BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 824|
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THIRD READING
Bill No: SB 824
Author: Negrete McLeod (D)
Amended: As introduced
Vote: 21
SENATE BUS., PROF. & ECON. DEVELOP. COMMITTEE : 8-0, 4/4/11
AYES: Price, Emmerson, Corbett, Correa, Hernandez, Vargas,
Walters, Wyland
NO VOTE RECORDED: Negrete McLeod
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Opticians: regulation
SOURCE : LensCrafters
Sears Optical
Target Optical
DIGEST : This bill requires a registered dispensing
optician acquiring ownership of a business to file a notice
with the Medical Board of California within 10 days of the
completion of the transfer of ownership.
ANALYSIS :
Existing law :
1. States that individuals, corporations, and firms engaged
in the business of filling prescriptions of physicians
and surgeons licensed by the Medical Board of California
CONTINUED
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(MBC), or optometrists licensed by the State Board of
Optometry for prescription lenses and kindred products,
and, as incidental to the filling of those
prescriptions, doing any or all of the following acts,
either singly or in combination with others, taking
facial measurements, fitting and adjusting those lenses
and fitting and adjusting spectacle frames, shall be
known as dispensing opticians and shall not engage in
that business unless registered with MBC.
2. Requires that the application for registration by
dispensing opticians be on forms prescribed by MBC and
to bear the signature of the individual, or general
partners if a partnership, or the president or secretary
if a corporation, and to contain the name and address of
the business.
3. Requires MBC to notify any applicant by registered or
certified mail if an application and supporting
documentation are not substantially complete as of the
30th day following the submission of an application, and
provides that the notice shall be in writing and specify
the documents or information that needs to be supplied.
4. Provides that if an application is approved, MBC shall
issue a certificate of dispensing optician which must be
displayed at all times in a conspicuous place at the
certified place of business.
This bill:
1. Provides that if a registered dispensing opticians sells
or transfers in any matter an ownership interest in
his/her place of business, then the registered
dispensing optician assuming the ownership of the
business shall record with MBC a written notice of the
change of ownership no later than 10 calendar days after
the change of ownership is completed.
2. States that the registered dispensing optician selling
or transferring the ownership interest in his or her
business shall be responsible for complying with all
laws relating to the place of business until the notice
is received by MBC.
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3. Provides that this bill does not apply to a change of
location of business by a registered dispensing
optician.
Background
Current law requires that individuals or businesses engaged
in the business of filling prescriptions of physicians and
surgeons, or optometrists for prescription lenses, to
register with MBC. A registration form prescribed by MBC
must include the signature of the individual, general
partner, or president or secretary of the corporation, and
the name that will be used and the business address. The
application must also designate the name, address and
business telephone number of the applicant's employee who
will be handling customer inquiries and complaints. If
there are deficiencies in an application, MBC is required
to notify an applicant within 30 days. If an application
is approved, MBC issues a certificate of dispensing
optician, which is required to be displayed at all times in
a conspicuous place at the certified place of business.
The certificate is not transferable, but on application to
MBC there may be registered a change of address of the
certificate. The sponsors point out that the requirement
that a certificate must be posted at all times does not
give sufficient time for change of ownership to be
accomplished.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/2/11)
LensCrafters (co-source)
Sears Optical (co-source)
Target Optical (co-source)
ARGUMENTS IN SUPPORT : According to LensCrafters, Target
Optical, and Sears Optical, the sponsors of this bill, the
current law requires a dispensing optician to post his or
her certificate of registration with MBC at all times in
the business location. However, to change ownership, the
registration documents must be furnished to MBC, which can
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leave a registered dispensing optician without a
certificate for a period of time while the registration is
being processed. There is no consideration for a change of
ownership process that would allow the registered
dispensing optician to remain open. To illustrate, the
sponsors indicate that recently Sears and Target Optical
went through an internal change of ownership. However, due
to the interpretation of the law, each store was required
to file new registrations the same day the switch in
ownership occurred. This was incredibly time consuming.
They state that this bill provides a process for a change
of ownership that allows the registered dispensing optician
to remain open while the documents are being properly
processed.
CTW:do 5/2/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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