BILL NUMBER: SB 360	CHAPTERED
	BILL TEXT

	CHAPTER  418
	FILED WITH SECRETARY OF STATE  OCTOBER 2, 2011
	APPROVED BY GOVERNOR  OCTOBER 2, 2011
	PASSED THE SENATE  SEPTEMBER 9, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 7, 2011
	AMENDED IN ASSEMBLY  JULY 7, 2011
	AMENDED IN SENATE  MAY 10, 2011
	AMENDED IN SENATE  APRIL 14, 2011
	AMENDED IN SENATE  MARCH 22, 2011

INTRODUCED BY   Senator DeSaulnier

                        FEBRUARY 15, 2011

   An act to amend Sections 11161.5, 11162.1, 11165, and 11165.1 of,
and to add Sections 11165.2 and 11165.3 to, the Health and Safety
Code, relating to controlled substances.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 360, DeSaulnier. Controlled Substance Utilization Review and
Evaluation System.
   Existing law classifies certain controlled substances into
designated schedules. Existing law requires the Department of
Justice, contingent upon the availability of adequate funds from
various funds related to health care, as specified, 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 or dispense these
controlled substances.
   Existing law defines a security printer as a person approved to
produce controlled substance prescription forms. Existing law
requires that prescription forms for controlled substance
prescriptions be obtained from security printers approved by the
Department of Justice. These provisions authorize the department to
approve a security printer who provides specified information to the
department, including the location, names, and titles of the
applicant's agent for service of process, all principal corporate
officers, if any, and all managing general partners, if any. Existing
law also requires those persons to provide a signed statement
indicating whether they have ever been convicted of, or pled no
contest to, a violation of any law or ordinance. Existing law
authorizes the department to revoke its approval of a security
printer for a violation of these provisions or action that would
permit a denial.
   This bill would expand those requirements imposed on an applicant
for approval as a security printer to additionally require the
applicant to provide the location, names, and titles of any
individual owner, partner, corporate officer, manager, agent,
representative, employee, or subcontractor of the applicant who has
direct access to, or management or control of, controlled substance
prescription forms and require those persons to submit the signed
statement described above. The bill would also make conforming and
related changes. In addition, the bill would require that controlled
substance prescription forms provided in person be restricted to
established customers. The bill would require security printers to
obtain photo identification from the customer and maintain a log of
the information, and to report any theft or loss of controlled
substance prescription forms to the department via fax or e-mail
within 24 hours of the incident. The bill would also require that
controlled substance prescription forms be shipped only to the
prescriber's address on file and verified with the federal Drug
Enforcement Administration or the Medical Board of California. The
bill would specify penalties for certain violations, including, among
others, failure to comply with security printer guidelines, failure
to take reasonable precautions to prevent any dishonest act or
illegal activity related to the access and control of security
prescription forms, and theft or fraudulent use of a prescriber's
identity in order to obtain security prescription forms. By creating
new crimes, this bill would impose a state-mandated local program.
   Existing law governs the prescription forms for controlled
substances. Among other things, the forms are required to include the
preprinted name, category of licensure, license number, and federal
controlled substance registration number of the prescribing
practitioner.
   This bill would also require the forms to include the address of
the prescribing practitioner. The bill would make an additional
change relating to forms ordered for use by prescribers when treating
patients in licensed health care facilities or certain clinics that
are exempt from other requirements governing these forms. The bill
would provide that prescription forms that are not in compliance with
these provisions shall not be accepted after July 1, 2012.
   The bill would establish a specified process by which a licensed
health care practitioner or a pharmacist may obtain approval to
access information stored on the Internet regarding the controlled
substance history of a patient, as specified.
   The bill would require that the theft or loss of prescription
forms be reported immediately to the department, as specified. The
bill would also require the department to conduct audits of the CURES
prescription drug monitoring system and authorize the department to
establish a system for issuing citations, and for assessing and
imposing administrative fines, not to exceed $2,500 for each
violation, that would be deposited in the CURES Program Special Fund,
for violations of the program, as specified.
   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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11161.5 of the Health and Safety Code is
amended to read:
   11161.5.  (a) Prescription forms for controlled substance
prescriptions shall be obtained from security printers approved by
the Department of Justice.
   (b) The department may approve security printer applications after
the applicant has provided the following information:
   (1) Name, address, and telephone number of the applicant.
   (2) Policies and procedures of the applicant for verifying the
identity of the prescriber ordering controlled substance prescription
forms.
