BILL ANALYSIS Ó SB 431 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: SB 431 AUTHOR: Emmerson AMENDED: April 11, 2011 FISCAL: Yes HEARING DATE: May 4, 2011 URGENCY: No CONSULTANT: Caroll Mortensen SUBJECT : PHARMACY REGULATION SUMMARY : Existing law : 1)Generally under the Business and Professions Code, provides for the licensure and regulation of pharmacies, pharmacists, and wholesalers of dangerous drugs or devices by the Board of Pharmacy (BOP) within the Department of Consumer Affairs. 2)Defines "reverse distributor" as every person who acts as an agent for pharmacies, drug wholesalers, manufacturers, and other entities by receiving, inventorying, and managing the disposition of outdated or nonsalable dangerous drugs (Business and Professions Code §4040.5). 3)Defines "dangerous drug" or "dangerous device" as any drug or device unsafe for self-use in humans or animals, and includes the following: a) Any drug that bears the legend: "Caution: federal law prohibits dispensing without prescription," "Rx only," or words of similar import. b) Any device that bears the statement: "Caution: federal law restricts this device to sale by or on the order of a ____," "Rx only," or words of similar import, the blank to be filled in with the designation of the practitioner licensed to use or order use of the device. SB 431 Page 2 c) Any other drug or device that by federal or state law can be lawfully dispensed only on prescription or furnished as described (§4022). 4)Requires pharmacies to keep records of manufacture, sale, acquisition or disposition of dangerous drugs or dangerous devices for three years, and requires these records to be available for inspection by authorized officers of the law (§4081). 5)Requires all records or other documentation of the acquisition and disposition of dangerous drugs and dangerous devices by any entity licensed by the BOP to be retained on the licensed premises in readily retrievable form (§4105). 6)Establishes a system to license and oversee medical waste haulers (Health and Safety Code §118000 et seq.). 7)Requires the Department of Resources Recycling and Recovery (DRRR), by July 1, 2008, to consult with local, state, and federal agencies including the Department of Toxic Substances Control, the State Water Resources Control Board, and the BOP to establish model disposal programs for waste pharmaceuticals that include requirements for safety, oversight, diversion prevention, and ease of use for consumers (Public Resources Code §47122). 8)Requires DRRR, by December 1, 2010, to submit a report to the Legislature that includes an evaluation of the model programs for efficacy, safety, statewide accessibility, and cost effectiveness. The report shall include the consideration of the incidence of diversion of drugs for unlawful sale and use, if any. The report also shall provide recommendations for the potential implementation of a statewide program and statutory changes (§47123). This bill : 1) Specifies that a pharmacy may furnish dangerous drugs to a hazardous waste hauler for the sole purpose of waste disposal of pharmaceutical waste returned to the pharmacy SB 431 Page 3 by a patient or patient's agent. 2) Prohibits a reverse distributor from accepting dangerous drugs that have been dispensed to a patient and later returned by a patient or patient's agent. 3) Specifies that only a hazardous waste hauler can pick up or handle dangerous drugs returned by a patient or patient's agent to a pharmacy. 4) Contains other provisions not related to the jurisdiction of the Environmental Quality Committee including: a) Clarifies that any record pertaining to the return of dangerous drugs to a wholesaler, or provided to a reverse distributor, must document the quantity or weight of the drugs returned, the date the drugs were returned, and the name of the reverse distributor or wholesaler to whom the drugs were provided. b) Clarifies that any record pertaining to the return of dangerous drugs to a hazardous waste hauler must list the volume in weight or measurement of the pharmaceutical waste returned, the date the waste was returned, and the name of the hazardous waste hauler to whom waste was provided. c) Requires that, in addition to reporting certain information and evidence about licensees related to chemical, mental, or physical impairment, to the extent it affects his or her ability to practice, and theft, diversion or self-use of dangerous drugs to the BOP within 30 days, a pharmacy must also provide the information and evidence to the BOP within 30 days. d) In the event of information or evidence pertaining to chemical, mental, or physical impairment of a licensee (to the extent it affects his or her ability to practice) or theft, diversion or self-use of dangerous drugs, requires a pharmacy to conduct an audit to determine the quantity and type of dangerous drugs stolen, diverted, or used by a licensed individual employed by or with the pharmacy and submit a copy of SB 431 Page 4 the audit to the BOP within 30 days. e) Requires the owner, corporate officer, or manager of an entity licensed by the BOP, when requested by an authorized officer of the law or by an authorized representative of the BOP, to provide the requested records within 72 hours of the time the request was made. Specifies that the entity may request an extension in writing for up to 14 days. f) Clarifies that a nonresident pharmacy shall not permit a pharmacist whose license has been revoked by the BOP to manufacture, compound, furnish, sell, dispense, or initiate the prescription of a dangerous drug or dangerous device, or to provide any pharmacy-related service, to a person residing in California. COMMENTS : 1) Purpose of Bill . According to the author, SB 431 will increase consumer protection as well as better ensure the proper disposal of prescription drugs. Without a safe and effective method for disposal, prescription drugs may be left in medicine cabinets where they