BILL ANALYSIS                                                                                                                                                                                                    Ó







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              A
                             2013-2014 Regular Session               B

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          AB 2603 (V. Manuel Pérez)                                  3
          As Amended May 23, 2014 
          Hearing date:  June 24, 2014
          Health and Safety Code
          JM:mc

                     LAWFUL POSSESSION OF A CONTROLLED SUBSTANCE:

                 POSSESSION FOR DELIVERY TO THE PRESCRIPTION HOLDER  


                                       HISTORY

          Source:  California Attorneys for Criminal Justice

          Prior Legislation: AB 721 (Bradford) - Ch. 504, Stats. 2013

          Support: Long Term Care Justice and Advocacy; California Senior  
                   Legislature; Congress of California Seniors; Drug  
                   Policy Alliance; Legal Services for Prisoners with  
                   Children; California Public Defenders Association

          Opposition:None known

          Assembly Floor Vote:  Ayes 79 - Noes 0



                                        KEY ISSUES
           
          SHOULD RELEVANT LAW SPECIFY THAT A PERSON MAY POSSESS A CONTROLLED  
          SUBSTANCE WITH THE AUTHORITY OF THE PATIENT FOR WHOM THE  
          PRESCRIPTION WAS ISSUED AND FOR THE PURPOSE OF DELIVERING THE  




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                                                  AB 2603 (V. Manuel Pérez)
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          CONTROLLED SUBSTANCE TO THE PATIENT?

          SHOULD THE LAW SPECIFY THAT A PERSON MAY POSSESS A PRESCRIPTION  
          CONTROLLED SUBSTANCE FOR THE PURPOSE OF DISPOSAL?


                                       PURPOSE

          The purpose of this bill is to provide that it is lawful for a  
          person to possess a prescription controlled substance with the  
          authority of the person for whom the prescription was issued and  
          for the purpose or intent of delivering the prescription to him  
          or her within a reasonable period of time, and that is lawful to  
          possess a prescription solely for the purpose of authorized  
          disposal. 

           Existing law  classifies controlled substances in five schedules  
          according to their danger and potential for abuse.  Schedule I  
          controlled substances have the greatest restrictions and  
          penalties, including prohibiting the prescribing of a Schedule I  
          controlled substance.  (Health & Saf. Code, §§ 11054 to 11058.)

           Existing law  makes it a crime to possess specified controlled  
          substances without a valid prescription from a licensed  
          physician, dentist, podiatrist, or veterinarian.  (Health & Saf.  
          Code, §§ 11350 and 11377.)

           Existing law  makes it a crime to transport for sale specified  
          controlled substances unless upon the written prescription of a  
          licensed physician, dentist, podiatrist, or veterinarian.   
          (Health & Saf.  Code, §§ 11352 and 11379.)

           Existing law  defines "prescription" for purposes of the  
          Controlled Substances Act (CSA), as "an oral order or electronic  
          transmission prescription for a controlled substance given  
          individually for the person(s) for whom prescribed, directly  
          from the prescriber to the furnisher or indirectly by means of a  
          written order of the prescriber."  (Health & Saf. Code, § 11027,  
          subd. (a).)





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                                                  AB 2603 (V. Manuel Pérez)
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           Existing law  defines "ultimate user" for purposes of the CSA, as  
          "a person who lawfully possesses a controlled substance for his  
          own use or for the use of a member of his household or for  
          administering to an animal owned by him or by a member of his  
          household."  (Health & Saf. Code, § 11030.)

           Existing law  defines "agent" for purposes of the CSA, as "an  
          authorized person who acts on behalf of or at the direction of a  
          manufacturer, distributor, or dispenser.  It does not include a  
          common or contract carrier, public warehouseman, or employee of  
          the carrier or warehouseman."  (Health & Saf. Code, § 11003.)

           Existing law  provides that a dangerous drug sold or delivered to  
          a person within California shall be transferred, sold or  
          delivered only to:

                 An entity licensed by the Pharmacy Board; 
                 A manufacturer; 
                 An ultimate user; or 
                 The ultimate user's agent.  (Bus. & Prof. Code, §  
               4059.5, subd. (b).)

