BILL NUMBER: SB 809 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 28, 2013
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 Sections 805.8 and 2196.8 to the Business and
Professions Code, and to amend Sections 11165
11164.1, 11165, and 11165.1 of
of, and to add Section 11165.4 to, 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
charge practitioners under their supervision who are authorized to
prescribe, order, administer, furnish, or dispense controlled
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 charge wholesalers, nonresident wholesalers, and veterinary
food-animal drug retailers under their supervision 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. The
bill would also permit specified insurers, health care
service plans, and qualified manufacturers, to
voluntarily contribute to the CURES Fund, as described.
(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.
(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.
(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.
(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.
(6)
( 4) 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 no .
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 preventive, investigative, and
educational tool for health care providers, regulatory boards,
educational researchers, and 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 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
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) 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 charge each licensee
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 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 this
fee 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) 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 charge wholesalers and nonresident
wholesalers of dangerous drugs, licensed pursuant to Article 11
(commencing with Section 4160) of Chapter 9, 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 this fee 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) 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 charge veterinary food-animal drug
retailers, licensed pursuant to Article 15 (commencing with Section
4196) of Chapter 9, 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 this fee 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. 4. Section 11164.1 of the Health
and Safety Code is amended to read:
11164.1. (a) (1) Notwithstanding any other provision of law, a
prescription for a controlled substance issued by a prescriber in
another state for delivery to a patient in another state may be
dispensed by a California pharmacy, if the prescription conforms with
the requirements for controlled substance prescriptions in the state
in which the controlled substance was prescribed.
(2) All prescriptions for Schedule II and Schedule III controlled
substances dispensed pursuant to this subdivision shall be reported
by the dispensing pharmacy to the Department of Justice in the manner
prescribed by subdivision (d) (e) of
Section 11165.
(b) Pharmacies may dispense prescriptions for Schedule III,
Schedule IV, and Schedule V controlled substances from out-of-state
prescribers pursuant to Section 4005 of the Business and Professions
Code and Section 1717 of Title 16 of the California Code of
Regulations.
(c) This section shall become operative on January 1, 2005.
SEC. 4. SEC. 5. 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, 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.
(c) The Department of Justice may seek and use grant funds to pay
the costs incurred by the operation and maintenance of CURES. The
department shall annually report to the Legislature and make
available to the public the amount and source of funds it receives
for support of 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, the
Osteopathic Medical Board of California Contingent Fund, the
Veterinary Medical Board Contingent Fund, the Optometry Fund, or the
Board of Podiatric Medicine Fund, for the purpose of funding CURES.
(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.
(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, clinic, or
other dispenser shall report the following information to the
Department of Justice 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.
(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. 5. SEC. 6. 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 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 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), 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 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. 7. Section 11165.4 is added to the
Health and Safety Code , to read:
11165.4. (a) The Department of Justice may seek private funds
from insurers, health care service plans, and qualified manufacturers
for the purpose of supporting CURES. Insurers, health care service
plans, and qualified manufacturers may contribute by submitting their
payment to the Controller for deposit into the CURES Fund
established pursuant to subdivision (e) of Section 11165. The
department shall make information about the amount and the source of
all private funds it receives for support of CURES available to the
public. Contributions to the CURES Fund pursuant to this subdivision
shall be nondeductible for state tax purposes.
(b) For purposes of this section, the following definitions apply:
(1) "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.
(2) "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).
(3) "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.
(4) "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.
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 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. 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. 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.