Arizona House of Representatives Committee on Regulatory Affairs Meeting Minutes and Bill Analyses

Summary

A report of the regular meeting of the Arizona House of Representatives Committee on Regulatory Affairs held Monday, February 10, 2020 in the Fifty-fourth Legislature, Second Regular Session. The minutes list the members present and absent and record committee action on five bills, with HB2269 reported do pass amended by a vote of 6-0-0-1 and HB2643, HB2599, HB2601 and HB2685 each reported do pass by 7-0-0-0. Attached are the original agenda with bill short titles and sponsors, a Request to Speak report giving positions and comments submitted on each bill, and a committee attendance record. The packet also contains staff summaries of the bills, including HB2269 on donated medicine, which repeals and rewrites the statute on the prescription medicine donation program and sets conditions for accepting, transferring, returning or destroying donated medicine.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

COMMITTEE ON REGULATORY AFFAIRS
Report of Regular Meeting
Monday, February 10, 2020
House Hearing Room 5 -- 2:00 P.M.

Convened 2:39 P.M.

Recessed MINUTES RECEIVED

Reconvened CHIEF CLERK'S OFFICE

Adjourned 3:13 P.M. o-| ora O
Members Present Members Absent

Mr. Blackman

Ms. Powers Hannley

Mr. Shah

Mrs. Teran

Mr. Toma

Mr. Roberts, Vice-Chairman
Mr. Grantham, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

Bill Action Vote Attachments
HB2269 DPA 6-0-0-1 4,5,6
HB2643 DP 7-0-0-0 7,8

HB2599 DP 7-0-0-0 9,10

HB2601 DP 7-0-0-0 11,12
HB2685 DP 7-0-0-0 13,14

Susan Hite, Committee Secretary
February 12, 2020

(Original attachments on file in the Office of the Chief Clerk; video archives available at http:/Avww.azleg.gov)

COMMITTEE ON REGULATORY AFFAIRS
February 10, 2020
3A cm

ARIZONA HOUSE OF REPRESENTATIVES ,
Fifty-fourth Legislature - Second Regular Session AK

REGULAR MEETING AGENDA

COMMITTEE ON REGULATORY AFFAIRS

DATE Monday, February 10, 2020 ROOM HHR5 TIME 2:00 P.M.
Members:
Mr. Blackman Mrs. Teran Mr. Roberts, Vice-Chairman
Ms. Powers Hannley Mr. Toma Mr. Grantham, Chairman
Mr. Shah
Bills Short Title Strike Everything Title
by \  HB2269 donated medicine; requirements

(Barto: Bolick, Cobb)
let?-D-| HHS dpa 9-0-0-0-0, RA, RULES

44 3 HB2599 0 0 psychologists; licensure requirements

(Roberts: Biasiucci, Carroll, et al)

1 D 0-0 RA, HHS, RULES
Ay uf HB2601 D 0 residential utility consumer office; continuation

(Roberts)
7 ~~ 0) RA, RULES

ps AY HB2643 » 0 insurance; optometrists; contracts; covered services

(Weninger: Blackman, Cobb, et al)
1-0-0) (4 COM, RULES

Ae 5 HB2685 c 0 government assistance; point of contact

(Toma: Kern, Petersen, et al)

7 D DO RA, RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN
Attachment__{_

sh
02/04/2020

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or

assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 1 of 1
Information Registered on the Request to Speak System

House Regulatory Affairs (2/10/2020)

HB2269, donated medicine: requirements

Testified in support:
Joan Koerber-Walker, representing self; Frank Thorwald, representing self; Kam Gandhi - Arizona State Board of
Pharmacy, Arizona State Board Of Pharmacy

Support:

Terrance Traylor, representing self; Jose Borrajero, representing self; Laura Dearing, The Arizona Academy Of
Family Physicians; Denise Link, PhD, WHNP, representing self; Kay Reardon, representing self; Lynne Weaver,
representing self; Jere Fredenburgh, representing self; Rose Sperry, representing self; Jered Skousen, representing
self; James Dutton , representing self; Christine Maceri Genge, representing self; Dennis Genge, representing self;
John Morris, representing self; Jennifer Wellsman, representing self; Joseph Abate, PHARMACEUTICAL RESEARCH
& MANUFACTURERS OF AMERICA; Brent Backus, representing self; JoAnn Dutton, representing self; richard sperry,
representing self; George Moriarty, representing self; Walter Steiner, representing self; Jerry Clingman,
representing self; Lelann Anderson, representing self; Ed Sangalli, representing self; Bob Jolley, representing self

