Amended in Senate May 24, 2013

Amended in Senate May 14, 2013

Amended in Senate May 1, 2013

Senate Bill No. 809

Introduced by Senators DeSaulnier and Steinberg

(Coauthors: Senators Hancock, Lieu, Pavley, and Price)

(Coauthor: Assembly Member Blumenfield)

February 22, 2013

An act to add begin delete Section end delete begin insert Sections end insert 805.8 begin insert and 2196.8 end insert to the Business and Professions Code, to amend Sections 11165 and 11165.1 of the Health and Safety Code, and to add Part 21 (commencing with Section 42001) to Division 2 of the Revenue and Taxation Code, relating to controlled substances, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 809, as amended, DeSaulnier. Controlled substances: reporting.

(1) Existing law classifies certain controlled substances into designated schedules. Existing law requires the Department of Justice to maintain the Controlled Substance Utilization Review and Evaluation System (CURES) for the electronic monitoring of the prescribing and dispensing of Schedule II, Schedule III, and Schedule IV controlled substances by all practitioners authorized to prescribe or dispense these controlled substances.

Existing law requires dispensing pharmacies and clinics to report, on a weekly basis, specified information for each prescription of Schedule II, Schedule III, or Schedule IV controlled substances, to the department, as specified.

This bill would establish the CURES Fund within the State Treasury to receive funds to be allocated, upon appropriation by the Legislature, to the Department of Justice for the purposes of funding CURES, and would make related findings and declarations.

This bill would require 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 Committee of the Medical Board of California, the Osteopathic Medical Board of California, begin insert the Naturopathic Medicine Committee of the Osteopathic Medical Board of California, end insert the State Board of Optometry, and the California Board of Podiatric Medicine to begin delete increase the licensure, certification, and renewal fees charged to end delete begin insert charge end insert practitioners under their supervision who are authorized to begin delete prescribe end delete begin insert prescribe, end insert begin insert order, administer, furnish, end insert or dispense controlled begin delete substances, by up to 1.16%, end delete begin insert substances a fee of up to 1.16% of the renewal fee that the licensee was subject to as of July 1, 2013, end insert the proceeds of which would be deposited into the CURES Fund for support of CURES, as specified. This bill would also require the California State Board of Pharmacy to begin delete increase the licensure, certification, and renewal fees charged to end delete begin insert charge end insert wholesalers, nonresident wholesalers, and veterinary food-animal drug retailers under their supervision begin delete by up to 1.16%, end delete begin insert a fee of up to 1.16% of the renewal fee that the wholesaler, nonresident wholesaler, or veterinary food-animal drug retailer end insert begin insert was subject to as of July 1, 2013, end insert the proceeds of which would be deposited into the CURES Fund for support of CURES, as specified. begin insert The bill would require each of these fees to be due and payable at the time the license is renewed and require the fee to be submitted with the end insert begin insert renewal fee. end insert

begin insert

(2) Existing law requires the Medical Board of California to periodically develop and disseminate information and educational materials regarding various subjects, including pain management techniques, to each licensed physician and surgeon and to each general acute care hospital in California.

end insert begin insert

This bill would additionally require the board to periodically develop and disseminate to each licensed physician and surgeon and to each general acute care hospital in California information and educational materials relating to the assessment of a patient’s risk of abusing or diverting controlled substances and information relating to CURES.

end insert begin delete

(2)

end delete

begin insert ( end insert begin insert 3) end insert  Existing law permits a licensed health care practitioner, as specified, or a pharmacist to apply to the Department of Justice to obtain approval to access information stored on the Internet regarding the controlled substance history of a patient under his or her care. Existing law also authorizes the Department of Justice to provide the history of controlled substances dispensed to an individual to licensed health care practitioners, pharmacists, or both, providing care or services to the individual.

