BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1014
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          Date of Hearing:   June 24, 2014

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                               Susan A. Bonilla, Chair
                    SB 1014 (Jackson) - As Amended:  June 18, 2014

           SENATE VOTE  :   33-3
           
          SUBJECT  :   Pharmaceutical waste: home generated: collection.

           SUMMARY  :   Requires the Department of Resources Recycling and  
          Recovery (CalRecycle) and the California State Board of Pharmacy  
          (BOP) to jointly develop regulations authorizing a voluntary  
          program to collect and properly dispose of home-generated  
          pharmaceutical waste (HGPW).  Specifically,  this bill  :   

          1)Authorizes a pharmacy to accept the return of HGPW from a  
            consumer consistent with the Federal Food, Drug, and Cosmetic  
            Act and the federal Controlled Substances Act.

          2)Defines the terms "HGPW," "consumer," "entity," "participant,"  
            and "sale."

          3)Specifies that HGPW is not medical waste, as specified.  

          4)Requires, by January 1, 2016, CalRecycle and BOP to jointly  
            develop regulations, to be approved by both agencies before  
            adoption, authorizing a participant to establish a program to  
            collect and properly dispose of HGPW.  Requires the  
            regulations to be based upon the model guidelines developed by  
            CalRecycle, as specified, and to include the following:

             a)   Provisions requiring a participant to:

               i)     Provide, at no additional cost to the consumer, for  
                 the safe take back and proper disposal of  
                 pharmaceuticals;

               ii)    Ensure the protection of the public health and  
                 safety, the environment, and the health and safety of  
                 consumers and employees;

               iii)   Report to CalRecycle for purposes of evaluation, the  
                 safety, efficiency, and effectiveness of the implemented  








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                 program on an annual basis.  Requires the report to  
                 contain both qualitative and quantitative measures, as  
                 determined by CalRecycle.

               iv)    Protect against the potential for the diversion of  
                 pharmaceutical waste for unlawful use or sale; and,

               v)     Provide notices and materials, as specified, to  
                 consumers that provide information about the potential  
                 impacts of improper disposal of HGPW and the return  
                 opportunities for the proper disposal of HGPW;  

             b)   Provisions that:

               i)     Specify the types of participants authorized to  
                 maintain permanent collection locations;

               ii)    Specify any requirements for obtaining state permits  
                 or approvals;

               iii)   Require participants to enter into arrangements with  
                 medical or hazardous waste haulers, including ensuring  
                 that all HGPW is appropriately picked up and transported  
                 by registered waste haulers;

               iv)    Specify which HGPW may be included in a program,  
                 including requirements for the collection of a controlled  
                 substance;

               v)     Specify methods for handling wastes commingled in  
                 containers with other household waste or hazardous waste;

               vi)    Provide methods for collecting and storing HGPW,  
                 including the use of secured containers, and ensure that  
                 collected HGPW is not resold, reused, sold, donated, or  
                 provided to anyone other than a registered medical or  
                 hazardous waste hauler;

               vii)   Provide that a facility that collects HGPW is  
                 responsible for ensuring that the storage, removal, and  
                 transportation of containers and the disposal of the  
                 waste are in compliance with state laws and regulations;

               viii)  Require the collection and retention of detailed  
                 information and invoices for each collection site; 








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               ix)    Impose requirements for one-time or periodic  
                 collection events and for mail-back collection and  
                 disposal programs;

               x)     Provide for the appropriate management of  
                 consolidated HGPW to ensure the public health and safety.

          5)Deems a participant operating a program in accordance with the  
            HGPW regulations to be in compliance with all state laws and  
            regulations concerning the handling, management, and disposal  
            of HGPW.

          6)States that nothing in this bill prohibits an entity with a  
            HGPW program that existed as of January 1, 2015, from  
            continuing to operate.

          7)States that no reimbursement is required by this act because  
            the only costs that may be incurred by a local agency or  
            school district will be incurred because this act creates a  
            new crime or infraction, eliminates a crime or infraction,  
            changes the penalty for a crime or infraction, or changes the  
            definition of a crime, as specified.

           EXISTING LAW  :

          1)Requires, under the federal Controlled Substances Act,  
            protocols for the collection of controlled substances to  
            prevent their illegal diversion and abuse. (21 United States  
            Code (USC) Section 801 et seq.)
          2)Establishes the Federal Food, Drug, and Cosmetic Act,  
            administered by the United States Food and Drug Administration  
            (FDA), to regulate drugs and medical devices.  (21 USC 301 et  
            seq.)

