Amended in Assembly May 5, 2014

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

An act to amend Sections 4022.5, 4040.5, 4043, begin delete 4045, end delete 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, begin delete and end delete to amend the heading of Article 11 (commencing with Section 4160) of Chapter 9 of Division 2 of, begin insert to add Section 4025.2 to, and to repeal and add Section 4045 of, end insert the Business and Professions Code, relating to pharmacy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2605, as amended, Bonilla. Pharmacy: third-party logistics providers.

(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. begin insert Existing law, the federal Drug Supply Chain Security Act, prohibits a third-party logistics provider, as defined, from conducting any activities in a state unless each facility of the provider is licensed by the state from which drugs are distributed by the provider in accordance with regulations to be promulgated by the Secretary of the United States Department of Health and Human Services. end insert

This bill would begin delete delete from end delete begin insert revise end insert the definition of “third-party logistics provider” or “reverse third-party logistics provider” begin delete the requirement that the entity be a licensed wholesaler end delete begin insert to conform to federal law, as specified end insert , 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.

(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.

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.

(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.

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

(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.

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: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

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

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 wholesaler, third-party
logistics provider, or veterinary food-animal drug retailer and
approved by the board as the supervisor or manager responsible
for ensuring the compliance of the wholesaler, third-party logistics
provider, or veterinary food-animal drug retailer 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 4025.2 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4025.2. end insert   

“Facility manager” means the individual who is
designated by a third-party logistics provider to oversee the facility
of the third-party logistics provider and who, in conjunction with
the quality assurance department of the third-party logistics
provider, is responsible for ensuring the third-party logistics
provider’s compliance with state and federal laws and the
third-party logistics provider’s customer specifications.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

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

4040.5.  

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

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

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

4043.  

“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

SEC. 4.  

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

4045.  

“Third-party logistics provider” or “reverse third-party
logistic provider” means an entity 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 delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 4045 of the end insert begin insert Business and Professions Code end insert begin insert is
repealed. end insert

begin delete

4045.  

“Third-party logistics provider” or “reverse third-party
logistic provider” means 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. 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. 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. 6. end insert   

end insert

begin insert Section 4045 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4045. end insert   

“Third-party logistics provider” or “reverse third-party
logistic provider” means an entity that provides or coordinates
warehousing or other logistics services of a product in interstate
commerce on behalf of a manufacturer, wholesaler, or dispenser
of a product, but does not take ownership of the product, nor have
responsibility to direct the sale or disposition of the product.

end insert

begin delete SEC. 5. end delete
begin insert SEC. 7. end insert   

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

4053.  

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

(b) An individual who is at least 18 years of age 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,
third-party logistics provider, 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 shall not issue a license as a designated
representative until the applicant provides proof of completion of
the required training to the board.

(c) The wholesaler, third-party logistics provider, or veterinary
food-animal drug retailer 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 delete SEC. 6. end delete
begin insert SEC. 8. end insert   

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

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, third-party logistics provider, 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 delete SEC. 7. end delete
begin insert SEC. 9. end insert   

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

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, third-party logistics provider, 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,
third-party logistics provider, 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 delete SEC. 8. end delete
begin insert SEC. 10. end insert   

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

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
wholesaler, third-party logistics provider, or veterinary food-animal
drug retailer upon application by the wholesaler, third-party
logistics provider, 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 delete SEC. 9. end delete
begin insert SEC. 11. end insert   

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

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 retailer, wholesaler, third-party
logistics provider, or 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 delete SEC. 10. end delete
begin insert SEC. 12. end insert   

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

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 or third-party logistics
provider who has obtained a license pursuant to this chapter or
through a selling or distribution outlet that is licensed as a
wholesaler or third-party logistics provider 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 delete SEC. 11. end delete
begin insert SEC. 13. end insert   

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

4126.  

(a) Notwithstanding any other 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 license, or both a pharmacy and
a third-party logistics provider license.

(e) Neither a covered entity nor a pharmacy shall be required
to obtain a license as a wholesaler or a third-party logistics provider
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 delete SEC. 12. end delete
begin insert SEC. 14. end insert   

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

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), a license is not required if
the nonresident distributor sells or distributes solely through a
person who is licensed as a wholesaler or third-party logistics
provider 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 delete SEC. 13. end delete
begin insert SEC. 15. end insert   

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

 

Article 11.  Wholesalers, Third-Party Logistics Providers, and
Manufacturers

 

begin delete SEC. 14. end delete
begin insert SEC. 16. end insert   

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

4160.  

(a) A person shall not act as a wholesaler or third-party
logistics provider 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 wholesaler or third-party logistics provider.
Each license shall be renewed annually and shall not be
transferable.

(d) Every wholesaler or third-party logistics provider shall be
supervised or managed by a designated representative-in-charge.
The designated representative-in-charge shall be responsible for
the compliance of the wholesaler or third-party logistics provider
with state and federal laws governing wholesalers and third-party
logistics providers. As part of its initial application for a license,
and for each renewal, each wholesaler or third-party logistics
provider 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 or third-party
logistics provider license without identification of an approved
designated representative-in-charge for the wholesaler or
third-party logistics provider.

(e) A wholesaler or third-party logistics provider 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
or third-party logistics provider 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 delete SEC. 15. end delete
begin insert SEC. 17. end insert   

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

4161.  

