BILL NUMBER: AB 718	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2009
	AMENDED IN SENATE  MAY 27, 2009
	AMENDED IN ASSEMBLY  APRIL 22, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Emmerson

                        FEBRUARY 26, 2009

   An act to add and repeal Section 4071.2 of the Business and
Professions Code, relating to healing arts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 718, as amended, Emmerson.  Inland Empire Health Plan
E-Prescribing Pilot Program.
   The Pharmacy Law regulates, among other matters, the dispensing by
prescription of dangerous devices and dangerous drugs, which include
controlled substances. Existing law authorizes the electronic
transmission of prescriptions under specified circumstances.
   This bill would, until January 1, 2013, create the Inland Empire
Health Plan E-Prescribing Pilot Program and would require the program
to promote health care quality and the exchange of health care
information and to include specified components  , including
electronic prescribing, as defined  . The bill would require the
Inland Empire Health Plan, a joint powers agency, to select  ,
through a competitive bid process,  an entity with specified
certification  and at least 5 years of e-prescribing
experience under another state's Medicaid program  to
administer the program and would require this entity to submit a
report to the Legislature, by January 1, 2012, regarding the 
goals and  results of the program and whether the program should
be extended  , as specified  . By imposing a new
requirement on a joint powers agency, the bill would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 4071.2 is added to the Business and Professions
Code, to read:
   4071.2.  (a) The Inland Empire Health Plan E-Prescribing Pilot
Program is hereby created. For purposes of this section, "program"
means the Inland Empire Health Plan E-Prescribing Pilot Program.
   (b) The program shall be administered by an entity  ,
selected by the Inland Empire Health Plan,  with
certification from the Certification Commission for Healthcare
Information  Technology and a minimum of five years of
e-prescribing experience under another state's Medicaid program.
  Technology. This entity shall be  selected by
the Inland Empire Health Plan through a competitive bid process.

   (c) The program shall promote health care quality and the exchange
of health care information consistent with applicable  law
and   law, including, but not limited to, applicable
state and federal confidentiality and data security requirements and
applicable state record retention and reporting requirements. The
program  shall include all of the following components:
   (1) Integrated clinical decision support alerts for allergies,
drug-drug interactions, duplications in therapy, and elderly alerts.
   (2) Current payer formulary information.
   (3) Appropriate alternatives, when needed, to support
cost-effective prescribing at the point of care.
   (4) Drug compendia approved by the Centers for Medicare and
Medicaid Services.
   (5) Electronic  transmission of prescriptions 
 prescribing  consistent with applicable state and federal
law. 
   (6) Patient drug history.  
   (d) Electronic prescribing pursuant to the program shall not
interfere with a patient's existing freedom to choose a pharmacy and
shall not interfere with the prescribing decision at the point of
care.  
   (d) 
    (e)  The entity administering the program shall, on or
before January 1, 2012, submit a report to the Legislature on the
 goals and  results of the program and whether the program
should be extended.  This report shall include quantifiable data
on all of the following:  
   (1) The number of prescribers enrolled in the program who use
electronic prescribing.  
   (2) The number of pharmacies participating in the program. 

   (3) The number and percentage of prescriptions sent electronically
as a percentage of the overall number of prescriptions reimbursed by
the plan.  
   (4) Expenditures on the program.  
   (5) Data on whether and to what extent the program achieved the
following goals:  
   (A) Reduced medication errors.  
   (B) Reduced prescription fraud.  
   (C) Reduced health care costs, including, but not limited to,
inpatient hospitalization, by reducing medication errors, increasing
patient medication compliance, and identifying medication
contraindications.  
   (e) 
    (f)   Notwithstanding Section 4321, a violation of this
section shall not be a crime. 
   (g) For purposes of this section, notwithstanding subdivision (c)
of Section 4040, "electronic prescribing" means a prescription or
prescription-related information transmitted between the point of
care and the pharmacy using electronic media.  
   (f) 
    (h)  This section shall remain in effect only until
January 1, 2013, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2013, deletes or
extends that date.
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.