BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2369|
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THIRD READING
Bill No: AB 2369
Author: Valadao (R)
Amended: 6/14/12 in Senate
Vote: 21
SENATE HEALTH COMMITTEE : 9-0, 6/20/12
AYES: Hernandez, Harman, Alquist, Anderson, Blakeslee, De
Le�n, DeSaulnier, Rubio, Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 60-5, 5/25/12 - See last page for vote
SUBJECT : Prisoners: pharmacy services
SOURCE : Author
DIGEST : This bill requires the pharmacy services program
(pharmacy program) under the Department of Corrections and
Rehabilitation (CDCR) to use less expensive medication as
achieved by the statewide prescription drug bulk purchasing
program, as defined, unless an exception is approved or the
prescriber has indicated "dispense as written" on the
prescription.
ANALYSIS : Existing law:
1.Permits CDCR to maintain and operate a comprehensive
pharmacy program for those facilities under its
jurisdiction that is both cost effective and efficient.
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2.Permits the pharmacy program to incorporate a statewide
Pharmacy and Therapeutics Committee responsible, among
other tasks, for developing and managing a department
formulary and conducting regular therapeutic category
reviews for medication listed in the department
formulary.
3.Permits the pharmacy program to incorporate a requirement
for the use of generic medications, when available,
unless an exception is reviewed and approved in
accordance with an established nonformulary approval
process.
4.Permits the Department of General Services (DGS) to enter
into contracts with manufacturers and suppliers of
single-source or multisource drugs for purposes of a
statewide prescription drug bulk purchasing program.
Requires CDCR, the Department of Mental Health (DMH), and
the Department of Developmental Services (DDS) to
participate in this bulk purchasing program. Permits any
other state or local government entity to elect to
participate in the purchasing program.
5.Permits DGS, in consultation with CDCR, DMH, or DDS, to
investigate and implement other options and strategies to
achieve the greatest savings on prescription drugs with
prescription drug manufacturers and wholesalers.
This bill requires the comprehensive pharmacy program,
operated by CDCR, to use less expensive medications as
achieved by DGS' statewide pharmaceutical bulk purchasing
program, as specified, when those medications are
available, unless an exception is reviewed and approved in
accordance with an established nonformulary approval
process, or unless the prescriber has indicated on the
prescription "dispense as written."
Background
Medical Receivership for CDCR . On June 30, 2005, in a
class-action lawsuit filed four years earlier, the United
States District Court for the Northern District of
California established a Receivership to take control of
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the delivery of medical services to all California state
prisoners confined by CDCR. The court order establishing
the Receivership provides that the Receivership, "shall
cease as soon as the Court is satisfied, and so finds in
consultation with the Receiver, that Defendants have the
will, capacity, and leadership to maintain a system of
providing constitutionally adequate medical health care
services to class members."
The judge in the case issued an order in January 2012
stating that because of the progress to date, "the end of
the Receivership appears to be in sight, and the Court
seeks to get the parties' and the Receiver's views on when
the Receivership should be terminated and how this case
should progress after the Receivership has ended." The
judge ordered that the parties meet and confer on
post-Receivership planning as soon as possible and filed a
joint report on their meet-and-confer on or before April
30, 2012.
On May 30, 2012, in response to the report filed jointly by
the State and the Receiver, the judge issued a new order
outlining a transition plan for transferring authority from
the Receiver to the state. As part of this gradual
transition of authority, the court ordered the Receiver and
the state to identify and secure appropriate revisions or
additions to state law and regulations, as well as to
CDCR's operations manual, that institutionalize changes
made during the Receivership and eliminate the need for any
waivers of state law following the termination of the
Receivership. The Court ordered the parties to consider the
Court's proposal, to file opposition briefs or statements
of non-opposition by June 29, 2012, and to file any reply
briefs no later than July 20, 2012.
Comments
According to the author's office, as management of prison
health care services transitions out of the control of the
federal Receiver and back to the jurisdiction of CDCR, it
is critical that fiscal responsibility is maintained while
upholding quality patient care. Utilizing the less
expensive prescriptions on the formulary is an excellent
way to maintain fiscal responsibility. In addition, AB 2369
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would strengthen the physician's ability to make the
patient care decisions by continuing the current
nonformulary approval process, as well as adding a
provision to allow the physician to "dispense as written"
when prescribing for their patient.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 60-5, 05/25/12
AYES: Achadjian, Alejo, Allen, Block, Blumenfield,
Bradford, Brownley, Buchanan, Butler, Charles Calderon,
Campos, Carter, Chesbro, Conway, Cook, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Hagman,
Halderman, Harkey, Hayashi, Roger Hern�ndez, Huber,
Hueso, Jeffries, Jones, Lara, Logue, Bonnie Lowenthal,
Mansoor, Mendoza, Miller, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, Portantino, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Williams,
Yamada, John A. P�rez
NOES: Ammiano, Beall, Cedillo, Hill, Huffman
NO VOTE RECORDED: Atkins, Bill Berryhill, Bonilla, Davis,
Fletcher, Furutani, Grove, Hall, Knight, Ma, Mitchell,
Perea, V. Manuel P�rez, Silva, Wieckowski
CTW:n 7/2/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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