SB 506,
as amended, Hill. begin deleteEphedrine: retail sale. end deletebegin insertRailroad Tank Car Hazardous Materials Safety Fund.end insert
Existing law establishes the Railroad Accident Prevention and Immediate Deployment Force in the California Environmental Protection Agency and designates the force as being responsible for providing immediate onsite response capability in the event of a large-scale release of toxic materials resulting from a surface transportation accident. Existing law requires the agency to develop a state railroad accident prevention and immediate deployment plan, in consultation with specified state entities, other potentially affected state, local, or federal agencies, and affected businesses, and designates the force as being responsible for implementing the plan, acting cooperatively and in concert with existing local emergency response units. The plan is to be a comprehensive set of policies and directions that every potentially affected state agency and business is required to follow if there is a railroad accident to minimize the potential damage to the public health and safety, property, and the environment that might result from accidents involving railroad activities in the state.
end insertbegin insertThis bill would impose a fee in an unspecified amount upon every owner of hazardous material at the time that hazardous material is transported on rail by a tank car in this state. The bill would require a railroad to collect the fee from the owner of the hazardous material and to pay the fee to the State Board of Equalization. The bill would also require every person who operates a railroad that transports hazardous materials by tank car to register with the board and to remit the fees to the board pursuant to the Fee Collection Procedures Law. The bill would create the Railroad Tank Car Hazardous Materials Safety Fund in the State Treasury and would require that all revenues, interest, penalties, and other amounts collected pursuant to the bill’s requirements be deposited into the fund, less refunds and reimbursement to the board for expenses incurred in the administration and collection of the railroad tank car hazardous material fee. The bill would require that all moneys in the fund, upon appropriation by the Legislature, be used by the Department of Toxic Substances Control to pay for planning, developing, and maintaining a capability for emergency response to railroad accidents involving tank cars carrying hazardous materials, including the risks of explosions and fires, and planning, developing, and maintaining a capability for emergency response to releases of hazardous materials from tank cars, including reducing the harmful effects of exposure of those hazardous materials to humans and the environment.
end insertbegin insertThe bill, upon appropriation by the Legislature, would require moneys from the fund be available to the board to pay for the board’s administrative costs associated with implementation of the railroad tank car hazardous material fee, which would be advanced from the General Fund, upon appropriation by the Legislature, subject to repayment once the fees are collected.
end insertbegin insertThe Fee Collection Procedures Law makes a violation of any provision of the law, or of certain requirements imposed by the board pursuant to the law, a crime.
end insertbegin insertBy expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.
end insertbegin insertThe 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 insertbegin insertThis bill would provide that no reimbursement is required by this act for a specified reason.
end insertExisting law classifies controlled substances into 5 schedules, with the most restrictive limitations placed on controlled substances classified in Schedule I, and the least restrictive limitations placed on controlled substances classified in Schedule V. A controlled substance in any of the schedules may be possessed or dispensed only upon a lawful prescription, as specified. Existing law does not classify ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine within any of these 5 schedules, but provides that it is a crime, punishable as specified, for a person in this state who engages in specified transactions involving those drugs to fail to submit a report to the Department of Justice of all of those transactions, or to fail to submit an application to, and obtain a permit for the conduct of that business from, the Department of Justice, as specified. Existing law prohibits the sale of more than 3 packages or 9 grams of a nonprescription product containing ephedrine or the other drugs, as specified.
end deleteThis bill would instead provide that it is a misdemeanor, punishable as specified, for a retail distributor, except pursuant to a valid prescription from a licensed practitioner with prescriptive authority, to sell or distribute to a person specified amounts of nonprescription products containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine within specified time limits, to sell or distribute any of those substances to a person whose information has generated an alert, or, except under specified conditions, to sell or distribute to a purchaser a nonprescription product containing any amount of those substances. The bill would contain provisions requiring the secure storage and monitoring of products containing any amount of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine, as specified. By changing the definition of a crime, this bill would impose a state-mandated local program.
end deleteThe bill would require the Department of Justice to enter into a memorandum of understanding (MOU) with the National Association of Drug Diversion Investigators (NADDI) and the vendor of the system governing access and oversight of the California transaction records regarding the transaction records, as specified, including requiring that the system be capable of interacting with purchase data from other states. The bill would require the competitive bid to be completed within 6 months of the effective date of the bill and would require the MOU to be completed within 45 days of selecting the vendor. The bill would also require, following the execution of the memorandum of understanding, retail distributors to transmit, on and after August 1, 2015, sale information to the system for purposes of determining whether the sale would violate these provisions. The bill would prohibit use of the information in the system for any purpose other than to meet the requirements of, or comply with, this act or a certain federal act, as specified. The bill would require that the system be available to the department and state law enforcement at no charge and would prohibit the Department of Justice or any other state agency from bearing any cost for the development, installation, or maintenance of the system. These provisions would remain in effect only until January 1, 2020. The bill would also specify legislative findings and intent.
end deleteThe 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 deleteThis bill would provide that no reimbursement is required by this act for a specified reason.
end deleteVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
begin insertArticle 11 (commencing with Section 7730) is
2added to Chapter 1 of Division 4 of the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
3read:end insert
4
For purposes of this article, the following terms have
9the following meanings:
10(a) “Board” means the State Board of Equalization.
11(b) “Department” means the Department of Toxic Substances
12Control.
13(c) “Fund” means the Railroad Tank Car Hazardous Materials
14Safety Fund established pursuant to Section 7744.
15(d) “Hazardous material” means a material that the United
16States Department of Transportation has designated as a hazardous
P5 1material for purposes of transportation in Part 172 of Title 49 of
2the Code of Federal Regulations.
3(e) “Owner” means the person who has the ultimate control
4over, and the right to use or sell, the hazardous material being
5shipped. There is a rebuttable presumption that the shipper,
6consignor, or consignee of the hazardous material is the owner of
7the hazardous material. This presumption may be overcome by
8showing that ownership of the hazardous material rests with
9someone other than the shipper, consignor, or consignee. Evidence
10to rebut the presumption may include, but is not limited to,
11documentation, including a bill of lading, shipping document, bill
12of sale, or other medium, that shows the ownership of the
13hazardous material rests in a person other than the shipper,
14consignor, or consignee.
