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.