Amended in Assembly April 23, 2014

Amended in Assembly March 18, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2605

Introduced by Assembly Member Bonilla

February 21, 2014

begin delete An act to amend Section 4200.3 of the Business and Professions Code, relating to pharmacy. end delete begin insert An act to amend Sections 4022.5, 4040.5, 4043, 4045, 4053, 4060, 4081, 4101, 4105, 4120, 4126, 4149, 4160, 4161, 4162, 4162.5, 4164, 4165, 4166, 4167, 4168, 4169, 4201, 4305.5, 4312, 4331, and 4400 of, and to amend the heading of Article 11 (commencing with Section 4160) of Chapter 9 of Division 2 of, the Business and Professions Code, relating to pharmacy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2605, as amended, Bonilla. begin delete Pharmacy: sterile drug products. end delete begin insert Pharmacy: third-party logistics providers. end insert

begin insert

(1) Under the Pharmacy Law, a violation of which is a crime, the California State Board of Pharmacy licenses and regulates the practice of pharmacy. Existing law restricts the purchase, trade, sale, or transfer of dangerous drugs or dangerous devices, as defined, to licensed wholesalers and other authorized persons. Under the Pharmacy Law, the board licenses and regulates entities, including third-party logistics providers, as wholesalers. The Pharmacy Law defines a “third-party logistics provider” or a “reverse third-party logistics provider” as an entity licensed as a wholesaler that contracts with a dangerous drug manufacturer to provide or coordinate warehousing, distribution, or other similar services on behalf of a manufacturer, but for which there is no change of ownership in the dangerous drugs.

end insert begin insert

This bill would delete from the definition of “third-party logistics provider” or “reverse third-party logistics provider” the requirement that the entity be a licensed wholesaler, and would require a third-party logistics provider of a dangerous drug or dangerous device to be separately licensed by the board as a third-party logistics provider.

end insert begin insert

(2) The Pharmacy Law requires a person located outside this state that ships, sells, mails, or delivers dangerous drugs or dangerous devices into this state, or sells, brokers, or distributes dangerous drugs or devices within this state to be a licensed nonresident wholesaler.

end insert begin insert

This bill would, in addition, require a person located outside this state that performs those actions or that warehouses or distributes dangerous drugs or dangerous devices into this state, or warehouses dangerous drugs or devices within this state to be licensed as either a nonresident wholesaler or a nonresident third-party logistics provider. The bill would make conforming changes, and would delete obsolete cross-references and provisions.

end insert begin insert

(3) Existing law sets the fees for the issuance and renewal of licenses for wholesalers and designated representatives at specified amounts and authorizes those fees to be increased to specified higher amounts.

end insert begin insert

This bill would instead set the fees at the higher amounts.

end insert begin insert

(4) Because a violation of the requirements described in paragraphs (1) and (2) above would be a crime, the bill would impose a state-mandated local program.

end insert begin insert

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.

end insert begin insert

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

end insert begin delete

The Pharmacy Law provides for the licensure and regulation of pharmacists and pharmacy corporations in this state by the California State Board of Pharmacy. Existing law requires an applicant for licensure to have, among other things, passed specified national and state examinations. Existing law requires the examination process to be regularly reviewed, as specified, and to meet certain national testing standards. Existing law requires the board to report to the Joint Committee on Boards, Commissions, and Consumer Protection and the Department of Consumer Affairs, as part of its next scheduled review, the pass rates of applicants who sat for the national examination compared with the pass rates of applicants who sat for the prior state examination, as specified.

end delete begin delete

This bill would instead require the board to report the pass rate information described above to the appropriate policy committees of the Legislature and the department.

end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 4022.5 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

4022.5.  

(a) “Designated representative” means an individual
to whom a license has been granted pursuant to Section 4053. A
pharmacist fulfilling the duties of Section 4053 shall not be
required to obtain a license as a designated representative.

(b) “Designated representative-in-charge” means a designated
representative or a pharmacist proposed by a begin delete wholesaler end delete
begin insert wholesaler, third-party logistics provider, end insert or veterinary
food-animal drug retailer and approved by the board as the
supervisor or manager responsible for ensuring the begin delete wholesaler’s end delete
begin insert compliance of the wholesaler, third-party logistics provider, end insert or
veterinary food-animal drug begin delete retailer’s compliance end delete begin insert retailer end insert with all
state and federal laws and regulations pertaining to practice in the
applicable license category.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 4040.5 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4040.5.  

“Reverse distributor” means every person who acts as
an agent for pharmacies, drug wholesalers, begin insert third-party logistics
providers, end insert manufacturers, and other entities by receiving,
inventorying, begin insert warehousing, end insert and managing the disposition of
outdated or begin delete nonsalable end delete begin insert nonsaleable end insert dangerous drugs.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 4043 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4043.  

begin delete (a) end delete begin delete   end delete “Wholesaler” means and includes a person who acts
as a wholesale merchant, broker, jobber, customs broker, reverse
distributor, agent, or a nonresident wholesaler, who sells for resale,
or negotiates for distribution, or takes possession of, any drug or
device included in Section 4022. Unless otherwise authorized by
law, a wholesaler may not store, warehouse, or authorize the
storage or warehousing of drugs with any person or at any location
not licensed by the board.

begin delete

(b) This section shall become operative January 1, 2006.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 4045 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4045.  

“Third-party logistics provider” or “reverse third-party
logistic provider” means begin delete an entity end delete begin delete licensed as a wholesaler end delete begin insert an
entity end insert that contracts with a dangerous drug manufacturer to provide
or coordinate warehousing, distribution, or other similar services
on behalf of a manufacturer, but for which there is no change of
ownership in the dangerous drugs. begin delete For purposes of Sections 4034,
4163, 4163.1, 4163.2, 4163.3, 4163.4, and 4163.5, a third-party
logistics provider shall not be responsible for generating or
updating pedigree documentation, but shall maintain copies of the
pedigree. end delete begin delete To be exempt from documentation for pedigrees, a
reverse third-party logistic provider may only accept
decommissioned drugs from pharmacies or wholesalers. end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 4053 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4053.  

