BILL ANALYSIS Ó SB 1095 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1095 (Rubio) - As Amended: August 6, 2012 Policy Committee: Business and Professions Vote: 9-0 Health Vote: 13-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill authorizes the Board of Pharmacy to grant limited licenses to outpatient settings and ambulatory surgical centers (ASCs), so that they may purchase drugs at wholesale for administering and dispensing to their patients. FISCAL EFFECT 1)Estimated increased revenue to the Board of Pharmacy of $180,000 in 2013, and $113,000 annually in subsequent years, from initial and renewal limited pharmacy license fees. 2)Annual costs of $164,000 (fee-supported special fund) for one pharmacy inspector position to handle additional inspection workload. COMMENTS 1)Rationale . According to the author, this bill provides physician-owned ASCs the proper licensing necessary to administer high quality care by allowing them to purchase certain drugs wholesale and store them on site. 2)Background . Outpatient settings and physician-owned ASCs operate under an individual licensed by the Medical Board of California. In addition to operating under a Board licensee, outpatient settings that perform procedures using a specified level of anesthesia must be accredited by one of four private accrediting agencies approved by the Board. Prior to 2007, physician-owned ASCs were also licensed by the California SB 1095 Page 2 Department of Public Health (CDPH). In 2007, a California appellate court ruled that ASCs owned in whole or in part by physicians were no longer eligible for licensure by CDPH. Since the ruling, CDPH is not renewing or granting any licenses to a surgical clinic with any degree of physician ownership, although it continues to certify these centers for Medicare purposes. The lack of CDPH licensure means that ASCs may not apply for a limited license from the Board of Pharmacy to purchase drugs at wholesale, for administration or dispensing to patients in their care at these facilities. This bill provides the Board of Pharmacy with narrow authority to grant a limited pharmacy license to these facilities. Without such a license, each physician at the facility must procure at retail price and stock a supply of drugs. Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081