authority to dispense or 
prescribe controlled substances in the State of California, the state 
in which [he is] registered with the DEA.'' Id. (citing 21 U.S.C. 
824(a)(3)).
    Specifically, the OSC alleged that on or about March 9, 2020, 
Registrant executed a Stipulated Surrender of License and Disciplinary 
Order, pursuant to which he surrendered his California medical license. 
Id. at 2. According to the OSC, Registrant's surrender was accepted by 
the Medical Board of California on or about March 30, 2020, and took 
effect on April 29, 2020. Id.
    The OSC notified Registrant of the right to request a hearing on 
the allegations or to submit a written statement, while waiving the 
right to a hearing, the procedures for electing each option, and the 
consequences for failing to elect either option. Id. at 2-3 (citing 21 
CFR 1301.43). The OSC also notified Registrant of the opportunity to 
submit a corrective action plan. Id. at 3 (citing 21 U.S.C. 
824(c)(2)(C)).

Adequacy of Service

    In a Declaration dated January 3, 2022, a Diversion Investigator 
(hereinafter, DI) assigned to the Los Angeles Field Division stated 
that on or about September 29, 2021, she sent a copy of the OSC by 
certified mail to Registrant's registered address. Request for Final 
Agency Action (hereinafter, RFAA), Exhibit (hereinafter, RFAAX) B (DI's 
Declaration), at 1-3. The DI stated that according to USPS tracking 
information, the copy of the OSC was delivered on or about October 1, 
2021. Id. at 2. The DI also stated that on or about October 21, 2021, 
she mailed a copy of the OSC to Registrant's residential address as 
reflected on his California driver's license. Id. The DI stated that 
according to USPS tracking information, the second copy of the OSC was 
delivered on or about October 23, 2021. Id. The DI concluded that 
neither copy of the OSC was returned as undeliverable and that she has 
not received any communications from Registrant or anyone acting on 
Registrant's behalf regarding the OSC. Id.
    The Government forwarded its RFAA, along with the evidentiary 
record, to this office on January 26, 2022. In its RFAA, the Government 
represents that more than thirty days have passed since Registrant was 
served with the OSC and Registrant has not requested a hearing nor 
otherwise corresponded with DEA regarding the OSC. RFAA, at 2. The 
Government requests that Registrant's DEA registration be revoked based 
on his lack of authority to handle controlled substances in California, 
the state in which he is registered with the DEA. Id. at 6.
    Based on the DI's Declaration, the Government's written 
representations, and my review of the record, I find that the 
Government accomplished service of the OSC on Registrant on or before 
October 23, 2021. I also find that more than thirty days have now 
passed since the Government accomplished service of the OSC. Further, 
based on the DI's Declaration, the Government's written 
representations, and my review of the record, I find that neither 
Registrant, nor anyone purporting to represent Registrant, has 
requested a hearing, submitted a written statement while waiving 
Registrant's right to a hearing, or submitted a corrective action plan. 
Accordingly, I find that Registrant has waived his right to a hearing 
and his right to submit a written statement or corrective action plan. 
21 CFR 1301.43(d) and 21 U.S.C. 824(c)(2)(C). I, therefore, issue this 
Decision and Order based on the record submitted by the Government, 
which constitutes the entire record before me. 21 CFR 1301.43(e).

[[Page 21175]]

Findings of Fact

Registrant's DEA Registration

    Registrant is the holder of DEA Certificate of Registration No. 
AB2619510 at the registered address of 11525 Brookshire Avenue, Suite 
101, Downey, California 90241. RFAAX B, at 1. Pursuant to this 
registration, Registrant is authorized to dispense controlled 
substances in schedules II through V as a practitioner. Id. 
Registrant's registration expires on July 31, 2022. Id.

The Status of Registrant's State License

    On October 4, 2019, the Medical Board of California (hereinafter, 
the Board) issued an Accusation against Registrant alleging repeated 
negligent acts and failure to maintain adequate and accurate records 
throughout his treatment and care of six specific patients. RFAAX B-1, 
at 9-15. Further, according to the Accusation, ``on or about September 
27, 2019, in a prior disciplinary action . . . [Registrant's] license 
was revoked with revocation stayed for five (5) years of probation for 
self-prescribing of controlled substances and conviction of crimes 
substantially related to qualifications, functions, or duties of a 
physician and surgeon.'' Id. at 16. On March 9, 2020, Registrant 
entered into a Stipulated Surrender of License and Disciplinary Order 
(hereinafter, Stipulated Surrender) in which he admitted the truth of 
the allegations in the Accusation and surrendered his California 
medical license for the Board's formal acceptance without further 
process. Id. at 4-7. The Stipulated Surrender ordered Registrant's 
medical license surrendered and was signed by Registrant and his 
attorney. Id. at 5-6. On March 30, 2020, the Board adopted the 
Stipulated Surrender, effective April 29, 2020. Id. at 1.
    According to California's online records, of which I take official 
notice, Registrant's medical license is still surrendered.\1\ Medical 
Board of California License Verification, https://www.mbc.ca.gov/License-Verification (last visited date of signature of this Order). 
Accordingly, I find that Registrant is not licensed to engage in the 
practice of medicine in California, the state in which he is registered 
with the DEA.
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    \1\ Under the Administrative Procedure Act, an agency ``may take 
official notice of facts at any stage in a proceeding--even in the 
final decision.'' United States Department of Justice, Attorney 
General's Manual on the Administrative Procedure Act 80 (1947) (Wm. 
W. Gaunt & Sons, Inc., Reprint 1979). Pursuant to 5 U.S.C. 556(e), 
``[w]hen an agency decision rests on official notice of a material 
fact not appearing in the evidence in the record, a party is 
entitled, on timely request, to an opportunity to show the 
contrary.'' Accordingly, Registrant may dispute my finding by filing 
a properly supported motion for reconsideration of finding of fact 
within fifteen calendar days of the date of this Order. Any such 
motion and response shall be filed and served by email to the other 
party and to Office of the Administrator, Drug Enforcement 
Administration at [email protected].
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Discussion