(a) Notwithstanding Section 4051, the board may issue
a license as a designated representative to provide sufficient and
qualified supervision in a begin delete wholesaler end delete begin insert wholesaler, third-party
logistics provider, end insert or veterinary food-animal drug retailer. The
designated representative shall protect the public health and safety
in the handling, storage, begin insert warehousing, distribution, end insert and shipment
of dangerous drugs and dangerous devices in the begin delete wholesaler end delete
begin insert wholesaler, third-party logistics provider, end insert or veterinary
food-animal drug retailer.

(b) An individual begin insert who is at least 18 years of age end insert may apply for
a designated representative license. In order to obtain and maintain
that license, the individual shall meet all of the following
requirements:

(1) He or she shall be a high school graduate or possess a general
education development certificate equivalent.

(2) He or she shall have a minimum of one year of paid work
experience in a licensed pharmacy, or with a drug wholesaler,
begin insert third-party logistics provider, end insert drug distributor, or drug
manufacturer, in the past three years, related to the distribution or
dispensing of dangerous drugs or dangerous devices or meet all
of the prerequisites to take the examination required for licensure
as a pharmacist by the board.

(3) He or she shall complete a training program approved by
the board that, at a minimum, addresses each of the following
subjects:

(A) Knowledge and understanding of California law and federal
law relating to the distribution of dangerous drugs and dangerous
devices.

(B) Knowledge and understanding of California law and federal
law relating to the distribution of controlled substances.

(C) Knowledge and understanding of quality control systems.

(D) Knowledge and understanding of the United States
Pharmacopoeia standards relating to the safe storage and handling
of drugs.

(E) Knowledge and understanding of prescription terminology,
abbreviations, dosages, and format.

(4) The board may, by regulation, require training programs to
include additional material.

(5) The board begin delete may end delete begin insert shall end insert not issue a license as a designated
representative until the applicant provides proof of completion of
the required training to the board.

(c) The begin insert wholesaler, third-party logistics provider, or end insert veterinary
food-animal drug retailer begin delete or wholesaler end delete shall not operate without
a pharmacist or a designated representative on its premises.

(d) Only a pharmacist or a designated representative shall
prepare and affix the label to veterinary food-animal drugs.

(e) Section 4051 shall not apply to any laboratory licensed under
Section 351 of Title III of the Public Health Service Act (Public
Law 78-410).

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 4060 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4060.  

A person shall not possess any controlled substance,
except that furnished to a person upon the prescription of a
physician, dentist, podiatrist, optometrist, veterinarian, or
naturopathic doctor pursuant to Section 3640.7, or furnished
pursuant to a drug order issued by a certified nurse-midwife
pursuant to Section 2746.51, a nurse practitioner pursuant to
Section 2836.1, a physician assistant pursuant to Section 3502.1,
a naturopathic doctor pursuant to Section 3640.5, or a pharmacist
pursuant to Section 4052.1, 4052.2, or 4052.6. This section does
not apply to the possession of any controlled substance by a
manufacturer, wholesaler, begin insert third-party logistics provider, end insert pharmacy,
pharmacist, physician, podiatrist, dentist, optometrist, veterinarian,
naturopathic doctor, certified nurse-midwife, nurse practitioner,
or physician assistant, if in stock in containers correctly labeled
with the name and address of the supplier or producer.

This section does not authorize a certified nurse-midwife, a nurse
practitioner, a physician assistant, or a naturopathic doctor, to order
his or her own stock of dangerous drugs and devices.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 4081 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4081.  

(a) All records of manufacture and of sale, acquisition,
or disposition of dangerous drugs or dangerous devices shall be
at all times during business hours open to inspection by authorized
officers of the law, and shall be preserved for at least three years
from the date of making. A current inventory shall be kept by every
manufacturer, wholesaler, begin insert third-party logistics provider, end insert pharmacy,
veterinary food-animal drug retailer, physician, dentist, podiatrist,
veterinarian, laboratory, clinic, hospital, institution, or
establishment holding a currently valid and unrevoked certificate,
license, permit, registration, or exemption under Division 2
(commencing with Section 1200) of the Health and Safety Code
or under Part 4 (commencing with Section 16000) of Division 9
of the Welfare and Institutions Code who maintains a stock of
dangerous drugs or dangerous devices.

(b) The owner, officer, and partner of a pharmacy, wholesaler,
begin insert third-party logistics provider, end insert or veterinary food-animal drug
retailer shall be jointly responsible, with the pharmacist-in-charge
or designated representative-in-charge, for maintaining the records
and inventory described in this section.

(c) The pharmacist-in-charge or designated
representative-in-charge shall not be criminally responsible for
acts of the owner, officer, partner, or employee that violate this
section and of which the pharmacist-in-charge or designated
representative-in-charge had no knowledge, or in which he or she
did not knowingly participate.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 4101 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4101.  

(a) A pharmacist may take charge of and act as the
pharmacist-in-charge of a pharmacy upon application by the
pharmacy and approval by the board. Any pharmacist-in-charge
who ceases to act as the pharmacist-in-charge of the pharmacy
shall notify the board in writing within 30 days of the date of that
change in status.

(b) A designated representative or a pharmacist may take charge
of, and act as, the designated representative-in-charge of a
begin delete wholesaler end delete begin insert wholesaler, third-party logistics provider, end insert or veterinary
food-animal drug retailer upon application by the begin delete wholesaler end delete
begin insert wholesaler, third-party logistics provider, end insert or veterinary
food-animal drug retailer and approval by the board. Any
designated representative-in-charge who ceases to act as the
designated representative-in-charge at that entity shall notify the
board in writing within 30 days of the date of that change in status.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 4105 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

4105.  

