BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1071 (Emmerson)
          
          Hearing Date:  7/6/2009         Amended: As Introduced
          Consultant:  Bob Franzoia       Policy Vote: B,P&ED 9-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1071 would increase the minimum and maximum  
          fees of the California State Board of Pharmacy (CSBP) and make  
          other conforming changes.  By increasing fees that would be  
          deposited into the Pharmacy Board Contingent Fund, which is  
          continuously appropriated, this bill would make an  
          appropriation.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           CSBP fee increases     ($1,171 to $3,486) beginning  
          2010-11Special*        
          (revenue)

          * Pharmacy Board Contingent Fund
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          ____

          STAFF COMMENTS: 
          
          In 2008, the CSBP contracted for an audit of its fee schedule.   
          The audit assessed whether fee levels were appropriate for the  
          recovery of the actual cost of conducting programs and conducted  
          an assessment of activity and workload for staff to determine an  
          hourly cost or cost per unit for CSBP functions.  The audit  
          found that expenditures were exceeding revenues with major  
          subsidies occurring with the pharmacy technician license  
          ($552,398) and the pharmacy technician license renewal  
          ($2,219,827).  Under this bill, the pharmacy technician  
          application fee will increase from $25-$50 to $80-$105 and the  
          renewal fee will increase from $25-$50 to $100-$130.

          This bill would increase the range of fees for 36 license types.  
           For eleven license types, fees are increasing, with six  
          increasing $5.00 each.  Two license types are decreasing.  These  
          minimum and maximum ranges were last increased in 1987.  The  










          Consumer Price Index calculates consumer goods have increased an  
          estimated 85 percent since.

          The CSBP 2009-10 budget projects a reserve for economic  
          uncertainties of $6,566,000 which represents 7.3 months of  
          operating funds.  This is down from 13.3 months in 2007-08.  The  
          fund is projected to have less than one month of reserves in  
          2011-12 and be negative by nearly a quarter year in 2012-13  
          absent additional revenues.