BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 149|
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                                   THIRD READING 


          Bill No:  SB 149
          Author:   Stone (R), et al.
          Amended:  5/5/15  
          Vote:     21  

           SENATE HEALTH COMMITTEE:  7-0, 4/22/15
           AYES:  Hernandez, Nguyen, Mitchell, Nielsen, Pan, Roth, Wolk
           NO VOTE RECORDED:  Hall, Monning

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  9-0, 4/27/15
           AYES:  Hill, Bates, Berryhill, Block, Galgiani, Hernandez,  
            Jackson, Mendoza, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Investigational drugs, biological products, or  
                     devices: right to try.  Investigational drugs,  
                     biological products, or devices:  right to try


          SOURCE:    Author


          DIGEST:  This bill enacts the Right to Try Act, and permits a  
          manufacturer of an investigational drug, biological product, or  
          device to make available an investigational drug, biological  
          product, or device to an eligible patient, as defined.


          ANALYSIS:   










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          Existing federal law:

           1) Establishes the federal Food, Drug, and Cosmetic Act, which  
             grants authority to the U.S. Food and Drug Administration  
             (FDA), to oversee the safety of food, drugs, and cosmetics. 

           2) Prohibits any new drug from being introduced into interstate  
             commerce unless an application has been approved by the FDA. 

           3) Provides for the following under regulation: 

              a)    Requires clinical trial sponsors to submit an  
                Investigational New Drug (IND) application to the FDA for  
                clinical investigation of a new drug or new indication of  
                an approved drug, with certain exceptions;


              b)    Requires review and approval from an Institutional  
                Review Board (IRB) before a clinical study can be  
                initiated under an IND; 


              c)    Defines an IRB as an appropriately constituted group  
                that has been designated to review and monitor biomedical  
                research involving human subjects, to ensure that a  
                clinical trial is ethical and that the rights of study  
                participants are protected; and, 


              d)    Authorizes an IRB to approve, require modifications  
                in, or disapprove research, or to suspend or terminate  
                approval of research that is not being conducted in  
                accordance with the IRB's requirements or that has been  
                associated with unexpected serious harm to subjects. 

           4) Establishes the Office for Human Research Protections  
             (OHRP), which provides leadership in the protection of the  
             rights, welfare, and well-being of subjects involved in  
             research conducted or supported by the U.S. Department of  
             Health and Human Services. OHRP helps ensure this by  
             providing clarification and guidance, developing educational  
             programs and materials, maintaining regulatory oversight, and  
             providing advice on ethical and regulatory issues in  
             biomedical and social-behavioral research.







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          Existing state law:

          1)Establishes the Sherman Food, Drug, and Cosmetic Law (Sherman  
            Law), which regulates the packaging, labeling, and advertising  
            of drugs and devices, administered by the Department of Public  
            Health (DPH). 

          2)Prohibits, in the Sherman Law, the sale, delivery, or giving  
            away of a new drug or device unless it is either:

             a)   A new drug or new device for which DPH has approved a  
               new drug or device application, and has not withdrawn,  
               terminated, or suspended that approval; or, 

             b)   A new drug, and a new drug application has been approved  
               for it by the FDA, pursuant to federal law, or it is a new  
               device for which a premarket approval application has been  
               approved, and that approval has not been withdrawn,  
               terminated, or suspended under the FDA. 

          3)Establishes the Protection of Human Subjects in Medical  
            Experimentation Act which prescribes various protections for  
            subjects of medical experimentation relating to a bill of  
            rights; informed consent procedures and documentation; and,  
            the provision of specified disclosures, including the right  
            for a subject to give or withdraw consent freely and without  
            duress. Imposes penalties for violations of these protections.  


          4)Requires health plans and insurers to provide an external,  
            independent review process to examine plan's coverage denials  
            of experimental or investigational therapies for individual  
            enrollees who have a life-threatening or seriously  
            debilitating condition and who meet other specified criteria. 

          5)Requires health plans and insurers to provide coverage for all  
            routine patient care costs relative to the treatment of an  
            enrollee or insured diagnosed with cancer and accepted in an  
            FDA-approved cancer clinical trial, Phase I-IV, if the  
            enrollee's treating physician, recommends participation in the  
            clinical trial after determining such participation has a  
            meaningful potential to benefit the enrollee or insured.








