AB 2141

AB2141:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2141

An act relating to the payment of claims against the state. An act to add Section 4300.2 to the Business and Professions Code, relating to pharmacies.

LEGISLATIVE COUNSEL'S DIGEST

AB 2141, as amended, Wicks Patterson. Claims against the state: appropriation. Pharmacies: license discipline: stipulated settlement and disciplinary order.

Under existing state law, the Pharmacy Law, the California State Board of Pharmacy licenses and regulates the practice of pharmacy in this state. Existing law sets forth various disciplinary actions, including license suspension or revocation, against licensees for offenses committed under those licensing provisions. Existing law requires discipline proceedings to be conducted in accordance with the administrative adjudicative provisions of the Administrative Procedure Act (APA). Existing law authorizes an agency to formulate and issue a decision by settlement, as provided, except in an adjudicative proceeding to determine whether an occupational license should be revoked, suspended, limited, or conditioned, existing law prohibits a settlement from being made before issuance of the agency pleading.This bill would authorize the board and licensee to enter into a stipulated settlement and disciplinary order to license discipline without and in advance of the filing of an agency pleading, notwithstanding the above-referenced requirement concerning the APA, and if prescribed conditions are met, including, among others, that the licensee willingly waives the administrative adjudicative procedures of the APA and the licensee submitted mitigation and rehabilitation information, as provided. The bill would require a specified committee of the board to consider the mitigation and rehabilitation information and authorize the committee to extend a stipulated settlement and discipline order offer to the licensee, as provided. The bill would require that the stipulated settlement and disciplinary order be agreed to in writing between the committee and the licensee within 60 calendar days of the date of the licensee’s waiver of the administrative adjudicative procedures of the APA, as provided. The bill would provide that the stipulated settlement and disciplinary order is contingent upon approval by the board, as provided.

Under existing law, if sufficient appropriations are not available for the payment of certain claims, settlements, or judgments, the Attorney General is required to report the claims, settlements, and judgments to the chairperson of either the Senate Committee on Appropriations or the Assembly Committee on Appropriations, who is then required to cause introduction of legislation appropriating the funds necessary for payment.

This bill would express the intention of the Legislature to enact subsequent legislation relating to the payment of claims against the state.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

Bill Text

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

SECTION 1.

Section 4300.2 is added to the Business and Professions Code, to read:

4300.2. (a) Notwithstanding subdivision (b) of Section 11415.60 of the Government Code, the board and licensee may enter into a stipulated settlement and disciplinary order to license discipline without and in advance of the filing of an accusation or other agency pleading pursuant to this section, including if all of the following conditions are met:(1) Enforcement staff or investigators for the board conducted an inspection or investigation as provided for in this chapter and substantiated violations of law.(2) Enforcement staff at the board provided the licensee with findings of the violations in writing, and a notice of possible eligibility for a stipulated settlement and disciplinary order.(3) The licensee, within 15 days of being provided with the findings of the violations, notified the board in writing of the licensee’s willingness to waive the administrative adjudication provisions of the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of the Government Code), including notice and hearing requirements, and to consider a stipulated settlement and disciplinary order as an alternative to action taken on the basis of a pleading. The board may, for good cause, extend the deadline for the licensee to respond in writing beyond 15 days.(4) The licensee submitted mitigation and rehabilitation information, as specified in the board’s disciplinary guidelines.(b) (1) If the conditions described in paragraphs (1) to (4), inclusive, of subdivision (a) are met, a committee consisting of the executive officer, two members of the board, one public member, and one licensee member shall consider the mitigation and rehabilitation information described in paragraph (4) of subdivision (a) and, in their sole discretion, may extend a stipulated settlement and disciplinary order offer to the licensee. Any stipulated settlement and disciplinary order offer shall be based on the violations substantiated by the inspection or investigation, and shall be consistent with the board’s disciplinary guidelines.(2) (A) The stipulated settlement and disciplinary order, incorporating the findings of the violations, shall be agreed to in writing between the committee described in paragraph (1) and licensee within 60 calendar days of the date of the licensee’s waiver pursuant to paragraph (3) of subdivision (a).(B) The committee described in paragraph (1) may agree to extend the time period described in subparagraph (A) at its exclusive discretion. An extension shall be in writing and shall be granted only for good cause or when good faith settlement discussions are ongoing.(3) If the committee described in paragraph (1) and the licensee fails to come to agreement within the time limits set forth in paragraph (2), the board shall file the appropriate disciplinary pleading.(c) The stipulated settlement and disciplinary order shall be contingent upon approval by the board, except that the members of the committee described in subdivision (b) shall recuse themselves and not participate or vote on the stipulated settlement and disciplinary order.(1) If the stipulated settlement and disciplinary order is approved by the board, it shall be a public record.(2) If the board fails to approve the stipulated settlement and disciplinary order, both of the following shall apply:(A) The stipulated settlement and disciplinary order shall be of no force or effect and the board shall not be disqualified from further action by having offered or considered the stipulated settlement and disciplinary order.(B) The board shall file the appropriate disciplinary pleading.(d) This section does not limit or prohibit the ability to engage in good faith settlement negotiations or to negotiate and enter into a stipulated settlement and disciplinary order after the disciplinary pleading has been filed.

SECTION 1.

It is the intent of the Legislature to enact subsequent legislation relating to the payment of claims against the state.

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REVISIONS: Heading—Line 2.

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