This bill would require licensed health care practitioners, as specified, and pharmacists to apply to the Department of Justice to obtain approval to access information stored on the Internet regarding the controlled substance history of a patient under his or her care, and, upon the happening of specified events, to begin insert be strongly encouraged to end insert access and consult that information prior to prescribing or dispensing Schedule II, Schedule III, or Schedule IV controlled substances. begin insert The bill would make other related and conforming changes. end insert

begin delete

(3)

end delete

begin insert ( end insert begin insert 4) end insert  Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.

This bill would impose a tax upon qualified manufacturers, as defined, beginning January 1, 2015. The tax would be collected by the State Board of Equalization pursuant to the procedures set forth in the Fee Collection Procedures Law. The bill would require the board to deposit all taxes, penalties, and interest collected pursuant to these provisions in the CURES Fund, as provided. This bill would also allow specified insurers, as defined, and health care service plans, as defined, to voluntarily contribute to the CURES Fund, as described. Because this bill would expand application of the Fee Collection Procedures Law, the violation of which is a crime, it would impose a state-mandated local program.

begin delete

(4)

end delete

begin insert ( end insert begin insert 5) end insert  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

begin delete

(5)

end delete

begin insert ( end insert begin insert 6) end insert  This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) The Controlled Substance Utilization Review and Evaluation
System (CURES) is a valuable begin delete investigative, end delete preventive,
begin insert investigative, end insert and educational tool for begin delete law enforcement, end delete begin insert health
care providers, end insert regulatory boards, educational researchers, and
begin delete the health care community. end delete begin insert law enforcement. end insert Recent budget cuts
to the Attorney General’s Division of Law Enforcement have
resulted in insufficient funding to support the CURES Prescription
Drug Monitoring Program (PDMP). The PDMP is necessary to
ensure health care professionals have the necessary data to make
informed treatment decisions and to allow law enforcement to
investigate diversion of prescription drugs. Without a dedicated
funding source, the CURES PDMP is not sustainable.

(b) Each year CURES responds to more than begin delete 60,000 end delete begin insert 800,000 end insert
requests from practitioners and pharmacists regarding all of the
following:

(1) Helping identify and deter drug abuse and diversion of
prescription drugs through accurate and rapid tracking of Schedule
II, Schedule III, and Schedule IV controlled substances.

(2) Helping practitioners make better prescribing decisions.

(3) Helping reduce misuse, abuse, and trafficking of those drugs.

(c) Schedule II, Schedule III, and Schedule IV controlled
substances have had deleterious effects on private and public
interests, including the misuse, abuse, and trafficking in dangerous
prescription medications resulting in injury and death. It is the
intent of the Legislature to work with stakeholders to fully fund
the operation of CURES which seeks to mitigate those deleterious
begin delete effects, end delete begin insert effects and serve as a tool for ensuring safe patient care, end insert
and which has proven to be a cost-effective tool to help reduce the
misuse, abuse, and trafficking of those drugs.

begin insert

(d) The following goals are critical to increase the effectiveness
and functionality of CURES:

end insert begin insert

(1) Upgrading the PDMP so that it is capable of accepting
real-time updates and is accessible in real-time, 24 hours a day,
seven days a week.

end insert begin insert

(2) Upgrading all prescription drug monitoring programs in
California so that they are capable of operating in conjunction
with all national prescription drug monitoring programs.

end insert begin insert

(3) Providing subscribers to prescription drug monitoring
programs access to information relating to controlled substances
dispensed in California, including those dispensed through the
federal Department of Veterans’ Affairs, the Indian Health Service,
the Department of Defense, and any other entity with authority to
dispense controlled substances in California.

end insert begin insert

(4) Upgrading the PDMP so that it is capable of accepting
electronic prescriptions, thereby enabling more reliable, complete,
and timely prescription monitoring.

end insert

SEC. 2.  

Section 805.8 is added to the Business and Professions
Code, to read:

805.8.  