15(f) “Person” means an individual, trust, firm, joint stock
16company, business concern, corporation, including, but not limited
17to, a government corporation, partnership, limited liability
18
company, and association. “Person” also includes any city, county,
19city and county, district, commission, the state or any department,
20agency or political subdivision thereof, and the United States and
21agencies and instrumentalities, to the extent permitted by law.
22(g) “Railroad” has the same meaning as defined in Section 229.
23(h) “Tank car” means a railroad car or rolling stock designed
24to transport liquid and gaseous commodities, and includes those
25railroad cars subject to the requirements of Part 179 (commencing
26with Section 179.1) of Title 49 of the Code of Federal Regulations,
27or a successor set of regulations adopted by the United States
28Department of Transportation.
(a) A railroad tank car hazardous material fee of ____
30dollars ($____) is imposed on every owner of hazardous material
31at the time that hazardous material is transported on rail by a tank
32car in this state. The railroad tank car hazardous material fee
33shall be based on each loaded tank car as described in subdivision
34(b).
35(b) (1) The railroad tank car hazardous material fee shall be
36imposed on a person owning hazardous material at the time that
37hazardous material is transported by loaded tank car. The fee is
38based on each loaded tank car.
39(A) If the loaded tank car enters the state from outside this state,
40the fee is imposed on the owner of the hazardous
material at the
P6 1time the loaded tank car enters this state. The railroad shall collect
2the fee from the owner of the hazardous material and shall pay
3the fee to the board.
4(B) If the tank car is loaded within this state, the fee is imposed
5upon the loading of hazardous material into the tank car for
6transport in or through this state. The railroad shall collect the
7fee from the owner of the hazardous material at the time the tank
8car is loaded and shall pay the fee to the board.
9(2) The fees shall be paid to the board by the railroad at the
10time the return is required to be filed, as specified in Section 7738,
11based on the number of loaded hazardous material tank cars
12transported within the state.
13(3) Any fees collected from an owner of hazardous materials
14pursuant to this section that have not been remitted to the
board
15shall be deemed a debt owed to the state by the person required
16to collect and remit fees.
17(4) The owner of the hazardous material is liable for the fee
18until it has been paid to the board, except that payment to a
19railroad registered under this article is sufficient to relieve the
20owner from further liability for the fee.
Every person who operates a railroad that transports
22hazardous materials by tank car shall register with the board
23pursuant to Section 55021 of the Revenue and Taxation Code.
The railroad tank car hazardous material fee imposed
25pursuant to Section 7732 shall be administered and collected by
26the board in accordance with the Fee Collection Procedures Law
27(Part 30 (commencing with Section 55001) of Division 2 of the
28Revenue and Taxation Code). For purposes of this section, the
29references in the Fee Collection Procedures Law to “fee” shall
30include the railroad tank car hazardous material fee imposed by
31this article, and references to “feepayer” shall include a person
32required to pay the fee imposed by this article.
The return required to be filed pursuant to Section 55040
34of the Revenue and Taxation Code shall be prepared and filed by
35the person required to register with the board, using electronic
36media, in the form prescribed by the board containing that
37information the board deems necessary or appropriate for the
38proper administration of this article and the Fee Collection
39Procedures Law. The return shall be filed on or before the last
40day of the calendar month following the calendar quarter to which
P7 1it relates, together with a remittance payable to the board for the
2fee amount due for that period. Returns shall be authenticated in
3a form or pursuant to methods as may be prescribed by the board.
Notwithstanding the petition for redetermination and
5claim for refund provisions of the Fee Collection Procedures Law
6(Article 3 (commencing with Section 55081) of Chapter 3 of, and
7Article 1 (commencing with Section 55221) of Chapter 5 of, Part
830 of Division 2 of the Revenue and Taxation Code), the board
9shall not:
10(a) Accept or consider a petition for redetermination of fees
11determined under this article if the petition is founded upon the
12grounds that the tank car content is or is not a hazardous material.
13The board shall forward to the department any appeal of a
14determination that is based on the grounds that the tank car content
15is or is not a hazardous material.
16(b) Accept or consider a claim
for refund of fees paid pursuant
17to this chapter if the claim is founded upon the grounds that the
18tank car content is or is not a hazardous material. The board shall
19forward to the department any claim for refund that is based on
20the grounds that the tank car content is or is not a hazardous
21material.
(a) The board may prescribe, adopt, and enforce
23regulations relating to the administration and enforcement of this
24article.
25(b) The board may prescribe, adopt, and enforce any emergency
26regulations, as necessary, to implement this article. Any emergency
27regulation prescribed, adopted, or enforced pursuant to this article
28shall be adopted pursuant to Chapter 3.5 (commencing with Section
2911340) of Part 1 of Division 3 of Title 2 of the Government Code,
30and, for purposes of that article, including Section 11349.6 of the
31Government Code, the adoption of the regulation is an emergency
32and shall be considered by the Office of Administrative Law as
33necessary for the immediate preservation of the public peace,
34health and safety, and general
welfare.
(a) The Railroad Tank Car Hazardous Materials Safety
36Fund is hereby created in the State Treasury.
37(b) All revenues, interest, penalties, and other amounts collected
38pursuant to this article shall be deposited into the fund, less refunds
39and reimbursement to the board for expenses incurred in the
P8 1administration and collection of the railroad tank car hazardous
2material fee.
3(c) The fund shall be used to reimburse the General Fund for
4any moneys advanced by the General Fund to the fund to pay for
5the board’s administrative costs associated with implementation
6of the railroad tank car hazardous material fee pursuant to this
7article.
8(d) All moneys remaining in the fund after reimbursement of
9the General Fund pursuant to subdivision (b) shall, upon
10appropriation by the Legislature, be used by the department to
11pay for the following purposes related to the transportation of
12hazardous materials:
13(1) Planning, developing, and maintaining a capability for
14emergency response to railroad accidents involving tank cars
15carrying hazardous materials, including the risks of explosions
16and fires.
17(2) Planning, developing, and maintaining a capability for
18emergency response to releases of hazardous materials from tank
19cars, including reducing the harmful effects of exposure of those
20materials to humans and the environment.
