BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1039
                                                                  Page  1

          Date of Hearing:  June 24, 2014

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                 SB 1039 (Ed Hernandez) - As Amended:  June 18, 2014

           SENATE VOTE :  32-0
           
          SUBJECT  :  Pharmacy.

           SUMMARY  :  Expands the tasks a pharmacy technician (PT) is  
          authorized to perform under the direct supervision or control of  
          a pharmacist; establishes procedures for a pharmacy to furnish a  
          dangerous drug or dangerous device to the emergency medical  
          services system (EMSS) of a licensed general acute care  
          hospital; and, makes technical changes in existing law to  
          reference new provisions related to advance practice pharmacists  
          (APP).  Specifically,  this bill  :  

          1)Clarifies that when a PT is performing packaging,  
            manipulative, repetitive, or other nondiscretionary tasks  
            while under the direct supervision of a pharmacist, that the  
            pharmacist is responsible for the duties the PT performed  
            under his or her supervision.

          2)Authorizes a pharmacy to furnish a dangerous drug or device to  
            the EMSS of a general acute care hospital for storage in  
            secured emergency pharmaceutical supplies container maintained  
            in accordance with the hospital's policies and procedures.   
            Allows a PT or intern pharmacist under the direct supervision  
            of a pharmacist to stock, replenish, and inspect the  
            hospital's emergency pharmaceutical supplies container.

          3)Requires the hospital and the pharmacy dispensing the  
            dangerous drug or device to maintain records of each request  
            by, and the dangerous drugs and devices furnished to the  
            hospital's EMSS for at least three years.  Requires controlled  
            substances to be furnished to the hospital's EMSS in  
            accordance with the California Uniform Controlled Substances  
            Act.

          4)Authorizes a pharmacy to furnish a dangerous drug or device to  
            a general acute care hospital if pursuant to preprinted or  
            electronic standing orders and protocols pursuant to the  
            policies of the hospital's governing body if the order is  
            dated, timed and authenticated in the medical record of the  







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            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.

          6)Requires a pharmacist, PT, or intern pharmacist under the  
            direct supervision of a pharmacist to inspect the drugs  
            maintained in the hospital at least once a month.  Requires  
            the person conducting the inspection pursuant to 7) above to  
            report any irregularities to the director or chief executive  
            officer of the hospital.

          7)Clarifies that a general acute care hospital or acute  
            psychiatric hospital is not required to consult a pharmacist  
            regarding repackaging and labeling of bulk cleaning agents,  
            solvents, chemicals, and nondrug hazardous substances used  
            throughout the hospital.

          8)Conforms existing law to recognize the authority of:
             a)   An APP to write or issue a prescription;
             b)   An APP or pharmacist 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; and, 
             c)   An APP or pharmacist to prescribe, furnish, or  
               administer controlled substances 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 reasonably necessary.

           EXISTING LAW  :

          1)Permits a pharmacy technician to perform packaging,  
            manipulative, repetitive or other non-discretionary tasks,  
            only while assisting, and under the direct supervision and  
            control of a pharmacist.  Prohibits a PT from performing any  
            act requiring the exercise of professional judgment by a  
            pharmacist.  

          2)Requires that a pharmacy with only one pharmacist have no more  
            than one PT performing packaging, manipulative, repetitive or  
            other non-discretionary tasks.  Establishes a ratio of two PTs  
            for each additional pharmacist, except in specified settings.   







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          3)Defines "intern pharmacist" as a person licensed by the Board  
            of Pharmacy (BOP) for a period of one to six years if he or  
            she is enrolled in a school of pharmacy recognized by the BOP,  
            two years if he or she is a graduate of a school of pharmacy  
            recognized by the nonpotentially 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 school  
            of pharmacy.  

          4)Authorizes an APP recognized by the BOP to:  
             a)   Perform patient assessments;
             b)   Order and interpret drug-therapy related tests, ensuring  
               that the ordering of those tests is done in coordination  
               with 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; 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. 

          5)Establishes the California Uniform Controlled Substances Act  
            (Controlled Substances Act) which regulates controlled  
            substances.  Permits only specified persons to write or issue  
            a prescription for a controlled substance, including, but not  
            limited to a: physician; dentist; podiatrist; veterinarian;  
            naturopathic doctor; pharmacist in certain settings or acting  
            within the scope of a health workforce pilot project  
            authorized by the Office of Statewide Health Planning and  
            Development (OSHPD); and, a registered nurse acting within the  
            scope of a health workforce pilot project authorized by OSHPD.

