BILL NUMBER: AB 1587	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 20, 2007
	AMENDED IN SENATE  JULY 19, 2007
	AMENDED IN SENATE  JULY 16, 2007
	AMENDED IN SENATE  JUNE 27, 2007
	AMENDED IN ASSEMBLY  MAY 21, 2007
	AMENDED IN ASSEMBLY  MAY 8, 2007

INTRODUCED BY   Assembly Member De La Torre
    (   Principal coauthor: 
 Senator   Lowenthal   )


                        FEBRUARY 23, 2007

    An act to relating to recall elections, and declaring the
urgency thereof, to take effect immediately.   An act
to amend Section 56.05 of the Civil Code, relating to personal
information. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1587, as amended, De La Torre.  Recall elections: City
of Lynwood.  Personal information: pharmacy.  
   The Confidentiality of Medical Information Act prohibits a
provider of health care, a health care service plan, contractor, or
corporation and its subsidiaries and affiliates from intentionally
sharing, selling, using for marketing, or otherwise using any medical
information, as defined, for any purpose not necessary to provide
health care services to a patient, unless a specified exception
applies. That law excludes from the definition of marketing
communications that are for a specified descriptive purpose, that are
tailored to the circumstances of a particular individual, or for
which the communicator does not receive remuneration from a 3rd
party, as specified.  
   This bill would additionally exclude from the definition of
marketing a written communication or written message provided to a
pharmacy patient by a pharmacist or pharmacy personnel that meets
specified conditions.  
   Existing law provides the procedure for the recall of local
government officers pursuant to a petition that is circulated for
signatures and submitted by the proponents of the recall. It requires
that when the city or county elections official is the officer
sought to be recalled, the elections official's duties in connection
with the recall process be performed by some other person designated
by the applicable governing board.  
   This bill would state legislative findings that there exists a
need for an experienced, objective, impartial, and professional
entity to conduct any recall or special election that is held in the
City of Lynwood in the County of Los Angeles during calendar years
2007 and 2008, and would state the intent of the Legislature in
connection with this bill. It would require any recall or special
election held in the City of Lynwood during the 2007 and 2008
calendar years to be administered by the Los Angeles County
Registrar-Recorder, subject to approval by the Board of Supervisors.
 
   This bill would require the City of Lynwood to pay the County of
Los Angeles from the city treasury for any expenses authorized and
necessarily incurred in conducting any recall or special election
held in the City of Lynwood pursuant to this bill. It would provide a
procedure under which the Controller would reallocate to the county
amounts otherwise scheduled for distribution to the city from
unrestricted funds or moneys, as specified.  
   The California Constitution provides that a local or special
statute is invalid in any case if a general statute can be made
applicable.  
   This bill would declare that, due to the unique circumstances
pertaining to the City of Lynwood that the bill is intended to
remedy, a general statute within the meaning of specified provisions
of the California Constitution cannot be made applicable and a
special statute is necessary.  
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  2/3   majority  . Appropriation:
no. Fiscal committee: no. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 56.05 of the   Civil
Code   is amended to read: 
   56.05.  For purposes of this part:
   (a) "Authorization" means permission granted in accordance with
Section 56.11 or 56.21 for the disclosure of medical information.
   (b) "Authorized recipient" means any person who is authorized to
receive medical information pursuant to Section 56.10 or 56.20.
   (c) "Contractor" means any person or entity that is a medical
group, independent practice association, pharmaceutical benefits
manager, or a medical service organization and is not a health care
service plan or provider of health care. "Contractor" does not
include insurance institutions as defined in subdivision (k) of
Section 791.02 of the Insurance Code or pharmaceutical benefits
managers licensed pursuant to the Knox-Keene Health Care Service Plan
Act of 1975 (Chapter 2.2 (commencing with Section 1340) of Division
2 of the Health and Safety Code).
   (d) "Health care service plan" means any entity regulated pursuant
to the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code).
   (e) "Licensed health care professional" means any person licensed
or certified pursuant to Division 2 (commencing with Section 500) of
the Business and Professions Code, the Osteopathic Initiative Act or
the Chiropractic Initiative Act, or Division 2.5 (commencing with
Section 1797) of the Health and Safety Code.
   (f) "Marketing" means to make a communication about a product or
service that encourages recipients of the communication to purchase
or use the product or service.
   "Marketing" does not include any of the following:
   (1) Communications made orally or in writing for which the
communicator does not receive direct or indirect remuneration,
including, but not limited to, gifts, fees, payments, subsidies, or
other economic benefits, from a third party for making the
communication.
   (2) Communications made to current enrollees solely for the
purpose of describing a provider's participation in an existing
health care provider network or health plan network of a Knox-Keene
licensed health plan to which the enrollees already subscribe;
communications made to current enrollees solely for the purpose of
describing if, and the extent to which, a product or service, or
payment for a product or service, is provided by a provider,
contractor, or plan or included in a plan of benefits of a Knox-Keene
licensed health plan to which the enrollees already subscribe; or
communications made to plan enrollees describing the availability of
more cost-effective pharmaceuticals.
   (3) Communications that are tailored to the circumstances of a
particular individual to educate or advise the individual about
treatment options, and otherwise maintain the individual's adherence
to a prescribed course of medical treatment, as provided in Section
1399.901 of the Health and Safety Code, for a chronic and seriously
debilitating or life-threatening condition as defined in subdivisions
(d) and (e) of Section 1367.21 of the Health and Safety Code, if the
health care provider, contractor, or health plan receives direct or
indirect remuneration, including, but not limited to, gifts, fees,
payments, subsidies, or other economic benefits, from a third party
for making the communication, if all of the following apply:
   (A) The individual receiving the communication is notified in the
communication in typeface no smaller than 14-point type of the fact
that the provider, contractor, or health plan has been remunerated
and the source of the remuneration.
   (B) The individual is provided the opportunity to opt out of
receiving future remunerated communications.
   (C) The communication contains instructions in typeface no smaller
than 14-point type describing how the individual can opt out of
receiving further communications by calling a toll-free number of the
health care provider, contractor, or health plan making the
remunerated communications. No further communication may be made to
an individual who has opted out after 30 calendar days from the date
the individual makes the opt out request. 
   (4) A written communication or written message provided to a
pharmacy patient during a face-to-face interaction with a pharmacist
or pharmacy personnel, in conjunction with dispensing a prescription
drug, if all of the following apply:  
   (A) The communication does not involve the sale or transfer of
medical information by the pharmacy to any other entity, or to the
pharmacy from another entity. Additionally, the communication is
based only on medical information that has already been provided to,
and maintained by, the pharmacist as necessary to the performance of
the pharmacist's duties to fill prescriptions.  
   (B) The communication, either in whole or in part, assists the
pharmacist or pharmacy personnel in meeting the goals of Section 601
of Public Law 104-180 with respect to the transmittal of useful
information regarding a prescription drug dispensed to the patient.
 