(a) Upon appropriation by the Legislature, moneys
22from the Railroad Tank Car Hazardous Materials Safety Fund
23shall be available to the State Board of Equalization to pay for
24administrative costs associated with implementation of the railroad
25tank car hazardous material fee pursuant to Article 11
26(commencing with Section 7730) of Chapter 1 of Division 4 of the
27Public Utilities Code.
28(b) Upon appropriation by the Legislature, the Director of
29Finance shall transfer moneys to the Railroad Tank Car Hazardous
30Materials Safety Fund
from the General Fund for purposes of
31paying the implementation costs of the State Board of Equalization
32associated with implementation of the railroad tank car hazardous
33material fee.
No reimbursement is required by this act pursuant to
35Section 6 of Article XIII B of the California Constitution because
36the only costs that may be incurred by a local agency or school
37district will be incurred because this act creates a new crime or
38infraction, eliminates a crime or infraction, or changes the penalty
39for a crime or infraction, within the meaning of Section 17556 of
40the Government Code, or changes the definition of a crime within
P9 1the meaning of Section 6 of Article XIII B of the California
2Constitution.
Section 11100 of the Health and Safety Code is
4amended to read:
(a) Any manufacturer, wholesaler, retailer, or other
6person or entity in this state that sells, transfers, or otherwise
7furnishes any of the following substances to any person or entity
8in this state or any other state shall submit a report to the
9Department of Justice of all of those transactions:
10(1) Phenyl-2-propanone.
11(2) Methylamine.
12(3) Ethylamine.
13(4) D-lysergic acid.
14(5) Ergotamine tartrate.
15(6) Diethyl malonate.
16(7) Malonic acid.
17(8) Ethyl malonate.
18(9) Barbituric acid.
19(10) Piperidine.
20(11) N-acetylanthranilic acid.
21(12) Pyrrolidine.
22(13) Phenylacetic acid.
23(14) Anthranilic acid.
24(15) Morpholine.
25(16) Ephedrine.
26(17) Pseudoephedrine.
27(18) Norpseudoephedrine.
28(19) Phenylpropanolamine.
29(20) Propionic anhydride.
30(21) Isosafrole.
31(22) Safrole.
32(23) Piperonal.
33(24) Thionyl chloride.
34(25) Benzyl cyanide.
35(26) Ergonovine maleate.
36(27) N-methylephedrine.
37(28) N-ethylephedrine.
38(29) N-methylpseudoephedrine.
39(30) N-ethylpseudoephedrine.
40(31) Chloroephedrine.
P10 1(32) Chloropseudoephedrine.
2(33) Hydriodic acid.
3(34) Gamma-butyrolactone, including butyrolactone;
4butyrolactone gamma; 4-butyrolactone; 2(3H)-furanone dihydro;
5dihydro-2(3H)-furanone; tetrahydro-2-furanone; 1,2-butanolide;
61,4-butanolide; 4-butanolide; gamma-hydroxybutyric acid lactone;
73-hydroxybutyric acid lactone and 4-hydroxybutanoic acid lactone
8with Chemical Abstracts Service number 96-48-0.
9(35) 1,4-butanediol, including butanediol; butane-1,4-diol;
101,4-butylene glycol; butylene glycol; 1,4-dihydroxybutane;
111,4-tetramethylene glycol; tetramethylene glycol; tetramethylene
121,4-diol with Chemical Abstracts Service number 110-63-4.
13(36) Red phosphorus, including white phosphorus,
14hypophosphorous acid and its salts, ammonium hypophosphite,
15calcium hypophosphite, iron hypophosphite, potassium
16hypophosphite, manganese hypophosphite, magnesium
17hypophosphite, sodium hypophosphite, and phosphorous acid and
18its salts.
19(37) Iodine or tincture of iodine.
20(38) Any of the substances listed by the Department of Justice
21in regulations promulgated
pursuant to subdivision (b).
22(b) The Department of Justice may adopt rules and regulations
23in accordance with Chapter 3.5 (commencing with Section 11340)
24of Part 1 of Division 3 of Title 2 of the Government Code that add
25substances to subdivision (a) if the substance is a precursor to a
26controlled substance and delete substances from subdivision (a).
27However, no regulation adding or deleting a substance shall have
28any effect beyond March 1 of the year following the calendar year
29during which the regulation was adopted.
30(c) (1) (A) Any manufacturer, wholesaler, retailer, or other
31person or entity in this state, prior to selling, transferring, or
32otherwise furnishing any substance specified in subdivision (a) to
33any person or business entity in
this state or any other state, shall
34require (i) a letter of authorization from that person or business
35entity that includes the currently valid business license number or
36federal Drug Enforcement Administration (DEA) registration
37number, the address of the business, and a full description of how
38the substance is to be used, and (ii) proper identification from the
39purchaser. The manufacturer, wholesaler, retailer, or other person
40
or entity in this state shall retain this information in a readily
P11 1available manner for three years. The requirement for a full
2description of how the substance is to be used does not require the
3person or business entity to reveal their chemical processes that
4are typically considered trade secrets and proprietary information.
5(B) For the purposes of this paragraph, “proper identification”
6for in-state or out-of-state purchasers includes two or more of the
7following: federal tax identification number; seller’s permit
8identification number; city or county business license number;
9license issued by the State Department of Public Health;
10registration number issued by the federal Drug Enforcement
11Administration; precursor business permit number issued by the
12Department of Justice; driver’s license; or other identification
13issued
by a state.
14(2) (A) A manufacturer, wholesaler, retailer, or other person
15or entity in this state that exports a substance specified in
16subdivision (a) to a person or business entity located in a foreign
17country shall, on or before the date of exportation, submit to the
18Department of Justice a notification of that transaction. The
19notification shall include the name and quantity of the substance
20to be exported and the name, address, and, if assigned by the
21foreign country or subdivision thereof, business identification
22number of the person or business entity located in a foreign country
23importing the substance.
24(B) The department may authorize the submission of the
25notification on a monthly basis with respect to repeated, regular
26transactions between
an exporter and an importer involving a
27substance specified in subdivision (a), if the department determines
28that a pattern of regular supply of the substance exists between the
29exporter and importer and that the importer has established a record
30of utilization of the substance for lawful purposes.
