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

SECTION 1.
Section 97.83 is added to the Revenue and Taxation Code, to read:
97.83.
(a) (1) Notwithstanding any other law, for the 2016–17 fiscal year
and for each fiscal year thereafter,
to the 2025–26 fiscal year, inclusive,
the auditor of each county shall do both of the following:
(A) Increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated among the county and each city and special district in the county by the qualified heavy equipment reimbursement amount. The qualified heavy equipment reimbursement amount shall be allocated among the county, cities, and special districts in proportion to the amounts of ad valorem property tax revenue otherwise allocated among those local agencies.
(B) Decrease the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the county’s Educational Revenue Augmentation Fund by the qualified heavy equipment reimbursement amount.
(2) (A) In the event that the county’s Educational Revenue Augmentation Fund does not have sufficient funds to offset the qualified heavy equipment reimbursement amount, the auditor shall, to the extent that those funds are insufficient, decrease the total amount of ad valorem property tax that is allocated to local school districts providing instruction for kindergarten and grades 1 to 12, inclusive, that are excess tax school entities, in proportion to their allocations of ad valorem property tax revenue allocated to school districts providing instruction for kindergarten and grades 1 to 12, inclusive, in the county, and allocate that amount among the county, cities, and special districts in proportion to the amounts of ad valorem property tax revenues otherwise allocated among those local agencies.
(B) In the event that the amount of ad valorem property tax revenues allocated to the Educational Revenue Augmentation Fund, together with the allocations to those school districts providing instruction for kindergarten and grades 1 to 12, inclusive, that are excess tax school entities, is insufficient to offset the qualified heavy equipment reimbursement amount, the auditor may also decrease the amount of ad valorem property tax revenues allocated to school districts providing instruction for kindergarten and grades 1 to 12, inclusive, that are not excess tax school entities, and allocate that amount among the county, cities, and special districts in proportion to the amounts of ad valorem property tax revenue otherwise allocated among those local agencies.
(b) For purposes of this section, “qualified heavy equipment reimbursement amount” means the total amount of ad valorem property tax revenue received by the county and each city and special district in the county in the 2014–15 fiscal year from renters of qualified heavy equipment, as defined in Part 11 (commencing with Section 5500) of Division 1.
(c) For the 2017–18 fiscal year
and for each fiscal year thereafter,
to the 2025–26 fiscal year, inclusive,
ad valorem property tax revenue allocations made pursuant to Sections 96.1 and 96.5, or any successor to either of those provisions, shall not incorporate the allocation adjustments made by this section.
(d) This section shall be repealed on January 1, 2027.
SEC. 2.
Part 11 (commencing with Section 5500) is added to Division 1 of the Revenue and Taxation Code, to read:
PART 11. Taxation of Qualified Heavy Equipment
5500.
For purposes of this part, all of the following definitions shall apply:
(a) “Rental price” means the total amount of the charge for renting the qualified heavy equipment, excluding any separately stated charges that are not rental charges, including, but not limited to, separately stated charges for delivery and pickup fees, damage waivers, environmental mitigation fees, or use taxes.
(b) (1) “Qualified heavy equipment” means any construction, earthmoving, or industrial equipment that is mobile and rented by a qualified renter, including attachments for the equipment or other ancillary equipment, including, but not limited to, all of the following:
(A) A self-propelled vehicle that is not designed to be driven on the highway.
(B) Industrial electrical generation equipment or portable heating, ventilating, and air-conditioning equipment.
(C) Industrial lift equipment.
(D) Industrial material equipment.
(E) Equipment used in shoring, shielding, and ground trenching.
(F) Equipment or vehicles not subject to the fee imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2).
(2) Qualified heavy equipment is mobile if the qualified heavy equipment is not intended to be permanently affixed to real property for the purpose of using the qualified heavy equipment for its intended use. Qualified heavy equipment is mobile if it is intended to be moved among worksites as needed.
(c) “Qualified renter” means a renter that satisfies all of the following:
(1) The principal business of the renter is the rental of qualified heavy equipment.
(2) Is engaged in a line of business described in Code 532412 of the North American Industry Classification System published by the United States Office of Management and Budget, 2012 edition.
(d) “Renting” or “rent” means a rental for a period of less than 365 days or for an undefined period, or an open-ended contract.
5501.
(a) On and after July 1, 2016,
and before July 1, 2026,
there is hereby imposed a tax on every qualified renter for the privilege of renting qualified heavy equipment in this state at the rate of 0.75 percent of the rental price from the renting of qualified heavy equipment.
(b) The qualified renter shall pay and remit the tax to the board as required by this part.
(c) The board shall administer and collect the tax imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2). For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the tax imposed by this part, and references to “feepayer” shall include a person liable for the payment of the taxes imposed by this part and collected pursuant to that law.
5502.
Every qualified renter shall register with the board. Every application for registration shall be made upon a form prescribed by the board and shall set forth the name under which the applicant transacts or intends to transact business, the location of its place or places of business, and other information as the board may require. An application for an account shall be authenticated in a form or pursuant to methods as may be prescribed by the board.
5503.
The board may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
5504.
The taxes imposed by this part are due and payable to the board quarterly on or before the last day of the month next succeeding each quarterly period.
5505.
(a) On or before the last day of the month following each quarterly period of three months, a return for the preceding quarterly period shall be filed using electronic media with the board.
(b) The board may prescribe those forms and reporting requirements as are necessary to implement the tax.
(c) Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board.
5505.5.
A qualified renter is relieved from liability for the tax imposed by this part that became due and payable, insofar as the measure of tax on the rental of qualified heavy equipment is represented by accounts which have been found worthless and charged off for income tax purposes. If the qualified renter has previously paid the amount of the tax, the qualified renter may, under the rules and regulations prescribed by the board, take as a deduction the amount found worthless and charged of by the retailer. If any such accounts are thereafter in whole or in part collected by the qualified renter, the amount so collected shall be included in the first return filed after such collection and the tax shall be paid with the return.
5506.
All revenues, interest, penalties, and other amounts collected pursuant to this part, less refunds and the board’s costs of administration, shall be deposited in the General Fund.
5507.
(a) For the 2016–17 fiscal year
and for each fiscal year thereafter,
to the 2025–26 fiscal year, inclusive,
the tax imposed pursuant to this part shall be in lieu of any property tax on qualified heavy equipment subject to taxation pursuant to this part.
(b) Property of a qualified renter that is not subject to the tax imposed pursuant to this part shall remain subject to any applicable property taxes.
5508.
This part shall be repealed on January 1, 2027.
SEC. 3.
The repeal of Part 11 (commencing with Section 5500) of Division 1 of the Revenue and Taxation Code by the act adding this section shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause, before such repeal; but all rights and liabilities under such law shall continue, and may be enforced in the same manner, as if such repeal had not been made.
SEC. 3.
SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.
SEC. 5.
Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Summary: The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 23 vote of the membership of each house. This bill would, pursuant to this constitutional authorization, on and after July 1, 2016, to before July 1, 2026, impose a tax on every qualified renter for the privilege of renting qualified heavy equipment in this state at the rate of 0.75 of the rental price from the renting of qualified heavy equipment. This bill would require a qualified renter to pay and remit the tax, as provided. This bill would provide that this tax shall be in lieu of any personal property tax on qualified heavy equipment. This bill would require the tax to be administered by the State Board of Equalization and to be collected pursuant to the procedures set forth in the Fee Collection Procedures Law. This bill would require all revenues, interest, penalties, and other amounts, less refunds and the board’s costs of administration, derived from the imposition of the tax to be deposited in the General Fund. Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined. Existing property tax law also reduces the amounts of ad valorem property tax revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to these general allocation requirements by requiring, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education. This bill would, for the 2016–17 fiscal year and for each fiscal year thereafter, to the 2025–26 fiscal year, inclusive, require the county auditor to increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated among the county and each city and special district in the county by the qualified heavy equipment reimbursement amount, as defined, and to commensurately decrease the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund and, if necessary, the amount of those revenue revenues otherwise required to be allocated to school districts, as specified, by the qualified heavy equipment reimbursement amount. By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, and by imposing new duties upon local officials in the allocation of ad valorem property tax revenues, this 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

An act to add
and repeal
Section 97.83
to,
of,
and to add
and repeal
Part 11 (commencing with Section 5500)
to
of
Division 1 of, the Revenue and Taxation Code, relating to taxation.


