BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 506|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 506
Author: Hill (D)
Amended: 1/27/14
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/9/13
AYES: Hancock, Anderson, Block, De Le�n, Knight, Liu, Steinberg
SENATE JUDICIARY COMMITTEE : 4-0, 4/30/13
AYES: Walters, Anderson, Leno, Monning
NO VOTE RECORDED: Evans, Corbett, Jackson
SENATE APPROPRIATIONS COMMITTEE : 5-0, 1/23/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
SUBJECT : Ephedrine: retail sale
SOURCE : Consumer Healthcare Products Association
DIGEST : This bill makes several changes to how the sales of
pseudoephedrine are made including requiring that sales be
monitored electronically, as specified.
ANALYSIS :
Existing law:
1.Classifies controlled substances in five schedules according
to their dangerousness and potential for abuse.
CONTINUED
SB 506
Page
2
2.Provides that pharmacists, in filling a controlled substance
prescription, shall provide to the Department of Justice (DOJ)
the patient's name, date of birth, the name, form, strength
and quantity of the drug, and the pharmacy name, pharmacy
number and the prescribing physician information.
3.Provides that it is unlawful for a retailer to sell in a
single transaction more than three packages, or nine grams, of
a product that he/she knows to contain ephedrine,
pseudoephedrine, norpseudoephedrine, or phenylpropanolamine.
With specified exceptions, the three package-nine grams per
transaction limitation applies to any product lawfully
furnished over the counter pursuant to applicable federal law.
This offense is a misdemeanor, punishable by a county jail
term of up to six months, a fine of up to $1,000, or both.
The penalty for a subsequent conviction is a misdemeanor term
of up to one year in jail, a fine of up to $10,000, or both.
This bill:
1.Repeals the existing statutory provisions for over-the-counter
sales of pseudoephedrine and related products and replaces
them with new sales limits and a state-wide database for
monitoring and tracking sales of these products.
2.Includes or retains an exception for pseudoephedrine sold or
provided pursuant to a prescription.
3.Provides that a violation of the sales limits or required
procedures is a misdemeanor, punishable on a first conviction
by a fine of up to $1,000, a jail term of up to six months, or
both. Upon a subsequent conviction, the maximum jail term is
one year and the maximum fine is $10,000.
4.Requires procedures and sales limits, as specified.
5.Provides that a retailer shall not maintain a separate copy of
the transaction information, except as required by federal
data collection law.
6.Provides that in the event of a failure of the data system
that makes compliance with the data collection rules in this
bill, sales records shall be maintained in a written log or in
CONTINUED
SB 506
Page
3
alternative electronic form.
7.Provides that on and after July 1, 2015, a retail distributor
shall immediately transmit information about each sale to a
vendor to collect, administer, and provide access to the
transaction data to determine whether or not the transaction
is prohibited.
8.Requires the retailer to give notice to customers explaining
the identification and purchase data will be provided to law
enforcement. Notice may be given electronically, in writing
or through signs.
9.Provides that the retailer need not keep records of
pseudoephedrine transactions in a separate log or location
from those required by federal law.
10.Provides that prior to executing a memorandum of
understanding (MOU), the DOJ shall carry out a competitive
bidding process for a vendor to collect, administer, and
provide access to the transaction data transmitted by retail
distributors and requires the National Association of Drug
Diversion Investigators (NADDI) to reimburse the DOJ for cost
incurred in executing the MOU, as specified.
11.States that probable cause is necessary before law
enforcement can begin an investigation based on a single
transaction made in violation of pseudoephedrine purchase
limits.
12.Provides that data collected on over-the-counter sales of
pseudoephedrine shall be maintained by a retailer and the
vendor of the National Precursor Log Exchange system for no
longer than two years, except as required by federal law, and
shall be destroyed after two years.
13.Provides that law enforcement access to the database from a
location other than the retailer shall be limited to records
of a person whose attempted purchase was denied by the system.
14.Provides that law enforcement access to the database system
shall be recorded by means of a unique access code for each
person using the system. Access records shall be maintained
by DOJ.
