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ADDS license, and drugs and devices dispensed from the ADDS
shall be considered to have been dispensed by that pharmacy.
(e) (1) The stocking and restocking of an ADDS shall be
performed by a pharmacist, or by a pharmacy technician or
intern pharmacist under the supervision of a pharmacist, except
for an ADDS located in a health facility licensed pursuant to
Section 1250 of the Health and Safety Code, where the stocking
and restocking of the ADDS may be performed in compliance
with Section 1261.6 of the Health and Safety Code.
(2) Access to the ADDS shall be controlled and tracked using an
identification or password system or biosensor.
(3) The ADDS shall make a complete and accurate record of all
transactions that includes all users accessing the system and all
drugs added to, or removed from, the system.
(f) If drugs or devices are not immediately transferred into an
ADDS upon arrival at the ADDS location, the drugs and devices
shall be stored for no longer than 48 hours in a secured room
within the ADDS location approved by the board under Section
4427.3. Upon retrieval of these drugs and devices from secured
storage, an inventory shall be taken to detect any losses or
overages.
4427.5. Personnel Training Required
Prior to installation, and annually thereafter, the pharmacy
holding the ADDS license shall provide training on the operation
and use of the ADDS to pharmacy personnel and to personnel
using the ADDS at the location where the ADDS is placed
pursuant to subdivision (b) of Section 4427.3.
4427.6. Requirements for Using APDS
In addition to any other requirements imposed by this article, an
APDS shall additionally meet the following requirements:
(a) The pharmacy shall develop and implement, and review
annually, written policies and procedures pertaining to the APDS,
including all of the following:
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(1) Maintaining the security of the APDS and the dangerous
drugs and dangerous devices within that APDS.
(2) Determining and applying inclusion criteria regarding which
drugs and devices are appropriate for placement in the APDS and
for which patients.
(3) Ensuring that patients are aware that consultation with a
pharmacist is available for any prescription medication, including
for those delivered via the APDS.
(4) Describing assignment of responsibilities to, and training of,
pharmacy personnel, and other personnel using the APDS at the
location where the APDS is placed pursuant to subdivision (b) of
Section 4427.3, regarding maintenance and filing procedures for
the APDS.
(5) Orienting participating patients on the use of the APDS,
notifying patients when expected prescription medications are
not available in the APDS, and ensuring that patient use of the
APDS does not interfere with delivery of drugs and devices.
(6) Ensuring delivery of drugs and devices to patients expecting
to receive them from the APDS in the event the APDS is disabled
or malfunctions.
(b) The APDS shall only be used for patients who have signed a
written consent form demonstrating their informed consent to
receive prescribed drugs and devices from an APDS, and whose
use of the APDS meets inclusion criteria established pursuant to
subdivision (a).
(c) The APDS shall have a means to identify each patient and
only release the identified patient’s drugs and devices to the
patient or the patient’s agent.
(d) A pharmacist licensed by the board shall perform all clinical
services conducted as part of the dispensing process, including,
but not limited to, drug utilization review and consultation.
(e) Drugs shall be dispensed from the APDS only upon
authorization by a licensed pharmacist after the pharmacist has
reviewed the prescription and the patient’s profile for potential
contraindications and adverse drug reactions.
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(f) All prescribed drugs and devices dispensed to a patient from
an APDS for the first time shall be accompanied by a consultation
conducted by a pharmacist licensed by the board via a
telecommunications link that has two-way audio and video.
(g) The APDS shall include a notice, prominently posted on the
APDS, providing the name, address, and phone number of the
pharmacy that holds the ADDS license for that APDS.
(h) The labels on all drugs and devices dispensed by the APDS
shall comply with Section 4076 and with Section 1707.5 of Title
16 of the California Code of Regulations.
(i) Any incident involving the APDS where a complaint, error, or
omission has occurred shall be reviewed as part of the
pharmacy’s quality assurance program pursuant to Section 4125.
(j) An APDS may be located and operated in a medical office or
other location where patients are regularly seen for purposes of
diagnosis and treatment, and the APDS is only used to dispense
dangerous drugs and dangerous devices to patients of the
practice.
(k) The board shall not issue a pharmacy more than 15 ADDS
licenses for APDS units. Consistent with Section 4001.1, the
board, by regulation, may reduce the number of ADDS licenses a
pharmacy may be issued for APDS units.
(l) The pharmacy holding the ADDS license for an APDS shall
maintain the policies and procedures developed pursuant to
subdivision (a) for three years after the last date of use of that
APDS.
4427.65. Locations and Requirements for Operating Automated
Unit Dose System (AUDS)
(a) In addition to the locations authorized in Section 4427.3, an
automated unit dose system (AUDS) may also be located and
operated in either of the following locations:
(1) A facility licensed by this state with the statutory authority to
provide pharmaceutical services.
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(2) Jail, youth detention facility, or other correctional facility
where drugs are administered within the facility under the
authority of the medical director.
(b) The pharmacy operating the AUDS shall develop and
implement, and review annually, written policies and procedures
pertaining to the device.
(c) The pharmacy shall operate the AUDS in compliance with the
following requirements:
(1) Transaction information shall be made readily available in a
written format for review and inspection by individuals
authorized by law. These records shall be maintained in the
facility for a minimum of three years.
(2) Individualized and specific access to automated drug delivery
systems shall be limited to facility and contract personnel
authorized by law to administer drugs.
(3) (A) The facility and the pharmacy shall develop and
implement written policies and procedures to ensure safety,
accuracy, accountability, security, patient confidentiality, and
maintenance of the quality, potency, and purity of stored drugs.
Policies and procedures shall define access to the automated
drug delivery system and limits to access to equipment and
drugs.
(B) All policies and procedures shall be maintained at the
pharmacy operating the automated drug delivery system and the
location where the automated drug delivery system is being
used.
(4) When used as an emergency pharmaceutical supplies
container, drugs removed from the automated drug delivery
system shall be limited to the following:
(A) A new drug order given by a prescriber for a patient of the
facility for administration prior to the next scheduled delivery
from the pharmacy, or 72 hours, whichever is less. The drugs
shall be retrieved only upon authorization by a pharmacist and
after the pharmacist has reviewed the prescriber’s order and the
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patient’s profile for potential contraindications and adverse drug
reactions.
(B) Drugs that a prescriber has ordered for a patient on an as-
needed basis, if the utilization and retrieval of those drugs are
subject to ongoing review by a pharmacist.
(C) Drugs designed by the patient care policy committee or
pharmaceutical service committee of the facility as emergency
drugs or acute onset drugs. These drugs may be retrieved from
an automated drug delivery system pursuant to the order of a
prescriber for emergency or immediate administration to a
patient of the facility. Within 48 hours after retrieval under this
paragraph, the case shall be reviewed by a pharmacist.
(5) When used to provide pharmacy services pursuant to
Section 4017.3 and this article, the automated drug delivery
system shall be subject to all of the following requirements:
(A) Drugs removed from the automated drug delivery system for
administration to a patient shall be in properly labeled units of
administration containers or packages.
(B) A pharmacist shall review and approve all orders prior to a
drug being removed from the automated drug delivery system
for administration to a patient. The pharmacist shall review the
prescriber’s order and the patient’s profile for potential
contraindications and adverse drug reactions.
(C) The pharmacy providing services to the facility pursuant to
this article shall control access to the drugs stored in the
automated drug delivery system.
(D) Access to the automated drug delivery system shall be
controlled and tracked using an identification or password
system or biosensor.
(E) The automated drug delivery system shall make a complete
and accurate record of all transactions that will include all users
accessing the system and all drugs added to, or removed from,
the system.
(F) After the pharmacist reviews the prescriber’s order, access
by licensed personnel to the automated drug delivery system
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shall be limited only to drugs ordered by the prescriber and
reviewed by the pharmacist and that are specific to the patient.