(a) (1)  begin delete The end delete begin insert In addition to the fees charged for end insert begin insert licensure,
certification, and renewal, at the time those fees are charged, the end insert
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
Committee of the Medical Board of California, the Osteopathic
Medical Board of California, begin insert the Naturopathic Medicine Committee
of the Osteopathic Medical Board of California, end insert the State Board
of Optometry, and the California Board of Podiatric Medicine shall
begin delete increase the licensure, certification, and renewal fees charged to
practitioners under their supervision who are end delete begin insert charge each licensee end insert
authorized pursuant to Section 11150 of the Health and Safety
Code to begin delete prescribe end delete begin insert prescribe, order, administer, furnish, end insert or dispense
Schedule II, Schedule III, or Schedule IV controlled substances
begin delete by up to 1.16 percent annually, but in end delete begin insert a fee of up to 1.16 percent
of the renewal fee that the licensee was subject to as of July 1,
2013, to be assessed annually. This fee shall be due and payable
at the time the licensee renews his or her license and shall be
submitted with the licensee’s renewal fee. In end insert no case shall begin delete the end delete begin insert this end insert
fee begin delete increase end delete exceed the reasonable costs associated with begin insert operating
and end insert maintaining CURES for the purpose of regulating prescribers
and dispensers of controlled substances licensed or certificated by
these boards.

(2)  begin delete The end delete begin insert In addition to the fees charged for licensure,
certification, and renewal, at the time those fees are charged, the end insert
California State Board of Pharmacy shall begin delete increase the licensure,
certification, and renewal fees charged to end delete begin insert charge end insert wholesalers and
nonresident wholesalers of dangerous drugs, licensed pursuant to
Article 11 (commencing with Section 4160) of Chapter 9, begin delete by up
to 1.16 percent annually, but in end delete begin insert a fee of up to 1.16 percent of the
renewal fee that the wholesaler or nonresident wholesaler was
subject to as of July 1, 2013, to be assessed annually. This fee shall
be due and payable at the time the wholesaler or nonresident
wholesaler renews its license and shall be submitted with the
wholesaler’s or nonresident wholesaler’s renewal fee. In end insert no case
shall begin delete the end delete begin insert this end insert fee begin delete increase end delete exceed the reasonable costs associated
with begin insert operating and end insert maintaining CURES for the purpose of
regulating wholesalers and nonresident wholesalers of dangerous
drugs licensed or certificated by that board.

(3)  begin delete The end delete begin insert In addition to the fees charged for licensure,
certification, and renewal, at the time those fees are charged, the end insert
California State Board of Pharmacy shall begin delete increase the licensure,
certification, and renewal fees charged to end delete begin insert charge end insert veterinary
food-animal drug retailers, licensed pursuant to Article 15
(commencing with Section 4196) of Chapter 9, begin delete by up to 1.16
percent annually, but in end delete begin insert a fee of up to 1.16 percent of the renewal
fee that the drug retailer was subject to as of July 1, 2013, to be
assessed annually. This fee shall be due and payable at the time
the drug retailer renews its license and shall be submitted with
the drug retailers end insert begin insert ’ renewal fee. In end insert no case shall begin delete the end delete begin insert this end insert fee begin delete increase end delete
exceed the reasonable costs associated with begin insert operating and end insert
maintaining CURES for the purpose of regulating veterinary
food-animal drug retailers licensed or certificated by that board.

(b) The funds collected pursuant to subdivision (a) shall be
deposited in the CURES accounts, which are hereby created, within
the Contingent Fund of the Medical Board of California, the State
Dentistry Fund, the Pharmacy Board Contingent Fund, the
Veterinary Medical Board Contingent Fund, the Board of
Registered Nursing Fund, begin insert the Naturopathic Doctor’s Fund, end insert the
Osteopathic Medical Board of California Contingent Fund, the
Optometry Fund, and the Board of Podiatric Medicine Fund.
Moneys in the CURES accounts of each of those funds shall, upon
appropriation by the Legislature, be available to the Department
of Justice solely for begin insert operating and end insert maintaining CURES for the
purposes of regulating prescribers and dispensers of controlled
substances. All moneys received by the Department of Justice
pursuant to this section shall be deposited in the CURES Fund
described in Section 11165 of the Health and Safety Code.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2196.8 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 2196.8. end insert   

