California Assembly Bill AB684 Amended / Bill

 BILL NUMBER: AB 684AMENDED BILL TEXT 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 INTRODUCED BY Assembly Members Alejo and Bonilla FEBRUARY 25, 2015 An act to amend  Section 3137 of, and to add and repeal Sections 655.1 and 2556.1 of,   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, 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.  Healing arts: licensees: disciplinary actions.   State Board of Optometry: optometrists: nonresident contact lens sellers: registered dispensing opticians.  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 licensed  optometrist   optometrist,  subject to a crime. Under existing law, the Medical Board of California is responsible for the registration and regulation of  nonresident contact lens sellers and  dispensing opticians.  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.  Existing  law   law, the Optometry Practice Act,  makes the State Board of Optometry responsible for the licensure  and regulation  of optometrists.  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.   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.   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.   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.   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   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.   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.  This bill, until January 1,  2017,   2019,  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  unlawful  conduct.  Under existing law, the State Board of Optometry consists of 11 members, 6 licensee members and 5 public members.   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.   This bill would make various conforming 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.  This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program:  no   yes  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 655 of the   Business and Professions Code   is repealed.   655. (a) No person licensed under Chapter 7 (commencing with Section 3000) of this division may have any membership, proprietary interest, coownership, landlord-tenant relationship, or any profit-sharing arrangement in any form, directly or indirectly, with any person licensed under Chapter 5.5 (commencing with Section 2550) of this division. (b) No person licensed under Chapter 5.5 (commencing with Section 2550) of this division may have any membership, proprietary interest, coownership, landlord-tenant relationship, or any profit sharing arrangement in any form directly or indirectly with any person licensed under Chapter 7 (commencing with Section 3000) of this division. (c) No person licensed under Chapter 7 (commencing with Section 3000) of this division may have 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. Any violation of this section constitutes a misdemeanor as to such person licensed under Chapter 7 (commencing with Section 3000) of this division and as to any and all persons, whether or not so licensed under this division, who participate with such licensed person in a violation of any provision of this section.   SEC. 2.   Section 655 is added to the   Business and Professions Code   , to read:   655. Notwithstanding any other law: (a) No optometrist licensed under Chapter 7 (commencing with Section 3000) may have 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, as described in Chapter 5.5 (commencing with Section 2550), 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 permitted under this section. (b) A registered dispensing optician may operate, own, or have an ownership interest in a health care service plan licensed pursuant to Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code and may 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 has a current and active license with the Department of Managed Health Care and is in compliance with all laws and regulations applicable to the health care service plan. Any complaints received by the Department of Managed Health Care related to the services provided by an optometrist or any findings by the Department of Managed Health Care that reflect substandard care or a potential violation of the Optometry Practice Act (Chapter 7 (commencing with Section 3000)) by an optometrist shall be forwarded to the State Board of Optometry. (c) An optometrist, a registered dispensing optician, and a health care service plan may execute a lease or other written agreement giving rise to a direct or indirect landlord-tenant relationship if all of the following conditions are contained in a written agreement establishing the landlord-tenant relationship: (1) The optometry practice shall be owned by the optometrist and in every aspect be under the optometrist's exclusive control, including, but not limited to, the selection and supervision of optometric staff, the scheduling of patients, the amount of time the optometrist spends with patients, fees charged for optometric products and services, the examination procedures and treatment provided to patients, and the optometrist's contracting with health care service plans. This paragraph shall not preclude a lease from including commercially reasonable terms that do any of the following: (A) Require the provision of optometric services at the premises during certain days and hours. (B) Restrict the use of the premises for the sale or offer for sale of spectacles, frames, lenses, contact lenses, or other ophthalmic products, except that the optometrist shall be permitted to sell therapeutic ophthalmic products if the landlord does not offer any substantially similar therapeutic ophthalmic products for sale. (C) Enter the