When the prescriber’s order requires a dosage variation of the
same drug, licensed personnel shall have access to the drug
ordered for that scheduled time of administration.
(G) Systems that allow licensed personnel to have access to
multiple drugs and are not patient specific in their design, shall
be allowed under this subdivision if those systems have
electronic and mechanical safeguards in place to ensure that the
drugs delivered to the patient are specific to that patient.
(6) The stocking of an automated drug delivery system shall be
performed by a pharmacist. If the automated drug delivery
system utilizes removable pockets, cards, drawers, similar
technology, or unit of use or single dose containers, as defined by
the United States Pharmacopoeia, the stocking system may be
done outside of the facility and be delivered to the facility, if all
of the following conditions are met:
(A) The task of placing drugs into the removable pockets, cards,
drawers, or unit of use or single dose containers is performed by
a pharmacist, or by an intern pharmacist or a pharmacy
technician working under the direct supervision of a pharmacist.
(B) The removable pockets, cards, drawers, or unit of use or
single dose containers are transported between the pharmacy
and the facility in a secure tamper-evident container.
(C) The facility, in conjunction with the pharmacy, has
developed policies and procedures to ensure that the removable
pockets, cards, drawers, or unit of use or single dose containers
are properly placed into the automated drug delivery system.
(7) Review of the drugs contained within, and the operation and
maintenance of, the automated drug delivery system shall be
done in accordance with law and shall be the responsibility of the
pharmacy. A pharmacist shall conduct the review on a monthly
basis, which shall include physical inspection of the drugs in the
automated drug delivery system, an inspection of the automated
drug delivery system machine for cleanliness, and a review of all
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transaction records in order to verify the security and
accountability of the system.
4427.7. Self-Assessment and Recordkeeping Requirements
(a) A pharmacy holding an ADDS license shall complete a self-
assessment, performed pursuant to Section 1715 of Title 16 of
the California Code of Regulations, evaluating the pharmacy’s
compliance with pharmacy law relating to the use of the ADDS.
All information regarding operation, maintenance, compliance,
error, omissions, or complaints pertaining to the ADDS shall be
included in the self-assessment.
(b) The pharmacy shall comply with all recordkeeping and quality
assurance requirements established in pharmacy law and
regulation, and shall maintain those records within the licensed
pharmacy holding the ADDS license and separate from other
pharmacy records.
4427.8. Report to the Legislature During Sunset Evaluation
(a) This article shall become operative on July 1, 2019.
(b) On or before January 1, 2024, as part of the board’s sunset
evaluation process, and notwithstanding Sections 9795 and
10231.5 of the Government Code, the board shall report to the
appropriate committees of the Legislature on the regulation of
ADDS units as provided in this article. At a minimum, this report
shall require all of the following:
(1) The use and dispersion of ADDS throughout the health care
system.
(2) The number of ADDS inspections conducted by the board
each year and the findings from the inspections.
(3) Public safety concerns relating to the use of ADDS as
identified by the board.
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OTHER IMPORTANT SECTIONS
OF THE BUSINESS & PROFESSIONS CODE
31. Licensee or Applicant Name on Tax Delinquencies List
(a) As used in this section, "board" means any entity listed in
Section 101, the entities referred to in Sections 1000 and 3600,
the State Bar, the Department of Real Estate, and any other state
agency that issues a license, certificate, or registration
authorizing a person to engage in a business or profession.
(b) Each applicant for the issuance or renewal of a license,
certificate, registration, or other means to engage in a business
or profession regulated by a board who is not in compliance with
a judgment or order for support shall be subject to Section 17520
of the Family Code.
(c) "Compliance with a judgment or order for support" has the
meaning given in paragraph (4) of subdivision (a) of Section
17520 of the Family Code.
(d) Each licensee or applicant whose name appears on a list of
the 500 largest tax delinquencies pursuant to Section 7063 or
19195 of the Revenue and Taxation Code shall be subject to
Section 494.5.
(e) Each application for a new license or renewal of a license
shall indicate on the application that the law allows the State
Board of Equalization and the Franchise Tax Board to share
taxpayer information with a board and requires the licensee to
pay his or her state tax obligation and that his or her license may
be suspended if the state tax obligation is not paid.
(f) For purposes of this section, "tax obligation" means the tax
imposed under, or in accordance with, Part 1 (commencing with
Section 6001), Part 1.5 (commencing with Section 7200), Part 1.6
(commencing with Section 7251), Part 1.7 (commencing with
Section 7280), Part 10 (commencing with Section 17001), or Part
11 (commencing with Section 23001) of Division 2 of the
Revenue and Taxation Code.
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40. Expert Consultant Agreement
(a) Subject to the standards described in Section 19130 of the
Government Code, any board, as defined in Section 22, the State
Board of Chiropractic Examiners, or the Osteopathic Medical
Board of California may enter into an agreement with an expert
consultant to do any of the following:
(1) Provide an expert opinion on enforcement-related matters,
including providing testimony at an administrative hearing.
(2) Assist the board as a subject matter expert in examination
development, examination validation, or occupational analyses.
(3) Evaluate the mental or physical health of a licensee or an
applicant for a license as may be necessary to protect the public
health and safety.
(b) An executed contract between a board and an expert
consultant shall be exempt from the provisions of Part 2
(commencing with Section 10100) of Division 2 of the Public
Contract Code.
(c) Each board shall establish policies and procedures for the
selection and use of expert consultants.
(d) Nothing in this section shall be construed to expand the
scope of practice of an expert consultant providing services
pursuant to this section.
[Edit. To protect and safeguard consumers and the public in this
state, it is necessary that this act take effect immediately—
September 26, 2011]
114.5. Applicants; Military Service Inquiry
Commencing January 1, 2015, each board shall inquire in every
application for licensure if the individual applying for licensure is
serving in, or has previously served in, the military.
115.4. Expedited Licensure for Honorably Discharged Member
of the Armed Forces
(a) Notwithstanding any other law, on and after July 1, 2016, a
board within the department shall expedite, and may assist, the
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initial licensure process for an applicant who supplies satisfactory
evidence to the board that the applicant has served as an active
duty member of the Armed Forces of the United States and was
honorably discharged.
(b) A board may adopt regulations necessary to administer this
section.
115.5. Expedited Licensure Process
(a) A board within the department shall expedite the licensure
process for an applicant who meets both of the following
requirements:
(1) Supplies evidence satisfactory to the board that the
applicant is married to, or in a domestic partnership or other
legal union with, an active duty member of the Armed Forces of
the United States who is assigned to a duty station in this state
under official active duty military orders.
(2) Holds a current license in another state, district, or territory
of the United States in the profession or vocation for which he or
she seeks a license from the board.
(b) A board may adopt regulations necessary to administer this
section.
125.3. Recovery of Investigation and Enforcement Costs:
Procedures; Proof; Enforcement
(a) Except as otherwise provided by law, in any order issued in
resolution of a disciplinary proceeding before any board within
the department or before the Osteopathic Medical Board, upon
request of the entity bringing the proceeding, the administrative
law judge may direct a licentiate found to have committed a
violation or violations of the licensing act to pay a sum not to
exceed the reasonable costs of the investigation and
enforcement of the case.
(b) In the case of a disciplined licentiate that is a corporation or
a partnership, the order may be made against the licensed
corporate entity or licensed partnership.
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(c) A certified copy of the actual costs, or a good faith estimate
of costs where actual costs are not available, signed by the entity
bringing the proceeding or its designated representative shall be
prima facie evidence of reasonable costs of investigation and
prosecution of the case. The costs shall include the amount of
investigative and enforcement costs up to the date of the
hearing, including, but not limited to, charges imposed by the
Attorney General.
