Amended in Senate April 13, 2016

Senate Bill No. 1193

Introduced by Senator Hill

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(Principal coauthor: Assembly Member Salas)

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February 18, 2016

An act to amend Sections begin delete 4001 and 4003 of end delete begin insert 4001, 4003, 4119.1, and 4400 of, to add Sections 4034, 4203.5, and 4316 to, and to add Article 7.7 (commencing with Section 4129) to Chapter 9 of Division 2 of, end insert the Business and Professions Code, begin insert and to amend Section 13401.5 of the Corporations Code, end insert relating to healing begin delete arts. end delete begin insert arts, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1193, as amended, Hill. begin delete California State Board of Pharmacy: executive officer. end delete begin insert Pharmacy: outsourcing facilities. end insert

The Pharmacy Law provides for the licensure and regulation of the practice of pharmacy by the California State Board of Pharmacy, which is within the Department of Consumer Affairs, and authorizes the board to appoint, with the approval of the Director of Consumer Affairs, an executive officer, as specified. begin delete Existing end delete begin insert That end insert law repeals the provisions establishing the board and authorizing the board to appoint an executive officer as of January 1, 2017. Under existing law, the board is subject to evaluation by the Joint Sunset Review Committee upon its repeal. begin insert That law authorizes a pharmacy to provide pharmacy services to specified licensed health facilities through the use of an automated drug delivery system. That law also provides for the board to issue a license, after an investigation to determine whether the applicant and the premises qualify for a license, that authorizes specified clinics to purchase drugs at wholesale for administration or dispensing, under the direction of a physician and surgeon, to patients registered for care at the clinic. Existing law makes a violation of any provision of the Pharmacy Law punishable as an infraction if no other penalty is provided. end insert

This bill would extend the operation of the board and the board’s authorization to appoint an executive officer until January 1, 2021. begin insert The bill would require a pharmacy to register use of an automated drug delivery system with the board, including the address and location of use. The bill would require the board, when a clinic applicant submits specified types of applications, to issue a license or incorporate changes to an existing license within 30 days of receipt of a completed application and payment of fees. The bill would not limit the board’s authority to investigate to determine whether the applicant and the premises qualify for a license. By placing new requirements on a pharmacy, this bill would expand an existing crime and would, therefore, impose a state-mandated local program. end insert

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The Pharmacy Law prohibits a pharmacy from compounding sterile drug products unless the pharmacy has obtained a sterile compounding pharmacy license from the board and prohibits the board from issuing or renewing that license until the board has, among other things, reviewed a current copy of the pharmacy’s procedures and policies for sterile compounding. Existing law provides that fees collected on behalf of the board are credited to the Pharmacy Board Contingent Fund, which continuously appropriates fees in the fund.

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The bill would require the board to license an outsourcing facility, as defined, and would prohibit an outsourcing facility to be concurrently licensed with the board as a sterile compounding pharmacy at the same location. The bill would require an outsourcing facility to be licensed with the board before doing business within or into the state and would require an outsourcing facility to, among other things, notify the board of any disciplinary or other action taken by another state or the federal Food and Drug Administration within 10 days of the action. The bill would require the board to, among other things, inspect the location of an outsourcing facility to ensure that the outsourcing facility is in compliance with all laws and regulations before issuing or renewing an outsourcing facility’s license. The bill would make a violation of any of these provisions or regulations adopted thereto punishable by a fine of up to $5,000 per occurrence. The bill would, on or after January 1, 2018, require the board to provide a report, as specified, to the Legislature regarding the regulation of nonresident outsourcing facilities. The bill would also authorize the board to collect a fee of $780 for the issuance and renewal of an outsourcing license and a fee of $715 for a temporary license, as specified. By increasing the amount of money deposited into a continuously appropriated fund, the bill would make an appropriation.

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Existing law authorizes specified healing arts licensees to be shareholders, officers, directors, or professional employees of a designated professional corporation, subject to certain limitations relating to ownership of shares.

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This bill would additionally authorize licensed pharmacists to be shareholders, officers, directors, or professional employees of a designated professional corporation, subject to certain limitations relating to ownership of shares.

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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.

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

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

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

SECTION 1.  

Section 4001 of the Business and Professions
Code is amended to read:

4001.  

(a) There is in the Department of Consumer Affairs a
California State Board of Pharmacy in which the administration
and enforcement of this chapter is vested. The board consists of
13 members.

