California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 7 - Specific Kinds of Property and Exemptions Generally › Section 1591 - Medicines and Medical Devices

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
(1) Administer. "Administer" means the direct
				  application of a drug or device to the body of a patient or research subject by
				  injection, inhalation, ingestion, or other means.
(2) Dispense. "Dispense" means the furnishing
				  of drugs or devices upon a prescription from a physician, dentist, optometrist,
				  or podiatrist. Dispense also means and refers to the furnishing of drugs or
				  devices directly to a patient by a physician, dentist, optometrist, or
				  podiatrist acting within the scope of his or her practice.
(3) Furnish. "Furnish" means to supply by any
				  means, by sale or otherwise.
(4)
				  Health Facility. "Health Facility" as used herein has the meaning ascribed to
				  the term in section
				  1250
				  of the Health and Safety Code, and also includes "clinic" as defined in
				  sections
				  1200
				  and
				  1200.1
				  of the Health and Safety Code.
(A) Section
				  1250
				  of the Health and Safety Code provides that "health facility" means any
				  facility, place or building that is organized, maintained, and operated for the
				  diagnosis, care, prevention, and treatment of human illness, physical or
				  mental, including convalescence and rehabilitation and including care during
				  and after pregnancy, or for any one or more of these purposes, for one or more
				  persons, to which the persons are admitted for a 24-hour stay or
				  longer.
(B) Section
				  1200
				  of the Health and Safety Code provides that "clinic" means an organized
				  outpatient health facility which provides direct medical, surgical, dental,
				  optometric, or podiatric advice, services, or treatment to patients who remain
				  less than 24 hours, and which may also provide diagnostic or therapeutic
				  services to patients in the home as in incident to care provided at the clinic
				  facility. A place, establishment, or institution which solely provides advice,
				  counseling, information, or referrals on the maintenance of health or on the
				  means and measures to prevent or avoid sickness, disease, or injury, where such
				  advice, counseling, information, or referrals does not constitute the practice
				  of medicine, surgery, dentistry, optometry, or podiatry, shall not be deemed a
				  clinic for purposes of this subdivision.
(C) Section
				  1200.1
				  of the Health and Safety Code provides that "clinic" also means an organized
				  outpatient health facility which provides direct psychological advice,
				  services, or treatment to patients who remain less than 24 hours. As provided
				  in section
				  1204.1
				  of the Health and Safety Code, such clinics serve patients under the direction
				  of a clinical psychologist as defined in section
				  1316.5
				  of the Health and Safety Code, and are operated by a nonprofit corporation,
				  which is exempt from federal taxation under paragraph (3), subsection (c) of
				  section 501 of the Internal Revenue Code
				  of 1954, as amended, or a statutory successor thereof, and which is supported
				  and maintained in whole or in part by donations, bequests, gifts, grants,
				  government funds, or contributions which may be in the form of money, goods, or
				  services. In such clinics, any charges to the patient shall be based on the
				  patient's ability to pay, utilizing a sliding fee scale. Such clinics may also
				  provide diagnostic or therapeutic services authorized under chapter 6.6
				  (commencing with section
				  2900) of division 2 of the
				  Business and Professions Code to patients in the home as an incident to care
				  provided at the clinic facility.
(5) Pharmacist. "Pharmacist" means a person
				  to whom a license has been issued by the California State Board of Pharmacy,
				  under the provisions of section
				  4200 of the Business &
				  Professions Code, except as specifically provided otherwise in chapter 9 of the
				  Pharmacy Law.
(6) Pharmacy.
				  "Pharmacy" means an area, place, or premises licensed by the California State
				  Board of Pharmacy in which the profession of pharmacy is practiced and where
				  prescriptions are compounded. Pharmacy includes, but is not limited to, any
				  area, place, or premises described in a license issued by the California State
				  Board of Pharmacy wherein controlled substances, dangerous drugs, or dangerous
				  devices are stored, possessed, prepared, manufactured, derived, compounded, or
				  repackaged, and from which the controlled substances, dangerous drugs, or
				  dangerous devices are furnished, sold, or dispensed at retail. Pharmacy shall
				  not include any area specifically excluded by paragraph (b) of section
				  4037
				  of the Business and Professions Code.
(7) Prescription. "Prescription" means an
				  oral, written, or electronic transmission order that is issued by a physician,
				  dentist, optometrist, or podiatrist licensed in this state
and
given individually for the person or persons for whom ordered. The order must
				  include all of the following:
(A) The name or
				  names and address of the patient or patients.
(B) The name and quantity of the drug or
				  device prescribed and the directions for use.
(C) The date of issue.
(D) Either rubber stamped, typed, or printed
				  by hand or typeset, the name, address, and telephone number of the prescriber,
				  his or her license classification, and his or her federal registry number, if a
				  controlled substance is prescribed.
(E) A legible, clear notice of the conditions
				  for which the drug is being prescribed, if requested by the patient or
				  patients.
(F) If in writing, signed
				  by the prescriber issuing the order.
(8) Physicians, Dentists, Optometrists, and
				  Podiatrists. "Physicians," "dentists," "optometrists," and "podiatrists" are
				  persons authorized by a currently valid and unrevoked license to practice their
				  respective professions in this state. "Physician" means and includes any person
				  holding a valid and unrevoked physician's and surgeon's certificate or
				  certificate to practice medicine and surgery, issued by the Medical Board of
				  California or the Osteopathic Medical Board of California and includes an
				  unlicensed person lawfully practicing medicine pursuant to section
				  2065 of the Business &
				  Professions Code, when acting within the scope of that section.
(9) Medicines. "Medicines" means:
(A) Except where taxable for all uses as
				  provided in subdivision (c), any product fully implanted or injected in the
				  human body, or any drug or any biologic, when such are approved by the United
				  States Food and Drug Administration to diagnose, cure, mitigate, treat or
				  prevent disease, illness or medical condition regardless of ultimate use,
				  or
(B) Any substance or preparation
				  intended for use by external or internal application to the human body in the
				  diagnosis, cure, mitigation, treatment or prevention of disease and which is
				  commonly recognized as a substance or preparation intended for that use.
The term medicines also includes certain articles, devices,
					 and appliances as described in subdivision (b) of this regulation.
For purposes of subdivision (a)(9)(A), products "approved
					 by the United States Food and Drug Administration" means any product for which
					 a premarket notification was cleared by the United States Food and Drug
					 Administration or for which an application for premarket approval was approved
					 by the United States Food and Drug Administration.
Medicines are further defined in subdivisions (b) and (c)
					 below.