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

SECTION 1.
Section 11165 of the Health and Safety Code is amended to read:
11165.
(a) To assist health care practitioners in their efforts to ensure appropriate prescribing, ordering, administering, furnishing, and dispensing of controlled substances, law enforcement and regulatory agencies in their efforts to control the diversion and resultant abuse of Schedule II, Schedule III, and Schedule IV controlled substances, and for statistical analysis, education, and research, the Department of Justice shall, contingent upon the availability of adequate funds in the CURES Fund, maintain the Controlled Substance Utilization Review and Evaluation System (CURES) for the electronic monitoring of, and Internet access to information regarding, the prescribing and dispensing of Schedule II, Schedule III, and Schedule IV controlled substances by all practitioners authorized to prescribe, order, administer, furnish, or dispense these controlled substances.
(b) The Department of Justice may seek and use grant funds to pay the costs incurred by the operation and maintenance of CURES. The department shall annually report to the Legislature and make available to the public the amount and source of funds it receives for support of CURES.
(c) (1) The operation of CURES shall comply with all applicable federal and state privacy and security laws and regulations.
(2) (A) CURES shall operate under existing provisions of law to safeguard the privacy and confidentiality of patients. Data obtained from CURES shall only be provided to appropriate state, local, and federal public agencies for disciplinary, civil, or criminal purposes and to other agencies or entities, as determined by the Department of Justice, for the purpose of educating practitioners and others in lieu of disciplinary, civil, or criminal actions. Data may be provided to public or private entities, as approved by the Department of Justice, for educational, peer review, statistical, or research purposes, provided that patient information, including any information that may identify the patient, is not compromised. Further, data disclosed to any individual or agency as described in this subdivision shall not be disclosed, sold, or transferred to any third party, unless authorized by, or pursuant to, state and federal privacy and security laws and regulations. The Department of Justice shall establish policies, procedures, and regulations regarding the use, access, evaluation, management, implementation, operation, storage, disclosure, and security of the information within CURES, consistent with this subdivision.
(B) Notwithstanding subparagraph (A), a regulatory board whose licensees do not prescribe, order, administer, furnish, or dispense controlled substances shall not be provided data obtained from CURES.
(3) In accordance with federal and state privacy laws and regulations, a health care practitioner may provide a patient with a copy of the patient’s CURES patient activity report as long as no additional CURES data is provided and keep a copy of the report in the patient’s medical record in compliance with subdivision (d) of Section 11165.1.
(d) For each prescription for a Schedule II, Schedule III, or Schedule IV controlled substance, as defined in the controlled substances schedules in federal law and regulations, specifically Sections 1308.12, 1308.13, and 1308.14, respectively, of Title 21 of the Code of Federal Regulations, the dispensing pharmacy, clinic, or other dispenser shall report the following information to the Department of Justice as soon as reasonably possible, but not more than seven days after the date a controlled substance is dispensed, in a format specified by the Department of Justice:
(1) Full name, address, and, if available, telephone number of the ultimate user or research subject, or contact information as determined by the Secretary of the United States Department of Health and Human Services, and the gender, and date of birth of the ultimate user.
(2) The prescriber’s category of licensure, license number, national provider identifier (NPI) number, if applicable, the federal controlled substance registration number, and the state medical license number of any prescriber using the federal controlled substance registration number of a government-exempt facility.
(3) Pharmacy prescription number, license number, NPI number, and federal controlled substance registration number.
(4) National Drug Code (NDC) number of the controlled substance dispensed.
(5) Quantity of the controlled substance dispensed.
(6) International Statistical Classification of Diseases, 9th revision (ICD-9) or 10th revision (ICD-10) Code, if available.
(7) Number of refills ordered.
(8) Whether the drug was dispensed as a refill of a prescription or as a first-time request.
(9) Date of origin of the prescription.
(10) Date of dispensing of the prescription.
(e) The Department of Justice may invite stakeholders to assist, advise, and make recommendations on the establishment of rules and regulations necessary to ensure the proper administration and enforcement of the CURES database. All prescriber and dispenser invitees shall be licensed by one of the boards or committees identified in subdivision (d) of Section 208 of the Business and Professions Code, in active practice in California, and a regular user of CURES.
(f) The Department of Justice shall, prior to upgrading CURES, consult with prescribers licensed by one of the boards or committees identified in subdivision (d) of Section 208 of the Business and Professions Code, one or more of the boards or committees identified in subdivision (d) of Section 208 of the Business and Professions Code, and any other stakeholder identified by the department, for the purpose of identifying desirable capabilities and upgrades to the CURES Prescription Drug Monitoring Program (PDMP).
(g) The Department of Justice may establish a process to educate authorized subscribers of the CURES PDMP on how to access and use the CURES PDMP.
SEC. 2.
Section 11165.1 of the Health and Safety Code is amended to read:
11165.1.
(a) (1) (A) (i) A health care practitioner authorized to prescribe, order, administer, furnish, or dispense Schedule II, Schedule III, or Schedule IV controlled substances pursuant to Section 11150 shall, before July 1, 2016, or upon receipt of a federal Drug Enforcement Administration (DEA) registration, whichever occurs later, submit an application developed by the Department of Justice to obtain approval to access information online regarding the controlled substance history of a patient that is stored on the Internet and maintained within the Department of Justice, and, upon approval, the department shall release to that practitioner the electronic history of controlled substances dispensed to an individual under his or her care based on data contained in the CURES Prescription Drug Monitoring Program (PDMP).
(ii) A pharmacist shall, before July 1, 2016, or upon licensure, whichever occurs later, submit an application developed by the Department of Justice to obtain approval to access information online regarding the controlled substance history of a patient that is stored on the Internet and maintained within the Department of Justice, and, upon approval, the department shall release to that pharmacist the electronic history of controlled substances dispensed to an individual under his or her care based on data contained in the CURES PDMP.
(B) An application may be denied, or a subscriber may be suspended, for reasons which include, but are not limited to, the following:
(i) Materially falsifying an application for a subscriber.
(ii) Failure to maintain effective controls for access to the patient activity report.
(iii) Suspended or revoked federal DEA registration.
(iv) Any subscriber who is arrested for a violation of law governing controlled substances or any other law for which the possession or use of a controlled substance is an element of the crime.
(v) Any subscriber accessing information for any other reason than caring for his or her patients.
(C) Any authorized subscriber shall notify the Department of Justice within 30 days of any changes to the subscriber account.
(2) A health care practitioner authorized to prescribe, order, administer, furnish, or dispense Schedule II, Schedule III, or Schedule IV controlled substances pursuant to Section 11150 or a pharmacist shall be deemed to have complied with paragraph (1) if the licensed health care practitioner or pharmacist has been approved to access the CURES database through the process developed pursuant to subdivision (a) of Section 209 of the Business and Professions Code.
(b) Any request for, or release of, a controlled substance history pursuant to this section shall be made in accordance with guidelines developed by the Department of Justice.
(c) In order to prevent the inappropriate, improper, or illegal use of Schedule II, Schedule III, or Schedule IV controlled substances, the Department of Justice may initiate the referral of the history of controlled substances dispensed to an individual based on data contained in CURES to licensed health care practitioners, pharmacists, or both, providing care or services to the individual.
(d) The history of controlled substances dispensed to an individual based on data contained in CURES that is received by a practitioner or pharmacist from the Department of Justice pursuant to this section is medical information subject to the provisions of the Confidentiality of Medical Information Act contained in Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code.
(e) Information concerning a patient’s controlled substance history provided to a prescriber or pharmacist pursuant to this section shall include prescriptions for controlled substances listed in Sections 1308.12, 1308.13, and 1308.14 of Title 21 of the Code of Federal Regulations.
(f) A health care practitioner, pharmacist, and any person acting on behalf of a health care practitioner or pharmacist, when acting with reasonable care and in good faith, is not subject to civil or administrative liability arising from any false, incomplete, inaccurate, or misattributed information submitted to, reported by, or relied upon in the CURES database or for any resulting failure of the CURES database to accurately or timely report that information.
SEC. 3.
Section 11165.4 is added to the Health and Safety Code, to read:
11165.4.
(a) (1) (A) (i) A health care practitioner authorized to prescribe, order, administer, or furnish a controlled substance shall consult the CURES database to review a patient’s controlled substance history before prescribing a Schedule II, Schedule III, or Schedule IV controlled substance to the patient for the first time and at least once every four months thereafter if the substance remains part of the treatment of the patient.
(ii) If a health care practitioner authorized to prescribe, order, administer, or furnish a controlled substance is not required, pursuant to an exemption described in subdivision (c), to consult the CURES database the first time he or she prescribes, orders, administers, or furnishes a controlled substance to a patient, he or she shall consult the CURES database to review the patient’s controlled substance history before subsequently prescribing a Schedule II, Schedule III, or Schedule IV controlled substance to the patient and at least once every four months thereafter if the substance remains part of the treatment of the patient.
(B) For purposes of this paragraph, “first time” means the initial occurrence in which a health care practitioner, in his or her role as a health care practitioner, intends to prescribe, order, administer, or furnish a Schedule II, Schedule III, or Schedule IV controlled substance to a patient and has not previously prescribed a controlled substance to the patient.
(2) A health care practitioner shall obtain a patient’s controlled substance history from the CURES database no earlier than 24 hours, or the previous business day, before he or she prescribes, orders, administers, or furnishes a Schedule II, Schedule III, or Schedule IV controlled substance to the patient.
(b) The duty to consult the CURES database, as described in subdivision (a), does not apply to veterinarians or pharmacists.
(c) The duty to consult the CURES database, as described in subdivision (a), does not apply to a health care practitioner in any of the following circumstances:
(1) If a health care practitioner prescribes, orders, or furnishes a controlled substance to be administered to a patient while the patient is admitted to any of the following facilities or during an emergency transfer between any of the following facilities for use while on facility premises:
(A) A licensed clinic, as described in Chapter 1 (commencing with Section 1200) of Division 2.
(B) An outpatient setting, as described in Chapter 1.3 (commencing with Section 1248) of Division 2.
(C) A health facility, as described in Chapter 2 (commencing with Section 1250) of Division 2.
(D) A county medical facility, as described in Chapter 2.5 (commencing with Section 1440) of Division 2.
(2) If a health care practitioner prescribes, orders, administers, or furnishes a controlled substance in the emergency department of a general acute care hospital and the quantity of the controlled substance does not exceed a nonrefillable seven-day supply of the controlled substance to be used in accordance with the directions for use.
(3) If a health care practitioner prescribes, orders, administers, or furnishes a controlled substance to a patient as part of the patient’s treatment for a surgical procedure and the quantity of the controlled substance does not exceed a nonrefillable five-day supply of the controlled substance to be used in accordance with the directions for use, in any of the following facilities:
(A) A licensed clinic, as described in Chapter 1 (commencing with Section 1200) of Division 2.
(B) An outpatient setting, as described in Chapter 1.3 (commencing with Section 1248) of Division 2.
(C) A health facility, as described in Chapter 2 (commencing with Section 1250) of Division 2.
(D) A county medical facility, as described in Chapter 2.5 (commencing with Section 1440) of Division 2.
(E) A place of practice, as defined in Section 1658 of the Business and Professions Code.
(4) If a health care practitioner prescribes, orders, administers, or furnishes a controlled substance to a patient currently receiving hospice care, as defined in Section 1339.40.
(5) (A) If all of the following circumstances are satisfied:
(i) It is not reasonably possible for a health care practitioner to access the information in the CURES database in a timely manner.
(ii) Another health care practitioner or designee authorized to access the CURES database is not reasonably available.
(iii) The quantity of controlled substance prescribed, ordered, administered, or furnished does not exceed a nonrefillable five-day supply of the controlled substance to be used in accordance with the directions for use and no refill of the controlled substance is allowed.
(B) A health care practitioner who does not consult the CURES database under subparagraph (A) shall document the reason he or she did not consult the database in the patient’s medical record.
(6) If the CURES database is not operational, as determined by the department, or when it cannot be accessed by a health care practitioner because of a temporary technological or electrical failure. A health care practitioner shall, without undue delay, seek to correct any cause of the temporary technological or electrical failure that is reasonably within his or her control.
(7) If the CURES database cannot be accessed because of technological limitations that are not reasonably within the control of a health care practitioner.
(8) If consultation of the CURES database would, as determined by the health care practitioner, result in a patient’s inability to obtain a prescription in a timely manner and thereby adversely impact the patient’s medical condition, provided that the quantity of the controlled substance does not exceed a nonrefillable five-day supply if the controlled substance were used in accordance with the directions for use.
(d) (1) A health care practitioner who fails to consult the CURES database, as described in subdivision (a), shall be referred to the appropriate state professional licensing board solely for administrative sanctions, as deemed appropriate by that board.
(2) This section does not create a private cause of action against a health care practitioner. This section does not limit a health care practitioner’s liability for the negligent failure to diagnose or treat a patient.
(e) This section is not operative until six months after the Department of Justice certifies that the CURES database is ready for statewide use and that the department has adequate staff, which, at a minimum, shall be consistent with the appropriation authorized in Schedule (6) of Item 0820-001-0001 of the Budget Act of 2016 (Chapter 23 of the Statutes of 2016), user support, and education. The department shall notify the Secretary of State and the office of the Legislative Counsel of the date of that certification.
(f) All applicable state and federal privacy laws govern the duties required by this section.
(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

