Amended in Senate April 7, 2014

Senate Bill No. 960

Introduced by Senator begin delete Berryhill end delete begin insert Morrell end insert

February 6, 2014

An act to begin delete amend Section 19801 of the Business and Professions Code, relating to gambling end delete begin insert add Section 4310.5 to the Business and Professions Code, relating to pharmacy end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 960, as amended, begin delete Berryhill end delete   begin insert Morrell end insert . begin delete Gambling. end delete begin insert Pharmacy. end insert

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Existing law, the Pharmacy Law, provides for the regulation and licensure of pharmacists by the California State Pharmacy Board. Existing law authorizes the board to refuse to license an applicant guilty of unprofessional conduct or to issue, at its sole discretion, a probationary license to an applicant who has met all other licensure requirements.

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This bill would authorize the board to issue a license to an applicant who has committed minor violations that the board deems, in its discretion, do not merit the denial of a license or require probationary status, and to concurrently issue a public letter of reprimand, as specified. The bill would require the letter of reprimand to, among other things, describe in detail the nature and facts of the violation and inform the licensee that he or she may accept the letter of reprimand without challenge or, within 30 days of service of the letter, submit a written request for an office conference to contest the letter of reprimand. The bill would require the executive director of the board, or his or her designee, to hold an office conference with the licensee and his or her legal counsel or authorized representative, if any, within 30 days of receipt of the request, as specified. The bill would authorize the executive officer, or his or her designee, to affirm, modify, or withdraw the letter of reprimand and would require the executive officer, or his or her designee, to provide the licensee with a written decision within 14 calendar days from the date of the office conference. The bill would require a letter of reprimand issued concurrently with a board license to be purged 3 years from the date of issuance, as specified. The bill would require a letter of reprimand to be disclosed to an inquiring member of the public and posted on the board’s Internet Web site.

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The Gambling Control Act provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law makes related findings and declarations.

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This bill would make technical, nonsubstantive changes to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 4310.5 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

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begin insert 4310.5. end insert   

(a) Notwithstanding subdivision (c) of Section 4300,
the board may issue a license to an applicant who has committed
minor violations that the board deems, in its discretion, do not
merit the denial of a license or require probationary status under
Section 4300, and may concurrently issue a public letter of
reprimand.

(b) The letter of reprimand shall be in writing and shall describe
in detail the nature and facts of the violation, including a reference
to the statutes or regulations violated.

(c) The letter of reprimand shall inform the licensee that within
30 days of service of the letter of reprimand the licensee may do
either of the following:

(1) Submit a written request for an office conference to the
executive officer of the board to contest the letter of reprimand.

(A)  Within 30 days of receipt of the request, the executive
officer, or his or her designee, shall hold an office conference with
the licensee and the licensee’s legal counsel or authorized
representative, if any. Unless authorized by the executive officer,
or his or her designee, no individual other than the legal counsel
or authorized representative of the licensee may accompany the
licensee to the office conference.

(B) Prior to or at the office conference, the licensee may submit
to the executive officer, or his or her designee, declarations and
documents pertinent to the subject matter of the letter of reprimand.

(C) The office conference is intended to be an informal
proceeding and shall not be subject to the provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340), Chapter 4 (commencing with Section 11370),
Chapter 4.5 (commencing with Section 11400), and Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title
2 of the Government Code).

(D) The executive officer, or his or her designee, may affirm,
modify, or withdraw the letter of reprimand. Within 14 calendar
days from the date of the office conference, the executive officer,
or his or her designee, shall personally serve or send by certified
mail to the licensee’s address of record with the board a written
decision. This decision shall be deemed the final administrative
decision concerning the letter of reprimand.

(E) Judicial review of the decision may be had by filing a
petition for a writ of mandate in accordance with the provisions
of Section 1094.5 of the Code of Civil Procedure within 30 days
of the date the decision was personally served or sent by certified
mail. The judicial review shall extend to the question of whether
or not there was a prejudicial abuse of discretion in the issuance
of the letter of reprimand.

(2) The licensee may accept the letter of reprimand without
challenge. The board shall inform the licensee that the letter of
reprimand shall be purged after three years if no letter of
admonishment, citation, notice of correction, or disciplinary action
is initiated by the board within those three years.

(d) The letter of reprimand shall be served upon the licensee
personally or by certified mail at the applicant’s address of record
with the board. If the applicant is served by certified mail, service
shall be effective upon deposit in the United States mail.

(e) A public letter of reprimand issued concurrently with a board
license shall be purged three years from the date of issuance if no
letter of admonishment, citation, notice of correction, or
disciplinary action is initiated by the board during the three-year
period.