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

(b) A nonresident wholesaler or nonresident third-party logistics
provider shall be licensed by the board prior to shipping, selling,
mailing, warehousing, distributing, or delivering dangerous drugs
or dangerous devices to a site located in this state or selling,
brokering, warehousing, 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 or nonresident
third-party logistics provider from or through which dangerous
drugs or dangerous devices are shipped, sold, mailed, warehoused,
distributed, or delivered to a site located in this state or sold,
brokered, warehoused, 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 wholesaler or a nonresident third-party logistics
provider, on renewal of a nonresident wholesaler or nonresident
third-party logistics provider 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 or nonresident third-party logistics
provider 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 or nonresident third-party logistics
provider shall maintain records of dangerous drugs and dangerous
devices sold, traded, transferred, warehoused, or distributed to
persons in this state or within this state, so that the records are in
a readily retrievable form.

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

(i) The board shall not issue or renew a nonresident wholesaler
or nonresident third-party logistics provider license until the
nonresident wholesaler or nonresident third-party logistics provider
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 compliance of the nonresident wholesaler or nonresident
third-party logistics provider with state and federal laws governing
wholesalers and third-party logistics providers. A nonresident
wholesaler or nonresident third-party logistics provider 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 delete SEC. 16. end delete
begin insert SEC. 18. end insert   

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

4162.  

(a) (1) An applicant for the issuance or renewal of a
wholesaler or third-party logistics provider license, which is not
government owned and operated, 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
or third-party logistics provider 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 wholesaler or third-party logistics
provider, 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 delete SEC. 17. end delete
begin insert SEC. 19. end insert   

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

4162.5.  

(a) (1) An applicant for the issuance or renewal of a
nonresident wholesaler or begin insert nonresident end insert third-party logistics provider
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 or begin insert the nonresident end insert third-party logistics provider is ten
million dollars ($10,000,000) or less, in which case 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 or begin insert nonresident end insert third-party logistics
provider 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 wholesaler or begin insert a nonresident end insert
third-party logistics provider, 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 delete SEC. 18. end delete
begin insert SEC. 20. end insert   

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

4164.  

(a) A wholesaler or third-party logistics provider licensed
by the board that distributes controlled substances, dangerous
drugs, or dangerous devices within or into this state shall report
to the board all distributions 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.

(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 SEC. 19. end delete
begin insert SEC. 21. end insert   

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

4165.  

A wholesaler or third-party logistics provider 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 delete SEC. 20. end delete
begin insert SEC. 22. end insert   

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

4166.  

(a) Any wholesaler that uses the services of any
third-party logistics provider or 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 provider or 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 wholesaler, third-party logistics provider, or other distributor for
dangerous drugs or dangerous devices after their delivery to the
transferee.

begin delete SEC. 21. end delete
begin insert SEC. 23. end insert   

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

4167.  

A wholesaler or third-party logistics provider 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 delete SEC. 22. end delete
begin insert SEC. 24. end insert   

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

4168.  

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

begin delete SEC. 23. end delete
begin insert SEC. 25. end insert   

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

4169.  

(a) A person or entity shall not do any of the following:

(1) Purchase, trade, sell, warehouse, distribute, or transfer
dangerous drugs or dangerous devices at wholesale with a person
or entity that is not licensed with the board as a wholesaler,
third-party logistics provider, 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 law, a violation of this section
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 delete SEC. 24. end delete
begin insert SEC. 26. end insert   

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

4201.  

(a) Each application to conduct a pharmacy, wholesaler,
third-party logistics provider, 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) If the applicant is a partnership or other unincorporated
association, a limited liability company, or a corporation, and 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, third-party logistics provider, or veterinary food-animal
drug retailer, the executive officer of the board shall issue a license
to conduct a pharmacy, wholesaler, third-party logistics provider,
or veterinary food-animal drug retailer, if all of the provisions of
this chapter have been complied with.

(f) Notwithstanding any other 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 law, the wholesaler license shall
authorize the holder to wholesale dangerous drugs and dangerous
devices. The license shall be renewed annually and shall not be
transferable.

(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.

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

(j) For licenses referred to in subdivisions (f), (g), (h), and (i),
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 SEC. 25. end delete
begin insert SEC. 27. end insert   

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

4305.5.  

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

(c) A designated representative-in-charge of a wholesaler,
third-party logistics provider, or veterinary food-animal drug
retailer, who terminates his or her employment at the licensed
place of business, 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 SEC. 26. end delete
begin insert SEC. 28. end insert   

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

4312.  

(a) The board may cancel the license of a wholesaler,
third-party logistics provider, 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) If the license of a wholesaler, third-party logistics provider,
pharmacy, or veterinary food-animal drug retailer is canceled
pursuant to subdivision (a) or revoked pursuant to Article 19
(commencing with Section 4300), or a wholesaler, third-party
logistics provider, 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, third-party logistics provider, 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, third-party
logistics provider, pharmacy, or veterinary food-animal drug
retailer is located, authorizing the board to enter the wholesaler,
third-party logistics provider, 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, third-party logistics
provider, pharmacy, or veterinary food-animal drug retailer.

(d) If the 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 delete SEC. 27. end delete
begin insert SEC. 29. end insert   

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

4331.  

(a) A person who is neither a pharmacist nor a
designated representative and who does either of the following,
except as otherwise provided in this chapter, is guilty of a
misdemeanor:

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

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

(b) A person licensed as a veterinary food-animal drug retailer
that 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 licensed as a wholesaler or third-party logistics
provider that fails to place in charge of that wholesaler or
third-party logistics provider 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 SEC. 28. end delete
begin insert SEC. 30. end insert   

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

4400.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin delete SEC. 29. end delete
begin insert SEC. 31. end 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.