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          This bill:

           1) Enacts the Right to Try Act, and permits a manufacturer of  
             an investigational drug, biological product, or device to  
             make available an investigational drug, biological product,  
             or device to an eligible patient, as defined. Prohibits this  
             bill from requiring a manufacturer make available an  
             investigational drug, biological product, or device to an  
             eligible patient.

           2) Defines "investigational drug, biological product, or  
             device" as a drug, biological product, or device that has  
             successfully completed phase one of a clinical trial approved  
             by the FDA, but has not been approved for general use and  
             remains under investigation in an approved clinical trial.

           3) Defines "eligible patient" as a person who:

              a)    Has a terminal disease as determined by that person's  
                physician and a consulting physician;


              b)    Has no comparable or satisfactory FDA-approved  
                treatment options, as determined by his or her physician,  
                available to diagnose, monitor, or treat the disease or  
                condition involved, and that the probable risk to the  
                person from the investigational drug, biological product,  
                or device is not greater than the probable risk from the  
                disease or condition;


              c)    Has received a prescription or recommendation from his  
                or her physician for an investigational drug, biological  
                product, or device;


              d)    Has given written informed consent for the use of the  
                investigational drug, biological product, or device, or if  
                he or she is a minor or lacks the capacity to provide  
                informed consent, his or her parent, legal guardian, or  
                legally authorized representative has given written  
                informed consent on his or her behalf; and,









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              e)    Has documentation from his or her physician that the  
                patient has met the requirements of this bill.

           4) Defines "terminal disease" means an incurable and  
             irreversible disease that has been medically confirmed and  
             will, according to reasonable medical judgment, result in  
             death within six months of diagnosis.

           5) Permits manufacturers to:

              a)    Provide an investigational drug, biological product,  
                or device to an eligible patient without receiving  
                compensation; 


              b)    Require an eligible patient to pay the costs of or  
                associated with the manufacture of the investigational  
                drug, biological product, or device; and, 


              c)    Require an eligible patient to participate in data  
                collection relating to the use of the investigational  
                drug, biological product, or device.

           6) Specifies that this bill does not require a health plan or  
             any state agency to provide coverage for the cost of any  
             investigational drug, biological product, or device, but  
             permits health plans to provide such coverage. 

           7) Prohibits a state regulatory board from revoking, failing to  
             renew, or taking any other disciplinary action against a  
             physician's license based solely on the physician's  
             recommendation to an eligible patient regarding, or  
             prescription for, or treatment with, an investigational drug,  
             biological product, or device pursuant to this bill.

           8) Prohibits a state agency from taking any action against a  
             health facility's license based solely on the facility's  
             participation in the treatment by or use of an  
             investigational drug, biological product, or device pursuant  
             to this bill.

           9) Makes a violation of this bill not subject to the Sherman  
             Law.







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           10)Specifies that this bill does not create a private cause of  
             action against a manufacturer of an investigational drug,  
             biological product, or device, or against any other person or  
             entity involved in the care of an eligible patient using the  
             investigational drug, biological product, or device, for any  
             harm to the eligible patient resulting from the  
             investigational drug, biological product, or device so long  
             as the manufacturer or other person or entity complies in  
             good faith with the terms of this bill and exercises  
             reasonable care.

           11)Requires a manufacturer that provides an investigational  
             drug, biological product, or device to an eligible patient to  
             report all of the following information to DPH:

              a)    The number of requests made for an investigational  
                drug, biological product, or device. 


              b)    The number of requests that were approved.


              c)    The duration of treatments.


              d)    The success or failure of the investigational drug,  
                biological product, or device in treating the terminal  
                disease with which the eligible patient was diagnosed.


              e)    Any adverse event for each investigational drug,  
                biological product, or device.


              f)    Costs paid by each eligible patient for each  
                investigational drug.


              g)    The consulting physician's diagnosis and prognosis,  
                and verification that the eligible patient is competent,  
                acting voluntarily, and has made an informed decision, or  
                that the consulting physician has determined that the  
                person is not an eligible patient.







