BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:April 21, 2014        |Bill No:SB                         |
        |                                   |1039                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                        Bill No:        SB 1039Author:Hernandez
                    As Amended: April 10, 2014         Fiscal: Yes

        
        SUBJECT:  Pharmacies: furnishing drugs.
        
        SUMMARY:  Makes changes to the authorized tasks of a pharmacy  
        technician (PT) under the direct supervision or control of a  
        pharmacist by authorizing a PT to assist with emergency supply  
        packaging for hospitals and stock, replenish and inspect a hospital's  
        emergency pharmaceutical supplies container.

        Existing law, the Business and Professions Code (BPC):
        
        1)Establishes the Pharmacy Law which provides for the licensure and  
          regulation of pharmacies, pharmacists and wholesalers of dangerous  
          drugs or devices by the Board of Pharmacy (Board) within the  
          Department of Consumer Affairs (DCA).  

        2) Authorizes a PT to perform packaging, manipulative, repetitive or  
           other nondiscretionary tasks, only while assisting, and while under  
           the direct supervision and control of a pharmacist.  Clarifies that  
           a pharmacy technician can only perform the above tasks with a  
           pharmacist on duty.  Prohibits a PT from performing any act  
           requiring the exercise of professional judgment by a pharmacist.   
           (BPC � 4115)

        3) Requires the Board to adopt regulations to specify tasks that a PT  
           may perform under the supervision of a pharmacist. Provides that  
           any pharmacy that employs a PT shall do so in conformity with the  
           regulations adopted by the board.  Provides that no person shall  
           act as a PT without first being licensed by the Board as a PT.   
           (Id.)






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        4) Provides that a pharmacy with only one pharmacist shall have no  
           more than one PT performing packaging, manipulative, repetitive or  
           other nondiscretionary tasks.  Establishes a ratio of no more than  
           two PTs to one pharmacist in all practice settings except for: (a)  
           an inpatient of a licensed health facility; (b) a patient of a  
           licensed home health agency; (c) an inmate of a correctional  
           facility of the Department of Corrections and Rehabilitation; and, 
        (d) a person receiving treatment in a facility operated by the State  
           Department of State Hospitals, the State Department of  
           Developmental Services, or the Department of Veterans Affairs.   
           Provides that the pharmacist on duty shall be directly responsible  
           for the conduct of a PT supervised by that pharmacist.  (Id.)

        5) Prohibits anyone other than a pharmacist, an intern pharmacist, an  
           authorized officer of the law, or a person authorized to prescribe  
           from being in an area, place, or premises in a pharmacy where  
           controlled substances or dangerous drugs or dangerous devices are  
           stored, possessed, prepared, manufactured, derived, compounded,  
           dispensed, or repackaged. States that a pharmacist is responsible  
           for any individual who enters the pharmacy for the purposes of  
           receiving consultation from the pharmacist or performing clerical,  
           inventory control, housekeeping, delivery, maintenance, or similar  
           functions relating to the pharmacy if the pharmacist remains  
           present in the pharmacy during all times as the authorized  
           individual is present.  (BPC � 4116)

        6) Prohibits anyone other than a pharmacist, an intern pharmacist, a  
           pharmacy technician, an authorized officer of the law, a person  
           authorized to prescribe, a registered nurse, a licensed vocational  
           nurse, a person who enters the pharmacy for purposes of receiving  
           consultation from a pharmacist, or a person authorized by the  
           pharmacist in charge to perform clerical, inventory control,  
           housekeeping, delivery, maintenance, or similar functions relating  
           to the pharmacy from being in that area, place, or premises  
           described in the hospital where controlled substances, dangerous  
           drugs, or dangerous devices are stored, possessed, prepared,  
           manufactured, derived, compounded, dispensed, or repackaged.  (BPC  
           � 4117)

        7) Defines "intern pharmacist" as a person licensed by the Board for a  
           period of one to six years if he or she is enrolled in a school of  
           pharmacy recognized by the Board, two years if he or she is a  
           graduate of a school of pharmacy recognized by the Board who has  
           applied to become licensed as a pharmacist, two years if he or she  
           is a foreign graduate, or one year if he or she has failed the  
           pharmacist license exam four times and has remained enrolled in a  





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           school of pharmacy.  (BPC � 4033)

        8) Permits pharmacists to perform the following procedures under  
           physician protocols in licensed health care facilities:  (BPC  
           �4052.1)

           a)   Order and perform routine drug therapy-related patient  
             assessment procedures.
           b)   Order drug therapy-related laboratory tests.
           c)   Administer drugs and biologicals by injection pursuant to a  
             prescriber's order.
           d)   Initiate or adjust a patient's drug regimen pursuant to  
             authorization or order by the patient's prescriber.