           FISCAL EFFECT  :  According the Senate Appropriations Committee,  
          one-time costs of $80,000 to develop and adopt regulations by  
          BOP (Pharmacy Board Contingent Fund), and ongoing enforcement  
          costs of $126,000 in 2015-16 and $83,000 per year thereafter to  







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          perform inspections and oversee enforcement actions by the BOP  
          (Pharmacy Board Contingent Fund).

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  According to the author, in response to  
            the primary care shortage in California coupled with millions  
            of newly insured individuals entering the health care market  
            as a result of implementation of the federal Patient  
            Protection and Affordable Care Act (ACA), SB 493 (Ed  
            Hernandez), Chapter 469, Statutes of 2013, was enacted.  SB  
            493 gives health care facilities greater flexibility to focus  
            their pharmacist workforce on providing patient-centered  
            services as part of a multi-disciplinary team.  This is  
            especially important given that previously uninsured patients  
            entering the health care system under the ACA will likely  
            suffer disproportionately from multiple comorbidities and have  
            low health literacy rates.  However, this flexibility is in  
            conflict with existing regulatory requirements on pharmacists  
            that have been in place for decades and that have long been  
            outdated.  Removing the burden of simple non-discretionary  
            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.   
            This bill makes more efficient use of pharmacy personnel in  
            the facility setting expanding the types of non-discretionary  
            tasks that pharmacy technicians are permitted to perform,  
            freeing up pharmacists to focus on patient care.

           2)BACKGROUND  .  A pharmacy technician is an individual who, under  
            the direct supervision and control of a pharmacist, performs  
            packaging, manipulative, repetitive, or other  
            non-discretionary tasks related to the processing of a  
            prescription in a licensed pharmacy, but exclude all functions  
            restricted to a registered pharmacist.  The BOP's regulations  
            related to PTs define "non-discretionary 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.  To work as a PT in California, current  
            registration is required.  The BOP may issue a license to high  
            school graduates or a person with a general educational  
            development (GED) certificate equivalent, and has obtained an  
            associate's degree in pharmacy technology, has completed a  
            course of training specified by the BOP, has graduated from a  







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            school of pharmacy recognized by the BOP, or is certified by  
            the Pharmacy Technician Certification Board.  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.

           3)SUPPORT  .  The California Society of Health-System Pharmacists  
            are the sponsors of the bill and state it will address several  
            outdated regulations pertaining to hospital pharmacy practice  
            that have not been updated since the 1960's, and updating the  
            tasks that can and should be performed by trained pharmacy  
            technicians frees 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 (CHA) writes that this  
            bill will permit PTs to do simple nondiscretionary activities  
            unrelated to professional judgment of pharmacists, such as  
            checking expiration dates for drug stock or repackaging or  
            labeling cleaning agents.  CHA argues that these  
            nondiscretionary activities by pharmacists still exist today  
            because of outdated Title 22 regulations which do not  
            appropriately address current workforce needs.

            The California Pharmacy Technician Association supports this  
            bill because it will utilize licensed PTs to complete certain  
            duties currently performed by licensed pharmacists but which  
            are much more suited to PTs.

           4)PREVIOUS LEGISLATION  .  SB 493 (Ed Hernandez), Chapter 469,  
            Statutes of 2013, updated the Pharmacy Law to authorize  
            pharmacists to perform certain functions and established 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  







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            pharmacist's responsibilities.

           5)DOUBLE REFERRAL  .  This bill passed out of the Assembly  
            Business, Professions and Consumer Protection (BP&CP)  
            Committee on June 17, 2014, with a vote of 14-0.

           6)TECHNICAL AMENDMENT  .  Technical amendments requested by the  
            BP&CP Committee and adopted on June 18, 2014 clarify a  
            reference to an APP's ability to order and perform patient  
            assessments and tests related to routine drug therapy-related  
            patient assessments.  In order to further clarify the  
            reference, the bill should be amended as follows:

            B&P 4052.6
            (e) A pharmacist who orders  and performs patient assessments  
            pursuant to paragraph (1) and orders  and interprets tests  
            pursuant to paragraph (2) of subdivision (a) shall ensure that  
            the ordering of those tests is done in coordination with 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.

           REGISTERED SUPPORT / OPPOSITION  :

           Support  
          California Society of Health-System Pharmacists (sponsor)
          California Pharmacy Technician Association
          California Chronic Care Coalition
          California Association of Physician Groups
          Providence Health & Services Southern California
          California Hospital Association
          Numerous Individuals
           
            Opposition  
          None received.

           Analysis Prepared by  :    Lara Flynn / HEALTH / (916) 319-2097