BILL ANALYSIS �
SB 824
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Date of Hearing: June 14, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 824 (Negrete McLeod) - As Introduced: February 18, 2011
SENATE VOTE : 40-0
SUBJECT : Opticians: regulation.
SUMMARY : Requires a registered dispensing optician (RDO) that
acquires ownership of a business to file a notice with the
Medical Board of California (MBC) within 10 days of the
completion of the transfer of ownership. Specifically, this
bill :
1)Provides that if a RDO sells or transfers in any matter an
ownership interest in his or her place of business, the RDO
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 RDO 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; and,
3)Provides that this bill does not apply to a change of location
of business by a RDO.
EXISTING LAW
1)States that individuals, corporations, and firms engaged in
the business of filling prescriptions of physicians and
surgeons licensed by MBC, or optometrists licensed by the
State Board of Optometry (Board) 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.
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2)Requires that the application for registration by dispensing
opticians be on forms prescribed by MBC and 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. Provides that the notice
shall be in writing and specify the documents or information
that must 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.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, current
law requires the registration of an RDO business to be posted at
all times in the business location. "However, to change
ownership, the registration documents must be furnished to the
board, which can leave a RDO 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 RDO to remain open. This bill will provide a process for a
change of ownership that allows the RDO to remain open while the
documents are being properly processed."
Background . Current law requires 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
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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, the owner can register
a change of address of the certificate.
Support . The sponsors point out that the requirement that a
certificate must be posted at all times does not give sufficient
time for a change of ownership to be accomplished. They note
that a recent internal change of ownership was incredibly time
consuming, as current law required each store to file new
registrations the same day the switch in ownership occurred.
They state that this bill will provide some relief when such a
situation occurs.
The Medical Board of California states, "Currently, the Board
sometimes has issues receiving both the new RDO application and
the notice of cancellation for the RDO selling or transferring
the ownership in the same time period. The Board first has to
process the notice of cancellation before the new certificate of
dispensing optician can be issued to the applicant. The Board
believes that putting a 10 day timeline on both parties to get
their required paperwork in to the Board will make this process
run more smoothly and effectively for the Board."
REGISTERED SUPPORT / OPPOSITION :
Support
LensCrafters (Sponsor)
Sears Optical (Co-Sponsor)
Target Optical (Co-Sponsor)
Medical Board of California
Opposition
None on file
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
SB 824
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