(d) The administrative law judge shall make a proposed finding
of the amount of reasonable costs of investigation and
prosecution of the case when requested pursuant to subdivision
(a). The finding of the administrative law judge with regard to
costs shall not be reviewable by the board to increase the cost
award. The board may reduce or eliminate the cost award, or
remand to the administrative law judge if the proposed decision
fails to make a finding on costs requested pursuant to subdivision
(a).
(e) If an order for recovery of costs is made and timely payment
is not made as directed in the board's decision, the board may
enforce the order for repayment in any appropriate court. This
right of enforcement shall be in addition to any other rights the
board may have as to any licentiate to pay costs.
(f) In any action for recovery of costs, proof of the board's
decision shall be conclusive proof of the validity of the order of
payment and the terms for payment.
(g) (1) Except as provided in paragraph (2), the board shall not
renew or reinstate the license of any licentiate who has failed to
pay all of the costs ordered under this section.
(2) Notwithstanding paragraph (1), the board may, in its
discretion, conditionally renew or reinstate for a maximum of
one year the license of any licentiate who demonstrates financial
hardship and who enters into a formal agreement with the board
to reimburse the board within that one-year period for the
unpaid costs.
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(h) All costs recovered under this section shall be considered a
reimbursement for costs incurred and shall be deposited in the
fund of the board recovering the costs to be available upon
appropriation by the Legislature.
(i) Nothing in this section shall preclude a board from including
the recovery of the costs of investigation and enforcement of a
case in any stipulated settlement.
(j) This section does not apply to any board if a specific statutory
provision in that board's licensing act provides for recovery of
costs in an administrative disciplinary proceeding.
(k) Notwithstanding the provisions of this section, the Medical
Board of California shall not request nor obtain from a physician
and surgeon, investigation and prosecution costs for a
disciplinary proceeding against the licentiate. The board shall
ensure that this subdivision is revenue neutral with regard to it
and that any loss of revenue or increase in costs resulting from
this subdivision is offset by an increase in the amount of the
initial license fee and the biennial renewal fee, as provided in
subdivision (e) of Section 2435.
125.9. Citation and Fine
(a) Except with respect to persons regulated under Chapter 11
(commencing with Section 7500), and Chapter 11.6 (commencing
with Section 7590) of Division 3, any board, bureau, or
commission within the department, the board created by the
Chiropractic Initiative Act, and the Osteopathic Medical Board of
California, may establish, by regulation, a system for the issuance
to a licensee of a citation which may contain an order of
abatement or an order to pay an administrative fine assessed by
the board, bureau, or commission where the licensee is in
violation of the applicable licensing act or any regulation adopted
pursuant thereto.
(b) The system shall contain the following provisions:
(1) Citations shall be in writing and shall describe with
particularity the nature of the violation, including specific
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reference to the provision of law determined to have been
violated.
(2) Whenever appropriate, the citation shall contain an order of
abatement fixing a reasonable time for abatement of the
violation.
(3) In no event shall the administrative fine assessed by the
board, bureau, or commission exceed five thousand dollars
($5,000) for each inspection or each investigation made with
respect to the violation, or five thousand dollars ($5,000) for
each violation or count if the violation involves fraudulent billing
submitted to an insurance company, the Medi-Cal program, or
Medicare. In assessing a fine, the board, bureau, or commission
shall give due consideration to the appropriateness of the
amount of the fine with respect to factors such as the gravity of
the violation, the good faith of the licensee, and the history of
previous violations.
(4) A citation or fine assessment issued pursuant to a citation
shall inform the licensee that if he or she desires a hearing to
contest the finding of a violation, that hearing shall be requested
by written notice to the board, bureau, or commission within 30
days of the date of issuance of the citation or assessment. If a
hearing is not requested pursuant to this section, payment of any
fine shall not constitute an admission of the violation charged.
Hearings shall be held pursuant to Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
(5) Failure of a licensee to pay a fine within 30 days of the date
of assessment, unless the citation is being appealed, may result
in disciplinary action being taken by the board, bureau, or
commission. Where a citation is not contested and a fine is not
paid, the full amount of the assessed fine shall be added to the
fee for renewal of the license. A license shall not be renewed
without payment of the renewal fee and fine.
(c) The system may contain the following provisions:
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(1) A citation may be issued without the assessment of an
administrative fine.
(2) Assessment of administrative fines may be limited to only
particular violations of the applicable licensing act.
(d) Notwithstanding any other provision of law, if a fine is paid
to satisfy an assessment based on the finding of a violation,
payment of the fine shall be represented as satisfactory
resolution of the matter for purposes of public disclosure.
(e) Administrative fines collected pursuant to this section shall
be deposited in the special fund of the particular board, bureau,
or commission.
135.4. Expedited Licensure for Refugees, Asylees, and Special
Immigrant Visa Holders
(a) Notwithstanding any other law, a board within the
department shall expedite, and may assist, the initial licensure
process for an applicant who supplies satisfactory evidence to
the board that they have been admitted to the United States as a
refugee under Section 1157 of Title 8 of the United States Code,
have been granted asylum by the Secretary of Homeland Security
or the Attorney General of the United States pursuant to Section
1158 of Title 8 of the United States Code, or they have a special
immigrant visa (SIV) that has been granted a status under Section
1244 of Public Law 110-181, under Public Law 109-163, or under
Section 602(b) of Title VI of Division F of Public Law 111-8.
(b) Nothing in this section shall be construed as changing
existing licensure requirements. A person applying for expedited
licensure under subdivision (a) shall meet all applicable statutory
and regulatory licensure requirements.
(c) A board may adopt regulations necessary to administer this
section.
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139.5 License Application Processing Timeframes
Beginning July 1, 2021, each board, as defined in Section 22,
within the department that issues a license shall do both of the
following on at least a quarterly basis:
(a) Prominently display on its internet website one of the
following:
(1) The current average timeframes for processing initial and
renewal license applications.
(2) The combined current average timeframe for processing
both initial and renewal license applications.
(b) Prominently display on its internet website one of the
following:
(1) The current average timeframes for processing each license
type that the board administers.
(2) The combined current average timeframe for processing all
license types that the board administers.
144.5. Authority To Receive Certified Records
Notwithstanding any other law, a board described in Section
144 may request, and is authorized to receive, from a local or
state agency certified records of all arrests and convictions,
certified records regarding probation, and any and all other
related documentation needed to complete an applicant or
licensee investigation. A local or state agency may provide those
records to the board upon request.
148. Unlicensed Activity
Any board, bureau, or commission within the department may,
in addition to the administrative citation system authorized by
Section 125.9, also establish, by regulation, a similar system for
the issuance of an administrative citation to an unlicensed person
who is acting in the capacity of a licensee or registrant under the
jurisdiction of that board, bureau, or commission. The
administrative citation system authorized by this section shall
meet the requirements of Section 125.9 and may not be applied
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to an unlicensed person who is otherwise exempted from the
provisions of the applicable licensing act. The establishment of
an administrative citation system for unlicensed activity does not
preclude the use of other enforcement statutes for unlicensed
activities at the discretion of the board, bureau, or commission.
This section shall become operative on April 1, 2021. This
section shall remain in effect only until April 1, 2023, and as of
that date is repealed.
208. CURES Fee Assessment
(a) Beginning April 1, 2021, a Controlled Substance Utilization
Review and Evaluation System (CURES) fee of eleven dollars ($11)
shall be assessed annually on each of the licensees specified in
subdivision (b) to pay the reasonable costs associated with
operating and maintaining CURES for the purpose of regulating
those licensees. The fee assessed pursuant to this subdivision
shall be billed and collected by the regulating agency of each
licensee at the time of the licensee’s license renewal. If the
reasonable regulatory cost of operating and maintaining CURES is
less than eleven dollars ($11) per licensee, the Department of
Consumer Affairs may, by regulation, reduce the fee established
by this section to the reasonable regulatory cost.
