BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2592


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          Date of Hearing:  April 19, 2016


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                  Rudy Salas, Chair


          AB 2592  
          (Cooper) - As Amended April 11, 2016


          NOTE: This bill is double referred, having previously been heard  
          by the Assembly Committee on Health and passed on a 18-0 vote.


          SUBJECT:  Controlled substances:  medicine locking closure  
          packages:  grant program.


          SUMMARY:  Creates within the California Department of Public  
          Health (CDPH) a pilot program that would award grants to  
          eligible pharmacies for the purpose of supplying medicine  
          locking closure packages to patients with prescriptions for  
          opioids.


          EXISTING LAW:


          1)Provides for the licensure and regulation of pharmacies by the  
            California State Board of Pharmacy (Board).  (Business and  
            Professions Code (BPC) Section 4001)


          2)Defines "Pharmacist" to mean the holder of an unexpired and  
            active pharmacist license issued by the board, and who is  
            entitled to practice pharmacy.  (BPC Section 4036)








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          3)Defines "Pharmacy" to mean an area, place, or premises  
            licensed by the board in which the profession of pharmacy is  
            practiced and where prescriptions are compounded. "Pharmacy"  
            includes, but is not limited to, any area, place, or premises  
            described in a license issued by the board wherein controlled  
            substances, dangerous drugs, or dangerous devices are stored,  
            possessed, prepared, manufactured, derived, compounded, or  
            repackages, and from which those substances are furnished sold  
            or dispensed at retail.  (BPC Section 4037(a))


          4)Requires the Board to license a surplus medication collection  
            and distribution intermediary established for the purpose of  
            facilitating the donation of medications to or transfer of  
            medications between participating entities under a program  
            established pursuant to Division 116 of the Health and Safety  
            Code. (HSC Section 4169.5(a))


          5)Requires all California licensed prescribers authorized to  
            prescribe scheduled drugs to register for access to CURES 2.0  
            by July 1, 2016 or upon issuance of a Drug Enforcement  
            Administration Controlled Substance Registration Certificate,  
            whichever occurs later, and requires licensed pharmacists to  
            register for access to CURES 2.0 by July 1, 2016, or upon  
            issuance of a license, whichever occurs later.  (HSC Section  
            11165.1)


          THIS BILL:


          6)Makes various findings and declarations regarding the  
            prescription opioid dependence problem facing California and  
            the United States.
          7)Requires the CDPH to launch a pilot program, to the extent  
            funding is available, and award grants to participating  








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            pharmacies in regions where opioid abuse is most prevalent.


          8)Requires every medicine locking closure package to be  
            dispensed with instructions for patient use unless the patient  
            indicates orally or in writing that instructions are not  
            needed.


          9)Requires participating pharmacies to offer all patients with  
            opioid prescriptions a medicine locking closure package along  
            with their medication.  The locking closure package shall be  
            given only with the patient's consent.


          10)Defines "medicine locking closure package" to include a  
            locking closure container, unlocked only with a user-generated  
            code that only allows the person with the prescription to  
            access the medicine, which may include an amber prescription  
            container combined with a resettable alphanumerical code.


          11)Prohibits the CDPH from expending General Fund monies on this  
            program unless those monies are specifically appropriated for  
            this purpose, and permits the CDPH to seek funds from private  
            entities, including foundations and nonprofit organizations,  
            and may apply for federal or other grants, to fund the grant  
            program.


          12)Requires the CDPH to evaluate the effectiveness of the pilot  
            program to combat prescription drug abuse in targeted areas  
            and report its findings to the Legislature no later than  
            December 31, 2019.  The report shall be submitted in  
            compliance with Section 9795 of the Government Code.


          13)Repeals the pilot program on January 1, 2020.









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          FISCAL EFFECT:  Unknown.  This bill has been keyed fiscal by the  
          Legislative Counsel. 


          COMMENTS:


          Purpose.  This bill is sponsored by  GateKeepers Innovations,  
          Inc  .   According to the author, "[This bill] is a prescription  
          drug abuse prevention bill.  The intent of the bill is to keep  
          prescription drugs out of the hands of young people.   
          Prescription drug abuse is arguably the largest healthcare  
          epidemic in the United States.  A study by the Partnership for  
          Drug-Free Kids, found that one of the key drivers for abusing  
          prescription pain killers among teens is the availability and  
          easy access.  In the Sacramento area, which includes portions of  
          my district, 42 overdoses and 10 deaths have been blamed on the  
          prescription painkiller fentanyl.  AB 2592 establishes a pilot  
          program to measure whether increasing safe storage of opioids  
          reduces the number of accidental poisonings among young people,  
          and reduces the overall prescription drug abuse rate among  
          teens.  The Department of Public Health would administer the  
          voluntary pilot program and award grants to participating  
          pharmacies in areas with high rates of prescription drug abuse.   
          Finally, the bill requires a report to the Legislature and  
          sunsets the program on January 1, 2020."


