(a) Failure to comply with the requirements of this chapter, including, but not limited to, failure by a PRO to implement and satisfy the requirements of its plan, shall subject a PRO, producer, wholesaler, or retailer to penalties for violations as set forth in this article or revocation of an approved plan. The department may conduct investigations, including by inspecting operations, facilities, and records of producers and PROs and by performing audits of producers and PROs, to determine whether entities are complying with the requirements of this chapter.

(b) The department may deem the information contained in an audit provided by a PRO pursuant to Section 42054 or the records maintained by the PRO pursuant to subdivision (d) of Section 42052 to be sufficient to establish violations of the requirements of this chapter.

(c) The department shall notify a PRO, producer, retailer, or wholesaler of any conduct or practice that does not comply with this chapter and of any inconsistencies identified in the department’s audit.

(d) Within 15 calendar days of the director approving a completed audit of a PRO, producer, retailer, or wholesaler, the department shall notify the audited entity that the audit will be posted on the department’s internet website. The department shall post the completed audit on the department’s internet website no later than 45 calendar days after it provides that notice.

(e) The department shall hold its audit confidentially only to the extent it contains information that is specifically identified as and constitutes a trade secret pursuant to subdivision (d) of § 3426.1 of the Civil Code or is otherwise exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). Within 15 calendar days of receiving a completed audit and notice from the department that the audit will be posted on the department’s internet website, the PRO, producer, retailer, or wholesaler audited by the department shall specifically identify each portion of the audit that it claims constitutes or contains a trade secret. Notwithstanding any provision to the contrary in regulations promulgated pursuant to Section 40062, information not identified as a trade secret and information improperly identified as a trade secret shall be subject to disclosure pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) unless exempted from disclosure by another provision of law.

(Added by Stats. 2022, Ch. 75, Sec. 2. (SB 54) Effective January 1, 2023.)