31(d) (1) A manufacturer, wholesaler, retailer, or other person or
32entity in this state that sells, transfers, or otherwise furnishes a
33substance specified in subdivision (a) to a person or business entity
34in this state or any other state shall, not less than 21 days prior to
35delivery of the substance, submit a report of the transaction, which
36includes the identification information specified in subdivision
37(c), to the Department of Justice. The Department of Justice may
38authorize the submission of the reports on a monthly basis with
39respect
to repeated, regular transactions between the furnisher and
40the recipient involving the substance or substances if the
P12 1Department of Justice determines that a pattern of regular supply
2of the substance or substances exists between the manufacturer,
3wholesaler, retailer, or other person or entity that sells, transfers,
4or otherwise furnishes the substance or substances and the recipient
5of the substance or substances, and the recipient has established a
6record of utilization of the substance or substances for lawful
7purposes.
8(2) The person selling, transferring, or otherwise furnishing a
9substance specified in subdivision (a) shall affix his or her signature
10or otherwise identify himself or herself as a witness to the
11identification of the purchaser or purchasing individual, and shall,
12if a common carrier is used, maintain a manifest of the
delivery
13to the purchaser for three years.
14(e) This section shall not apply to any of the following:
15(1) A pharmacist or other authorized person who sells or
16furnishes a substance upon the prescription of a physician, dentist,
17podiatrist, or veterinarian.
18(2) A physician, dentist, podiatrist, or veterinarian who
19administers or furnishes a substance to his or her patients.
20(3) A manufacturer or wholesaler licensed by the California
21State Board of Pharmacy that sells, transfers, or otherwise furnishes
22a substance to a licensed pharmacy, physician, dentist, podiatrist,
23or veterinarian, or a retail distributor, provided that the
24manufacturer or wholesaler submits
records of any suspicious sales
25or transfers as determined by the Department of Justice.
26(4) An analytical research facility that is registered with the
27federal Drug Enforcement Administration of the United States
28Department of Justice.
29(5) A state-licensed health care facility that administers or
30furnishes a substance to its patients.
31(6) (A) The sale, transfer, furnishing, or receipt of a product
32that contains ephedrine, pseudoephedrine, norpseudoephedrine,
33or phenylpropanolamine and that is lawfully sold, transferred, or
34furnished over the counter without a prescription pursuant to the
35Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.)
36or regulations adopted thereunder. However, this
section shall
37apply to preparations in solid or liquid dosage form, except
38pediatric liquid forms, as defined, containing ephedrine,
39pseudoephedrine, norpseudoephedrine, or phenylpropanolamine
40where the individual transaction involves more than three packages
P13 1or nine grams of ephedrine, pseudoephedrine, norpseudoephedrine,
2or phenylpropanolamine.
3(B) Any ephedrine, pseudoephedrine, norpseudoephedrine, or
4phenylpropanolamine product subsequently removed from
5exemption pursuant to Section 814 of Title 21 of the United States
6Code shall similarly no longer be exempt from any state reporting
7or permitting requirement, unless otherwise reinstated pursuant to
8Section 814(d) of Title 21 of the United States Code as an exempt
9product.
10(7) The sale, transfer, furnishing, or
receipt of a betadine or
11povidone solution with an iodine content not exceeding 1 percent
12in containers of eight ounces or less, or a tincture of iodine not
13exceeding 2 percent in containers of one ounce or less, that is sold
14over the counter.
15(8) The transfer of a substance specified in subdivision (a) for
16purposes of lawful disposal as waste.
17(f) (1) A person specified in subdivision (a) or (d) who does
18not submit a report as required by that subdivision or who
19knowingly submits a report with false or fictitious information
20shall be punished by imprisonment in a county jail not exceeding
21six months, by a fine not exceeding five thousand dollars ($5,000),
22or by both the fine and imprisonment.
23(2) Any person specified in subdivision (a) or (d) who has
24previously been convicted of a violation of paragraph (1) shall,
25upon a subsequent conviction thereof, be punished by
26imprisonment pursuant to subdivision (h) of Section 1170 of the
27Penal Code, or by imprisonment in a county jail not exceeding one
28year, by a fine not exceeding one hundred thousand dollars
29($100,000), or by both the fine and imprisonment.
30(g) (1) Except as otherwise provided in subparagraph (A) of
31paragraph (6) of subdivision (e), it is unlawful for a manufacturer,
32wholesaler, retailer, or other person to sell, transfer, or otherwise
33furnish a substance specified in subdivision (a) to a person under
3418 years of age.
35(2) Except as otherwise provided in subparagraph (A) of
36paragraph
(6) of subdivision (e), it is unlawful for any person under
3718 years of age to possess a substance specified in subdivision (a).
38(3) (A) A first violation of this subdivision is a misdemeanor.
39(B) A person who has previously been convicted of a violation
40of this subdivision shall, upon a subsequent conviction thereof, be
P14 1punished by imprisonment in a county jail not exceeding one year,
2by a fine not exceeding ten thousand dollars ($10,000), or by both
3the fine and imprisonment.
4(h) This section shall remain in effect only until January 1, 2019,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2019, deletes or extends that date.
Section 11100 is added to the Health and Safety Code,
8to read:
(a) Any manufacturer, wholesaler, retailer, or other
10person or entity in this state that sells, transfers, or otherwise
11furnishes any of the following substances to any person or entity
12in this state or any other state shall submit a report to the
13Department of Justice of all of those transactions:
14(1) Phenyl-2-propanone.
15(2) Methylamine.
16(3) Ethylamine.
17(4) D-lysergic acid.
18(5) Ergotamine tartrate.
19(6) Diethyl malonate.
20(7) Malonic acid.
21(8) Ethyl malonate.
22(9) Barbituric acid.
23(10) Piperidine.
24(11) N-acetylanthranilic acid.
25(12) Pyrrolidine.
26(13) Phenylacetic acid.
27(14) Anthranilic acid.
28(15) Morpholine.
29(16) Ephedrine.
30(17) Pseudoephedrine.
31(18) Norpseudoephedrine.
32(19) Phenylpropanolamine.
33(20) Propionic anhydride.
34(21) Isosafrole.