   (C) The content of the communication provides information
regarding any of the following:  
   (i) The dispensed drug or a disease or health condition for which
the dispensed drug is indicated.  
   (ii) Another treatment or therapy for a disease or health
condition for which the dispensed drug is indicated if the content of
the communication does not include any mention of, or negative
statements regarding, the dispensed drug by proprietary or brand name
and the treatment or therapy satisfies one or more of the following
conditions:  
   (I) Is an adjunctive treatment or therapy that augments or assists
the dispensed drug or therapy.  
   (II) Is a generic alternative for the dispensed drug.  
   (III) Has demonstrable benefits for the patient as compared to the
dispensed drug based upon the prescribing information approved by
the federal Food and Drug Administration (FDA), a finding or
conclusion contained in the FDA approval package, or requirements or
policies of the FDA. Any such claim may not be inconsistent with
applicable requirements or policies of the FDA. These demonstrable
benefits may include being more effective, having fewer or less
serious side effects, or offering more convenient dosing.  
   (iii) A drug dispensed to the patient during the preceding year or
a disease or health condition for which that drug is indicated.
 
   (iv) General information about a health condition for which the
patient's disease or health condition puts the patient at risk and
that, if left untreated, may result in worsening of the health,
symptoms, or daily functioning of the patient.  
   (v) General information about a health condition for which the
patient may be at risk given the age or gender of the patient and
that, if left untreated, may result in worsening of the health,
symptoms, or daily functioning of the patient.  
   (vi) The information described in clauses (iii) to (v), inclusive,
shall not include any mention, by the proprietary name, brand name,
or generic name, of a specific drug or other product, treatment,
therapy, or service, other than the dispensed drug or a drug
dispensed to the patient during the preceding year.  
   (D) The pharmacist is available upon request of the patient to
answer questions regarding the communication and the communication
notifies the patient that he or she should consult a health care
provider.  
   (E) If the communication is paid for, in whole or in part, by a
manufacturer, distributor, or provider of a health care product or
service, other than the pharmacy or a business associate of the
pharmacy, the communication shall comply with all of the following:
 