(b) The Governor shall appoint seven competent pharmacists
who reside in different parts of the state to serve as members of
the board. The Governor shall appoint four public members, and
the Senate Committee on Rules and the Speaker of the Assembly
shall each appoint a public member who shall not be a licensee of
the board, any other board under this division, or any board referred
to in Section 1000 or 3600.

(c) At least five of the seven pharmacist appointees to the board
shall be pharmacists who are actively engaged in the practice of
pharmacy. Additionally, the membership of the board shall include
at least one pharmacist representative from each of the following
practice settings: an acute care hospital, an independent community
pharmacy, a chain community pharmacy, and a long-term health
care or skilled nursing facility. The pharmacist appointees shall
also include a pharmacist who is a member of a labor union that
represents pharmacists. For the purposes of this subdivision, a
“chain community pharmacy” means a chain of 75 or more stores
in California under the same ownership, and an “independent
community pharmacy” means a pharmacy owned by a person or
entity who owns no more than four pharmacies in California.

(d) Members of the board shall be appointed for a term of four
years. No person shall serve as a member of the board for more
than two consecutive terms. Each member shall hold office until
the appointment and qualification of his or her successor or until
one year shall have elapsed since the expiration of the term for
which the member was appointed, whichever first occurs.
Vacancies occurring shall be filled by appointment for the
unexpired term.

(e) Each member of the board shall receive a per diem and
expenses as provided in Section 103.

(f) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed. Notwithstanding any other law, the
repeal of this section renders the board subject to review by the
appropriate policy committees of the Legislature.

SEC. 2.  

Section 4003 of the Business and Professions Code is
amended to read:

4003.  

(a) The board, with the approval of the director, may
appoint a person exempt from civil service who shall be designated
as an executive officer and who shall exercise the powers and
perform the duties delegated by the board and vested in him or her
by this chapter. The executive officer may or may not be a member
of the board as the board may determine.

(b) The executive officer shall receive the compensation as
established by the board with the approval of the Director of
Finance. The executive officer shall also be entitled to travel and
other expenses necessary in the performance of his or her duties.

(c) The executive officer shall maintain and update in a timely
fashion records containing the names, titles, qualifications, and
places of business of all persons subject to this chapter.

(d) The executive officer shall give receipts for all money
received by him or her and pay it to the department, taking its
receipt therefor. Besides the duties required by this chapter, the
executive officer shall perform other duties pertaining to the office
as may be required of him or her by the board.

(e) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed.

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begin insert SEC. 3. end insert   

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begin insert Section 4034 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 4034. end insert   

“Outsourcing facility” means a facility that meets all of
the following:

(a) Is located within the United States of America at one address
that is engaged in the compounding of sterile drugs and nonsterile
drugs.

(b) Has registered as an outsourcing facility with the federal
Food and Drug Administration under Section 503B of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 353b).

(c) Is doing business within or into California.

(d) Is licensed with the board as an outsourcing facility pursuant
to Article 7.7 (commencing with Section 4129).

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begin insert SEC. 4. end insert   

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begin insert Section 4119.1 of the end insert begin insert Business and Professions Code end insert

begin insert is amended to read: end insert

4119.1.  

(a) A pharmacy may provide pharmacy services to a
health facility licensed pursuant to subdivision (c), (d), or both, of
Section 1250 of the Health and Safety Code, through the use of
an automated drug delivery system that need not be located at the
same location as the pharmacy.

(b) Drugs stored in an automated drug delivery system shall be
part of the inventory of the pharmacy providing pharmacy services
to that facility, and drugs dispensed from the pharmacy system
shall be considered to have been dispensed by that pharmacy.

(c) (1) The pharmacy shall maintain records of the acquisition
and disposition of dangerous drugs and dangerous devices stored
in the automated drug delivery system separate from other
pharmacy records.

(2) The pharmacy shall own and operate the automated drug
delivery system.

(3) The pharmacy shall provide training regarding the operation
and use of the automated drug delivery system to both pharmacy
and health facility personnel using the system.

(4) The pharmacy shall operate the automated drug delivery
system in compliance with Section 1261.6 of the Health and Safety
Code.

(d) The operation of the automated drug delivery system shall
be under the supervision of a licensed pharmacist. To qualify as a
supervisor for an automated drug delivery system, the pharmacist
need not be physically present at the site of the automated drug
delivery system and may supervise the system electronically.

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(e) The pharmacy shall register use of an automated drug
delivery system with the board, including the address and location
of use.

