BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 619 (Morrell) - Pharmacy: outsourcing facilities: licensure ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 6, 2015 |Policy Vote: B., P. & E.D. 8 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 11, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 619 would require outsourcing facilities to be licensed by the Board of Pharmacy. Fiscal Impact: One-time costs of $177,000 for licensing and inspection activities and computer system upgrades and ongoing costs of $126,000 per year for licensing and inspections (Pharmacy Board Contingent Fund). Background: Under current law, the Board of Pharmacy licenses pharmacists as well as pharmacies, compounding pharmacies, wholesalers, dispensaries, and related facilities. Current law requires out-of-state pharmacies that sell prescription drugs in the SB 619 (Morrell) Page 1 of ? state to be licensed by the Board. Federal law has created a new category relating to prescription drugs known as outsourcing facilities. Outsourcing facilities are sterile facilities that compound prescription drugs in large quantities, not for individual patients. (In contrast to compounding pharmacies, which compound drugs to fill specific prescriptions.) Proposed Law: SB 619 would require outsourcing facilities to be licensed by the Board of Pharmacy. Specific provisions of the bill would: Require an outsourcing facility to be licensed by the Board of Pharmacy if it compounds medication, without a patient-specific prescription, for patients or practitioners inside or outside California; Specify the activities that an outsourcing facility can and cannot perform; Apply the licensing requirement to out-of-state outsourcing facilities that ship compounded prescription drugs into the state; Require the Board to report to the Legislature by January 1, 2018 on its licensing and regulatory efforts; Authorize the Board to issue a cease and desist order to an outsourcing facility if the Board determines that there is an immediate threat to public health; Specify the fees for issuance or renewal of a license for an outsourcing facility, including a requirement that an out-of-state outsourcing facility must also provide reasonable funding to cover the costs for out-of-state inspections. Related Legislation: SB 600 (Lieu, Statutes of 2014) made changes to state law to conform to changes to federal law in the area of pharmacy. SB 619 (Morrell) Page 2 of ? AB 2605 (Bonilla, Statutes of 2014) requires third party logistics providers to be licensed by the Board of Pharmacy. SB 294 (Emmerson, Statutes of 2013) requires an inspection by the Board of Pharmacy before licensing compounding pharmacies, including out-of-state facilities. Staff Comments: As noted above, recent federal law created a new category of facility relating to the distribution of prescription drugs. This bill requires licensure by outsourcing facilities by the Board of Pharmacy with requirements similar to those imposed on compounding pharmacies. -- END --