Summary: Existing law classifies certain controlled substances into designated schedules. Existing law requires the Department of Justice to maintain the Controlled Substance Utilization Review and Evaluation System (CURES) for the electronic monitoring of the prescribing and dispensing of Schedule II, Schedule III, and Schedule IV controlled substances by all practitioners authorized to prescribe, administer, furnish, or dispense these controlled substances. Existing law requires dispensing pharmacies and clinics to report specified information for each prescription of a Schedule II, Schedule III, or Schedule IV controlled substance to the department. This bill would require a health care practitioner authorized to prescribe, order, administer, or furnish a controlled substance to consult the CURES database to review a patient’s controlled substance history no earlier than 24 hours, or the previous business day, before prescribing a Schedule II, Schedule III, or Schedule IV controlled substance to the patient for the first time and at least once every 4 months thereafter if the substance remains part of the treatment of the patient. The bill would exempt a veterinarian and a pharmacist from this requirement. The bill would also exempt a health care practitioner from this requirement under specified circumstances, including, among others, if prescribing, ordering, administering, or furnishing a controlled substance to a patient receiving hospice care, to a patient admitted to a specified facility for use while on facility premises, or to a patient as part of a treatment for a surgical procedure in a specified facility if the quantity of the controlled substance does not exceed a nonrefillable 5-day supply of the controlled substance that is to be used in accordance with the directions for use. The bill would require, if a health care practitioner authorized to prescribe, order, administer, or furnish a controlled substance is not required to consult the CURES database the first time he or she prescribes, orders, administers, or furnishes a controlled substance to a patient pursuant to one of those exemptions, the health care practitioner to consult the CURES database before subsequently prescribing a Schedule II, Schedule III, or Schedule IV controlled substance to the patient and at least once every 4 months thereafter if the substance remains part of the treatment of the patient. This bill would provide that a health care practitioner who fails to consult the CURES database is required to be referred to the appropriate state professional licensing board solely for administrative sanctions, as deemed appropriate by that board. The bill would make the above-mentioned provisions operative 6 months after the Department of Justice certifies that the CURES database is ready for statewide use and that the department has adequate staff, user support, and education, as specified. This bill would also exempt a health care practitioner, pharmacist, and any person acting on behalf of a health care practitioner or pharmacist, when acting with reasonable care and in good faith, from civil or administrative liability arising from any false, incomplete, inaccurate, or misattributed information submitted to, reported by, or relied upon in the CURES database or for any resulting failure of the CURES database to accurately or timely report that information. Existing law requires the operation of the CURES database to comply with all applicable federal and state privacy and security laws and regulations. Existing law authorizes the disclosure of data obtained from the CURES database to agencies and entities only for specified purposes and requires the Department of Justice to establish policies, procedures, and regulations regarding the use, access, disclosure, and security of the information within the CURES database. This bill would authorize a health care practitioner to provide a patient with a copy of the patient’s CURES patient activity report if no additional CURES data is provided. The bill would also prohibit a regulatory board whose licensees do not prescribe, order, administer, furnish, or dispense controlled substances from obtaining data from the CURES database.