(a) All records or other documentation of the acquisition
and disposition of dangerous drugs and dangerous devices by any
entity licensed by the board shall be retained on the licensed
premises in a readily retrievable form.

(b) The licensee may remove the original records or
documentation from the licensed premises on a temporary basis
for license-related purposes. However, a duplicate set of those
records or other documentation shall be retained on the licensed
premises.

(c) The records required by this section shall be retained on the
licensed premises for a period of three years from the date of
making.

(d) Any records that are maintained electronically shall be
maintained so that the pharmacist-in-charge, the pharmacist on
duty if the pharmacist-in-charge is not on duty, or, in the case of
a veterinary food-animal drug begin delete retailer or end delete begin insert retailer, end insert wholesaler,
begin insert third-party logistics provider, or end insert the designated representative on
duty, shall, at all times during which the licensed premises are
open for business, be able to produce a hardcopy and electronic
copy of all records of acquisition or disposition or other drug or
dispensing-related records maintained electronically.

(e) (1) Notwithstanding subdivisions (a), (b), and (c), the board,
may upon written request, grant to a licensee a waiver of the
requirements that the records described in subdivisions (a), (b),
and (c) be kept on the licensed premises.

(2) A waiver granted pursuant to this subdivision shall not affect
the board’s authority under this section or any other provision of
this chapter.

(f) When requested by an authorized officer of the law or by an
authorized representative of the board, the owner, corporate officer,
or manager of an entity licensed by the board shall provide the
board with the requested records within three business days of the
time the request was made. The entity may request in writing an
extension of this timeframe for a period not to exceed 14 calendar
days from the date the records were requested. A request for an
extension of time is subject to the approval of the board. An
extension shall be deemed approved if the board fails to deny the
extension request within two business days of the time the
extension request was made directly to the board.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 4120 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4120.  

(a) A nonresident pharmacy shall not sell or distribute
dangerous drugs or dangerous devices in this state through any
person or media other than a wholesaler begin insert or third-party logistics
provider end insert who has obtained a license pursuant to this chapter or
through a selling or distribution outlet that is licensed as a
wholesaler begin insert or third-party logistics provider end insert pursuant to this chapter
without registering as a nonresident pharmacy.

(b) Applications for a nonresident pharmacy registration shall
be made on a form furnished by the board. The board may require
any information as the board deems reasonably necessary to carry
out the purposes of this section.

(c) The Legislature, by enacting this section, does not intend a
license issued to any nonresident pharmacy pursuant to this section
to change or affect the tax liability imposed by Chapter 3
(commencing with Section 23501) of Part 11 of Division 2 of the
Revenue and Taxation Code on any nonresident pharmacy.

(d) The Legislature, by enacting this section, does not intend a
license issued to any nonresident pharmacy pursuant to this section
to serve as any evidence that the nonresident pharmacy is doing
business within this state.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 4126 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4126.  

(a) Notwithstanding any other begin delete provision of end delete law, a
covered entity may contract with a pharmacy to provide pharmacy
services to patients of the covered entity, as defined in Section
256b of Title 42 of the United States Code, including dispensing
preferentially priced drugs obtained pursuant to Section 256b of
Title 42 of the United States Code. Contracts between those
covered entities and pharmacies shall comply with guidelines
published by the Health Resources and Services Administration
and shall be available for inspection by board staff during normal
business hours.

(b) Drugs purchased pursuant to Section 256b of Title 42 of the
United States Code and received by a pharmacy shall be segregated
from the pharmacy’s other drug stock by either physical or
electronic means. All records of acquisition and disposition of
these drugs shall be readily retrievable in a form separate from the
pharmacy’s other records.

(c) Drugs obtained by a pharmacy to be dispensed to patients
of a covered entity pursuant to Section 256b of Title 42 of the
United States Code that cannot be distributed because of a change
in circumstances for the covered entity or the pharmacy shall be
returned to the distributor from which they were obtained. For the
purposes of this section, a change in circumstances includes, but
is not limited to, the termination or expiration of the contract
between the pharmacy and the covered entity, the closure of a
pharmacy, disciplinary action against the pharmacy, or closure of
the covered entity.

(d) A licensee that participates in a contract to dispense
preferentially priced drugs pursuant to this section shall not have
both a pharmacy and a wholesaler begin insert license, or both a pharmacy
and a third-party logistics provider end insert license.

(e) Neither a covered entity nor a pharmacy shall be required
to obtain a license as a wholesaler begin insert or a third-party logistics
provider end insert based on acts reasonably necessary to fully participate
in the drug purchase program established by Section 256b of Title
42 of the United States Code.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 4149 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4149.  

(a) A nonresident distributor shall not sell or distribute
hypodermic needles or syringes in this state without obtaining a
license from the board pursuant to Section 4141.

(b) Notwithstanding subdivision (a), begin delete no end delete begin insert a end insert license begin delete shall be end delete begin insert is not end insert
required if the nonresident distributor sells or distributes solely
through a person who is licensed as a wholesaler begin insert or third-party
logistics provider end insert pursuant to Section 4160.

(c) The Legislature, by enacting this section, does not intend a
license issued to any nonresident distributor pursuant to this article
to serve as evidence that the entity is doing business within this
state.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert The heading of Article 11 (commencing with Section
4160) of Chapter 9 of Division 2 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

 

Article 11.  begin delete Wholesalers end delete begin insert Wholesalers, Third-Party Logistics
Providers, end insert and Manufacturers

 

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 4160 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4160.  

(a) A person begin delete may end delete begin insert shall end insert not act as a wholesaler begin insert or
third-party logistics provider end insert of any dangerous drug or dangerous
device unless he or she has obtained a license from the board.

