BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 364|
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THIRD READING
Bill No: SB 364
Author: Florez (D)
Amended: 5/6/09
Vote: 21
SENATE HEALTH COMMITTEE : 7-4, 4/29/09
AYES: Alquist, Cedillo, DeSaulnier, Leno, Maldonado,
Pavley, Wolk
NOES: Strickland, Aanestad, Cox, Negrete McLeod
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Health facilities: cancer centers
SOURCE : Author
DIGEST : This bill prohibits 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 five years, violated
or been fined for violating federal or state controlled
substances laws or regulations.
ANALYSIS :
Existing law:
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1. Provides for the licensing and regulation of health care
facilities, including general acute care hospitals,
acute psychiatric hospitals, and special hospitals by
the Department of Public Health (DPH).
2. Provides that an application for licensure as a health
care facility may be denied by DPH if the applicant, or
a significant officer, director, or shareholder, if the
applicant is a firm, partnership, corporation or public
entity, has been convicted of a crime, as defined, or
knowingly makes a false statement of fact in an
application for such licensure.
3. Requires DPH to consider several factors concerning an
applicant seeking licensure of a health care facility,
including whether the applicant is of reputable and
responsible character and has the ability to comply with
state and federal licensing laws and regulations, as
specified.
This bill:
1. Prohibits 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 five years, violated or been
fined for violating federal or state controlled
substances laws or regulations.
2. Makes legislative declarations that 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, and that such a hospital should seek to ensure
that its directors and officers do not profit from the
consumption of tobacco products and do not render
services to corporations that have violated federal or
state laws.
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Background
A large variety of entities sell cigarettes and tobacco
products. According to 2005 data collected by the
California Tobacco Survey (CTS) convenience stores and gas
stations accounted for 53 percent of cigarette sales in
California, liquor stores and pharmacies accounted for 17.5
percent, tobacco discount stores accounted for 15 percent,
supermarkets accounted for five percent, and other discount
stores accounted for 4 percent. According to some
estimates, pharmacies account for roughly 4 percent of
tobacco product sales nationwide.
Retailers selling tobacco products have been subject to
numerous efforts to discontinue sales of cigarettes and
tobacco products and to implement tougher measures to guard
against sales to minors. Many large retailers, such as
Target, have voluntarily discontinued sales.
At least two cities, San Francisco and Boston, have enacted
ordinances barring cigarette sales in pharmacies.
In response to suits brought by Attorneys General in 41
states, many retailers, including Walgreens, Walmart, Rite
Aid, and gas stations operated by Exxon, Mobil, ARCO, BP,
and Amoco, have agreed to settlements which call for them
to take additional steps to curtail the sale of tobacco
products to minors. As part of these settlements these
retailers have agreed to:
1. Train employees on state and local laws and company
policies pertaining to tobacco sales to minors,
including explaining health-related reasons for laws
that restrict youth access to tobacco.
2. Check the ID of anyone trying to buy tobacco who appears
to be younger than age 27.
3. Accept only valid government-issued photo identification
as proof of age; and use cash registers programmed to
prompt ID checks on all tobacco sales.
4. Hire independent entities to conduct random compliance
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checks in their stores.
The California Medical Association Foundation has launched
a statewide media campaign to encourage tobacco-free
pharmacies. As part of the campaign, 400 pharmacies
throughout the state will display a "Proud to be Tobacco
Free" decal in their windows. To support these pharmacies,
physicians and other health care providers will use a
corresponding prescription-pad sticker encouraging their
patients to look for the "Proud to be Tobacco Free" window
decal when filling their prescriptions.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/19/09)
California Medical Association
ARGUMENTS IN SUPPORT : The California Medical Association
(CMA) states that due to the serious, inherent health risks
from smoking, CMA physicians have consistently supported
ways to discourage smoking and to restrict minors' access
to tobacco products, to prevent them from becoming
addicted. CMA notes that it has long called for hospitals,
pharmacies, and other establishments where health care
services are delivered to refrain from selling or allowing
the use of tobacco products on their premises, as well as
to divest themselves of entities that profit from tobacco
sales. CMA argues that no health entity should be
affiliated with any person or entity that profits from
tobacco addiction, especially cancer hospitals.
CTW:do 5/19/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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