35(22) Safrole.
36(23) Piperonal.
37(24) Thionyl chloride.
38(25) Benzyl cyanide.
39(26) Ergonovine maleate.
40(27) N-methylephedrine.
P15 1(28) N-ethylephedrine.
2(29) N-methylpseudoephedrine.
3(30) N-ethylpseudoephedrine.
4(31) Chloroephedrine.
5(32) Chloropseudoephedrine.
6(33) Hydriodic acid.
7(34) Gamma-butyrolactone, including butyrolactone;
8butyrolactone gamma; 4-butyrolactone; 2(3H)-furanone dihydro;
9dihydro-2(3H)-furanone; tetrahydro-2-furanone; 1,2-butanolide;
101,4-butanolide; 4-butanolide; gamma-hydroxybutyric acid lactone;
113-hydroxybutyric acid lactone and
4-hydroxybutanoic acid lactone
12with Chemical Abstracts Service number 96-48-0.
13(35) 1,4-butanediol, including butanediol; butane-1,4-diol;
141,4-butylene glycol; butylene glycol; 1,4-dihydroxybutane;
151,4-tetramethylene glycol; tetramethylene glycol; tetramethylene
161,4-diol with Chemical Abstracts Service number
110-63-4.
17(36) Red phosphorus, including white phosphorus,
18hypophosphorous acid and its salts, ammonium hypophosphite,
19calcium hypophosphite, iron hypophosphite, potassium
20hypophosphite, manganese hypophosphite, magnesium
21hypophosphite, sodium hypophosphite, and phosphorous acid and
22its salts.
23(37) Iodine or tincture of iodine.
24(38) Any of the substances listed by the Department of Justice
25in regulations promulgated pursuant to subdivision (b).
26(b) The Department of Justice may adopt rules and regulations
27in accordance with Chapter 3.5 (commencing with Section 11340)
28of Part 1 of Division 3 of Title 2 of the Government Code that add
29substances
to subdivision (a) if the substance is a precursor to a
30controlled substance and delete substances from subdivision (a).
31However, no regulation adding or deleting a substance shall have
32any effect beyond March 1 of the year following the calendar year
33during which the regulation was adopted.
34(c) (1) (A) A manufacturer, wholesaler, retailer, or other person
35or entity in this state, prior to selling, transferring, or otherwise
36furnishing a substance specified in subdivision (a) to a person or
37business entity in this state or any other state, shall require (i) a
38letter of authorization from that person or business entity that
39includes the currently valid business license number or federal
40Drug Enforcement Administration (DEA) registration number, the
P16 1address of the business, and a full description of how the
substance
2is to be used, and (ii) proper identification from the purchaser. The
3manufacturer, wholesaler, retailer, or other person or entity in this
4state shall retain this information in a readily available manner for
5three years. The requirement for a full description of how the
6substance is to be used does not require the person or business
7entity to reveal chemical processes that are typically considered
8trade secrets and proprietary information.
9(B) For the purposes of this paragraph, “proper identification”
10for in-state or out-of-state purchasers includes two or more of the
11following: federal tax identification number; seller’s permit
12identification number; city or county business license number;
13license issued by the State Department of Public Health;
14registration number issued by the federal Drug Enforcement
15Administration;
precursor business permit number issued by the
16Bureau of Narcotic Enforcement of the Department of Justice;
17driver’s license; or other identification issued by a state.
18(2) (A) A manufacturer, wholesaler, retailer, or other person
19or entity in this state that exports a substance specified in
20subdivision (a) to a person or business entity located in a foreign
21country shall, on or before the date of exportation, submit to the
22Department of Justice a notification of that transaction. The
23notification shall include the name and quantity of the substance
24to be exported and the name, address, and, if assigned by the
25foreign country or subdivision thereof, business identification
26number of the person or business entity located in a foreign country
27importing the substance.
28(B) The department may authorize the submission of the
29notification on a monthly basis with respect to repeated, regular
30transactions between an exporter and an importer involving a
31substance specified in subdivision (a), if the department determines
32that a pattern of regular supply of the substance exists between the
33exporter and importer and that the importer has established a record
34of utilization of the substance for lawful purposes.
35(d) (1) A manufacturer, wholesaler, retailer, or other person or
36entity in this state that sells, transfers, or otherwise furnishes a
37substance specified in subdivision (a) to a person or business entity
38in this state or any other state shall, not less than 21 days prior to
39delivery of the substance, submit a report of the transaction, which
40includes the identification information
specified in subdivision
P17 1(c), to the Department of Justice. The Department of Justice may
2authorize the submission of the reports on a monthly basis with
3respect to repeated, regular transactions between the furnisher and
4the recipient involving the substance or substances if the
5Department of Justice determines that a pattern of regular supply
6of the substance or substances exists between the manufacturer,
7wholesaler, retailer, or other person or entity that sells, transfers,
8or otherwise furnishes the substance or substances and the recipient
9of the substance or substances, and the recipient has established a
10record of utilization of the substance or substances for lawful
11purposes.
12(2) The person selling, transferring, or otherwise furnishing a
13substance specified in subdivision (a) shall affix his or her signature
14or otherwise
identify himself or herself as a witness to the
15identification of the purchaser or purchasing individual, and shall,
16if a common carrier is used, maintain a manifest of the delivery
17to the purchaser for three years.
18(e) This section shall not apply to any of the following:
19(1) A pharmacist or other authorized person who sells or
20furnishes a substance upon the prescription of a physician, dentist,
21podiatrist, or veterinarian.
22(2) A physician, dentist, podiatrist, or veterinarian who
23administers or furnishes a substance to his or her patients.
24(3) A manufacturer or wholesaler licensed by the California
25State Board of Pharmacy that sells, transfers, or otherwise
furnishes
26a substance to a licensed pharmacy, physician, dentist, podiatrist,
27or veterinarian, or a retail distributor, provided that the
28manufacturer or wholesaler submits records of any suspicious sales
29or transfers as determined by the Department of Justice.
30(4) An analytical research facility that is registered with the
31federal Drug Enforcement Administration of the United States
32Department of Justice.
33(5) A state-licensed health care facility that administers or
34furnishes a substance to its patients.