pose a threat of potential drug misuse or abuse. The author asserts that this bill will also make certain that when drugs are received by a pharmacy that has established a take-back program, they are properly disposed of, and not re-introduced into the pharmaceutical supply. The author believes that this bill also contains consumer protection measures that provide the BOP with information it needs to quickly discipline errant licensees by requiring additional reporting on drug loss. Additionally, the author notes that ensuring that an individual whose pharmacist license has been revoked in California is not able to dispense medication to Californians via mail supports the BOP public protection efforts. As it pertains to the jurisdiction of the Environmental Quality Committee, this bill would limit the entities that can transport home-generated pharmaceutical waste (HGPW) to only hazardous waste haulers. It would preclude reverse SB 431 Page 5 distributors and those entities that have obtained a limited-quantity hauling exemption from managing HGPW. 2) Drug Waste Management and Disposal . SB 966 (Simitian) Chapter 542, Statutes of 2007, established a program at DRRR to develop and evaluate HGPW take-back programs. In March of this year, DRRR released the report required pursuant to that law. Based on the analysis described in detail in the report, DRRR recommends that the Legislature adopt a combination of two options related to pharmaceutical waste collection programs: 1) statutory changes to establish clear state roles and responsibilities, provide direction to resolve several implementation challenges, and direct that the Criteria and Procedures for Model Home-Generated Pharmaceutical Waste Collection and Disposal Programs developed by DRRR be refined and converted into regulations; and 2) statutory direction to address funding barriers by providing financing through a private sector approach with government oversight, commonly referred to as product stewardship. Manufacturers or drug brand owners would design, manage, and finance a statewide program, while state government would oversee program implementation and enforcement. 3) Federal efforts . In 2010, Congress passed legislation giving the Attorney General authority to promulgate new regulations, within the framework of the Controlled Substances Act that will allow patients to deliver unused pharmaceutical controlled substances to appropriate entities for disposal in a safe and effective manner consistent with effective controls against diversion. The goal of this Act is to encourage the Attorney General to set controlled substance diversion prevention parameters that will allow public and private entities to develop a variety of methods of collection and disposal of controlled substances, including some pharmaceuticals, in a secure, convenient, and responsible manner. This will also serve to reduce instances of diversion and introduction of some potentially harmful substances into the environment. The regulations are currently under development. 4) Opposition Arguments . The Bay Area Pollution Prevention Group represents 43 wastewater treatment facilities around SB 431 Page 6 the San Francisco Bay and beyond, that work to prevent pollution in San Francisco Bay. They raise several concerns with the bill. They state that the bill could be in conflict with the pending federal regulation and could make it even more difficult and costly for agencies, retailers, and drug manufacturers in California to provide programs for the public to properly dispose of pharmaceuticals. They point to reverse distributors, as well as common carriers, as options that the DEA is looking at as pick-up and transportation services. They claim that reverse distribution is possibly one of the best and most cost-effective tools for residential disposal programs. Reverse distributors already work in pharmacies to dispose of medication that was not sold either due to overstocking, recalls, or expiration. A pharmacy-based residential collection program could utilize their reverse distribution network to remove unwanted residential medication at the same time as these unsold drugs. Also, they point to another option that many public agencies, hospitals, and long-term care facilities would like to consider for disposal of residential unwanted medication; the use of common carriers to transport pharmaceutical waste to an incineration facility. Currently, United States Postal Service, FedEx, and United Parcel Service deliver medication to end users. They claim that leftover medication could safely be sent by common carrier to a regulated facility for incineration at a significantly lower cost than medical or hazardous waste hauling. 5) Previous Legislation . SB 26 (Simitian) of 2009 developed a management and tracking system within the Medical Waste Act for HGPW that removed HGPW from the definition of medical waste and developed a manifest system to ensure proper management and disposal. This bill was amended to address another subject matter. 6) Previous Committee . SB 431 was approved by the Business, Professions and Economic Development Committee on April 11, 2011 (9-0). 7) Amendments Needed . The Medical Waste Act establishes the process for managing medical waste, including pharmaceutical waste. Also, many local jurisdictions and SB 431 Page 7 state agencies are working on the on-going efforts at the federal level to develop regulations to assist with safe, efficient collection of pharmaceutical waste, including controlled substances. Further, the Legislature is in receipt of the mandated report that contains recommendations regarding the statutory changes necessary to implement HGPW take-back programs. This bill should be amended to remove the provisions in Section 5 and Section 6 of the bill dealing with hazardous waste haulers and HGPW. SOURCE : California Board of Pharmacy SUPPORT : None on file OPPOSITION : Bay Area Pollution Prevention Group