optometrist into an agreement with a health care service plan or health insurer. (D) Permit the landlord to directly or indirectly provide furnishings and equipment in the leased space. (2) The patient records shall be the sole property of the optometrist. Only the optometrist and those persons who have been authorized, in writing, by the optometrist shall have access to the patient records and the examination room, except as otherwise provided by law. (3) The optometrist's leased space shall be definite and distinct from the space occupied by the other occupants of the premises, have a sign designating that the leased space is occupied by an independent optometrist or optometrists, and be accessible to the optometrist after hours or in the case of an emergency, subject to the facility's general accessibility. This paragraph shall not require a separate entrance to the optometrist's leased space. (4) All signs, advertising, and displays shall be separate and distinct from that of the other occupants and shall have the optometrist's name and the word "optometrist" prominently displayed in connection therewith. This paragraph shall not prohibit optometrists or registered dispensing opticians, individually or jointly, from advertising their practice locations in the leased premises, their participation in any health care service plan's network, or the health care service plan's products in which they participate. (5) There shall be no signs displayed on any part of the premises or in any advertising indicating that the optometrist is employed or controlled by the landlord. (6) Except for a statement that an independent Doctor of Optometry is located on the premises and in-store pricing signs, as permitted by this subdivision, the landlord shall not link its advertising with the optometrist's name, practice, or fees. (7) The optometrist shall not be precluded from collecting fees for services that are not included in a health care service plan's products and services contained in the health care service plan's provider agreement with the optometrist, subject to any disclosure requirements to the patients and enrollees. (8) The term of the lease shall be no less than one year and shall not require the optometrist to contract exclusively with a health care service plan. The optometrist may terminate the lease according to the terms of the lease. The landlord may terminate the lease for any of the following reasons: (A) The imposition of restrictions, suspension, or revocation of the optometrist's license or if the optometrist is or becomes ineligible to participate in state or federal government-funded programs. (B) The termination of any underlying lease where the optometrist has subleased space, or the optometrist's failure to comply with the underlying lease provisions that are made applicable to the optometrist. (C) Other reasons pursuant to the terms of the lease or permitted under the Civil Code, unrelated to the practice of optometry or the sale of optical goods, except as otherwise provide by this section. (9) The landlord shall act in good faith in terminating the lease, and in no case shall the landlord terminate the lease for reasons that constitute interference with the practice of optometry. (10) The lease or lease terms and payments shall not be based on the number of eye exams performed, prescriptions written, patient referrals, or the sale or promotion of the products of a registered dispensing optician or an optical company. (11) The landlord shall not terminate the lease solely because of a report, complaint, or allegation filed by the optometrist against the landlord, a registered dispensing optician, or a health care service plan to the State Board of Optometry, the Medical Board of California, the Department of Managed Health Care, or any law enforcement or regulatory agency. (12) The landlord shall not interfere with an outgoing optometrist' s efforts to inform the optometrist's patients, in accordance with customary practice and professional obligations, of the relocation of the optometrist's practice. (13) The State Board of Optometry, the Medical Board of California, or the Department of Managed Health Care may inspect, upon request, an individual lease agreement pursuant to its investigation authority, and if such a request is made, the landlord or tenant, as applicable, shall promptly comply with the request. Failure or refusal to comply with the request for a lease agreement within 30 days of receiving the request shall constitute unprofessional conduct, grounds for disciplinary action by the appropriate regulatory agency and a violation of the Optometry Practice Act and the Knox-Keene Health Care Service Plan Act of 1975, as applicable. Only personal information as defined in Section 1798.3 of the Civil Code may be redacted prior to dispatch of the lease or agreement. (d) No registered dispensing optician may have 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 permitted under this section. (e) Any violation of this section constitutes a misdemeanor as to such person licensed as an optometrist under Chapter 7 (commencing with Section 3000) and as to any and all persons, whether or not so licensed under this division, who participate with an optometrist in a violation of any provision of this section.   SEC. 3.   Section 2546.2 of the   Business and Professions Code   is amended to read:  2546.2.  (a)    All references in this chapter to the division shall mean the  Medical Board of California.   State Board of Optometry.   (b) Unless contrary to the provisions of this chapter, regulations adopted by the Medical Board of California shall continue to apply to nonresident contact lens sellers until other regulations are adopted by the State Board of Optometry. All references in those regulations to "board" shall mean the State Board of Optometry, which shall solely enforce the regulations with respect to nonresident contact lens sellers.   SEC. 4.   Section 2546.9 of the   Business and Professions Code   is amended to read:  2546.9. The amount of fees prescribed in connection with the registration of nonresident contact lens sellers is that established by the following schedule: (a) The initial registration fee shall be one hundred dollars ($100). (b) The renewal fee shall be one hundred dollars ($100). (c) The delinquency fee shall be twenty-five dollars ($25). (d) The fee for replacement of a lost, stolen, or destroyed registration shall be twenty-five dollars ($25). (e) The fees collected pursuant to this chapter shall be deposited in the Dispensing Opticians Fund, and shall be available, upon appropriation, to the  Medical Board of California   State Board of Optometry  for the purposes of this chapter.  SEC. 5.   Section 2550.1 of the   Business and Professions Code   is amended to read:  2550.1.  (a)    All references in this chapter to the board or the Board of Medical Examiners or division shall mean the  Medical Board of California   State Board of Optometry  .  (b) Unless contrary to the provisions of this chapter, regulations adopted by the Medical Board of California shall continue to apply to registered dispensing opticians until other regulations are adopted by the State Board of Optometry. All references in those regulations to "board" shall mean the State Board of Optometry, which shall solely enforce the regulations with respect to registered dispensing opticians.   SEC. 6.   Section 2556 of the   Business and Professions Code   is amended to read:  2556.  It   (a)     Except as authorized by Section 655, it  is unlawful  for a registered dispensing optician  to do any of the following: to advertise the furnishing of, or to furnish, the services of  a refractionist,  an  optometrist,   optometrist  or a physician and  surgeon;   surgeon,  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   an optometrist or physician and surgeon  for the purpose of any examination or treatment of the  eyes;   eyes,  or to duplicate or change lenses without a prescription or order from a person duly licensed to issue the same.  For the purposes of this section, "furnish" does not mean to enter into a landlord-tenant relationship of any kin   d.   (b) Notwithstanding Section 125.9, the board may, by regulation, impose and issue administrative fines and citations for a violation of this section or Section 655, which may be assessed in addition to any other applicable fines, citations, or administrative or criminal actions.   SEC. 7.   Section 2556.1 is added to the   Business and Professions Code   , to read:   2556.1. The board shall have the authority 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 Section 655. The inspection may include the review of any written lease agreement between the registered dispensing optician and the optometrist. Failure to comply with the inspection or any request for information by the board may subject the party to disciplinary action. The board shall provide a copy of its inspection results, if applicable, to the optician, optometrist, and the Department of Managed Health Care.   SEC. 8.   Section 2556.2 is added to the   Business and Professions Code   , to read:   2556.2. (a) Notwithstanding any other law and except as provided in Section 655, any individual, corporation, or firm operating as a registered dispensing optician under this chapter before the effective date of this section, or an employee of such an entity, shall not be subject to any action for engaging in conduct prohibited by Section 2556 as it read prior to the effective date of the act adding this section, except that a registrant shall be subject to discipline for duplicating or changing lenses without a prescription or order from a person duly licensed to issue the same. (b) Nothing in this section shall be construed to imply or suggest that a person registered under this chapter is in violation of or in compliance with the law. (c) This section shall not apply to any business relationships prohibited by Section 2556 registered and operating on or after the effective date of this section. (d) Nothing in this section shall prohibit an individual, corporation, or firm operating as a registered dispensing optician from engaging in a business relationship with an optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) before the effective date of this section at locations registered with the Medical Board of California before the effective date of this section. (e) This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.   SEC. 9.   Section 2567 of the   Business and Professions Code   is amended to read: 2567. (a) The provisions of Article 19 (commencing with Section 2420) and Article 20 (commencing with Section 2435) of Chapter 5 which are not inconsistent or in conflict with this chapter apply to the issuance and govern the expiration and renewal of certificates issued under this chapter. All fees collected from persons registered or seeking registration under this chapter shall be paid into the  Contingent Fund of the Medical Board of California.   Dispensing Opticians Fund, and shall be available, upon appropriation, to the State Board of Optometry for the purposes of this chapter.  (b) The board may employ, subject to civil service regulations, whatever additional clerical assistance is necessary for the administration of this chapter.  SEC. 10.   