35(6) (A) The sale, transfer, furnishing, or receipt of a product
36that contains ephedrine, pseudoephedrine, norpseudoephedrine,
37or phenylpropanolamine and that is lawfully sold, transferred, or
38furnished
over the counter without a prescription pursuant to the
39Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.)
40or regulations adopted thereunder. However, this section shall
P18 1apply to preparations in solid or liquid dosage form, except
2pediatric liquid forms, as defined, containing ephedrine,
3pseudoephedrine, norpseudoephedrine, or phenylpropanolamine
4where the individual transaction involves more than three packages
5or nine grams of ephedrine, pseudoephedrine, norpseudoephedrine,
6or phenylpropanolamine.
7(B) An ephedrine, pseudoephedrine, norpseudoephedrine, or
8phenylpropanolamine product subsequently removed from
9exemption pursuant to Section 814 of Title 21 of the United States
10Code shall similarly no longer be exempt from state reporting or
11permitting requirements, unless otherwise reinstated pursuant to
12Section 814(d) of
Title 21 of the United States Code as an exempt
13product.
14(7) The sale, transfer, furnishing, or receipt of a betadine or
15povidone solution with an iodine content not exceeding 1 percent
16in containers of eight ounces or less, or a tincture of iodine not
17exceeding 2 percent in containers of one ounce or less, that is sold
18over the counter.
19(8) Transfer of a substance specified in subdivision (a) for
20purposes of lawful disposal as waste.
21(f) (1) A person specified in subdivision (a) or (d) who does
22not submit a report as required by that subdivision or who
23knowingly submits a report with false or fictitious information
24
shall be punished by imprisonment in a county jail not exceeding
25six months, by a fine not exceeding five thousand dollars ($5,000),
26or by both the fine and imprisonment.
27(2) A person specified in subdivision (a) or (d) who has
28previously been convicted of a violation of paragraph (1) shall,
29upon a subsequent conviction thereof, be punished by
30imprisonment pursuant to subdivision (h) of Section 1170 of the
31Penal Code, or by imprisonment in a county jail not exceeding one
32year, by a fine not exceeding one hundred thousand dollars
33($100,000), or by both the fine and imprisonment.
34(g) (1) Except as otherwise provided in subparagraph (A) of
35paragraph (6) of subdivision (e), it is unlawful for a manufacturer,
36wholesaler, retailer, or other person to sell,
transfer, or otherwise
37furnish a substance specified in subdivision (a) to a person under
3818 years of age.
P19 1(2) Except as otherwise provided in subparagraph (A) of
2paragraph (6) of subdivision (e), it is unlawful for a person under
318 years of age to possess a substance specified in subdivision (a).
4(3) Notwithstanding any other law, it is unlawful for a retail
5distributor to (A) sell in a single transaction more than three
6packages of a product that he or she knows to contain ephedrine,
7pseudoephedrine, norpseudoephedrine, or phenylpropanolamine,
8or (B) knowingly sell more than nine grams of ephedrine,
9pseudoephedrine, norpseudoephedrine, or phenylpropanolamine,
10other than pediatric liquids as defined. Except as otherwise
11provided in this section, the three package per
transaction limitation
12or nine gram per transaction limitation imposed by this paragraph
13shall apply to any product that is lawfully sold, transferred, or
14furnished over the counter without a prescription pursuant to the
15Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et
16seq.), or regulations adopted thereunder, unless exempted from
17the requirements of the federal Controlled Substances Act (21
18U.S.C. Sec. 801 et seq.) by the federal Drug Enforcement
19Administration pursuant to Section 814 of Title 21 of the United
20States Code.
21(4) (A) A first violation of this subdivision is a misdemeanor.
22(B) A person who has previously been convicted of a violation
23of this subdivision shall, upon a subsequent conviction thereof, be
24punished by imprisonment in a
county jail not exceeding one year,
25by a fine not exceeding ten thousand dollars ($10,000), or by both
26the fine and imprisonment.
27(h) For the purposes of this article, the following terms have
28the following meanings:
29(1) “Drug store” is an entity described in Code 5912 of the
30Standard Industrial Classification (SIC) Manual published by the
31United States Office of Management and Budget, 1987 edition.
32(2) “General merchandise store” is an entity described in Codes
335311 to 5399, inclusive, and Code 5499 of the Standard Industrial
34Classification (SIC) Manual published by the United States Office
35of Management and Budget, 1987 edition.
36(3) “Grocery store” is an
entity described in Code 5411 of the
37Standard Industrial Classification (SIC) Manual published by the
38United States Office of Management and Budget, 1987 edition.
39(4) “Pediatric liquid” means a nonencapsulated liquid whose
40unit measure according to product labeling is stated in milligrams,
P20 1ounces, or other similar measure. In no instance shall the dosage
2units exceed 15 milligrams of phenylpropanolamine or
3pseudoephedrine per five milliliters of liquid product, except for
4liquid products primarily intended for administration to children
5under two years of age for which the recommended dosage unit
6does not exceed two milliliters and the total package content does
7not exceed one fluid ounce.
8(5) “Retail distributor” means a grocery store, general
9merchandise store, drugstore, or
other related entity, the activities
10of which, as a distributor of ephedrine, pseudoephedrine,
11norpseudoephedrine, or phenylpropanolamine products, are limited
12exclusively to the sale of ephedrine, pseudoephedrine,
13norpseudoephedrine, or phenylpropanolamine products for personal
14use both in number of sales and volume of sales, either directly to
15walk-in customers or in face-to-face transactions by direct sales.
16“Retail distributor” includes an entity that makes a direct sale, but
17
does not include the parent company of that entity if the company
18is not involved in direct sales regulated by this article.
19(6) “Sale for personal use” means the sale, in a single
20transaction, to an individual customer for a legitimate medical use
21of a product containing ephedrine, pseudoephedrine,
22norpseudoephedrine, or phenylpropanolamine in dosages at or
23below that specified in paragraph (3) of subdivision (g). “Sale for
24personal use” also includes the sale of those products to employers
25to be dispensed to employees from first aid kits or medicine chests.
26(i) It is the intent of the Legislature that this section shall
27preempt all local ordinances or regulations governing the sale by
28a retail distributor of over-the-counter products containing
29ephedrine,
pseudoephedrine, norpseudoephedrine, or
30phenylpropanolamine.