(b) (1) Licensees authorized pursuant to Section 11150 of the
Health and Safety Code to prescribe, order, administer, furnish,
or dispense Schedule II, Schedule III, or Schedule IV controlled
substances or pharmacists licensed pursuant to Chapter 9
(commencing with Section 4000) of Division 2.
(2) Licensees issued a license that has been placed in a retired
or inactive status pursuant to a statute or regulation are exempt
from the CURES fee requirement in subdivision (a). This
exemption shall not apply to licensees whose license has been
placed in a retired or inactive status if the licensee is at any time
authorized to prescribe, order, administer, furnish, or dispense
Schedule II, Schedule III, or Schedule IV controlled substances.
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(3) Wholesalers, third-party logistics providers, nonresident
wholesalers, and nonresident third-party logistics providers of
dangerous drugs licensed pursuant to Article 11 (commencing
with Section 4160) of Chapter 9 of Division 2.
(4) Nongovernmental clinics licensed pursuant to Article 13
(commencing with Section 4180) and Article 14 (commencing
with Section 4190) of Chapter 9 of Division 2.
(5) Nongovernmental pharmacies licensed pursuant to Article 7
(commencing with Section 4110) of Chapter 9 of Division 2.
(c) The funds collected pursuant to subdivision (a) shall be
deposited in the CURES Fund, which is hereby created within the
State Treasury. Moneys in the CURES Fund shall, upon
appropriation by the Legislature, be available to the Department
of Consumer Affairs to reimburse the Department of Justice for
costs to operate and maintain CURES for the purposes of
regulating the licensees specified in subdivision (b).
(d) The Department of Consumer Affairs shall contract with the
Department of Justice on behalf of the Medical Board of
California, the Dental Board of California, the California State
Board of Pharmacy, the Veterinary Medical Board, the Board of
Registered Nursing, the Physician Assistant Board, the
Osteopathic Medical Board of California, the Naturopathic
Medicine Committee of the Osteopathic Medical Board, the State
Board of Optometry, and the Podiatric Medical Board of
California to operate and maintain CURES for the purposes of
regulating the licensees specified in subdivision (b).
(e) This section shall become operative on April 1, 2021.
(f) This section shall remain in effect only until April 1, 2023, and
as of that date is repealed.
This section shall become operative on April 1, 2023.
208. CURES Fee Assessment
(a) Beginning April 1, 2023, a Controlled Substance Utilization
Review and Evaluation System (CURES) fee of nine dollars ($9)
shall be assessed annually on each of the licensees specified in
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subdivision (b) to pay the reasonable costs associated with
operating and maintaining CURES for the purpose of regulating
those licensees. The fee assessed pursuant to this subdivision
shall be billed and collected by the regulating agency of each
licensee at the time of the licensee’s license renewal. If the
reasonable regulatory cost of operating and maintaining CURES is
less than nine dollars ($9) per licensee, the Department of
Consumer Affairs may, by regulation, reduce the fee established
by this section to the reasonable regulatory cost.
(b) (1) Licensees authorized pursuant to Section 11150 of the
Health and Safety Code to prescribe, order, administer, furnish,
or dispense Schedule II, Schedule III, or Schedule IV controlled
substances or pharmacists licensed pursuant to Chapter 9
(commencing with Section 4000) of Division 2.
(2) Licensees issued a license that has been placed in a retired
or inactive status pursuant to a statute or regulation are exempt
from the CURES fee requirement in subdivision (a). This
exemption shall not apply to licensees whose license has been
placed in a retired or inactive status if the licensee is at any time
authorized to prescribe, order, administer, furnish, or dispense
Schedule II, Schedule III, or Schedule IV controlled substances.
(3) Wholesalers, third-party logistics providers, nonresident
wholesalers, and nonresident third-party logistics providers of
dangerous drugs licensed pursuant to Article 11 (commencing
with Section 4160) of Chapter 9 of Division 2.
(4) Nongovernmental clinics licensed pursuant to Article 13
(commencing with Section 4180) and Article 14 (commencing
with Section 4190) of Chapter 9 of Division 2.
(5) Nongovernmental pharmacies licensed pursuant to Article 7
(commencing with Section 4110) of Chapter 9 of Division 2.
(c) The funds collected pursuant to subdivision (a) shall be
deposited in the CURES Fund, which is hereby created within the
State Treasury. Moneys in the CURES Fund shall, upon
appropriation by the Legislature, be available to the Department
of Consumer Affairs to reimburse the Department of Justice for
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costs to operate and maintain CURES for the purposes of
regulating the licensees specified in subdivision (b).
(d) The Department of Consumer Affairs shall contract with the
Department of Justice on behalf of the Medical Board of
California, the Dental Board of California, the California State
Board of Pharmacy, the Veterinary Medical Board, the Board of
Registered Nursing, the Physician Assistant Board, the
Osteopathic Medical Board of California, the Naturopathic
Medicine Committee of the Osteopathic Medical Board, the State
Board of Optometry, and the Podiatric Medical Board of
California to operate and maintain CURES for the purposes of
regulating the licensees specified in subdivision (b).
(e) This section shall become operative on April 1, 2023.
209. CURES Prescription Drug Monitoring Program; Application
and Approval Process
The Department of Justice, in conjunction with the Department
of Consumer Affairs and the boards and committees identified in
subdivision (d) of Section 208, shall do all of the following:
(a) Identify and implement a streamlined application and
approval process to provide access to the CURES Prescription
Drug Monitoring Program (PDMP) database for licensed health
care practitioners eligible to prescribe, order, administer, furnish,
or dispense Schedule II, Schedule III, or Schedule IV controlled
substances and for pharmacists. Every reasonable effort shall be
made to implement a streamlined application and approval
process that a licensed health care practitioner or pharmacist can
complete at the time that they are applying for licensure or
renewing their license.
(b) Identify necessary procedures to enable licensed health care
practitioners and pharmacists with access to the CURES PDMP to
delegate their authority to access reports from the CURES PDMP.
(c) Develop a procedure to enable health care practitioners who
do not have a federal Drug Enforcement Administration (DEA)
number to opt out of applying for access to the CURES PDMP.
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315.2. Violation of Probation; Order for Licensee to Cease
Practice
(a) A board, as described in Section 315, shall order a licensee of
the board to cease practice if the licensee tests positive for any
substance that is prohibited under the terms of the licensee’s
probation or diversion program.
(b) An order to cease practice under this section shall not be
governed by the provisions of Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
(c) A cease practice order under this section shall not constitute
disciplinary action.
(d) This section shall have no effect on the Board of Registered
Nursing pursuant to Article 3.1 (commencing with Section 2770)
of Chapter 6 of Division 2.
315.4. Order Clinical Diagnostic Evaluation for Licensee
(a) A board, as described in Section 315, may adopt regulations
authorizing the board to order a licensee on probation or in a
diversion program to cease practice for major violations and
when the board orders a licensee to undergo a clinical diagnostic
evaluation pursuant to the uniform and specific standards
adopted and authorized under Section 315.
(b) An order to cease practice under this section shall not be
governed by the provisions of Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
(c) A cease practice order under this section shall not constitute
disciplinary action.
(d) This section shall have no effect on the Board of Registered
Nursing pursuant to Article 3.1 (commencing with Section 2770)
of Chapter 6 of Division 2.
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460. Licensed Department of Consumer Affairs Businesses
(a) No city, county, or city and county shall prohibit a person or
group of persons, authorized by one of the agencies in the
Department of Consumer Affairs or an entity established
pursuant to this code by a license, certificate, or other means to
engage in a particular business, from engaging in that business,
occupation, or profession or any portion of that business,
occupation, or profession.
(b) (1) No city, county, or city and county shall prohibit a healing
arts professional licensed with the state under Division 2
(commencing with Section 500) or licensed or certified by an
entity established pursuant to this code from engaging in any act
or performing any procedure that falls within the professionally
recognized scope of practice of that licensee.