Section 3010.5 of the   Business and Professions Code   is amended to read:  3010.5. (a) There is in the Department of Consumer Affairs a State Board of Optometry in which the enforcement of this chapter is vested. The board consists of 11 members, five of whom shall be public members  and one of whom shall be a registered dispensing optician. The registered dispensing optician shall be registered pursuant to Chapter 5.5 (commencing with Section 2550) and in good standing with the board  . Six members of the board shall constitute a quorum. (b) The board shall, with respect to conducting investigations, inquiries, and disciplinary actions and proceedings, have the authority previously vested in the board as created pursuant to former Section 3010. The board may enforce any disciplinary actions undertaken by that board. (c) This section shall remain in effect only until January 1, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date. Notwithstanding any other law, the repeal of this section renders the board subject to review by the appropriate policy committees of the Legislature.  SEC. 11.   Section 3011 of the   Business and Professions Code   is amended to read:  3011. Members of the board, except the public members  and the registered dispensing optician member  , shall be appointed only from persons who are registered optometrists of the State of California and actually engaged in the practice of optometry at the time of appointment or who are members of the faculty of a school of optometry. The public members shall not be a licentiate of the board or of any other board under this division or of any board referred to in Sections 1000 and 3600. No person  except the registered dispensing optician member  , including the public members, shall be eligible to membership in the board who is a stockholder in or owner of or a member of the board of trustees of any school of optometry or who shall be financially interested, directly or indirectly, in any concern manufacturing or dealing in optical supplies at wholesale. No  person, including the public members,   person  shall serve as a member of the board for more than two consecutive terms. A member of the faculty of a school of optometry may be appointed to the board; however, no more than two faculty members of schools of optometry may be on the board at any one time. Faculty members of the board shall not serve as public members.  SEC. 12.  Section 3013 of the   Business and Professions Code   is amended to read:  3013. (a) Each member of the board shall hold office for a term of four years, and shall serve until the appointment and qualification of his or her successor or until one year shall have elapsed since the expiration of the term for which he or she was appointed, whichever first occurs. (b) Vacancies occurring shall be filled by appointment for the unexpired term. (c) The Governor shall appoint three of the public  members and the six   members, five  members qualified as provided in Section 3011  , and the registered dispensing optician member as provided in Section 3010.5  . The Senate Committee on Rules and the Speaker of the Assembly shall each appoint a public member. (d) No board member serving between January 1, 2000, and June 1, 2002, inclusive, shall be eligible for reappointment. (e) For initial appointments made on or after January 1, 2003, one of the public members appointed by the Governor and two of the professional members shall serve terms of one year. One of the public members appointed by the Governor and two of the professional members shall serve terms of three years. The remaining public member appointed by the Governor and the remaining two professional members shall serve terms of four years. The public members appointed by the Senate Committee on Rules and the Speaker of the Assembly shall each serve for a term of four years.  SEC. 13.   Section 3020 is added to the   Business and Professions Code   , to read:   3020.   (a) There shall be established within the State Board of Optometry a Registered Dispensing Optician Committee to oversee the registration and enforcement of registered dispensing opticians as described in Chapter 5.5 (commencing with Section 2550).   (b) The committee shall be responsible for all of the following:   (1) Oversight of and setting criteria for all applications for dispensing opticians.  (2) Investigating all enforcement matters relating to a dispensing optician.   (3) Investigating any complaint against a dispensing optician provided to the committee by the board.   (4) Determining and enforcing penalties, including fines, suspensions, and revocations.  (5) Carrying out and implementing all responsibilities and duties imposed upon it pursuant to this chapter.   (c) The committee shall meet as needed.   SEC. 14.   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.   SEC. 15.   This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:   In order to, as soon as possible, protect various businesses, registered dispensing opticians, and optometrists who engage in a business relationship that is prohibited by Section 655 of the Business and Professions Code, as amended by Chapter 975 of the Statutes of 1979, or Section 2556 of the Business and Professions Code, as amended by Chapter 653 of the Statutes of 1979, of the Business and Professions Code from discipline by the Medical Board of California, the State Board of Optometry, or any other state agency with enforcement authority while those entities transition to a model that will allow California businesses to provide health services to patients and also protect the interests of healing arts practitioners, it is necessary that this act take effect immediately.   SECTION 1.   