31(j) This section shall become operative on January 1, 2019.
Section 11100.02 is added to the Health and Safety
33Code, to read:
(a) Notwithstanding any other law, it is unlawful
35for a retail distributor to knowingly do any of the following, except
36pursuant to a valid prescription from a licensed practitioner with
37prescriptive authority:
38(1) To sell or distribute to the same purchaser within a 30-day
39period more than 9 grams, or within a day more than 3.6 grams,
40of ephedrine base, pseudoephedrine base, norpseudoephedrine
P21 1base, or phenylpropanolamine base contained in a product that is
2lawfully sold, transferred, or furnished over the counter without a
3prescription pursuant to the Federal Food, Drug, and Cosmetic
4Act (21 U.S.C. Sec. 301 et seq.), or regulations adopted thereunder,
5unless
exempted from the requirements of the federal Controlled
6Substances Act (21 U.S.C. Sec. 801 et seq.) by the federal Drug
7Enforcement Administration pursuant to Section 814 of Title 21
8of the United States Code.
9(2) To sell or distribute ephedrine, pseudoephedrine,
10norpseudoephedrine, or phenylpropanolamine to a person whose
11information has generated an alert as described in paragraph (3)
12of subdivision (d) regarding that sale.
13(3) To sell or distribute to a purchaser a nonprescription product
14containing any amount of ephedrine, pseudoephedrine,
15norpseudoephedrine, or phenylpropanolamine, except under the
16following conditions:
17(A) The purchaser shall produce valid government-issued photo
18identification.
19(B) The purchaser shall sign a written or electronic log showing
20all of the following:
21(i) The date and time of the transaction.
22(ii) The identification number presented.
23(iii) The agency issuing the identification and the type of
24identification issued.
25(iv) The name, date of birth, and address of the purchaser.
26(v) The amount of ephedrine base, pseudoephedrine base,
27norpseudoephedrine base, or phenylpropanolamine base contained
28in the material, compound, mixture, or preparation sold.
29(b) The
retail distributor shall store any product containing any
30amount of ephedrine, pseudoephedrine, norpseudoephedrine, or
31phenylpropanolamine either behind the counter or in a locked
32cabinet so that the customer does not have access to the product.
33(c) (1) To facilitate the monitoring of the sales of
34nonprescription products containing ephedrine, pseudoephedrine,
35norpseudoephedrine, or phenylpropanolamine, the retail distributor
36shall record all of the following information at the point of sale
37regarding the proposed transaction for the purpose of complying
38with this section or the federal Combat Methamphetamine
39Epidemic Act of 2005, or any regulation adopted pursuant to this
40section or that act, and for no other purpose:
P22 1(A) The date and time of the transaction.
2(B) The identification number of the purchaser, issuing agency
3of the identification, and the type of identification used.
4(C) The name, date of birth, and address of the purchaser
5verified through a photo identification of the purchaser.
6(D) The name, quantity of packages, and total gram weight of
7ephedrine base, pseudoephedrine base, norpseudoephedrine base,
8or phenylpropanolamine base contained in a product or products
9purchased, received, or otherwise acquired.
10(E) The name or initials of the person making the sale.
11(2) (A) On and after
August 1, 2015, the retail distributor shall
12transmit the information immediately to a vendor selected by the
13department to collect, administer, and provide access to the
14transaction data for purposes of determining whether the proposed
15sale would violate this section and therefore may not proceed,
16provided that the system is available to retailers in the state without
17a charge for accessing the system. The transaction information
18shall not be accessed, stored, or used by the retail distributor or
19law enforcement for any purpose other than to meet the
20requirements set forth in this section or to comply with the
21provisions of the federal Combat Methamphetamine Epidemic Act
22of 2005, or any regulation adopted pursuant to this section or that
23act. The retail distributor
shall not maintain a separate copy of the
24transaction information and shall not have direct access to
25individual information or sales records entered into the system,
26except as required by the federal Combat Methamphetamine
27Epidemic Act of 2005.
28(B) Subparagraph (A) shall become operative following the
29department’s execution of a memorandum of understanding (MOU)
30with NADDI and the vendor of the system governing access and
31oversight of the California transaction records pursuant to
32paragraph (1) of subdivision (d). Prior to executing the MOU, the
33Department of
Justice shall carry out a competitive bidding process
34for a vendor to collect, administer, and provide access to the
35transaction data transmitted by retail distributors. The competitive
36bid shall be completed by the department and the selected vendor
37within six months of the effective date of the act adding this
38section. The MOU shall be completed within 45 days of the vendor
39selection. The competitive bid shall require the vendor to operate
40a system that is operable on a real-time basis for 24 hours per day
P23 1seven days per week and is capable of interacting with purchase
2data from other states in order to prevent a person from attempting
3to exceed state purchase limits by crossing state lines.
4(3) (A) A retail distributor shall provide notice electronically,
5in writing, or by signage
to purchasers at the time of purchase that
6the information collected pursuant to the federal Combat
7Methamphetamine Epidemic Act of 2005 and this section shall be
8entered into a single database as specified in paragraph (2) and
9provided to law enforcement for purposes of determining the
10legality of a proposed sale.
11(B) Probable cause shall be demonstrated to trigger an
12investigation in connection with an individual whose requested
13purchase is denied by the system a single time.
14(C) Access by law enforcement to the data contained in the
15system from a location other than the retailer shall be limited to
16the records of an individual whose attempted purchase has been
17denied by the system.
18(4) This subdivision
shall not be construed to require a retail
19distributor to maintain state-required records relating to the sale
20of products containing ephedrine, pseudoephedrine,
21norpseudoephedrine, or phenylpropanolamine in a separate location
22or log from records required by federal law to be kept with respect
23to those products.
24(5) The recording requirements specified in this subdivision
25shall not apply to the sale of a single package containing not more
26than 60 milligrams of pseudoephedrine, consistent with the federal
27Combat Methamphetamine Epidemic Act of 2005.