(2) This subdivision shall not be construed to prohibit the
enforcement of a local ordinance in effect prior to January 1,
2010, related to any act or procedure that falls within the
professionally recognized scope of practice of a healing arts
professional licensed under Division 2 (commencing with Section
500).
(c) This section shall not be construed to prevent a city, county,
or city and county from adopting or enforcing any local ordinance
governing zoning, business licensing, or reasonable health and
safety requirements for establishments or businesses of a healing
arts professional licensed under Division 2 (commencing with
Section 500) or licensed or certified by an entity established
under this code or a person or group of persons described in
subdivision (a).
(d) Nothing in this section shall prohibit any city, county, or city
and county from levying a business license tax solely for revenue
purposes, nor any city or county from levying a license tax solely
for the purpose of covering the cost of regulation.
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476. Licensure/Registration Related to Section 31
(a) Except as provided in subdivision (b), nothing in this division
shall apply to the licensure or registration of persons pursuant to
Chapter 4 (commencing with Section 6000) of Division 3, or
pursuant to Division 9 (commencing with Section 23000) or
pursuant to Chapter 5 (commencing with Section 19800) of
Division 8.
(b) Section 494.5 shall apply to the licensure of persons
authorized to practice law pursuant to Chapter 4 (commencing
with Section 6000) of Division 3, and the licensure or registration
of persons pursuant to Chapter 5 (commencing with Section
19800) of Division 8 or pursuant to Division 9 (commencing with
Section 23000).
480. Denial of Licenses
(a) Notwithstanding any other provision of this code, a board
may deny a license regulated by this code on the grounds that
the applicant has been convicted of a crime or has been subject
to formal discipline only if either of the following conditions are
met:
(1) The applicant has been convicted of a crime within the
preceding seven years from the date of application that is
substantially related to the qualifications, functions, or duties of
the business or profession for which the application is made,
regardless of whether the applicant was incarcerated for that
crime, or the applicant has been convicted of a crime that is
substantially related to the qualifications, functions, or duties of
the business or profession for which the application is made and
for which the applicant is presently incarcerated or for which the
applicant was released from incarceration within the preceding
seven years from the date of application. However, the preceding
seven-year limitation shall not apply in either of the following
situations:
(A) The applicant was convicted of a serious felony, as defined in
Section 1192.7 of the Penal Code or a crime for which
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registration is required pursuant to paragraph (2) or (3) of
subdivision (d) of Section 290 of the Penal Code.
(B) The applicant was convicted of a financial crime currently
classified as a felony that is directly and adversely related to the
fiduciary qualifications, functions, or duties of the business or
profession for which the application is made, pursuant to
regulations adopted by the board, and for which the applicant is
seeking licensure under any of the following:
(i) Chapter 6 (commencing with Section 6500) of Division 3.
(ii) Chapter 9 (commencing with Section 7000) of Division 3.
(iii) Chapter 11.3 (commencing with Section 7512) of Division 3.
(iv) Licensure as a funeral director or cemetery manager under
Chapter 12 (commencing with Section 7600) of Division 3.
(v) Division 4 (commencing with Section 10000).
(2) The applicant has been subjected to formal discipline by a
licensing board in or outside California within the preceding
seven years from the date of application based on professional
misconduct that would have been cause for discipline before the
board for which the present application is made and that is
substantially related to the qualifications, functions, or duties of
the business or profession for which the present application is
made. However, prior disciplinary action by a licensing board
within the preceding seven years shall not be the basis for denial
of a license if the basis for that disciplinary action was a
conviction that has been dismissed pursuant to Section 1203.4,
1203.4a, 1203.41, 1203.42, or 1203.425 of the Penal Code or a
comparable dismissal or expungement.
(b) Notwithstanding any other provision of this code, a person
shall not be denied a license on the basis that the person has
been convicted of a crime, or on the basis of acts underlying a
conviction for a crime, if that person has obtained a certificate of
rehabilitation under Chapter 3.5 (commencing with Section
4852.01) of Title 6 of Part 3 of the Penal Code, has been granted
clemency or a pardon by a state or federal executive, or has
made a showing of rehabilitation pursuant to Section 482.
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(c) Notwithstanding any other provision of this code, a person
shall not be denied a license on the basis of any conviction, or on
the basis of the acts underlying the conviction, that has been
dismissed pursuant to Section 1203.4, 1203.4a, 1203.41,
1203.42, or 1203.425 of the Penal Code, or a comparable
dismissal or expungement. An applicant who has a conviction
that has been dismissed pursuant to Section 1203.4, 1203.4a,
1203.41, or 1203.42 of the Penal Code shall provide proof of the
dismissal if it is not reflected on the report furnished by the
Department of Justice.
(d) Notwithstanding any other provision of this code, a board
shall not deny a license on the basis of an arrest that resulted in a
disposition other than a conviction, including an arrest that
resulted in an infraction, citation, or a juvenile adjudication.
(e) A board may deny a license regulated by this code on the
ground that the applicant knowingly made a false statement of
fact that is required to be revealed in the application for the
license. A board shall not deny a license based solely on an
applicant’s failure to disclose a fact that would not have been
cause for denial of the license had it been disclosed.
(f) A board shall follow the following procedures in requesting
or acting on an applicant’s criminal history information:
(1) A board issuing a license pursuant to Chapter 3 (commencing
with Section 5500), Chapter 3.5 (commencing with Section 5615),
Chapter 10 (commencing with Section 7301), Chapter 20
(commencing with Section 9800), or Chapter 20.3 (commencing
with Section 9880), of Division 3, or Chapter 3 (commencing with
Section 19000) or Chapter 3.1 (commencing with Section 19225)
of Division 8 may require applicants for licensure under those
chapters to disclose criminal conviction history on an application
for licensure.
(2) Except as provided in paragraph (1), a board shall not require
an applicant for licensure to disclose any information or
documentation regarding the applicant’s criminal history.
However, a board may request mitigating information from an
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applicant regarding the applicant’s criminal history for purposes
of determining substantial relation or demonstrating evidence of
rehabilitation, provided that the applicant is informed that
disclosure is voluntary and that the applicant’s decision not to
disclose any information shall not be a factor in a board’s
decision to grant or deny an application for licensure.
(3) If a board decides to deny an application for licensure based
solely or in part on the applicant’s conviction history, the board
shall notify the applicant in writing of all of the following:
(A) The denial or disqualification of licensure.
(B) Any existing procedure the board has for the applicant to
challenge the decision or to request reconsideration.
(C) That the applicant has the right to appeal the board’s
decision.
(D) The processes for the applicant to request a copy of the
applicant’s complete conviction history and question the
accuracy or completeness of the record pursuant to Sections
11122 to 11127 of the Penal Code.
(g) (1) For a minimum of three years, each board under this
code shall retain application forms and other documents
submitted by an applicant, any notice provided to an applicant,
all other communications received from and provided to an
applicant, and criminal history reports of an applicant.
(2) Each board under this code shall retain the number of
applications received for each license and the number of
applications requiring inquiries regarding criminal history. In
addition, each licensing authority shall retain all of the following
information:
(A) The number of applicants with a criminal record who
received notice of denial or disqualification of licensure.
(B) The number of applicants with a criminal record who
provided evidence of mitigation or rehabilitation.
(C) The number of applicants with a criminal record who
appealed any denial or disqualification of licensure.
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(D) The final disposition and demographic information,
consisting of voluntarily provided information on race or gender,
of any applicant described in subparagraph (A), (B), or (C).
(3) (A) Each board under this code shall annually make available
to the public through the board’s internet website and through a
report submitted to the appropriate policy committees of the
Legislature deidentified information collected pursuant to this
subdivision. Each board shall ensure confidentiality of the
individual applicants.
