Amended in Senate June 1, 2016

Amended in Senate April 6, 2016

Senate BillNo. 1195


Introduced by Senator Hill

February 18, 2016


An act to amend Sections 109, 116, 153, 307, 313.1, 2708, 4800, 4804.5,begin delete 4825.1,end delete 4830,begin delete and 4846.5end deletebegin insert 4846.5, 4904, and 4905end insert of, and to add Sectionsbegin delete 4826.3, 4826.5, 4826.7,end deletebegin insert 109.5, 4826.5,end insert 4848.1, and 4853.7 to, the Business and Professions Code, and to amend Sectionsbegin delete 825, 11346.5, 11349, and 11349.1end deletebegin insert 825 and 11346.5end insert of the Government Code, relating to professionalbegin delete regulation, and making an appropriation therefor.end deletebegin insert regulations.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1195, as amended, Hill. Professions and vocations: boardbegin delete actions: competitive impact.end deletebegin insert actions.end insert

(1) Existing law provides for the licensure and regulation of various professions and vocations by boards within the Department of Consumer Affairs, and authorizes those boards to adopt regulations to enforce the laws pertaining to the profession and vocation for which they have jurisdiction. Existing law makes decisions of any board within the department pertaining to setting standards, conducting examinations, passing candidates, and revoking licenses final, except as specified, and provides that those decisions are not subject to review by the Director of Consumer Affairs. Existing law authorizes the director to audit and review certain inquiries and complaints regarding licensees, including the dismissal of a disciplinary case. Existing law requires the director to annually report to the chairpersons of certain committees of the Legislature information regarding findings from any audit, review, or monitoring and evaluation. Existing law authorizes the director to contract for services of experts and consultants where necessary. Existing law requires regulations, except those pertaining to examinations and qualifications for licensure and fee changes proposed or promulgated by a board within the department, to comply with certain requirements before the regulation or fee change can take effect, including that the director is required to be notified of the rule or regulation and given 30 days to disapprove the regulation. Existing law prohibits a rule or regulation that is disapproved by the director from having any force or effect, unless the director’s disapproval is overridden by a unanimous vote of the members of the board, as specified.

This bill would instead authorize the director, upon his or her own initiative, and require the director, upon the request ofbegin delete a consumer or licensee,end deletebegin insert the board making the decision or the Legislature,end insert to reviewbegin delete aend deletebegin insert any nonministerial market-end insertbegin insertsensitiveend insert decision or other action, except as specified, of a board within the department to determine whether itbegin delete unreasonably restrains tradeend deletebegin insert furthers state lawend insert and to approve, disapprove,begin insert request further information,end insert or modify the board decision or action, as specified. The bill would require the director tobegin insert issue andend insert post on the department’s Internet Web site his or her final written decision and the reasons for the decision within 90 days from receipt of thebegin delete request of a consumer or licensee.end deletebegin insert request for review or the director’s decision to review the board decision. The bill would prohibit the executive officer of any board, committee, or commission within the department from being an active licensee of any profession that board, committee, or commission regulates.end insert The bill would, commencing on March 1, 2017, require the director to annually report to the chairs of specified committees of the Legislature information regarding the director’s disapprovals, modifications, or findings from any audit, review, or monitoring and evaluation. The bill would authorize the director to seek, designate, employ, or contract for the services of independent antitrust experts for purposes of reviewing board actions for unreasonable restraints on trade. The bill would also require the director to review and approve any regulation promulgated by a board within the department, as specified.begin delete The bill would authorize the director to modify any regulation as a condition of approval, and to disapprove a regulation because it would have an impermissible anticompetitive effect.end deletebegin insert The bill would authorize the director, for a specified period of time, to approve, disapprove, or require modification of a proposed rule or regulation on the ground that it does not further state law.end insert The bill would prohibit any rule or regulation from having any force or effect if the director does not approve thebegin delete regulation because it has an impermissible anticompetitive effect.end deletebegin insert rule or regulation and prohibits any rule or regulation that is not approved by the director from being submitted to the Office of Administrative Law.end insert

(2) Existing law, until January 1, 2018, provides for the licensure and regulation of registered nurses by the Board of Registered Nursing, which is within the Department of Consumer Affairs, and requires the board to appoint an executive officer who is a nurse currently licensed by the board.

This bill would instead prohibit the executive officer from being a licensee of the board.

(3) The Veterinary Medicine Practice Act provides for the licensure and registration of veterinarians and registered veterinary technicians and the regulation of the practice of veterinary medicine by the Veterinary Medical Board, which is within the Department of Consumer Affairs, and authorizes the board to appoint an executive officer, as specified. Existing law repeals the provisions establishing the board and authorizing the board to appoint an executive officer as of January 1, 2017. That act exempts certain persons from the requirements of the act, including a veterinarian employed by the University of California or the Western University of Health Sciences while engaged in the performance of specified duties. That act requires all premises where veterinary medicine, dentistry, and surgery is being practiced to register with the board. That act requires all fees collected on behalf of the board to be deposited into the Veterinary Medical Board Contingent Fund, which continuously appropriates fees deposited into the fund. That act makes a violation of any provision of the act punishable as a misdemeanor.

This bill would extend the operation of the board and the authorization of the board to appoint an executive officer to January 1, 2021. The bill would authorize a veterinarianbegin delete andend deletebegin insert orend insert registered veterinary technician who is under the direct supervision of abegin insert licensedend insert veterinarianbegin delete with a current and active licenseend delete to compound a drug forbegin delete anesthesia, the prevention, cure, or relief of a wound, fracture, bodily injury, or disease of an animal in a premises currently and actively registered with the board, as specified. The bill would authorize the California State Board of Pharmacy and the board to ensure compliance with these requirements.end deletebegin insert animal use pursuant to federal law and regulations promulgated by the board and would require those regulations to, at a minimum, address the storage of drugs, the level and type of supervision required for compounding drugs by a registered veterinary technician, and the equipment necessary for safe compounding of drugs.end insert The bill would instead require veterinarians engaged in the practice of veterinary medicine employed by the University of California or by the Western University of Health Sciencesbegin delete whileend deletebegin insert andend insert engaged in the performance of specified duties to be licensed as a veterinarian in the state orbegin delete holdend deletebegin insert be issuedend insert a universitybegin delete license issued by the board.end deletebegin insert license, as specified.end insert The bill wouldbegin delete require an applicantend deletebegin insert authorize an individual to applyend insert forbegin insert and be issuedend insert a university licensebegin delete to meetend deletebegin insert if he or she meetsend insert certain requirements, includingbegin delete that the applicant passes a specified exam.end deletebegin insert paying an application and license fee. The bill would require a university license, among other things, to automatically cease to be valid upon termination or cessation of employment end insertbegin insertby the University of California or the Western University of Health Sciences.end insert The bill would also prohibit a premise registration that is not renewed within 5 years after its expiration from being renewed, restored, reissued, or reinstated; however, the bill would authorize a new premise registration to be issued to an applicant if no fact, circumstance, or condition exists that would justify the revocation or suspension of the registration if the registration was issued and if specified fees are paid.begin delete By requiring additional persons to be licensed and pay certain fees that would go into a continuously appropriated fund, this bill would make an appropriation.end deletebegin insert This bill would provide that the Veterinary Medical Board Contingent Fund is available for expenditure only upon an appropriation by the Legislature.end insert By requiring additional persons to be licensed under the act that were previously exempt, this bill would expand the definition of an existing crime and would, therefore, result in a state-mandated local program.

(4) begin deleteExisting law, end deletebegin insertThe Government Claims Act, end insertexcept as provided, requires a public entity to pay any judgment or any compromise or settlement of a claim or action against an employee or former employee of the public entity if the employee or former employee requests the public entity to defend him or her against any claim or action against him or her for an injury arising out of an act or omission occurring within the scope of his or her employment as an employee of the public entity, the request is made in writing not less than 10 days before the day of trial, and the employee or former employee reasonably cooperates in good faith in the defense of the claim or action.begin insert That act prohibits the payment of punitive or exemplary damages by a public entity, except as specified.end insert

This bill would require a public entity to pay a judgment or settlement for treble damage antitrust awards against a member of a regulatory board for an act or omission occurring within the scope of his or her employment as a member of a regulatory board.begin insert The bill would specify that treble damages awarded pursuant to a specified federal law for violation of another federal law are not punitive or exemplary damages within the Government Claims Act.end insert

(5) The Administrative Procedure Act governs the procedure for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law.begin delete That act requires the review by the office to follow certain standards, including, among others, necessity, as defined.end delete That act requires an agency proposing to adopt, amend, or repeal a regulation to prepare a notice to the public that includes specified information, including reference to the authority under which the regulation is proposed.

This bill wouldbegin delete add competitive impact, as defined, as an additional standard for the office to follow when reviewing regulatory actions of a state board on which a controlling number of decisionmakers are active market participants in the market that the board regulates, and requires the office to, among other things, consider whether the anticompetitive effects of the proposed regulation are clearly outweighed by the public policy merits. The bill would authorize the office to designate, employ, or contract for the services of independent antitrust or applicable economic experts when reviewing proposed regulations for competitive impact. The bill would require state boards on which a controlling number of decisionmakers are active market participants in the market that the board regulates, when preparing the public notice, to additionally include a statement that the agency has evaluated the impact of the regulation on competition and that the effect of the regulation is within a clearly articulated and affirmatively expressed state law or policy.end deletebegin insert also require a board within the Department of Consumer Affairs to submit a statement to the office that the Director of Consumer Affairs has reviewed the proposed regulation and determined that the proposed regulation furthers state law.end insert

(6) 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.

