BILL ANALYSIS AB 2104 Page 1 Date of Hearing: May 5, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2104 (Hayashi) - As Amended: April 8, 2010 Policy Committee: Business & Professions Vote: 7-4 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill modifies the governance of the California Board of Pharmacy. These changes would mean the Board of Pharmacy would be governed differently than all other healing arts boards under the jurisdiction of the California Department of Consumer Affairs. Specifically, this bill: 1)Requires the governor to appoint an executive officer of the Board of Pharmacy and requires the executive officer to be exempt from civil service classification. 2)Requires the Board of Pharmacy to receive prior approval from the Department of Consumer Affairs for all state legislation the Board supports, opposes, or sponsors. Requires such approval to be reviewed each time a piece of legislation is amended. 3)Requires the Board of Pharmacy members to disclose ex-parte communication in specified formats and defines ex-parte communication to include telephone calls, written communication, electronic mail, and text messaging. 4)Requires the promulgation of regulations regarding ex parte communication and requires regulations to address sanctions for non-compliance with ex parte requirements. FISCAL EFFECT Special Fund costs of $175,000 to $200,000 much of which would consist of one-time costs for regulations, to the Board of Pharmacy and the Department of Consumer Affairs to increase and AB 2104 Page 2 modify oversight of communication policies. Costs include promulgating regulations, increased feedback for legislative communication, and significant staffing, documentation, and storage related to ex-parte communication. COMMENTS 1)Rationale . This bill modifies the governance of the Board of Pharmacy and codifies substantial requirements regarding ex parte communication of the 13 board members. According to the author there is reason to believe the Board of Pharmacy has failed to place consumers' interests first when sponsoring legislation. The author intends to reduce the authority of the Board of Pharmacy by requiring specific decision making and oversight authority to be folded into the Department of Consumer Affairs. In addition, this bill requires the governor to appoint the executive office of the Board. Under current law the Board appoints the executive officer. 2)Background . The Board of Pharmacy provides professional oversight and consumer protections related to pharmacists and pharmacy technicians. The Board provides guidance in areas such as education, communication, licensing, legislation, regulation, and enforcement. More than 35,000 pharmacists and 52,000 pharmacy technicians are under the Board's jurisdiction. 3)Policy Direction Reduces Professional Oversight Uniformity . The approach proposed in this bill would mean the Board of Pharmacy would be the only healing arts board with this kind of governance and codified communication requirements. It appears the pharmacy profession and related oversight as a result of this bill may be at a disadvantage relative to other healing arts boards. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081