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(e) Nothing in this

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begin insert (f) end insert begin insert   end insert begin insert This end insert section shall begin insert not end insert be construed to revise or limit the use
of automated drug delivery systems as permitted by the board in
any licensed health facility other than a facility defined in
subdivision (c) or (d), or both, of Section 1250 of the Health and
Safety Code.

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begin insert SEC. 5. end insert   

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begin insert Article 7.7 (commencing with Section 4129) is added
to Chapter 9 of Division 2 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 7.7. end insert   Outsourcing Facilities

 

begin insert 4129. end insert   

(a) A facility licensed as an outsourcing facility with
the federal Food and Drug Administration (FDA) shall be
concurrently licensed with the board as an outsourcing facility if
it compounds sterile medication or nonsterile medication for
nonpatient-specific distribution within or into California.

(b) A facility premises licensed with the board as a sterile
compounding pharmacy shall not be concurrently licensed with
the board as an outsourcing facility at the same location.

(c) The board may adopt regulations in accordance with the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) to establish policies, guidelines, and procedures to
implement this article.

(d) The board shall review any formal requirements or guidance
documents developed by the FDA regarding outsourcing facilities
within 90 days after their release in order to determine whether
revisions are necessary for any regulations promulgated by the
board.

(e) An outsourcing facility licensed by the board shall not
perform the duties of a pharmacy, such as filling individual
prescriptions for individual patients.

begin insert 4129.1. end insert   

(a) An outsourcing facility that is licensed with the
federal Food and Drug Administration (FDA) and with an address
in this state shall also be licensed by the board as an outsourcing
facility before doing business within this state. The license shall
be renewed annually and is not transferable.

(b) An outsourcing facility shall compound all sterile products
and nonsterile products in compliance with regulations issued by
the board and with federal current good manufacturing practices
applicable to outsourcing facilities.

(c) An outsourcing facility license shall not be issued or renewed
until the location is inspected by the board and found in compliance
with this article and regulations adopted by the board.

(d) An outsourcing facility license shall not be issued or renewed
until the board does all of the following:

(1) Prior to inspection, reviews a current copy of the outsourcing
facility’s policies and procedures for sterile compounding and
nonsterile compounding.

(2) Is provided with copies of all federal and state regulatory
agency inspection reports, as well as accreditation reports, and
certification reports of facilities or equipment of the outsourcing
facility’s premises conducted in the prior 12 months.

(3) Prior to inspection, receives a list of all sterile drugs and
nonsterile drugs compounded by the outsourcing facility as
reported to the FDA in the last 12 months.

(e) An outsourcing facility licensed pursuant to this section shall
provide the board with all of the following:

(1) A copy of any disciplinary or other action taken by another
state or the FDA within 10 days of the action.

(2) Notice within 24 hours of any recall notice issued by the
outsourcing facility.

(3) A copy of any clinically related complaint it receives
involving an outsourcing facility’s compounded products from or
involving any provider, pharmacy, or patient in California within
72 hours of receipt.

(4) Notice within 24 hours after learning of adverse effects
reported or potentially attributable to the outsourcing facility’s
products.

begin insert 4129.2. end insert   

(a) An outsourcing facility that is licensed with the
federal Food and Drug Administration (FDA) as an outsourcing
facility and has an address outside of this state but in the United
States of America is a nonresident outsourcing facility. A
nonresident outsourcing facility shall not compound sterile drug
products or nonsterile drug products for distribution or use into
this state without an outsourcing license issued by the board
pursuant to this section. The license shall be renewed annually
and shall not be transferable.

(b) A nonresident outsourcing facility shall compound all sterile
products and nonsterile products to be distributed or used in this
state in compliance with regulations of the board and with federal
current good manufacturing practices applicable to outsourcing
facilities.

(c) A license for a nonresident outsourcing facility shall not be
issued or renewed until the location is inspected by the board and
found in compliance with this article and any regulations adopted
by the board. The nonresident outsourcing facility shall reimburse
the board for all actual and necessary costs incurred by the board
in conducting an inspection of the nonresident outsourcing facility
at least once annually pursuant to subdivision (x) of Section 4400.

(d) A license for a nonresident outsourcing facility shall not be
issued or renewed until the board:

(1) Prior to inspection, reviews a current copy of the nonresident
outsourcing facility’s policies and procedures for sterile
compounding and nonsterile compounding.