An act to amend Sections 11165 and 11165.1 of, and to add Section 11165.4 to, the Health and Safety Code, relating to controlled substances.


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

SECTION 1.
Section 1253.7 is added to the Health and Safety Code, to read:
1253.7.
(a) (1) For purposes of this chapter, “observation services” means outpatient services provided by a general acute care hospital to those patients described in subdivision (e) who have unstable or uncertain conditions potentially serious enough to warrant close observation, but not so serious as to warrant inpatient admission to the hospital. Observation services may include the use of a bed, monitoring by nursing and other staff, and any other services that are reasonable and necessary to safely evaluate a patient’s condition or determine the need for a possible inpatient admission to the hospital.
(2) For purposes of this chapter, “observation unit” means an area where observation services are provided in a setting outside of an inpatient
unit
unit, and that is not part of an emergency department,
of a general acute care hospital.
(b) Observation services in observation units, as defined in subdivision (a), may be provided for a period of no more than 24 hours.
(c) A general acute care hospital that provides observation services in an observation unit shall apply for approval from the department, pursuant to subdivision (a) of Section 1253.6, to provide services in an observation unit as a supplemental service.
(d)  The department shall adopt standards and regulations, pursuant to subdivision (a) of Section 1275, for providing observation services in an observation unit as a supplemental service under the general acute care hospital’s license.
(e) Observation services may be ordered by an appropriately licensed practitioner only for any of the following:
(1) A patient who has received triage services in the emergency department but has not been admitted as an inpatient.
(2) A patient who has received outpatient surgical services and procedures.
(3) A patient who has been admitted as an inpatient and is discharged to receive observation services.
(4) A patient previously seen in a physician’s office or outpatient clinic.
(f) Notwithstanding subdivisions (d) and (e) of Section 1275, observation services provided by the general acute care hospital in an observation unit, including the services provided in a freestanding physical plant, as defined in subdivision (g) of Section 1275, shall comply with the same staffing standards, including, but not limited to, licensed nurse-to-patient ratios, as supplemental emergency services.
(g) A patient receiving observation services shall receive written notice that his or her care is being provided on an outpatient basis, and that this may impact reimbursement by Medicare, Medi-Cal, or private payers of health care services, or cost-sharing arrangements through his or her health care coverage.
(h) Observation units shall be marked with signage identifying the area as an outpatient area. The signage shall use the term “outpatient” in the title of the area to clearly indicate to all patients and family members that the observation services provided in the center are not inpatient services.
(i) Observation services shall be deemed outpatient or ambulatory services that are revenue-producing cost centers associated with hospital-based or satellite service locations that emphasize outpatient care. Identifying an observation unit by a name or term other than that used in this subdivision does not exempt the general acute care hospital from the requirement to obtain approval from the department to provide observation services as a distinct supplemental service when observation services are provided in a setting outside of an inpatient unit of a general acute care hospital.
SEC. 2.
Section 128740 of the Health and Safety Code is amended to read:
128740.
(a) Commencing with the first calendar quarter of 1992, the following summary financial and utilization data shall be reported to the office by each hospital within 45 days of the end of every calendar quarter. Adjusted reports reflecting changes as a result of audited financial statements may be filed within four months of the close of the hospital’s fiscal or calendar year. The quarterly summary financial and utilization data shall conform to the uniform description of accounts as contained in the Accounting and Reporting Manual for California Hospitals and shall include all of the following:
(1) Number of licensed beds.
(2) Average number of available beds.
(3) Average number of staffed beds.
(4) Number of discharges.
(5) Number of inpatient days.
(6) Number of outpatient visits, excluding observation service visits.
(7) Number of observation service visits and number of hours of services provided.
(8) Total operating expenses.
(9) Total inpatient gross revenues by payer, including Medicare, Medi-Cal, county indigent programs, other third parties, and other payers.
(10) Total outpatient gross revenues by payer, including Medicare, Medi-Cal, county indigent programs, other third parties, and other payers.
(11) Total observation service gross revenues by payer, including Medicare, Medi-Cal, county indigent programs, other third parties, and other payers.
(12) Deductions from revenue in total and by component, including the following: Medicare contractual adjustments, Medi-Cal contractual adjustments, and county indigent program contractual adjustments, other contractual adjustments, bad debts, charity care, restricted donations and subsidies for indigents, support for clinical teaching, teaching allowances, and other deductions.
(13) Total capital expenditures.
(14) Total net fixed assets.
(15) Total number of inpatient days, outpatient visits excluding observation services, observation services, and discharges by payer, including Medicare, Medi-Cal, county indigent programs, other third parties, self-pay, charity, and other payers.
(16) Total net patient revenues by payer including Medicare, Medi-Cal, county indigent programs, other third parties, and other payers.
(17) Other operating revenue.
(18) Nonoperating revenue net of nonoperating expenses.
(b) Hospitals reporting pursuant to subdivision (d) of Section 128760 may provide the items in paragraphs (8), (9), (10), (12), (16), (17), and (18) of subdivision (a) on a group basis, as described in subdivision (d) of Section 128760.
(c) The office shall make available at cost, to any person, a hardcopy of any hospital report made pursuant to this section and in addition to hardcopies shall make available at cost, a computer tape of all reports made pursuant to this section within 105 days of the end of every calendar quarter.
(d) The office shall adopt by regulation guidelines for the identification, assessment, and reporting of charity care services. In establishing the guidelines, the office shall consider the principles and practices recommended by professional health care industry accounting associations for differentiating between charity services and bad debts. The office shall further conduct the onsite validations of health facility accounting and reporting procedures and records as are necessary to ensure that reported data are consistent with regulatory guidelines.
SEC. 3.
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.

Summary: Existing law establishes the State Department of Public Health and sets forth its powers and duties, including, but not limited to, the licensing and regulation of health facilities, including, but not limited to, general acute care hospitals. A violation of these provisions is a crime. Existing law authorizes the department to issue a special permit authorizing a health facility to offer one or more special services when specified requirements are met. Existing law requires general acute care hospitals to apply for supplemental services approval and requires the department to, upon issuance and renewal of a license for certain health facilities, separately identify on the license each supplemental service. Existing law requires a hospital to report specified summary financial and utilization data to the Office of Statewide Health Planning and Development (OSHPD) within 45 days of the end of every calendar quarter. This bill would require a general acute care hospital that provides observation services, as defined, to apply for approval from the department to provide these services as supplemental services. The bill would require the department to adopt standards and regulations for a hospital providing observation services as an approved supplemental service under the general acute care hospital’s license. The bill would require hospitals to include certain data relating to observation service visits and total observation service gross revenues in the reports filed with OSHPD. Because a violation of these provisions by a health facility 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.

An act to amend Section 128740 of, and to add Section 1253.7 to, the Health and Safety Code, relating to health care.


