BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1071|
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THIRD READING
Bill No: AB 1071
Author: Emmerson (R)
Amended: 9/2/09
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE : 9-0, 6/29/09
AYES: Negrete McLeod, Wyland, Aanestad, Corbett, Correa,
Florez, Oropeza, Romero, Yee
NO VOTE RECORDED: Walters
SENATE APPROPRIATIONS COMMITTEE : 10-0, 7/6/09
AYES: Kehoe, Cox, Corbett, Hancock, Leno, Price, Runner,
Wolk, Wyland, Yee
NO VOTE RECORDED: Denham, Oropeza, Walters
ASSEMBLY FLOOR : 76-0, 6/1/09 - See last page for vote
SUBJECT : Pharmacy: fees
SOURCE : Board of Pharmacy
DIGEST : This bill increases fees charged to various
licensees of the Board of Pharmacy. In addition, this bill
extends the inoperative and repeal (sunset) dates on eight
regulatory programs until January 1, 2013.
Senate Floor Amendments of 9/2/09 extend the sunset dates
until January 1, 2013 for the following boards and
regulatory programs: Medical Board of California,
California Board of Podiatric Medicine, Board of Registered
CONTINUED
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Nursing, State Board of Optometry, Naturopathic Doctors
Act, Respiratory Care Board of California, California State
Board of Pharmacy, and Certified Interior Designer Law.
ANALYSIS :
Existing law:
1. Provides for the licensure and regulation of pharmacies,
pharmacists and wholesalers of dangerous drugs or
devices by the Board of Pharmacy (Board) in the
Department of Consumer Affairs (DCA).
2. Establishes a fee schedule for fees charged to various
licensees of the Board.
3. Established the Pharmacy Board Contingent Fund.
4. Requires the Board to maintain a reserve equal to one
year of operating expenditures to cushion against
unexpected revenue shortfalls.
This bill:
1. Adjusts the Board's fee schedule to:
A. Establish a fee of $400 to $520 for an initial
nongovernmental pharmacy license. Establish a fee
of $250 to $325 for a temporary nongovernmental
pharmacy license.
B. Establish a fee of $250 to $325 for renewal of a
nongovernmental pharmacy license.
C. Establish a fee of $200 to $260 for the
pharmacist application and examination.
D. Establish a fee of $90 to $115 for regrading an
examination.
E. Establish a fee of $150 to $195 for a pharmacist
license and biennial renewal.
F. Establish a fee of $600 to $780 for a
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nongovernmental wholesaler license and annual
renewal. Establish a fee of $225 to $300 for
licensing any location after licensure of the first
twenty locations. Establish a fee of $550 to $715
for a temporary license fee.
G. Establish a fee of $125 to $165 for a hypodermic
license and renewal.
H. Establish a fee of $255 to $330 for application,
investigation and licensure of a designated
representative for a wholesaler who meets certain
requirements. Establish a fee of $150 to $195 for
annual renewal of a designated representative
license.
I. Establish a fee of $255 to $330 for application,
investigation and licensure of a designated
representative for a veterinary food-animal drug
retailer who meets certain requirements. Establish
a fee of $150 to $195 for annual renewal of a
designated representative license.
J. Establish a fee of $600 to $780 for a
nonresident wholesaler license and annual renewal.
Establish a fee of $225 to $300 for licensing any
location after licensure of the first 20 locations.
Establish a fee of $550 to $715 for a temporary
license fee.
K. Establish a fee of $40 per hour for evaluating
continuing education courses for accreditation.
L. Establish a fee of $90 to $115 for an intern
pharmacist license. Establish a fee of $25 to $30
for transferring intern hours or verification of
licensure to another state.
M. Establish a fee of $35 to $45 for reissuing any
license, including for a name change, or renewing
any license that has been lost or destroyed.
N. Establish a fee of $100 to $130 for reissuing
any license or renewing any license for a change in
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the information.
O. Establish a fee of $400 for an initial
nongovernmental clinic application and a fee of
$520 for each license. Establish a fee of $250 to
$325 for a renewal of a nongovernmental clinic
license.
P. Establish a fee of $80 to $105 for a pharmacy
technician license. Establish a fee of $100 to
$130 for renewal of a pharmacy technician license.
Q. Establish a fee of $405 to $425 for a veterinary
food-animal drug retailer license. Establish a fee
of $250 to $325 for renewal of a veterinary
food-animal drug retailer license.
R. Establish a fee of $35 to $45 for a retired
license.
S. Establish a fee of $600 to $780 for a
nongovernmental license or renewal to compound
sterile drug products. Establish a fee of $550 to
$715 for a temporary license to compound sterile
drug products.
2. Authorizes the Board to waive or refund additional fee
for issuing a license if issued less than 45 days before
the next regular renewal date.
3. Declare legislative intent that the Board maintains a
reserve in the Pharmacy Board Contingent Fund equal to
approximately one year's operating expenses.
4. Extends the sunset dates until January 1, 2013 for the
following boards and regulatory programs:
A. Medical Board of California
B. California Board of Podiatric Medicine
C. Board of Registered Nursing
D. State Board of Optometry
E. Naturopathic Doctors Act
F. Respiratory Care Board of California
G. California State Board of Pharmacy
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H. Certified Interior Designer Law
4. Adds double-jointing language to prevent chaptering out
issues with SB 819 (Senate Business and Professions
Committee) and SB 821 (Senate Business and Professions
Committee).
Background
The Board regulates 112,000 licensees and adds
approximately 4,500 licensees per year and has seen a 20
percent increase in its licensee population over the last
five years. The Board notes that it has "aggressively
reviewed its business processes and streamlined where
appropriate, yet is unable to achieve any additional cost
savings."
In 2008, the Department of Consumer Affairs (DCA) and the
Board contracted with a Sacramento area consulting firm to
conduct an audit of the Board's fee schedule. Among other
variables, the audit explored whether current fee levels
are appropriate for the recovery of the actual cost of
conducting programs and conducted an assessment of activity
and workload for Board staff to determine an hourly cost or
cost per unit for various Board functions. The audit found
that the Board's expenditures were exceeding its revenues.
The report also showed that the current fee structure is
insufficient to maintain the 12 month reserve required.
The Board notes that 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
1-month reserve by the end of fiscal year 2011-12.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/2/09)
California Board of Pharmacy (source)
Board of Podiatric Medicine
California Pharmacists Association
ARGUMENTS IN SUPPORT : The Board of Pharmacy is the
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sponsor of this bill. According to the author's office,
"The Board has waited as long as it could to increase its
fees. The licensee population has grown 20 percent 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 additional cost savings. Due to the
fact that the Board has not raised their fees since 1987,
and the licensee population has increased, the current fee
structure is inadequate to continue Board operations at
current levels as well as maintain the reserve required by
statute. A fee increase must be in place by January 1,
2010 to continue Board operations at current levels."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gilmore, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jones, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Block, Hagman, Jeffries, Knight
JJA:do 9/2/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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