BILL ANALYSIS Ó SB 1329 Page 1 SENATE THIRD READING SB 1329 (Simitian) As Amended June 26, 2012 Majority vote SENATE VOTE :38-0 HEALTH 18-0 -------------------------------- |Ayes:|Monning, Logue, Ammiano, | | |Atkins, Bonilla, Eng, | | |Garrick, Gordon, Hayashi, | | |Roger Hernández, | | |Bonnie Lowenthal, | | |Mansoor, Mitchell, | | |Nestande, V. Manuel | | |Pérez, Silva, Smyth, | | |Williams | | | | -------------------------------- SUMMARY : Revises existing law authorizing a voluntary, county-option drug repository and distribution program (program) to distribute surplus unused medications to medically indigent persons to expand the categories of facilities that can dispense and donate medications in the program; include these additional entities in the immunities from civil and criminal liability granted to entities participating in the program; and, modify the method by which a county may establish the program. Specifically, this bill : 1)Includes a licensed pharmacy that is owned and operated by a licensed primary care clinic, and a licensed primary care clinic that is licensed to administer and dispense drugs, in the definition of eligible entities that are authorized to dispense medication in the program. Prohibits these additional entities from being on probation with the Board of Pharmacy (Board). 2)Adds the following categories of facilities to the types of entities authorized to donate medication under the program: a) A general acute care hospital; SB 1329 Page 2 b) An acute psychiatric hospital; c) An intermediate care facility (ICF); d) ICF/developmentally disabled facilities, as specified; e) A correctional treatment center; f) A psychiatric health facility; g) A chemical dependency recovery hospital; h) Residential care facilities for the elderly, as specified; and, i) A mental health rehabilitation center. 3)Deletes existing law authorizing a county to establish the program by local ordinance and, instead, allows a county to establish the program through an action by the county board of supervisors or through an action of the county public health officer, as directed by the county board of supervisors. Requires the county to notify the Board within 30 days after establishing the program. 4)Requires an entity that seeks to participate in the program to inform the county health department and the Board in writing of its intent and prohibits an entity from participating in the program until it has received written or electronic documentation from the county health department confirming that its notice of intent has been received. 5)Requires an entity participating in the program to disclose to the county health department the name and location of the source of all donated medication it receives, and requires a participating primary care clinic to disclose to the county health department the physician accountable to the Board for the clinic's program operations. Requires the physician to be the clinic's professional director. 6)Directs the county board of supervisors or county public health officer to make available to the Board, upon request, the information in 5) above. SB 1329 Page 3 7)Allows the county board of supervisors, the county public health officer, or the Board to prohibit an entity from participating in the program if the entity does not comply with the requirements of the program. Requires the prohibited entity to be notified in writing, as specified. 8)Permits medication donated to the program to be transferred to another entity participating in the program for dispensing to eligible patients. 9)Exempts the additional facilities authorized by this bill to dispense and donate medication from existing civil and criminal liability when donating, accepting or dispensing drugs in the program, except in cases of noncompliance with existing law governing the program, bad faith, or gross negligence. FISCAL EFFECT : None COMMENTS : According to the author, this bill is intended to enhance efforts to implement prior legislation, SB 798 (Simitian), Chapter 444, Statutes of 2005, which allows counties to set up drug collection and redistribution programs. The author notes that, under SB 798, only skilled nursing facilities (SNFs), drug wholesalers, and drug manufacturers are allowed to donate unused medications and only county-owned or county-contracted pharmacies are authorized to receive and dispense the donated drugs. The author contends that this bill is needed to allow health and care facilities, other than SNFs, that also accumulate unused and unexpired drugs that would otherwise be destroyed, to participate as drug donors in the program. Additionally, the author states that this bill will enable clinics, which often serve the medically indigent, to receive and dispense the donated drugs and will remove a bureaucratic hurdle for many counties by eliminating the requirement for a program to be initiated by a county ordinance and instead allow it to be established through an action by the county board of supervisors or the county public health officer. The Board has taken a support if amended position on this bill and requests clarifying amendments to ensure that this bill does not inadvertently create drug diversion opportunities. According to the Board, previously dispensed drugs donated to SB 1329 Page 4 county programs are not subject to the normal controls built into the distribution requirements for prescription medication so preventing opportunities where these drugs, some of which are very costly to purchase, could be illegally resold back into the supply chain is a Board goal. Supporters, representing counties, potential donor entities, patient advocates, and environmental groups, state that this bill will increase the accessibility of prescription drugs to a greater number of low-income, uninsured Californians while reducing the environmental impact of pharmaceutical waste. Supporters agree that implementing more prescription recycling programs for unused medications throughout the state is especially important at a time when prescription drug costs continue to rise as budgets for the health care safety net are shrinking. Analysis Prepared by : Cassie Royce / HEALTH / (916) 319-2097 FN: 0004216