BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1039|
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                                    THIRD READING


          Bill No:  SB 1039
          Author:   Hernandez (D)
          Amended:  5/5/14
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM.  :  9-0, 4/21/14
          AYES:  Lieu, Wyland, Berryhill, Block, Corbett, Galgiani,  
            Hernandez, Hill, Padilla

           SENATE HEALTH COMMITTEE  :  7-0, 4/30/14
          AYES:  Hernandez, Morrell, De Le�n, DeSaulnier, Evans, Monning,  
            Wolk
          NO VOTE RECORDED:  Beall, Nielsen

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/19/14
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    Pharmacies:  furnishing drugs

          SOURCE  :     California Association of Physician Groups
                      California Society of Health-System Pharmacists 


           DIGEST  :    This bill makes changes to the authorized tasks of a  
          pharmacy technician (PT) under the direct supervision or control  
          of a pharmacist.

           ANALYSIS  :    

          Existing law, the Business and Professions Code:

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           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.  

           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 PT 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. 

           3. Requires the Board to adopt regulations to specify tasks  
             that a PT may perform under the supervision of a pharmacist.   
             Requires any pharmacy that employs a PT to 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.  

           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 as specified.

           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.  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.  

           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  

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             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. 

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

           8. Permits pharmacists in a number of specified settings to (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; and (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).  Specifies that a patient's treating prescriber may  
             prohibit pharmacists from making any changes or adjustments  
             to patients' drug regimens.

           9. Authorizes an advanced practice pharmacist (APP) recognized  
             by the Board to (a) perform patient assessments; (b) order  
             and interpret drug-therapy related tests, as specified; (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; and (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. 


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           10.Requires an APP who adjusts or discontinues drug therapy to  
             promptly transmit written notification to the patient's  
             diagnosing prescriber or enter the appropriate information  
             into a patient record system shared with the prescriber.   
             Requires an APP who initiates drug therapy to 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.  

           11.Requires an APP to register with the Drug Enforcement  
             Administration prior to initiating or adjusting a controlled  
             substance.  

          Existing law, the Health and Safety Code:

          1.Establishes the California Uniform Controlled Substances Act  
            (Controlled Substances Act) which regulates controlled  
            substances. 

          2.Specifies that no person other than the following shall write  
            or issue a prescription for a controlled substance: 

                 A physician, dentist, podiatrist, veterinarian, or  
               naturopathic doctor; or 

                 A pharmacist in specified settings or acting within the  
               scope of a health workforce pilot project authorized by the  
               Office of Statewide Health Planning and Development; 

                 A registered nurse acting within the scope of a health  
               workforce pilot project authorized by the Office of  
               Statewide Health Planning and Development;

                 A certified nurse-midwife, as specified.

                 A nurse practitioner, as specified;

                 A physician assistant, as specified;

                 An optometrist according to certain requirements; or 

                 An out-of-state prescriber in emergency situations, if  
               his/her licensing classification is same as a license in  
               California that would permit prescribing of drugs or  

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               devices. 

          1.Authorizes the above to prescribe for, furnish to, or  
            administer controlled substances to his/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/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.

          2.Provides for the licensure and inspection of health  
            facilities, including general acute care hospitals by the  
            Department of Public Health.  Defines a licensed general acute  
            care hospital as a health facility having a duly constituted  
            governing body, as specified, and an organized medical staff  
            providing 24-hour inpatient care, including medical, nursing,  
            surgical, anesthesia, laboratory, radiology, pharmacy, and  
            dietary services.



          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 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  

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            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 Controlled Substances Act.

          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 the hospital to store and maintain drugs in  
            accordance with national standards regarding the storage area  
            and refrigerator or freezer temperature, and otherwise  
            pursuant to manufacturer's guidelines. 

          6.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.  

          7.Requires a licensed general acute care hospital, as defined,  
            to adopt policies and procedures regarding the responsibility  
            for ensuring 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.

          8.Adds an APP to the list of those authorized to prescribe  
            controlled substances under the Controlled Substances Act. 

          Background
           
           PTs  .  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  

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          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 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 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. 

           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; furnishing self-administered hormonal  
          contraceptives, based on a state protocol developed jointly by  
          the Board of Pharmacy and Medical Board of California (MBC),  
          pursuant to guidelines of the Centers for Disease Control;  
          furnishing nicotine replacement products in accordance with a  
          state treatment protocol developed jointly by the Board and MBC;  
          and furnishing travel medications recommended by the Centers for  
          Disease Control for individuals traveling outside of the United  
          States.  SB 493 also established APP 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; and participate in the evaluation and management  
          of diseases and health conditions in collaboration with other  
          providers.  

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           Comments
           
          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, SB 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 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.

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

          According to the Senate Appropriations Committee:

           One-time costs of $80,000 to develop and adopt regulations by  
            the Board (Pharmacy Board Contingent Fund).

           Ongoing enforcement costs of $126,000 in 2015-16 and $83,000  
            per year thereafter to perform inspections and oversee  
            enforcement actions by the Board (Pharmacy Board Contingent  
            Fund).

           SUPPORT  :   (Verified  5/20/14)

          California Association of Physician Groups (co-source) 
          California Society of Health-System Pharmacists (co-source) 
          California Chrome Care Coalition

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          California Hospital Association
          California Narcotic Officers Association
          California Pharmacy Technician Association
          Providence Health & Services, Southern California

           ARGUMENTS IN SUPPORT  :    The California Society of Health-System  
          Pharmacists states that this bill addresses several outdated  
          regulations that have not been updated since the 1960s, and will  
          free up hospital-based pharmacists to spend more time directly  
          working with physicians and nurses to assure the safest and most  
          effective care of the patient.

          The California Hospital Association and Providence Health &  
          Services, Southern California writes that unnecessary use of  
          health care personnel, such as those non-discretionary  
          activities pharmacists are required to do now, drive  
          inefficiencies and high costs, which is contrary to ensuring  
          continued achievement of meeting the goals of the Affordable  
          Care Act to improve quality and limit costs.


          MW:nl  5/20/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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