Section 10056 - License Fees(a) The Department shall assess a license fee to cover the cost of licensing narcotic treatment programs required to pay a licensing fee pursuant to Section 11839.7 of the Health and Safety Code. As used in this regulation, "license fee" means: (1) A fee for initial application for licensure (including the addition of a medication unit as described in Section 10020 or an OBNTN as described in Section 10021); and(2) An annual license fee, which shall include:(A) A base annual license fee;(B) A patient slot fee, based on the narcotic treatment program's licensed patient capacity; and(3) A relocation fee, to be paid when the narcotic treatment program requests approval to move to another location, pursuant to Sections 10035 and 10037.(b) The Department calculated license fees for FY 2006-2007 by multiplying the prior year's (FY 2004-2005) license fees by the annual increase (3.3%) in the Consumer Price Index (CPI), as published by the California Department of Finance and adding that amount to the prior year's fees. License fees for fiscal year 2006-07 are shown below:
| Type of License Fee | Prior Year License Fees | Percent of Increase (based on CPI) | New License Fees for FY 2006-2007 | Number of Estimated Transactions for FY 2006-2007 (based on FY 2004-2005 actual) | Total Statewide License Fees for FY 2006-2007 |
| Initial Application for Licensure Fee | $ 3,100 | 3.3% | $ 3,202 | 5 applications | $ 16,010 |
| | | | | |
| Base Annual Fee | $ 861 | 3.3% | $ 889 | 134 private NTPs | $ 119,126 |
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| Patient Slot Fee | $ 27 | 3.3% | $ 28 | 36,287 total patient slots | $ 1,016,036 |
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| Program Relocation Fee | $ 1,100 | 3.3% | $ 1,136 | 1 relocation | $ 1,136 |
| Total Statewide License Fees -- All Categories | $1,152,308 |
| Cost of Licensing Narcotic Treatment Programs | $1,889,000 |
(c) For future years the Department shall calculate license fees by multiplying the prior year's license fees by the most recent annual increase in the Consumer Price Index and adding that amount to the prior year's fees. For example, if the most recent CPI were four percent (4%) and costs were $1,889,000, license fees for the future fiscal year would be as shown below:
| Type of License Fee | Prior Year License Fees | Percent of increase (4% CPI | New License Fees for Future Fiscal Year | Number of Estimated Transactions | Total Statewide License Fees for Future Fiscal Year |
| Initial Application for Licensure Fee | $3,202 | 4% | $3,330 | 5 applications | $ 16,650 |
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| Base Annual License Fee | $889 | 4% | $925 | 134 private NTPs | $ 123,950 |
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| Patient Slot Fee | $28 | 4% | $29 | 36,287 total patient slots | $ 1,052,323 |
| | | | | |
| Program Relocation Fee | $1,136 | 4% | $1,181 | 1 relocation | $ 1,181 |
| Total Statewide License Fees -- All Categories | $1,194,104 |
| Cost of Licensing Narcotic Treatment Programs | $1,889,000 |
(d) No later than March 1st of each year, the Department shall calculate the annual license fee for the future fiscal year (July 1st through June 30th). If the Department determines all conditions required in Section 10055 have been met, the license of a program shall be renewed on July 1st of that year. The license fee shall be due and payable in the manner described in subsection (h) below.(e) No later than March 1st of each year, following the effective date of this regulation, the Department shall give written notice to narcotic treatment program licensees of the license fees for the future fiscal year and the manner in which they were calculated, including data used in making the calculation.(f) Applicants for initial licensure or relocation shall include the required fee with their application for licensure or relocation.(1) The Department shall terminate review of the application if the applicant fails to include the required fee.(2) The Department shall not refund the fee if the Department denies the application.(3) Upon approval of the application for initial licensure, the Department shall send the licensee an invoice stating the amount of the prorated base annual license fee and the slot fees due for the remainder of the fiscal year.(g) In August of each year the Department shall send license renewal invoices to all licensees, stating the amount of the base annual license fee and slot fees due for the fiscal year.(h) The licensee may pay annual license fees once annually or quarterly in arrears.(1) If the licensee pays the total annual license fees once annually, the licensee shall submit the amount of the total annual license fees in time to be received by the Department by September 30th of the same year.(2) If the licensee pays the annual license fees quarterly in arrears, the licensee shall submit one quarter of the total annual license fees in time to be received by the Department by September 30th, December 31st, March 31st, and May 31st of the same fiscal year.(3) If the licensee fails to timely submit the annual license fees in accordance with the requirements of this subsection, the Department shall issue a written notice of deficiency within seven (7) calendar days of the date payment was due. The notice of deficiency shall: (A) Notify the licensee of the failure to pay license fees in accordance with the requirements of this regulation;(B) Specify the amount of the license fees due;(C) State the date by which the license fees were due;(D) Notify the licensee that the license shall not be renewed unless all license fees have been paid by May 31st of the same fiscal year;(E) Notify the licensee that the Department shall assess a civil penalty in the amount of $100 per day for each day from the date the license fees were due until the date the licensee pays the license fees; and(F) Notify the licensee of the right to appeal civil penalties in accordance with Section 10057.(4) If the Department fails to issue a written notice of deficiency within seven (7) calendar days, the Department shall not assess the civil penalty until the date of the notice. Failure to issue a written notice of deficiency within seven (7) calendar days shall not relieve the licensee of the obligation to pay license fees and shall not entitle the licensee to renewal of the license.(i) In the event that a program closes as a result of automatic termination, license revocation, or voluntary closure, the Department shall determine the license fee refund amount, if any. The Department shall calculate and issue a refund for the days remaining between the effective closure date through the June 30th expiration date of the license. For purposes of this subsection, "effective closure date" means the date that the automatic termination or license revocation becomes effective or the date of voluntary closure.Cal. Code Regs. Tit. 9, § 10056
1. New section filed 6-7-2006; operative 6-7-2006 pursuant to Government Code section 11343.4 (Register 2006, No. 23).
2. Amendment of subsections (a)(1), (a)(2)(B)-(a)(3), (d)-(e), (h)(1)-(2), (h)(3)(A), (h)(3)(D) and (h)(3)(F)-(h)(4), new subsection (i) and amendment of NOTE filed 5-7-2020; operative 7-1-2020 (Register 2020, No. 19). Note: Authority cited: Sections 11750, 11755, 11835 and 11839.3, Health and Safety Code. Reference: Sections 11839.3 and 11839.7, Health and Safety Code.
1. New section filed 6-7-2006; operative 6-7-2006 pursuant to Government Code section 11343.4(Register 2006, No. 23).
2. Amendment of subsections (a)(1), (a)(2)(B)-(a)(3), (d)-(e), (h)(1)-(2), (h)(3)(A), (h)(3)(D) and (h)(3)(F)-(h)(4), new subsection (i) and amendment of Note filed 5-7-2020; operative 7/1/2020 (Register 2020, No. 19).