(B) A report pursuant to subparagraph (A) shall be submitted in
compliance with Section 9795 of the Government Code.
(h) “Conviction” as used in this section shall have the same
meaning as defined in Section 7.5.
(i) This section does not in any way modify or otherwise affect
the existing authority of the following entities in regard to
licensure:
(1) The State Athletic Commission.
(2) The Bureau for Private Postsecondary Education.
(3) The California Horse Racing Board.
(j) This section shall become operative on July 1, 2020.
494.5. License Shall Not be Issued, Reactivated, Reinstated, or
Renewed and be Suspended if Named on Certified Tax
Delinquencies List
(a) (1) Except as provided in paragraphs (2), (3), and (4), a state
governmental licensing entity shall refuse to issue, reactivate,
reinstate, or renew a license and shall suspend a license if a
licensee's name is included on a certified list.
(2) The Department of Motor Vehicles shall suspend a license if
a licensee's name is included on a certified list. Any reference in
this section to the issuance, reactivation, reinstatement, renewal,
or denial of a license shall not apply to the Department of Motor
Vehicles.
(3) The State Bar of California may recommend to refuse to
issue, reactivate, reinstate, or renew a license and may
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recommend to suspend a license if a licensee's name is included
on a certified list. The word "may" shall be substituted for the
word "shall" relating to the issuance of a temporary license,
refusal to issue, reactivate, reinstate, renew, or suspend a license
in this section for licenses under the jurisdiction of the California
Supreme Court.
(4) The Alcoholic Beverage Control Board may refuse to issue,
reactivate, reinstate, or renew a license, and may suspend a
license, if a licensee's name is included on a certified list.
(b) For purposes of this section:
(1) "Certified list" means either the list provided by the State
Board of Equalization or the list provided by the Franchise Tax
Board of persons whose names appear on the lists of the 500
largest tax delinquencies pursuant to Section 7063 or 19195 of
the Revenue and Taxation Code, as applicable.
(2) "License" includes a certificate, registration, or any other
authorization to engage in a profession or occupation issued by a
state governmental licensing entity. "License" includes a driver's
license issued pursuant to Chapter 1 (commencing with Section
12500) of Division 6 of the Vehicle Code. "License" excludes a
vehicle registration issued pursuant to Division 3 (commencing
with Section 4000) of the Vehicle Code.
(3) "Licensee" means an individual authorized by a license to
drive a motor vehicle or authorized by a license, certificate,
registration, or other authorization to engage in a profession or
occupation issued by a state governmental licensing entity.
(4) "State governmental licensing entity" means any entity listed
in Section 101, 1000, or 19420, the office of the Attorney
General, the Department of Insurance, the Department of Motor
Vehicles, the State Bar of California, the Department of Real
Estate, and any other state agency, board, or commission that
issues a license, certificate, or registration authorizing an
individual to engage in a profession or occupation, including any
certificate, business or occupational license, or permit or license
issued by the Department of Motor Vehicles or the Department
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of the California Highway Patrol. "State governmental licensing
entity" shall not include the Contractors' State License Board.
(c) The State Board of Equalization and the Franchise Tax Board
shall each submit its respective certified list to every state
governmental licensing entity. The certified lists shall include the
name, social security number or taxpayer identification number,
and the last known address of the persons identified on the
certified lists.
(d) Notwithstanding any other law, each state governmental
licensing entity shall collect the social security number or the
federal taxpayer identification number from all applicants for the
purposes of matching the names of the certified lists provided by
the State Board of Equalization and the Franchise Tax Board to
applicants and licensees.
(e) (1) Each state governmental licensing entity shall determine
whether an applicant or licensee is on the most recent certified
list provided by the State Board of Equalization and the Franchise
Tax Board.
(2) If an applicant or licensee is on either of the certified lists,
the state governmental licensing entity shall immediately provide
a preliminary notice to the applicant or licensee of the entity's
intent to suspend or withhold issuance or renewal of the license.
The preliminary notice shall be delivered personally or by mail to
the applicant's or licensee's last known mailing address on file
with the state governmental licensing entity within 30 days of
receipt of the certified list. Service by mail shall be completed in
accordance with Section 1013 of the Code of Civil Procedure.
(A) The state governmental licensing entity shall issue a
temporary license valid for a period of 90 days to any applicant
whose name is on a certified list if the applicant is otherwise
eligible for a license.
(B) The 90-day time period for a temporary license shall not be
extended. Only one temporary license shall be issued during a
regular license term and the term of the temporary license shall
coincide with the first 90 days of the regular license term. A
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license for the full term or the remainder of the license term may
be issued or renewed only upon compliance with this section.
(C) In the event that a license is suspended or an application for
a license or the renewal of a license is denied pursuant to this
section, any funds paid by the applicant or licensee shall not be
refunded by the state governmental licensing entity.
(f) (1) A state governmental licensing entity shall refuse to issue
or shall suspend a license pursuant to this section no sooner than
90 days and no later than 120 days of the mailing of the
preliminary notice described in paragraph (2) of subdivision (e),
unless the state governmental licensing entity has received a
release pursuant to subdivision (h). The procedures in the
administrative adjudication provisions of the Administrative
Procedure Act (Chapter 4.5 (commencing with Section 11400)
and Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code) shall not apply to
the denial or suspension of, or refusal to renew, a license or the
issuance of a temporary license pursuant to this section.
(2) Notwithstanding any other law, if a board, bureau, or
commission listed in Section 101, other than the Contractors'
State License Board, fails to take action in accordance with this
section, the Department of Consumer Affairs shall issue a
temporary license or suspend or refuse to issue, reactivate,
reinstate, or renew a license, as appropriate.
(g) Notices shall be developed by each state governmental
licensing entity. For an applicant or licensee on the State Board of
Equalization's certified list, the notice shall include the address
and telephone number of the State Board of Equalization, and
shall emphasize the necessity of obtaining a release from the
State Board of Equalization as a condition for the issuance,
renewal, or continued valid status of a license or licenses. For an
applicant or licensee on the Franchise Tax Board's certified list,
the notice shall include the address and telephone number of the
Franchise Tax Board, and shall emphasize the necessity of
obtaining a release from the Franchise Tax Board as a condition
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for the issuance, renewal, or continued valid status of a license or
licenses.
(1) The notice shall inform the applicant that the state
governmental licensing entity shall issue a temporary license, as
provided in subparagraph (A) of paragraph (2) of subdivision (e),
for 90 calendar days if the applicant is otherwise eligible and that
upon expiration of that time period, the license will be denied
unless the state governmental licensing entity has received a
release from the State Board of Equalization or the Franchise Tax
Board, whichever is applicable.
(2) The notice shall inform the licensee that any license
suspended under this section will remain suspended until the
state governmental licensing entity receives a release along with
applications and fees, if applicable, to reinstate the license.
(3) The notice shall also inform the applicant or licensee that if
an application is denied or a license is suspended pursuant to this
section, any moneys paid by the applicant or licensee shall not be
refunded by the state governmental licensing entity. The state
governmental licensing entity shall also develop a form that the
applicant or licensee shall use to request a release by the State
Board of Equalization or the Franchise Tax Board. A copy of this
form shall be included with every notice sent pursuant to this
subdivision.
(h) If the applicant or licensee wishes to challenge the
submission of his or her name on a certified list, the applicant or
licensee shall make a timely written request for release to the
State Board of Equalization or the Franchise Tax Board,
whichever is applicable. The State Board of Equalization or the
Franchise Tax Board shall immediately send a release to the
appropriate state governmental licensing entity and the applicant
or licensee, if any of the following conditions are met:
(1) The applicant or licensee has complied with the tax
obligation, either by payment of the unpaid taxes or entry into an
installment payment agreement, as described in Section 6832 or
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19008 of the Revenue and Taxation Code, to satisfy the unpaid
taxes.
