BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1481|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1481
          Author:   Negrete McLeod (D)
          Amended:  8/20/12
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEV.COMM.  :  8-0, 4/9/12
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Strickland, Wyland
          NO VOTE RECORDED:  Vargas

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

          SENATE FLOOR  :  36-0, 5/3/12
          AYES:  Alquist, Berryhill, Blakeslee, Calderon, Cannella, 
            Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson, 
            Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, 
            Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete 
            McLeod, Pavley, Price, Rubio, Steinberg, Strickland, 
            Vargas, Walters, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Anderson, Padilla, Runner, Simitian

           ASSEMBLY FLOOR  :  Not available


           SUBJECT :    Clinical laboratories:  community pharmacies

           SOURCE  :     California Pharmacists Association


           DIGEST  :    This bill allows pharmacists to perform specific 
          Clinical Laboratory Improvement Amendments (CLIA) waived 
          tests without the supervision of a laboratory director.
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           Assembly Amendments  (1) require the pharmacy notify the 
          public health officer of the county in which the pharmacy 
          is located that the pharmacy is performing those tests; (2) 
          require the test be approved by the federal Food and Drug 
          Administration (FDA) for sale to the public without a 
          prescription in the form of an over-the-counter test kit; 
          (3) require the test be performed by a pharmacist at a 
          community pharmacy upon customer request; (4) require the 
          pharmacy receive  registration from the Department of 
          Public Health (DPH) pursuant to existing law; (5) specify 
          the registration issued to the community pharmacy be valid 
          for two years; and (6) add double-jointing language with AB 
          761 (Hernandez).

           ANALYSIS :    

          Existing State Law:

          1. Provides for the licensure and regulation of clinical 
             laboratories and personnel by the DPH.  (Division 2, 
             Chapter 3, Articles 4-7, Section 1260 et seq. of the 
             Business and Professions Code (BPC); California Code of 
             Regulations (CCR) Title 17, Division 1, Chapter 2.  
             Often referred to as the "CLIA Law.") 

          2. The Pharmacy Law provides for the licensure and 
             regulation of pharmacists by the California Board of 
             Pharmacy.  (BPC Section 4000)

          3. Authorizes a pharmacist to perform skin puncture in the 
             course of performing CLIA-waived tests while under the 
             supervision of a laboratory director who is a licensed 
             physician.  (BPC Section 1206.5, 1209)

          4. Classifies licensed laboratories as those that perform 
             examinations classified as moderate to high complexity 
             under CLIA and classified registered laboratories as 
             those that perform only CLIA-waived tests.  (BPC Section 
             1265(a)(1))

          5. Requires all laboratories to include on the application 
             for licensure or registration, the name and location of 
             the laboratory, the name of the laboratory director(s), 

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             a list of the laboratory tests performed by the 
             laboratory, and the total number of tests performed 
             annually.  (BPC Section 1265(b))

          Existing Federal Law: 

          1. Governs the surveys and inspections of non-accredited 
             clinical laboratories.  (Federal Social Security Act 
             Section 1864 and Federal Regulations (FR) Title 42 
             commencing with Section 493.1)

          2. Governs municipal and county laboratories and their 
             compliance with CLIA.  (California Health and Safety 
             Code Division 101, Part 3, Chapter 2, Article 5 Section 
             101160 - 101165)

          This bill:

          1. Provides that statutes requiring CLIA waived tests to be 
             performed under the operation and administration of a 
             laboratory director, as specified, do not apply to a 
             pharmacist at a community pharmacy who, upon customer 
             request, performs only blood glucose, hemoglobin A1c 
             (blood sugar), or cholesterol tests classified as waived 
             under CLIA and are approved by the federal FDA for sale 
             to the public without a prescription in the form of an 
             over-the-counter test kit, provided that all of the 
             following requirements are satisfied: 

             A.    The pharmacy obtains a valid CLIA certificate of 
                waiver and complies with all other requirements for 
                the performance of waived clinical laboratory tests 
                under applicable federal regulations.  For purposes 
                of CLIA, the person identified as responsible for 
                directing and supervising testing oversight and 
                decision-making shall be the pharmacist-in-charge, as 
                specified; 

             B.    The pharmacy obtains a registration from the DPH 
                pursuant to existing law, as specified; and, 

             C.    The tests are performed only by a pharmacist, as 
                defined under the Pharmacy Law, in the course of 
                performing routine patient assessment procedures in 

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                compliance with their scope of practice as specified 
                under the Pharmacy Law. 

          2. Makes conforming and technical changes.

           Background  
           
           Federal CLIA of 1988  .  CLIA law specified that laboratory 
          requirements be based on the complexity of the test 
          performed.  It also established provisions for categorizing 
          a test as waived.  Tests may be waived from regulatory 
          oversight if they meet certain requirements established by 
          the statute.  On February 28, 1992, regulations were 
          published to implement CLIA. 