(b) Upon approval by the board and the payment of the required
fee, the board shall issue a license to the applicant.

(c) A separate license shall be required for each place of business
owned or operated by a begin delete wholesaler. end delete begin insert wholesaler or third-party
logistics provider. end insert Each license shall be renewed annually and
shall not be transferable.

(d) Every wholesaler begin insert or third-party logistics provider end insert shall be
supervised or managed by a designated representative-in-charge.
The designated representative-in-charge shall be responsible for
the begin delete wholesaler’s end delete compliance begin insert of the wholesaler or third-party
logistics provider end insert with state and federal laws governing
begin delete wholesalers. end delete begin insert wholesalers and third-party logistics providers. end insert As
part of its initial application for a license, and for each renewal,
each wholesaler begin insert or third-party logistics provider end insert shall, on a form
designed by the board, provide identifying information and the
California license number for a designated representative or
pharmacist proposed to serve as the designated
representative-in-charge. The proposed designated
representative-in-charge shall be subject to approval by the board.
The board shall not issue or renew a wholesaler begin insert or third-party
logistics provider end insert license without identification of an approved
designated representative-in-charge for the begin delete wholesaler. end delete begin insert wholesaler
or third-party logistics provider. end insert

(e)  begin delete Every end delete begin insert A end insert wholesaler begin insert or third-party logistics provider end insert shall
notify the board in writing, on a form designed by the board, within
30 days of the date when a designated representative-in-charge
ceases to act as the designated representative-in-charge, and shall
on the same form propose another designated representative or
pharmacist to take over as the designated representative-in-charge.
The proposed replacement designated representative-in-charge
shall be subject to approval by the board. If disapproved, the
wholesaler begin insert or third-party logistics provider end insert shall propose another
replacement within 15 days of the date of disapproval, and shall
continue to name proposed replacements until a designated
representative-in-charge is approved by the board.

(f) A drug manufacturer premises licensed by the Food and
Drug Administration or licensed pursuant to Section 111615 of
the Health and Safety Code that only distributes dangerous drugs
and dangerous devices of its own manufacture is exempt from this
section and Section 4161.

(g) The board may issue a temporary license, upon conditions
and for periods of time as the board determines to be in the public
interest. A temporary license fee shall be required in an amount
established by the board as specified in subdivision (f) of Section
4400. When needed to protect public safety, a temporary license
may be issued for a period not to exceed 180 days, subject to terms
and conditions that the board deems necessary. If the board
determines that a temporary license was issued by mistake or denies
the application for a permanent license, the temporary license shall
terminate upon either personal service of the notice of termination
upon the licenseholder or service by certified mail, return receipt
requested, at the licenseholder’s address of record with the board,
whichever occurs first. Neither for purposes of retaining a
temporary license, nor for purposes of any disciplinary or license
denial proceeding before the board, shall the temporary
licenseholder be deemed to have a vested property right or interest
in the license.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 4161 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4161.  

(a) A person located outside this state that (1) ships,
sells, mails, begin insert warehouses, distributes, end insert or delivers dangerous drugs
or dangerous devices into this state or (2) sells, brokers,
begin insert warehouses, end insert or distributes dangerous drugs or devices within this
state shall be considered a nonresident begin delete wholesaler. end delete begin insert wholesaler or
a nonresident third-party logistics provider. end insert

(b) A nonresident wholesaler begin insert or nonresident third-party logistics
provider end insert shall be licensed by the board prior to shipping, selling,
mailing, begin insert warehousing, distributing, end insert or delivering dangerous drugs
or dangerous devices to a site located in this state or selling,
brokering, begin insert warehousing, end insert or distributing dangerous drugs or devices
within this state.

(c) A separate license shall be required for each place of business
owned or operated by a nonresident wholesaler begin insert or nonresident
third-party logistics provider end insert from or through which dangerous
drugs or dangerous devices are shipped, sold, mailed, begin insert warehoused,
distributed, end insert or delivered to a site located in this state or sold,
brokered, begin insert warehoused, end insert or distributed within this state. A license
shall be renewed annually and shall not be transferable.

(d) The following information shall be reported, in writing, to
the board at the time of initial application for licensure by a
nonresident begin delete wholesaler, end delete begin insert wholesaler or a nonresident third-party
logistics provider, end insert on renewal of a nonresident wholesaler begin insert or
nonresident third-party logistics provider end insert license, or within 30
days of a change in that information:

(1) Its agent for service of process in this state.

(2) Its principal corporate officers, as specified by the board, if
any.

(3) Its general partners, as specified by the board, if any.

(4) Its owners if the applicant is not a corporation or partnership.

(e) A report containing the information in subdivision (d) shall
be made within 30 days of any change of ownership, office,
corporate officer, or partner.

(f) A nonresident wholesaler begin insert or nonresident third-party logistics
provider end insert shall comply with all directions and requests for
information from the regulatory or licensing agency of the state
in which it is licensed, as well as with all requests for information
made by the board.

(g) A nonresident wholesaler begin insert or nonresident third-party logistics
provider end insert shall maintain records of dangerous drugs and dangerous
devices sold, traded, begin insert transferred, warehoused, end insert or begin delete transferred end delete
begin insert distributed end insert to persons in this state or within this state, so that the
records are in a readily retrievable form.

(h) A nonresident wholesaler begin insert or nonresident third-party logistics
provider end insert shall at all times maintain a valid, unexpired license,
permit, or registration to conduct the business of the wholesaler
begin insert or nonresident third-party logistics provider end insert in compliance with
the laws of the state in which it is a resident. An application for a
nonresident wholesaler begin insert or nonresident third-party logistics provider end insert
license in this state shall include a license verification from the
licensing authority in the applicant’s state of residence.