Vote: majority. Appropriation: begin deleteyes end deletebegin insertnoend insert. Fiscal committee: yes. State-mandated local program: yes.

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

P6    1

SECTION 1.  

Section 109 of the Business and Professions Code
2 is amended to read:

3

109.  

(a) Thebegin delete directorend deletebegin insert decisions of any of the boards comprising
4the department with respect to passing candidates and revoking
5or otherwise imposing discipline on licenses shall not be subject
6to review by the director and are final within the limits provided
7by this code that are applicable to the particular board.end insert

8begin insert(b)end insertbegin insertend insertbegin insertThe directorend insert may initiate an investigation of any allegations
9of misconduct in the preparation, administration, or scoring of an
10examination which is administered by a board, or in the review of
11qualifications which are a part of the licensing process of any
12board. A request for investigation shall be made by the director to
13the Division of Investigation through the chief of the division or
14to any law enforcement agency in the jurisdiction where the alleged
15misconduct occurred.

begin delete

16(b)  (1) 

end delete

17begin insert(1)end insertbegin insertend insertThe director may intervene in any matter of any board where
18an investigation by the Division of Investigation discloses probable
19cause to believe that the conduct or activity of a board, or its
20members orbegin delete employeesend deletebegin insert employees,end insert constitutes a violation of
21criminal law.

22(2) The term “intervene,” as used in paragraph (1)begin insert of this sectionend insert
23 may include, but is not limited to, an application for a restraining
24order or injunctive relief as specified in Section 123.5, or a referral
25or request for criminal prosecution. For purposes of this section,
26the director shall be deemed to have standing under Section 123.5
27and shall seek representation of the Attorney General, or other
28appropriate counsel in the event of a conflict in pursuing that
29action.

30(c) The director may, upon his or her own initiative, and shall,
31upon request bybegin delete a consumer or licensee,end deletebegin insert the board making the
32decision or the Legislature,end insert
review anybegin insert nonministerial
33marketend insert
begin insert-sensitiveend insert boardbegin insert action orend insert decisionbegin delete or other action to
P7    1determine whether it unreasonably restrains trade. Such a review
2shall proceed as follows:end delete
begin insert by the board to determine whether it
3furthers state law. Market-sensitive actions or decisions are those
4that create barriers to market participation and restrict competition
5including, but not limited to, examination passage scores,
6advertising restrictions, price regulation, enlarging or restricting
7scope of practice qualifications for licensure, and a pattern or
8program of disciplinary actions affecting multiple individuals that
9creates barriers to market participation. If the board action or
10decision is determined to be a market-sensitive action or decision,
11the director shall review the board action or decision to determine
12whether that action or decision furthers a clearly articulated and
13affirmatively expressed state policy. Review under this subdivision
14shall serve to cease implementation of the market-sensitive action
15or decision until the review is finalized and the action or decision
16is found to further state law.end insert

begin delete

17(1) The director shall assess whether the action or decision
18reflects a clearly articulated and affirmatively expressed state law.
19If the director determines that the action or decision does not reflect
20a clearly articulated and affirmatively expressed state law, the
21director shall disapprove the board action or decision and it shall
22not go into effect.

23(2) If the action or decision is a reflection of clearly articulated
24and affirmatively expressed state law, the director shall assess
25whether the action or decision was the result of the board’s exercise
26of ministerial or discretionary judgment. If the director finds no
27exercise of discretionary judgment, but merely the direct
28application of statutory or constitutional provisions, the director
29shall close the investigation and review of the board action or
30decision.

31(3) If the director concludes under paragraph (2) that the board
32exercised discretionary judgment, the director shall review the
33board action or decision as follows:

34(A) The

end delete

35begin insert(1)end insertbegin insertend insertbegin insertAny review by theend insert directorbegin insert under this subdivisionend insert shall
36begin delete conductend deletebegin insert includeend insert a fullbegin insert substantiveend insert review of the board action or
37decisionbegin delete usingend deletebegin insert based uponend insert allbegin insert theend insert relevantbegin delete facts, data, market
38conditions,end delete
begin insert facts in the record provided by the board and any
39additional information provided by the director, which may include
40data,end insert
public comment, studies, or other documentary evidence
P8    1pertaining tobegin delete the market impacted byend delete the board’s action orbegin delete decision
2and determine whether the anticompetitive effects of the action or
3decision are clearly outweighed by the benefit to the public. The
4director may seek, designate, employ, or contract for the services
5of independent antitrust or economic experts pursuant to Section
6307. These experts shall not be active participants in the market
7affected by the board action or decision.end delete
begin insert decision.end insert

begin delete

8(B) If the board action or decision was not previously subject
9to a public comment period, the director shall release the subject
10matter of his or her investigation for a 30-day public comment
11period and shall consider all comments received.

12(C) If the director determines that the action or decision furthers
13the public protection mission of the board and the impact on
14competition is justified, the director may approve the action or
15decision.

16(D) If the director determines that the action furthers the public
17protection mission of the board and the impact on competition is
18justified, the director may approve the action or decision. If the
19director finds the action or decision does not further the public
20protection mission of the board or finds that the action or decision
21is not justified, the director shall either refuse to approve it or shall
22modify the action or decision to ensure that any restraints of trade
23are related to, and advance, clearly articulated state law or public
24policy.

end delete
begin insert

25
(2) The director shall take one of the following actions:

end insert
begin insert

26
(A) Approve the action or decision upon determination that it
27furthers state law.

end insert
begin insert

28
(B) Disapprove the action or decision if it does not further state
29law. If the director disapproves the board action or decision, the
30director may recommend modifications to the board action or
31decision, which, if adopted, shall not become effective until final
32approval by the director pursuant to this subdivision.

end insert
begin insert

33
(C) Modify the action or decision to ensure that it furthers state
34law.

end insert
begin insert

35
(D) Request further information from the board if the record
36provided is insufficient to make a determination that the action or
37decision furthers state law. Upon submission of further information
38from the board and any information provided by the director, the
39director shall make a final determination to approve, disapprove,
40or modify the board’s action or decision.

end insert
begin delete

P9    1(4)

end delete

2begin insert(d)end insert The director shall issue, and post on the department’s Internet
3Web site, his or her final written decisionbegin delete approving, modifying,
4or disapprovingend delete
begin insert onend insert thebegin insert boardend insert action or decision with an explanation
5of the reasonsbegin insert that action or decision does or does not further state
6lawend insert
andbegin insert theend insert rationale behind the director’s decision within 90 days
7from receipt of thebegin delete request from a consumer or licensee.end deletebegin insert board’s
8or Legislature’s request for review or the director’s decision to
9review the board action or decision.end insert
Notwithstanding any other
10law, the decision of the director shall be final, except if the state
11or federal constitution requires an appeal of the director’s decision.

begin delete

12(d)

end delete

13begin insert(e)end insert The review set forth inbegin delete paragraph (3) ofend delete subdivision (c) shall
14not applybegin delete when an individual seeksend deletebegin insert to theend insert review ofbegin insert anyend insert
15 disciplinarybegin insert actionend insert orbegin delete other action pertaining solely to that
16individual.end delete
begin insert any other sanction or citation imposed by a board upon
17a licensee.end insert

begin delete

18(e)

end delete

19begin insert(end insertbegin insertf)end insert The director shall report to the Chairs of the Senate Business,
20Professions, and Economic Development Committee and the
21Assembly Business and Professions Committee annually,
22commencing March 1, 2017, regarding his or her disapprovals,
23modifications, or findings from any audit, review, or monitoring
24and evaluation conducted pursuant to this section. That report shall
25be submitted in compliance with Section 9795 of the Government
26Code.

begin delete

27(f) If the director has already reviewed a board action or decision
28 pursuant to this section or Section 313.1, the director shall not
29review that action or decision again.

end delete

30(g) This section shall not be construed to affect, impede, or
31delay any disciplinary actions of any board.

32begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 109.5 is added to the end insertbegin insertBusiness and Professions
33Code
end insert
begin insert, to read:end insert

begin insert
34

begin insert109.5.end insert  

The executive officer of any board, committee, or
35commission within the department shall not be an active licensee
36of any profession that board, committee, or commission regulates.

end insert
37

begin deleteSEC. 2.end delete
38
begin insertSEC. 3.end insert  

Section 116 of the Business and Professions Code is
39amended to read:

P10   1

116.  

(a) The director may audit and review, upon his or her
2own initiative, or upon the request of a consumer or licensee,
3inquiries and complaints regarding licensees, dismissals of
4disciplinary cases, the opening, conduct, or closure of
5investigations, informal conferences, and discipline short of formal
6accusation by any board or bureau within the department.

7(b) The director shall report to the Chairs of the Senate Business,
8Professions, and Economic Development Committee and the
9Assembly Business and Professions Committee annually,
10commencing March 1, 2017, regarding his or her findings from
11any audit, review, or monitoring and evaluation conducted pursuant
12to this section. This report shall be submitted in compliance with
13 Section 9795 of the Government Code.

14

begin deleteSEC. 3.end delete
15
begin insertSEC. 4.end insert  

Section 153 of the Business and Professions Code is
16amended to read:

17

153.  

The director may investigate the work of the several
18boards in hisbegin insert or herend insert department and may obtain a copy of all
19records and full and complete data in all official matters in
20possession of the boards, their members, officers, or employees.