28(6) If a retail distributor experiences mechanical or electronic
29failure of the system and is unable to comply with the recording
30requirements of this subdivision, the retail distributor shall maintain
31the required records in a
written log or an alternative electronic
32recordkeeping mechanism until the retail distributor is able to
33comply with the recording requirements of this subdivision. Written
34logs shall be maintained only for the purpose of compliance with
35this subdivision.
36(d) (1) The MOU shall require NADDI to forward California
37transaction records in the system to the Department of Justice
38weekly and provide real-time access to the information through
39the vendor’s online portal to law enforcement in the state as
40authorized by the department.
P24 1(2) The MOU shall constitute an enforceable contract.
2(3) Access to the system shall be available at no charge to the
3department and law enforcement in this state as authorized pursuant
4to paragraph (1).
5(4) The system shall allow retail distributors of products
6containing
ephedrine, pseudoephedrine, norpseudoephedrine, or
7phenylpropanolamine to enter into the database the information
8specified in subdivision (c) regarding the proposed sale of those
9products.
10(5) The system shall be capable of providing the retail distributor
11with an immediate real-time alert any time a provision of this
12section is being violated by a proposed sale.
13(6) Neither the department nor any state agency shall bear any
14cost for the development, installation, or maintenance of the
15system.
16(7) The MOU shall state that no party to the MOU nor any entity
17under contract to provide the electronic authorization and
18monitoring system shall be authorized to use the information
19contained in the system for any purpose other than those set forth
20in this section, the federal Combat Methamphetamine Epidemic
21Act of 2005, or any regulation adopted pursuant to this section or
22that act. However, the system operator shall be authorized to
23analyze
the information for the sole purpose of assessing and
24improving the performance and efficacy of the system. In addition,
25the MOU shall require that a retail distributor’s access to the
26
electronic authorization and monitoring system’s database is
27limited solely to records of sales transactions made by that retail
28distributor, which access shall be solely for purposes of complying
29with the federal Combat Methamphetamine Epidemic Act of 2005
30or this section, or to respond to a duly authorized law enforcement
31request or court order for information collected under that act or
32this section.
33(8) The system’s security program shall comply with the security
34standards for the Criminal Justice Information System of the
35Federal Bureau of Investigation and may be
audited once a year
36by the department.
37(9) The use of the system by a retail distributor or vendor of the
38system shall be subject to Section 56.101 of the Civil Code. A
39retail distributor shall provide a vendor telephone access number
40so that
purchasers who have questions regarding their purchase
P25 1denial or history may contact the vendor. A retail distributor or a
2vendor of the system holding the data shall not maintain any
3records collected under this system for longer than two years, or
4as otherwise required by the federal Combat Methamphetamine
5Epidemic Act of 2005 and shall be destroyed pursuant to Section
61798.81 of the Civil Code.
7(10) Law enforcement access to the system shall be recorded
8by means of a unique access code for each individual accessing
9the system
and an investigation number for each query. Each user’s
10history shall be maintained and may be audited by the department.
11(11) The department may submit recommendations to NADDI
12regarding system changes to assist in identifying false identification
13cards.
14(12) Disputes relating to compliance with this section arising
15against a vendor of the system shall be subject to a court of
16competent jurisdiction in California and shall be governed by
17California law.
18(e) The State Board of Equalization shall notify all retailers
19about the requirement to submit transactions to the system no later
20than April 1, 2014.
21(f) This section shall not apply to a health care practitioner with
22prescriptive authority who is currently licensed in this state.
23(g) (1) A first violation of this section is a misdemeanor.
24(2) A person who has previously been convicted of a violation
25of this section shall, upon a
subsequent conviction thereof, be
26punished by imprisonment in a county jail not exceeding one year,
27by a fine not exceeding ten thousand dollars ($10,000), or by both
28the fine and imprisonment.
29(h) For the purposes of this section, the following terms have
30the following meanings:
31(1) “Department” means the Department of Justice.
32(2) “Drug store” is an entity described in Code 5912 of the
33Standard Industrial Classification (SIC) Manual published by the
34United States Office of Management and Budget, 1987 edition.
35(3) “General merchandise store” is an entity described in Codes
365311 to 5399, inclusive, and Code 5499 of the Standard Industrial
37Classification
(SIC) Manual published by the United States Office
38of Management and Budget, 1987 edition.
P26 1(4) “Grocery store” is an entity described in Code 5411 of the
2Standard Industrial Classification (SIC) Manual published by the
3United States Office of Management and Budget, 1987 edition.
4(5) “Retail distributor” means a grocery store, general
5merchandise store, drugstore, or other related entity, the activities
6of which, as a distributor of ephedrine, pseudoephedrine,
7norpseudoephedrine, or phenylpropanolamine products, are limited
8exclusively to the sale of ephedrine, pseudoephedrine,
9norpseudoephedrine, or phenylpropanolamine products for personal
10use both in number of sales and volume of sales, either directly to
11walk-in customers or in face-to-face transactions by direct sales.
12“Retail
distributor” includes an entity that makes a direct sale, but
13does not include the parent company of that entity if the company
14is not involved in direct sales regulated by this article.
15(6) “Sale for personal use” means the sale in a single transaction
16to an individual customer for a legitimate medical use of a product
17containing ephedrine, pseudoephedrine, norpseudoephedrine, or
18phenylpropanolamine in amounts at or below that specified in
19subdivision (a). “Sale for personal use” also includes the sale of
20those products to employers to be dispensed to employees from
21first aid kits or medicine chests.
22(i) It is the intent of the Legislature that this section shall
23preempt all local ordinances or regulations governing the sale by
24a retail distributor of over-the-counter products
containing
25ephedrine, pseudoephedrine, norpseudoephedrine, or
26phenylpropanolamine.
27(j) This section shall remain in effect only until January 1, 2020,
28and as of that date is repealed, unless a later enacted statute, that
29is enacted before January 1, 2020, deletes or extends that date.
No reimbursement is required by this act pursuant to
31Section 6 of Article XIII B of the California Constitution because
32the only costs that may be incurred by a local agency or school
33district will be incurred because this act creates a new crime or
34infraction, eliminates a crime or infraction, or changes the penalty
35for a crime or infraction, within the meaning of Section 17556 of
36the Government Code, or changes the definition of a crime within
37the meaning of Section 6 of Article XIII B of the California
38Constitution.
O
96