BILL ANALYSIS
AB 1071
Page 1
ASSEMBLY THIRD READING
AB 1071 (Emmerson)
As Introduced February 27, 2009
Majority vote
BUSINESS & PROFESSIONS 11-0 APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Emmerson, |Ayes:|De Leon, Nielsen, |
| |Conway, Eng, | |Ammiano, |
| |Hernandez, Nava, Niello, | |Charles Calderon, Davis, |
| |John A. Perez, Price, | |Duvall, Fuentes, Hall, |
| |Ruskin, Smyth | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Krekorian |
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SUMMARY : Increases the minimum and maximum fees that the
California State Board of Pharmacy (Board) may charge under its
license and fee schedule. Specifically, this bill :
1)Establishes the amount of fees and penalties that are fixed by
the Board according to the following schedule:
a) The fee for an initial nongovernmental pharmacy license
shall be $400 and may be increased to $520. The fee for
the issuance of a temporary nongovernmental pharmacy permit
shall be $250 and may be increased to $325;
b) The fee for a renewal nongovernmental pharmacy license
shall be $250 and may be increased to $325;
c) The fee for an initial pharmacist application and
examination shall be $200 and may be increased to $260;
d) The fee for regrading an examination shall be $90 and
may be increased to $115. If an error in grading is found
and the applicant passes the examination, the regrading fee
shall be refunded;
e) The fee for a renewal pharmacist license shall be $150
and may be increased to $195;
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f) The fee for an initial and renewal nongovernmental
wholesaler license shall be $600, and may be increased to
$780. The application fee for any additional location after
licensure of the first 20 locations shall be $225 and may
be increased to $300. A temporary license fee shall be
$550 and may be increased to $715;
g) The fee for an initial and renewal hypodermic license
shall be $125 and may be increased to $165;
h) The fee for the initial application, investigation, and
license as a designated representative shall be $255 and
may be increased to $330. The fee for a renewal license as
a designated representative shall be $150 and may be
increased to $195;
i) The fee for the application, investigation, and license
as a designated representative for a veterinary food-animal
drug retailer shall be $255 and may be increased to $330.
The fee for a renewal license as a designated
representative for a veterinary food-animal drug retailer
shall be $150 and may be increased to $195;
j) The application fee for an initial nonresident
wholesaler license shall be $600 and may be increased to
$780. For nonresident wholesalers who have 21 or more
facilities operating nationwide, the application fees for
the first 20 locations shall be $600 and may be increased
to $780. The application fee for any additional location
after licensure of the first 20 locations shall be $225 and
may be increased to $300. A temporary license fee shall be
$550 and may be increased to $715. The fee for a renewal
nonresident wholesaler's license shall be $600 and may be
increased to $780;
aa) The fee for an initial intern pharmacist license shall
be $90 and may be increased to $115. The fee for transfer
of intern hours or verification of licensure to another
state shall be $25 and may be increased to $30;
bb) The Board may waive or refund the additional fee for the
issuance of a license where the license is issued less than
45 days before the next regular renewal date;
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cc) The fee for the reissuance of any license, or renewal
thereof, that has been lost or destroyed or reissued due to
a name change shall be $35 and may be increased to $45;
dd) The fee for the reissuance of any license, or renewal
thereof, that must be reissued because of a change in the
information, shall be $100 and may be increased to $130;
ee) The fee for an initial nongovernmental clinic license
shall be $400 and may be increased to $520. The fee for a
renewal license shall be $250 and may be increased to $325;
ff) The fee for an initial pharmacy technician license shall
be $80 and may be increased to $105. The fee for a renewal
pharmacy technician license shall be $100 and may be
increased to $130;
gg) The fee for an initial veterinary food-animal drug
retailer license shall be $405 and may be increased to
$425. The renewal fee for a veterinary food-animal drug
retailer license shall be $250 and may be increased to
$325;
hh) The fee for a retired license shall be $35 and may be
increased to $45; and,
ii) The fee for an initial or renewal nongovernmental
license to compound sterile drug products shall be $600 and
may be increased to $780. The fee for a temporary license
shall be $550 and may be increased to $715.
EXISTING LAW :
1)Provides for the licensure and regulation of pharmacies,
pharmacists, pharmacy technicians, wholesalers of dangerous
drugs or devices, and others by the Board.
2)Establishes the Pharmacy Board Contingent Fund (Fund) and
authorizes the Board to collect fees for its services.
3)Imposes fees on persons and pharmacies for, among other
things, application, examination, licensure, and licensure
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renewal. These fees are fixed by the Board based on a fee
schedule that sets forth the minimum and maximum fees.