21

begin deleteSEC. 4.end delete
22
begin insertSEC. 5.end insert  

Section 307 of the Business and Professions Code is
23amended to read:

24

307.  

The director may contract for the services of experts and
25consultants where necessary to carry out this chapter and may
26provide compensation and reimbursement of expenses for those
27experts and consultants in accordance with state law.

28

begin deleteSEC. 5.end delete
29
begin insertSEC. 6.end insert  

Section 313.1 of the Business and Professions Code
30 is amended to read:

31

313.1.  

(a) Notwithstanding any other law to the contrary, no
32rule or regulation and no fee change proposed or promulgated by
33any of the boards, commissions, or committees within the
34department, shall take effect pending compliance with this section.

35(b) The director shall be formally notified of and shall review,
36in accordance with the requirements of Article 5 (commencing
37with Section 11346) of Chapter 3.5 of Part 1 of Division 3 of Title
382 of the Government Code, the requirements in subdivision (c) of
39Section 109, and this section, all of the following:

P11   1(1) All notices of proposed action, any modifications and
2supplements thereto, and the text of proposed regulations.

3(2) Any notices of sufficiently related changes to regulations
4previously noticed to the public, and the text of proposed
5regulations showing modifications to the text.

6(3) Final rulemaking records.

7(4) All relevantbegin delete facts,end deletebegin insert facts in the rulemaking record, which may
8includeend insert
data, public comments,begin delete market conditions, studies,end delete or other
9documentary evidence pertaining to thebegin delete market impacted by the
10proposed regulation. This information shall be included in the
11written decision of the director required under paragraph (4) of
12subdivision (c) of Section 109.end delete
begin insert proposed regulation to determine
13whether it furthers state law. If the regulation does not further
14state law, it shall not be approved.end insert

15(c) The submission of all notices and final rulemaking records
16to the director and the director’s approval, as authorized by this
17section, shall be a precondition to the filing of any rule or
18regulation with the Office of Administrative Law. The Office of
19Administrative Law shall have no jurisdiction to review a rule or
20regulation subject to this section until after the director’s review
21and approval. The filing of any document with the Office of
22Administrative Law shall be accompanied by a certification that
23the board, commission, or committee has complied with the
24requirements of this section.

25(d) Following the receipt of any final rulemaking record subject
26to subdivision (a), the director shall have the authority for a period
27of 30 days tobegin delete approveend deletebegin insert approve, disapprove, or require modification
28ofend insert
a proposed rule or regulationbegin delete or disapprove a proposed rule or
29regulationend delete
on the ground that it is injurious to the public health,
30safety, orbegin delete welfare,end deletebegin insert welfareend insert or begin delete has an impermissible anticompetitive
31effect. The director may modify a rule or regulation as a condition
32of approval. Any modifications to regulations by the director shall
33be subject to a 30-day public comment period before the director
34issues a final decision regarding the modified regulation. If the
35director does not approve the rule or regulation within the 30-day
36period, the rule or regulation shall not be submitted to the Office
37of Administrative Law and the rule or regulation shall have no
38effect.end delete
begin insert does not further state law.end insertbegin insert If the director does not approve
39the rule or regulation within the 30-day period, the rule or
P12   1regulation shall not be submitted to the Office of Administrative
2Law and the rule or regulation shall have no effect.end insert

3(e) Final rulemaking records shall be filed with the director
4within the one-year notice period specified in Section 11346.4 of
5the Government Code. If necessary for compliance with this
6section, the one-year notice period may be extended, as specified
7by this subdivision.

8(1) In the event that the one-year notice period lapses during
9the director’s 30-day review period, or within 60 days following
10the notice of the director’s disapproval, it may be extended for a
11maximum of 90 days.

12(2) If the director approves the final rulemaking record, the
13board, commission, or committee shall have five days from the
14receipt of the record from the director within which to file it with
15the Office of Administrative Law.

16(3) If the director disapproves a rule or regulation, it shall have
17no force orbegin delete effect unless, within 60 days of the notice of
18disapproval, (A) the disapproval is overridden by a unanimous
19vote of the members of the board, commission, or committee, and
20(B) the board, commission, or committee files the final rulemaking
21record with the Office of Administrative Law in compliance with
22this section and the procedures required by Chapter 3.5
23(commencing with Section 11340) of Part 1 of Division 3 of Title
242 of the Government Code. This paragraph shall not apply to any
25decision disapproved by the director under subdivision (c) of
26Section 109.end delete
begin insert effect.end insert

27(f)begin insertend insert This section shall not be construed to prohibit the director
28from affirmatively approving a proposed rule, regulation, or fee
29change at any time within the 30-day period after it has been
30submitted to him or her, in which event it shall become effective
31upon compliance with this section and the procedures required by
32Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
333 of Title 2 of the Government Code.

34

begin deleteSEC. 6.end delete
35
begin insertSEC. 7.end insert  

Section 2708 of the Business and Professions Code is
36amended to read:

37

2708.  

(a) The board shall appoint an executive officer who
38shall perform the duties delegated by the board and who shall be
39responsible to it for the accomplishment of those duties.

P13   1(b) The executive officer shall not be a licensee under this
2chapter and shall possess other qualifications as determined by the
3board.

4(c) The executive officer shall not be a member of the board.

5(d) This section shall remain in effect only until January 1, 2018,
6and as of that date is repealed, unless a later enacted statute, that
7is enacted before January 1, 2018, deletes or extends that date.

8

begin deleteSEC. 7.end delete
9
begin insertSEC. 8.end insert  

Section 4800 of the Business and Professions Code is
10amended to read:

11

4800.  

(a) There is in the Department of Consumer Affairs a
12Veterinary Medical Board in which the administration of this
13chapter is vested. The board consists of the following members:

14(1) Four licensed veterinarians.

15(2) One registered veterinary technician.

16(3) Three public members.

17(b) This section shall remain in effect only until January 1, 2021,
18and as of that date is repealed.

19(c) Notwithstanding any other law, the repeal of this section
20renders the board subject to review by the appropriate policy
21committees of the Legislature. However, the review of the board
22shall be limited to those issues identified by the appropriate policy
23committees of the Legislature and shall not involve the preparation
24or submission of a sunset review document or evaluative
25questionnaire.

26

begin deleteSEC. 8.end delete
27
begin insertSEC. 9.end insert  

Section 4804.5 of the Business and Professions Code
28 is amended to read:

29

4804.5.  

(a) The board may appoint a person exempt from civil
30service who shall be designated as an executive officer and who
31shall exercise the powers and perform the duties delegated by the
32board and vested in him or her by this chapter.

33(b) This section shall remain in effect only until January 1, 2021,
34and as of that date is repealed.

begin delete
35

SEC. 9.  

Section 4825.1 of the Business and Professions Code
36 is amended to read:

37

4825.1.  

These definitions shall govern the construction of this
38chapter as it applies to veterinary medicine.

P14   1(a) “Diagnosis” means the act or process of identifying or
2determining the health status of an animal through examination
3and the opinion derived from that examination.

4(b) “Animal” means any member of the animal kingdom other
5than humans, and includes fowl, fish, and reptiles, wild or
6domestic, whether living or dead.

7(c) “Food animal” means any animal that is raised for the
8production of an edible product intended for consumption by
9humans. The edible product includes, but is not limited to, milk,
10meat, and eggs. Food animal includes, but is not limited to, cattle
11(beef or dairy), swine, sheep, poultry, fish, and amphibian species.

12(d) “Livestock” includes all animals, poultry, aquatic and
13amphibian species that are raised, kept, or used for profit. It does
14not include those species that are usually kept as pets such as dogs,
15cats, and pet birds, or companion animals, including equines.

16(e) “Compounding,” for the purposes of veterinary medicine,
17shall have the same meaning given in Section 1735 of Title 16 of
18the California Code of Regulations, except that every reference
19therein to “pharmacy” and “pharmacist” shall be replaced with
20“veterinary premises” and “veterinarian,” and except that only a
21licensed veterinarian or a licensed registered veterinarian technician
22under direct supervision of a veterinarian may perform
23compounding and shall not delegate to or supervise any part of
24the performance of compounding by any other person.

25

SEC. 10.  

Section 4826.3 is added to the Business and
26Professions Code
, to read:

27

4826.3.  

(a) Notwithstanding Section 4051, a veterinarian or
28registered veterinarian technician under the direct supervision of
29a veterinarian with a current and active license may compound a
30drug for anesthesia, the prevention, cure, or relief of a wound,
31fracture, bodily injury, or disease of an animal in a premises
32currently and actively registered with the board and only under
33the following conditions:

34(1) Where there is no FDA-approved animal or human drug that
35can be used as labeled or in an appropriate extralabel manner to
36properly treat the disease, symptom, or condition for which the
37drug is being prescribed.

38(2) Where the compounded drug is not available from a
39compounding pharmacy, outsourcing facility, or other
40compounding supplier in a dosage form and concentration to
P15   1appropriately treat the disease, symptom, or condition for which
2the drug is being prescribed.

3(3) Where the need and prescription for the compounded
4medication has arisen within an established
5veterinarian-client-patient relationship as a means to treat a specific
6occurrence of a disease, symptom, or condition observed and
7diagnosed by the veterinarian in a specific animal that threatens
8the health of the animal or will cause suffering or death if left
9untreated.

10(4) Where the quantity compounded does not exceed a quantity
11demonstrably needed to treat a patient with which the veterinarian
12has a current veterinarian-client-patient relationship.

13(5) Except as specified in subdivision (c), where the compound
14is prepared only with commercially available FDA-approved
15animal or human drugs as active ingredients.