   (3) Policies and procedures of the applicant for verifying
delivery of controlled substance prescription forms to prescribers.
   (4) (A) The location, names, and titles of the applicant's agent
for service of process in this state; all principal corporate
officers, if any; all managing general partners, if any; and any
individual owner, partner, corporate officer, manager, agent,
representative, employee, or subcontractor of the applicant who has
direct access to, or management or control of, controlled substance
prescription forms.
   (B) A report containing this information shall be made on an
annual basis and within 30 days after any change of office, principal
corporate officers, managing general partner, or of any person
described in subparagraph (A).
   (5) (A) A signed statement indicating whether the applicant, any
principal corporate officer, any managing general partner, or any
individual owner, partner, corporate officer, manager, agent,
representative, employee, or subcontractor of the applicant who has
direct access to, or management or control of, controlled substance
prescription forms, has ever been convicted of, or pled no contest
to, a violation of any law of a foreign country, the United States,
or any state, or of any local ordinance.
   (B) The department shall provide the applicant and any individual
owner, partner, corporate officer, manager, agent, representative,
employee, or subcontractor of the applicant who has direct access to,
or management or control of, controlled substance prescription
forms, with the means and direction to provide fingerprints and
related information, in a manner specified by the department, for the
purpose of completing state, federal, or foreign criminal background
checks.
   (C) Any applicant described in subdivision (b) shall submit his or
her fingerprint images and related information to the department,
for the purpose of the department obtaining information as to the
existence and nature of a record of state, federal, or foreign level
convictions and state, federal, or foreign level arrests for which
the department establishes that the applicant was released on bail or
on his or her own recognizance pending trial, as described in
subdivision (l) of Section 11105 of the Penal Code. Requests for
federal level criminal offender record information received by the
department pursuant to this section shall be forwarded to the Federal
Bureau of Investigation by the department.
   (D) The department shall assess against each security printer
applicant a fee determined by the department to be sufficient to
cover all processing, maintenance, and investigative costs generated
from or associated with completing state, federal, or foreign
background checks and inspections of security printers pursuant to
this section with respect to that applicant; the fee shall be paid by
the applicant at the time he or she submits the security printer
application, fingerprints, and related information to the department.

   (E) The department shall retain fingerprint impressions and
related information for subsequent arrest notification pursuant to
Section 11105.2 of the Penal Code for all applicants.
   (c) The department may, within 60 calendar days of receipt of the
application from the applicant, deny the security printer
application.
   (d) The department may deny a security printer application on any
of the following grounds:
   (1) The applicant, any individual owner, partner, corporate
officer, manager, agent, representative, employee, or subcontractor
for the applicant, who has direct access, management, or control of
controlled substance prescription forms, has been convicted of a
crime. A conviction within the meaning of this paragraph means a plea
or verdict of guilty or a conviction following a plea of nolo
contendere. Any action which a board is permitted to take following
the establishment of a conviction may be taken when the time for
appeal has elapsed, the judgment of conviction has been affirmed on
appeal, or when an order granting probation is made suspending the
imposition of sentence, irrespective of a subsequent order under the
provisions of Section 1203.4 of the Penal Code.
   (2) The applicant committed any act involving dishonesty, fraud,
or deceit with the intent to substantially benefit himself, herself,
or another, or substantially injure another.
   (3) The applicant committed any act that would constitute a
violation of this division.
   (4) The applicant knowingly made a false statement of fact
required to be revealed in the application to produce controlled
substance prescription forms.
   (5) The department determines that the applicant failed to
demonstrate adequate security procedures relating to the production
and distribution of controlled substance prescription forms.
   (6) The department determines that the applicant has submitted an
incomplete application.
   (7) As a condition for its approval as a security printer, an
applicant shall authorize the Department of Justice to make any
examination of the books and records of the applicant, or to visit
and inspect the applicant during business hours, to the extent deemed
necessary by the board or department to properly enforce this
section.
   (e) An approved applicant shall submit an exemplar of a controlled
substance prescription form, with all security features, to the
Department of Justice within 30 days of initial production.
   (f) The department shall maintain a list of approved security
printers and the department shall make this information available to
prescribers and other appropriate government agencies, including the
Board of Pharmacy.
   (g) Before printing any controlled substance prescription forms, a
security printer shall verify with the appropriate licensing board
that the prescriber possesses a license and current prescribing
privileges which permits the prescribing of controlled substances
with the federal Drug Enforcement Administration (DEA).