(2) Is provided with copies of all federal and state regulatory
agency inspection reports, as well as accreditation reports, and
certification reports of facilities or equipment of the nonresident
outsourcing facility’s premises conducted in the prior 12 months.

(3) Prior to inspection, receives a list of all sterile drug products
and nonsterile drug products compounded by the pharmacy as
reported to the FDA within the prior 12 months.

(e) A nonresident outsourcing facility licensed pursuant to this
section shall provide the board with all of the following:

(1) A copy of any disciplinary or other action taken by another
state or the FDA within 10 days of the action.

(2) Notice within 24 hours of any recall notice issued by the
nonresident outsourcing facility.

(3) A copy of any complaint it receives involving an outsourcing
facility’s compounded products from or involving any provider,
pharmacy, or patient in California within 72 hours of receipt.

(4) Notice within 24 hours after learning of adverse effects
reported or potentially attributable to a nonresident outsourcing
facility’s products.

begin insert 4129.3. end insert   

(a) On or before January 1, 2018, the board shall
provide a report to the Legislature regarding the regulation of
nonresident outsourcing facilities. The report shall be submitted
to the Legislature in the manner required pursuant to Section 9795
of the Government Code. At a minimum, the report shall address
all of the following:

(1) A detailed description of board activities related to the
inspection and licensure of nonresident outsourcing facilities.

(2) Whether fee revenue collected pursuant to subdivision (x)
of Section 4400 and travel cost reimbursements collected pursuant
to subdivision (c) of Section 4129.2 provide revenue in an amount
sufficient to support the board’s activities related to the inspection
and licensure of nonresident outsourcing facilities.

(3) The status of proposed changes to federal law that are under
serious consideration and that would govern outsourcing facilities
and compounding pharmacies, including, but not limited to,
legislation pending before Congress, administrative rules,
regulations or orders under consideration by the FDA or other
appropriate federal agency, and cases pending before the courts.

(4) If applicable, recommended modifications to the board’s
statutory duties related to nonresident outsourcing facilities as a
result of changes to federal law or any additional modifications
necessary to protect the health and safety of the public.

(b) The requirement for submitting a report imposed under
subdivision (a) is inoperative on January 1, 2022, pursuant to
Section 10231.5 of the Government Code.

begin insert 4129.4. end insert   

(a) Whenever the board has a reasonable belief, based
on information obtained during an inspection or investigation by
the board, that an outsourcing facility compounding sterile drug
products or nonsterile drug products poses an immediate threat
to the public health or safety, the executive officer of the board
may issue an order to the outsourcing facility to immediately cease
and desist compounding sterile drug products or nonsterile drug
products. The cease and desist order shall remain in effect for no
more than 30 days or the date of a hearing seeking an interim
suspension order, whichever is earlier.

(b) Whenever the board issues a cease and desist order pursuant
to subdivision (a), the board shall immediately issue a notice to
the owner setting forth the acts or omissions with which the owner
is charged, specifying the pertinent code section or sections and
any regulations.

(c) The cease and desist order shall state that the owner, within
15 days of receipt of the notice, may request a hearing before the
president of the board to contest the cease and desist order.
Consideration of the owner’s contest of the cease and desist order
shall comply with the requirements of Section 11425.10 of the
Government Code. The hearing shall be held no later than five
days after the date the request of the owner is received by the
board. The president shall render a written decision within five
days after the hearing. In the absence of the president of the board,
the vice president of the board may conduct the hearing permitted
by this subdivision. Review of the decision may be sought by the
owner or person in possession or control of the outsourcing facility
pursuant to Section 1094.5 of the Code of Civil Procedure.

(d) Failure to comply with a cease and desist order issued
pursuant to this section shall be unprofessional conduct.

begin insert 4129.5. end insert   

Notwithstanding any other law, a violation of this
article, or regulation adopted pursuant thereto, may subject the
person or entity that committed the violation to a fine of up to five
thousand dollars ($5,000) per occurrence pursuant to a citation
issued by the board.

begin insert 4129.6. end insert   

For purposes of this article, “sterile compounded
products” means compounded preparations for injection,
administration into the eye, or inhalation.