(i) The board begin delete may end delete begin insert shall end insert not issue or renew a nonresident
wholesaler begin insert or nonresident third-party logistics provider end insert license
until the nonresident wholesaler begin insert or nonresident third-party logistics
provider end insert identifies a designated representative-in-charge and
notifies the board in writing of the identity and license number of
the designated representative-in-charge.

(j) The designated representative-in-charge shall be responsible
for the begin insert compliance of the end insert nonresident begin delete wholesaler’s compliance end delete
begin insert wholesaler or nonresident third-party logistics provider end insert with state
and federal laws governing begin delete wholesalers. end delete begin insert wholesalers and
third-party logistics providers. end insert A nonresident wholesaler begin insert or
nonresident third-party logistics provider end insert shall identify and notify
the board of a new designated representative-in-charge within 30
days of the date that the prior designated representative-in-charge
ceases to be the designated representative-in-charge.

(k) The board may issue a temporary license, upon conditions
and for periods of time as the board determines to be in the public
interest. A temporary license fee shall be five hundred fifty dollars
($550) or another amount established by the board not to exceed
the annual fee for renewal of a license to compound injectable
sterile drug products. When needed to protect public safety, a
temporary license may be issued for a period not to exceed 180
days, subject to terms and conditions that the board deems
necessary. If the board determines that a temporary license was
issued by mistake or denies the application for a permanent license,
the temporary license shall terminate upon either personal service
of the notice of termination upon the licenseholder or service by
certified mail, return receipt requested, at the licenseholder’s
address of record with the board, whichever occurs first. Neither
for purposes of retaining a temporary license, nor for purposes of
any disciplinary or license denial proceeding before the board,
shall the temporary licenseholder be deemed to have a vested
property right or interest in the license.

(l) The registration fee shall be the fee specified in subdivision
(f) of Section 4400.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 4162 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4162.  

(a) (1) An begin delete applicant, that is not a government owned
and operated wholesaler, end delete begin insert applicant end insert for the issuance or renewal of
a wholesaler begin delete license end delete begin insert or third-party logistics provider license, which
is not government owned and operated, end insert shall submit a surety bond
of one hundred thousand dollars ($100,000) or other equivalent
means of security acceptable to the board payable to the Pharmacy
Board Contingent Fund. The purpose of the surety bond is to secure
payment of any administrative fine imposed by the board and any
cost recovery ordered pursuant to Section 125.3.

(2) For purposes of paragraph (1), the board may accept a surety
bond less than one hundred thousand dollars ($100,000) if the
annual gross receipts of the previous tax year for the wholesaler
begin insert or third-party logistics provider end insert is ten million dollars ($10,000,000)
or less, in which case the surety bond shall be twenty-five thousand
dollars ($25,000).

(3) A person to whom an approved new drug application has
been issued by the United States Food and Drug Administration
who engages in the wholesale distribution of only the dangerous
drug specified in the new drug application, and is licensed or
applies for licensure as a begin delete wholesaler, end delete begin insert wholesaler or third-party
logistics provider, end insert shall not be required to post a surety bond as
provided in paragraph (1).

(4) For licensees subject to paragraph (2) or (3), the board may
require a bond up to one hundred thousand dollars ($100,000) for
any licensee who has been disciplined by any state or federal
agency or has been issued an administrative fine pursuant to this
chapter.

(b) The board may make a claim against the bond if the licensee
fails to pay a fine within 30 days after the order imposing the fine,
or costs become final.

(c) A single surety bond or other equivalent means of security
acceptable to the board shall satisfy the requirement of subdivision
(a) for all licensed sites under common control as defined in
Section 4126.5.

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 4162.5 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4162.5.  

(a) (1) An applicant for the issuance or renewal of a
nonresident wholesaler begin insert or third-party logistics provider end insert license
shall submit a surety bond of one hundred thousand dollars
($100,000), or other equivalent means of security acceptable to
the board, such as an irrevocable letter of credit, or a deposit in a
trust account or financial institution, payable to the Pharmacy
Board Contingent Fund. The purpose of the surety bond is to secure
payment of any administrative fine imposed by the board and any
cost recovery ordered pursuant to Section 125.3.

(2) For purposes of paragraph (1), the board may accept a surety
bond less than one hundred thousand dollars ($100,000) if the
annual gross receipts of the previous tax year for the nonresident
wholesaler begin insert or third-party logistics provider end insert is ten million dollars
($10,000,000) or begin delete less end delete begin insert less, end insert in which begin insert case end insert the surety bond shall be
twenty-five thousand dollars ($25,000).

(3) For applicants who satisfy paragraph (2), the board may
require a bond up to one hundred thousand dollars ($100,000) for
any nonresident wholesaler begin insert or third-party logistics provider end insert who
has been disciplined by any state or federal agency or has been
issued an administrative fine pursuant to this chapter.

(4) A person to whom an approved new drug application or a
biologics license application has been issued by the United States
Food and Drug Administration who engages in the wholesale
distribution of only the dangerous drug specified in the new drug
application or biologics license application, and is licensed or
applies for licensure as a nonresident begin delete wholesaler, end delete begin insert wholesaler or
third-party logistics provider, end insert shall not be required to post a surety
bond as provided in this section.

(b) The board may make a claim against the bond if the licensee
fails to pay a fine within 30 days of the issuance of the fine or
when the costs become final.

(c) A single surety bond or other equivalent means of security
acceptable to the board shall satisfy the requirement of subdivision
(a) for all licensed sites under common control as defined in
Section 4126.5.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 4164 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4164.  

(a) A wholesaler begin insert or third-party logistics provider end insert
licensed by the board that distributes controlled substances,
dangerous drugs, or dangerous devices within or into this state
shall report to the board all begin delete sales end delete begin insert distributions end insert of dangerous drugs
and controlled substances that are subject to abuse, as determined
by the board.