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

SECTION 1.
Section 1507.6 of the Health and Safety Code is amended to read:
1507.6.
(a) Mental health services, as deemed necessary by the placing agency, may be provided to children in a group home. Except for the physical safety and direct care and supervision of children so placed, the State Department of Social Services and its agents shall not evaluate or have responsibility or liability for the evaluation of mental health services provided in those homes. Supervision of mental health treatment services provided to a child in a group home shall be a case management responsibility of the placing agency.
(b) (1) Psychotropic medications shall be used only in accordance with the written directions of the physician prescribing the medication and as authorized by the juvenile court pursuant to Section 369.5 or 739.5 of the Welfare and Institutions Code.
(2) The facility shall maintain in a child’s records all of the following information:
(A) A copy of any court order authorizing the psychotropic medication for the child.
(B) A separate log for each psychotropic medication prescribed for the child, showing all of the following:
(i) The name of the medication.
(ii) The date of the prescription.
(iii) The quantity of medication and number of refills initially prescribed.
(iv) When applicable, any additional refills prescribed.
(v) The required dosage and directions for use as specified in writing by the physician prescribing the medication, including any changes directed by the physician.
(vi) The date and time of each dose taken by the child.
(3) This subdivision does not apply to a runaway and homeless youth shelter, as defined in Section 1502.
SEC. 2.
Section 1536 of the Health and Safety Code is amended to read:
1536.
(a) (1) At least annually, the department shall publish and make available to interested persons a list or lists covering all licensed community care facilities, other than foster family homes and certified family homes of foster family agencies providing 24-hour care for six or fewer foster children, and the services for which each facility has been licensed or issued a special permit.
(2) For a group home, transitional housing placement provider, community treatment facility, runaway and homeless youth shelter, or short-term residential treatment center, the list shall include both of the following:
(A) The number of licensing complaints, types of complaint, and outcomes of complaints, including citations, fines, exclusion orders, license suspensions, revocations, and surrenders.
(B) The number, types, and outcomes of law enforcement contacts made by the facility staff or children, as reported pursuant to subdivision (a) of Section 1538.7.
(b) Subject to subdivision (c), to encourage the recruitment of foster family homes and certified family homes of foster family agencies, protect their personal privacy, and to preserve the security and confidentiality of the placements in the homes, the names, addresses, and other identifying information of facilities licensed as foster family homes and certified family homes of foster family agencies providing 24-hour care for six or fewer children shall be considered personal information for purposes of the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code). This information shall not be disclosed by any state or local agency pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for administering the licensing program, facilitating the placement of children in these facilities, and providing names and addresses, upon request, only to bona fide professional foster parent organizations and to professional organizations educating foster parents, including the Foster and Kinship Care Education Program of the California Community Colleges.
(c) Notwithstanding subdivision (b), the department, a county, or a foster family agency may request information from, or divulge information to, the department, a county, or a foster family agency, regarding a prospective certified parent, foster parent, or relative caregiver for the purpose of, and as necessary to, conduct a reference check to determine whether it is safe and appropriate to license, certify, or approve an applicant to be a certified parent, foster parent, or relative caregiver.
(d) The department may issue a citation and, after the issuance of that citation, may assess a civil penalty of fifty dollars ($50) per day for each instance of a foster family agency’s failure to provide the department with the information required by subdivision (h) of Section 88061 of Title 22 of the California Code of Regulations.
(e) The Legislature encourages the department, when funds are available for this purpose, to develop a database that would include all of the following information:
(1) Monthly reports by a foster family agency regarding family homes.
(2) A log of family homes certified and decertified, provided by a foster family agency to the department.
(3) Notification by a foster family agency to the department informing the department of a foster family agency’s determination to decertify a certified family home due to any of the following actions by the certified family parent:
(A) Violating licensing rules and regulations.
(B) Aiding, abetting, or permitting the violation of licensing rules and regulations.
(C) Conducting oneself in a way that is inimical to the health, morals, welfare, or safety of a child placed in that certified family home.
(D) Being convicted of a crime while a certified family parent.
(E) Knowingly allowing any child to have illegal drugs or alcohol.
(F) Committing an act of child abuse or neglect or an act of violence against another person.
(f) At least annually, the department shall post on its Internet Web site a statewide summary of the information gathered pursuant to Sections 1538.8 and 1538.9. The summary shall include only de-identified and aggregate information that does not violate the confidentiality of a child’s identity and records.
SEC. 3.
Section 1538.8 is added to the Health and Safety Code, to read:
1538.8.
(a) (1) In order to review and evaluate the use of psychotropic medications in group homes, the department shall compile, to the extent feasible and not otherwise prohibited by law and based on information received from the State Department of Health Care Services, at least annually, information concerning each group home, including, but not limited to, the child welfare psychotropic medication measures developed by the department and the following Healthcare Effectiveness Data and Information Set (HEDIS) measures related to psychotropic medications:
(A) Follow-Up Care for Children Prescribed Attention Deficit Hyperactivity Disorder Medication (HEDIS ADD), which measures the number of children 6 to 12 years of age, inclusive, who have a visit with a provider with prescribing authority within 30 days of the new prescription.
(B) Use of Multiple Concurrent Antipsychotics in Children and Adolescents (HEDIS APC), which does both of the following:
(i) Measures the number of children receiving an antipsychotic medication for at least 60 out of 90 days and the number of children who additionally receive a second antipsychotic medication that overlaps with the first.
(ii) Reports a total rate and age stratifications including 6 to 11 years of age, inclusive, and 12 to 17 years of age, inclusive.
(C) Use of First-Line Psychosocial Care for Children and Adolescents on Antipsychotics (HEDIS APP), which measures whether a child has received psychosocial services 90 days before through 30 days after receiving a new prescription for an antipsychotic medication.
(D) Metabolic Monitoring for Children and Adolescents on Antipsychotics (HEDIS APM), which does both of the following:
(i) Measures testing for glucose or HbA1c and lipid or cholesterol of a child who has received at least two different antipsychotic prescriptions on different days.
(ii) Reports a total rate and age stratifications including 6 to 11 years of age, inclusive, and 12 to 17 years of age, inclusive.
(2) The department shall post the list of data to be collected pursuant to this subdivision on the department’s Internet Web site.
(b) The data in subdivision (a) concerning psychotropic medication, mental health services, and placement shall be drawn from existing data maintained by the State Department of Health Care Services and the State Department of Social Services and shared pursuant to a data sharing agreement meeting the requirements of all applicable state and federal laws and regulations.
(c) This section does not apply to a runaway and homeless youth shelter, as defined in Section 1502.
SEC. 4.
Section 1538.9 is added to the Health and Safety Code, to read:
1538.9.
(a) (1) (A) The department shall consult with the State Department of Health Care Services and stakeholders to establish a methodology for identifying those group homes providing care under the AFDC-FC program pursuant to Sections 11460 and 11462 of the Welfare and Institutions Code that have levels of psychotropic drug utilization warranting additional review. The methodology shall be adopted on or before July 1, 2016.
(B) Every three years after adopting the methodology developed under subparagraph (A), or earlier if needed, the department shall consult with the State Department of Health Care Services and stakeholders and revise the methodology, if necessary.
(2) If the department, applying the methodology described in paragraph (1), determines that a facility appears to have levels of psychotropic drug utilization warranting additional review, it shall inspect the facility at least once a year.
(3) The inspection of the facility shall include, but not be limited to, a review of the following:
(A) Plan of operation, policies, procedures, and practices.
(B) Child-to-staff ratios.
(C) Staff qualifications and training.
(D) Implementation of children’s needs and services plan.
(E) Availability of psychosocial and other alternative treatments to the use of psychotropic medications.
(F) Other factors that the department determines contribute to levels of psychotropic drug utilization that warrant additional review.
(G) Confidential interviews of children residing in the facility at the time of the inspection.
(4) The inspection of the facility may include, but is not limited to, the following:
(A) Confidential interviews of children who resided in the facility within the last six months.
(B) Confidential discussions with physicians identified as prescribing the medications.
(b) Following an inspection conducted pursuant to this section, the department, as it deems appropriate, may do either or both of the following:
(1) Share relevant information and observations with county placing agencies, social workers, probation officers, the court, dependency counsel, or the Medical Board of California, as applicable.
(2) Share relevant information and observations with the facility and require the facility to submit a plan, within 30 days of receiving the information and observations from the department, to address any identified risks within the control of the facility related to psychotropic medication. The department shall approve the plan and verify implementation of the plan to determine whether those risks have been remedied.
(c) (1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), until emergency regulations are filed with the Secretary of State, the department may implement this section through all-county letters or similar instructions.
(2) On or before January 1, 2017, the department shall adopt regulations to implement this section. The initial adoption, amendment, or repeal of a regulation authorized by this subdivision is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted for that purpose from the requirements of subdivision (b) of Section 11346.1 of the Government Code. After the initial adoption, amendment, or repeal of an emergency regulation pursuant to this section, the department may twice request approval from the Office of Administrative Law to readopt the regulation as an emergency regulation pursuant to Section 11346.1 of the Government Code. The department shall adopt final regulations on or before January 1, 2018.
(d) Nothing in this section does any of the following:
(1) Replaces or alters other requirements for responding to complaints and making inspections or visits to group homes, including, but not limited to, those set forth in Sections 1534 and 1538.
(2) Prevents or precludes the department from taking any other action permitted under any other law, including any regulation adopted pursuant to this chapter.
(e) This section does not apply to a runaway and homeless youth shelter, as defined in Section 1502.
SEC. 5.
Section 11469 of the Welfare and Institutions Code is amended to read:
11469.
(a) The department shall develop, following consultation with group home providers, the County Welfare Directors Association of California, the Chief Probation Officers of California, the County Behavioral Health Directors Association of California, the State Department of Health Care Services, and stakeholders, performance standards and outcome measures for determining the effectiveness of the care and supervision, as defined in subdivision (b) of Section 11460, provided by group homes under the AFDC-FC program pursuant to Sections 11460 and 11462. These standards shall be designed to measure group home program performance for the client group that the group home program is designed to serve.
(1) The performance standards and outcome measures shall be designed to measure the performance of group home programs in areas over which the programs have some degree of influence, and in other areas of measurable program performance that the department can demonstrate are areas over which group home programs have meaningful managerial or administrative influence.
(2) These standards and outcome measures shall include, but are not limited to, the effectiveness of services provided by each group home program, and the extent to which the services provided by the group home assist in obtaining the child welfare case plan objectives for the child.
(3) In addition, when the group home provider has identified as part of its program for licensing, ratesetting, or county placement purposes, or has included as a part of a child’s case plan by mutual agreement between the group home and the placing agency, specific mental health, education, medical, and other child-related services, the performance standards and outcome measures may also measure the effectiveness of those services.
(b) Regulations regarding the implementation of the group home performance standards system required by this section shall be adopted no later than one year prior to implementation. The regulations shall specify both the performance standards system and the manner by which the AFDC-FC rate of a group home program shall be adjusted if performance standards are not met.
(c) Except as provided in subdivision (d), effective July 1, 1995, group home performance standards shall be implemented. Any group home program not meeting the performance standards shall have its AFDC-FC rate, set pursuant to Section 11462, adjusted according to the regulations required by this section.
(d) A group home program shall be classified at rate classification level 13 or 14 only if all of the following are met:
(1) The program generates the requisite number of points for rate classification level 13 or 14.
(2) The program only accepts children with special treatment needs as determined through the assessment process pursuant to paragraph (2) of subdivision (a) of Section 11462.01.
(3) The program meets the performance standards designed pursuant to this section.
(e) Notwithstanding subdivision (c), the group home program performance standards system shall not be implemented prior to the implementation of the AFDC-FC performance standards system.
(f) On or before January 1, 2016, the department shall develop, following consultation with the County Welfare Directors Association of California, the Chief Probation Officers of California, the County Behavioral Health Directors Association of California, research entities, foster children, advocates for foster children, foster care provider business entities organized and operated on a nonprofit basis, Indian tribes, and other stakeholders, additional performance standards and outcome measures that require group homes to implement programs and services to minimize law enforcement contacts and delinquency petition filings arising from incidents of allegedly unlawful behavior by minors occurring in group homes or under the supervision of group home staff, including individualized behavior management programs, emergency intervention plans, and conflict resolution processes.
(g) On or before January 1, 2017, the department shall develop, following consultation with the County Welfare Directors Association of California, the Chief Probation Officers of California, the County Behavioral Health Directors Association of California, the Medical Board of California, research entities, foster children advocates for foster children, foster care provider business entities organized and operated on a nonprofit basis, Indian tribes, and other stakeholders, additional performance standards and outcome measures that require group homes to implement alternative programs and services, including individualized behavior management programs, emergency intervention plans, and conflict resolution processes.
SEC. 6.
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.