16(b) A compounded veterinary drug may be prepared from an
17FDA-approved animal or human drug for extralabel use only when
18there is no approved animal or human drug that, when used as
19labeled or in an appropriate extralabel manner will, in the available
20dosage form and concentration, treat the disease, symptom, or
21condition. Compounding from an approved human drug for use
22in food-producing animals is not permitted if an approved animal
23drug can be used for compounding.

24(c) A compounded veterinary drug may be prepared from bulk
25drug substances only when:

26(1) The drug is compounded and dispensed by the veterinarian
27to treat an individually identified animal patient under his or her
28care.

29(2) The drug is not intended for use in food-producing animals.

30(3) If the drug contains a bulk drug substance that is a
31component of any marketed FDA-approved animal or human drug,
32there is a change between the compounded drug and the
33comparable marketed drug made for an individually identified
34animal patient that produces a clinical difference for that
35individually identified animal patient, as determined by the
36veterinarian prescribing the compounded drug for his or her patient.

37(4) There are no FDA-approved animal or human drugs that
38can be used as labeled or in an appropriate extralabel manner to
39properly treat the disease, symptom, or condition for which the
40drug is being prescribed.

P16   1(5) All bulk drug substances used in compounding are
2manufactured by an establishment registered under Section 360
3of Title 21 of the United States Code and are accompanied by a
4valid certificate of analysis.

5(6) The drug is not sold or transferred by the veterinarian
6compounding the drug, except that the veterinarian shall be
7permitted to administer the drug to a patient under his or her care
8or dispense it to the owner or caretaker of an animal under his or
9her care.

10(7) Within 15 days of becoming aware of any product defect or
11serious adverse event associated with any drug compounded by
12the veterinarian from bulk drug substances, the veterinarian shall
13report it to the federal Food and Drug Administration on Form
14FDA 1932a.

15(8) In addition to any other requirements, the label of any
16veterinary drug compounded from bulk drug substances shall
17indicate the species of the intended animal patient, the name of
18the animal patient, and the name of the owner or caretaker of the
19patient.

20(d) Each compounded veterinary drug preparation shall meet
21the labeling requirements of Section 4076 and Sections 1707.5
22and 1735.4 of Title 16 of the California Code of Regulations,
23except that every reference therein to “pharmacy” and “pharmacist”
24shall be replaced by “veterinary premises” and “veterinarian,” and
25any reference to “patient” shall be understood to refer to the animal
26patient. In addition, each label on a compounded veterinary drug
27preparation shall include withdrawal and holding times, if needed,
28and the disease, symptom, or condition for which the drug is being
29prescribed. Any compounded veterinary drug preparation that is
30intended to be sterile, including for injection, administration into
31the eye, or inhalation, shall in addition meet the labeling
32requirements of Section 1751.2 of Title 16 of the California Code
33of Regulations, except that every reference therein to “pharmacy”
34and “pharmacist” shall be replaced by “veterinary premises” and
35“veterinarian,” and any reference to “patient” shall be understood
36to refer to the animal patient.

37(e) Any veterinarian, registered veterinarian technician who is
38under the direct supervision of a veterinarian, and veterinary
39premises engaged in compounding shall meet the compounding
40requirements for pharmacies and pharmacists stated by the
P17   1provisions of Article 4.5 (commencing with Section 1735) of Title
216 of the California Code of Regulations, except that every
3reference therein to “pharmacy” and “pharmacist” shall be replaced
4by “veterinary premises” and “veterinarian,” and any reference to
5“patient” shall be understood to refer to the animal patient:

6(1) Section 1735.1 of Title 16 of the California Code of
7Regulations.

8(2) Subdivisions (d),(e), (f), (g), (h), (i), (j), (k), and (l) of
9Section 1735.2 of Title 16 of the California Code of Regulations.

10(3) Section 1735.3 of Title 16 of the California Code of
11Regulations, except that only a licensed veterinarian or registered
12veterinarian technician may perform compounding and shall not
13delegate to or supervise any part of the performance of
14compounding by any other person.

15(4) Section 1735.4 of Title 16 of the California Code of
16Regulations.

17(5) Section 1735.5 of Title 16 of the California Code of
18Regulations.

19(6) Section 1735.6 of Title 16 of the California Code of
20Regulations.

21(7) Section 1735.7 of Title 16 of the California Code of
22Regulations.

23(8) Section 1735.8 of Title 16 of the California Code of
24Regulations.

25(f) Any veterinarian, registered veterinarian technician under
26the direct supervision of a veterinarian, and veterinary premises
27engaged in sterile compounding shall meet the sterile compounding
28requirements for pharmacies and pharmacists under Article 7
29(commencing with Section 1751) of Title 16 of the California Code
30of Regulations, except that every reference therein to “pharmacy”
31and “pharmacist” shall be replaced by “veterinary premises” and
32“veterinarian,” and any reference to “patient” shall be understood
33to refer to the animal patient.

34(g) The California State Board of Pharmacy shall have authority
35with the board to ensure compliance with this section and shall
36have the right to inspect any veterinary premises engaged in
37compounding, along with or separate from the board, to ensure
38compliance with this section. The board is specifically charged
39with enforcing this section with regard to its licensees.

P18   1

SEC. 11.  

Section 4826.5 is added to the Business and
2Professions Code
, to read:

3

4826.5.  

Failure by a licensed veterinarian, registered
4veterinarian technician, or veterinary premises to comply with the
5provisions of this article shall be deemed unprofessional conduct
6and constitute grounds for discipline.

7

SEC. 12.  

Section 4826.7 is added to the Business and
8Professions Code
, to read:

9

4826.7.  

The board may adopt regulations to implement the
10provisions of this article.

end delete
11begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 4826.5 is added to the end insertbegin insertBusiness and
12Professions Code
end insert
begin insert, to read:end insert

begin insert
13

begin insert4826.5.end insert  

Notwithstanding any other law, a licensed veterinarian
14or a registered veterinary technician under the supervision of a
15licensed veterinarian may compound drugs for animal use pursuant
16to Section 530 of Title 21 of the Code of Federal Regulations and
17in accordance with regulations promulgated by the board. The
18regulations promulgated by the board shall, at a minimum, address
19the storage of drugs, the level and type of supervision required for
20compounding drugs by a registered veterinary technician, and the
21equipment necessary for the safe compounding of drugs. Any
22violation of the regulations adopted by the board pursuant to this
23section shall constitute grounds for an enforcement or disciplinary
24action.

end insert
25

begin deleteSEC. 13.end delete
26
begin insertSEC. 11.end insert  

Section 4830 of the Business and Professions Code
27 is amended to read:

28

4830.  

(a) This chapter does not apply to:

29(1) Veterinarians while serving in any armed branch of the
30military service of the United States or the United States
31Department of Agriculture while actually engaged and employed
32in their official capacity.

33(2) Regularly licensed veterinarians in actual consultation from
34other states.

35(3) Regularly licensed veterinarians actually called from other
36states to attend cases in this state, but who do not open an office
37or appoint a place to do business within this state.

38(4) Students in the School of Veterinary Medicine of the
39University of California or the College of Veterinary Medicine of
40the Western University of Health Sciences who participate in
P19   1diagnosis and treatment as part of their educational experience,
2including those in off-campus educational programs under the
3direct supervision of a licensed veterinarian in good standing, as
4defined in paragraph (1) of subdivision (b) of Section 4848,
5appointed by the University of California, Davis, or the Western
6University of Health Sciences.

7(5) A veterinarian who is employed by the Meat and Poultry
8Inspection Branch of the California Department of Food and
9Agriculture while actually engaged and employed in his or her
10official capacity. A person exempt under this paragraph shall not
11otherwise engage in the practice of veterinary medicine unless he
12or she is issued a license by the board.

13(6) Unlicensed personnel employed by the Department of Food
14and Agriculture or the United States Department of Agriculture
15when in the course of their duties they are directed by a veterinarian
16supervisor to conduct an examination, obtain biological specimens,
17apply biological tests, or administer medications or biological
18products as part of government disease or condition monitoring,
19investigation, control, or eradication activities.

20(b) (1) For purposes of paragraph (3) of subdivision (a), a
21regularly licensed veterinarian in good standing who is called from
22another state by a law enforcement agency or animal control
23agency, as defined in Section 31606 of the Food and Agricultural
24Code, to attend to cases that are a part of an investigation of an
25alleged violation of federal or state animal fighting or animal
26cruelty laws within a single geographic location shall be exempt
27from the licensing requirements of this chapter if the law
28enforcement agency or animal control agency determines that it
29 is necessary to call the veterinarian in order for the agency or
30officer to conduct the investigation in a timely, efficient, and
31effective manner. In determining whether it is necessary to call a
32veterinarian from another state, consideration shall be given to the
33availability of veterinarians in this state to attend to these cases.
34An agency, department, or officer that calls a veterinarian pursuant
35to this subdivision shall notify the board of the investigation.

36(2) Notwithstanding any other provision of this chapter, a
37regularly licensed veterinarian in good standing who is called from
38another state to attend to cases that are a part of an investigation
39described in paragraph (1) may provide veterinary medical care
40for animals that are affected by the investigation with a temporary
P20   1shelter facility, and the temporary shelter facility shall be exempt
2from the registration requirement of Section 4853 if all of the
3following conditions are met:

4(A) The temporary shelter facility is established only for the
5purpose of the investigation.