(b) Each wholesaler shall develop and maintain a system for
tracking individual sales of dangerous drugs at preferential or
contract prices to pharmacies that primarily or solely dispense
prescription drugs to patients of long-term care facilities. The
system shall be capable of identifying purchases of any dangerous
drug at preferential or contract prices by customers that vary
significantly from prior ordering patterns for the same customer,
including by identifying purchases in the preceding 12 calendar
months by that customer or similar customers and identifying
current purchases that exceed prior purchases by either that
customer or similar customers by a factor of 20 percent. begin delete Each
wholesaler shall have the tracking system required by this
subdivision in place no later than January 1, 2006. end delete

(c) Upon written, oral, or electronic request by the board, a
wholesaler shall furnish data tracked pursuant to subdivision (b)
to the board in written, hardcopy, or electronic form. The board
shall specify the dangerous drugs, the customers, or both the
dangerous drugs and customers for which data are to be furnished,
and the wholesaler shall have 30 calendar days to comply with the
request.

(d) As used in this section, “preferential or contract prices”
means and refers to purchases by contract of dangerous drugs at
prices below the market wholesale price for those drugs.

begin delete end delete begin delete

(e) This section shall become operative on January 1, 2006.

end delete begin delete end delete

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 4165 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4165.  

A wholesaler begin insert or third-party logistics provider end insert licensed
by the board who sells or transfers any dangerous drug or
dangerous device into this state or who receives, by sale or
otherwise, any dangerous drug or dangerous device from any
person in this state shall, on request, furnish an authorized officer
of the law with all records or other documentation of that sale or
transfer.

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 4166 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4166.  

(a) Any wholesaler that uses the services of any
begin insert third-party logistics provider or end insert carrier, including, but not limited
to, the United States Postal Service or any common carrier, shall
be liable for the security and integrity of any dangerous drugs or
dangerous devices through that begin insert provider or end insert carrier until the drugs
or devices are delivered to the transferee at its board-licensed
premises.

(b) Nothing in this section is intended to affect the liability of
a begin delete wholesaler end delete begin insert wholesaler, third-party logistics provider, end insert or other
distributor for dangerous drugs or dangerous devices after their
delivery to the transferee.

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 4167 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4167.  

A wholesaler begin insert or third-party logistics provider end insert shall not
obtain, by purchase or otherwise, any dangerous drugs or dangerous
devices that it cannot maintain, in a secure manner, on the premises
licensed by the board.

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 4168 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4168.  

A county or municipality begin delete may end delete begin insert shall end insert not issue a business
license for any establishment that requires a wholesaler begin insert or
third-party logistics provider end insert license unless the establishment
possesses a current wholesaler begin insert or third-party logistics provider end insert
license issued by the board. For purposes of this section, an
“establishment” is the licensee’s physical location in California.

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 4169 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4169.  

(a) A person or entity begin delete may end delete begin insert shall end insert not do any of the
following:

(1) Purchase, trade, sell, begin insert warehouse, distribute, end insert or transfer
dangerous drugs or dangerous devices at wholesale with a person
or entity that is not licensed with the board as a begin delete wholesaler end delete
begin insert wholesaler, third-party logistics provider, end insert or pharmacy.

(2) Purchase, trade, sell, or transfer dangerous drugs that the
person knew or reasonably should have known were adulterated,
as set forth in Article 2 (commencing with Section 111250) of
Chapter 6 of Part 5 of Division 104 of the Health and Safety Code.

(3) Purchase, trade, sell, or transfer dangerous drugs that the
person knew or reasonably should have known were misbranded,
as defined in Section 111335 of the Health and Safety Code.

(4) Purchase, trade, sell, or transfer dangerous drugs or
dangerous devices after the beyond use date on the label.

(5) Fail to maintain records of the acquisition or disposition of
dangerous drugs or dangerous devices for at least three years.

(b) Notwithstanding any other begin delete provision of end delete law, a violation of
this section begin delete or of subdivision (c) or (d) of Section 4163 end delete may subject
the person or entity that has committed the violation to a fine not
to exceed the amount specified in Section 125.9 for each
occurrence, pursuant to a citation issued by the board.

(c) Amounts due from any person under this section shall be
offset as provided under Section 12419.5 of the Government Code.
Amounts received by the board under this section shall be deposited
into the Pharmacy Board Contingent Fund.

(d) This section shall not apply to a pharmaceutical manufacturer
licensed by the Food and Drug Administration or by the State
Department of Public Health.

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 4201 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4201.  

(a) Each application to conduct a pharmacy, wholesaler,
begin insert third-party logistics provider, end insert or veterinary food-animal drug
retailer, shall be made on a form furnished by the board, and shall
state the name, address, usual occupation, and professional
qualifications, if any, of the applicant. If the applicant is other than
a natural person, the application shall state the information as to
each person beneficially interested therein.

(b) As used in this section, and subject to subdivision (c), the
term “person beneficially interested” means and includes:

(1) If the applicant is a partnership or other unincorporated
association, each partner or member.

(2) If the applicant is a corporation, each of its officers, directors,
and stockholders, provided that no natural person shall be deemed
to be beneficially interested in a nonprofit corporation.

(3) If the applicant is a limited liability company, each officer,
manager, or member.

(c)  begin delete In any case where end delete begin insert If end insert the applicant is a partnership or other
unincorporated association, begin delete is end delete a limited liability company, or begin delete is end delete a
corporation, and begin delete where end delete the number of partners, members, or
stockholders, as the case may be, exceeds five, the application
shall so state, and shall further state the information required by
subdivision (a) as to each of the five partners, members, or
stockholders who own the five largest interests in the applicant
entity. Upon request by the executive officer, the applicant shall
furnish the board with the information required by subdivision (a)
as to partners, members, or stockholders not named in the
application, or shall refer the board to an appropriate source of
that information.