begin insert 4129.8. end insert   

The board, at its discretion, may issue a temporary
license to an outsourcing facility when the ownership of the
outsourcing facility is transferred from one person to another,
upon the conditions and for any periods of time as the board
determines to be in the public interest. A temporary license fee
shall be required as specified in subdivision (w) of Section 4400.
When needed to protect public safety, a temporary license may be
issued for a period not to exceed 180 days, and may be issued
subject to terms and conditions the board deems necessary. If the
board determines a temporary license was issued by mistake or
denies the application for a permanent license, the temporary
license shall terminate upon the earlier of personal service of the
notice of termination upon the licenseholder or service by certified
mail with return receipt requested at the licenseholder’s address
of record with the board. The temporary licenseholder shall not
be deemed to have a vested property right or interest in the license
for purposes of retaining a temporary license or for purposes of
any disciplinary or license denial proceeding before the board.

begin insert 4129.9. end insert   

(a) An outsourcing facility licensed pursuant to Section
4129.1 or 4129.2 that issues a recall notice for a sterile drug or
nonsterile drug compounded by the outsourcing facility, in addition
to any other duties, shall contact the recipient pharmacy,
prescriber, or patient of the recalled drug and the board as soon
as possible within 24 hours of the recall notice if both of the
following apply:

(1) Use of or exposure to the recalled drug may cause serious
adverse health consequences or death.

(2) The recalled drug was dispensed, or is intended for use, in
this state.

(b) A recall notice issued pursuant to subdivision (a) shall be
made as follows:

(1) If the recalled drug was dispensed directly to the prescriber,
the notice shall be made to the prescriber and the prescriber shall
ensure the patient is notified.

(2) If the recalled drug was dispensed directly to a pharmacy,
the notice shall be made to the pharmacy and that pharmacy shall
notify the prescriber or patient, as appropriate. If the pharmacy
notifies the prescriber, the prescriber shall ensure the patient is
notified.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 4203.5 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4203.5. end insert   

(a) Notwithstanding any other law, when a clinic
applicant submits either type of application described in
subdivision (b), the board shall issue a license or incorporate the
reported changes, as appropriate, within 30 days of receipt of a
completed application and payment of any prescribed fees.

(b) This section applies to the following types of applications:

(1) A new clinic license application filed under Section 4180.

(2) Applications to report changes to an existing site licensed
under Section 4180, including, but not limited to, changes in
professional director, clinic administrator, corporate officers,
change of location, or change of address.

(c) This section shall not be construed to limit the board’s
authority to conduct an investigation to determine whether
applicants and the premises for which an application is made
qualify for a license.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 4316 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4316. end insert   

(a) The board is authorized to issue a cease and desist
order for operating any facility under this chapter that requires
licensure or for practicing any activity under this chapter that
requires licensure.

(b) Whenever the board issues a cease and desist order pursuant
to subdivision (a), the board shall immediately issue the facility a
notice setting forth the acts or omissions with which it is charged,
specifying the pertinent code section or sections and any
regulations.

(c) The order shall provide that the facility, within 15 days of
receipt of the notice, may request a hearing before the president
of the board to contest the cease and desist order. Consideration
of the facility’s contest of the cease and desist order shall comply
with the requirements of Section 11425.10 of the Government
Code. The hearing shall be held no later than five days from the
date the request of the owner is received by the board. The
president shall render a written decision within five days of the
hearing. In the absence of the president of the board, the vice
president of the board may conduct the hearing permitted by this
subdivision. Review of the decision of the president of the board
may be sought by the owner or person in possession or control of
the pharmacy pursuant to Section 1094.5 of the Code of Civil
Procedure.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 4400 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4400.  

The amount of fees and penalties prescribed by this
chapter, except as otherwise provided, is that fixed by the board
according to the following schedule:

(a) The fee for a nongovernmental pharmacy license shall be
four hundred dollars ($400) and may be increased to five hundred
twenty dollars ($520). The fee for the issuance of a temporary
nongovernmental pharmacy permit shall be two hundred fifty
dollars ($250) and may be increased to three hundred twenty-five
dollars ($325).

(b) The fee for a nongovernmental pharmacy license annual
renewal shall be two hundred fifty dollars ($250) and may be
increased to three hundred twenty-five dollars ($325).

(c) The fee for the pharmacist application and examination shall
be two hundred dollars ($200) and may be increased to two
hundred sixty dollars ($260).

(d) The fee for regrading an examination shall be ninety dollars
($90) and may be increased to one hundred fifteen dollars ($115).
If an error in grading is found and the applicant passes the
examination, the regrading fee shall be refunded.

(e) The fee for a pharmacist license and biennial renewal shall
be one hundred fifty dollars ($150) and may be increased to one
hundred ninety-five dollars ($195).