6(B) The temporary shelter facility provides veterinary medical
7care, shelter, food, and water only to animals that are affected by
8the investigation.

9(C) The temporary shelter facility complies with Section 4854.

10(D) The temporary shelter facility exists for not more than 60
11days, unless the law enforcement agency or animal control agency
12determines that a longer period of time is necessary to complete
13the investigation.

14(E) Within 30 calendar days upon completion of the provision
15of veterinary health care services at a temporary shelter facility
16established pursuant to this section, the veterinarian called from
17another state by a law enforcement agency or animal control agency
18to attend to a case shall file a report with the board. The report
19shall contain the date, place, type, and general description of the
20care provided, along with a listing of the veterinary health care
21practitioners who participated in providing that care.

22(c) For purposes of paragraph (3) of subdivision (a), the board
23may inspect temporary facilities established pursuant to this
24section.

25

begin deleteSEC. 14.end delete
26
begin insertSEC. 12.end insert  

Section 4846.5 of the Business and Professions Code
27 is amended to read:

28

4846.5.  

(a) Except as provided in this section, the board shall
29issue renewal licenses only to those applicants that have completed
30a minimum of 36 hours of continuing education in the preceding
31two years.

32(b) (1) Notwithstanding any other law, continuing education
33hours shall be earned by attending courses relevant to veterinary
34medicine and sponsored or cosponsored by any of the following:

35(A) American Veterinary Medical Association (AVMA)
36accredited veterinary medical colleges.

37(B) Accredited colleges or universities offering programs
38relevant to veterinary medicine.

39(C) The American Veterinary Medical Association.

P21   1(D) American Veterinary Medical Association recognized
2specialty or affiliated allied groups.

3(E) American Veterinary Medical Association’s affiliated state
4veterinary medical associations.

5(F) Nonprofit annual conferences established in conjunction
6with state veterinary medical associations.

7(G) Educational organizations affiliated with the American
8Veterinary Medical Association or its state affiliated veterinary
9medical associations.

10(H) Local veterinary medical associations affiliated with the
11California Veterinary Medical Association.

12(I) Federal, state, or local government agencies.

13(J) Providers accredited by the Accreditation Council for
14Continuing Medical Education (ACCME) or approved by the
15American Medical Association (AMA), providers recognized by
16the American Dental Association Continuing Education
17Recognition Program (ADA CERP), and AMA or ADA affiliated
18state, local, and specialty organizations.

19(2) Continuing education credits shall be granted to those
20veterinarians taking self-study courses, which may include, but
21are not limited to, reading journals, viewing video recordings, or
22listening to audio recordings. The taking of these courses shall be
23limited to no more than six hours biennially.

24(3) The board may approve other continuing veterinary medical
25education providers not specified in paragraph (1).

26(A) The board has the authority to recognize national continuing
27education approval bodies for the purpose of approving continuing
28education providers not specified in paragraph (1).

29(B) Applicants seeking continuing education provider approval
30shall have the option of applying to the board or to a
31board-recognized national approval body.

32(4) For good cause, the board may adopt an order specifying,
33on a prospective basis, that a provider of continuing veterinary
34medical education authorized pursuant to paragraph (1) or (3) is
35no longer an acceptable provider.

36(5) Continuing education hours earned by attending courses
37sponsored or cosponsored by those entities listed in paragraph (1)
38between January 1, 2000, and January 1, 2001, shall be credited
39toward a veterinarian’s continuing education requirement under
40this section.

P22   1(c) Every person renewing his or her license issued pursuant to
2Section 4846.4, or any person applying for relicensure or for
3reinstatement of his or her license to active status, shall submit
4proof of compliance with this section to the board certifying that
5he or she is in compliance with this section. Any false statement
6submitted pursuant to this section shall be a violation subject to
7Section 4831.

8(d) This section shall not apply to a veterinarian’s first license
9renewal. This section shall apply only to second and subsequent
10license renewals granted on or after January 1, 2002.

11(e) The board shall have the right to audit the records of all
12applicants to verify the completion of the continuing education
13requirement. Applicants shall maintain records of completion of
14required continuing education coursework for a period of four
15years and shall make these records available to the board for
16auditing purposes upon request. If the board, during this audit,
17questions whether any course reported by the veterinarian satisfies
18the continuing education requirement, the veterinarian shall provide
19information to the board concerning the content of the course; the
20name of its sponsor and cosponsor, if any; and specify the specific
21curricula that was of benefit to the veterinarian.

22(f) A veterinarian desiring an inactive license or to restore an
23inactive license under Section 701 shall submit an application on
24a form provided by the board. In order to restore an inactive license
25to active status, the veterinarian shall have completed a minimum
26of 36 hours of continuing education within the last two years
27preceding application. The inactive license status of a veterinarian
28shall not deprive the board of its authority to institute or continue
29a disciplinary action against a licensee.

30(g) Knowing misrepresentation of compliance with this article
31by a veterinarian constitutes unprofessional conduct and grounds
32for disciplinary action or for the issuance of a citation and the
33imposition of a civil penalty pursuant to Section 4883.

34(h) The board, in its discretion, may exempt from the continuing
35education requirement any veterinarian who for reasons of health,
36military service, or undue hardship cannot meet those requirements.
37Applications for waivers shall be submitted on a form provided
38by the board.

39(i) The administration of this section may be funded through
40professional license and continuing education provider fees. The
P23   1fees related to the administration of this section shall not exceed
2the costs of administering the corresponding provisions of this
3section.

4(j) For those continuing education providers not listed in
5paragraph (1) of subdivision (b), the board or its recognized
6national approval agent shall establish criteria by which a provider
7of continuing education shall be approved. The board shall initially
8review and approve these criteria and may review the criteria as
9needed. The board or its recognized agent shall monitor, maintain,
10and manage related records and data. The board may impose an
11application fee, not to exceed two hundred dollars ($200)
12biennially, for continuing education providers not listed in
13paragraph (1) of subdivision (b).

14(k) (1) Beginning January 1, 2018, a licensed veterinarian who
15renews his or her license shall complete a minimum of one credit
16hour of continuing education on the judicious use of medically
17important antimicrobial drugs every four years as part of his or
18her continuing education requirements.

19(2) For purposes of this subdivision, “medically important
20antimicrobial drug” means an antimicrobial drug listed in Appendix
21A of the federal Food and Drug Administration’s Guidance for
22Industry #152, including critically important, highly important,
23and important antimicrobial drugs, as that appendix may be
24amended.

25

begin deleteSEC. 15.end delete
26
begin insertSEC. 13.end insert  

Section 4848.1 is added to the Business and
27Professions Code
, to read:

28

4848.1.  

(a) A veterinarian engaged in the practice of veterinary
29medicine, as defined in Section 4826, employed by the University
30of Californiabegin delete whileend deletebegin insert andend insert engaged in the performance of duties in
31connection with the School of Veterinary Medicine or employed
32by the Western University of Health Sciencesbegin delete whileend deletebegin insert andend insert engaged
33in the performance of duties in connection with the College of
34Veterinary Medicine shall bebegin delete licensed in California or shall holdend delete
35begin insert issuedend insert a university licensebegin delete issued by the board.end deletebegin insert pursuant to this
36section or hold a license to practice veterinary medicine in this
37state.end insert

38(b) Anbegin delete applicant is eligible to holdend deletebegin insert individual may apply for and
39be issuedend insert
a university license if all of the following are satisfied:

P24   1(1) begin deleteThe applicant end deletebegin insertHe or she end insertis currently employed by the
2University of California or Western University of Healthbegin delete Sciencesend delete
3begin insert Sciences,end insert as defined in subdivision (a).

4(2) begin deletePasses end deletebegin insertHe or she passes end insertan examination concerning the
5statutes and regulations of the Veterinary Medicine Practice Act,
6administered by the board, pursuant to subparagraph (C) of
7paragraph (2) of subdivision (a) of Section 4848.

8(3) begin deleteSuccessfully end deletebegin insertHe or she successfully end insertcompletes the approved
9educational curriculum described in paragraph (5) of subdivision
10(b) of Section 4848 on regionally specific and important diseases
11and conditions.

begin insert

12
(4) He or she completes and submits the application specified
13by the board and pays the application fee, pursuant to subdivision
14(g) of Section 4905, and the initial license fee, pursuant to
15subdivision (h) of Section 4905.

end insert

16(c) A university license:

17(1) Shall be numbered as described in Section 4847.

18(2) Shallbegin insert automaticallyend insert cease to be valid upon terminationbegin insert or
19cessationend insert
of employment by the University of California or by the
20Western University of Health Sciences.

21(3) Shall be subject to the license renewal provisions in Section
22
begin delete 4846.4.end deletebegin insert 4846.4 and the payment of the renewal fee pursuant to
23subdivision (i) of Section 4905.end insert

24(4) Shall be subject to denial, revocation, or suspension pursuant
25to Sectionsbegin delete 4875 and 4883.end deletebegin insert 480, 4875, and 4883.end insert

begin insert

26
(5) Authorizes the holder to practice veterinary medicine only
27at the educational institution described in subdivision (a) and any
28locations formally affiliated with those institutions.

end insert

29(d) An individual who holds a university license is exempt from
30satisfying the license renewal requirements of Section 4846.5.

31

begin deleteSEC. 16.end delete
32
begin insertSEC. 14.end insert  

Section 4853.7 is added to the Business and
33Professions Code
, to read:

34

4853.7.  

