BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2548
                                                                  Page  1

          Date of Hearing:   May 19, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2548 (Block) - As Introduced:  February 19, 2010 

          Policy Committee:                              Public  
          SafetyVote:  7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          As proposed to be amended, this bill authorizes the Department  
          of Justice (DOJ) to enforce access requirements of its web-based  
          Prescription Drug Monitoring Program (PDMP) by conducting PDMP  
          audits to protect against unauthorized use, such as sharing  
          patient data with third parties, accessing information of  
          patients not under the physician's care, and selling patient  
          data. DOJ may establish by regulation a citation process, which  
          may contain an abatement order and an administrative fine not to  
          exceed $2,500. Specifically, this bill:

          1)Allows, in addition to requesting a hearing, a cited PDMP  
            subscriber to request an informal citation conference with  
            DOJ.   


          2)Requires administrative fines be deposited in a DOJ fund for  
            costs associated with DOJ's controlled substances database,  
            the Controlled Substance Utilization Review and Evaluation  
            System (CURES). 


          3)Provides that a PDMP application by a practitioner or  
            pharmacist may be denied for cause, including, but not limited  
            to:


             a)   Falsifying an application;
             b)   Failure to maintain effective controls for access to the  
               patient activity report; 
             c)   Suspension or revocation of a Drug Enforcement  








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               Administration registration;
             d)   An arrest or conviction for a controlled substance  
               offense or violation of this section; 
             e)   Accessing PDMP information for any reason not related to  
               patient care. 

           FISCAL EFFECT  

          Unknown significant annual GF costs, likely in the hundreds of  
          thousands of dollars, for conducting PDMP audits, developing  
          regulations and holding citation conferences and hearings,  
          offset to some degree by dedicated citation revenue. This  
          assumes a minimum of five position equivalents. 

          While DOJ, the sponsor of this bill, has not provided any  
          analysis of the potential costs, the department acknowledges it  
          is/was hoping to create at least a partial funding source in SB  
          1071 (DeSaulnier), which requires DOJ to determine and impose a  
          per-pill fee on manufacturers and importers of controlled  
          substances. SB 1071 requires the Board of Equalization to  
          administer and collect the fee and deposit the proceeds in a  
          CURES Fund established by SB 1071, which is currently pending  
          hearing by the Senate Health and Revenue and Taxation  
          Committees.
           
          COMMENTS  

           1)Rationale  . The intent of the author and sponsor (DOJ) is to  
            create a process whereby DOJ can protect against improper and  
            unauthorized use of the PDMP. 

           2)CURES and PDMP  . The state's controlled substances dispensary  
            database is known as the Controlled Substance Utilization  
            Review and Evaluation System. According to DOJ, CURES contains  
            over 100 million entries of controlled substance drugs  
            dispensed in California. Each year the CURES program responds  
            to more that 60,000 requests from practitioners and  
            pharmacists via the online PDMP system, which makes it easier  
            for authorized health practitioners to review controlled  
            substance information via the automated Patient Activity  
            Report (PAR) in an effort to identify and deter drug abuse and  
            diversion through accurate and rapid tracking of controlled  
            substances.

            The goal of CURES and PDMP is to reduce pharmaceutical drug  








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            diversion without affecting legitimate medical practice or  
            patient care.  




           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081