(a) As used in this chapter, “owner” means any person with an ownership or control interest in a clinical laboratory.

(b) “Person with an ownership or control interest” means a person, partnership, or corporation that meets any of the following descriptions:

Terms Used In California Business and Professions Code 1211

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Change in laboratory director: means any change in the laboratory director or directors to whom the current license or registration is issued. See California Business and Professions Code 1211
  • Change in ownership: means any change in the persons who are owners. See California Business and Professions Code 1211
  • City: includes city and county. See California Business and Professions Code 18
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Indirect ownership interest: means an ownership interest in an entity that has an ownership interest in a clinical laboratory, and includes an ownership interest in any entity that has an indirect ownership interest in a clinical laboratory. See California Business and Professions Code 1211
  • laboratory director: means any person who is any of the following:

    California Business and Professions Code 1209

  • license: means license, certificate, registration, or other means to engage in a business or profession regulated by this code or referred to in Section 1000 or 3600. See California Business and Professions Code 23.7
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • ownership interest: means the possession of equity in capital, stock, or profits. See California Business and Professions Code 1211
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • person: includes firm, association, partnership, individual, limited liability company, and corporation. See California Business and Professions Code 1201
  • Subdivision: means a subdivision of the section in which that term occurs, unless some other section is expressly mentioned. See California Business and Professions Code 15

(1) Has an ownership interest totaling 5 percent or more in a clinical laboratory.

(2) Has an indirect ownership interest equal to 5 percent or more in a clinical laboratory.

(3) Has a combination of direct and indirect ownership interests equal to 5 percent or more in a clinical laboratory.

(4) Owns an interest of 5 percent or more in any mortgage, deed of trust, note, or other obligation secured by the clinical laboratory if that interest equals at least 5 percent of the value of the property or assets of the clinical laboratory.

(5) Is an officer or director of a clinical laboratory that is organized as a corporation.

(6) Is a partner in a clinical laboratory that is organized as a partnership with no more than 25 partners, general or limited.

(7) Is a partner who exercises any operational or managerial control over a clinical laboratory organized as a partnership with more than 25 partners, general or limited.

(c) As used in this chapter “ownership interest” means the possession of equity in capital, stock, or profits.

(d) “Indirect ownership interest” means an ownership interest in an entity that has an ownership interest in a clinical laboratory, and includes an ownership interest in any entity that has an indirect ownership interest in a clinical laboratory.

(e) “Change in ownership” means any change in the persons who are owners.

(f) “Major change in ownership” means a change in ownership where 50 percent or more of the ownership interest is owned by persons other than the owners to whom the current clinical laboratory license or registration is issued.

(g) “Change in name” means any change in the name under which the laboratory operates or is doing business.

(h) “Change in location” means any change in the street and city address, or the site or place within the street and city address, for which a license or registration is issued.

(i) “Change in laboratory director” means any change in the laboratory director or directors to whom the current license or registration is issued.

(j) “Major change in laboratory directorship” means a change in laboratory director or directors resulting in the situation where less than 50 percent of the laboratory directors to whom the current laboratory license or registration is issued remain after the change.

(k) For purposes of this section, in the case of a pharmacy that applies for a registration pursuant to Section 1206.6, “laboratory director” means the pharmacist-in-charge identified pursuant to subdivision (a) of Section 1206.6.

(Amended by Stats. 2012, Ch. 874, Sec. 3. (SB 1481) Effective January 1, 2013.)