A premise registration that is not renewed within five
35years after its expiration may not be renewed and shall not be
36restored, reissued, or reinstated thereafter. However, an application
37for a new premise registration may be submitted and obtained if
38both of the following conditions are met:

39(a) No fact, circumstance, or condition exists that, if the premise
40registration was issued, would justify its revocation or suspension.

P25   1(b) All of the fees that would be required for the initial premise
2registration are paid at the time of application.

3begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 4904 of the end insertbegin insertBusiness and Professions Codeend insert
4
begin insert is amended to read:end insert

5

4904.  

All fees collected on behalf of the board and all receipts
6of every kind and nature shall be reported each month for the month
7preceding to the State Controller and at the same time the entire
8amount shall be paid into the State Treasury and shall be credited
9to the Veterinary Medical Board Contingent Fund. This contingent
10fund shall bebegin insert available, upon appropriation by the Legislature,end insert
11 for the use of the Veterinary Medicalbegin delete Board and out of it and not
12otherwise shall be paid all expenses of the board.end delete
begin insert Board.end insert

13begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 4905 of the end insertbegin insertBusiness and Professions Codeend insert
14
begin insert is amended to read:end insert

15

4905.  

The following fees shall be collected by the board and
16shall be credited to the Veterinary Medical Board Contingent Fund:

17(a) The fee for filing an application for examination shall be set
18by the board in an amount it determines is reasonably necessary
19to provide sufficient funds to carry out the purpose of this chapter,
20not to exceed three hundred fifty dollars ($350).

21(b) The fee for the California state board examination shall be
22set by the board in an amount it determines is reasonably necessary
23to provide sufficient funds to carry out the purpose of this chapter,
24not to exceed three hundred fifty dollars ($350).

25(c) The fee for the Veterinary Medicine Practice Act
26examination shall be set by the board in an amount it determines
27reasonably necessary to provide sufficient funds to carry out the
28purpose of this chapter, not to exceed one hundred dollars ($100).

29(d) The initial license fee shall be set by the board not to exceed
30five hundred dollars ($500) except that, if the license is issued less
31than one year before the date on which it will expire, then the fee
32shall be set by the board at not to exceed two hundred fifty dollars
33($250). The board may, by appropriate regulation, provide for the
34waiver or refund of the initial license fee where the license is issued
35less than 45 days before the date on which it will expire.

36(e) The renewal fee shall be set by the board for each biennial
37renewal period in an amount it determines is reasonably necessary
38to provide sufficient funds to carry out the purpose of this chapter,
39not to exceed five hundred dollars ($500).

P26   1(f) The temporary license fee shall be set by the board in an
2amount it determines is reasonably necessary to provide sufficient
3funds to carry out the purpose of this chapter, not to exceed two
4hundred fifty dollars ($250).

begin insert

5
(g) The fee for filing an application for a university license shall
6be one hundred twenty-five dollars ($125), which may be revised
7by the board in regulation but shall not exceed three hundred fifty
8dollars ($350).

end insert
begin insert

9
(h) The initial license fee for a university license shall be two
10hundred ninety dollars ($290), which may be revised by the board
11in regulation but shall not exceed five hundred dollars ($500).

end insert
begin insert

12
(i) The biennial renewal fee for a university license shall be two
13hundred ninety dollars ($290), which may be revised by the board
14in regulation but shall not exceed five hundred dollars ($500).

end insert
begin delete

15(g)

end delete

16begin insert(j)end insert The delinquency fee shall be set by the board, not to exceed
17fifty dollars ($50).

begin delete

18(h)

end delete

19begin insert(k)end insert The fee for issuance of a duplicate license is twenty-five
20dollars ($25).

begin delete

21(i)

end delete

22begin insert(l)end insert Any charge made for duplication or other services shall be
23set at the cost of rendering the service, except as specified in
24subdivisionbegin delete (h).end deletebegin insert (k).end insert

begin delete

25(j)

end delete

26begin insert(end insertbegin insertm)end insert The fee for failure to report a change in the mailing address
27is twenty-five dollars ($25).

begin delete

28(k)

end delete

29begin insert(n)end insert The initial and annual renewal fees for registration of
30veterinary premises shall be set by the board in an amount not to
31exceed four hundred dollars ($400) annually.

begin delete

32(l)

end delete

33begin insert(end insertbegin inserto)end insert If the money transferred from the Veterinary Medical Board
34Contingent Fund to the General Fund pursuant to the Budget Act
35of 1991 is redeposited into the Veterinary Medical Board
36Contingent Fund, the fees assessed by the board shall be reduced
37correspondingly. However, the reduction shall not be so great as
38to cause the Veterinary Medical Board Contingent Fund to have
39a reserve of less than three months of annual authorized board
40expenditures. The fees set by the board shall not result in a
P27   1Veterinary Medical Board Contingent Fund reserve of more than
210 months of annual authorized board expenditures.

3

SEC. 17.  

Section 825 of the Government Code is amended to
4read:

5

825.  

(a) Except as otherwise provided in this section, if an
6employee or former employee of a public entity requests the public
7entity to defend him or her against any claim or action against him
8or her for an injury arising out of an act or omission occurring
9within the scope of his or her employment as an employee of the
10public entity and the request is made in writing not less than 10
11days before the day of trial, and the employee or former employee
12reasonably cooperates in good faith in the defense of the claim or
13action, the public entity shall pay any judgment based thereon or
14any compromise or settlement of the claim or action to which the
15public entity has agreed.

16If the public entity conducts the defense of an employee or
17former employee against any claim or action with his or her
18reasonable good-faith cooperation, the public entity shall pay any
19judgment based thereon or any compromise or settlement of the
20claim or action to which the public entity has agreed. However,
21where the public entity conducted the defense pursuant to an
22agreement with the employee or former employee reserving the
23rights of the public entity not to pay the judgment, compromise,
24or settlement until it is established that the injury arose out of an
25act or omission occurring within the scope of his or her
26employment as an employee of the public entity, the public entity
27is required to pay the judgment, compromise, or settlement only
28if it is established that the injury arose out of an act or omission
29occurring in the scope of his or her employment as an employee
30of the public entity.

31Nothing in this section authorizes a public entity to pay that part
32of a claim or judgment that is for punitive or exemplary damages.

33(b) Notwithstanding subdivision (a) or any other provision of
34law, a public entity is authorized to pay that part of a judgment
35that is for punitive or exemplary damages if the governing body
36of that public entity, acting in its sole discretion except in cases
37involving an entity of the state government, finds all of the
38following:

P28   1(1) The judgment is based on an act or omission of an employee
2or former employee acting within the course and scope of his or
3her employment as an employee of the public entity.

4(2) At the time of the act giving rise to the liability, the employee
5or former employee acted, or failed to act, in good faith, without
6actual malice and in the apparent best interests of the public entity.

7(3) Payment of the claim or judgment would be in the best
8interests of the public entity.

9As used in this subdivision with respect to an entity of state
10government, “a decision of the governing body” means the
11approval of the Legislature for payment of that part of a judgment
12that is for punitive damages or exemplary damages, upon
13recommendation of the appointing power of the employee or
14former employee, based upon the finding by the Legislature and
15the appointing authority of the existence of the three conditions
16for payment of a punitive or exemplary damages claim. The
17provisions of subdivision (a) of Section 965.6 shall apply to the
18payment of any claim pursuant to this subdivision.

19The discovery of the assets of a public entity and the introduction
20of evidence of the assets of a public entity shall not be permitted
21in an action in which it is alleged that a public employee is liable
22for punitive or exemplary damages.

23The possibility that a public entity may pay that part of a
24judgment that is for punitive damages shall not be disclosed in any
25trial in which it is alleged that a public employee is liable for
26punitive or exemplary damages, and that disclosure shall be
27grounds for a mistrial.

28(c) Except as provided in subdivision (d), if the provisions of
29this section are in conflict with the provisions of a memorandum
30of understanding reached pursuant to Chapter 10 (commencing
31with Section 3500) of Division 4 of Title 1, the memorandum of
32understanding shall be controlling without further legislative action,
33except that if those provisions of a memorandum of understanding
34require the expenditure of funds, the provisions shall not become
35effective unless approved by the Legislature in the annual Budget
36Act.

37(d) The subject of payment of punitive damages pursuant to this
38section or any other provision of law shall not be a subject of meet
39and confer under the provisions of Chapter 10 (commencing with
P29   1Section 3500) of Division 4 of Title 1, or pursuant to any other
2law or authority.

3(e) Nothing in this section shall affect the provisions of Section
4818 prohibiting the award of punitive damages against a public
5entity. This section shall not be construed as a waiver of a public
6entity’s immunity from liability for punitive damages under Section
71981, 1983, or 1985 of Title 42 of the United States Code.

8(f) (1) Except as provided in paragraph (2), a public entity shall
9not pay a judgment, compromise, or settlement arising from a
10claim or action against an elected official, if the claim or action is
11based on conduct by the elected official by way of tortiously
12intervening or attempting to intervene in, or by way of tortiously
13influencing or attempting to influence the outcome of, any judicial
14action or proceeding for the benefit of a particular party by
15contacting the trial judge or any commissioner, court-appointed
16arbitrator, court-appointed mediator, or court-appointed special
17referee assigned to the matter, or the court clerk, bailiff, or marshal
18after an action has been filed, unless he or she was counsel of
19record acting lawfully within the scope of his or her employment
20on behalf of that party. Notwithstanding Section 825.6, if a public
21entity conducted the defense of an elected official against such a
22claim or action and the elected official is found liable by the trier
23of fact, the court shall order the elected official to pay to the public
24entity the cost of that defense.