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           12)Requires the information collected to be confidential and  
             collected in a manner that protects the privacy of the  
             patient, the patient's family, and any medical provider or  
             pharmacist involved with the patient.
           
           Background

          According to an April 9, 2015 Health Policy Brief on the issue  
          of right-to-try laws in Health Affairs, under current federal  
          regulations, patients with serious or life-threatening illness  
          have two primary options to access experimental therapies that  
          may treat their condition but that have not yet been approved by  
          the FDA: participate as a human subject in a clinical trial or,  
          for patients who cannot be enrolled in that trial (because of  
          their medical status or geographic location, for example), apply  
          to the FDA for access to the experimental drug under the  
          expanded access (also known as compassionate use) program. 

          1)Clinical trials.  According to the Health Affairs brief,  
            clinical testing of an experimental drug is typically a  
            three-phase process. Phase I trials are small (20 to 80  
            patients) and are used primarily to evaluate safety and dosing  
            ranges, usually in healthy volunteers. Phase II trials are  
            larger (typically 100 to 300 patients) and are designed to  
            show early evidence of efficacy in the patients that the drug  
            is intended to treat. Phase III trials may include hundreds or  
            thousands of patients and are used to demonstrate that the  
            drug is effective compared to a control (such as a placebo or  
            a comparator drug). Typically, a manufacturer submits an  
            application to the FDA for marketing approval once a drug has  
            successfully completed Phase III trials.  Any drug company  
            wishing to conduct a clinical trial must first submit an IND  
            application to the FDA, which allows the company to  
            manufacture the drug and ship it across state lines for use in  
            the trial. The drug may be only administered to patients who  
            are formally enrolled in that clinical trial. The study  
            population for that trial may be limited based on any number  
            of factors, including specific diagnosis, age, stage of  
            illness, or comorbidities. 

          2)Expanded access program.  According to the Health Affairs  
            brief, the expanded access program is an attempt at  
            flexibility in the regulatory process and to allow patients  







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            with no other treatment options a chance to try therapies they  
            may not otherwise have access to. The program allows patients  
            who meet certain eligibility requirements to receive an  
            experimental therapy outside of the formal clinical research  
            process. An application for expanded access can be submitted  
            by either the drug manufacturer or a licensed physician. There  
            are three categories of expanded access: treatment, single  
            patient, and intermediate, which are further split into two  
            subcategories. One is "expanded access INDs," through which  
            the manufacturer submits a separate IND for a patient or group  
            of patients, and the other is "expanded access protocols,"  
            whereby the manufacturer amends the protocol under an existing  
            IND to include the patient (or patients) seeking access. Under  
            treatment INDs, a relatively large group of patients (hundreds  
            or thousands) are permitted to access an experimental drug,  
            provided that the sponsor is actively pursuing FDA approval  
            and is in later stages of testing (or has already submitted  
            trial results to the FDA for review). According to an article  
            published in the January 15, 2015 New England Journal of  
            Medicine (NEJM), the FDA has permitted almost all expanded  
            access requests regardless of category. The FDA estimated that  
            by 2006, approximately 100,000 patients had obtained expanded  
            access to experimental drugs. Between 2010 and 2013, the FDA  
            imposed clinical holds on only 2 of the 2,472 individual,  
            non-emergency protocols, on 1 of 66 intermediate-size  
            requests, and on none of the 41 widespread expanded-access  
            protocols it received.

            The Health Affairs brief states that critics of the expanded  
            access program have argued that the application process is  
            unnecessarily burdensome and lengthy (it is estimated that the  
            IND application requires about 100 hours to complete), which  
            discourages doctors and manufacturers from applying. An IRB  
            review adds an additional layer of paperwork and potential  
            delay. These requirements were put in place in response to  
            highly publicized incidents of harm caused by unsafe drugs. In  
            the past decade, there have been several attempts made at the  
            federal and judicial levels to further relax restrictions on  
            the administration of experimental therapies to terminally ill  
            patients. One, led by the Abigail Alliance for Better Access  
            to Developmental Drugs, submitted a Citizen Petition to the  
            FDA in 2003 requesting that it make experimental therapies  
            available to terminally ill patients, provided that the drug  
            had passed Phase I testing. Following several years of  







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            litigation, the DC Court of Appeals ruled against the Abigail  
            Alliance, stating that terminally ill patients have no  
            constitutional right to access experimental therapies. The US  
            Supreme Court subsequently declined to review the case.  
            Several bills have been introduced in the US Congress that aim  
            to relax FDA restrictions on access to experimental therapies.  
            The most recent of these (HR 4475, the Compassionate Freedom  
            of Choice Act of 2014) failed to make it out of committee. 