(f) The fee for a nongovernmental wholesaler or third-party
logistics provider license and annual renewal shall be seven
hundred eighty dollars ($780) and may be decreased to no less
than six hundred dollars ($600). The application fee for any
additional location after licensure of the first 20 locations shall be
three hundred dollars ($300) and may be decreased to no less than
two hundred twenty-five dollars ($225). A temporary license fee
shall be seven hundred fifteen dollars ($715) and may be decreased
to no less than five hundred fifty dollars ($550).

(g) The fee for a hypodermic license and renewal shall be one
hundred twenty-five dollars ($125) and may be increased to one
hundred sixty-five dollars ($165).

(h) (1) The fee for application, investigation, and issuance of
a license as a designated representative pursuant to Section 4053,
or as a designated representative-3PL pursuant to Section 4053.1,
shall be three hundred thirty dollars ($330) and may be decreased
to no less than two hundred fifty-five dollars ($255).

(2) The fee for the annual renewal of a license as a designated
representative or designated representative-3PL shall be one
hundred ninety-five dollars ($195) and may be decreased to no
less than one hundred fifty dollars ($150).

(i) (1) The fee for the application, investigation, and issuance
of a license as a designated representative for a veterinary
food-animal drug retailer pursuant to Section 4053 shall be three
hundred thirty dollars ($330) and may be decreased to no less than
two hundred fifty-five dollars ($255).

(2) The fee for the annual renewal of a license as a designated
representative for a veterinary food-animal drug retailer shall be
one hundred ninety-five dollars ($195) and may be decreased to
no less than one hundred fifty dollars ($150).

(j) (1) The application fee for a nonresident wholesaler or
third-party logistics provider license issued pursuant to Section
4161 shall be seven hundred eighty dollars ($780) and may be
decreased to no less than six hundred dollars ($600).

(2) For nonresident wholesalers or third-party logistics providers
that have 21 or more facilities operating nationwide the application
fees for the first 20 locations shall be seven hundred eighty dollars
($780) and may be decreased to no less than six hundred dollars
($600). The application fee for any additional location after
licensure of the first 20 locations shall be three hundred dollars
($300) and may be decreased to no less than two hundred
twenty-five dollars ($225). A temporary license fee shall be seven
hundred fifteen dollars ($715) and may be decreased to no less
than five hundred fifty dollars ($550).

(3) The annual renewal fee for a nonresident wholesaler license
or third-party logistics provider license issued pursuant to Section
4161 shall be seven hundred eighty dollars ($780) and may be
decreased to no less than six hundred dollars ($600).

(k) The fee for evaluation of continuing education courses for
accreditation shall be set by the board at an amount not to exceed
forty dollars ($40) per course hour.

(l) The fee for an intern pharmacist license shall be ninety dollars
($90) and may be increased to one hundred fifteen dollars ($115).
The fee for transfer of intern hours or verification of licensure to
another state shall be twenty-five dollars ($25) and may be
increased to thirty dollars ($30).

(m) The board may waive or refund the additional fee for the
issuance of a license where the license is issued less than 45 days
before the next regular renewal date.

(n) The fee for the reissuance of any license, or renewal thereof,
that has been lost or destroyed or reissued due to a name change
shall be thirty-five dollars ($35) and may be increased to forty-five
dollars ($45).

(o) The fee for the reissuance of any license, or renewal thereof,
that must be reissued because of a change in the information, shall
be one hundred dollars ($100) and may be increased to one hundred
thirty dollars ($130).

(p) It is the intent of the Legislature that, in setting fees pursuant
to this section, the board shall seek to maintain a reserve in the
Pharmacy Board Contingent Fund equal to approximately one
year’s operating expenditures.

(q) The fee for any applicant for a nongovernmental clinic
license shall be four hundred dollars ($400) and may be increased
to five hundred twenty dollars ($520) for each license. The annual
fee for renewal of the license shall be two hundred fifty dollars
($250) and may be increased to three hundred twenty-five dollars
($325) for each license.

(r) The fee for the issuance of a pharmacy technician license
shall be eighty dollars ($80) and may be increased to one hundred
five dollars ($105). The fee for renewal of a pharmacy technician
license shall be one hundred dollars ($100) and may be increased
to one hundred thirty dollars ($130).

(s) The fee for a veterinary food-animal drug retailer license
shall be four hundred five dollars ($405) and may be increased to
four hundred twenty-five dollars ($425). The annual renewal fee
for a veterinary food-animal drug retailer license shall be two
hundred fifty dollars ($250) and may be increased to three hundred
twenty-five dollars ($325).