The board shall periodically develop and disseminate
information and educational material regarding assessing a
patient’s risk of abusing or diverting controlled substances and
information relating to the Controlled Substance Utilization Review
and Evaluation System (CURES), described in Section 11165 of
the Health and Safety Code, to each licensed physician and surgeon
and to each general acute care hospital in this state. The board
shall consult with the State Department of Health Care Services
and the Department of Justice in developing the materials to be
distributed pursuant to this section.

end insert

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 11165 of the Health and Safety Code is
amended to read:

11165.  

(a) To assist begin insert health care practitioners in their efforts
to ensure appropriate prescribing, ordering, administering,
furnishing, and dispensing of controlled substances, end insert law
enforcement and regulatory agencies in their efforts to control the
diversion and resultant abuse of Schedule II, Schedule III, and
Schedule IV controlled substances, and for statistical analysis,
education, and research, the Department of Justice shall, contingent
upon the availability of adequate funds in the CURES accounts
within the Contingent Fund of the Medical Board of California,
the Pharmacy Board Contingent Fund, the State Dentistry Fund,
the Board of Registered Nursing Fund, begin insert the Naturopathic Doctor’s
Fund, end insert the Osteopathic Medical Board of California Contingent
Fund, the Veterinary Medical Board Contingent Fund, the
Optometry Fund, the Board of Podiatric Medicine Fund, and the
CURES Fund, maintain the Controlled Substance Utilization
Review and Evaluation System (CURES) for the electronic
monitoring of, and Internet access to information regarding, the
prescribing and dispensing of Schedule II, Schedule III, and
Schedule IV controlled substances by all practitioners authorized
to begin delete prescribe end delete begin insert prescribe, order, administer, furnish, end insert or dispense these
controlled substances.

(b) The reporting of Schedule III and Schedule IV controlled
substance prescriptions to CURES shall be contingent upon the
availability of adequate funds for the Department of Justice for
the purpose of funding CURES. begin delete The department may end delete

begin insert (c) end insert begin insert   end insert begin insert The Department of Justice may end insert seek and use grant funds to
pay the costs incurred begin delete from the reporting of controlled substance
prescriptions to end delete begin insert by the operation and maintenance of end insert CURES. The
department shall begin delete make information about the amount and the source
of all private grant funds end delete begin insert annually report to the Legislature and
make available to the public the amount and source of funds end insert it
receives for support of begin delete CURES available to the public. end delete begin insert CURES. end insert
Grant funds shall not be appropriated from the Contingent Fund
of the Medical Board of California, the Pharmacy Board Contingent
Fund, the State Dentistry Fund, the Board of Registered Nursing
Fund, the Naturopathic Doctor’s Fund, begin delete or end delete the Osteopathic Medical
Board of California Contingent begin delete Fund to pay the costs of reporting
Schedule III and Schedule IV controlled substance prescriptions
to end delete begin insert Fund, the Veterinary Medical Board Contingent Fund, the
Optometry Fund, or the Board of Podiatric Medicine Fund, for
the purpose of funding end insert CURES.

begin delete

(c) CURES shall operate under existing provisions of law to
safeguard the privacy and confidentiality of patients. Data obtained
from CURES shall only be provided to appropriate state, local,
and federal persons or public agencies for disciplinary, civil, or
criminal purposes and to other agencies or entities, as determined
by the Department of Justice, for the purpose of educating
practitioners and others in lieu of disciplinary, civil, or criminal
actions. Data may be provided to public or private entities, as
approved by the Department of Justice, for educational, peer
review, statistical, or research purposes, provided that patient
information, including any information that may identify the
patient, is not compromised. Further, data disclosed to any
individual or agency, as described in this subdivision, shall not be
disclosed, sold, or transferred to any third party.

end delete begin insert

(d) (1) The operation of CURES shall comply with all
applicable federal and state privacy and security laws and
regulations.

