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F I S C A L I M P A C T R E P O R T

SPONSOR Heaton

ORIGINAL DATE

LAST UPDATED

1/19/07

3/6/07 HB 46/aHCPAC/aHJC

SHORT TITLE

Prescription Drug Donation Program

SB

ANALYST C. Sanchez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Pharmacy Board (RLD)

SUMMARY

Synopsis of HJC Amendment

The House Judiciary Committee amendment for HB 46 removes the liability waiver section for

pharmacies and drug manufacturers. The manufacturers’ liability waiver was an amendment in

HCPAC. The amendment also defines prescription medicine as a dangerous drug. There are

form requirements for a recipient of a donated drug to sign. The form was modified by removing

the reference to the immunity provisions of the program since those provisions were struck in

this amendment.

Synopsis of HCPAC Amendment

On page 5, between lines 9 and 10, insert the following new subsection:

“K. In the absence of bad faith, pharmaceutical manufacturers shall be immune from civil or

criminal liability for any claim or injury, death or loss to person or property arising from the

transfer, donation, dispensing or acceptance of any prescription drug donated to this program

pursuant to the provisions of this act, including liability for failure to transfer or communicate

product or consumer information regarding the transferred drug, as well as the expiration date of

the transferred drug.".

House Bill 46/aHCPAC/aHJC – Page

2

Synopsis of Original Bill

House Bill 46 creates a new section of the Drug, Device and Cosmetic Act allowing for a drug

repository program where pharmaceuticals may be donated/re-dispensed through pharmacies

(includes clinics) licensed pursuant to the Pharmacy Act and for qualified patients. Eligibility

standards will be determined by economic need. The donated/re-used pharmaceuticals must be in

tamper-evident packaging. The Pharmacy Board will maintain a list of participating pharmacies.

Liability is waived for pharmacies dispensing donated pharmaceuticals and for the person

donating such medications when acting in good faith.

FISCAL IMPLICATIONS

Fiscal implications to the Board will be minimal

SIGNIFICANT ISSUES

The safe destruction of pharmaceuticals is a major concern of the Board. Studies have shown

significant levels of pharmaceuticals in our nation’s water supply including the Rio Grande.

What percentage of this is from pharmaceuticals destroyed via the sewage system is unknown.

Programs to allow the re-use of pharmaceuticals, that otherwise would have to be destroyed, are

being implemented in other states (approximately 22 states).

Various states have enacted legislation allowing for “drug repositories". The programs are

typically limited to serving specific eligibility groups (uninsured, indigent, limited resources,

cancer, charitable or needy persons abroad).

ADMINISTRATIVE IMPLICATIONS

The Board of Pharmacy would adopt regulations specifying the benefactor groups for this

program. The regulations would also include any other standards deemed necessary by the

Board. Lists of participating pharmacies and eligibility requirements would be maintained on the

Board’s web site.

OTHER SUBSTANTIVE ISSUES

The Board of Pharmacy suggests adding waiver of liability for drug manufacturers, which was

inadvertently omitted from the original Bill.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The Board of Pharmacy would be limited in its ability to create a drug repository program. The

Board has already enacted regulations specific for the re-use of pharmaceuticals in this state’s

correctional facilities.

CS/nt