BILL NUMBER: SB 809 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 24, 2013
AMENDED IN SENATE MAY 14, 2013
AMENDED IN SENATE MAY 1, 2013
INTRODUCED BY Senators DeSaulnier and Steinberg
(Coauthors: Senators Hancock, Lieu, Pavley, and Price)
(Coauthor: Assembly Member Blumenfield)
FEBRUARY 22, 2013
An act to add Section Sections 805.8
and 2196.8 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, the Naturopathic
Medicine Committee of the Osteopathic Medical Board of California,
the State Board of Optometry, and the California Board of
Podiatric Medicine to increase the licensure, certification,
and renewal fees charged to charge
practitioners under their supervision who are authorized to
prescribe prescribe, order, administer,
furnish, or dispense controlled substances, by up to
1.16%, substances a fee of up to 1.16% of the renewal
fee that the licensee was subject to as of July 1, 2013, 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 increase the licensure,
certification, and renewal fees charged to charge
wholesalers, nonresident wholesalers, and veterinary
food-animal drug retailers under their supervision by up to
1.16%, a fee of up to 1.16% of the renewal fee that
the wholesaler, nonresident wholesaler, or veterinary food-animal
drug retailer was subject to as of July 1, 2013, the
proceeds of which would be deposited into the CURES Fund for support
of CURES, as specified. 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
renewal fee.
(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.
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.
(2)
( 3) 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 be
strongly encouraged to access and consult that information
prior to prescribing or dispensing Schedule II, Schedule III, or
Schedule IV controlled substances. The bill would make other
related and conforming changes.
(3)
( 4) 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.
(4)
( 5) 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.
(5)
( 6) 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 investigative,
preventive, investigative, and educational tool for
law enforcement, health care providers,
regulatory boards, educational researchers, and the health
care community. law enforcement. 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 60,000
800,000 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
effects, effects and serve as a tool for
ensuring safe patient care, and which has proven to be a
cost-effective tool to help reduce the misuse, abuse, and trafficking
of those drugs.
(d) The following goals are critical to increase the effectiveness
and functionality of CURES:
(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.
(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.
(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.
(4) Upgrading the PDMP so that it is capable of accepting
electronic prescriptions, thereby enabling more reliable, complete,
and timely prescription monitoring.
SEC. 2. Section 805.8 is added to the Business and Professions
Code, to read:
805.8. (a) (1) The In addition to the
fees charged for licensure, certification, and renewal, at
the time those fees are charged, 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 Naturopathic Medicine Committee of the Osteopathic Medical
Board of California, the State Board of Optometry, and the
California Board of Podiatric Medicine shall increase the
licensure, certification, and renewal fees charged to practitioners
under their supervision who are charge each licensee
authorized pursuant to Section 11150 of the Health and Safety
Code to prescribe prescribe, order,
administer, furnish, or dispense Schedule II, Schedule III, or
Schedule IV controlled substances by up to 1.16 percent
annually, but in 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 no case shall the
this fee increase exceed the
reasonable costs associated with operating and maintaining
CURES for the purpose of regulating prescribers and dispensers of
controlled substances licensed or certificated by these boards.
(2) The In addition to the fees charged
for licensure, certification, and renewal, at the time those fees are
charged, the California State Board of Pharmacy shall
increase the licensure, certification, and renewal fees charged to
charge wholesalers and nonresident wholesalers
of dangerous drugs, licensed pursuant to Article 11 (commencing with
Section 4160) of Chapter 9, by up to 1.16 percent annually,
but in 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 no case shall
the this fee increase exceed
the reasonable costs associated with operating and
maintaining CURES for the purpose of regulating wholesalers and
nonresident wholesalers of dangerous drugs licensed or certificated
by that board.
(3) The In addition to the fees charged
for licensure, certification, and renewal, at the time those fees are
charged, the California State Board of Pharmacy shall
increase the licensure, certification, and renewal fees charged to
charge veterinary food-animal drug retailers,
licensed pursuant to Article 15 (commencing with Section 4196) of
Chapter 9, by up to 1.16 percent annually, but in
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
' renewal fee. In no case shall the
this fee increase exceed the
reasonable costs associated with operating and 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,
the Naturopathic Doctor's Fund, 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 operating and
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.
SEC. 3. Section 2196.8 is added to the
Business and Professions Code , to read:
2196.8. 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.
SEC. 3. SEC. 4. Section 11165 of the
Health and Safety Code is amended to read:
11165. (a) To assist health care practitioners in their
efforts to ensure appropriate prescribing, ordering, administering,
furnishing, and dispensing of controlled substances, 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, the Naturopathic Doctor's Fund,
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 prescribe prescribe, order,
administer, furnish, 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. The department may
(c) The Department of Justice may
seek and use grant funds to pay the costs incurred from the
reporting of controlled substance prescriptions to by
the operation and maintenance of CURES. The department shall
make information about the amount and the source of all
private grant funds annually report to the Legislature
and make available to the public the amount and source of funds
it receives for support of CURES available to the
public. CURES. 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, or the Osteopathic Medical Board of
California Contingent Fund to pay the costs of reporting
Schedule III and Schedule IV controlled substance prescriptions to
Fund, the Veterinary Medical Board Contingent Fund,
the Optometry Fund, or the Board of Podiatric Medicine Fund, for the
purpose of funding CURES.
(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.
(d) (1) The operation of CURES shall comply with all applicable
federal and state privacy and security laws and regulations.
(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.
(d)
(e) 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
pharmacy or clinic pharmacy, clinic, or other
dispenser shall provide report
the following information to the Department of Justice on a
weekly basis 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, 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) or 10th revision (ICD-10) 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.
(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.
(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.
(h) The Department of Justice may establish a process to educate
authorized subscribers of CURES on how to access and use CURES.
(e)
(i) 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.
SEC. 4. SEC. 5. 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 a notarized
an application developed by the Department of
Justice to obtain approval to access information online
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 10 30 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 (3) and approval of the application
required pursuant to subdivision (a), (3),
licensed health care practitioners eligible to prescribe Schedule II,
Schedule III, or Schedule IV controlled substances and pharmacists
shall be strongly encouraged to 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 the mandate contained
in paragraph (2), all users, 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.
SEC. 5. SEC. 6. 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 upgrading
and modernizing supporting 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.
SEC. 6. SEC. 7. 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.
SEC. 7. SEC. 8. 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.