Summary: The California Community Care Facilities Act provides for the licensure and regulation of community care facilities, including foster family homes and group homes, by the State Department of Social Services. A violation of this act is a misdemeanor. Under existing law, a child in a group home may receive mental health services, as deemed necessary by the placing agency and under the case management of that agency. Under existing law, only a juvenile court judicial officer may make orders regarding the administration of psychotropic medications to a child adjudged a dependent or ward of the court and removed from the physical custody of the parent. Existing law requires that the order be based on a request from a physician, indicating the reasons for the request and a description of the child’s diagnosis and behavior, among other requirements. This bill would provide that psychotropic medications may be used at a group home, other than at a runaway and homeless youth shelter, only in accordance with the written directions of the physician prescribing the medication and as authorized by the juvenile court. The bill would require the group home to maintain in the child’s records specified information regarding the administration of those medications. Existing law requires the Director of Social Services, at least annually, to publish and make available to interested persons a list covering all licensed community care facilities, except as specified, and the services for which each facility has been licensed or issued a special permit. This bill would require the department to compile specified information regarding the administration of psychotropic medications to children in group homes and to post that information on the department’s Internet Web site. The bill would require the department, in consultation with the State Department of Health Care Services and stakeholders, to establish a methodology to identify those group homes that have levels of psychotropic drug utilization warranting additional review, as specified. The bill would also require the department, for the facilities identified by the methodology that it establishes, to visit those facilities at least once a year to examine specified factors. The bill would authorize the department, following that inspection, to share relevant information and observations with county placing agencies, social workers, probation officers, the court, dependency counsel, or the Medical Board of California, or share relevant information and observations with the facility and require the facility to submit a plan to the department, within 30 days of receiving the department’s information and observations, to address any identified risks within the control of the facility related to psychotropic medication. The bill would require the department to approve the plan and verify the plan’s implementation to determine whether those identified risks have been remedied. Because the failure of the facility to comply with these provisions would be a misdemeanor, the bill would impose a state-mandated local program. Existing law requires the department, on or before January 1, 2016, in consultation with specified associations and other stakeholders, to develop additional performance standards and outcome measures that require group homes to implement programs and services to minimize law enforcement contacts with minors in group homes or under supervision of group home staff. This bill would require the department, on or before January 1, 2017, in consultation with specified associations and other stakeholders, to develop additional performance standards and outcome measures that require group homes to implement alternative programs and services, as specified. The bill would make related changes. 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.

An act to amend Sections 1507.6 and 1536 of, and to add Sections 1538.8 and 1538.9 to, the Health and Safety Code, and to amend Section 11469 of the Welfare and Institutions Code, relating to juveniles.