(2) The applicant or licensee has submitted a request for release
not later than 45 days after the applicant's or licensee's receipt of
a preliminary notice described in paragraph (2) of subdivision (e),
but the State Board of Equalization or the Franchise Tax Board,
whichever is applicable, will be unable to complete the release
review and send notice of its findings to the applicant or licensee
and state governmental licensing entity within 45 days after the
State Board of Equalization's or the Franchise Tax Board's receipt
of the applicant's or licensee's request for release. Whenever a
release is granted under this paragraph, and, notwithstanding
that release, the applicable license or licenses have been
suspended erroneously, the state governmental licensing entity
shall reinstate the applicable licenses with retroactive effect back
to the date of the erroneous suspension and that suspension
shall not be reflected on any license record.
(3) The applicant or licensee is unable to pay the outstanding tax
obligation due to a current financial hardship. "Financial
hardship" means financial hardship as determined by the State
Board of Equalization or the Franchise Tax Board, whichever is
applicable, where the applicant or licensee is unable to pay any
part of the outstanding liability and the applicant or licensee is
unable to qualify for an installment payment arrangement as
provided for by Section 6832 or Section 19008 of the Revenue
and Taxation Code. In order to establish the existence of a
financial hardship, the applicant or licensee shall submit any
information, including information related to reasonable
business and personal expenses, requested by the State Board of
Equalization or the Franchise Tax Board, whichever is applicable,
for purposes of making that determination.
(i) An applicant or licensee is required to act with diligence in
responding to notices from the state governmental licensing
entity and the State Board of Equalization or the Franchise Tax
Board with the recognition that the temporary license will lapse
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or the license suspension will go into effect after 90 days and that
the State Board of Equalization or the Franchise Tax Board must
have time to act within that period. An applicant's or licensee's
delay in acting, without good cause, which directly results in the
inability of the State Board of Equalization or the Franchise Tax
Board, whichever is applicable, to complete a review of the
applicant's or licensee's request for release shall not constitute
the diligence required under this section which would justify the
issuance of a release. An applicant or licensee shall have the
burden of establishing that he or she diligently responded to
notices from the state governmental licensing entity or the State
Board of Equalization or the Franchise Tax Board and that any
delay was not without good cause.
(j) The State Board of Equalization or the Franchise Tax Board
shall create release forms for use pursuant to this section. When
the applicant or licensee has complied with the tax obligation by
payment of the unpaid taxes, or entry into an installment
payment agreement, or establishing the existence of a current
financial hardship as defined in paragraph (3) of subdivision (h),
the State Board of Equalization or the Franchise Tax Board,
whichever is applicable, shall mail a release form to the applicant
or licensee and provide a release to the appropriate state
governmental licensing entity. Any state governmental licensing
entity that has received a release from the State Board of
Equalization and the Franchise Tax Board pursuant to this
subdivision shall process the release within five business days of
its receipt. If the State Board of Equalization or the Franchise Tax
Board determines subsequent to the issuance of a release that
the licensee has not complied with their installment payment
agreement, the State Board of Equalization or the Franchise
Tax Board, whichever is applicable, shall notify the state
governmental licensing entity and the licensee in a format
prescribed by the State Board of Equalization or the Franchise
Tax Board, whichever is applicable, that the licensee is not in
compliance and the release shall be rescinded. The State Board
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of Equalization and the Franchise Tax Board may, when it is
economically feasible for the state governmental licensing entity
to develop an automated process for complying with this
subdivision, notify the state governmental licensing entity in a
manner prescribed by the State Board of Equalization or the
Franchise Tax Board, whichever is applicable, that the licensee
has not complied with the installment payment agreement. Upon
receipt of this notice, the state governmental licensing entity
shall immediately notify the licensee on a form prescribed by the
state governmental licensing entity that the licensee's license will
be suspended on a specific date, and this date shall be no longer
than 30 days from the date the form is mailed. The licensee shall
be further notified that the license will remain suspended until a
new release is issued in accordance with this subdivision.
(k) The State Board of Equalization and the Franchise Tax Board
may enter into interagency agreements with the state
governmental licensing entities necessary to implement this
section.
(l) Notwithstanding any other law, a state governmental
licensing entity, with the approval of the appropriate department
director or governing body, may impose a fee on a licensee
whose license has been suspended pursuant to this section. The
fee shall not exceed the amount necessary for the state
governmental licensing entity to cover its costs in carrying out
the provisions of this section. Fees imposed pursuant to this
section shall be deposited in the fund in which other fees
imposed by the state governmental licensing entity are deposited
and shall be available to that entity upon appropriation in the
annual Budget Act.
(m) The process described in subdivision (h) shall constitute the
sole administrative remedy for contesting the issuance of a
temporary license or the denial or suspension of a license under
this section.
(n) Any state governmental licensing entity receiving an inquiry
as to the licensed status of an applicant or licensee who has had
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a license denied or suspended under this section or who has
been granted a temporary license under this section shall
respond that the license was denied or suspended or the
temporary license was issued only because the licensee appeared
on a list of the 500 largest tax delinquencies pursuant to Section
7063 or 19195 of the Revenue and Taxation Code. Information
collected pursuant to this section by any state agency, board, or
department shall be subject to the Information Practices Act of
1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of
Part 4 of Division 3 of the Civil Code). Any state governmental
licensing entity that discloses on its Internet Web site or other
publication that the licensee has had a license denied or
suspended under this section or has been granted a temporary
license under this section shall prominently disclose, in bold and
adjacent to the information regarding the status of the license,
that the only reason the license was denied, suspended, or
temporarily issued is because the licensee failed to pay taxes.
(o) Any rules and regulations issued pursuant to this section by
any state agency, board, or department may be adopted as
emergency regulations in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2
of the Government Code).
The adoption of these regulations shall be deemed an
emergency and necessary for the immediate preservation of the
public peace, health, and safety, or general welfare. The
regulations shall become effective immediately upon filing with
the Secretary of State.
(p) The State Board of Equalization, the Franchise Tax Board,
and state governmental licensing entities, as appropriate, shall
adopt regulations as necessary to implement this section.
(q) (1) Neither the state governmental licensing entity, nor any
officer, employee, or agent, or former officer, employee, or agent
of a state governmental licensing entity, may disclose or use any
information obtained from the State Board of Equalization or the
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Franchise Tax Board, pursuant to this section, except to inform
the public of the denial, refusal to renew, or suspension of a
license or the issuance of a temporary license pursuant to this
section. The release or other use of information received by a
state governmental licensing entity pursuant to this section,
except as authorized by this section, is punishable as a
misdemeanor. This subdivision may not be interpreted to
prevent the State Bar of California from filing a request with the
Supreme Court of California to suspend a member of the bar
pursuant to this section.
(2) A suspension of, or refusal to renew, a license or issuance of
a temporary license pursuant to this section does not constitute
denial or discipline of a licensee for purposes of any reporting
requirements to the National Practitioner Data Bank and shall
not be reported to the National Practitioner Data Bank or the
Healthcare Integrity and Protection Data Bank.
(3) Upon release from the certified list, the suspension or
revocation of the applicant's or licensee's license shall be purged
from the state governmental licensing entity's Internet Web site
or other publication within three business days. This paragraph
shall not apply to the State Bar of California.
(r) If any provision of this section or the application thereof to
any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of this section that can
be given effect without the invalid provision or application, and
to this end the provisions of this section are severable.
(s) All rights to review afforded by this section to an applicant
shall also be afforded to a licensee.
(t) Unless otherwise provided in this section, the policies,
practices, and procedures of a state governmental licensing
entity with respect to license suspensions under this section shall
be the same as those applicable with respect to suspensions
pursuant to Section 17520 of the Family Code.