           Existing law  states that no person shall possess any controlled  
          substance, except that furnished to a person upon the  
          prescription of a physician, dentist, podiatrist, veterinarian,  
          or other specified persons in the medical field.  (Bus. & Prof.  
          Code, § 4060.)

           Existing law  states that no prescription for a controlled  
          substance shall be furnished to any person unknown and unable to  
          properly establish his or her identity.  (Bus. & Prof. Code, 
          § 4075.)

           Existing law  allows the Pharmacy Board to establish procedures  
          to prevent unauthorized persons from receiving prescription  
          drugs furnished to a patient or a representative of the patient.  
           (Bus. & Prof. Code, § 4075.)

           This bill  provides that it is not unlawful for a person other  
          than the prescription holder to possess a prescribed controlled  




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                                                  AB 2603 (V. Manuel Pérez)
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          substance under the following circumstances:

                 The possession of the prescribed controlled substance is  
               at the direction or with the express authorization of the  
               prescription holder; and
                 The person intends to deliver the prescription within a  
               reasonable amount of time or intends to discard the  
               controlled substance in an authorized manner.  


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          For the last several years, severe overcrowding in California's  
          prisons has been the focus of evolving and expensive litigation  
          relating to conditions of confinement.  On May 23, 2011, the  
          United States Supreme Court ordered California to reduce its  
          prison population to 137.5 percent of design capacity within two  
          years from the date of its ruling, subject to the right of the  
          state to seek modifications in appropriate circumstances.   

          Beginning in early 2007, Senate leadership initiated a policy to  
          hold legislative proposals which could further aggravate the  
          prison overcrowding crisis through new or expanded felony  
          prosecutions.  Under the resulting policy, known as "ROCA"  
          (which stands for "Receivership/ Overcrowding Crisis  
          Aggravation"), the Committee held measures that created a new  
          felony, expanded the scope or penalty of an existing felony, or  
          otherwise increased the application of a felony in a manner  
          which could exacerbate the prison overcrowding crisis.  Under  
          these principles, ROCA was applied as a content-neutral,  
          provisional measure necessary to ensure that the Legislature did  
          not erode progress towards reducing prison overcrowding by  
          passing legislation, which would increase the prison population.  
            

          In January of 2013, just over a year after the enactment of the  
          historic Public Safety Realignment Act of 2011, the State of  
          California filed court documents seeking to vacate or modify the  
          federal court order requiring the state to reduce its prison  
          population to 137.5 percent of design capacity.  The State  




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                                                  AB 2603 (V. Manuel Pérez)
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          submitted that the, ". . .  population in the State's 33 prisons  
          has been reduced by over 24,000 inmates since October 2011 when  
          public safety realignment went into effect, by more than 36,000  
          inmates compared to the 2008 population . . . , and by nearly  
          42,000 inmates since 2006 . . . ."  Plaintiffs opposed the  
          state's motion, arguing that, "California prisons, which  
          currently average 150% of capacity, and reach as high as 185% of  
          capacity at one prison, continue to deliver health care that is  
          constitutionally deficient."  In an order dated January 29,  
          2013, the federal court granted the state a six-month extension  
          to achieve the 137.5 % inmate population cap by December 31,  
          2013.  

          The Three-Judge Court then ordered, on April 11, 2013, the state  
          of California to "immediately take all steps necessary to comply  
          with this Court's . . . Order . . . requiring defendants to  
          reduce overall prison population to 137.5% design capacity by  
          December 31, 2013."  On September 16, 2013, the State asked the  
          Court to extend that deadline to December 31, 2016.  In  
          response, the Court extended the deadline first to January 27,  
          2014 and then February 24, 2014, and ordered the parties to  
          enter into a meet-and-confer process to "explore how defendants  
          can comply with this Court's June 20, 2013 Order, including  
          means and dates by which such compliance can be expedited or  
          accomplished and how this Court can ensure a durable solution to  
          the prison crowding problem."