          3)Establishes the Pharmacy Law, which provides for the licensure  
            and regulation of pharmacies, pharmacists, and wholesalers of  
            dangerous drugs or devices by BOP within the Department of  
            Consumer Affairs.  (Business and Professions Code Sections  
            4000 et seq.)

          4)Authorizes a pharmacy to accept the return of needles and  
            syringes from the public if contained in a sharps container.   
            (BPC 4146)









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          5)Establishes the California Uniform Controlled Substances Act,  
            which regulates controlled substances.  (Health and Safety  
            Code (HSC) Sections 11000 et seq.)

          6)Defines "drug" as substances recognized as drugs in the  
            official United States Pharmacopoeia, official Homeopathic  
            Pharmacopoeia of the United States, or official National  
            Formulary, or any supplement to any of them; substances  
            intended for use in the diagnosis, cure, mitigation,  
            treatment, or prevention of disease in man or animals; and,  
            substances (other than food) intended to affect the structure  
            or any function of the body of man or animals.  (HSC 11014)

          7) Establishes the Medical Waste Management Act (MWMA) which  
             regulates the generation, handling, storage, transport,  
             treatment, and disposal of medical waste, as defined, and is  
             overseen by the Department of Public Health (DPH) and  
             designated local agencies.  (HSC 117600 et seq.)

          8) Defines "pharmaceutical" as a prescription or  
             over-the-counter human or veterinary drug including, but not  
             limited to, a drug as defined in the Sherman Food, Drug and  
             Cosmetic Law or the Federal Food, Drug, and Cosmetic Act.   
             (HSC 117747)

          9) Defines "pharmaceutical waste" as any pharmaceutical that for  
             any reason may no longer be sold or dispensed for use as a  
             drug, and excludes from this definition those pharmaceuticals  
             that still have potential value to the generator because they  
             are being returned to a reverse distributor for possible  
             manufacturer credit.  (HSC 117748)

          10)Specifies that waste comprised only of pharmaceuticals is  
             biohazardous, and is considered "medical waste."  (HSC  
             117635)

          11)Requires all medical waste transported to an offsite medical  
             waste treatment facility to be transported by a registered  
             hazardous waste transporter.  (HSC 118000)

          12)Establishes a voluntary drug repository and distribution  
             program for the purpose of distributing surplus medications  
             to persons in need of financial assistance to ensure access  
             to necessary pharmaceutical therapies.  (HSC 150200 et seq.)









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          13)Requires pharmaceutical manufacturers that sell or distribute  
             a medication in California that is self-injected at home  
             through the use of a hypodermic needle, pen needle,  
             intravenous needle, or any other similar device to submit to  
             CalRecycle a plan that describes what actions, if any, the  
             manufacturer supports for the safe management of sharps  
             waste.  (Public Resources Code Section 47115)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of this bill  . This bill requires CalRecycle and BOP to  
            develop regulations authorizing a voluntary program for  
            participants to properly dispose of HGPW.  These programs are  
            intended to support clean water efforts and reduce drug  
            diversion.  This bill is sponsored by the California Product  
            Stewardship Council, Clean Water Action, the Alameda County  
            Board of Supervisors, and the California Alliance for Retired  
            Americans.     

           2)Author's statement  .  According to the author's office,  
            "California is experiencing an increasingly serious problem  
            with prescription drug abuse, accidental poisonings, and the  
            detection of pharmaceutical products in state waters.  Local  
            governments have struggled to establish safe and convenient  
            medication take-back programs for the unused and expired  
            prescription drugs, over the counter drugs, and veterinary  
            drugs found in our homes.  Unused medications are often  
            flushed or thrown in the trash because there are few, if any,  
            safe and convenient options?  Now that CalRecycle's Model  
            Guidelines have expired, there are no standards in place for  
            how local entities should properly run their voluntary  
            take-back programs to ensure that collection and disposal is  
            safe, convenient, and secure.  Due to the prescription drug  
            abuse epidemic in the state, guidelines for collection to  
            prevent further diversion are critical to protecting public  
            health-they can help by providing local entities with a model  
            for removing unwanted drugs from homes and ensuring they are  
            not resold or available to be abused after consolidation at  
            collection locations."

           3)Environmental and social impacts of improperly disposed  
            pharmaceuticals  .  Improperly managed pharmaceuticals are  
            resulting in environmental and health concerns and drug  








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            diversion.  

              a)   Environmental concerns  . Pharmaceuticals in our water  
               supply are an issue of growing concern and significant  
               research.  Pharmaceutical residuals from humans and animals  
               are continually introduced to the aquatic environment as  
               complex mixtures through a number of routes -- discharge of  
               treated domestic wastewater, treated industrial wastewater,  
               commercial animal feeding operations, and manure.