        9)Permits pharmacists in a number of specified settings to do the  
          following:  (BPC � 4052.2)

           a)   Order and perform routine drug therapy-related patient  
             assessment procedures.
           b)   Order drug therapy-related laboratory tests.
           c)   Administer drugs and biologicals by injection pursuant to a  
             prescriber's order.
           d)   Initiate or adjust a patient's drug regimen pursuant to  
             authorization or order by the patient's treating prescriber.  
             Prohibits the substitution or selection of a different drug  
             unless authorized by protocol and requires prescriber  
             notification of initiated drug regimens to be transmitted within  
             24 hours.
           e)   Specifies that a patient's treating prescriber may prohibit  
             pharmacists from making any changes or adjustments to patients'  
             drug regimens.
           f)   Requires the governing policies, procedures and protocols to  
             be developed by specified health professionals and established  
             minimum requirements for those policies, procedures and  
             protocols.
           g)   Requires pharmacists performing procedures authorized by this  
             section to have successfully completed clinical residency  
             training or demonstrated clinical experience in direct patient  
             care delivery.

        10)Authorizes an advanced practice pharmacist (APP) recognized by the  
           Board to do all of the following:  (BPC � 4052.6)

             a)     Perform patient assessments.
             b)     Order and interpret drug-therapy related tests, ensuring  
               that the ordering of those tests is done in coordination with  





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               the patient's primary care provider or diagnosing prescriber,  
               as appropriate, including promptly transmitting written  
               notification to the patient's diagnosing prescriber or entering  
               the appropriate information in a patient record system shared  
               with the prescriber, when available and as permitted by that  
               prescriber.         
             c)     Refer patients to other health care providers.
             d)     Participate in the evaluation or management of diseases  
               and health conditions in collaboration with other health care  
               providers.
             e)     Initiate, adjust or discontinue drug therapy pursuant to  
               the authority established in current law for pharmacists to  
               perform certain procedures in a licensed health care facility. 

        1) Provides that an APP who adjusts or discontinues drug therapy shall  
           promptly transmit written notification to the patient's diagnosing  
           prescriber or enter the appropriate information into a patient  
           record system shared with the prescriber.  Provides that an APP who  
           initiates drug therapy shall promptly transmit written notification  
           or enter the appropriate information into a patient record system  
           shared with the patient's primary care provider or diagnosing  
           provider.  (Id.)

        2) Requires an APP to register with the DEA prior to initiating or  
           adjusting a controlled substance.  (Id.)

        Existing law, the Health and Safety Code (HSC):
        
        1)Establishes the California Uniform Controlled Substances Act  
          (Controlled Substances Act) which regulates controlled substances.   
          (HSC �� 11000-11651)

        2)Specifies that no person other than the following shall write or  
          issue a prescription for a controlled substance:  (HSC � 11150)  

           a)   a physician,
           b)   dentist,
           c)   podiatrist,
           d)   veterinarian,
           e)   naturopathic doctor, 
           f)   pharmacist in a number of settings as outlined above or acting  
             within the scope of a health workforce pilot project authorized  
             by the Office of Statewide Health Planning and Development  
             (OSHPD), 
           g)   a registered nurse acting within the scope of a health  
             workforce pilot project authorized by OSHPD, 