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

SECTION 1.
The Legislature hereby finds and declares all of the following:
(a) The county sanitation districts of Los Angeles County (sanitation districts) were established in 1923 under the County Sanitation District Act (Chapter 3 (commencing with Section 4700) of Part 3 of Division 5 of the Health and Safety Code).
(b) The sanitation districts provide regional solid waste management and wastewater collection and treatment services for 5.5 million people in 78 cities and unincorporated communities.
(c) Eighty-four cities in Los Angeles County, the Los Angeles County Flood Control District, and Los Angeles County unincorporated areas are all regulated under a permit for the Municipal Separate Storm Sewer System (MS4), the most recent of which was adopted by the California Regional Water Quality Control Board, Los Angeles Region, in December 2012.
(d) The City of Long Beach is regulated under its own permit for its MS4, the most recent of which was adopted by the regional board in February 2014.
(e) The MS4 is a large, interconnected system that encompasses over 3,000 square miles, and is operated and maintained in large part by the Los Angeles County Flood Control District and used by multiple cities along with Los Angeles County.
(f) The Los Angeles County Flood Control District is primarily focused on operation and maintenance of the MS4 infrastructure for the purposes of flood protection and water conservation.
(g) This extensive system conveys stormwater and nonstormwater across municipal boundaries where it is commingled within the MS4 and then discharged to receiving water bodies, such as the Los Angeles River and San Gabriel River.
(h) It will be necessary for the cities, Los Angeles County Flood Control District, and Los Angeles County to spend millions of dollars per year to comply with the Los Angeles Region MS4 permits.
(i) The Los Angeles Region MS4 permit prohibits the discharge of nonstormwater into the MS4, subject to specified exceptions, and one management technique that can be effective in cleaning up nonstormwater discharges is to divert dry weather runoff into the sanitary sewer system, if sewer and treatment plant capacity are available and other regulatory requirements are met.
(j) Many of the cities, the Los Angeles County Flood Control District, and Los Angeles County are preparing watershed management plans and enhanced watershed management plans in order to identify stormwater and dry weather urban runoff projects and activities that will improve the water quality in the downstream receiving water bodies.
(k) The presiding officers of the cities and the Chair of the Los Angeles County Board of Supervisors serve as members of the boards of directors of the sanitation districts.
(l) The administrative board of directors of the sanitation districts formally requested that the sanitation districts seek the authority to use its civil engineering and water quality expertise to help the cities and county manage stormwater and dry weather urban runoff in order to comply with the Los Angeles Region MS4 permit in an efficient and effective manner.
(m) The Legislature does not intend for the sanitation districts’ activities related to the management and treatment of stormwater and dry weather urban runoff to interfere with the existing water management, flood protection, groundwater replenishment, or water conservation activities of other local or regional agencies.
(n) Because of the unique circumstances of the sanitation districts and the Los Angeles Region MS4, special legislation is necessary to augment the sanitation districts’ powers under the County Sanitation District Act.
SEC. 2.
Section 4730.68 is added to the Health and Safety Code, to read:
4730.68.
(a) This section applies only to county sanitation district numbers 1, 2, 3, 4, 5, 8, 9, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 27, 28, 29, and 34 of Los Angeles County, Newhall Ranch Sanitation District of Los Angeles County, South Bay Cities Sanitation District of Los Angeles County, and Santa Clarita Valley Sanitation District of Los Angeles County. The powers granted in this section supplement the existing powers of each district.
(b) A district may acquire, construct, operate, maintain, and furnish facilities for any of the following purposes:
(1) The diversion of stormwater and dry weather runoff from the stormwater drainage system within the district.
(2) The management and treatment of the stormwater and dry weather runoff.
(3) The discharge of the water to the stormwater drainage system or receiving waters.
(4) The beneficial use of the water.
(c) In order to carry out the powers and purposes granted under this section, the district may exercise any of the powers otherwise granted to a district by this chapter to the extent those powers may be made applicable.
(d) (1) Prior to initiating a stormwater or dry weather runoff program or project within the boundaries of an adjudicated groundwater basin, a district shall consult with the relevant watermaster for a preliminary determination as to whether the project is inconsistent with the adjudication. If the watermaster deems the project to be inconsistent with the adjudication, the watermaster shall recommend, in writing, the measures that are necessary in order to conform the project to the adjudication.
(2) Prior to initiating a stormwater or dry weather runoff project within the service area of a water replenishment district, a district shall consult with the water replenishment district for the purpose of avoiding potential conflicts with water replenishment activities.
(3) Prior to initiating a stormwater or dry weather runoff project, a district shall consult with the Los Angeles County Flood Control District for the purpose of avoiding potential conflicts with flood protection and water conservation activities.
(e) This section does not affect any obligation of a district to obtain a permit that may be required by law for the activities undertaken pursuant to this section.
(f) For purposes of this section, “stormwater” and “dry weather runoff” have the same meaning as in Section 10561.5 of the Water Code.
(g) Nothing in this section shall be construed to require any local agency to participate, financially or otherwise, in a project pursued under the authority granted by this section.
(h) Nothing in this section shall be construed to alter or interfere with any of the following:
(1) Existing water rights to water from any source, including any adjudicated rights allocated by a court judgment or order, including any physical solution, rights issued by the state or a state agency, and rights acquired pursuant to any federal or state statute.
(2) Existing water rights law.
(3) Any rights, remedies, or obligations that may exist pursuant to Article 1 (commencing with Section 1200) or Article 1.5 (commencing with Section 1210) of Chapter 1 of Part 2 of Division 2 of the Water Code, Chapter 10 (commencing with Section 1700) of Part 2 of Division 2 of the Water Code, or Chapter 8.5 (commencing with Section 1501) of Part 1 of Division 1 of the Public Utilities Code.
SEC. 3.
The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the county sanitation districts of Los Angeles County.

Summary: The County Sanitation District Act authorizes a sanitation district to acquire, construct, and complete certain works, property, or structures necessary or convenient for sewage collection, treatment, and disposal. This bill would authorize specified sanitation districts in the County of Los Angeles to acquire, construct, operate, maintain, and furnish facilities for the diversion, management, and treatment of stormwater and dry weather runoff, the discharge of the water to the stormwater drainage system, and the beneficial use of the water. The bill would require a district to consult with the Los Angeles County Flood Control District and the relevant watermaster or water replenishment district prior to initiating a stormwater or dry weather runoff program within the boundaries of an adjudicated groundwater basin or within the service area of a water replenishment district, as applicable. The bill would make related changes. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.

An act to add Section 4730.68 to the Health and Safety Code, relating to public sanitation.


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

SECTION 1.
Section 4652.5 of the Welfare and Institutions Code is amended to read:
4652.5.
(a) (1) An entity that receives payments from one or more regional centers shall contract with an independent accounting firm to obtain an independent audit or review of its financial statements relating to payments made by regional centers subject to all of the following:
(A) If the amount received from the regional center or regional centers during the entity’s fiscal year is more than or equal to five hundred thousand dollars ($500,000) but less than two million dollars ($2,000,000), the entity shall obtain an independent audit or independent review report of its financial statements for the period. Consistent with Subchapter 21 (commencing with Section 58800) of Title 17 of the California Code of Regulations, this subdivision shall also apply to work activity program providers receiving less than two hundred fifty thousand dollars ($250,000).
(B) If the amount received from the regional center or regional centers during the entity’s fiscal year is equal to or more than two million dollars ($2,000,000), the entity shall obtain an independent audit of its financial statements for the period.
(2) This requirement does not apply to payments made using usual and customary rates, as defined by Title 17 of the California Code of Regulations, for services provided by regional centers or social security benefit payments.
(3) This requirement does not apply to state and local governmental agencies, the University of California, or the California State University.
(b) An entity subject to subdivision (a) shall provide copies of the independent audit or independent review report required by subdivision (a), and accompanying management letters, to the vendoring regional center within
30 days after completion of the audit or review.
nine months of the end of the fiscal year for the entity.
(c) Regional centers that receive the audit or review reports required by subdivision (b) shall review and require resolution by the entity for issues identified in the report that have an impact on regional center services. Regional centers shall take appropriate action, up to termination of vendorization, for lack of adequate resolution of issues.
(d) Regional centers shall notify the department of all qualified opinion reports or reports noting significant issues that directly or indirectly impact regional center services within 30 days after receipt. Notification shall include a plan for resolution of issues.
(e) For purposes of this section, an independent review of financial statements shall be performed by an independent accounting firm and shall cover, at a minimum, all of the following:
(1) An inquiry as to the entity’s accounting principles and practices and methods used in applying them.
(2) An inquiry as to the entity’s procedures for recording, classifying, and summarizing transactions and accumulating information.
(3) Analytical procedures designed to identify relationships or items that appear to be unusual.
(4) An inquiry about budgetary actions taken at meetings of the board of directors or other comparable meetings.
(5) An inquiry about whether the financial statements have been properly prepared in conformity with generally accepted accounting principles and whether any events subsequent to the date of the financial statements would have a material effect on the statements under review.
(6) Working papers prepared in connection with a review of financial statements describing the items covered as well as any unusual items, including their disposition.
(f) For purposes of this section, an independent review report shall cover, at a minimum, all of the following:
(1) Certification that the review was performed in accordance with standards established by the American Institute of Certified Public Accountants.
(2) Certification that the statements are the representations of management.
(3) Certification that the review consisted of inquiries and analytical procedures that are lesser in scope than those of an audit.
(4) Certification that the accountant is not aware of any material modifications that need to be made to the statements for them to be in conformity with generally accepted accounting principles.
(g) The department shall not consider a request for adjustments to rates submitted in accordance with Title 17 of the California Code of Regulations by an entity receiving payments from one or more regional centers solely to fund either anticipated or unanticipated changes required to comply with this section.
(h) (1) An entity required to obtain an independent audit or independent review of its financial statement pursuant to subparagraph (A) of paragraph (1) of subdivision (a) may apply to the regional center for, and the regional center shall grant, a two-year exemption from the independent audit or independent review requirement if the regional center does not find issues in the prior year’s independent audit or independent review that have an impact on regional center services.
(2) An entity required to obtain an independent audit of its financial statements pursuant to subparagraph (B) of paragraph (1) of subdivision (a) may apply to the regional center for an exemption from the independent audit requirement, subject to all of the following conditions:
(A) If the independent audit for the prior year resulted in an unmodified opinion or an unmodified opinion with additional communication, the regional center shall grant the entity a two-year exemption.
(B) If the independent audit for the prior year resulted in a qualified opinion and the issues are not material and pervasive, the regional center shall grant the entity a two-year exemption. However, the entity and the regional center shall continue to address issues raised in this independent audit, regardless of whether the exemption is granted.
(3) A regional center shall notify the department of any exemption it grants to an entity that receives a qualified opinion report.