          3)Other states. Over the past year, the issue of access to  
            experimental therapies has been debated at the state level, in  
            part due to efforts of the Goldwater Institute, a libertarian  
            think tank that appears to be the source of this bill. In  
            February 2014, the Institute released a policy paper that  
            outlines the major critiques of the FDA's expanded access  
            program and proposes model legislation for states to adopt.  
            According to the National Conference of State Legislatures,  
            legislation related to right-to-try have been introduced in 30  
            states.  Arizona, Colorado, Louisiana, Michigan, and Missouri  
            have laws on the subject.

          4)FDA action.  According to an article in the Wall Street  
            Journal published on February 9, 2015, the FDA announced it  
            would "simplify and accelerate" the application process for  
            "unapproved investigational drugs" that have passed Phase I  
            safety trials. It is estimated that the new application form  
            will take 45 minutes to complete, asks attending physicians to  
            fill in eight pieces of patient information, and requires only  
            one attachment.  The FDA issued draft guidance and included a  
            copy of the new form, asking for comment until April 13, 2015.  
             

          5)NEJM article.  The authors of the January 2015 NEJM article  
            mentioned above call right-to-try laws misguided, and call for  
            a more pragmatic approach.  They suggest that states work  
            collaboratively with the FDA to make expanded access more  
            practical when it is appropriate. For example, since the FDA  
            has acknowledged that gaining approval from an IRB can pose a  
            barrier, states could partner with the FDA to fund multicenter  
            IRBs that focus specifically on expanded-access requests. Such  
            multicenter panels would conduct full reviews, but their  
            subject-matter expertise and limited dockets would translate  
            into faster review times. Practical obstacles to enhancing  
            expanded access programs, including administrative burdens and  







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            industry costs, would also be best tackled by the states in  
            partnership with the FDA. For example, a manufacturer's  
            reluctance to provide product because of financial concerns  
            could be addressed by permitting companies to charge amounts  
            closer to the likely post approval cost of drugs. 

          Comments

          Author's statement.  According to the author, for terminal  
          patients who have exhausted their conventional treatment  
          options, obtaining access to potentially life-saving  
          investigational drugs is often extremely difficult. The patient  
          can attempt to enroll in a clinical trial, but many of the  
          sickest individuals do not qualify to join such a trial. For  
          these patients, their only hope for obtaining these potentially  
          life-saving drugs is to request that the FDA grant them expanded  
          access. SB 149, otherwise known as "Right-to-Try", allows a  
          terminally ill patient a last-ditch effort to save their life.   
          This bill allows a patient to try an investigational drug only  
          when certain conditions have been met, while providing important  
          legal protections for all parties involved.  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

           One-time costs of $20,000 and ongoing costs of $10,000 per  
            year to review plan filings by the Department of Insurance  
            (Insurance Fund).

           Increased costs of $380,000 in 2015-16 to respond to requests  
            for information about prior independent medical review  
            decisions and ongoing costs of $210,000 per year to respond to  
            consumer complaints and requests for independent medical  
            review for access to investigational drugs by the Department  
            of Managed Health Care (Managed Care Fund).

           Uncertain impact on state-funded health CalPERS health care  
            coverage (General Fund and special funds). 


          SUPPORT:   (Verified5/28/15)








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          City of Murrieta
          Union of American Physicians & Dentists

          OPPOSITION:   (Verified5/28/15)

          Association of Northern California Oncologists
          California Medical Association
          California Nurses Association


          Prepared by:Melanie Moreno / HEALTH / 
          5/31/15 12:53:01


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