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           h)   a certified nurse-midwife, if furnished or ordered  
             incidentally to the provision of family planning services,  
             routine health care or perinatal care, or care rendered  
             consistent with the certified nurse-midwife's practice and occurs  
             under physician and surgeon supervision and is in accordance with  
             standardized procedures or protocols as specified,
           i)   a nurse practitioner, if it is consistent with a nurse  
             practitioner's educational preparation or for which clinical  
             competency has been established and maintained and occurs under  
             physician and surgeon supervision and is in accordance with  
             standardized procedures or protocols as specified, 
           j)   a physician assistant acting within the scope of a health  
             workforce pilot project authorized by OSHPD or while under the  
             supervision of a physician and surgeon, under specified  
             conditions and protocols adopted by the supervising physician and  
             surgeon,
           aa)  a naturopathic doctor in accordance with standardized  
             procedures or protocols developed by the naturopathic doctors and  
             his or her supervising physician and surgeon,
           bb)  an optometrist according to certain requirements,
           cc)  an out-of-state prescriber in emergency situations, if his or  
             her licensing classification is same as a license in California  
             that would permit prescribing of drugs or devices. 

        3) Authorizes the above to prescribe for, furnish to, or administer  
           controlled substances to his or her patient when the patient is  
           suffering from a disease, ailment, injury, or infirmities attendant  
           upon old age, other than addiction to a controlled substance,  
           provided that it is prescribed or furnished or administered only  
           when in good faith he or she believes the disease, ailment, injury,  
           or infirmity requires the treatment and only in the quantity and  
           for the length of time as are reasonably necessary.  (HSC � 11210)

        This bill:

        1) Adds emergency supply packaging and sealing in or for hospitals and  
           hospital unit inspections to the types of physical, manipulative,  
           repetitive, or other nondiscretionary tasks a PT may assist with,  
           while under the direct supervision and control of a pharmacist.

        2) Authorizes a pharmacy to furnish a dangerous drug or dangerous  
           device to the emergency medical services system of a licensed  
           general acute care hospital for storage in a secured emergency  
           pharmaceutical supplies container maintained within the hospital,  
           in accordance with the hospital's policies and procedures and  
           provides that a PT or intern pharmacist under the direct  





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           supervision of a pharmacist may stock, replenish, and inspect the  
           hospital's emergency pharmaceutical supplies container.

        3) Requires both the hospital and the dispensing pharmacy to maintain  
           records of each request by, and dangerous drugs or dangerous  
           devices furnished to, the hospital's emergency medical services  
           system, for at least three years and provides that controlled  
           substances must be furnished to the hospital's emergency medical  
           services according to requirements set forth in the California  
           Uniform Controlled Substances Act (Division 10 (commencing with  
           Section 11000) of the Health and Safety Code).

        4) Authorizes a pharmacy to furnish a dangerous drug or dangerous  
           device to a licensed general acute care hospital pursuant to  
           preprinted or electronic standing orders, order sets, and protocols  
           established under the policies and procedures of the hospital if  
           the order is promptly dated, timed, and authenticated in the  
           medical record of the patient to whom the dangerous drug or  
           dangerous device is dispensed by the ordering practitioner or  
           another practitioner responsible for the care of that patient and  
           authorized by the hospital's policies and procedures to write  
           orders.

        5) Requires a pharmacist, PT, or an intern pharmacist under the direct  
           supervision of a pharmacist to inspect the drugs maintained in the  
           hospital at least once per month.  Requires the hospital to  
           establish specific written policies and procedures for these  
           inspections.  Requires any irregularities to be reported to the  
           director or chief executive officer of the hospital.  Requires the  
           hospital to adopt policies and procedures regarding the  
           responsibility for assuring proper methods for repackaging and  
           labeling of bulk cleaning agents, solvents, chemicals, and nondrug  
           hazardous substances used throughout the hospital according to  
           state and federal law and standards.

        6) Adds an APP to the list of those authorized to prescribe controlled  
           substances as outlined above. 

        
        FISCAL EFFECT:  Unknown.  This bill is keyed "fiscal" by Legislative  
        Counsel.

        
        COMMENTS:
        
        1. Purpose.  This bill is sponsored by the  California Society of  





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           Health System Pharmacists  (CSHSP).  According to the Author, "this  
           bill makes more efficient use of pharmacy personnel in the facility  
           setting expanding the types of nondiscretionary tasks that PTs are  
           permitted to perform, freeing up pharmacists to focus on patient  
           care."
           
