BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 960
          Author:   Morrell (R)
          Amended:  5/28/14
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE  :  9-0, 4/28/14
          AYES:  Lieu, Wyland, Berryhill, Block, Corbett, Galgiani,  
            Hernandez, Hill, Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Pharmacy

           SOURCE  :     Board of Pharmacy


           DIGEST  :    This bill authorizes the Board of Pharmacy (Board) to  
          issue a letter of admonishment to applicants for licensures who  
          have committed violations of law that the Board deems does not  
          merit license denial or probationary status. 

           Senate Floor Amendments  of 5/28/14 make a technical change to  
          clarify that the letter of admonishment authorized under this  
          bill is not discipline for the purposes of reporting to other  
          states.

           ANALYSIS  :    

          Existing law:

          1. Requires the Board, upon receipt of an application for  
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             licensure and appropriate fee, to thoroughly investigate  
             whether the applicant is qualified for the license being  
             sought, including all matters directly related to the  
             issuance of a license that may affect the public welfare.

          2. Provides that immediately upon the denial of any application  
             for a license the Board must notify the applicant in writing  
             and authorizes the applicant, within 10 days after the Board  
             sends notice of denial, to present a written petition for a  
             license.

          3. Authorizes the Board to issue a letter of admonishment to a  
             licensee for failing to comply with provisions of the  
             Business and Professions Code, Pharmacy Law, and regulations,  
             directing the licensee to come into compliance.  Sets forth  
             the requirements for issuance of a letter of admonishment by  
             the Board and options for a recipient related to an office  
             conference with Board staff.

          4. Provides that a letter of admonishment inform the licensee  
             that within 30 days of receipt of the letter of admonishment,  
             the licensee may either submit a written request for an  
             office conference to contest the letter or may accept the  
             letter of admonishment without challenge.  Outlines  
             requirements for the office conference, if requested by a  
             licensee. 

          This bill:

          1. Authorizes the Board to issue a license to an applicant who  
             has committed violations of law that the Board deems, in its  
             discretion, do not merit the denial of a license or require  
             probationary status and concurrently issue a letter of  
             admonishment.

          2. Specifies that the procedures for issuance of a letter of  
             admonishment follow those outlined under existing law for  
             letters of admonishment as a disciplinary measure for current  
             licensees.  Specifies that all of the procedures for appeals  
             and due process requirements for letters of admonishment  
             issued as a disciplinary measure for current licensees also  
             apply.

          3. Provides that the issuance of a letter of admonishment shall  

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             not be construed as a disciplinary action or discipline for  
             purposes of licensure or the reporting of discipline for  
             licensure.

           Background
           
          In Fiscal Year 2012-13, the Board received more than 15,000  
          applications for licensure.  According to the Board, an average  
          of less than 1% of these applications were denied, although for  
          pharmacy technician license applicants, closer to 1.15% of  
          licenses were denied.  The Board currently has a process similar  
          to that proposed in this bill for issuing a letter of  
          admonishment in the event of disciplinary action.  While the  
          Department of Consumer Affairs' boards are required to report  
          certain licensee information and make public disciplinary  
          action, there are no boards that issue anything similar to  
          disciplinary action against a licensee for applicants or  
          concurrent with a license as proposed in this bill.  

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

           SUPPORT  :   (Verified  5/28/14)

          Board of Pharmacy (source)


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          before issuing a license, the Board reviews the background of  
          applicants which, in some instances, may reveal past legal  
          violations.  When these matters are substantially related to the  
          duties of the licensee, the Board denies the license but for  
          some violations, despite their seriousness, licensure denial may  
          not be warranted.  In those cases, the Board believes that by  
          issuing a letter of admonishment concurrent with a license, the  
          individual would receive the privilege of the license, while the  
          letter of admonishment serves to protect the public and provide  
          notice to an employer of facts and violations about the new  
          licensee.  The Board also believes that a letter of admonishment  
          would allow the Board to document a licensee's history regarding  
          an event that may have happened many years ago, in the event it  
          is ever considering disciplinary action for misconduct during  
          the first three years of licensure.


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          MW:d  5/28/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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