   (h) Controlled substance prescription forms shall be provided
directly to the prescriber either in person, by certified mail, or by
a means that requires a signature signifying receipt of the package
and provision of that signature to the security printer. Controlled
substance prescription forms provided in person shall be restricted
to established customers. Security printers shall obtain a photo
identification from the customer and maintain a log of this
information. Controlled substance prescription forms shall be shipped
only to the prescriber's address on file and verified with the
federal Drug Enforcement Administration or the Medical Board of
California.
   (i) Security printers shall retain ordering and delivery records
in a readily retrievable manner for individual prescribers for three
years.
   (j) Security printers shall produce ordering and delivery records
upon request by an authorized officer of the law as defined in
Section 4017 of the Business and Professions Code.
   (k) Security printers shall report any theft or loss of controlled
substance prescription forms to the Department of Justice via fax or
e-mail within 24 hours of the theft or loss.
   (l) (1) The department shall impose restrictions, sanctions, or
penalties, subject to subdivisions (m) and (n), against security
printers who are not in compliance with this division pursuant to
regulations implemented pursuant to this division and shall revoke
its approval of a security printer for a violation of this division
or action that would permit a denial pursuant to subdivision (d) of
this section.
   (2) When the department revokes its approval, it shall notify the
appropriate licensing boards and remove the security printer from the
list of approved security printers.
   (m) The following violations by security printers shall be
punishable pursuant to subdivision (n):
   (1) Failure to comply with the Security Printer Guidelines
established by the Security Printer Program as a condition of
approval.
   (2) Failure to take reasonable precautions to prevent any
dishonest act or illegal activity related to the access and control
of security prescription forms.
   (3) Theft or fraudulent use of a prescriber's identity in order to
obtain security prescription forms.
   (n) A security printer approved pursuant to subdivision (b) shall
be subject to the following penalties for actions leading to the
denial of a security printer application specified in subdivision (d)
or for a violation specified in subdivision (m):
   (1) For a first violation, a fine not to exceed one thousand
dollars ($1,000).
   (2) For a second or subsequent violation, a fine not to exceed two
thousand five hundred dollars ($2,500) for each violation.
   (3) For a third or subsequent violation, a filing of an
administrative disciplinary action seeking to suspend or revoke
security printer approval.
  SEC. 2.  Section 11162.1 of the Health and Safety Code is amended
to read:
   11162.1.  (a) The prescription forms for controlled substances
shall be printed with the following features:
   (1) A latent, repetitive "void" pattern shall be printed across
the entire front of the prescription blank; if a prescription is
scanned or photocopied, the word "void" shall appear in a pattern
across the entire front of the prescription.
   (2) A watermark shall be printed on the backside of the
prescription blank; the watermark shall consist of the words
"California Security Prescription."
   (3) A chemical void protection that prevents alteration by
chemical washing.
   (4) A feature printed in thermochromic ink.
   (5) An area of opaque writing so that the writing disappears if
the prescription is lightened.
   (6) A description of the security features included on each
prescription form.
   (7) (A) Six quantity check off boxes shall be printed on the form
so that the prescriber may indicate the quantity by checking the
applicable box where the following quantities shall appear:
   1-24
   25-49
   50-74
   75-100
   101-150
   151 and over.
   (B) In conjunction with the quantity boxes, a space shall be
provided to designate the units referenced in the quantity boxes when
the drug is not in tablet or capsule form.
   (8) Prescription blanks shall contain a statement printed on the
bottom of the prescription blank that the "Prescription is void if
the number of drugs prescribed is not noted."
   (9) The preprinted name, category of licensure, license number,
federal controlled substance registration number, and address of the
prescribing practitioner.
   (10) Check boxes shall be printed on the form so that the
prescriber may indicate the number of refills ordered.
   (11) The date of origin of the prescription.
   (12) A check box indicating the prescriber's order not to
substitute.
   (13) An identifying number assigned to the approved security
printer by the Department of Justice.
   (14) (A) A check box by the name of each prescriber when a
prescription form lists multiple prescribers.
   (B) Each prescriber who signs the prescription form shall identify
himself or herself as the prescriber by checking the box by his or
her name.
   (b) Each batch of controlled substance prescription forms shall
have the lot number printed on the form and each form within that
batch shall be numbered sequentially beginning with the numeral one.