          The parties were not able to reach an agreement during the  
          meet-and-confer process.  As a result, the Court ordered  
          briefing on the State's requested extension and, on February 10,  
          2014, issued an order extending the deadline to reduce the  
          in-state adult institution population to 137.5% design capacity  
          to February 28, 2016.  The order requires the state to meet the  
          following interim and final population reduction benchmarks:

                 143% of design bed capacity by June 30, 2014;
                 141.5% of design bed capacity by February 28, 2015; and
                 137.5% of design bed capacity by February 28, 2016. 

          If a benchmark is missed the Compliance Officer (a position  




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                                                  AB 2603 (V. Manuel Pérez)
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          created by the February 10, 2016 order) can order the release of  
          inmates to bring the State into compliance with that benchmark.   


          In a status report to the Court dated May 15, 2014, the state  
          reported that as of May 14, 2014, 116,428 inmates were housed in  
          the State's 34 adult institutions, which amounts to 140.8% of  
          design bed capacity, and 8,650 inmates were housed in  
          out-of-state facilities.   

          The ongoing prison overcrowding litigation indicates that prison  
          capacity and related issues concerning conditions of confinement  
          remain unresolved.  While real gains in reducing the prison  
          population have been made, even greater reductions may be  
          required to meet the orders of the federal court.  Therefore,  
          the Committee's consideration of ROCA bills -bills that may  
          impact the prison population - will be informed by the following  
          questions:

                 Whether a measure erodes realignment and impacts the  
               prison population;
                 Whether a measure addresses a crime which is directly  
               dangerous to the physical safety of others for which there  
               is no other reasonably appropriate sanction; 
                 Whether a bill corrects a constitutional infirmity or  
               legislative drafting error; 
                 Whether a measure proposes penalties which are  
               proportionate, and cannot be achieved through any other  
               reasonably appropriate remedy; and,
                 Whether a bill addresses a major area of public safety  
               or criminal activity for which there is no other  
               reasonable, appropriate remedy.


                                      COMMENTS

          1.  Need for this Bill  

          According to the author:





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                                                  AB 2603 (V. Manuel Pérez)
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               Relevant provisions in the Business and Professions  
               Code regulating pharmacies allow a prescription  
               holder's "agent" or "representative" to pick up the  
               prescription and deliver it to the prescription  
               holder.  This agent is usually, and very often, a  
               family member.  This is especially likely where the  
               prescription holder is too sick or frail to go the  
               pharmacy.  The Board of Pharmacy also may promulgate  
               regulations "to prevent unauthorized persons from  
               receiving drugs furnished to a patient or  
               representative of the patient."  (Bus. & Prof. Code  
               §4075.)  This appears to establish a clear legislative  
               intent that a representative or agent of a patient -  
               such as a family member or friend - may pick up a  
               prescription and deliver it to the patient.

               However, the Health and Safety Code provisions on  
               controlled substances appear to criminalize possession  
               of a controlled substance by any person other than the  
               holder of the prescription.  The controlled substance  
               statutes do not include an exception or privilege for  
               possession for the sole purpose of delivering a drug  
               to the holder of a valid prescription.  A recent  
               decision of the Court of Appeal - that has  been  
               depublished by order of the Supreme Court -  
               essentially held that the Health and Safety Code  
               controlled substance statutes trump the Business and  
               Professions Code provisions that authorize an agent or  
               representative of a patient to deliver a prescription  
               to the holder of the prescription.  While the  
               appellate case no longer is valid law, it still  
               illustrates a problematic conflict in the law.  

               AB 2603 addresses the conflict or inconsistency  
               between the Business and Professions Code and the  
               Health and Safety Code.  AB 2603 clarifies and  
               establishes the prescription defense in the Health and  
               Safety Code.  This bill will clarify that a family  
               member or friend will not inadvertently violate the  
               law by picking up and delivering a prescription to the  




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                                                  AB 2603 (V. Manuel Pérez)
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               prescription holder.  This is especially important to  
               ensure that the ill, elderly and residents of remote  
               areas can obtain the medications they need.  