end insert begin insert

(2) The Department of Justice may establish policies,
procedures, and regulations regarding the use, access, evaluation,
management, implementation, operation, storage, and security of
the information within CURES.

end insert begin delete

(d)

end delete

begin insert (e) end insert  For each prescription for a Schedule II, Schedule III, or
Schedule IV controlled substance, as defined in the controlled
substances schedules in federal law and regulations, specifically
Sections 1308.12, 1308.13, and 1308.14, respectively, of Title 21
of the Code of Federal Regulations, the dispensing begin delete pharmacy or
clinic end delete begin insert pharmacy, clinic, or other dispenser end insert shall begin delete provide end delete begin insert report end insert
the following information to the Department of Justice begin delete on a weekly
basis end delete begin insert as soon as reasonably possible, but not more than seven days
after the date a controlled substance is dispensed, unless monthly
reporting is permitted pursuant to subdivision (f) of Section 11190, end insert
and in a format specified by the Department of Justice:

(1) Full name, address, and telephone number of the ultimate
user or research subject, or contact information as determined by
the Secretary of the United States Department of Health and Human
Services, and the gender, and date of birth of the ultimate user.

(2) The prescriber’s category of licensure and license number,
the federal controlled substance registration number, and the state
medical license number of any prescriber using the federal
controlled substance registration number of a government-exempt
facility.

(3) Pharmacy prescription number, license number, and federal
controlled substance registration number.

(4) National Drug Code (NDC) number of the controlled
substance dispensed.

(5) Quantity of the controlled substance dispensed.

(6) International Statistical Classification of Diseases, 9th
revision (ICD-9) begin insert or 10th revision (ICD-10) end insert Code, if available.

(7) Number of refills ordered.

(8) Whether the drug was dispensed as a refill of a prescription
or as a first-time request.

(9) Date of origin of the prescription.

(10) Date of dispensing of the prescription.

begin insert

(f) The Department of Justice may invite stakeholders to assist,
advise, and make recommendations on the establishment of rules
and regulations necessary to ensure the proper administration
and enforcement of the CURES database. All prescriber invitees
shall be licensed by one of the boards or committees identified in
subdivision (a) of Section 805.8 of the Business and Professions
Code, in active practice in California, and a regular user of
CURES.

end insert begin insert

(g) The Department of Justice shall, prior to upgrading CURES,
consult with prescribers licensed by one of the boards or
committees identified in subdivision (a) of Section 805.8 of the
Business and Professions Code, one or more of the regulatory
boards or committees identified in subdivision (a) of Section 805.8
of the Business and Professions Code, and any other stakeholder
identified by the department for the purpose of identifying desirable
capabilities and upgrades to the CURES Prescription Drug
Monitoring Program.

end insert begin insert

(h) The Department of Justice may establish a process to educate
authorized subscribers of CURES on how to access and use
CURES.

end insert begin delete

(e)

end delete

begin insert (i) end insert  The CURES Fund is hereby established within the State
Treasury. The CURES Fund shall consist of all funds made
available to the Department of Justice for the purpose of funding
CURES. Money in the CURES Fund shall, upon appropriation by
the Legislature, be available for allocation to the Department of
Justice for the purpose of funding CURES.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 11165.1 of the Health and Safety Code is
amended to read:

11165.1.  

(a) (1) A licensed health care practitioner eligible
to prescribe Schedule II, Schedule III, or Schedule IV controlled
substances or a pharmacist shall submit begin delete a notarized end delete begin insert an end insert application
developed by the Department of Justice to obtain approval to access
information begin insert online end insert regarding the controlled substance history of
a patient that is stored on the Internet and maintained within the
Department of Justice, and, upon approval, the department shall
release to that practitioner or pharmacist the electronic history of
controlled substances dispensed to an individual under his or her
care based on data contained in the CURES Prescription Drug
Monitoring Program (PDMP).

(A) An application may be denied, or a subscriber may be
suspended, for reasons which include, but are not limited to, the
following:

(i) Materially falsifying an application for a subscriber.