               The World Health Organization released a report in 2011 on  
               pharmaceuticals in drinking water, concluding that while  
               the available research indicates there is low immediate  
               risk to human health from trace pharmaceuticals in drinking  
               water, there are "knowledge gaps" in the available  
               literature, and much more research is needed about  
               long-term effects.  Real demonstrated effects on aquatic  
               life have been demonstrated; the Environmental Protection  
               Agency reports that results of fish studies indicate  
               increased resistance to antibiotics and disruption of fish  
               endocrine systems.  

              b)   Drug diversion  . Prescription drug abuse is a serious and  
               growing problem nationwide.    According to the 2010  
               National Survey on Drugs Use and Health, an estimated 2.4  
               million Americans used prescription drugs non-medically for  
               the first time in the past year. This averages about 6,600  
               initiates per day, of which one-third are 12 to 17 years of  
               age. The US Department of Justice reports that 70% of youth  
               get their prescription drugs from family and friends, but  
               few parents report safeguarding prescription medications.   
               In addition, the percentage of respondents who  agreed with  
               the survey statement "Anyone can access prescription  
               medicines in the medicine cabinet" went from 50% in 2010 to  
               64% in 2011, meaning medications are available to anyone in  
               their homes. 

           4)California take-back programs  . Take-back programs and events  
            are collection methods aimed at reducing the quantity of  
            unused pharmaceuticals entering the environment and reducing  
            the amount of drugs available for diversion, theft, or  
            accidental poisoning. 

            Senate Bill 966 (Simitian, Chapter 542, Statutes of 2007)  
            required California Integrated Waste Management Board (CIWMB,  








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            the predecessor to CalRecycle) to develop model programs for  
            the collection from consumers and proper disposal of unused or  
            expired HGPW.  "Criteria and Procedures for Model  
            Home-Generated Pharmaceutical Waste Collection and Disposal  
            Programs," (Model Guidelines) was adopted in 2010 in  
            consultation with staff from CIWMB, DPH, BOP, Department of  
            Toxic Substances Control, and the State Water Resources  
            Control Board.  The model program was meant to assist  
            organizations and local governments in creating programs  
            through which the public may return unused or expired HGPW, as  
            well as to meet the minimum criteria and goals delineated in  
            SB 966.  

            CalRecycle surveyed 256 collection sites (85% of known  
            California programs) in 2010 and found no reported signs of  
            illegal drug diversion.  However, only about one-third of the  
            programs met the voluntary model guidelines.  CalRecycle found  
            that collection programs in California gathered approximately  
            200,000 pounds of HGPW per year.

            A 2014 CalRecycle report to the California State Senate  
            suggested that program participants faced a number of  
            challenges that limited program participation.  These  
            challenges include funding concerns, conflicting collection  
            and disposal standards for medical waste, and burdensome and  
            confusing regulations and regulatory authorities.  The statute  
            containing the HGPW model guidelines became inoperative on  
            January 1, 2013, although many programs continue to operate.   
            This bill builds upon the Model Guidelines in an effort to  
            create more feasible guidelines for entities wishing to  
            participate in take-back programs.      

           5)Committee amendments  .  In December 2012, the DEA released  
            proposed regulations to implement the Secure and Responsible  
            Drug Disposal Act, P.L. 111-273, which was signed into law in  
            October 2010.  The Secure and Responsible Drug Disposal Act  
            gives the Attorney General authority to promulgate regulations  
            to allow patients to deliver unused prescription controlled  
            substances "to appropriate entities for disposal in a safe and  
            effective manner consistent with effective controls against  
            diversion."  DEA is working on the final rule presently.

            Committee amendments strike existing language that  
            grandfathers programs operating as of January 1, 2015, and  
            requires that regulations adopted pursuant to this bill  








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            conform with federal requirements, once they are finalized.   
            This will require all programs to conform with California's  
            and DEA regulations.     

            On page 7, strike lines 3-5, and insert:  "47123.  Regulations  
            adopted pursuant to this article shall conform to federal  
            requirements for drug take-back programs once finalized."



            There are additional nonsubstantive technical, clarifying, and  
            conforming amendments.   

           6)Arguments in support  .  California Association of Sanitation  
            Agencies (CASA) write, "The current lack of safe and  
            convenient disposal mechanisms in many jurisdictions ensures  
            that consumers often choose less than desirable options,  
            including flushing medications down the toilet.  Attention to  
            the environmental impact of pharmaceuticals has grown among  
            water quality regulators in California, and as a result, many  
            wastewater treatment plants are now being required to monitor  
            for these concentrations out of wastewater, and there are  
            varying degrees of removal capability for each constituent  
            type.  As a consequence, some pharmaceuticals disposed of  
            through the wastewater stream and their metabolites may pass  
            through wastewater treatment plants into creeks, rivers, bays  
            and the Pacific Ocean.  