CONTINUED
SB 506
Page
4
15.Provides that the system shall be capable of providing retail
distributors with an immediate real-time alert if a person
attempts to purchase pseudoephedrine in violation of the
limits and procedures, as specified.
16.Provides that the data system shall conform to the Federal
Bureau of Investigation's Criminal Justice Information Systems
security standards and may be audited annually.
17.Provides that neither the DOJ nor any state agency shall bear
any cost for developing, installing or maintaining the system,
as specified.
18.Provides that the state shall impose no fee on a retailer
distributor or manufacturer to defray administrative or other
costs for oversight or use of the system.
19.Directs the Board of Equalization to notify all retailers by
April 1, 2014, of the requirement to submit each
pseudoephedrine transaction to the system.
20.Provides that upon adoption of an MOU between DOJ and NADDI,
NADDI shall forward California transaction records to DOJ
weekly and provide real-time access to the system for law
enforcement.
21.States that the MOU must provide or conform to regulations,
as specified.
22.Provides that DOJ may submit recommendations to NADDI for
improving identification of false identification cards.
23.States legislative intent to preempt all local ordinances or
regulations concerning the over-the-counter sale of
pseudoephedrine products.
24.Includes the following definitions concerning sellers of
pseudoephedrine:
A. "Drug store" "general merchandise store" or "grocery
store" means such an entity as described in a certain
sections of specified classification manual published by
the U.S. Office of Management and Budget in 1987.
CONTINUED
SB 506
Page
5
B. "Sale for personal use" means a sale of pseudoephedrine
in a single transaction to an individual customer for
legitimate medical use. Sale for personal use also
includes sales to employers to be dispensed to employees
from first-aid kits or medicine chests.
1.States that these provisions will become operative February 1,
2015, only if NADDI voluntarily agrees to reimburse DOJ for
costs incurred, as specified.
2.Includes a sunset date of January 1, 2019.
Comments
According to the author's office, since 2006, federal law has
required that all over-the-counter (OTC) pseudoephedrine (PSE)
products be stored behind the counter, requires purchasers to
provide identification and sign a paper logbook, and limits the
quantities which may be purchased to 3.6 grams per day and nine
grams per month. This is to prevent criminals from accumulating
large quantities of PSE and using it in the illegal production
of methamphetamine. California currently has no mechanism to
prevent criminals who are involved in illegal trafficking of PSE
from visiting multiple stores and buying as many packages of
PSE-containing products as they want, because retailers'
logbooks are not connected.
This bill requires California retailers selling OTC products
containing PSE to submit data required to be collected under
federal law to a unified electronic logbook prior to completing
the sale. Existing law limits sales of PSE, but does not
provide retailers with a mechanism to ensure that a sale is
legal prior to completing it. The electronic logbook required
by this bill fills that gap. Retailers would be alerted
immediately when a consumer is about to exceed the purchase
limits, and required to stop the sale.
Twenty-six states already mandate the use of real-time
electronic logbooks for PSE sales: Alabama, Arizona, Arkansas,
Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Maine, Michigan, Missouri, Nebraska, North
Carolina, North Dakota, Ohio, Oklahoma, South Carolina,
Tennessee, Texas, Virginia, Washington, and West Virginia.
CONTINUED
SB 506
Page
6
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 1/27/14) (list reflects prior version of
the bill)
Consumer Healthcare Products Association (source)
BIOCOM
California Chamber of Commerce
California District Attorneys Association
California Healthcare Institute
California Manufacturers and Technology Association
California Pharmacists Association
California Retailers Associations
California State Sheriffs' Association
Johnson & Johnson
National Association of Chain Drug Stores
Peace Officers Research Association of California
Rickitt Benckiser
Rite Aid
Shasta County Sheriff
Valley Industry & Commerce Association
OPPOSITION : (Verified 1/27/14) (list reflects prior version
of the bill)
California Narcotics Officers Association
Electronic Frontier Foundation
JG:e 1/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED