Amended in Senate September 1, 2015

Amended in Senate June 30, 2015

Amended in Assembly May 11, 2015

Amended in Assembly April 30, 2015

Amended in Assembly April 23, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 684


Introduced by Assembly Members Alejo and Bonilla

February 25, 2015


An act to amendbegin delete Section 3137 of, and to add and repeal Sections 655.1 and 2556.1 of,end deletebegin insert Sections 2546.2, 2546.9, 2550.1, 2556, 2567, 3010.5, 3011, and 3013 of, to add Sections 2556.1 and 3020 to, to add and repeal Section 2556.2 of, and to repeal and add Section 655 of,end insert the Business and Professions Code, relating to healing arts, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 684, as amended, Alejo. begin deleteHealing arts: licensees: disciplinary actions. end deletebegin insertState Board of Optometry: optometrists: nonresident contact lens sellers: registered dispensing opticians.end insert

Existing law prohibits a licensed optometrist and a registered dispensing optician from having any membership, proprietary interest, coownership, landlord-tenant relationship, or any profit-sharing arrangement in any form, directly or indirectly, with each other. Existing law prohibits a licensed optometrist from having any membership, proprietary interest, coownership, landlord-tenant relationship, or any profit-sharing arrangement in any form, directly or indirectly, either by stock ownership, interlocking directors, trusteeship, mortgage, trust deed, or otherwise with any person who is engaged in the manufacture, sale, or distribution to physicians and surgeons, optometrists, or dispensing opticians of lenses, frames, optical supplies, optometric appliances or devices or kindred products. Existing law makes a violation of these provisions by a licensed optometrist and any other persons, whether or not a healing arts licensee, who participates with a licensedbegin delete optometristend deletebegin insert optometrist,end insert subject to a crime.

Under existing law, the Medical Board of California is responsible for the registration and regulation ofbegin insert nonresident contact lens sellers andend insert dispensing opticians.begin insert Existing law requires fees collected from nonresident contact lens sellers to be deposited in the Dispensing Opticians Fund, and to be available, upon appropriation, to the Medical Board of California. Existing law requires fees collected from registered dispensing optician to be paid into the Contingent Fund of the Medical Board of California. Existing law makes a violation of the registered dispensing optician provisions a crime.end insert Existingbegin delete lawend deletebegin insert law, the Optometry Practice Act,end insert makes the State Board of Optometry responsible for the licensurebegin insert and regulationend insert of optometrists.begin insert A violation of the Optometry Practice Act is a crime. Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime.end insert

begin insert

This bill would repeal those prohibitions. The bill would prohibit a licensed optometrist from having any membership, proprietary interest, coownership, or any profit-sharing arrangement, either by stock ownership, interlocking directors, trusteeship, mortgage, or trust deed, with any registered dispensing optician or any person who is engaged in the manufacture, sale, or distribution to physicians and surgeons, optometrists, or registered dispensing opticians of lenses, frames, optical supplies, optometric appliances or devices or kindred products, except as otherwise authorized. The bill would authorize a registered dispensing optician to operate, own, or have an ownership interest in a licensed health care service plan and to directly or indirectly provide products and services to the health care service plan or its contracted providers and enrollees, if the health care service plan meets certain requirements. The bill would authorize an optometrist, a registered dispensing optician, and a health care service plan to execute a lease or other written agreement giving rise to a direct or indirect landlord-tenant relationship if specified conditions are contained in a written agreement, as provided. The bill would require a landlord or tenant to comply with an enforcement entity’s request to inspect a lease agreement. Because the failure to comply with that request would be a crime under specified acts, the bill would impose a state-mandated local program. The bill would prohibit a registered dispensing optician from having any membership, proprietary interest, coownership, or profit sharing arrangement either by stock ownership, interlocking directors, trusteeship, mortgage, or trust deed, with an optometrist, except as authorized. The bill would make a violation of these provisions a crime. By creating a new crime, the bill would impose a state-mandated local program.

end insert
begin insert

This bill would instead make the State Board of Optometry responsible for the registration and regulation of nonresident contact lens sellers and dispensing opticians. The bill would direct fees collected from registered dispensing opticians and persons seeking registration as a dispensing optician to be paid into the Dispensing Opticians Fund, and to be available, upon appropriation, to the State Board of Optometry.