Oppose:

Karen Harris, representing self

All Comments:

Joan Koerber-Walker, Self: Requesting to speak last so that | can answer any remaining technical questions the
committee may have.; Frank Thorwald, Self: | request to speak first to provide an overview. This is an excellent bill
that will help many people. It is a complication of what has worked the best in States with ongoing and effective
programs; Denise Link, PhD, WHNP, Self: This is very helpful - many times | had good meds that could be used by
others in licensed community agencies but could not send them b/c that was prohibited by law.; Jere Fredenburgh,
Self: Makes perfect sense...if someone no longer needs, or passes, the meds are still good and should not be
wasted. thank you.; Jered Skousen, Self: Alows donations of unused medications.; Brent Backus, Self: support the
donations concept provided controls are put into place.; Leiann Anderson, Self: Common sense bill.

HB2599, psychologists: licensure requirements

Testified in support:
Katie Franquist, UNIVERSITY OF ARIZONA

Support:

Katy Yanez, NORTHERN ARIZONA UNIVERSITY; Brittney Kaufmann, AZ BOARD OF REGENTS; Kendra Burton, AZ
STATE UNIVERSITY

Attachment_ 2.
HB2601, residential utility consumer office: continuation

Support:
Russell Smoldon, AZ MUNICIPAL POWER USERS ASSN; Dianne Post, representing self; Virginia Dotson, representing
self

Oppose:

Nancy Santori, representing self

All Comments:
Virginia Dotson, Self: Utility consumers do need a strong advocate.

HB2643, insurance: optometrists: contracts: covered services

Testified in support:
Marie Isaacson, AZ OPTOMETRIC ASSN; Robert Holden, NATIONAL ASSOCIATION OF VISION CARE PLANS

Support:

Don Isaacson, AZ OPTOMETRIC ASSN; Julian Roberts, NATIONAL ASSOCIATION OF VISION CARE PLANS; Blake
Johnson, AVESIS; Barbara Meaney, NATIONAL ASSOCIATION OF VISION CARE PLANS; Annette Hanian, representing
self; Stacey Meier, representing self; Mark Cardenas, AZ OPTOMETRIC ASSN

All Comments:

Robert Holden, NATIONAL ASSOCIATION OF VISION CARE PLANS: Supportive with the House Commerce
Committee amendment.; Julian Roberts, NATIONAL ASSOCIATION OF VISION CARE PLANS: Supportive with the
House Commerce Committee amendment.; Blake Johnson, AVESIS: Supportive with the House Commerce
Committee amendment.; Barbara Meaney, NATIONAL ASSOCIATION OF VISION CARE PLANS: Supportive with the
House Commerce Committee amendment.; Annette Hanian, Self: Representing AZ Optometric Assoc

HB2685, government assistance; point of contact

Support:

Jon Riches, representing self; Dave Kopp, Manager, AZ CITIZENS DEFENSE LEAGUE INC; Jenna Bentley, BARRY
GOLDWATER INSTITUTE FOR PUBLIC POLICY RESEARCH; Spencer Kamps, HOME BUILDERS ASSOCIATION OF
CENTRAL AZ

ARIZONA STATE LEGISLATURE
Fifty-fourth Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON REGULATORY AFFAIRS

CHAIRMAN: Travis W. Grantham VICE-CHAIRMAN: Bret Roberts
ASPECAAL ®

DATE Jax 120|ahe 120|4/p 120| 120,20
CONVENED 204 FM 9:34eM) Bom m m
RECESSED
RECONVENED
ADJOURNED BALAN 4 . ), 3 Lo oh
MEMBERS
Blackman “|v 4
Powers Hannley 4 V ~
Shah Yily a
Teran 4 Y ae
Toma "A \/ Y
Roberts, Vice-Chairman Vv VY i
Grantham, Chairman v iv ww
v Present --- Absent exc Excused

Attachment_3

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session
House: HHS DPA 9-0-0-0

HB 2269: donated medicine; requirements
Sponsor: Representative Barto, LD 15
Committee on Regulatory Affairs

Overview
Repeals and rewrites the statute regarding the prescription medicine donation program.

History
As of late 2018, 38 states and Guam had enacted laws for donation of unused prescription drugs,

although many of those states do not have functioning medicine donation programs (NCSL).