(d) The application shall contain a statement to the effect that
the applicant has not been convicted of a felony and has not
violated any of the provisions of this chapter. If the applicant
cannot make this statement, the application shall contain a
statement of the violation, if any, or reasons which will prevent
the applicant from being able to comply with the requirements
with respect to the statement.

(e) Upon the approval of the application by the board and
payment of the fee required by this chapter for each pharmacy,
wholesaler, begin insert third-party logistics provider, end insert or veterinary food-animal
drug retailer, the executive officer of the board shall issue a license
to conduct a pharmacy, wholesaler, begin insert third-party logistics provider, end insert
or veterinary food-animal drug retailer, if all of the provisions of
this chapter have been complied with.

(f) Notwithstanding any other begin delete provision of end delete law, the pharmacy
license shall authorize the holder to conduct a pharmacy. The
license shall be renewed annually and shall not be transferable.

(g) Notwithstanding any other begin delete provision of end delete law, the begin delete wholesale end delete
begin insert wholesaler end insert license shall authorize the holder to wholesale
dangerous drugs and dangerous devices. The license shall be
renewed annually and shall not be transferable.

begin insert

(h) Notwithstanding any other law, the third-party logistics
provider license shall authorize the holder to provide or coordinate
warehousing, distribution, or other similar services of dangerous
drugs and dangerous devices. The license shall be renewed
annually and shall not be transferable.

end insert begin delete

(h)

end delete

begin insert (i) end insert  Notwithstanding any other begin delete provision of end delete law, the veterinary
food-animal drug retailer license shall authorize the holder begin delete thereof end delete
to conduct a veterinary food-animal drug retailer and to sell and
dispense veterinary food-animal drugs as defined in Section 4042.

begin delete

(i)

end delete

begin insert (j) end insert  For licenses referred to in subdivisions (f), (g), begin insert (h), end insert and begin delete (h), end delete
begin insert (i), end insert any change in the proposed beneficial ownership interest shall
be reported to the board within 30 days thereafter upon a form to
be furnished by the board.

begin delete end delete begin delete

(j) This section shall become operative on July 1, 2001.

end delete begin delete end delete

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 4305.5 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4305.5.  

(a) A person begin delete who has obtained end delete begin insert that is licensed as end insert a
begin delete license to conduct a wholesaler end delete begin insert wholesaler, third-party logistics
provider, end insert or veterinary food-animal drug retailer, shall notify the
board within 30 days of the termination of employment of the
designated representative-in-charge. Failure to notify the board
within the 30-day period shall constitute grounds for disciplinary
action.

(b) A person begin delete who has obtained end delete begin insert that is licensed as end insert a begin delete license to
conduct a wholesaler end delete begin insert wholesaler, third-party logistics provider, end insert
or veterinary food-animal drug retailer, begin delete who end delete begin insert that end insert willfully fails to
notify the board of the termination of employment of the designated
begin delete representative-in-charge, end delete begin insert representative-in-charge at its licensed
place of business, end insert and begin delete who end delete begin insert that end insert continues to operate the begin delete licensee end delete
begin insert place of business end insert in the absence of the designated
representative-in-charge for that begin delete location, end delete begin insert place of business end insert shall
be subject to summary suspension or revocation of begin delete his or her end delete begin insert its end insert
license begin delete to conduct end delete begin insert as end insert a begin delete wholesaler end delete begin insert wholesaler, third-party logistics
provider, end insert or veterinary food-animal drug begin delete retailer. end delete begin insert retailer at that
place of business. end insert

(c) A designated representative-in-charge of a begin delete wholesaler end delete
begin insert wholesaler, third-party logistics provider, end insert or veterinary
food-animal drug retailer, who terminates his or her employment
at the begin delete licensee, end delete begin insert licensed place of business, end insert shall notify the board
within 30 days of the termination of employment. Failure to notify
the board within the 30-day period shall constitute grounds for
disciplinary action.

begin delete end delete begin delete

(d) This section shall become operative on January 1, 2006.

end delete begin delete end delete

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 4312 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4312.  

(a) The board may cancel the license of a wholesaler,
begin insert third-party logistics provider, end insert pharmacy, or veterinary food-animal
drug retailer if the licensed premises remain closed, as defined in
subdivision (e), other than by order of the board. For good cause
shown, the board may cancel a license after a shorter period of
closure. To cancel a license pursuant to this subdivision, the board
shall make a diligent, good faith effort to give notice by personal
service on the licensee. If a written objection is not received within
10 days after personal service is made or a diligent, good faith
effort to give notice by personal service on the licensee has failed,
the board may cancel the license without the necessity of a hearing.
If the licensee files a written objection, the board shall file an
accusation based on the licensee remaining closed. Proceedings
shall be conducted in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code, and the board shall have all the powers granted
in that chapter.

(b)  begin delete In end delete begin insert If end insert the begin delete event that the end delete license of a wholesaler, begin insert third-party
logistics provider, end insert pharmacy, or veterinary food-animal drug
retailer is begin delete cancelled end delete begin insert canceled end insert pursuant to subdivision (a) or revoked
pursuant to Article 19 (commencing with Section 4300), or a
wholesaler, begin insert third-party logistics provider, end insert pharmacy, or veterinary
food-animal drug retailer notifies the board of its intent to remain
closed or to discontinue business, the licensee shall, within 10 days
thereafter, arrange for the transfer of all dangerous drugs and
controlled substances or dangerous devices to another licensee
authorized to possess the dangerous drugs and controlled
substances or dangerous devices. The licensee transferring the
dangerous drugs and controlled substances or dangerous devices
shall immediately confirm in writing to the board that the transfer
has taken place.