end insert
begin insert

Existing law makes it unlawful to, among other things, advertise the furnishing of, or to furnish, the services of a refractionist, an optometrist, or a physician and surgeon, or to directly or indirectly employ or maintain on or near the premises used for optical dispensing, a refractionist, an optometrist, a physician and surgeon, or a practitioner of any other profession for the purpose of any examination or treatment of the eyes.

end insert
begin insert

This bill, except as specified, would make it unlawful for a registered dispensing optician to, among other things, advertise the furnishing of, or to furnish, the services of an optometrist or a physician and surgeon or to directly employ an optometrist or physician and surgeon for the purpose of any examination or treatment of the eyes. The bill would authorize the State Board of Optometry, by regulation, to impose and issue administrative fines and citations for a violation of these provisions, as specified. The bill would authorize the State Board of Optometry to inspect any premises at which the business of a registered dispensing optician is co-located with the practice of an optometrist for the purposes of determining compliance with the aforementioned written lease agreement provisions. The bill would also authorize the State Board of Optometry to take disciplinary action against a party who fails to comply with the inspection and would require the State Board of Optometry to provide specified copies of the inspection results. Because the failure to comply with the inspection would be a crime under the registered dispensing provisions, the bill would impose a state-mandated local program

end insert
begin delete

This bill, until January 1, 2017, would exempt a licensed optometrist or an individual, corporation, or firm operating as a registered dispensing optician licensed or registered before the effective date of the bill, or an employee of such an entity, from being subject to any action by the Medical Board of California, the State Board of Optometry, another state agency, or a district attorney with enforcement authority for engaging in any of the aforementioned business relationships. The bill, with respect to an action subject to the exemption, would toll, for the effective period of the exemption, specific limitation periods imposed on the filing of accusations.

end delete
begin delete

Existing law makes it unlawful to, among other things, advertise the furnishing of, or to furnish, the services of a refractionist, an optometrist, or a physician and surgeon, or to directly or indirectly employ or maintain on or near the premises used for optical dispensing, a refractionist, an optometrist, a physician and surgeon, or a practitioner of any other profession for the purpose of any examination or treatment of the eyes.

end delete

This bill, until January 1,begin delete 2017,end deletebegin insert 2019,end insert would prohibit an individual, corporation, or firm operating as a registered dispensing optician before the effective date of the bill, or an employee of such an entity, from being subject to any action for engaging in that aforementioned begin insertunlawful end insertconduct.

begin insert

Under existing law, the State Board of Optometry consists of 11 members, 6 licensee members and 5 public members.

end insert
begin insert

This bill would require one of the nonpublic members to be a registered dispensing optician and would require the Governor to make that appointment. The bill would establish within the State Board of Optometry a Registered Dispensing Optician Committee to oversee the registration and enforcement of registered dispensing opticians, as provided.

end insert
begin insert

This bill would make various conforming changes.

end insert
begin insert

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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P5    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 655 of the end insertbegin insertBusiness and Professions Codeend insert
2begin insert is repealed.end insert

begin delete
3

655.  

(a) No person licensed under Chapter 7 (commencing
4with Section 3000) of this division may have any membership,
5proprietary interest, coownership, landlord-tenant relationship, or
6any profit-sharing arrangement in any form, directly or indirectly,
7with any person licensed under Chapter 5.5 (commencing with
8Section 2550) of this division.

9(b) No person licensed under Chapter 5.5 (commencing with
10Section 2550) of this division may have any membership,
11proprietary interest, coownership, landlord-tenant relationship, or
12any profit sharing arrangement in any form directly or indirectly
13with any person licensed under Chapter 7 (commencing with
14Section 3000) of this division.

15(c) No person licensed under Chapter 7 (commencing with
16Section 3000) of this division may have any membership,
17proprietary interest, coownership, landlord-tenant relationship, or
18any profit-sharing arrangement in any form, directly or indirectly,
19either by stock ownership, interlocking directors, trusteeship,
20mortgage, trust deed, or otherwise with any person who is engaged
21in the manufacture, sale, or distribution to physicians and surgeons,
22optometrists, or dispensing opticians of lenses, frames, optical
23supplies, optometric appliances or devices or kindred products.

24Any violation of this section constitutes a misdemeanor as to
25such person licensed under Chapter 7 (commencing with Section
263000) of this division and as to any and all persons, whether or
27not so licensed under this division, who participate with such
28licensed person in a violation of any provision of this section.

end delete
29begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 655 is added to the end insertbegin insertBusiness and Professions
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert655.end insert  

Notwithstanding any other law:

32(a) No optometrist licensed under Chapter 7 (commencing with
33Section 3000) may have any membership, proprietary interest,
P6    1coownership, or any profit-sharing arrangement, either by stock
2ownership, interlocking directors, trusteeship, mortgage, or trust
3deed, with any registered dispensing optician, as described in
4Chapter 5.5 (commencing with Section 2550), or any person who
5is engaged in the manufacture, sale, or distribution to physicians
6and surgeons, optometrists, or registered dispensing opticians of
7lenses, frames, optical supplies, optometric appliances or devices
8or kindred products, except as otherwise permitted under this
9section.

10(b) A registered dispensing optician may operate, own, or have
11an ownership interest in a health care service plan licensed
12pursuant to Chapter 2.2 (commencing with Section 1340) of
13Division 2 of the Health and Safety Code and may directly or
14indirectly provide products and services to the health care service
15plan or its contracted providers and enrollees if the health care
16service plan has a current and active license with the Department
17of Managed Health Care and is in compliance with all laws and
18regulations applicable to the health care service plan. Any
19complaints received by the Department of Managed Health Care
20related to the services provided by an optometrist or any findings
21by the Department of Managed Health Care that reflect
22substandard care or a potential violation of the Optometry Practice
23Act (Chapter 7 (commencing with Section 3000)) by an optometrist
24shall be forwarded to the State Board of Optometry.

25(c) An optometrist, a registered dispensing optician, and a health
26care service plan may execute a lease or other written agreement
27giving rise to a direct or indirect landlord-tenant relationship if
28all of the following conditions are contained in a written agreement
29establishing the landlord-tenant relationship:

30(1) The optometry practice shall be owned by the optometrist
31and in every aspect be under the optometrist’s exclusive control,
32including, but not limited to, the selection and supervision of
33optometric staff, the scheduling of patients, the amount of time the
34optometrist spends with patients, fees charged for optometric
35products and services, the examination procedures and treatment
36provided to patients, and the optometrist’s contracting with health
37care service plans. This paragraph shall not preclude a lease from
38including commercially reasonable terms that do any of the
39following:

P7    1(A) Require the provision of optometric services at the premises
2during certain days and hours.

3(B) Restrict the use of the premises for the sale or offer for sale
4of spectacles, frames, lenses, contact lenses, or other ophthalmic
5products, except that the optometrist shall be permitted to sell
6therapeutic ophthalmic products if the landlord does not offer any
7substantially similar therapeutic ophthalmic products for sale.

8(C) Enter the optometrist into an agreement with a health care
9service plan or health insurer.

10(D) Permit the landlord to directly or indirectly provide
11furnishings and equipment in the leased space.

12(2) The patient records shall be the sole property of the
13optometrist. Only the optometrist and those persons who have been
14authorized, in writing, by the optometrist shall have access to the
15patient records and the examination room, except as otherwise
16provided by law.

17(3) The optometrist’s leased space shall be definite and distinct
18from the space occupied by the other occupants of the premises,
19have a sign designating that the leased space is occupied by an
20independent optometrist or optometrists, and be accessible to the
21optometrist after hours or in the case of an emergency, subject to
22the facility’s general accessibility. This paragraph shall not require
23a separate entrance to the optometrist’s leased space.

24(4) All signs, advertising, and displays shall be separate and
25distinct from that of the other occupants and shall have the
26optometrist’s name and the word “optometrist” prominently
27displayed in connection therewith. This paragraph shall not
28prohibit optometrists or registered dispensing opticians,
29individually or jointly, from advertising their practice locations
30in the leased premises, their participation in any health care
31service plan’s network, or the health care service plan’s products
32in which they participate.

33(5) There shall be no signs displayed on any part of the premises
34or in any advertising indicating that the optometrist is employed
35or controlled by the landlord.

36(6) Except for a statement that an independent Doctor of
37Optometry is located on the premises and in-store pricing signs,
38as permitted by this subdivision, the landlord shall not link its
39advertising with the optometrist’s name, practice, or fees.

P8    1(7) The optometrist shall not be precluded from collecting fees
2for services that are not included in a health care service plan’s
3products and services contained in the health care service plan’s
4provider agreement with the optometrist, subject to any disclosure
5requirements to the patients and enrollees.

6(8) The term of the lease shall be no less than one year and shall
7not require the optometrist to contract exclusively with a health
8care service plan. The optometrist may terminate the lease
9according to the terms of the lease. The landlord may terminate
10the lease for any of the following reasons:

11(A) The imposition of restrictions, suspension, or revocation of
12the optometrist’s license or if the optometrist is or becomes
13ineligible to participate in state or federal government-funded
14programs.

15(B) The termination of any underlying lease where the
16optometrist has subleased space, or the optometrist’s failure to
17comply with the underlying lease provisions that are made
18applicable to the optometrist.

19(C) Other reasons pursuant to the terms of the lease or permitted
20under the Civil Code, unrelated to the practice of optometry or
21the sale of optical goods, except as otherwise provide by this
22section.

23(9) The landlord shall act in good faith in terminating the lease,
24and in no case shall the landlord terminate the lease for reasons
25that constitute interference with the practice of optometry.

26(10) The lease or lease terms and payments shall not be based
27on the number of eye exams performed, prescriptions written,
28patient referrals, or the sale or promotion of the products of a
29registered dispensing optician or an optical company.

30(11) The landlord shall not terminate the lease solely because
31of a report, complaint, or allegation filed by the optometrist against
32the landlord, a registered dispensing optician, or a health care
33service plan to the State Board of Optometry, the Medical Board
34of California, the Department of Managed Health Care, or any
35law enforcement or regulatory agency.

36(12) The landlord shall not interfere with an outgoing
37optometrist’s efforts to inform the optometrist’s patients, in
38accordance with customary practice and professional obligations,
39of the relocation of the optometrist’s practice.

P9    1(13) The State Board of Optometry, the Medical Board of
2California, or the Department of Managed Health Care may
3inspect, upon request, an individual lease agreement pursuant to
4its investigation authority, and if such a request is made, the
5landlord or tenant, as applicable, shall promptly comply with the
6request. Failure or refusal to comply with the request for a lease
7agreement within 30 days of receiving the request shall constitute
8unprofessional conduct, grounds for disciplinary action by the
9appropriate regulatory agency and a violation of the Optometry
10Practice Act and the Knox-Keene Health Care Service Plan Act
11of 1975, as applicable. Only personal information as defined in
12Section 1798.3 of the Civil Code may be redacted prior to dispatch
13of the lease or agreement.

14(d) No registered dispensing optician may have any membership,
15proprietary interest, coownership, or profit-sharing arrangement
16either by stock ownership, interlocking directors, trusteeship,
17mortgage, or trust deed, with an optometrist, except as permitted
18under this section.

19(e) Any violation of this section constitutes a misdemeanor as
20to such person licensed as an optometrist under Chapter 7
21(commencing with Section 3000) and as to any and all persons,
22whether or not so licensed under this division, who participate
23with an optometrist in a violation of any provision of this section.

end insert
24begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 2546.2 of the end insertbegin insertBusiness and Professions Codeend insert
25begin insert is amended to read:end insert

26

2546.2.  

begin insert(a)end insertbegin insertend insertAll references in this chapter to the division shall
27mean thebegin delete Medical Board of California.end deletebegin insert State Board of Optometry.end insert

begin insert

28(b) Unless contrary to the provisions of this chapter, regulations
29adopted by the Medical Board of California shall continue to apply
30to nonresident contact lens sellers until other regulations are
31adopted by the State Board of Optometry. All references in those
32regulations to “board” shall mean the State Board of Optometry,
33which shall solely enforce the regulations with respect to
34nonresident contact lens sellers.

end insert
35begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 2546.9 of the end insertbegin insertBusiness and Professions Codeend insert
36begin insert is amended to read:end insert

37

2546.9.  

The amount of fees prescribed in connection with the
38registration of nonresident contact lens sellers is that established
39by the following schedule:

P10   1(a) The initial registration fee shall be one hundred dollars
2($100).

3(b) The renewal fee shall be one hundred dollars ($100).

4(c) The delinquency fee shall be twenty-five dollars ($25).

5(d) The fee for replacement of a lost, stolen, or destroyed
6registration shall be twenty-five dollars ($25).

7(e) The fees collected pursuant to this chapter shall be deposited
8in the Dispensing Opticians Fund, and shall be available, upon
9appropriation, to thebegin delete Medical Board of Californiaend deletebegin insert State Board of
10Optometryend insert
for the purposes of this chapter.

11begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 2550.1 of the end insertbegin insertBusiness and Professions Codeend insert
12begin insert is amended to read:end insert

13

2550.1.  

begin insert(a)end insertbegin insertend insertAll references in this chapter to the board or the
14Board of Medical Examiners or division shall mean thebegin delete Medical
15Board of Californiaend delete
begin insert State Board of Optometryend insert.

begin insert

16(b) Unless contrary to the provisions of this chapter, regulations
17adopted by the Medical Board of California shall continue to apply
18to registered dispensing opticians until other regulations are
19adopted by the State Board of Optometry. All references in those
20regulations to “board” shall mean the State Board of Optometry,
21which shall solely enforce the regulations with respect to registered
22dispensing opticians.

end insert
23begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 2556 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
24amended to read:end insert

25

2556.  

begin deleteIt end deletebegin insert(a)end insertbegin insertend insertbegin insertExcept as authorized by Section 655, it end insertis unlawful
26begin insertfor a registered dispensing optician end insertto do any of the following: to
27advertise the furnishing of, or to furnish, the services ofbegin delete a
28refractionist,end delete
anbegin delete optometrist,end deletebegin insert optometristend insert or a physician and
29begin delete surgeon;end deletebegin insert surgeon,end insert to directlybegin delete or indirectlyend delete employbegin delete or maintain on
30or near the premises used for optical dispensing, a refractionist,
31an optometrist, a physician and surgeon, or a practitioner of any
32other professionend delete
begin insert an optometrist or physician and surgeonend insert for the
33purpose of any examination or treatment of thebegin delete eyes;end deletebegin insert eyes,end insert or to
34duplicate or change lenses without a prescription or order from a
35person duly licensed to issue the same.begin insert For the purposes of this
36section, “furnish” does not mean to enter into a landlord-tenant
37relationship of any kind.end insert

begin insert

38(b) Notwithstanding Section 125.9, the board may, by regulation,
39impose and issue administrative fines and citations for a violation
40of this section or Section 655, which may be assessed in addition
P11   1to any other applicable fines, citations, or administrative or
2criminal actions.

end insert
3begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 2556.1 is added to the end insertbegin insertBusiness and Professions
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert2556.1.end insert  

The board shall have the authority to inspect any
6premises at which the business of a registered dispensing optician
7is co-located with the practice of an optometrist for the purposes
8of determining compliance with Section 655. The inspection may
9include the review of any written lease agreement between the
10registered dispensing optician and the optometrist. Failure to
11comply with the inspection or any request for information by the
12board may subject the party to disciplinary action. The board shall
13provide a copy of its inspection results, if applicable, to the
14optician, optometrist, and the Department of Managed Health
15Care.

end insert
16begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 2556.2 is added to the end insertbegin insertBusiness and Professions
17Code
end insert
begin insert, to read:end insert

begin insert
18

begin insert2556.2.end insert  

(a) Notwithstanding any other law and except as
19provided in Section 655, any individual, corporation, or firm
20operating as a registered dispensing optician under this chapter
21before the effective date of this section, or an employee of such an
22entity, shall not be subject to any action for engaging in conduct
23prohibited by Section 2556 as it read prior to the effective date of
24the act adding this section, except that a registrant shall be subject
25to discipline for duplicating or changing lenses without a
26prescription or order from a person duly licensed to issue the
27same.

28(b) Nothing in this section shall be construed to imply or suggest
29that a person registered under this chapter is in violation of or in
30compliance with the law.

31(c) This section shall not apply to any business relationships
32prohibited by Section 2556 registered and operating on or after
33the effective date of this section.

34(d) Nothing in this section shall prohibit an individual,
35corporation, or firm operating as a registered dispensing optician
36from engaging in a business relationship with an optometrist
37licensed pursuant to Chapter 7 (commencing with Section 3000)
38before the effective date of this section at locations registered with
39the Medical Board of California before the effective date of this
40section.

P12   1(e) This section shall remain in effect only until January 1, 2019,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2019, deletes or extends that date.

end insert
4begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 2567 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
5amended to read:end insert

6

2567.  

(a) The provisions of Article 19 (commencing with
7Section 2420) and Article 20 (commencing with Section 2435) of
8Chapter 5 which are not inconsistent or in conflict with this chapter
9apply to the issuance and govern the expiration and renewal of
10certificates issued under this chapter. All fees collected from
11persons registered or seeking registration under this chapter shall
12be paid into thebegin delete Contingent Fund of the Medical Board of
13California.end delete
begin insert Dispensing Opticians Fund, and shall be available,
14upon appropriation, to the State Board of Optometry for the
15purposes of this chapter.end insert

16(b) The board may employ, subject to civil service regulations,
17whatever additional clerical assistance is necessary for the
18administration of this chapter.

19begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 3010.5 of the end insertbegin insertBusiness and Professions Codeend insert
20begin insert is amended to read:end insert

21

3010.5.  

(a) There is in the Department of Consumer Affairs
22a State Board of Optometry in which the enforcement of this
23chapter is vested. The board consists of 11 members, five of whom
24shall be public membersbegin insert and one of whom shall be a registered
25dispensing optician. The registered dispensing optician shall be
26registered pursuant to Chapter 5.5 (commencing with Section
272550) and in good standing with the boardend insert
.

28Six members of the board shall constitute a quorum.

29(b) The board shall, with respect to conducting investigations,
30inquiries, and disciplinary actions and proceedings, have the
31authority previously vested in the board as created pursuant to
32former Section 3010. The board may enforce any disciplinary
33actions undertaken by that board.

34(c) This section shall remain in effect only until January 1, 2018,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before January 1, 2018, deletes or extends that date.
37Notwithstanding any other law, the repeal of this section renders
38the board subject to review by the appropriate policy committees
39of the Legislature.

P13   1begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 3011 of the end insertbegin insertBusiness and Professions Codeend insert
2begin insert is amended to read:end insert

3

3011.  

Members of the board, except the public membersbegin insert and
4the registered dispensing optician memberend insert
, shall be appointed only
5from persons who are registered optometrists of the State of
6California and actually engaged in the practice of optometry at the
7time of appointment or who are members of the faculty of a school
8of optometry. The public members shall not be a licentiate of the
9board or of any other board under this division or of any board
10referred to in Sections 1000 and 3600.

11No personbegin insert except the registered dispensing optician memberend insert,
12including the public members, shall be eligible to membership in
13 the board who is a stockholder in or owner of or a member of the
14board of trustees of any school of optometry or who shall be
15financially interested, directly or indirectly, in any concern
16manufacturing or dealing in optical supplies at wholesale.

17Nobegin delete person, including the public members,end deletebegin insert personend insert shall serve as
18a member of the board for more than two consecutive terms.

19A member of the faculty of a school of optometry may be
20appointed to the board; however, no more than two faculty
21members of schools of optometry may be on the board at any one
22time. Faculty members of the board shall not serve as public
23members.

24begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 3013 of the end insertbegin insertBusiness and Professions Codeend insert
25begin insert is amended to read:end insert

26

3013.  

(a) Each member of the board shall hold office for a
27term of four years, and shall serve until the appointment and
28qualification of his or her successor or until one year shall have
29elapsed since the expiration of the term for which he or she was
30appointed, whichever first occurs.

31(b) Vacancies occurring shall be filled by appointment for the
32unexpired term.

33(c) The Governor shall appoint three of the publicbegin delete members and
34the sixend delete
begin insert members, fiveend insert members qualified as provided in Section
353011begin insert, and the registered dispensing optician member as provided
36in Section 3010.5end insert
. The Senate Committee on Rules and the Speaker
37of the Assembly shall each appoint a public member.

38(d) No board member serving between January 1, 2000, and
39June 1, 2002, inclusive, shall be eligible for reappointment.

P14   1(e) For initial appointments made on or after January 1, 2003,
2one of the public members appointed by the Governor and two of
3the professional members shall serve terms of one year. One of
4the public members appointed by the Governor and two of the
5professional members shall serve terms of three years. The
6remaining public member appointed by the Governor and the
7remaining two professional members shall serve terms of four
8years. The public members appointed by the Senate Committee
9on Rules and the Speaker of the Assembly shall each serve for a
10term of four years.

11begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 3020 is added to the end insertbegin insertBusiness and Professions
12Code
end insert
begin insert, to read:end insert

13begin insert

begin insert3020.end insert  

end insert
begin insert

(a) There shall be established within the State Board of
14Optometry a Registered Dispensing Optician Committee to oversee
15the registration and enforcement of registered dispensing opticians
16as described in Chapter 5.5 (commencing with Section 2550).

end insert
begin insert

17(b) The committee shall be responsible for all of the following:

end insert
begin insert

18(1) Oversight of and setting criteria for all applications for
19dispensing opticians.

end insert
begin insert

20(2) Investigating all enforcement matters relating to a dispensing
21optician.

end insert
begin insert

22(3) Investigating any complaint against a dispensing optician
23provided to the committee by the board.

end insert
begin insert

24(4) Determining and enforcing penalties, including fines,
25suspensions, and revocations.

end insert
begin insert

26(5) Carrying out and implementing all responsibilities and
27duties imposed upon it pursuant to this chapter.

end insert
begin insert

28(c) The committee shall meet as needed.

end insert
29begin insert

begin insertSEC. 14.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
30to Section 6 of Article XIII B of the California Constitution because
31the only costs that may be incurred by a local agency or school
32district will be incurred because this act creates a new crime or
33infraction, eliminates a crime or infraction, or changes the penalty
34for a crime or infraction, within the meaning of Section 17556 of
35the Government Code, or changes the definition of a crime within
36the meaning of Section 6 of Article XIII B of the California
37Constitution.

end insert
38begin insert

begin insertSEC. 15.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
39immediate preservation of the public peace, health, or safety within
P15   1the meaning of Article IV of the Constitution and shall go into
2immediate effect. The facts constituting the necessity are:

end insert
begin insert

3In order to, as soon as possible, protect various businesses,
4registered dispensing opticians, and optometrists who engage in
5a business relationship that is prohibited by Section 655 of the
6Business and Professions Code, as amended by Chapter 975 of
7the Statutes of 1979, or Section 2556 of the Business and
8 Professions Code, as amended by Chapter 653 of the Statutes of
91979, of the Business and Professions Code from discipline by the
10Medical Board of California, the State Board of Optometry, or
11any other state agency with enforcement authority while those
12entities transition to a model that will allow California businesses
13to provide health services to patients and also protect the interests
14of healing arts practitioners, it is necessary that this act take effect
15immediately.

end insert
begin delete
16

SECTION 1.  

Section 655.1 is added to the Business and
17Professions Code
, to read:

18

655.1.  

(a) Notwithstanding any other law, no individual,
19corporation, or firm operating as a registered dispensing optician
20pursuant to Chapter 5.5 (commencing with Section 2550) before
21the effective date of this section, or an employee of such an entity,
22or an optometrist licensed pursuant to Chapter 7 (commencing
23with Section 3000) before the effective date of this section, shall
24be subject to any action by the Medical Board of California, the
25State Board of Optometry, another state agency, or a district
26attorney, with enforcement authority for engaging in any business
27relationship prohibited by Section 655.

28(b) Nothing in this section shall be construed to imply or suggest
29that a registered dispensing optician or optometrist engaging in
30any business relationship is in violation of or in compliance with
31the law.

32(c) This section shall not apply to any business relationships
33prohibited by Section 655 registered and operating on or after the
34effective date of this section.

35(d) Nothing in this section shall prohibit an individual,
36corporation, or firm operating as a registered dispensing optician
37from engaging in a business relationship with an optometrist
38licensed pursuant to Chapter 7 (commencing with Section 3000)
39before the effective date of this section at locations registered with
P16   1the Medical Board of California before the effective date of this
2section.