           According to the Author, his Senate Bill 493 (Hernandez, Chapter  
           469, Statutes of 2013) gives health care facilities greater  
           flexibility to focus their pharmacist workforce on providing  
           patient-centered services as part of a multi-disciplinary team.   
           The Author states that "this is especially important given that  
           previously uninsured patients entering the health care system under  
           the Affordable Care Act (ACA) will likely suffer disproportionately  
           from multiple comorbidities and have low health literacy rates.   
           The Author further states that this flexibility is in conflict with  
           existing regulatory requirements on pharmacists that have been in  
           place for decades and that have long been outdated.  The Author  
           believes that removing the burden of simple nondiscretionary  
           activities unrelated to professional judgment of pharmacists, such  
           as checking expiration dates for drug stock or repackaging or  
           labeling cleaning agents,  will help redirect pharmacy resources  
           where they are needed most - the patient.

        2. Background.  
            
           a)   Pharmacy Technicians.  The law creating the registration for  
             PTs was enacted in 1991 (AB 1244, Polanco, Chapter 841), in part  
             to free up pharmacists to perform additional duties that they had  
             been trained for and in some cases were being required to perform  
             (e.g., patient counseling).  The rationale for AB 1244 was that  
             having a PT perform non-discretionary duties that do not require  
             a pharmacist's professional training or judgment would enable the  
             pharmacist to provide more services to a larger number of  
             patients.  The Board's regulations (Title 16, Division 17,  
             Article 11, Section 1793.2) define "nondiscretionary tasks" as  
             removing the drug or drugs from stock; counting, pouring or  
             mixing pharmaceuticals; placing the product into a container;  
             affixing the label or labels to a container and; packaging and  
             repackaging.  
             
             PT applications are required to include a description of the  
             applicant's qualifications, along with supporting documentation  
             for those qualifications and applicants are required to undergo a  
             criminal background and fingerprint check.  PTs must wear  
             identification clearly identifying themselves as a PT in a  
             pharmacy and may only perform duties under the direct supervision  





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             of a pharmacist, ensuring that a pharmacist is fully aware of all  
             activities involved in the preparation and dispensing of  
             medications, including the maintenance of appropriate records. 

           b)   The Patient Protection and Affordable Care Act.  On March 23,  
             2010, President Obama signed the Patient Protection and  
             Affordable Care Act (ACA) into federal statute.  The ACA, which  
             states will begin implementing in 2014, represents one of the  
             most significant expansions and overhauls of the United States  
             health care system since the passage of Medicare and Medicaid in  
             1965.  The ACA is aimed at increasing the rate of health  
             insurance coverage for Americans and reducing the overall costs  
             of health care.  It provides a number of mechanisms including  
             mandates, subsidies and tax credits to employers and individuals  
             in order to increase the rate of people with coverage.  As a  
             result of implementation of the ACA, anywhere from 4-7 million  
             additional Californians will be eligible for health insurance  
             beginning in 2014.  It is anticipated that the newly insured will  
             increase demand for health care on an already strained system.   

           c)   Primary Care Workforce Shortage.   A number of recent studies  
             and reports have highlighted a shortage in California of primary  
             care physicians.  According to a report commissioned by the  
             California Health Care Foundation, Fewer and More Specialized:  A  
             New Assessment of Physician Supply in California, the number of  
             primary care physicians actively practicing in California is at  
             the very bottom range of, or below, the state's need.  The report  
             found that the distribution of these physicians is also poor and  
             that rural counties in particular suffer from low physician  
             practice rates and a shortage of primary care physicians.   
             According to the report, in 2008, there were 69,460 actively  
             practicing physicians in California (a figure which includes  
             Doctors of Medicine and Doctors of Osteopathic Medicine), but  
             only 35 percent of these physicians reported practicing primary  
             care.  This equates to 63 active primary care physicians in  
             patient care per 100,000 persons.  According to the Council on  
             Graduate Medical Education, which provides an ongoing assessment  
             of physician workforce trends, training issues and financing  
             policies, and recommends appropriate federal and private sector  
             efforts on these issues, a range of 60 to 80 primary care  
             physicians are needed per 100,000 in order to adequately meet the  
             needs of the population.  When the same metric is applied  
             regionally, only 16 of California's 58 counties fall within the  
             needed supply range for primary care physicians.  Less than one  
             third of Californians live in a community where they have access  
             to the health care services they need.  