   (i) The communication shall, in a clear written statement placed
in a clear and conspicuous location, disclose the source of the
sponsorship in a typeface no smaller than 14-point type.  
   (ii) If the communication is related to information referenced in
clause (i) , (ii), or (iii) of subparagraph (C) and mentions a
prescription drug or other product, treatment, therapy, or service,
other than the dispensed prescription drug, by its proprietary name,
brand name, or generic name, the communication shall also contain the
words "paid advertisement" in a typeface no smaller than 14-point
type at the top of each sponsored message.  
   (iii) If a sponsored message is printed on more than one page of a
communication, the statement required by clause (ii) shall appear on
each page on which the sponsored message appears.  
   (iv) If a sponsored message is printed on more than one panel of
the same page of a communication, the statement required by clause
(ii) shall appear on each panel on which the sponsored message
appears.  
   (v) If the communication is related to information referenced in
clause (i), (ii), or (iii) of subparagraph (C) and mentions a
prescription or other product, treatment, therapy, or service, other
than the dispensed prescription drug, by its proprietary name, brand
name, or generic name, the communication shall also contain the words
"results may vary--consult your doctor."  
   (F) The communication contains instructions in a typeface no
smaller than 14-point type describing how the patient can opt out of
the portion of a pharmacy's communication that is paid for by a
manufacturer, distributor, or provider of a health care product or
service by calling a toll-free number. No further sponsored message
from the pharmacy may be made to an individual who has opted out
after 30 calendar days from the date the individual makes the opt out
request.  
   (G) A majority of the printed space of the entire communication
delivered to the patient in the pharmacy is used for purposes other
than a sponsored message that is subject to clause (ii) of
subparagraph (E).  
   (H) Compliance with any provision in this paragraph shall not
necessarily render any communication as truthful, not misleading,
fairly balanced, or adequately substantiated, within the meaning of
any applicable federal or state law, if that communication is
otherwise false, misleading, lacking in fair balance, or not
adequately substantiated. 
   (g) "Medical information" means any individually identifiable
information, in electronic or physical form, in possession of or
derived from a provider of health care, health care service plan,
pharmaceutical company, or contractor regarding a patient's medical
history, mental or physical condition, or treatment. "Individually
identifiable" means that the medical information includes or contains
any element of personal identifying information sufficient to allow
identification of the individual, such as the patient's name,
address, electronic mail address, telephone number, or social
security number, or other information that, alone or in combination
with other publicly available information, reveals the individual's
identity.
   (h) "Patient" means any natural person, whether or not still
living, who received health care services from a provider of health
care and to whom medical information pertains.
   (i) "Pharmaceutical company" means any company or business, or an
agent or representative thereof, that manufactures, sells, or
distributes pharmaceuticals, medications, or prescription drugs.
"Pharmaceutical company" does not include a pharmaceutical benefits
manager, as included in subdivision (c), or a provider of health
care.
   (j) "Provider of health care" means any person licensed or
certified pursuant to Division 2 (commencing with Section 500) of the
Business and Professions Code; any person licensed pursuant to the
Osteopathic Initiative Act or the Chiropractic Initiative Act; any
person certified pursuant to Division 2.5 (commencing with Section
1797) of the Health and Safety Code; any clinic, health dispensary,
or health facility licensed pursuant to Division 2 (commencing with
Section 1200) of the Health and Safety Code. "Provider of health care"
does not include insurance institutions as defined in subdivision
(k) of Section 791.02 of the Insurance Code. 
  SECTION 1.   The Legislature finds and declares
that there exists a need for an experienced, objective, impartial,
and professional entity to conduct any recall or special election
that is held in the City of Lynwood in the County of Los Angeles
during the 2007 and 2008 calendar years. It is the intent of the
Legislature in enacting this statute to ensure the integrity,
efficiency, and lawful conduct of recall and special elections in the
City of Lynwood, to avoid real bias or the perception of bias or
impropriety, and to strengthen the public's confidence in the fair
and free operation of the election process and the reporting of
election results.  
  SEC. 2.    Any recall or special election in the
City of Lynwood held during the 2007 and 2008 calendar years shall be
administered, for all purposes, by the Los Angeles County
Registrar-Recorder upon approval by the Board of Supervisors of the
County of Los Angeles.  
  SEC. 3.    (a) The City of Lynwood shall pay from
its city treasury for all expenses authorized and necessarily
incurred in conducting any special or recall election held during the
2007 and 2008 calendar years. These expenses shall be paid to the
County of Los Angeles to reimburse the county for the costs of
conducting the special or recall election.
   (b) If payment is not made in a timely manner, and after
sufficient notice to the City of Lynwood, the Board of Supervisors of
the County of Los Angeles may pass a resolution informing the
Controller that some or all of the amount due is outstanding.
   (c) Following receipt of the resolution, the Controller shall
deduct from apportionments scheduled for periodic distribution to the
City of Lynwood, from any unrestricted funds or moneys, the
outstanding balance owed and instead pay the amount to the County of
Los Angeles.  
  SEC. 4.    The Legislature finds and declares that
because of the unique circumstances of the City of Lynwood, relating
to the conduct of elections, a statute of general applicability
cannot be enacted within the meaning of subdivision (b) of Section 16
of Article IV of the California Constitution. Therefore, it is
necessary to enact a special statute applicable only to the City of
Lynwood.  
  SEC. 5.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order to ensure that recall elections in the City of Lynwood
proceed in a timely fashion in accordance with state law, and to
preserve the public's confidence in the electoral process and the
voters' reserve power to recall elected officials, it is necessary
that this act take effect immediately.