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             disposition of outdated or nonsalable dangerous drugs 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.










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              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 









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              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 









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                 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 









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              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 









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              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 









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              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