Section 655.1 is added to the Business and Professions Code, to read: 655.1. (a) Notwithstanding any other law, no individual, corporation, or firm operating as a registered dispensing optician pursuant to Chapter 5.5 (commencing with Section 2550) before the effective date of this section, or an employee of such an entity, or an optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) before the effective date of this section, shall be 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 business relationship prohibited by Section 655. (b) Nothing in this section shall be construed to imply or suggest that a registered dispensing optician or optometrist engaging in any business relationship is in violation of or in compliance with the law. (c) This section shall not apply to any business relationships prohibited by Section 655 registered and operating on or after the effective date of this section. (d) Nothing in this section shall prohibit an individual, corporation, or firm operating as a registered dispensing optician from engaging in a business relationship with an optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) before the effective date of this section at locations registered with the Medical Board of California before the effective date of this section. (e) This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.   SEC. 2.   Section 2556.1 is added to the Business and Professions Code, to read: 2556.1. (a) Notwithstanding any other law, any individual, corporation, or firm operating as a registered dispensing optician under this chapter before the effective date of this section, or an employee of such an entity, shall not be subject to any action for engaging in conduct prohibited by Section 2556, except that a registrant shall be subject to discipline for duplicating or changing lenses without a prescription or order from a person duly licensed to issue the same. (b) Nothing in this section shall be construed to imply or suggest that a person registered under this chapter is in violation of or in compliance with the law. (c) This section shall not apply to any business relationships prohibited by Section 2556 registered and operating on or after the effective date of this section. (d) Nothing in this section shall prohibit an individual, corporation, or firm operating as a registered dispensing optician from engaging in a business relationship with an optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) before the effective date of this section at locations registered with the Medical Board of California before the effective date of this section. (e) This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.   SEC. 3.   Section 3137 of the Business and Professions Code is amended to read: 3137. (a) Except as otherwise provided in this section, any accusation filed against a licensee pursuant to Section 11503 of the Government Code for the violation of any provision of this chapter shall be filed within three years after the board discovers the act or omission alleged as the ground for disciplinary action, or within seven years after the act or omission alleged as the ground for disciplinary action occurs, whichever occurs first. (b) An accusation filed against a licensee pursuant to Section 11503 of the Government Code alleging fraud or willful misrepresentation is not subject to the limitation in subdivision (a). (c) An accusation filed against a licensee pursuant to Section 11503 of the Government Code alleging unprofessional conduct based on incompetence, gross negligence, or repeated negligent acts of the licensee is not subject to the limitation in subdivision (a) upon proof that the licensee intentionally concealed from discovery his or her incompetence, gross negligence, or repeated negligent acts. (d) If an alleged act or omission involves any conduct described in Section 726 committed on a minor, the 10-year limitations period in subdivision (e) shall be tolled until the minor reaches the age of majority. (e) An accusation filed against a licensee pursuant to Section 11503 of the Government Code alleging conduct described in Section 726 shall be filed within three years after the board discovers the act or omission alleged as the ground for disciplinary action, or within 10 years after the act or omission alleged as the ground for disciplinary action occurs, whichever occurs first. This subdivision shall apply to a complaint alleging conduct received by the board on and after January 1, 2006. (f) In any allegation, accusation, or proceeding described in this section, the limitations period in subdivision (a) shall be tolled for the period during which material evidence necessary for prosecuting or determining whether a disciplinary action would be appropriate is unavailable to the board due to an ongoing criminal investigation. (g) In any allegation, accusation, or proceeding described in this section regarding a violation of Section 655 and subject to Section 655.1, the limitations period in subdivision (a) shall be tolled during the effective period of Section 655.1.   SEC. 4.   This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to protect various businesses, opticians, and optometrists who engage in a business relationship that is prohibited by Section 655 or 2556 of the Business and Professions Code from discipline by the Medical Board of California, the State Board of Optometry, or other state agency with enforcement authority while the Legislature, with the assistance of appropriate regulatory agencies, develops a model that will allow California businesses to provide services to patients and also protect the interests of practitioners, it is necessary that this act take effect immediately.