            "Many CASA member agencies have spent significant time and  
            resources developing pharmaceutical take-back programs,  
            implementing "No Drugs Down the Drain" campaigns and hosting  
            take back collection days as part of household hazardous waste  
            programs."  

           7)Related legislation  .  AB 403 (Stone) of 2013 would have  
            required businesses that sell medical sharps to establish a  
            product stewardship plan for the end of life management of  
            home-generated medial sharps.  The bill was held under  
            submission by the Assembly Committee on Appropriations.

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

             AB 1727 (Rodriguez) of 2014 exempts a prescription drug under  








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             a federal FDA Risk Evaluation and Mitigation Strategies from  
             being donated through a prescription drug donation program.   
             Status:  This bill is currently pending in the Senate  
             Committee on Business, Professions, and Economic Development.

             AB 1893 (Stone and Eggman) of 2014 requires that customers be  
             given a free sharps disposal container with the sale of 50 or  
             more medical sharps for self-injection.  Status:  This bill  
             is currently pending on the Assembly floor.
                
            8)Previous legislation  .  AB 1442 (Wieckowski) Chapter 689,  
            Statutes of 2012, defined pharmaceutical waste as any  
            pharmaceutical that may no longer be sold or dispensed,  
            excluding pharmaceuticals that could be returned to a reverse  
            distributor for possible manufacturer credit.  

             SB 419 (Simitian) of 2011, required pharmaceutical  
             manufacturers to provide their annual reports on disposal of  
             sharps waste to CalRecycle electronically and make them  
             readily available on their websites.  The bill was vetoed by  
             the Governor.

             SB 26 (Simitian) of 2009 would have defined HGPW and exempt  
             it from existing regulatory requirements for the handling of  
             medical waste and would have authorized pharmacies and other  
             facilities to collect HGPW, under specified conditions.   
             Status:  The bill was amended to deal with a different topic  
             and was not heard in a policy committee.  

             SB 486 (Simitian) Chapter 591, Statutes of 2009, required a  
             pharmaceutical manufacturer that sells or distributes a  
             medication that is self-injected at home through the use of a  
             hypodermic needle, pen needle, intravenous needle, or any  
             other similar devices to submit to the CIWMB, or its  
             successor agency, a plan that describes how the manufacturer  
             supports the safe collection and destruction of  
             home-generated sharps waste.

             SB 966 (Simitian), Chapter 542, Statutes of 2007, required  
             CIWMB to develop, in consultation with appropriate state,  
             local, and federal agencies, model programs for the  
             collection and proper disposal of pharmaceutical drug waste.

           9)Double referral  :  This bill was previously heard in the  
            Environmental Safety and Toxic Materials Committee and was  








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            passed by a 6-1 vote. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Alameda County Board of Supervisors (co-sponsor)
          California Alliance for Retired Americans (co-sponsor)
          California Product Stewardship Council (co-sponsor)
          Clean Water Action (co-sponsor)
          California Nurses Association
          California School Employees Association
          California State Board of Pharmacy
          California State Sheriff's Association
          Central Contra Costa County Sanitation District
          City and County of San Francisco 
          City of Sunnyvale
          County of Santa Clara 
          East Bay Municipal Utility District 
          El Dorado Irrigation District
          Rural County Representatives of California
          Los Angeles County Board of Supervisors (05/27/14 version)
          California Association of Sanitation Agencies (04/21/14 version)
          California Resource Recovery Association (04/21/14 version)
          City of Camarillo (04/21/14 version)
          City of Chula Vista (04/21/14 version)
          Health Officers Association of California (04/21/14 version)
          League of Women Voters of California (04/21/14 version)
          Natural Resources Defense Council (04/21/14 version)
          Sacramento State Student Health Services Pharmacy (04/21/14  
          version)
          San Francisco Bay Area Physicians for Social Responsibility  
          (04/21/14 version)
          Sanitation Districts of Los Angeles County (04/21/14 version)
          Worksafe (04/21/14 version)
          Californians for a Healthy and Green Economy (04/1/14 version) 
          Center for Environmental Health (04/1/14 version)
          City of Thousand Oaks (04/1/14 version)
          City of Torrance (04/1/14 version)
           

          Opposition 
           
          One individual









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           Analysis Prepared by  :    Sarah Huchel / B.,P. & C.P. / (916)  
          319-3301