25(2) If an elected official is held liable for monetary damages in
26the action, the plaintiff shall first seek recovery of the judgment
27against the assets of the elected official. If the elected official’s
28assets are insufficient to satisfy the total judgment, as determined
29by the court, the public entity may pay the deficiency if the public
30entity is authorized by law to pay that judgment.

31(3) To the extent the public entity pays any portion of the
32judgment or is entitled to reimbursement of defense costs pursuant
33to paragraph (1), the public entity shall pursue all available
34creditor’s remedies against the elected official, including
35garnishment, until that party has fully reimbursed the public entity.

36(4) This subdivision shall not apply to any criminal or civil
37enforcement action brought in the name of the people of the State
38of California by an elected district attorney, city attorney, or
39attorney general.

P30   1(g) Notwithstanding subdivision (a), a public entity shall pay
2for a judgment or settlement for treble damage antitrust awards
3against a member of a regulatory board for an act or omission
4occurring within the scope of his or her employment as a member
5of a regulatory board.

begin insert

6
(h) Treble damages awarded pursuant to the federal Clayton
7Act (Sections 12 to 27 of Title 15 of, and Sections 52 to 53 of Title
829 of, the United States Code) for a violation of the federal
9Sherman Act (Sections 1 to 6, 6a, and 7 of Title 15 of the United
10States Code) are not punitive or exemplary damages under the
11Government Claims Act (Division 3.6 (commencing with Section
12810) of Title 1 of the Government Code) for purposes of this
13section.

end insert
14

SEC. 18.  

Section 11346.5 of the Government Code is amended
15to read:

16

11346.5.  

(a) The notice of proposed adoption, amendment, or
17repeal of a regulation shall include the following:

18(1) A statement of the time, place, and nature of proceedings
19for adoption, amendment, or repeal of the regulation.

20(2) Reference to the authority under which the regulation is
21proposed and a reference to the particular code sections or other
22provisions of law that are being implemented, interpreted, or made
23specific.

24(3) An informative digest drafted in plain English in a format
25similar to the Legislative Counsel’s digest on legislative bills. The
26informative digest shall include the following:

27(A) A concise and clear summary of existing laws and
28regulations, if any, related directly to the proposed action and of
29the effect of the proposed action.

30(B) If the proposed action differs substantially from an existing
31comparable federal regulation or statute, a brief description of the
32significant differences and the full citation of the federal regulations
33or statutes.

34(C) A policy statement overview explaining the broad objectives
35of the regulation and the specific benefits anticipated by the
36proposed adoption, amendment, or repeal of a regulation, including,
37to the extent applicable, nonmonetary benefits such as the
38protection of public health and safety, worker safety, or the
39environment, the prevention of discrimination, the promotion of
P31   1fairness or social equity, and the increase in openness and
2transparency in business and government, among other things.

3(D) An evaluation of whether the proposed regulation is
4inconsistent or incompatible with existing state regulations.

5(4) Any other matters as are prescribed by statute applicable to
6the specific state agency or to any specific regulation or class of
7regulations.

8(5) A determination as to whether the regulation imposes a
9mandate on local agencies or school districts and, if so, whether
10the mandate requires state reimbursement pursuant to Part 7
11(commencing with Section 17500) of Division 4.

12(6) An estimate, prepared in accordance with instructions
13adopted by the Department of Finance, of the cost or savings to
14any state agency, the cost to any local agency or school district
15that is required to be reimbursed under Part 7 (commencing with
16Section 17500) of Division 4, other nondiscretionary cost or
17savings imposed on local agencies, and the cost or savings in
18federal funding to the state.

19For purposes of this paragraph, “cost or savings” means
20additional costs or savings, both direct and indirect, that a public
21agency necessarily incurs in reasonable compliance with
22regulations.

23(7) If a state agency, in proposing to adopt, amend, or repeal
24any administrative regulation, makes an initial determination that
25the action may have a significant, statewide adverse economic
26impact directly affecting business, including the ability of
27California businesses to compete with businesses in other states,
28it shall include the following information in the notice of proposed
29action:

30(A) Identification of the types of businesses that would be
31 affected.

32(B) A description of the projected reporting, recordkeeping, and
33other compliance requirements that would result from the proposed
34action.

35(C) The following statement: “The (name of agency) has made
36an initial determination that the (adoption/amendment/repeal) of
37this regulation may have a significant, statewide adverse economic
38impact directly affecting business, including the ability of
39California businesses to compete with businesses in other states.
40The (name of agency) (has/has not) considered proposed
P32   1alternatives that would lessen any adverse economic impact on
2business and invites you to submit proposals. Submissions may
3include the following considerations:

4(i) The establishment of differing compliance or reporting
5requirements or timetables that take into account the resources
6available to businesses.

7(ii) Consolidation or simplification of compliance and reporting
8requirements for businesses.

9(iii) The use of performance standards rather than prescriptive
10standards.

11(iv) Exemption or partial exemption from the regulatory
12requirements for businesses.”

13(8) If a state agency, in adopting, amending, or repealing any
14administrative regulation, makes an initial determination that the
15action will not have a significant, statewide adverse economic
16impact directly affecting business, including the ability of
17California businesses to compete with businesses in other states,
18it shall make a declaration to that effect in the notice of proposed
19action. In making this declaration, the agency shall provide in the
20record facts, evidence, documents, testimony, or other evidence
21upon which the agency relies to support its initial determination.

22An agency’s initial determination and declaration that a proposed
23adoption, amendment, or repeal of a regulation may have or will
24not have a significant, adverse impact on businesses, including the
25ability of California businesses to compete with businesses in other
26states, shall not be grounds for the office to refuse to publish the
27notice of proposed action.

28(9) A description of all cost impacts, known to the agency at
29the time the notice of proposed action is submitted to the office,
30that a representative private person or business would necessarily
31incur in reasonable compliance with the proposed action.

32If no cost impacts are known to the agency, it shall state the
33following:

34“The agency is not aware of any cost impacts that a
35representative private person or business would necessarily incur
36in reasonable compliance with the proposed action.”

37(10) A statement of the results of the economic impact
38assessment required by subdivision (b) of Section 11346.3 or the
39standardized regulatory impact analysis if required by subdivision
40(c) of Section 11346.3, a summary of any comments submitted to
P33   1the agency pursuant to subdivision (f) of Section 11346.3 and the
2agency’s response to those comments.

3(11) The finding prescribed by subdivision (d) of Section
411346.3, if required.

5(12) (A) A statement that the action would have a significant
6effect on housing costs, if a state agency, in adopting, amending,
7or repealing any administrative regulation, makes an initial
8determination that the action would have that effect.

9(B) The agency officer designated in paragraph (15) shall make
10available to the public, upon request, the agency’s evaluation, if
11any, of the effect of the proposed regulatory action on housing
12costs.

13(C) The statement described in subparagraph (A) shall also
14include the estimated costs of compliance and potential benefits
15of a building standard, if any, that were included in the initial
16statement of reasons.

17(D) For purposes of model codes adopted pursuant to Section
1818928 of the Health and Safety Code, the agency shall comply
19with the requirements of this paragraph only if an interested party
20has made a request to the agency to examine a specific section for
21purposes of estimating the costs of compliance and potential
22benefits for that section, as described in Section 11346.2.

23(13) If the regulatory action is submitted by a begin delete state board on
24which a controlling number of decisionmakers are active market
25participants in the market the board regulates, a statement that the
26adopting agency has evaluated the impact of the proposed
27regulation on competition, and that the proposed regulation furthers
28a clearly articulated and affirmatively expressed state law to restrain
29competition.end delete
begin insert board within the Department of Consumer Affairs,
30a statement that the Director of Consumer Affairs has reviewed
31the proposed regulation and determined that the proposed
32regulation furthers state law.end insert

33(14) A statement that the adopting agency must determine that
34no reasonable alternative considered by the agency or that has
35otherwise been identified and brought to the attention of the agency
36would be more effective in carrying out the purpose for which the
37action is proposed, would be as effective and less burdensome to
38affected private persons than the proposed action, or would be
39more cost effective to affected private persons and equally effective
40in implementing the statutory policy or other provision of law. For
P34   1a major regulation, as defined by Section 11342.548, proposed on
2or after November 1, 2013, the statement shall be based, in part,
3upon the standardized regulatory impact analysis of the proposed
4regulation, as required by Section 11346.3, as well as upon the
5benefits of the proposed regulation identified pursuant to
6subparagraph (C) of paragraph (3).

7(15) The name and telephone number of the agency
8representative and designated backup contact person to whom
9inquiries concerning the proposed administrative action may be
10directed.

11(16) The date by which comments submitted in writing must
12be received to present statements, arguments, or contentions in
13writing relating to the proposed action in order for them to be
14considered by the state agency before it adopts, amends, or repeals
15a regulation.

16(17) Reference to the fact that the agency proposing the action
17has prepared a statement of the reasons for the proposed action,
18has available all the information upon which its proposal is based,
19and has available the express terms of the proposed action, pursuant
20to subdivision (b).

21(18) A statement that if a public hearing is not scheduled, any
22interested person or his or her duly authorized representative may
23request, no later than 15 days prior to the close of the written
24comment period, a public hearing pursuant to Section 11346.8.

25(19) A statement indicating that the full text of a regulation
26changed pursuant to Section 11346.8 will be available for at least
2715 days prior to the date on which the agency adopts, amends, or
28repeals the resulting regulation.