           Federal Definition of CLIA Waived Tests  .  According to FR 
          493.15, CLIA-waived tests are test systems that are simple 
          laboratory examinations and procedures which are cleared by 
          FDA for home use, employ methodologies that are so simple 
          and accurate as to render the likelihood of erroneous 
          results negligible, or pose no reasonable risk of harm to 
          the patient if the test is performed incorrectly.

           Federal Oversight of the CLIA Program  .  Center for Medicare 
          and Medicaid Services (CMS) regulates all laboratory 
          testing (except research) performed on humans in the United 
          States through the CLIA.  In total, CLIA covers 
          approximately 175,000 laboratory entities.  The Division of 
          Laboratory Services, within the Survey and Certification 
          Group, under the CMS has the responsibility for 
          implementing the CLIA Program. 

           Federal Certificate of Waiver  .  Under federal CLIA law, a 
          "Certificate of Waiver" is defined as a certificate issued 
          or reissued to a laboratory.  The primary obligation of the 
          holder of a Certificate of Waiver is to ensure that the 
          manufacturer's directions for giving the test are followed. 
           (FR 493.2(5))

          A laboratory may qualify for a Certificate of Waiver if it 
          restricts the tests that it performs to certain tests or 
          examinations such as dipstick tests, ovulation tests, urine 
          pregnancy tests and blood glucose monitoring by FDA devices 
          approved for home use (Public Health Service Act Section 

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          353). 
           
          Additionally qualifications include: 

          1. Minimal scientific and technical knowledge is required 
             to perform the tests.

          2. The knowledge required to perform the tests may be 
             obtained through on-the-job instruction.

          3. The individual who administers the test must follow the 
             manufacturer's instructions.  (FR 493.17 1(i)(A)(B))

           California Clinical Laboratory Personnel Requirements  .  All 
          persons performing, supervising, consulting on, or 
          directing clinical laboratory tests or examinations in 
          California must meet the requirements outlined in the BPC 
          irrespective of whether the clinical laboratory is operated 
          under a CLIA certificate or under a state license or 
          registration.  (CCR Title 17 Section 1039.2 (a))

          Additionally, California law authorizes pharmacists to 
          perform CLIA-waived tests under the supervision of a 
          laboratory director who is a licensed physician.  (BPC 
          Section 4052.1)

           California Oversight of the CLIA Program .  The California 
          Laboratory Field Services (LFS) ensures compliance with 
          state and federal clinical laboratory laws and regulations 
          by performing biannual onsite inspections of laboratories 
          to ensure accuracy and reliability of laboratory test 
          results.  LFS performs routine inspections of over 800 
          laboratories each year.  The program is also responsible 
          for inspection of over 200 laboratories with a CLIA 
          Certificate of Waiver.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  8/28/12)

          California Pharmacists Association (source) 
          California Chronic Care Coalition
          California Retailers Association

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          California Society of Health System Pharmacists
          Congress of California Seniors
          National Association of Chain Drug Stores
          Pharmacy Choice and Access Now
          Remedy Pharm
          Rite Aid Pharmacy

           OPPOSITION  :    (Verified  8/28/12)

          California Association for Medical Laboratory Technology 
          California Association of Bioanalysts
          Engineers and Scientists of California

           ARGUMENTS IN SUPPORT  :    The author's office indicates that 
          the intention of this bill is to remove burdensome state 
          government regulations in order to allow pharmacists to 
          perform CLIA-waived tests, including glucose meters, 
          cholesterol tests and dip stick style tests to monitor 
          diabetes or kidney function.  These tests are approved by 
          the federal FDA for sale to the public without a 
          prescription in the form of an over-the-counter kit.

          Under state regulations, facilities are required to hire a 
          laboratory director, who is a licensed physician, to 
          oversee the administration of these tests.  However, under 
          federal regulations, facilities that only perform 
          CLIA-waived tests are not required to have a laboratory 
          director who is a licensed physician.

          According to the author's office, securing a lab director 
          is an expensive task that precludes many pharmacies from 
          being able to register with the DPH.  Furthermore, the 
          author states that this bill allows pharmacists to utilize 
          over-the-counter tests, thereby allowing pharmacists to 
          make appropriate adjustments to medication therapy in order 
          to improve adherence and overall treatment.  The author's 
          office also states that this bill will result in both 
          insured and uninsured patients having easier access to 
          safe, simple and economic tests.

           ARGUMENTS IN OPPOSITION  :    The California Association for 
          Medical Laboratory Technology opposes this bill citing that 
          by allowing unqualified pharmacists to perform laboratory 
          tests, it will place these individuals outside of the 

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          state's oversight, and effectively weaken the state's 
          licensure standards.  They also assert that pharmacists are 
          not medical doctors that prescribe, treat or diagnose and 
          lack the proper education, training and credentials which 
          increases the possibility of testing errors and 
          misdiagnosis.  
           

          JJA:k  8/28/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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