4)Establishes the amount of fees and penalties that are fixed by
the Board according to the following schedule:
a) The fee for an initial nongovernmental pharmacy license
shall be $340 and may be increased to $400;
b) The fee for a renewal nongovernmental pharmacy license
shall be $175 and may be increased to $250;
c) The fee for a pharmacist application and examination
shall be $155 and may be increased to $185;
d) The fee for regrading an examination shall be $75 and
may be increased to $85. If an error in grading is found
and the applicant passes the examination, the regrading fee
shall be refunded;
e) The fee for an initial and renewal pharmacist license
shall be $115 and may be increased to $150;
f) The fee for an initial and renewal nongovernmental
wholesaler license shall be $550 and may be increased to
$600;
g) The fee for an initial and renewal hypodermic license
shall be $90 and may be increased to $125;
h) The fee for the initial application, investigation, and
license for a designated representative shall be $185 and
may be increased to $250. If the applicant is not issued a
license as a designated representative, the Board shall
refund $110 of the fee. The fee for the renewal license as
a designated representative shall be $110 and may be
increased to $150;
i) The fee for the application, investigation, and issuance
of an initial license as a designated representative for a
veterinary food-animal drug retailer shall be $250. If the
applicant is not issued a license as a designated
representative, the Board shall refund $150 of the fee.
The fee for the renewal license as a designated
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representative for a veterinary food-animal drug retailer
shall be $110;
j) The application fee for an initial nonresident
wholesaler's license shall be $550 and may be increased to
$600. For nonresident wholesalers who have 21 or more
wholesaler facilities operating nationwide, the application
fees for the first 20 locations shall be $550 and may be
increased to $600. The application fee for any additional
location after licensure of the first 20 locations shall be
$225 and may be increased to $300. The fee for a renewal
nonresident wholesaler's license shall be $550 and may be
increased to $600;
aa) The fee for evaluation of continuing education courses
for accreditation shall be set by the Board at an amount
not to exceed $40 per course hour;
bb) The fee for an initial intern pharmacist license shall
be $65 and may be increased to $75. The fee for transfer
of intern hours or verification of licensure to another
state shall be fixed by the Board not to exceed $20;
cc) The Board may waive or refund the additional fee for
the issuance of a certificate where the certificate is
issued less than 45 days before the next regular renewal
date;
dd) The fee for the reissuance of any license, or renewal
thereof, that has been lost or destroyed or reissued due to
a name change is $30;
ee) The fee for the reissuance of any license, or renewal
thereof, that must be reissued because of a change in the
information, is $60 and may be increased to $100;
ff) It is the intent of the Legislature that the Board
shall seek to maintain a reserve in the Fund equal to
approximately one year's operating expenditures;
gg) The fee for an initial nongovernmental clinic permit is
$340 and may be increased to $400 for each permit. The fee
for the renewal permit is $175 and may be increased to $250
for each permit;
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hh) The Board shall charge a fee for the processing and
issuance of a pharmacy technician license and a separate
fee for a renewal license. The initial license fee shall
be $25 and may be increased to $50. The renewal fee shall
be $25 and may be increased to $50;
ii) The fee for an initial veterinary food-animal drug
retailer license shall be $400. The renewal fee for a
veterinary food-animal drug retailer shall be $250; and,
jj) The fee for a retired license shall be $30.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Annual increased fee-supported special fund revenue to the
Board of $614,000 to $1.8 million. This bill establishes new
minimums and maximums for the licensure-related fees charged
by the Board. As a result of these changes, the range of the
Board's fee-supported revenues will increase from $586,000 to
$1.7 million (current law) to $1.2 million to $3.5 million (AB
1071). The Board regulates 112,000 licensees and adds
approximately 4,500 licensees per year. Fee revenues are used
to support a range of oversight activities.
2)This bill increases more than a dozen annual fees charges to
various licensees of the Board. For example, the current
Pharmacist license application fee is $115 to $150. This bill
increases this fee to $150 to $195. Under current law, the
initial application fee for a pharmacy is $340 to $400. This
bill increases the pharmacy fee to $400 to $520.
COMMENTS : According to the author's office, "AB 1071 adjusts
application and renewal fees to ensure that the Board of
Pharmacy has sufficient funds to fulfill all of its statutory
obligations as a consumer protection agency. The Board has
waited as long as it could to increase its fees. This bill also
builds in a cap to increase future fees by no more than 30
percent? The Board's licensee population has grown 20% over the
last five years, yet the size of the Board staff remains
constant. The Board has aggressively reviewed its business
processes and streamlined where appropriate, yet is unable to
achieve any additional cost savings. Currently, the Board
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regulates 112,000 licensees and adds approximately 4,500
licensees per year.
"The Board recently underwent an independent fee audit to
determine the real cost to process applications and license
renewals. The audit found that the Board's expenditures were
exceeding its revenues resulting in draining [of] the contingent
fund balance. Additionally, the current fee structure is
insufficient to maintain the 12 month reserve required by
statute. Without a fee increase, the Board's contingent fund
will be reduced to an eight-month reserve by the end of fiscal
year 2009-10 and will only have a one-month reserve by the end
of fiscal year 2011-12."
The Board was established in 1891 to protect consumers by
licensing and regulating all aspects of the pharmacy practice in
California, including pharmacists, pharmacy practice, and
prescription drugs and devices. The Board also regulates
wholesalers, specialized facilities, and other practitioners
such as pharmacist technicians and interns. The Board's
activities are financed through fees related to application and
license-processing services. The Board oversees 112,000
licenses and has 60 staffers. Licensee growth has grown in the
following manner from 1993 to 2008: licensed pharmacists
increased from 26,159 to 36,171; licensed pharmacy technicians
increased from 8,229 to 55,305; and, all other types of
licensees have increased from 9,070 to 17,981.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301
FN: 0001286