BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1014 (Jackson) - Pharmaceutical waste: home generated.
          
          Amended: April 21, 2014         Policy Vote: EQ 6-0, BP&ED 6-0
          Urgency: No                     Mandate: Yes (see staff comment)  

          Hearing Date: May 12, 2014      Consultant: Marie Liu
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1014 would require the Department of Resources  
          Recycling and Recovery (CalRecycle) to develop regulations for  
          programs that collect and dispose of home-generated  
          pharmaceutical waste (HGPW). This bill would declare that a  
          collection program in compliance with these regulations would be  
          considered in compliance with all state laws and regulations  
          concerning the handling, management, and disposal of HGPW.

          Fiscal Impact: 
              One-time costs between $250,000 and $300,000 from the  
              Integrated Waste Management Fund (special) to CalRecycle to  
              develop the required regulations.
              Ongoing costs between $50,000 and $150,000 from the  
              Integrated Waste Management Fund (special) to CalRecycle to  
              receive and analyze reports from HGPW collection program.

          Background: SB 966 (Simitian) Chapter 542, Statutes of 2007  
          required the California Integrated Waste Management Board (now  
          CalRecycle) to develop model programs for the collection from  
          consumers and proper disposal of unused or expired  
          home-generated pharmaceuticals. The model programs needed to  
          meet specific requirements including no cost to the consumer,  
          protection of public health and safety, protection of health and  
          safety of consumers and employees, and protection against the  
          diversion of drug waste for unlawful use or sale. The model  
          programs also met minimum criteria developed by the  
          Pharmaceutical Working Group (comprised of staff from the  
          CalRecycle, DPH, Board of Pharmacy, Department of Toxic  
          Substances Control, and the State Water Resources Control  
          Board).

          The Medical Waste Management Act (HSC �106500 et seq.) requires  








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          the Department of Public Health (DPH) to regulate the management  
          and handling of medical waste. This act defines  
          "pharmaceuticals" as prescription or over-the-counter human or  
          veterinary drug, excluding any pharmaceutical that is regulated  
          as a controlled substance under federal law or as a radioactive  
          material under the California's Radiation Control law.  
          "Pharmaceutical waste" is defined as a pharmaceutical that may  
          no longer be sold or dispensed for use as a drug, excluding  
          pharmaceuticals that still have potential value to the  
          generator. Waste that is comprised only of pharmaceuticals is  
          considered "medical waste," which is required to be transported  
          to an offsite medical waste treatment facility.

          Proposed Law: This bill would require CalRecyle to adopt  
          regulations regarding the collection and disposal of  
          home-generated pharmaceutical waste (HGPW), which must be based  
          on the model programs developed pursuant to SB 966 and must  
          contain minimum content including, among other things, the  
          following:
           Reporting requirements to CalRecycle to enable the department  
            to evaluate safety, efficiency, effectiveness, and funding  
            sustainability;
           Notification and education materials for consumers; 
           Requirements for obtaining local or state permits;
           Requirements for participants to enter into arrangements with  
            medical or hazardous waste haulers to ensure that all HGPW is  
            appropriately picked up and transported by registered waste  
            haulers; and
           Requirements for the one-time or periodic collection events.

          CalRecycle would be permitted to revise the regulations if it  
          deems it necessary and only if the revision provides an  
          equivalent or greater level of safety.

          Any entity that elects to implement a HGPW program would be  
          required to comply with the regulations. Programs that are in  
          compliance with these regulations would be considered in  
          compliance with all state laws and regulation concerning the  
          handling, management, and disposal of HGPW.

          This bill would also authorize a pharmacy to accept the return  
          of HGPW.

          This bill would define "home-generated pharmaceutical waste" and  








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          would exclude HGPW from the definition of "medical waste."

          Related Legislation: AB 333 (Wieckowski) - makes various changes  
          to the Medical Waste Management Act. (In the Senate  
          Environmental Quality Committee)

          AB 467 (Stone) Chapter 10, Statutes of 2014 - creates a  
          licensure category for a surplus medication collection and  
          distribution intermediary. 

          AB 1727 (Rodriguez) would restrict certain pharmaceuticals from  
          county operated prescription drug collection and redistribution  
          programs. (In Assembly Health Committee)

          SB 727 (Jackson) - would have created the Drug Abuse Prevention  
          and Safe Disposal Program Stewardship Program within CalRecycle.  
          (Held in Senate Environmental Quality) 

          Staff Comments: This bill would require CalRecycle to adopt  
          regulations for the collection and disposal of HGPW. CalRecycle  
          estimates that the cost of developing these regulations would be  
          between $250,000 and $300,000.
          
          This bill would require the regulations to mandate reporting to  
          CalRecycle to enable the department to evaluate the "safety,  
          efficiency, effectiveness, and funding sustainability" of the  
          program. CalRecycle anticipates that it would need to develop a  
          database and to dedicate staff time to analyze the reports.  
          These costs would depend on the number of HGPW collection  
          programs that are established, but are likely to be between  
          $50,000 and $150,000 annually. Staff further notes that since  
          these programs are voluntary and would be operated by local  
          agencies or private entities, it may not be necessary (or  
          potentially appropriate) for CalRecycle to be evaluating a  
          program's funding sustainability. Also, while the bill states  
          the intended purpose of the reporting, staff notes that the bill  
          does not require CalRecycle to do such an analysis, or report  
          its results to any other entity.

          Staff notes that there are a number of unclear requirements in  
          the bill, such as the requirement for the state regulations to  
          create requirements for obtaining local permits and restrictions  
          on the regulation revisions. Additionally, the bill currently  
          requires that any HGPW program is compliant with the regulations  








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          developed pursuant to this bill, which according to the author,  
          is not her intent. Instead, the author only intends that the  
          compliance with the HGPW regulations be voluntary, but if the  
          program does follow the regulations, then the program would be  
          deemed in compliance with all state laws and regulations  
          concerning the handing, management, and disposal of HGPW. The  
          author has informed committee staff of her intention to amend  
          the bill to properly reflect this intention and to address the  
          unclear requirements in the bill. 

          This bill is marked as a state-mandated local program because it  
          creates a new crime. However, this mandate is not reimbursable.