BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 809
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  SB 809 (DeSaulnier) - As Amended:  August 5, 2013 

          Policy Committee:                             Business and  
          Professions  Vote:                            14-0
                       Public Safety                            7-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:               

          SUMMARY  

          This bill creates a funding mechanism to update and maintain the  
          Department of Justice (DOJ) Controlled Substance Utilization  
          Review and Evaluation System (CURES) Prescription Drug  
          Monitoring Program (PDMP). Specifically, this bill:   

          1)Assesses an annual $6 fee on the following licensees to pay  
            the reasonable costs associated with operating and maintaining  
            CURES for the purpose of regulating these licensees:

            Physicians, dentists, podiatrists, veterinarians, naturopathic  
            doctors, pharmacists, registered nurse, certified  
            nurse-midwives, nurse practitioners, physician assistants, and  
            optometrists, as specified; wholesalers and nonresident  
            wholesalers of dangerous drugs, as specified; nongovernmental  
            clinics, nonprofit clinics, and free clinics, as specified;  
            and nongovernmental pharmacies, as specified. 

          2)Requires the fee to be collected at the time of the licensee's  
            license renewal and be deposited into the CURES Fund, created  
            by this bill, to be available, upon appropriation, to the  
            Department of Consumer Affairs (DCA) to reimburse DOJ.   

          3)Permits DOJ to seek voluntarily contributed private funds from  
            insurers, health care service plans, and qualified  
            manufacturers for the purpose of supporting CURES, as  
            specified. Requires DOJ to annually report to the Legislature,  
            and make public the amount and source of funds it receives for  
            support of CURES.









                                                                  SB 809
                                                                  Page  2

          4)Requires DOJ, in conjunction with DCA and the appropriate  
            boards and committees, to implement a streamlined application  
            and approval process to provide access to the CURES PDMP  
            database for licensed health care practitioners.  

          5)Requires the Medical Board to "periodically develop and  
            disseminate" information and educational material regarding  
            the risk of abusing controlled substances, as well as  
            information relating to CURES, to licensed physicians,  
            surgeons and acute care hospitals.  

           FISCAL EFFECT

           Ongoing special fund costs in the $1.5 million range, fully  
          covered by the proposed fee structure, to staff and maintain the  
          upgraded PDMP. The related costs to upgrade the PDMP database -  
          almost $3 million - received funding in the 2013-14 budget bill.  
           
          COMMENTS  

           1)Rationale  . Sponsored by DOJ, this bill provides a funding  
            scheme for the ongoing operations of the CURES PDMP. According  
            to the author, "SB 809 provides essential funding to continue  
            and strengthen the CURES PDMP, a vital resource for medical  
            professionals and law enforcement to detect and prevent  
            prescription drug abuse and addiction, and save lives. Without  
            dedicated funding, the CURES program will be suspended and  
            California will join Missouri as the only state in the nation  
            without a PDMP.

            "Prescription drug abuse is the Nation's fastest-growing drug  
            problem and has been classified as a public health epidemic by  
            the Centers for Disease Control and Prevention. One hundred  
            people die from drug overdoses every day in the United States  
            and prescription painkillers are responsible for 75% of these  
            deaths, claiming more lives than heroin and cocaine combined,  
            and fueling a doubling of drug-related deaths in the United  
            States over the last decade."

           2)CURES/PDMP Background.  To combat prescription drug abuse, the  
            California Triplicate Prescription Program (TPP) was created  
            in 1939. It was replaced by CURES in 1997, and in 2009, the  
            PDMP system was implemented as a searchable database component  
            of CURES. The database contains more than 100 million entries  
            of controlled substance drugs dispensed in California.  In  








                                                                  SB 809
                                                                  Page  3

            2012, the program responded to more than 800,000 requests. 

            Pharmacists are required to report dispensations of Schedules  
            II, III and IV controlled substances at least weekly; PDMP by  
            prescribers and dispensers for prescription abuse  
            prevention/intervention is voluntary. 

            The 2011-12 budget bill eliminated GF support of CURES/PDMP.  
            DOJ struggled to keep the program operative, cobbling together  
            temporary staff and student interns. This bill is the result  
            of a lengthy and collaborative effort to establish a stable  
            and ongoing funding scheme. 
           
          3)Support  includes a lengthy and varied list of organizations,  
            including the Attorney General, the American and CA Medical  
            Associations, Association of CA Insurance Companies, CA  
            Department of Insurance, CA Hospital Association, CA Labor  
            Federation, CA Police Chiefs Association, CA Retailers  
            Association, CA State Sheriffs Association, MBC, and UC. 

            According to the Attorney General's (AG's) Office, The  
            majority of the CURES funding was cut during the Fiscal Year  
            2011-12 budget and CURES and the PDMP have since been staffed  
            by a single AG employee.  Additionally, the current PDMP is a  
            dated, unstable program that has needed an upgrade to meet the  
            needs of prescribers and pharmacists.

          4)"The current budget funds the upgrade of the PDMP, and this  
            legislation is necessary to provide the ongoing funding to  
            operate and maintain the program."

           5)There is no confirmed opposition  .


            Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081