Arizona enacted law establishing a prescription medicine donation program in 2006 (NCSL).
Currently, statute allows a person, manufacturer or health care institution to donate medication to
any physician's office, pharmacy or hospital that volunteers to participate in the program and
meets requirements established by the Arizona State Board of Pharmacy (Board). Donated
medications must have an expiration date of greater than six months after the donation, recipients
must be residents of Arizona and meet eligibility standards established by the Board, and health
care institutions that participate must Inspect donated medicine. Additionally, manufacturers and
participants of the program are not subject to liability or professional disciplinary action. Statute
also prohibits dispensers of donated medicine from seeking reimbursement for donations and
prohibits third party payors from providing reimbursement (A.R.S. § 32-1909).

Provisions
1. Repeals the current statute regarding the prescription medicine donation program. (Sec. 1)

2. Allows an authorized recipient to receive donated medicine after:
a) Verifying that the donor is authorized to possess the medicine;
b) Recording the donor's name, address, telephone number and permit or license number;
and
c) Verifying that the donor will remove patient names on donations or otherwise maintain
patient confidentiality. (Sec. 2)

3. Permits an authorized recipient to transfer donations to another authorized recipient. (Sec. 2)

4. Stipulates that recipients may only accept donated medicine that:
a) Is in unopened, tamper-evident packaging or that has been appropriately repackaged;
b) Is not adulterated or misbranded;
c) Has been maintained according to U.S. Food and Drug Administration (FDA) standards;
and
d) Is accompanied by a donor attestation that the donation has been kept in a temperature-
controlled environment and is not adulterated. (Sec. 2)

5. Requires donated medicine that does not meet requirements to be returned to the donor or
properly destroyed. (Sec. 2)

CJ Prop 105 (45 votes} 0 Prop 108 (40 votes) © Emergency (40 votes) Fiscal Note

Initials G/ML Attachment_+4 Regulatory Affairs

6. Requires a drug manufacturer, repackager, dispenser or wholesaler that participates in the
program to comply with federal code on drug supply chain security. (Sec. 2)

7. Outlines requirements on the reception, storage, inspection and dispensing of donated
medicine. (Sec. 2)

8. Stipulates that when muitiple donated medicines with varied expiration dates are repackaged
together, the label must express the earliest expiration date. (Sec. 2)

9. Asserts that dispensed medicine must have an expiration date that is later than the date by
which the medicine is expected to be used based on the prescribing directions. (Sec. 2)

10. Specifies that a recipient may only dispense or administer donated medicine if otherwise
allowed by law, pursuant to a valid prescription drug order. (Sec. 2)

11. Specifies that participation in the program does not require licensing as a wholesale
distributor. (Sec. 2)

12. Prohibits the resale of donated medicine. (Sec. 2)

13. Allows an authorized recipient to charge a handling, dispensing or administrative fee for
donated medicine according to rules prescribed by the Board. (Sec. 2)

14, Requires an authorized recipient to comply with federal recordkeeping requirements and to
retain records for at least seven years. (Sec. 2)

15. Specifies that a donation's history must begin with the donor of the medicine, include all prior
donations and include only drug information required to be on the patient label. (Sec. 2)

16. Requires a donor or recipient to make all records available for audit by the board within five
days of the board's request. (Sec. 2)

17. Provides immunity, if acting in good faith, to the following:
a) A person or entity involved in the supply chain of donated medicine; and
b) A person or entity that prescribes, donates, receives, dispenses, administers, transfers,

replenishes or repackages donated medicine. (Sec. 2)

18. Defines authorized recipient, donor, eligible patient, health care professional, medicine,
returns processor and unopened tamper-evident packaging. (Sec. 2)

Amendments

Committee on Health & Human Services

1.

Clarifies that donations must be maintained in accordance and in compliance with FDA
standards.

initials IG/ML Regulatory Affairs

ony DO Be W MH ee

Fifty-fourth Legislature Regulatory Affairs
Second Regular Session H.B. 2269

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2269
(Reference to printed bill)

Page 2, between lines 35 and 36, insert:
"” DONATED MEDICINE MAY NOT BE DISPENSED OR ADMINISTERED TO AN

ELIGIBLE PATIENT IF THE PRESCRIBER WRITES OR CLEARLY DISPLAYS ON THE FACE
OF THE PRESCRIPTION FORM "DAW", "DISPENSE AS WRITTEN" OR ANY OTHER LANGUAGE
THAT INDICATES A SUBSTITUTION IS NOT ALLOWED."

