BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 431|
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                              UNFINISHED BUSINESS


          Bill No:  SB 431
          Author:   Emmerson (R)
          Amended:  8/31/11
          Vote:     21

           
           SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE  :  9-0, 4/25/11
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Vargas, Walters, Wyland

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 5/4/11
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  39-0, 5/31/11
          AYES:  Alquist, Anderson, Blakeslee, Calderon, Cannella, 
            Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, 
            Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, 
            Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete 
            McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian, 
            Steinberg, Strickland, Vargas, Walters, Wolk, Wright, 
            Wyland, Yee
          NO VOTE RECORDED:  Berryhill

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Pharmacies:  regulation

           SOURCE  :     Board of Pharmacy

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           DIGEST  :    This bill expands existing reporting 
          requirements to the Board of Pharmacy when a pharmacy 
          discovers that an employee has been stealing drugs, 
          prohibits a pharmacist whose California license has been 
          revoked from dispensing medication to Californians via 
          mail.

           Assembly Amendments  delete the provisions of the bill which 
          dealt with records pertaining to the return of dangerous 
          drugs to a wholesaler, reverse distributor, or hazardous 
          waste hauler, and delete the provision of the bill which 
          prohibited a revere distributor from accepting dangerous 
          drugs returned to a pharmacy unless the dangerous drugs 
          were dispensed in a sealed or tamper-evident package and 
          there was no evidence that the package was opened, damaged 
          or otherwise tampered with.

           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) within the 
             Department of Consumer Affairs (DCA).  

          2. Defines the following terms:

             A.    "Authorized officers of the law" as inspectors 
                of the Board, inspectors of the Food and Drug 
                Branch of the State Department of Public Health, 
                and investigators of DCA's Division of 
                Investigation or peace officers engaged in 
                official investigations.

             B.    "Designated representative" as an individual to 
                whom a license has been granted to provide 
                sufficient and qualified supervision in a 
                wholesaler or veterinary food-animal drug 
                retailer.  Specifies that the designated 
                representative shall protect the public health and 
                safety in the handling, storage, and shipment of 
                dangerous drugs and dangerous devices.  

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                "Designated representative-in-charge" means a 
                designated representative or a pharmacist proposed 
                by a wholesaler or veterinary food-animal drug 
                retailer and approved by the Board as the 
                supervisor or manager responsible for ensuring 
                compliance with all state and federal laws.

             C.    "Pharmacist-in-charge" as a pharmacist proposed 
                by a pharmacy and approved by the Board as the 
                supervisor or manager responsible for ensuring the 
                pharmacy's compliance with all state and federal 
                laws and regulations pertaining to the practice of 
                pharmacy.

          3. 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.  Requires that an inventory be kept 
             by every manufacturer, wholesaler, pharmacy, veterinary 
             food-animal drug retailer, physician, dentist, 
             podiatrist, veterinarian, laboratory, clinic, hospital, 
             institution, or establishment holding a currently valid 
             and unrevoked certificate, license, permit, registration 
             who maintains a stock of dangerous drugs or devices.  
             Makes the owner, officer, partner and 
             pharmacist-in-charge or designated 
             representative-in-charge responsible for maintaining 
             records and keeping inventory.  Clarifies that the 
             pharmacist-in-charge or designated 
             representative-in-charge are not criminally responsible 
             for the acts of an owner, officer, partner or employee 
             if the pharmacist-in-charge or designated 
             representative-in-charge had no knowledge of the acts.

          4. Requires pharmacies to have procedures in place to take 
             action when a licensed individual employed by or with 
             the pharmacy is chemically, mentally, or physically 
             impaired to the extent it affects his or her ability to 
             practice the profession or occupation he or she is 
             licensed to practice, or when a licensed individual has 
             engaged in the theft, diversion, or self-use of 
             dangerous drugs.  Requires pharmacies to have written 
             policies and procedures for addressing chemical, mental, 

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             or physical impairment, as well as theft, diversion, or 
             self-use of dangerous drugs, among licensed individuals 
             employed by or with the pharmacy. States that anyone 
             making a report has immunity from any civil or criminal 
             liability that might otherwise arise from making of the 
             report.  Requires pharmacies to report the following to 
             the Board within 30 days: 

             A.    Any admission by a licensed individual of 
                chemical, mental, or physical impairment affecting 
                his or her ability to practice.

             B.    Any admission by a licensed individual of 
                theft, diversion, or self-use of dangerous drugs.

             C.    Any video or documentary evidence demonstrating 
                chemical, mental, or physical impairment of a 
                licensed individual to the extent it affects 
                his/her ability to practice.

             D.    Any video or documentary evidence demonstrating 
                theft, diversion, or self-use of dangerous drugs 
                by a licensed individual.

             E.    Any termination based on chemical, mental, or 
                physical impairment of a licensed individual to 
                the extent it affects his/her ability to practice.

             F.    Any termination of a licensed individual based 
                on theft, diversion, or self-use of dangerous 
                drugs.

          5. Specifies that a nonresident pharmacy is any pharmacy 
             located outside of California that ships, mails or 
             delivers controlled substances, dangerous drugs, or 
             dangerous devices into California and establishes 
             certain licensing, disclosure and record keeping 
             requirements for these entities. 

          This bill:

          1.Requires a pharmacy, within 14 days, report certain 
            information and evidence about licensees related to 
            chemical, mental, or physical impairment to the extent it 

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            affects his or her ability to practice and theft, 
            diversion or self-use of dangerous drugs to the Board.  

          2.Requires the report required above include sufficient 
            detail to inform the Board of the facts on which the 
            report is based, including an estimate of the type and 
            quantity of all dangerous drugs involved, the timeframe 
            over which the losses are suspected, and the date of the 
            last controlled substances inventory.  Requires a 
            pharmacy, upon request of the Board, prepare and submit 
            an audit involving the suspected missing dangerous drugs.

          3.Requires the owner, corporate officer, or manager of an 
            entity licensed by the Board, when requested by an 
            authorized officer of the law or by an authorized 
            representative of the Board, to provide the requested 
            records within three business days of the time the 
            request was made.  Specifies that the entity may request 
            an extension in writing for up to 14 calendar days, 
            subject to Board approval.  Deems an extension approved 
            if the Board fails to deny the request within two 
            business days of the time the extension request was made 
            directly to the Board.

          4.Clarifies that a nonresident pharmacy shall not permit a 
            pharmacist whose license has been revoked by the Board 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

           SUPPORT  :   (Verified  9/6/11)

          Board of Pharmacy (source)


          JJA:do  9/8/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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