          2.  Impetus for this Bill - No Privilege or Authority for a Third  
            Party to Possess a Prescription Controlled Substance to  
            Deliver it to the Prescription Holder  

          In People v. Carboni (2014) - formerly at 222 Cal.App.4th 834 -  
          the Third District Court of Appeal held that the prescription  
          defense does not apply to third-persons for whom the  
          prescription was not written.  The California Supreme Court  
          denied review of the decision and ordered that opinion not be  
          published.  As such, the decision has no precedential value and  
          cannot be cited to establish a point of law.  Nevertheless, the  
          case illustrates the issues presented by this bill.

          Following a traffic stop, Carboni was found in possession of 200  
          pills in a prescription bottle with a scratched-off label.  He  
          did not have a prescription for the pills which were morphine,  
          hydrocodone, and valium.  He was charged with possession and  
          transportation of controlled substances.  (Health & Saf. Code,  
          §§ 11350, 11352, 11377 and 11379)<1>.  At trial, the defense  
          presented evidence that Carboni had been helping an ill friend  
          move.  Multiple witnesses testified that the pills belonged to  
          Carboni's friend and that he had valid prescriptions for them.   
          (Id. at pp.836-840.)  The trial court refused to instruct on the  
          prescription defense, which provides that a person is not guilty  
          of possessing or transporting a controlled substance if he or  
          she has a valid written prescription for that substance by a  
          licensed physician.  (Id. at p. 841.)  Appellant was convicted  
          and appealed, alleging the trial court erred in failing to  
          instruct the jury on the application of the prescription  
          defense.  (Id. at p. 842.)

          The appellate court reviewed the language of the relevant Health  
          ---------------------------
          <1> AB 721 (Bradford) Ch. 504, Stats. 2013 would provide a  
          defense to the transportation charge.  AB 721 specifies that  
          "transportation" means transportation for sale.  



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          and Safety Code sections, each of which contained the words,  
          "unless upon the written prescription of a physician."  (People  
          v. Carboni, supra, 222 Cal.App.4th at p. 842.)  Applying the  
          rules of statutory construction, the court found that this  
          language clearly and unambiguously limits the prescription  
          defense to the person for whom the prescription was written.   
          (Ibid.)  The court stated it is not enough that the prescription  
          drugs be issued under a valid prescription and subsequently  
          possessed or transported by another with an innocent reason for  
          doing so.  (Ibid.)  To allow the prescription defense to apply  
          to someone other than the person for whom the prescription is  
          written would rewrite the statutory requirements of the criminal  
          offenses at issue.  (Id. at p. 843.)

          The court acknowledged that its holding creates a legal  
          conundrum by not allowing the person who merely picks up a  
          relative's prescription at the pharmacy, fully intending to  
          deliver it to the prescription-holder, to assert the defense.   
          Nevertheless the court declined to expand the scope of the  
          prescription defense, stating it is for the Legislature, not the  
          court, to do so.  (People v. Carboni, supra, 222 Cal.App.4th at  
          p. 844.)

          The dissenting justice disagreed, noting that another rule of  
          statutory construction teaches "that the language of a statute  
          should not be given a literal meaning if doing so would result  
          in absurd consequences."  (People v. Carboni, supra, 222  
          Cal.App.4th at p. 849.)  The dissent noted that,
















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          "Under the majority's construction, common life experiences  
          would be criminalized, such as the act of a person picking up a  
          prescription from the pharmacy for an ill spouse.? Baby boomer  
          adults would be prevented from obtaining their parents'  
          medications from the pharmacy, transporting those medications,  
          and otherwise possessing those medications for the benefit of  
          their parents.  Friends, neighbors and others who might also  
          assist a patient would face the same prohibition."  (Id. at p.  
          850.)

          The dissent also noted that the controlled substance statutes  
          define the "ultimate user" of a controlled substance more  
          broadly than the prescription holder, including both the person  
          who lawfully possesses the drug for his or her own use, or for  
          the use of a household member. (People v. Carboni, supra, 222  
          Cal.App.4th at p. 851.)  Further, the Business and Professions  
          Code related to pharmacy law, contemplates that a pharmacist can  
          dispense prescription medication not only to the patient, but  
          also to the patient's agent or representative.  (Id. at pp.  
          851-852.)  For these reasons, the scope of the prescription  
          defense should include application to a patient's agent who  
          possesses or transports drugs for the patient's benefit.  (Id.  
          at pp. 857-858.)