Reletter to conform |

Page 4, line 3, after "AY insert "MANUFACTURER, ™

Amend title to conform

TRAVIS W. GRANTHAM

2269GRANTHAM
02/05/2020
05:40 PM

C: mh

Attachment. s

| Analysts

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Regulatory Affairs BILL NO, HB 2269

DATE February 10, 2020 MOTION: OPA

PASS AYE NAY PRESENT | ABSENT

Blackman

Powers Hanniey

Shah

Teran

wv

Toma

Roberts, Vice-Chairman

Grantham, Chairman

ESN) OSNIN<NE

O O |

APPROVED: COMMITTEE SECRETARY

TRAVIS W. GRANTHAN, Chairman
BRET ROBERTS, Vice-Chairman

ATTACHMENT.___ &

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2643: insurance; optometrists; contracts; covered services
Sponsor: Representative Weninger, LD 17
Committee on Regulatory Affairs

Overview

States that a contract between an optometrist and a specified health insurer, cannot require the
optometrist to provide services based on a fee set by the specified health insurer unless the fee
applies to a covered service.

History
An Optometric Service Corporation (Corporation) is a corporation organized for the purpose of

establishing, maintaining and operating nonprofit optometric service plans. The Corporation
contracts with general, specialized or restricted practice optometrists to provide subscribers with
optometric services (A.R.S. § 20-822).

A Health Care Services Organization (Organization) is a person who undertakes the conducting
of one or more health care plans. An Organization includes a provider sponsored health care
services organization (A.R.S. § 20-1051).

Statute outlines the scope and format of a policy with a Disability Insurer, Group Disability Insurer
or a Blanket Disability Insurer (Disability Insurers) (A.R.S. § 20-1342) & (A.R.S. § 20-1401).

Provisions
1. States that a contract entered into or renewed by January 1, 2021, between an optometrist
and:

a) A Corporation cannot require the optometrist to provide services to an individual covered
under a subscription contract based on a fee set by the Corporation unless the fee applies
to a covered service;

b) An Organization cannot require the optometrist to provide services to an individual
covered under an evidence of coverage based on a fee set by the Organization unless
the fee applies to a covered service; and

c) Disability Insurers cannot require the optometrist to provide services to an individual
covered under a Disability Insurer's policy based on a fee set by the Disability Insurers
unless the fee applies to a covered service. (Sec. 1-4)

2. States that the ability of a Corporation, an Organization or Disability Insurers to establish
optometric benefits for services offered by plans that are administered but not insured by a
Corporation, an Organization or Disability Insurers is not restricted. (Sec. 1-4)

3. Defines covered service as a service for which any reimbursement is available under a
subscription contract, an evidence of coverage or Disability Insurers policy without regard to
contractual limitations. (Sec. 1-4)

0) Prop 105 (45 votes) Oj Prop 108 (40 votes) 4 Emergency (40 votes) 1 Fiscal Note

Initials JR Attachment_‘T__ Regulatory Affairs
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Regulatory Affairs BILL NO. HB 2643

DATE February 10, 2020 MOTION: \) f

PASS AYE NAY PRESENT | ABSENT

Blackman \ /

Powers Hannley Y

Shah V/

Teran Vv

Toma VA

Roberts, Vice-Chairman V

Grantham, Chairman VA

“) O O O
ev noob

APPROVED: ~GPMMITTEE SECRETARY
TRAVIS W. GRANTHAM, Chairman

BRET ROBERTS, Vice-Chairman

ATTACHMENT

Attachment_ ¢
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2599: psychologists; licensure requirements
Sponsor: Representative Roberts, LD 11
Committee on Regulatory Affairs

Overview
States that the Psychological Clinical Science Accreditation System is an acceptable accreditation
for a psychology license applicant (Applicant).

History
An Applicant must have a doctoral degree from a higher education institution (Institution) in clinical

or counseling psychology, school or educational psychology or any other subject area in applied
psychology acceptable to the Board of Psychologist Examiners. Statute outlines specified
requirements for an Institution's doctoral psychology program which include: 1) accreditation from
regional accrediting agencies; 2) identifiable psychology faculty; and 3) a core program that
requires certain graduate semester hours in certain content areas. Applicants are also required
to acquire 3,000 hours of supervised professional work experience (A.R.S. § 32-2071).

An Applicant meets the requirements of statute if the Applicant earned a doctoral degree from a
program that was accredited by the American Psychology Association, Office of Program
Consultation and Accreditation at the time of graduation (A.R.S. § 32-2071.01).