    Pursuant to 21 U.S.C. 824(a)(3), the Attorney General is authorized 
to suspend or revoke a registration issued under section 823 of the 
Controlled Substances Act (hereinafter, CSA) ``upon a finding that the 
registrant . . . has had his State license or registration suspended . 
. . [or] revoked . . . by competent State authority and is no longer 
authorized by State law to engage in the . . . dispensing of controlled 
substances.'' With respect to a practitioner, the DEA has also long 
held that the possession of authority to dispense controlled substances 
under the laws of the state in which a practitioner engages in 
professional practice is a fundamental condition for obtaining and 
maintaining a practitioner's registration. See, e.g., James L. Hooper, 
M.D., 76 FR 71371 (2011), pet. for rev. denied, 481 F. App'x 826 (4th 
Cir. 2012); Frederick Marsh Blanton, M.D., 43 FR 27616, 27617 (1978).
    This rule derives from the text of two provisions of the CSA. 
First, Congress defined the term ``practitioner'' to mean ``a physician 
. . . or other person licensed, registered, or otherwise permitted, by 
. . . the jurisdiction in which he practices . . . , to distribute, 
dispense, . . . [or] administer . . . a controlled substance in the 
course of professional practice.'' 21 U.S.C. 802(21). Second, in 
setting the requirements for obtaining a practitioner's registration, 
Congress directed that ``[t]he Attorney General shall register 
practitioners . . . if the applicant is authorized to dispense . . . 
controlled substances under the laws of the State in which he 
practices.'' 21 U.S.C. 823(f). Because Congress has clearly mandated 
that a practitioner possess state authority in order to be deemed a 
practitioner under the CSA, the DEA has held repeatedly that revocation 
of a practitioner's registration is the appropriate sanction whenever 
he is no longer authorized to dispense controlled substances under the 
laws of the state in which he practices. See, e.g., James L. Hooper, 76 
FR at 71371-72; Sheran Arden Yeates, M.D., 71 FR 39130, 39131 (2006); 
Dominick A. Ricci, M.D., 58 FR 51104, 51105 (1993); Bobby Watts, M.D., 
53 FR 11919, 11920 (1988); Frederick Marsh Blanton, 43 FR at 27617.
    According to California statute, ``dispense'' means ``to deliver a 
controlled substance to an ultimate user or research subject by or 
pursuant to the lawful order of a practitioner, including the 
prescribing, furnishing, packaging, labeling, or compounding necessary 
to prepare the substance for that delivery.'' Cal. Health & Safety Code 
Sec.  11010 (West, current with urgency legislation through Ch. 6 of 
2022 Reg.Sess.). Further, a ``practitioner'' means a person ``licensed, 
registered, or otherwise permitted, to distribute, dispense, conduct 
research with respect to, or administer, a controlled substance in the 
course of professional practice or research in this state.'' Id. at 
Sec.  11026(c).
    Here, the undisputed evidence in the record is that Registrant 
currently lacks authority to practice medicine in California. As 
discussed above, a physician must be a licensed practitioner to 
dispense a controlled substance in California. Thus, because Registrant 
lacks authority to practice medicine in California and, therefore, is 
not authorized to handle controlled substances in California, 
Registrant is not eligible to maintain a DEA registration. Accordingly, 
I will order that Registrant's DEA registration be revoked.

Order

    Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 
U.S.C. 824(a), I hereby revoke DEA Certificate of Registration No. 
AB2619510 issued to Douglas A. Blose, M.D. Further, pursuant to 28 CFR 
0.100(b) and the authority vested in me by 21 U.S.C. 823(f), I hereby 
deny any pending application of Douglas A. Blose, M.D. to renew or 
modify this registration, as well as any other pending application of 
Douglas A. Blose, M.D. for additional registration in California. This 
Order is effective May 11, 2022.

Anne Milgram,
Administrator.
[FR Doc. 2022-07686 Filed 4-8-22; 8:45 am]
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