          This bill clarifies that a patient's representative may possess  
          or transport prescription medications for a patient without  
          facing criminal prosecution.

          3.  Issue of the Length of Time the Defendant Held a Controlled  
            Substance Prescribed to Another Person  

          The bill provides that a person may be in possession of a  
          prescription controlled substance for a reasonable amount of  
          time in order to deliver the prescription to the prescription  
          holder.  The sponsor and interested parties have discussed  
          whether the term "reasonable" amount of time is vague.  There  
          have been suggestions that the bill could include a jury  
          instruction telling the jury how to consider evidence of the  
          length of time the defendant held the prescription in  
          determining if his or her purpose was to deliver it the  




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          prescription.  It appears that the purpose of the defendant is  
          the critical element in the privilege to possess the drug.  The  
          time the drug was possessed is properly a factor in determining  
          the defendant's intent, not the sole measure of intent or the  
          essence of the privilege or the crime of illicit possession if  
          the privilege does not apply.  An instruction could be included  
          with the bill to guide the jury in considering the length of  
          time the defendant held the drug in determining the defendant's  
          intent.   

          An instruction in the following form is suggested.  It is  
          similar to other instructions concerning specific kinds of  
          evidence:

               In determining whether a defendant possessed a  
               prescription controlled substance with the express  
               authorization of the prescription holder and with the  
               intent to deliver the controlled substance to the  
               prescription holder, the jury may consider the length  
               of time the defendant was in possession of the  
               controlled substance and the activities of the  
               defendant after receiving the controlled substance.   
               The weight to which evidence of the length of time the  
               defendant held the prescription controlled substance  
               is entitled is a matter for the jury to determine. 

          The instruction can be modified to address circumstances where  
          the defendant possessed the controlled substance solely for the  
          purpose of disposing it in a lawful manner.

          4.  Analogous Circumstances Where Possession of an Otherwise  
            Illegal Object or Device is Lawful  

          This bill concerns an excuse or defense against otherwise  
          illegal possession of a controlled substance because the person  
          in possession of the controlled substance only possessed it for  
          the purpose of delivering it to a person who held a prescription  
          for the drug or for the purpose of discarding the drug.  In a  
          reasonably analogous situation, a convicted felon may possess a  
          firearm for the purpose of self-defense if the possession is  












                                                  AB 2603 (V. Manuel Pérez)
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          without predesign and for no longer than necessary to carry out  
          this valid purpose.  (People v. Mizchele (1983) 142 Cal.App.3d  
          686, 692.)  While Mizchele involved the bedrock right of  
          self-defense, it can be analogized to other circumstances where  
          a person is essentially privileged to possess an otherwise  
          illicit object or substance because he or she possessed it for a  
          valid purpose.  

          5.  Application of the Bill to Disposal of Drugs  

          Prescription drug abuse has grown in recent years.  To address  
          the problem of misuse of prescription drugs by persons other  
          than the holder of the prescription, law enforcement and public  
          health officials have encouraged people to dispose of unused or  
          expired controlled substance prescriptions, eliminating the  
          opportunity for someone other than the prescription holder to  
          take the drugs.  It has been often noted that drugs should not  
          be flushed down toilets or poured into drains.  This creates a  
          public health problem because the drugs can get into drinking  
          water, as filtration and treatment system often cannot remove  
          drug residue.<2>  The drugs should be taken to a pharmacy or  
          other authorized location.  This bill would provide clarity that  
          a person who possesses a controlled substance solely for the  
          purpose of disposing of the drug is not in violation of the law.  
           Ironically, the lack of such a privilege or excuse could lead  
          to more drug abuse.  Further, despite the need for disposal of  
          unused controlled substances, the process can be difficult and  
          complicated.<3>


                                   ***************



          ---------------------------
          <2>  
          http://www.uspharmacist.com/content/d/pharmacy%20law/c/12639/
          <3>  
           http://www.deadiversion.usdoj.gov/drug_disposal/non_registrant/s_ 
          3397.pdf  ;  
          http://www.deadiversion.usdoj.gov/21cfr/cfr/1307/1307_21.htm.











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