Provisions
1. States that the Psychological Clinical Science Accreditation System is an acceptable
accreditation for an Applicant. (Sec. 1)

U3 Prop 105 (45 votes) {J Prop 108 (40 votes) © Emergency (40 votes) Fiscal Note

Initials JR Attachment_9_ Regulatory Affairs
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Regulatory Affairs BILL NO. HB 2599
DATE February 10, 2020 MOTION: | P
PASS AYE NAY PRESENT | ABSENT
Blackman S
Powers Hannley 4
Shah V
Teran VA
Toma WA
Roberts, Vice-Chairman V
Grantham, Chairman VY
“| O O |O
QanoBo bel
APPROVED: ~CMMITTEE SECRETARY
RR A/OR———_>
TRAVIS W. GRANTHAM, Chairman’
BRET ROBERTS, Vice-Chairman
ATTACHMENT lo

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

RR Sa RT NR A TE

HB 2601: residential utility consumer office; continuation
Sponsor: Representative Roberts, LD 11
Committee on Regulatory Affairs

Overview
Continues the Residential Utility Consumer Office (RUCO) for eight years.

History
Pursuant to A.R.S. § 41-2953, the Joint Legislative Audit Committee assigned the sunset review

of RUCO to the Senate Commerce and the House of Representatives Regulatory Affairs
Committee of Reference (COR). The Senate Commerce COR met on January 14, 2020 and
recommended that RUCO be continued for eight years, until July 1, 2028. The House Regulatory
Affairs COR met on January 16, 2020 and recommended that RUCO be continued for eight years,
until July 1, 2028.

Laws 1983, Chapter 308 established RUCO to represent the interests of residential consumers
and advocate on their behalf in rate-related regulatory proceedings that involve public services
corporations before the Arizona Corporation Commission (ACC). The ACC sets the rates for
electricity, gas, telecommunications, water and sewer utilities. RUCO conducts a preliminary
review of every utility rate increase application filed with the ACC and determines the potential
impact on residential consumers. The Director of RUCO is appointed and serves at the pleasure
of the Governor upon confirmation by the Senate. RUCO was most recently continued for 10
years pursuant to Laws 2010, Chapter 16.

Provisions
1. Continues, retroactive to July 1, 2020, RUCO until July 1, 2028. (Sec. 2, 4)

2. Repeals RUCO on January 1, 2029. (Sec. 2)
3. Contains a legislative intent clause. (Sec. 3)

CL} Prop 105 (45 votes) 1 Prop 108 (40 votes) © Emergency (40 votes) 1 Fiscal Note

Initials JR/LB Attachment_\1\_ Regulatory Affairs
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Regulatory Affairs BILL NO. HB 2601 __
DATE February 10, 2020 MOTION: | )§
PASS AYE NAY PRESENT | ABSENT

Blackman V

Powers Hannley VY

Shah Vv

Teran \4

Toma VY

Roberts, Vice-Chairman Vv

Grantham, Chairman VA

110 QO |O

APPROVED:

a Of

TRAVIS W. GRANTHAM, Chairman
BRET ROBERTS, Vice-Chairman

COMMITTEE SECRETARY

ATTACHMENT. 24

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

RN A IS I RE I A a RT

HB 2685: government assistance; point of contact
Sponsor: Representative Toma, LD 22
Committee on Regulatory Affairs

Overview
Requires any written communication between a city, town or state agency and a person to include
contact information for the employee concerning the specified communications.

History
Each state agency must publish the names of employees, who are designated by the agency to

assist members of the public, in the register, the state directory and the Maricopa County
telephone directory (A.R.S. 41-1006).

Provisions
1. Requires a city, town or state agency, in a written communication, to provide the name,
telephone number and email address of an authorized employee who is able to provide
information about the communication if the communication:
a) Demands payment of a tax, fee penalty, fine or assessment; or
b) Denies an application for a permit or license that is issued by the city, town or state agency.
(Sec. 1, 2)

2. Requires an authorized employee, after any of the aforementioned communications, to reply
within five business days upon receiving a communication from the recipient. (Sec. 1, 2)

(3 Prop 105 (45 votes) L} Prop 108 (40 votes} 0 Emergency (40 votes) 1 Fiscal Note

Initials JR/LB Attachment_|3_ Regulatory Affairs

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Regulatory Affairs BILL NO. HB 2685 _

DATE February 10, 2020 MOTION: { )¢

PASS

NAY PRESENT | ABSENT

Blackman

Powers Hanniey
Shah

Teran

Toma

Roberts, Vice-Chairman

Grantham, Chairman

INK i<i<i<i<i< x

O

0 O
APPROVED: COMMITTEE SECRETARY
TRAVIS W. GRANTHAM, Chairman

BRET ROBERTS, Vice-Chairman

ATTACHMENT___!4

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