29(20) A statement explaining how to obtain a copy of the final
30statement of reasons once it has been prepared pursuant to
31subdivision (a) of Section 11346.9.

32(21) If the agency maintains an Internet Web site or other similar
33forum for the electronic publication or distribution of written
34material, a statement explaining how materials published or
35distributed through that forum can be accessed.

36(22) If the proposed regulation is subject to Section 11346.6, a
37statement that the agency shall provide, upon request, a description
38of the proposed changes included in the proposed action, in the
39manner provided by Section 11346.6, to accommodate a person
40with a visual or other disability for which effective communication
P35   1is required under state or federal law and that providing the
2description of proposed changes may require extending the period
3of public comment for the proposed action.

4(b) The agency representative designated in paragraph (15) of
5subdivision (a) shall make available to the public upon request the
6express terms of the proposed action. The representative shall also
7make available to the public upon request the location of public
8records, including reports, documentation, and other materials,
9related to the proposed action. If the representative receives an
10inquiry regarding the proposed action that the representative cannot
11answer, the representative shall refer the inquiry to another person
12in the agency for a prompt response.

13(c) This section shall not be construed in any manner that results
14in the invalidation of a regulation because of the alleged inadequacy
15of the notice content or the summary or cost estimates, or the
16alleged inadequacy or inaccuracy of the housing cost estimates, if
17there has been substantial compliance with those requirements.

begin delete
18

SEC. 19.  

Section 11349 of the Government Code is amended
19to read:

20

11349.  

The following definitions govern the interpretation of
21this chapter:

22(a) “Necessity” means the record of the rulemaking proceeding
23demonstrates by substantial evidence the need for a regulation to
24effectuate the purpose of the statute, court decision, or other
25provision of law that the regulation implements, interprets, or
26makes specific, taking into account the totality of the record. For
27purposes of this standard, evidence includes, but is not limited to,
28facts, studies, and expert opinion.

29(b) “Authority” means the provision of law which permits or
30obligates the agency to adopt, amend, or repeal a regulation.

31(c) “Clarity” means written or displayed so that the meaning of
32regulations will be easily understood by those persons directly
33affected by them.

34(d) “Consistency” means being in harmony with, and not in
35conflict with or contradictory to, existing statutes, court decisions,
36or other provisions of law.

37(e) “Reference” means the statute, court decision, or other
38provision of law which the agency implements, interprets, or makes
39specific by adopting, amending, or repealing a regulation.

P36   1(f) “Nonduplication” means that a regulation does not serve the
2same purpose as a state or federal statute or another regulation.
3This standard requires that an agency proposing to amend or adopt
4a regulation must identify any state or federal statute or regulation
5which is overlapped or duplicated by the proposed regulation and
6justify any overlap or duplication. This standard is not intended
7to prohibit state agencies from printing relevant portions of
8enabling legislation in regulations when the duplication is necessary
9to satisfy the clarity standard in paragraph (3) of subdivision (a)
10of Section 11349.1. This standard is intended to prevent the
11indiscriminate incorporation of statutory language in a regulation.

12(g) “Competitive impact” means that the record of the
13rulemaking proceeding or other documentation demonstrates that
14the regulation is authorized by a clearly articulated and
15affirmatively expressed state law, that the regulation furthers the
16public protection mission of the state agency, and that the impact
17on competition is justified in light of the applicable regulatory
18rationale for the regulation.

19

SEC. 20.  

Section 11349.1 of the Government Code is amended
20to read:

21

11349.1.  

(a) The office shall review all regulations adopted,
22amended, or repealed pursuant to the procedure specified in Article
235 (commencing with Section 11346) and submitted to it for
24publication in the California Code of Regulations Supplement and
25for transmittal to the Secretary of State and make determinations
26using all of the following standards:

27(1) Necessity.

28(2) Authority.

29(3) Clarity.

30(4) Consistency.

31(5) Reference.

32(6) Nonduplication.

33(7) For those regulations submitted by a state board on which
34a controlling number of decisionmakers are active market
35participants in the market the board regulates, the office shall
36review for competitive impact.

37In reviewing regulations pursuant to this section, the office shall
38restrict its review to the regulation and the record of the rulemaking
39except as directed in subdivision (h). The office shall approve the
P37   1regulation or order of repeal if it complies with the standards set
2forth in this section and with this chapter.

3(b) In reviewing proposed regulations for the criteria in
4subdivision (a), the office may consider the clarity of the proposed
5regulation in the context of related regulations already in existence.

6(c) The office shall adopt regulations governing the procedures
7it uses in reviewing regulations submitted to it. The regulations
8shall provide for an orderly review and shall specify the methods,
9standards, presumptions, and principles the office uses, and the
10limitations it observes, in reviewing regulations to establish
11compliance with the standards specified in subdivision (a). The
12regulations adopted by the office shall ensure that it does not
13substitute its judgment for that of the rulemaking agency as
14expressed in the substantive content of adopted regulations.

15(d) The office shall return any regulation subject to this chapter
16to the adopting agency if any of the following occur:

17(1) The adopting agency has not prepared the estimate required
18by paragraph (6) of subdivision (a) of Section 11346.5 and has not
19included the data used and calculations made and the summary
20report of the estimate in the file of the rulemaking.

21(2) The agency has not complied with Section 11346.3.
22“Noncompliance” means that the agency failed to complete the
23economic impact assessment or standardized regulatory impact
24analysis required by Section 11346.3 or failed to include the
25assessment or analysis in the file of the rulemaking proceeding as
26required by Section 11347.3.

27(3) The adopting agency has prepared the estimate required by
28paragraph (6) of subdivision (a) of Section 11346.5, the estimate
29indicates that the regulation will result in a cost to local agencies
30or school districts that is required to be reimbursed under Part 7
31(commencing with Section 17500) of Division 4, and the adopting
32agency fails to do any of the following:

33(A) Cite an item in the Budget Act for the fiscal year in which
34the regulation will go into effect as the source from which the
35Controller may pay the claims of local agencies or school districts.

36(B) Cite an accompanying bill appropriating funds as the source
37from which the Controller may pay the claims of local agencies
38or school districts.

39(C) Attach a letter or other documentation from the Department
40of Finance which states that the Department of Finance has
P38   1approved a request by the agency that funds be included in the
2Budget Bill for the next following fiscal year to reimburse local
3agencies or school districts for the costs mandated by the
4regulation.

5(D) Attach a letter or other documentation from the Department
6 of Finance which states that the Department of Finance has
7authorized the augmentation of the amount available for
8expenditure under the agency’s appropriation in the Budget Act
9which is for reimbursement pursuant to Part 7 (commencing with
10Section 17500) of Division 4 to local agencies or school districts
11from the unencumbered balances of other appropriations in the
12Budget Act and that this augmentation is sufficient to reimburse
13local agencies or school districts for their costs mandated by the
14regulation.

15(4) The proposed regulation conflicts with an existing state
16regulation and the agency has not identified the manner in which
17the conflict may be resolved.

18(5) The agency did not make the alternatives determination as
19required by paragraph (4) of subdivision (a) of Section 11346.9.

20(6) The office decides that the record of the rulemaking
21proceeding or other documentation for the proposed regulation
22does not demonstrate that the regulation is authorized by a clearly
23articulated and affirmatively expressed state law, that the regulation
24does not further the public protection mission of the state agency,
25or that the impact on competition is not justified in light of the
26applicable regulatory rationale for the regulation.

27(e) The office shall notify the Department of Finance of all
28regulations returned pursuant to subdivision (d).

29(f) The office shall return a rulemaking file to the submitting
30agency if the file does not comply with subdivisions (a) and (b)
31of Section 11347.3. Within three state working days of the receipt
32of a rulemaking file, the office shall notify the submitting agency
33of any deficiency identified. If no notice of deficiency is mailed
34to the adopting agency within that time, a rulemaking file shall be
35deemed submitted as of the date of its original receipt by the office.
36A rulemaking file shall not be deemed submitted until each
37deficiency identified under this subdivision has been corrected.

38(g) Notwithstanding any other law, return of the regulation to
39the adopting agency by the office pursuant to this section is the
40exclusive remedy for a failure to comply with subdivision (c) of
P39   1Section 11346.3 or paragraph (10) of subdivision (a) of Section
211346.5.

3(h) The office may designate, employ, or contract for the
4services of independent antitrust or applicable economic experts
5when reviewing proposed regulations for competitive impact.
6When reviewing a regulation for competitive impact, the office
7shall do all of the following:

8(1) If the Director of Consumer Affairs issued a written decision
9pursuant to subdivision (c) of Section 109 of the Business and
10Professions Code, the office shall review and consider the decision
11and all supporting documentation in the rulemaking file.

12(2) Consider whether the anticompetitive effects of the proposed
13regulation are clearly outweighed by the public policy merits.

14(3) Provide a written opinion setting forth the office’s findings
15and substantive conclusions under paragraph (2), including, but
16not limited to, whether rejection or modification of the proposed
17regulation is necessary to ensure that restraints of trade are related
18to and advance the public policy underlying the applicable
19regulatory rationale.

end delete
20

begin deleteSEC. 21.end delete
21
begin insertSEC. 19.end insert  

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution because
23the only costs that may be incurred by a local agency or school
24district will be incurred because this act creates a new crime or
25infraction, eliminates a crime or infraction, or changes the penalty
26for a crime or infraction, within the meaning of Section 17556 of
27the Government Code, or changes the definition of a crime within
28the meaning of Section 6 of Article XIII B of the California
29Constitution.



O

    97