BILL NUMBER: SB 364	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 15, 2009
	AMENDED IN ASSEMBLY  JUNE 23, 2009
	AMENDED IN SENATE  MAY 6, 2009
	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Florez

                        FEBRUARY 25, 2009

   An act to add Section 1285.5 to the Health and Safety Code,
relating to health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 364, as amended, Florez. Health facilities: cancer centers.
   Under existing law, the State Department of Public Health is
responsible for licensing and regulating health facilities, including
general acute care hospitals. Violation of these provisions is a
crime.
   This bill would prohibit an officer, director, or member of a
governing board of a general acute care hospital that is designated
by the National Cancer Institute as a comprehensive cancer center and
that accepts state funds from holding a position as an officer,
director, or member of a governing board of a corporation that either
manufactures or sells tobacco products, as defined, or that has,
within the past 5 years, violated or been fined for violating federal
or state controlled substances laws or regulations, or from holding
a position as an officer, director, member of the board, or similar
position for a biopharmaceutical company that focuses on the
discovery, development, and commercialization of therapeutic products
for specified diseases. By creating a new crime, this 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 no reimbursement is required by this
act for a specified reason.
   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.  The Legislature finds and declares all of the
following:
   (a) Cancer research and treatment ensures the development of cures
for many life-threatening diseases.
   (b) Consumption of tobacco products, particularly by minors, is a
leading cause of cancer.
   (c) California, through the Medi-Cal program, provides several
millions of dollars each year for cancer treatment and research to
general acute care hospitals that are designated by the National
Cancer Institute as comprehensive cancer centers.
   (d) California advocates, as a matter of public policy, reduction
in overall tobacco consumption and prohibits tobacco consumption near
public thoroughfares.
   (e) General acute care hospitals that are designated as
comprehensive cancer centers also take steps to educate the public
about the dangers of tobacco use.
   (f) It is misleading for a general acute care hospital that is
designated as a comprehensive cancer center and that is provided
resources by the state to employ officers and directors who profit
from the sale and distribution of tobacco products.
   (g) A general acute care hospital that is designated as a
comprehensive cancer center and that is provided resources by the
state should seek to ensure that its directors and officers do not
profit from the consumption of tobacco products, do not render
services to corporations that have violated federal or state laws,
and do not engage in work that could affect the hospital's
requirement to provide unbiased research and review of the efficacy
of new drugs or therapeutic products for diseases such as diabetes
and cancer.
  SEC. 2.  Section 1285.5 is added to the Health and Safety Code, to
read:
   1285.5.  An officer, director, or member of a governing board of a
general acute care hospital that is designated by the National
Cancer Institute as a comprehensive cancer center to conduct cancer
research and treatment and that accepts state funds shall not hold a
position as either of the following:
   (a) (1) An officer, director, or member of the board, or a similar
position of a corporation that manufactures or sells tobacco
products.
   (2) For purposes of paragraph (1), "a corporation that
manufactures or sells tobacco products" means a corporation or other
entity that owns or operates any of the following:
   (A) One or more clinics or health facilities licensed pursuant to
this division  that derive revenue from tobacco products  .
   (B) One or more pharmacies licensed pursuant to Chapter 9
(commencing with Section 4000) of Division 2 of the Business and
Professions Code that derive revenue from tobacco products.
   (C) Any entity that derives more than 1 percent of its annual
revenue from tobacco products.
   (b) An officer, director, or member of the board, or a similar
position of a corporation that has, within the past five years,
violated federal or state controlled substances laws or regulations.
   (c) An officer, director, member of the board, or similar position
for a biopharmaceutical company that focuses on the discovery,
development, and commercialization of therapeutic products for
diseases such as diabetes and cancer.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.