BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1193 (Hill) - Pharmacy: outsourcing facilities ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 13, 2016 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 2, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1193 would extend the statutory sunset on the Board of Pharmacy to January 1, 2021. The bill would also make several changes to the authority and practice of the Board. Fiscal Impact: Ongoing costs of $20 million per year for the continued operation of the Board of Pharmacy (Pharmacy Board Contingent Fund). The Board's operations are fully supported by licensing fees. One-time costs of $335,000 and ongoing costs of $320,000 per year for licensing and inspection activities relating to outsourcing facilities (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 SB 1193 (Hill) Page 1 of ? out-of-state pharmacies that sell prescription drugs in the state to be licensed by the Board. The Board has a statutory sunset of January 1, 2017. Federal law has created a new category of pharmacy 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.) Current California law does not have a license category specific to outsourcing facilities. Proposed Law: SB 1193 would extend the statutory sunset on the Board of Pharmacy to January 1, 2021. Specific provisions of the bill would: Extend the operation of the Board and the authority to employ an executive officer to January 1, 2021; Require outsourcing facilities to be licensed by the Board (whether or not they are located in California) and impose specified regulatory requirements on outsourcing facilities; Establish a $780 licensing fee for outsourcing facilities; Require a pharmacy using an automated drug delivery system to register its use with the Board; Require the Board to issue a license to a clinic (or incorporate any changes to a license) within 30 days; Authorize the Board to issue a cease and desist letter to an entity practicing activities without a license that require licensure; Authorize pharmacists to establish professional corporations. Related Legislation: SB 619 (Morrell) would have required outsourcing facilities to be licensed by the Board of Pharmacy. That bill was held on this committee's Suspense File. -- END -- SB 1193 (Hill) Page 2 of ?