(t) The fee for issuance of a retired license pursuant to Section
4200.5 shall be thirty-five dollars ($35) and may be increased to
forty-five dollars ($45).

(u) The fee for issuance or renewal of a nongovernmental sterile
compounding pharmacy license shall be six hundred dollars ($600)
and may be increased to seven hundred eighty dollars ($780). The
fee for a temporary license shall be five hundred fifty dollars ($550)
and may be increased to seven hundred fifteen dollars ($715).

(v) The fee for the issuance or renewal of a nonresident sterile
compounding pharmacy license shall be seven hundred eighty
dollars ($780). In addition to paying that application fee, the
nonresident sterile compounding pharmacy shall deposit, when
submitting the application, a reasonable amount, as determined by
the board, necessary to cover the board’s estimated cost of
performing the inspection required by Section 4127.2. If the
required deposit is not submitted with the application, the
application shall be deemed to be incomplete. If the actual cost of
the inspection exceeds the amount deposited, the board shall
provide to the applicant a written invoice for the remaining amount
and shall not take action on the application until the full amount
has been paid to the board. If the amount deposited exceeds the
amount of actual and necessary costs incurred, the board shall
remit the difference to the applicant.

begin delete

(w) This section shall become operative on July 1, 2014.

end delete begin insert

(w) The fee for the issuance or renewal of an outsourcing facility
license shall be seven hundred eighty dollars ($780). The fee for
a temporary outsourcing facility license shall be seven hundred
fifteen dollars ($715).

end insert begin insert

(x) The fee for the issuance or renewal of a nonresident
outsourcing facility license shall be seven hundred eighty dollars
($780). In addition to paying that application fee, the nonresident
outsourcing facility shall deposit, when submitting the application,
a reasonable amount, as determined by the board, necessary to
cover the board’s estimated cost of performing the inspection
required by Section 4129.2. If the required deposit is not submitted
with the application, the application shall be deemed to be
incomplete. If the actual cost of the inspection exceeds the amount
deposited, the board shall provide to the applicant a written invoice
for the remaining amount and shall not take action on the
application until the full amount has been paid to the board. If the
amount deposited exceeds the amount of actual and necessary
costs incurred, the board shall remit the difference to the applicant.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 13401.5 of the end insert begin insert Corporations Code end insert begin insert is amended
to read: end insert

13401.5.  

Notwithstanding subdivision (d) of Section 13401
and any other provision of law, the following licensed persons
may be shareholders, officers, directors, or professional employees
of the professional corporations designated in this section so long
as the sum of all shares owned by those licensed persons does not
exceed 49 percent of the total number of shares of the professional
corporation so designated herein, and so long as the number of
those licensed persons owning shares in the professional
corporation so designated herein does not exceed the number of
persons licensed by the governmental agency regulating the
designated professional corporation. This section does not limit
employment by a professional corporation designated in this section
to only those licensed professionals listed under each subdivision.
Any person duly licensed under Division 2 (commencing with
Section 500) of the Business and Professions Code, the
Chiropractic Act, or the Osteopathic Act may be employed to
render professional services by a professional corporation
designated in this section.

(a) Medical corporation.

(1) Licensed doctors of podiatric medicine.

(2) Licensed psychologists.

(3) Registered nurses.

(4) Licensed optometrists.

(5) Licensed marriage and family therapists.

(6) Licensed clinical social workers.

(7) Licensed physician assistants.

(8) Licensed chiropractors.

(9) Licensed acupuncturists.

(10) Naturopathic doctors.

(11) Licensed professional clinical counselors.

(12) Licensed physical therapists.

begin insert

(13) Licensed pharmacists.

end insert

(b) Podiatric medical corporation.

(1) Licensed physicians and surgeons.

(2) Licensed psychologists.

(3) Registered nurses.

(4) Licensed optometrists.

(5) Licensed chiropractors.

(6) Licensed acupuncturists.

(7) Naturopathic doctors.

(8) Licensed physical therapists.

(c) Psychological corporation.

(1) Licensed physicians and surgeons.

(2) Licensed doctors of podiatric medicine.

(3) Registered nurses.

(4) Licensed optometrists.

(5) Licensed marriage and family therapists.

(6) Licensed clinical social workers.

(7) Licensed chiropractors.

(8) Licensed acupuncturists.

(9) Naturopathic doctors.

(10) Licensed professional clinical counselors.