   (c) (1) A prescriber designated by a licensed health care
facility, a clinic specified in Section 1200, or a clinic specified
in subdivision (a) of Section 1206 that has 25 or more physicians or
surgeons may order controlled substance prescription forms for use by
prescribers when treating patients in that facility without the
information required in paragraph (9) of subdivision (a) or paragraph
(3) of this subdivision.
   (2) Forms ordered pursuant to this subdivision shall have the
name, category of licensure, license number, and federal controlled
substance registration number of the designated prescriber and the
name, address, category of licensure, and license number of the
licensed health care facility the clinic specified in Section 1200,
or the clinic specified in Section 1206 that has 25 or more
physicians or surgeons preprinted on the form. Licensed health care
facilities or clinics exempt under Section 1206 are not required to
preprint the category of licensure and license number of their
facility or clinic.
   (3) Forms ordered pursuant to this section shall not be valid
prescriptions without the name, category of licensure, license
number, and federal controlled substance registration number of the
prescriber on the form.
   (4) (A) Except as provided in subparagraph (B), the designated
prescriber shall maintain a record of the prescribers to whom the
controlled substance prescription forms are issued, that shall
include the name, category of licensure, license number, federal
controlled substance registration number, and quantity of controlled
substance prescription forms issued to each prescriber. The record
shall be maintained in the health facility for three years.
   (B) Forms ordered pursuant to this subdivision that are printed by
a computerized prescription generation system shall not be subject
to subparagraph (A) or paragraph (7) of subdivision (a). Forms
printed pursuant to this subdivision that are printed by a
computerized prescription generation system may contain the
prescriber's name, category of professional licensure, license
number, federal controlled substance registration number, and the
date of the prescription.
   (d) This section shall become operative on January 1, 2012.
Prescription forms not in compliance with this division shall not be
valid or accepted after July 1, 2012.
  SEC. 3.  Section 11165 of the Health and Safety Code is amended to
read:
   11165.  (a)  To assist 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
from the Contingent Fund of the Medical Board of California, the
Pharmacy Board Contingent Fund, the State Dentistry Fund, the Board
of Registered Nursing Fund, and the Osteopathic Medical Board of
California Contingent 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 or dispense these controlled substances.
   (b) The reporting of Schedule III and Schedule IV controlled
substance prescriptions to CURES shall be contingent upon the
availability of adequate funds from the Department of Justice. The
department may seek and use grant funds to pay the costs incurred
from the reporting of controlled substance prescriptions to CURES.
Funds shall not be appropriated from the Contingent Fund of the
Medical Board of California, the Pharmacy Board Contingent Fund, the
State Dentistry Fund, the Board of Registered Nursing Fund, the
Naturopathic Doctor's Fund, or the Osteopathic Medical Board of
California Contingent Fund to pay the costs of reporting Schedule III
and Schedule IV controlled substance prescriptions to CURES.
   (c) 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 persons or 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.
   (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 or clinic
shall provide the following information to the Department of Justice
on a weekly basis and in a format specified by the Department of
Justice:
   (1) Full name, address, and the 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 and license number;
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, and federal
controlled substance registration number.
   (4) NDC (National Drug Code) number of the controlled substance
dispensed.
   (5) Quantity of the controlled substance dispensed.
   (6) ICD-9 (diagnosis 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) This section shall become operative on January 1, 2005.
  SEC. 4.  Section 11165.1 of the Health and Safety Code is amended
to read:
   11165.1.  (a) (1) A licensed health care practitioner eligible to
prescribe Schedule II, Schedule III, or Schedule IV controlled
substances or a pharmacist may provide a notarized application
developed by the Department of Justice to obtain approval to access
information stored on the Internet regarding the controlled substance
history of a patient maintained within the Department of Justice,
and the department may release to that practitioner or pharmacist,
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).
   (A) 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 Drug Enforcement Administration
(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.
   (B) Any authorized subscriber shall notify the Department of
Justice within 10 days of any changes to the subscriber account.
   (2) To allow sufficient time for licensed health care
practitioners eligible to prescribe Schedule II, Schedule III, or
Schedule IV controlled substances and a pharmacist to apply and
receive access to PDMP, a written request may be made, until July 1,
2012, and the Department of Justice may release to that practitioner
or pharmacist the history of controlled substances dispensed to an
individual under his or her care based on data contained in CURES.
   (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 shall be considered 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.