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(u) No provision of this section shall be interpreted to allow a
court to review and prevent the collection of taxes prior to the
payment of those taxes in violation of the California Constitution.
(v) This section shall apply to any licensee whose name appears
on a list of the 500 largest tax delinquencies pursuant to Section
7063 or 19195 of the Revenue and Taxation Code on or after July
1, 2012.
650. Rebates or Discounts for Referral Prohibited
(a) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code, the offer,
delivery, receipt, or acceptance by any person licensed under this
division or the Chiropractic Initiative Act of any rebate, refund,
commission, preference, patronage dividend, discount, or other
consideration, whether in the form of money or otherwise, as
compensation or inducement for referring patients, clients, or
customers to any person, irrespective of any membership,
proprietary interest or coownership in or with any person to
whom these patients, clients, or customers are referred is
unlawful.
(b) The payment or receipt of consideration for services other
than the referral of patients which is based on a percentage of
gross revenue or similar type of contractual arrangement shall
not be unlawful if the consideration is commensurate with the
value of the services furnished or with the fair rental value of any
premises or equipment leased or provided by the recipient to the
payer.
(c) The offer, delivery, receipt, or acceptance of any
consideration between a federally qualified health center, as
defined in Section 1396d(l)(2)(B) of Title 42 of the United States
Code, and any individual or entity providing goods, items,
services, donations, loans, or a combination thereof, to the
health center entity pursuant to a contract, lease, grant, loan, or
other agreement, if that agreement contributes to the ability of
the health center entity to maintain or increase the availability,
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or enhance the quality, of services provided to a medically
underserved population served by the health center, shall be
permitted only to the extent sanctioned or permitted by federal
law.
(d) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code and in Sections
654.1 and 654.2 of this code, it shall not be unlawful for any
person licensed under this division to refer a person to any
laboratory, pharmacy, clinic (including entities exempt from
licensure pursuant to Section 1206 of the Health and Safety
Code), or health care facility solely because the licensee has a
proprietary interest or coownership in the laboratory, pharmacy,
clinic, or health care facility; provided, however, that the
licensee's return on investment for that proprietary interest or
coownership shall be based upon the amount of the capital
investment or proportional ownership of the licensee which
ownership interest is not based on the number or value of any
patients referred. Any referral excepted under this section shall
be unlawful if the prosecutor proves that there was no valid
medical need for the referral.
(e) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code and in Sections
654.1 and 654.2 of this code, it shall not be unlawful to provide
nonmonetary remuneration, in the form of hardware, software,
or information technology and training services, as described in
subsections (x) and (y) of Section 1001.952 of Title 42 of the Code
of Federal Regulations, as amended October 4, 2007, as
published in the Federal Register (72 Fed. Reg. 56632 and 56644),
and subsequently amended versions.
(f) "Health care facility" means a general acute care hospital,
acute psychiatric hospital, skilled nursing facility, intermediate
care facility, and any other health facility licensed by the State
Department of Public Health under Chapter 2 (commencing with
Section 1250) of Division 2 of the Health and Safety Code.
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(g) Notwithstanding the other subdivisions of this section or any
other provision of law, the payment or receipt of consideration
for advertising, wherein a licensee offers or sells services through
a third-party advertiser, shall not constitute a referral of patients
when the third-party advertiser does not itself recommend,
endorse, or otherwise select a licensee. The fee paid to the third-
party advertiser shall be commensurate with the service
provided by the third-party advertiser. If the licensee determines,
after consultation with the purchaser of the service, that the
service provided by the licensee is not appropriate for the
purchaser or if the purchaser elects not to receive the service for
any reason and requests a refund, the purchaser shall receive a
refund of the full purchase price as determined by the terms of
the advertising service agreement between the third-party
advertiser and the licensee. The licensee shall disclose in the
advertisement that a consultation is required and that the
purchaser will receive a refund if not eligible to receive the
service. This subdivision shall not apply to basic health care
services, as defined in subdivision (b) of Section 1345 of the
Health and Safety Code, or essential health benefits, as defined in
Section 1367.005 of the Health and Safety Code and Section
10112.27 of the Insurance Code. The entity that provides the
advertising shall be able to demonstrate that the licensee
consented in writing to the requirements of this subdivision. A
third-party advertiser shall make available to prospective
purchasers advertisements for services of all licensees then
advertising through the third-party advertiser in the applicable
geographic region. In any advertisement offering a discount price
for a service, the licensee shall also disclose the regular,
nondiscounted price for that service.
(h) A violation of this section is a public offense and is
punishable upon a first conviction by imprisonment in a county
jail for not more than one year, or by imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code, or by a fine not
exceeding fifty thousand dollars ($50,000), or by both that
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imprisonment and fine. A second or subsequent conviction is
punishable by imprisonment pursuant to subdivision (h) of
Section 1170 of the Penal Code, or by that imprisonment and a
fine of fifty thousand dollars ($50,000).
650.1. Lease Prohibition - Hospitals or Prescribers
(a) Any amount payable to any hospital, as defined in Section
4028, or any person or corporation prohibited from pharmacy
permit ownership by subdivision (a) of Section 4111 under any
rental, lease or service arrangement with respect to the
furnishing or supply of pharmaceutical services and products,
which is determined as a percentage, fraction, or portion of (1)
the charges to patients or of (2) any measure of hospital or
pharmacy revenue or cost, for pharmaceuticals and
pharmaceutical services is prohibited.
(b) Any lease or rental arrangement existing on the effective
date of this section shall be in full compliance with subdivision (a)
by January 1, 1986.
(c) Any lease or rental agreement entered into prior to January
1, 1980, that extends beyond the effective date of this section
shall be construed to be in compliance with this section until its
expiration or the expiration of any option which is contained in
any such lease or rental agreement provided that the lease or
rental agreement contains provisions which limit pharmacy
charges to the amounts not in excess of the prevailing charges in
similar hospitals in the general geographic area.
(d) The California State Board of Pharmacy, the Medical Board
of California, and the State Department of Health Services shall
enforce this section and may require information from any
person as is necessary for the enforcement of this section. It
shall be the duty of the licensees of the respective regulatory
agencies to produce the requisite evidence to show compliance
with this section. Violations of this section shall be deemed to be
the mutual responsibility of both lessee and lessor, and shall be
grounds for disciplinary action or other sanctions against both.
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651. Professional Advertising Requirements
(a) It is unlawful for any person licensed under this division or
under any initiative act referred to in this division to disseminate
or cause to be disseminated any form of public communication
containing a false, fraudulent, misleading, or deceptive
statement, claim, or image for the purpose of or likely to induce,
directly or indirectly, the rendering of professional services or
furnishing of products in connection with the professional
practice or business for which he or she is licensed. A "public
communication" as used in this section includes, but is not
limited to, communication by means of mail, television, radio,
motion picture, newspaper, book, list or directory of healing arts
practitioners, Internet, or other electronic communication.
(b) A false, fraudulent, misleading, or deceptive statement,
claim, or image includes a statement or claim that does any of
the following:
(1) Contains a misrepresentation of fact.
(2) Is likely to mislead or deceive because of a failure to disclose
material facts.
(3)
(A) Is intended or is likely to create false or unjustified
expectations of favorable results, including the use of any
photograph or other image that does not accurately depict the
results of the procedure being advertised or that has been
altered in any manner from the image of the actual subject
depicted in the photograph or image.
(B) Use of any photograph or other image of a model without
clearly stating in a prominent location in easily readable type the
fact that the photograph or image is of a model is a violation of
subdivision (a). For purposes of this paragraph, a model is
anyone other than an actual patient, who has undergone the
procedure being advertised, of the licensee who is advertising for
his or her services.
(C) Use of any photograph or other image of an actual patient
that depicts or purports to depict the results of any procedure, or
presents "before" and "after" views of a patient, without
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