          Background.  The Board regulates 140,000 licensees in the  
          industry.  During the Board's last sunset review in March, 2016,  
          they identified the prescription drug abuse problem as an area  
          of concern.  The Senate Committee on Business, Professions, and  
          Economic Development, staff 2016 Background Paper stated,  
          "Federal data for 2014 showed that abuse of prescription pain  
          killers now ranks second, just behind marijuana, as the nation's  
          most widespread illegal drug problem.  Abuse can stem from the  
          fact that prescription drugs are legal and potentially more  
          easily accessible, as they can be found at home in a medicine  








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          cabinet.  Data shows that individuals who misuse prescription  
          drugs, particularly teens, believe these substances are safer  
          than illicit drugs because they are prescribed by a health care  
          professional and thus are safe to take under any circumstances."

          CURES 2.0.  In recognition of the prescription drug abuse  
          epidemic, the office of the Attorney General launched the  
          Controlled Substance Utilization Review and Evaluation System  
          (CURES).  The board utilizes this prescription drug monitoring  
          program more than any other regulatory board.  Pharmacies are  
          required to report the dispensing of controlled drugs to CURES  
          by drug name, quantity, prescriber, patient, and pharmacy and  
          the Board in turn conducts research and monitoring of this data.

          Legislation in Other States.  Illinois is the first state to  
          pass legislation to launch a pilot program similar to the  
          program proposed by this bill.  House Bill (HB) 3219 creates a  
          pilot project requiring that Schedule II controlled substances  
          containing hydrocodone be dispensed in non-reusable medicine  
          locking closure packages with instructions for patient use, and  
          provides that the pilot program only applies to pharmacies that  
          voluntarily choose to participate.  It provides that the  
          Department of Financial and Professional Regulation shall not  
          expend more than $150,000 on the pilot program.  It exempts  
          prescriptions reimbursed via the Medicare Part D and Medicaid  
          programs from the pilot program and prescriptions for  
          individuals residing in facilities licensed under the Nursing  
          Home Care Act. 

          Prior Related Legislation.  SB 1329 (Simitian), Chapter 709,  
          Statutes of 2012, made a number of changes to the way a surplus  
          prescription drug collection and distribution program could be  
          authorized and the entities eligible to donate medications under  
          such a program.  The bill authorized a county public health  
          officer delegated by a county board of supervisors to implement  
          a program, in addition current law which required a program to  
          be implemented via a county ordinance.  The bill also added  
          several categories of licensed health care facilities that may  
          donate medications and allowed both primary care clinic  








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          pharmacies and primary care clinics that have Board licensees,  
          to administer and dispense medication, provided these Board  
          licensees are in good standing with the Board.

          SB 809 (De Saulnier), Chapter 400, Statutes of 2013, established  
          a funding mechanism to update and maintain CURES while also  
          requiring all prescribing health care practitioners to apply to  
          access CURES information.

          AB 467 (Stone), Chapter 10, Statutes of 2014, established a new  
          Board licensure category for a surplus medication collection and  
          distribution intermediary for the purpose of facilitating the  
          donation of medications to, or transfer of medications between,  
          participating entities under a county's unused medication  
          repository and distribution program. The Board now licenses one  
          intermediary.

          ARGUMENTS IN SUPPORT: 


           GateKeeper Innovation, Inc.  writes, "This bill is inspired by  
          recent legislation passed in Illinois (H.R. 3215). This pilot  
          program will examine whether the increase in safe storage of  
          prescription drugs will in fact reduce the number of abuse cases  
          among children and young adults? Prescription drugs now kill  
          more people than car accidents. According to the Center for  
          Disease Control (CDC), 70% of medications are obtained for  
          illegal use from a friend or relative, and more frequently from  
          their medicine cabinets."


           C.O.R.E. Medical Clinic, Inc.  writes, "Many of our current  
          patients had their first exposure to opioids through a relative  
          or friend's medicine cabinet.  Unfortunately, many individuals  
          switch to using street heroin due to cost or access issues  
          related to opioid prescription pills?We believe your pilot  
          program is a valuable first step in trying to increase safe  
          storage of prescription medications."









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           Capitol Health Network  writes, "Our mission is to support and  
          strengthen the healthcare safety net and to advocate for  
          vulnerable people in Sacramento and the surrounding region?  
          "Increasing the safe storage of prescription drugs is a key  
          prevention measure that will help limit teen and young adult's  
          access to the nonmedical use of prescription drugs."


          POLICY ISSUES: 


          The definition of "medicine locking closure package" as provided  
          in this bill may be too prescriptive. 


          AMENDMENTS:


          In order to ensure this bill would allow the pilot program to  
          accept a variety of medicine locking containers, the author  
          should amend the bill as follows:


          1)  Page 2, in line 16, strike  shall,  and insert:


           may,


           2)  Page 3, in line 22, strike  unlocked only with a  
          user-generated code  , strike lines 23-26 inclusive and insert:


           accessible only by the designated patient with a passcode, an  
          alphanumeric code, a key, or by another secure mechanism.


           REGISTERED SUPPORT:  








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          GateKeeper Innovation, Inc. (sponsor)


          Capitol Health Network


          C.O.R.E. Medical Clinic, Inc.


          REGISTERED OPPOSITION:  


          None on file.




          Analysis Prepared by:Tessa Nevarez / B. & P. / (916) 319-3301,   
          Vincent Chee / B. & P. / (916) 319-3301