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            d)   SB 493.  With the passage of SB 493 (Hernandez, Chapter 469,  
             Statutes of 2013), pharmacists are now authorized to perform  
             additional functions, according to specified requirements,  
             including: administering physician prescribed injectable  
             medications; furnishing immunizations for people ages three and  
             up if the pharmacist has completed training and follows specified  
             procedures; furnish self-administered hormonal contraceptives,  
             based on a state protocol developed jointly by the Board of  
             Pharmacy (Board) and Medical Board of California (MBC),pursuant  
             to guidelines of the Centers for Disease Control (CDC); furnish  
             nicotine replacement products in accordance with a state  
             treatment protocol developed jointly by the Board and MBC and;  
             furnish travel medications recommended by the CDC for individuals  
             traveling outside of the United States.  SB 493 also established  
             "advanced practice pharmacist" recognition, allowing such  
             pharmacists to write or issue a prescription in certain settings;  
             perform patient assessments; order and interpret drug  
             therapy-related tests; refer patients to other providers;  
             initiate, adjust and discontinue drug therapy in specific  
             circumstances, providing notification to the diagnosing  
             prescriber; and participate in the evaluation and management of  
             diseases and health conditions in collaboration with other  
             providers.  
         
         1. Prior Related Legislation.   SB 493  (Hernandez, Chapter 469,  
           Statutes of 2013) updated Pharmacy Law to authorize pharmacists to  
           perform certain functions according to specified requirements and  
           established advanced practice pharmacist (APP) recognition.

            AB 536  (Bates, Chapter 352, Statutes of 2001) increased the  
           one-to-one ratio of PTs to pharmacists to two PTs for each  
           additional pharmacist in those pharmacies with more than one  
           pharmacist and authorized a pharmacist to refuse to supervise a  
           second PT if the  pharmacist determines that a second PT would  
           interfere with the effective performance of the pharmacist's  
           responsibilities. 

            AB 1244  (Polanco, Chapter 841, Statutes of 1991) provided for  
           registration of PTs by the Board.

        2. Arguments in Support.  Supporters like the  California Hospital  
                                                 Association (CHA)  ,  California Society of Health System Pharmacists  
           (CSHSP)  ,  California Pharmacy Technician Association (CPTA)  ,  
            Providence Health & Services, Southern California  and multiple  
           individuals believe this bill will maximize the efficiency of  





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           hospital resources by allowing licensed, trained pharmacy  
           technicians perform more routine and administrative functions which  
           do not require a pharmacist's professional judgment, so that the  
           pharmacists are able to focus their time and expertise delivering  
           direct patient care.  Supporters also cite the severely outdated  
           Title 22 regulations governing hospital pharmacy practice that do  
           not recognize the evolution of the pharmacy practice.  CSHSP states  
           that the work of each pharmacy technician is checked and documented  
           by a pharmacist before any medication prepared by a technician is  
           available for patient care and notes that the pharmacy technician  
           workforce is fully licensed and regulated.   Supporters also note  
           that the modest changes in this bill to the authorized functions of  
           pharmacy technicians allow pharmacists to focus their energies on  
           patients, resulting in a better, smarter and more efficient system.

        3. Arguments in Opposition.  The  California Medical Association  (CMA)  
           has an "oppose unless amended" position on this measure.  CMA  
           believes that this bill will expand the scope of practice of  
           pharmacists to include prescribing prescription medications.  CMA  
           notes that while SB 493 expanded the role of a pharmacist and  
           established APP designation, it did not provide pharmacists the  
           ability to prescribe.  CMA believes that amendments in this bill to  
           the Controlled Substances Act would allow pharmacists to write  
           prescriptions.   
        
         
        NOTE  :  Double-referral to Health Committee (second).




        SUPPORT AND OPPOSITION:
        
         Support:  

        California Society of Health System Pharmacies (Sponsor)
        California Hospital Association
        California Narcotic Officers Association
        California Pharmacy Technician Association
        Providence Health & Services, Southern California
        A number of individuals

         Opposition:  

        California Medical Association






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        Consultant:Sarah Mason