BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 431| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 431 Page 2 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when a pharmacy discovers that an employee has been stealing drugs, prohibits a pharmacist whose California license has been revoked from dispensing medication to Californians via mail.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. CONTINUED SB 431 Page 3 "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, CONTINUED SB 431 Page 4 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 CONTINUED SB 431 Page 5 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 **** END **** CONTINUED SB 431 Page 6 CONTINUED