(f) A public letter of reprimand issued pursuant to this section
shall be disclosed to an inquiring member of the public and shall
be posted on the board’s Internet Web site.

(g) Nothing in this section shall be construed to affect the
board’s authority to issue an unrestricted license.

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SECTION 1.  

Section 19801 of the Business and Professions
Code is amended to read:

19801.  

The Legislature hereby finds and declares all of the
following:

(a) State law prohibits commercially operated lotteries, banked
or percentage games, and gambling machines, and strictly regulates
parimutuel wagering on horse racing. To the extent that state law
categorically prohibits certain forms of gambling and prohibits
gambling devices, nothing herein shall be construed, in any manner,
to reflect a legislative intent to relax those prohibitions.

(b) The State of California has permitted the operation of
gambling establishments for more than 100 years. Gambling
establishments were first regulated by the State of California
pursuant to legislation that was enacted in 1984. Gambling
establishments currently employ more than 20,000 people in the
State of California, and contribute more than one hundred million
dollars ($100,000,000) in taxes and fees to California’s
government. Gambling establishments are lawful enterprises in
the State of California and are entitled to full protection of the laws
of this state.

(c) Gambling can become addictive and is not an activity to be
promoted or legitimized as entertainment for children and families.

(d) Unregulated gambling enterprises are inimical to the public
health, safety, welfare, and good order. Accordingly, no person in
this state has a right to operate a gambling enterprise except as
may be expressly permitted by the laws of this state and by the
ordinances of local governmental bodies.

(e) It is the policy of this state that gambling activities that are
not expressly prohibited or regulated by state law may be prohibited
or regulated by local government. Moreover, it is the policy of this
state that no new gambling establishment may be opened in a city,
county, or city and county in which a gambling establishment was
not operating on and before January 1, 1984, except upon the
affirmative vote of the electors of that city, county, or city and
county.

(f) It is not the purpose of this chapter to expand opportunities
for gambling, or to create any right to operate a gambling enterprise
in this state or to have a financial interest in any gambling
enterprise. Rather, it is the purpose of this chapter to regulate
businesses that offer otherwise lawful forms of gambling games.

(g) Public trust that permissible gambling will not endanger
public health, safety, or welfare requires that comprehensive
measures be enacted to ensure that gambling is free from criminal
and corruptive elements, that it is conducted honestly and
competitively, and that it is conducted in suitable locations.

(h) Public trust and confidence can only be maintained by strict
and comprehensive regulation of all persons, locations, practices,
associations, and activities related to the operation of lawful
gambling establishments and the manufacture and distribution of
permissible gambling equipment.

(i) All gambling operations, all persons having a significant
involvement in gambling operations, all establishments where
gambling is conducted, and all manufacturers, sellers, and
distributors of gambling equipment must be licensed and regulated
to protect the public health, safety, and general welfare of the
residents of this state as an exercise of the police powers of the
state.

(j) To ensure that gambling is conducted honestly, competitively,
and free from criminal and corruptive elements, all licensed
gambling establishments in this state must remain open to the
general public, and the access of the general public to licensed
gambling activities must not be restricted in any manner, except
as provided by the Legislature. However, subject to state and
federal prohibitions against discrimination, nothing in this chapter
shall be construed to preclude exclusion of unsuitable persons from
licensed gambling establishments in the exercise of reasonable
business judgment.

(k) In order to effectuate state policy as declared in this section,
it is necessary that gambling establishments, activities, and
equipment be licensed, that persons participating in those activities
be licensed or registered, that certain transactions, events, and
processes involving gambling establishments and owners of
gambling establishments be subject to prior approval or permission,
that unsuitable persons not be permitted to associate with gambling
activities or gambling establishments, and that gambling activities
take place only in suitable locations. Any license or permit issued,
or other approval granted pursuant to this chapter, is declared to
be a revocable privilege, and no holder acquires any vested right
in that license, permit, or other approval or under this chapter.

(l) The location of lawful gambling premises, the hours of
operation of those premises, the number of tables permitted in
those premises, and wagering limits in permissible games
conducted in those premises are proper subjects for regulation by
local governmental bodies. However, consideration of those same
subjects by a state regulatory agency, as specified in this chapter,
is warranted when local governmental regulation respecting those
subjects is inadequate or the regulation fails to safeguard the
legitimate interests of residents in other governmental jurisdictions.

(m) The exclusion or ejection of certain persons from gambling
establishments is necessary to effectuate the policies of this chapter
and to maintain effectively the strict regulation of licensed
gambling.

(n) Records and reports of cash and credit transactions involving
gambling establishments may have a high degree of usefulness in
criminal and regulatory investigations and, therefore, licensed
gambling operators may be required to keep records and make
reports concerning significant cash and credit transactions.

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