  SEC. 5.  Section 11165.2 is added to the Health and Safety Code, to
read:
   11165.2.  (a) The Department of Justice may conduct audits of the
CURES Prescription Drug Monitoring Program system and its users.
   (b) The Department of Justice may establish, by regulation, a
system for the issuance to a CURES Prescription Drug Monitoring
Program subscriber of a citation which may contain an order of
abatement, or an order to pay an administrative fine assessed by the
Department of Justice if the subscriber is in violation of any
provision of this chapter or any regulation adopted by the Department
of Justice pursuant to this chapter.
   (c) The system shall contain the following provisions:
   (1) Citations shall be in writing and shall describe with
particularity the nature of the violation, including specific
reference to the provision of law or regulation of the department
determined to have been violated.
   (2) Whenever appropriate, the citation shall contain an order of
abatement establishing a reasonable time for abatement of the
violation.
   (3) In no event shall the administrative fine assessed by the
department exceed two thousand five hundred dollars ($2,500) for each
violation. In assessing a fine, due consideration shall be given to
the appropriateness of the amount of the fine with respect to such
factors as the gravity of the violation, the good faith of the
subscribers, and the history of previous violations.
   (4) An order of abatement or a fine assessment issued pursuant to
a citation shall inform the subscriber that if the subscriber desires
a hearing to contest the finding of a violation, a hearing shall be
requested by written notice to the CURES Prescription Drug Monitoring
Program within 30 days of the date of issuance of the citation or
assessment. Hearings shall be held pursuant to Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
   (5) In addition to requesting a hearing, the subscriber may,
within 10 days after service of the citation, request in writing an
opportunity for an informal conference with the department regarding
the citation. At the conclusion of the informal conference, the
department may affirm, modify, or dismiss the citation, including any
fine levied or order of abatement issued. The decision shall be
deemed to be a final order with regard to the citation issued,
including the fine levied or the order of abatement which could
include permanent suspension to the system, a monetary fine, or both,
depending on the gravity of the violation. However, the subscriber
does not waive its right to request a hearing to contest a citation
by requesting an informal conference. If the citation is affirmed, a
formal hearing may be requested within 30 days of the date the
citation was affirmed. If the citation is dismissed after the
informal conference, the request for a hearing on the matter of the
citation shall be deemed to be withdrawn. If the citation, including
any fine levied or order of abatement, is modified, the citation
originally issued shall be considered withdrawn and a new citation
issued. If a hearing is requested for a subsequent citation, it shall
be requested within 30 days of service of that subsequent citation.
   (6) Failure of a subscriber to pay a fine within 30 days of the
date of assessment or comply with an order of abatement within the
fixed time, unless the citation is being appealed, may result in
disciplinary action taken by the department. If a citation is not
contested and a fine is not paid, the subscriber account will be
terminated:
   (A) A citation may be issued without the assessment of an
administrative fine.
   (B) Assessment of administrative fines may be limited to only
particular violations of law or department regulations.
   (d) Notwithstanding any other provision of law, if a fine is paid
to satisfy an assessment based on the finding of a violation, payment
of the fine shall be represented as a satisfactory resolution of the
matter for purposes of public disclosure.
   (e) Administrative fines collected pursuant to this section shall
be deposited in the CURES Program Special Fund, available upon
appropriation by the Legislature. These special funds shall provide
support for costs associated with informal and formal hearings,
maintenance, and updates to the CURES Prescription Drug Monitoring
Program.
   (f) The sanctions authorized under this section shall be separate
from, and in addition to, any other administrative, civil, or
criminal remedies; however, a criminal action may not be initiated
for a specific offense if a citation has been issued pursuant to this
section for that offense, and a citation may not be issued pursuant
to this section for a specific offense if a criminal action for that
offense has been filed.
   (g) Nothing in this section shall be deemed to prevent the
department from serving and prosecuting an accusation to suspend or
revoke a subscriber if grounds for that suspension or revocation
exist.
  SEC. 6.  Section 11165.3 is added to the Health and Safety Code, to
read:
                             11165.3.  The theft or loss of
prescription forms shall be reported immediately by the security
printer or affected prescriber to the CURES Prescription Drug
Monitoring Program, but no later than three days after the discovery
of the theft or loss. This notification may be done in writing
utilizing the Bureau of Narcotic Enforcement 1175 Reporting
Theft/Loss Form or may be reported by the authorized subscriber
through the CURES Prescription Drug Monitoring Program.
  SEC. 7.  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.