(ii) Failure to maintain effective controls for access to the patient
activity report.

(iii) Suspended or revoked federal Drug Enforcement
Administration (DEA) registration.

(iv) Any subscriber who is arrested for a violation of law
governing controlled substances or any other law for which the
possession or use of a controlled substance is an element of the
crime.

(v) Any subscriber accessing information for any other reason
than caring for his or her patients.

(B) Any authorized subscriber shall notify the Department of
Justice within begin delete 10 end delete begin insert 30 end insert days of any changes to the subscriber account.

(2) To allow sufficient time for licensed health care practitioners
eligible to prescribe Schedule II, Schedule III, or Schedule IV
controlled substances and a pharmacist to apply and receive access
to PDMP, a written request may be made, until July 1, 2012, and
the Department of Justice may release to that practitioner or
pharmacist the history of controlled substances dispensed to an
individual under his or her care based on data contained in CURES.

(b) Any request for, or release of, a controlled substance history
pursuant to this section shall be made in accordance with guidelines
developed by the Department of Justice.

(c) (1) Until the Department of Justice has issued the
notification described in paragraph (3), in order to prevent the
inappropriate, improper, or illegal use of Schedule II, Schedule
III, or Schedule IV controlled substances, the Department of Justice
may initiate the referral of the history of controlled substances
dispensed to an individual based on data contained in CURES to
licensed health care practitioners, pharmacists, or both, providing
care or services to the individual.

(2) Upon the Department of Justice issuing the notification
described in paragraph begin delete (3) and approval of the application required
pursuant to subdivision (a), end delete begin insert (3), end insert licensed health care practitioners
eligible to prescribe Schedule II, Schedule III, or Schedule IV
controlled substances and pharmacists shall begin insert be strongly encouraged
to end insert access and consult the electronic history of controlled substances
dispensed to an individual under his or her care prior to prescribing
or dispensing a Schedule II, Schedule III, or Schedule IV controlled
substance.

(3) The Department of Justice shall notify licensed health care
practitioners and pharmacists who have submitted the application
required pursuant to subdivision (a) when the department
determines that CURES is capable of accommodating begin delete the mandate
contained in paragraph (2), end delete begin insert all users, end insert but not before June 1, 2015.
The department shall provide a copy of the notification to the
Secretary of State, the Secretary of the Senate, the Chief Clerk of
the Assembly, and the Legislative Counsel, and shall post the
notification on the department’s Internet Web site.

(d) The history of controlled substances dispensed to an
individual based on data contained in CURES that is received by
a practitioner or pharmacist from the Department of Justice
pursuant to this section shall be considered medical information
subject to the provisions of the Confidentiality of Medical
Information Act contained in Part 2.6 (commencing with Section
56) of Division 1 of the Civil Code.

(e) Information concerning a patient’s controlled substance
history provided to a prescriber or pharmacist pursuant to this
section shall include prescriptions for controlled substances listed
in Sections 1308.12, 1308.13, and 1308.14 of Title 21 of the Code
of Federal Regulations.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

Part 21 (commencing with Section 42001) is added to
Division 2 of the Revenue and Taxation Code, to read:

 

PART 21.  Controlled Substance Utilization
Review and Evaluation System (CURES) Tax Law

 

42001.  

For purposes of this part, the following definitions
apply:

(a) “Controlled substance” means a drug, substance, or
immediate precursor listed in any schedule in Section 11055,
11056, or 11057 of the Health and Safety Code.

(b) “Health care service plan” means an entity licensed pursuant
to the Knox-Keene Health Care Service Plan Act of 1975 (Chapter
2.2 (commencing with Section 1340) of Division 2 of the Health
and Safety Code).

(c) “Insurer” means an admitted insurer writing health insurance,
as defined in Section 106 of the Insurance Code, and an admitted
insurer writing workers’ compensation insurance, as defined in
Section 109 of the Insurance Code.