Summary: Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is authorized to contract with regional centers to provide services and supports to individuals with developmental disabilities. Existing law requires an entity that receives payments between $250,000 and $500,000 per year from one or more regional centers to obtain an independent audit or review of its financial statements and requires an entity that receives payments that are equal to or more than $500,000 per year to obtain an independent audit. Existing law exempts payments made using usual and customary rates for services provided by regional centers from these requirements. This bill would instead require an entity to obtain an independent audit or review report of its financial statements relating to payments made by regional centers if it receives payments between $500,000 and $2,000,000 from one or more regional centers and would authorize these entities to apply for, and require the regional center to grant, a 2-year exemption from this requirement if the regional center does not find issues in the audit or review that have an impact on regional center services. The bill would also require an entity to obtain an independent audit if it receives payments that are equal to or more than $2,000,000 and would authorize these entities to apply for, and require the regional center to grant, a 2-year exemption from the audit requirement if the audit resulted in an unmodified opinion, an unmodified opinion with additional communication, or a qualified opinion with issues that are not material and pervasive. The bill would require a regional center to notify the department of any exemption it grants to an entity that receives a qualified opinion report. The bill would also exempt social security benefit payments from these requirements.

An act to amend Section 4652.5 of the Welfare and Institutions Code, relating to developmental services.


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

SECTION 1.
Section 3057.5 of the Business and Professions Code is amended to read:
3057.5.
(a) Notwithstanding any other provision of this chapter, the board shall permit a graduate of a foreign university who meets all of the following requirements to take the examinations for an optometrist license:
(1) Is over 18 years of age.
(2) Is not subject to denial of a license under Section 480.
(3) Has obtained any of the following:
(A) A degree as a doctor of optometry issued by a university located outside of the United States.
(B) A degree from a school of optometry program located outside of the United States that has a minimum of a four year or equivalent curriculum leading to an optometry license in the country where the program is located.
(C) A degree from a school of medicine located outside of the United States and completed the necessary requirements to practice in the field of ophthalmology in the country where the school of medicine is located.
(4) Submits an application to obtain a letter of sponsorship on a form approved by the board.
(5) Pays to the board the fee for an application for licensure prescribed in subdivision (a) of Section 3152.
(b) (1) A graduate of a foreign university shall provide to the board any supporting documents requested by the board to establish that the requirement of paragraph (3) of subdivision (a) has been met. These supporting documents may include, but are not limited to, a curriculum vitae, official examination score, certificate of optometric or medical education, official school transcript, certified copy of optometric or medical diploma, official English translation, certificate of completion of postgraduate training, and certificate of clinical training.
(2) Every document provided pursuant to this subdivision shall be in English or translated into English by a certified United States translation service approved by the board.
(c) The board shall require a graduate of a foreign university to obtain an evaluation of his or her official school transcript by an education evaluation service approved by the board. The board shall determine from the evaluation whether the applicant has met the educational requirements that are reasonable and necessary to ensure that an optometrist has the knowledge to adequately protect the public health and safety.
(d) Notwithstanding paragraph (3) of subdivision (a), if a graduate of a foreign university does not meet the educational requirements that are reasonable and necessary to ensure that an optometrist has the knowledge to adequately protect the public health and safety, the board may establish alternative education requirements for the graduate of a foreign university to meet in order to ensure this knowledge. A graduate of a foreign university shall provide any supporting documents requested by the board to establish that these requirements are met.
(e) The board shall issue a letter of sponsorship, or its equivalent, required by the National Board of Examiners in Optometry, or its equivalent, to permit a graduate of a foreign university to take all examinations required for licensure. This letter of sponsorship shall expire two years from the date of issuance.
SEC. 2.
Section 3058 is added to the Business and Professions Code, to read:
3058.
(a) The board may issue a license to practice optometry to a person who meets all of the following requirements:
(1) Has obtained permission to take the examinations for an optometrist license pursuant to Section 3057.5.
(2) Has successfully passed the required examinations.
(3) Is not subject to denial of a license under Section 480.
(4) Has met the requirements described in paragraphs (1) to (5), inclusive, of subdivision (b) of Section 3041.3.
(5) Has provided the board with any other information requested by the board to the extent necessary to determine that the person has met the requirements for licensure under this chapter.
(6) Has submitted an application on a form approved by the board.
(7) Pays the fee for an application for licensure prescribed in subdivision (a) of Section 3152.
(8) Has no physical or mental impairment related to drugs or alcohol and has not been found mentally incompetent by a licensed psychologist or licensed psychiatrist so that the person is unable to undertake the practice of optometry in a manner consistent with the safety of a patient or the public.
(b) A license issued pursuant to this section shall expire as provided in Section 3146 and may be renewed as provided in this chapter, subject to the same conditions as other licenses issued under this chapter.
SEC. 2.
SEC. 3.
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.

Summary: Existing law, the Optometry Practice Act, creates the State Board of Optometry, which licenses optometrists and regulates their practice. Existing law provides that the State Board of Optometry is required, by regulation, to establish educational and examination requirements for licensure to ensure the competence of optometrists to practice. Existing law requires an applicant for licensure to submit an application that is provided under oath and to pay a prescribed fee. All fees are deposited in the Optometry Fund, which is continuously appropriated to the board to administer the act. Any violation of the act is a crime. Existing law authorizes the board to permit a graduate of a foreign university who meets specified requirements to take the examinations for an optometrist license. This bill would revise the license examination requirements for a graduate of a foreign university to, among other things, require submission of an application and payment of a prescribed fee. This bill would also authorize the board to issue a license to a graduate of a foreign university who meets specified requirements, including requirements that the applicant have permission to take the examinations for an optometrist license, submit an application on a form approved by the board, and pay a prescribed fee for an application for licensure. By increasing the amount of moneys deposited into a continuously appropriated fund, this bill would make an appropriation. Because the application would be required to be provided under oath, this bill would expand the scope of an existing crime and create 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.

An act to amend Section 3057.5 of
, and to add Section 3058 to,
the Business and Professions Code, relating to healing arts, and making an appropriation therefor.