(d) Speech-language pathology corporation.

(1) Licensed audiologists.

(e) Audiology corporation.

(1) Licensed speech-language pathologists.

(f) Nursing corporation.

(1) Licensed physicians and surgeons.

(2) Licensed doctors of podiatric medicine.

(3) Licensed psychologists.

(4) Licensed optometrists.

(5) Licensed marriage and family therapists.

(6) Licensed clinical social workers.

(7) Licensed physician assistants.

(8) Licensed chiropractors.

(9) Licensed acupuncturists.

(10) Naturopathic doctors.

(11) Licensed professional clinical counselors.

(g) Marriage and family therapist corporation.

(1) Licensed physicians and surgeons.

(2) Licensed psychologists.

(3) Licensed clinical social workers.

(4) Registered nurses.

(5) Licensed chiropractors.

(6) Licensed acupuncturists.

(7) Naturopathic doctors.

(8) Licensed professional clinical counselors.

(h) Licensed clinical social worker corporation.

(1) Licensed physicians and surgeons.

(2) Licensed psychologists.

(3) Licensed marriage and family therapists.

(4) Registered nurses.

(5) Licensed chiropractors.

(6) Licensed acupuncturists.

(7) Naturopathic doctors.

(8) Licensed professional clinical counselors.

(i) Physician assistants corporation.

(1) Licensed physicians and surgeons.

(2) Registered nurses.

(3) Licensed acupuncturists.

(4) Naturopathic doctors.

(j) Optometric corporation.

(1) Licensed physicians and surgeons.

(2) Licensed doctors of podiatric medicine.

(3) Licensed psychologists.

(4) Registered nurses.

(5) Licensed chiropractors.

(6) Licensed acupuncturists.

(7) Naturopathic doctors.

(k) Chiropractic corporation.

(1) Licensed physicians and surgeons.

(2) Licensed doctors of podiatric medicine.

(3) Licensed psychologists.

(4) Registered nurses.

(5) Licensed optometrists.

(6) Licensed marriage and family therapists.

(7) Licensed clinical social workers.

(8) Licensed acupuncturists.

(9) Naturopathic doctors.

(10) Licensed professional clinical counselors.

(l) Acupuncture corporation.

(1) Licensed physicians and surgeons.

(2) Licensed doctors of podiatric medicine.

(3) Licensed psychologists.

(4) Registered nurses.

(5) Licensed optometrists.

(6) Licensed marriage and family therapists.

(7) Licensed clinical social workers.

(8) Licensed physician assistants.

(9) Licensed chiropractors.

(10) Naturopathic doctors.

(11) Licensed professional clinical counselors.

(m) Naturopathic doctor corporation.

(1) Licensed physicians and surgeons.

(2) Licensed psychologists.

(3) Registered nurses.

(4) Licensed physician assistants.

(5) Licensed chiropractors.

(6) Licensed acupuncturists.

(7) Licensed physical therapists.

(8) Licensed doctors of podiatric medicine.

(9) Licensed marriage and family therapists.

(10) Licensed clinical social workers.

(11) Licensed optometrists.

(12) Licensed professional clinical counselors.

(n) Dental corporation.

(1) Licensed physicians and surgeons.

(2) Dental assistants.

(3) Registered dental assistants.

(4) Registered dental assistants in extended functions.

(5) Registered dental hygienists.

(6) Registered dental hygienists in extended functions.

(7) Registered dental hygienists in alternative practice.

(o) Professional clinical counselor corporation.

(1) Licensed physicians and surgeons.

(2) Licensed psychologists.

(3) Licensed clinical social workers.

(4) Licensed marriage and family therapists.

(5) Registered nurses.

(6) Licensed chiropractors.

(7) Licensed acupuncturists.

(8) Naturopathic doctors.

(p) Physical therapy corporation.

(1) Licensed physicians and surgeons.

(2) Licensed doctors of podiatric medicine.

(3) Licensed acupuncturists.

(4) Naturopathic doctors.

(5) Licensed occupational therapists.

(6) Licensed speech-language therapists.

(7) Licensed audiologists.

(8) Registered nurses.

(9) Licensed psychologists.

(10) Licensed physician assistants.

(q) Registered dental hygienist in alternative practice
corporation.

(1) Registered dental assistants.

(2) Licensed dentists.

(3) Registered dental hygienists.

(4) Registered dental hygienists in extended functions.

begin insert

begin insert SEC. 10. end insert   

end insert begin 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.

end insert