(a)

(1) After January 1, 2002, prior to issuing a license required by

Section 111656, the department shall inspect each place of business to determine ownership, adequacy of facilities, and personnel qualifications. Nothing in this

section shall prohibit the department from inspecting any medical device retail facility prior to January 1, 2002. (2) (

A) After the initial inspection pursuant to paragraph (1), the department shall inspect a licensee that is accredited by an accreditation organization approved by the federal Centers for Medicare and Medicaid Services, or its successor entity, only upon a complaint made to the department regarding the licensee. (

B) A licensee shall only be deemed to be accredited and subject to inspection pursuant to subparagraph (

A) if all of the following conditions exist: (

i) The licensee is accredited by the accrediting organization at least every three years. (ii) The licensee is subject to unannounced onsite midcycle surveys by the accrediting organization to validate ongoing compliance. (iii) Within days following an inspection by the accrediting organization, the accrediting organization notifies the department regarding the status of the licensee’s accreditation. (iv) If the licensee is less than fully accredited, the accrediting organization notifies the department of the reasons for the lack of full accreditation and any corrective action plan recommended to the licensee. (

C) The department shall inspect a licensee that ceased to be accredited in compliance with subparagraph (

B) pursuant to paragraph (3).

(3) The department shall inspect a licensee that is not accredited by an accreditation organization approved by the federal Centers for Medicare and Medicaid Services, or its successor entity, at least annually. (

b) The annual license fee for a home medical device retail facility shall be eight hundred fifty dollars ($850) until adjusted pursuant to subdivision (c). (

c) The annual license fee required by Sections and shall be adjusted annually, commencing July 1, 2003, by the department so that license fee revenues cover the estimated licensing program costs. Adjusted fee amounts shall take into account the resources required for inspections and other activities to support licensing during the previous year and shall take into account projected workload and changes in department overhead costs during the upcoming year. (

d) Commencing July 1, 2003, the department shall by July of each year, publish the amount of fees to be charged as adjusted pursuant to this section. This adjustment of fees shall not be subject to the requirements of

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code. (

e) Commencing January 1, 2003, the department shall, on or before January of each year, provide the Legislature with a report recommending fee rates. The report shall describe the estimated licensing program costs for the next fiscal year to carry out the licensing, regulating, inspecting, and other duties and responsibilities of the department in carrying out the provisions of this article. The department shall describe the projected license fee amount so that license fee revenues cover the estimated licensing program costs.

Projected fee amounts shall take into account the resources required for inspections and other activities to support licensing during the previous year and shall take into account projected workload and changes in department overhead costs during the upcoming year. (

f) The Drug and Device Safety Fund is hereby created as a special fund in the State Treasury. All moneys collected by the department under this

section and Sections 111656.7, 111656.8, 111656.12, and 111630, and fines and penalties collected by the department in the enforcement of this article, shall be deposited in the fund for use by the department upon appropriation by the Legislature for the purposes of providing funds necessary to carry out and implement the provisions of this

article relating to drugs and devices. (

g) This

section shall remain in effect only until January 1, 2028, and as of that date is repealed.