(d) “Qualified manufacturer” means a manufacturer of a
controlled substance, but does not mean a wholesaler or nonresident
wholesaler of dangerous drugs, regulated pursuant to Article 11
(commencing with Section 4160) of Chapter 9 of Division 2 of
the Business and Professions Code, a veterinary food-animal drug
retailer, regulated pursuant to Article 15 (commencing with Section
4196) of Chapter 9 of Division 2 of the Business and Professions
Code, or an individual regulated by 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 Committee of the
Medical Board of California, the Osteopathic Medical Board of
California, the State Board of Optometry, or the California Board
of Podiatric Medicine.

42003.  

(a) Beginning January 1, 2015, for the privilege of
doing business in this state, an annual tax is hereby imposed on
all qualified manufacturers in an amount determined pursuant to
Section 42007 for the purpose of establishing and maintaining
enforcement of the Controlled Substance Utilization Review and
Evaluation System (CURES), established pursuant to Section
11165 of the Health and Safety Code.

(b) The Department of Justice may seek grant moneys from
insurers and health care service plans for the purpose of begin delete upgrading
and modernizing end delete begin insert supporting end insert CURES. Insurers and health care
service plans may contribute by submitting their payment to the
Controller for deposit into the CURES Fund established pursuant
to subdivision (e) of Section 11165 of the Health and Safety Code.
The department shall make information about the amount and the
source of all private grant funds it receives for support of CURES
available to the public. A grant or gift made to the CURES Fund
pursuant to this subdivision shall be nondeductible for state tax
purposes.

42005.  

(a) The board shall collect the annual tax imposed by
this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001)). For purposes of this part, a
reference in the Fee Collection Procedures Law to a “fee” shall
include this tax and a reference to a “feepayer” shall include a
person liable for the payment for the taxes collected pursuant to
that law.

(b) (1) The board shall not accept or consider a petition for
redetermination that is based on the assertion that a determination
by the Department of Justice incorrectly determined that a qualified
manufacturer is subject to the tax or that a determination by the
Department of Justice improperly or erroneously calculated the
amount of that tax. The board shall forward to the Department of
Justice any appeal of a determination that asserts that a
determination by the Department of Justice incorrectly determined
that a qualified manufacturer is subject to the tax or that a
determination by the Department of Justice improperly or
erroneously calculated the amount of that tax.

(2) The board shall not accept or consider a claim for refund
that is based on the assertion that a determination by the
Department of Justice improperly or erroneously calculated the
amount of a tax, or incorrectly determined that the qualified
manufacturer is subject to the tax. The board shall forward to the
Department of Justice any claim for refund that asserts that a
determination by the Department of Justice incorrectly determined
that a qualified manufacturer is subject to the tax or that a
determination by the Department of Justice improperly or
erroneously calculated the amount of that tax.

42007.  

(a) The Department of Justice shall determine the
annual tax by dividing the cost to establish and maintain
enforcement of CURES by the number of qualified manufacturers.
For calendar year 2015, the CURES cost shall be four million two
hundred thousand dollars ($4,200,000). Beginning with the 2016
calendar year, and for each calendar year thereafter, the Department
of Justice shall adjust the rate annually to reflect increases or
decreases in the cost of living during the prior fiscal year, as
measured by the California Consumer Price Index for all items.

(b) The Department of Justice shall provide to the board the
name and address of each qualified manufacturer that is liable for
the annual tax, the amount of tax, and the due date.

(c) All annual taxes referred to the board for collection pursuant
to Section 42005 shall be paid to the board.

42009.  

All taxes, interest, penalties, and other amounts
collected pursuant to this part, less refunds and costs of
administration, shall be deposited into the CURES Fund.

42011.  

The board shall prescribe, adopt, and enforce rules and
regulations relating to the administration and enforcement of this
part.

begin delete SEC. 6. end delete
begin insert SEC. 7. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

begin delete SEC. 7. end delete
begin insert SEC. 8. end insert   

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to protect the public from the continuing threat of
prescription drug abuse at the earliest possible time, it is necessary
that this act take effect immediately.