(c) If a wholesaler, begin insert third-party logistics provider, end insert pharmacy, or
veterinary food-animal drug retailer fails to comply with
subdivision (b), the board may seek and obtain an order from the
superior court in the county in which the wholesaler, begin insert third-party
logistics provider, end insert pharmacy, or veterinary food-animal drug
retailer is located, authorizing the board to enter the wholesaler,
begin insert third-party logistics provider, end insert pharmacy, or veterinary food-animal
drug retailer and inventory and store, transfer, sell, or arrange for
the sale of, all dangerous drugs and controlled substances and
dangerous devices found in the wholesaler, begin insert third-party logistics
provider, end insert pharmacy, or veterinary food-animal drug retailer.

(d)  begin delete In end delete begin insert If end insert the begin delete event that the end delete board sells or arranges for the sale of
any dangerous drugs, controlled substances, or dangerous devices
pursuant to subdivision (c), the board may retain from the proceeds
of the sale an amount equal to the cost to the board of obtaining
and enforcing an order issued pursuant to subdivision (c), including
the cost of disposing of the dangerous drugs, controlled substances,
or dangerous devices. The remaining proceeds, if any, shall be
returned to the licensee from whose premises the dangerous drugs
or controlled substances or dangerous devices were removed.

(1) The licensee shall be notified of his or her right to the
remaining proceeds by personal service or by certified mail,
postage prepaid.

(2) If a statute or regulation requires the licensee to file with
the board his or her address, and any change of address, the notice
required by this subdivision may be sent by certified mail, postage
prepaid, to the latest address on file with the board and service of
notice in this manner shall be deemed completed on the 10th day
after the mailing.

(3) If the licensee is notified as provided in this subdivision,
and the licensee fails to contact the board for the remaining
proceeds within 30 calendar days after personal service has been
made or service by certified mail, postage prepaid, is deemed
completed, the remaining proceeds shall be deposited by the board
into the Pharmacy Board Contingent Fund. These deposits shall
be deemed to have been received pursuant to Chapter 7
(commencing with Section 1500) of Title 10 of Part 3 of the Code
of Civil Procedure and shall be subject to claim or other disposition
as provided in that chapter.

(e) For the purposes of this section, “closed” means not engaged
in the ordinary activity for which a license has been issued for at
least one day each calendar week during any 120-day period.

(f) Nothing in this section shall be construed as requiring a
pharmacy to be open seven days a week.

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 4331 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

4331.  

(a) A person who is neither a pharmacist nor a
designated representative and who begin delete takes charge end delete begin insert does either end insert of begin delete a
wholesaler or veterinary food-animal drug retailer or who dispenses
a prescription or furnishes dangerous devices end delete begin insert the following, end insert except
as otherwise provided in this begin delete chapter end delete begin insert chapter, end insert is guilty of a
begin delete misdemeanor. end delete begin insert misdemeanor: end insert

begin insert

(1) Takes charge of a wholesaler, third-party logistics provider,
or veterinary food-animal drug retailer.

end insert begin insert

(2) Coordinates the warehousing or distribution of dangerous
drugs or dangerous devices or dispenses a prescription or furnishes
dangerous devices.

end insert

(b) A person begin delete who has obtained end delete begin insert licensed as end insert a begin delete license to conduct
a end delete veterinary food-animal drug retailer begin delete and who end delete begin insert that end insert fails to place
in charge of that veterinary food-animal drug retailer a pharmacist
or designated representative, or any person who, by himself or
herself, or by any other person, permits the dispensing of
prescriptions, except by a pharmacist or designated representative,
or as otherwise provided in this chapter, is guilty of a misdemeanor.

(c) A person begin delete who has obtained end delete begin insert licensed as end insert a begin delete license to conduct
a end delete wholesaler begin delete and who end delete begin insert or third-party logistics provider that end insert fails
to place in charge of that wholesaler begin insert or third-party logistics
provider end insert a pharmacist or designated representative, or any person
who, by himself or herself, or by any other person, permits the
furnishing of dangerous drugs or dangerous devices, except by a
pharmacist or designated representative, or as otherwise provided
in this chapter, is guilty of a misdemeanor.

begin delete end delete begin delete

(d) This section shall become operative on January 1, 2006.

end delete begin delete end delete

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 4400 of the end insert begin insert Business and Professions Code end insert begin insert ,
as added by Section 9 of Chapter 565 of the Statutes of 2013, is
amended to read: end insert

4400.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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begin insert SEC. 29. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

Section 4200.3 of the Business and Professions
Code is amended to read:

4200.3.  

(a) The examination process shall be regularly
reviewed pursuant to Section 139.

(b) The examination process shall meet the standards and
guidelines set forth in the Standards for Educational and
Psychological Testing and the Federal Uniform Guidelines for
Employee Selection Procedures. The board shall work with the
Office of Professional Examination Services of the department or
with an equivalent organization who shall certify at minimum once
every five years that the examination process meets these national
testing standards. If the department determines that the examination
process fails to meet these standards, the board shall terminate its
use of the North American Pharmacy Licensure Examination and
shall use only the written and practical examination developed by
the board.

(c) The examination shall meet the mandates of subdivision (a)
of Section 12944 of the Government Code.

(d) The board shall work with the Office of Professional
Examination Services or with an equivalent organization to develop
the state jurisprudence examination to ensure that applicants for
licensure are evaluated on their knowledge of applicable state laws
and regulations.

(e) The board shall annually publish the pass and fail rates for
the pharmacist’s licensure examination administered pursuant to
Section 4200, including a comparison of historical pass and fail
rates before utilization of the North American Pharmacist Licensure
Examination.

(f) The board shall report to the appropriate policy committees
of the Legislature and the department, as part of its next scheduled
review, the pass rates of applicants who sat for the national
examination compared with the pass rates of applicants who sat
for the prior state examination. This report shall be a component
of the evaluation of the examination process that is based on
psychometrically sound principles for establishing minimum
qualifications and levels of competency.

end delete