3(e) This section shall remain in effect only until January 1, 2017,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2017, deletes or extends that date.

6

SEC. 2.  

Section 2556.1 is added to the Business and Professions
7Code
, to read:

8

2556.1.  

(a) Notwithstanding any other law, any individual,
9corporation, or firm operating as a registered dispensing optician
10under this chapter before the effective date of this section, or an
11employee of such an entity, shall not be subject to any action for
12engaging in conduct prohibited by Section 2556, except that a
13registrant shall be subject to discipline for duplicating or changing
14lenses without a prescription or order from a person duly licensed
15to issue the same.

16(b) Nothing in this section shall be construed to imply or suggest
17that a person registered under this chapter is in violation of or in
18compliance with the law.

19(c) This section shall not apply to any business relationships
20prohibited by Section 2556 registered and operating on or after
21the effective date of this section.

22(d) Nothing in this section shall prohibit an individual,
23corporation, or firm operating as a registered dispensing optician
24from engaging in a business relationship with an optometrist
25licensed pursuant to Chapter 7 (commencing with Section 3000)
26before the effective date of this section at locations registered with
27the Medical Board of California before the effective date of this
28section.

29(e) This section shall remain in effect only until January 1, 2017,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2017, deletes or extends that date.

32

SEC. 3.  

Section 3137 of the Business and Professions Code is
33amended to read:

34

3137.  

(a) Except as otherwise provided in this section, any
35accusation filed against a licensee pursuant to Section 11503 of
36the Government Code for the violation of any provision of this
37chapter shall be filed within three years after the board discovers
38the act or omission alleged as the ground for disciplinary action,
39or within seven years after the act or omission alleged as the ground
40for disciplinary action occurs, whichever occurs first.

P17   1(b) An accusation filed against a licensee pursuant to Section
211503 of the Government Code alleging fraud or willful
3misrepresentation is not subject to the limitation in subdivision
4(a).

5(c) An accusation filed against a licensee pursuant to Section
611503 of the Government Code alleging unprofessional conduct
7based on incompetence, gross negligence, or repeated negligent
8acts of the licensee is not subject to the limitation in subdivision
9(a) upon proof that the licensee intentionally concealed from
10discovery his or her incompetence, gross negligence, or repeated
11negligent acts.

12(d) If an alleged act or omission involves any conduct described
13in Section 726 committed on a minor, the 10-year limitations period
14in subdivision (e) shall be tolled until the minor reaches the age
15of majority.

16(e) An accusation filed against a licensee pursuant to Section
1711503 of the Government Code alleging conduct described in
18Section 726 shall be filed within three years after the board
19discovers the act or omission alleged as the ground for disciplinary
20action, or within 10 years after the act or omission alleged as the
21ground for disciplinary action occurs, whichever occurs first. This
22subdivision shall apply to a complaint alleging conduct received
23by the board on and after January 1, 2006.

24(f) In any allegation, accusation, or proceeding described in this
25section, the limitations period in subdivision (a) shall be tolled for
26the period during which material evidence necessary for
27prosecuting or determining whether a disciplinary action would
28be appropriate is unavailable to the board due to an ongoing
29criminal investigation.

30(g) In any allegation, accusation, or proceeding described in
31this section regarding a violation of Section 655 and subject to
32Section 655.1, the limitations period in subdivision (a) shall be
33tolled during the effective period of Section 655.1.

34

SEC. 4.  

This act is an urgency statute necessary for the
35immediate preservation of the public peace, health, or safety within
36the meaning of Article IV of the Constitution and shall go into
37immediate effect. The facts constituting the necessity are:

38In order to protect various businesses, opticians, and optometrists
39who engage in a business relationship that is prohibited by Section
40655 or 2556 of the Business and Professions Code from discipline
P18   1by the Medical Board of California, the State Board of Optometry,
2or other state agency with enforcement authority while the
3Legislature, with the assistance of appropriate regulatory agencies,
4develops a model that will allow California businesses to provide
5services to patients and also protect the interests of practitioners,
6it is necessary that this act take effect immediately.

end delete


O

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