BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2104
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          ASSEMBLY THIRD READING
          AB 2104 (Hayashi)
          As Amended  May 28, 2010
          Majority vote 

           BUSINESS & PROFESSIONS   7-4    APPROPRIATIONS      11-6        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Eng, Hernandez,  |Ayes:|Fuentes, Ammiano,         |
          |     |Hill, Ma, Nava, Ruskin    |     |Bradford,                 |
          |     |                          |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis, Monning, Ruskin,   |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Emmerson, Conway, Niello, |Nays:|Conway, Harkey, Miller,   |
          |     |Smyth                     |     |Nielsen, Norby, Skinner   |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :   Permits the Governor to appoint a person exempt from  
          civil service as the Board of Pharmacy's (BOP) executive officer  
          (EO), and requires BOP to submit and receive prior approval from  
          the Department of Consumer Affairs (DCA) for all state  
          legislation BOP seeks to sponsor, support, or oppose.   
          Specifically,  this bill  :  

          1)Permits the Governor, rather than the BOP, to appoint a person  
            exempt from civil service as BOP's EO, who shall exercise the  
            powers and perform the duties delegated by BOP and vested in  
            him or her, as specified.  The EO may or may not be a member  
            of BOP as the Governor may determine.

          2)Requires BOP to submit to DCA and receive prior approval for  
            every piece of state legislation the board seeks to sponsor,  
            support, or oppose.  Requires BOP to resubmit and receive  
            subsequent approval from DCA on the same legislation after any  
            substantive amendments.

           EXISTING LAW  :

          1)Provides for the licensure and regulation of the practice of  
            pharmacy by BOP within the DCA. 








                                                                  AB 2104
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          2)Provides that BOP is comprised of 13 members, 11 appointed by  
            the Governor, and one member each appointed by the Senate  
            Committee on Rules and the Speaker of the Assembly. 

          3)Authorizes BOP to appoint a person exempt from civil service  
            designated as the EO who performs the duties delegated by BOP.  
             Under existing law, EO may or may not be a member of BOP, as  
            determined by BOP. 

          4)Prohibits any board from submitting to the Legislature any  
            fiscal impact analyses relating to legislation pending before  
            the Legislature until the analysis has been submitted to the  
            Director of DCA for review and comment.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, no direct fiscal impact is created by this bill.

           COMMENTS  :  According to the author's office, "I am concerned  
          about the relationship between BOP and the entities they are  
          supposed to regulate.  BOP's mission is to 'protect and promote  
          the health and safety of Californians by pursuing the highest  
          quality of pharmacist's care and the appropriate use of  
          pharmaceuticals through education, communication, licensing,  
          legislation, regulation, and enforcement.'  However, they have  
          sponsored several bills in the recent past that do not place the  
          consumer's interest first.  We believe this bill will help BOP  
          renew its commitment to ordinary Californians."    


          Currently, BOP selects its own EO, and the Governor appoints DCA  
          bureau chiefs.    All boards and bureaus are requested to submit  
          sponsored legislation for DCA review, but are not required to do  
          so.  BOP has not submitted its legislative package in the past,  
          according to DCA. 

          This bill requires the Governor to appoint a person exempt from  
          civil service as BOP's EO, and requires BOP to submit and  
          receive prior approval from DCA for all state legislation BOP  
          seeks to sponsor, support, or oppose. 

          The California Nurses Association writes in support, "Recently,  
          BOP sponsored several bills that advantaged the pharmacy  
          industry without benefit to consumers, and there have been  








                                                                  AB 2104
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          concerns of undue industry influence in the BOP.  These actions  
          present a clear conflict of interest for the BOP with its  
          regulatory role and mission to protect the health and safety of  
          Californians.  This bill will ensure a degree of professional  
          distance between the BOP and its managing administrative officer  
          by allowing the Governor to appoint the EO.

          "Further, by requiring the DCA to review all legislation the BOP  
          wishes to sponsor, support, or oppose, the BOP will have a fresh  
          perspective on legislation impacting consumers and be better  
          insulated from undue influence peddling by the regulated  
          community."

          California Retailers Association (CRA) writes in opposition, "AB  
          2104 proposes to enact provisions that would undermine and  
          impact BOP's independence from DCA.  Specifically, the sections  
          that permit the Governor to appoint the BOP's EO and require the  
          BOP to obtain DCA approval on all board sponsored, supported or  
          opposed legislation and subsequent amendments would allow DCA to  
          manage the activities of the board.  As such, AB 2104 represents  
          a significant departure from the widely accepted view that  
          healing arts boards be allowed to fulfill their missions without  
          interference from the political pressures exerted by the  
          Administration."  
           

          Analysis Prepared by :    Sarah Weaver / B.,P. & C.P. / (916)  
          319-3301 


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