(a) (1) Each narcotic treatment program authorized to use
narcotic replacement therapy in this state, except narcotic treatment
research programs approved by the Research Advisory Panel, shall be
licensed by the department.
   (2) Each narcotic treatment program, other than a program owned
and operated by the state, county, city, or city and county, shall,
upon application for licensure and for renewal of a license, pay an
annual license fee to the department. July 1 shall be the annual
license renewal date.
   (3) The department shall set the licensing fee at a level
sufficient to cover all departmental costs associated with licensing
incurred by the department, but the fee shall not, except as
specified in this section, increase at a rate greater than the
Consumer Price Index. The fees shall include the department's share
of pro rata charges for the expenses of state government. The fee may
be paid quarterly in arrears as determined by the department. Fees
paid quarterly in arrears shall be due and payable on the last day of
each quarter except for the fourth quarter for which payment shall
be due and payable no later than May 31. A failure of a program to
pay renewal license fees by the due date shall give rise to a civil
penalty of one hundred dollars ($100) a day for each day after the
due date. Second and subsequent inspection visits to narcotic
treatment programs that are operating in noncompliance with the
applicable laws and regulations shall be charged a rate of one-half
the program's annual license fee or one thousand dollars ($1,000),
whichever is less, for each visit.
   (4) Licensing shall be contingent upon determination by the
department that the program is in compliance with applicable laws and
regulations and upon payment of the licensing fee. A license shall
not be transferable.
   (5) (A) As used in this chapter, "quarter" means July, August, and
September; October, November, and December; January, February, and
March; and April, May, and June.
   (B) As used in this chapter, "license" means a basic permit to
operate a narcotic treatment program. The license shall be issued
exclusively by the department and operated in accordance with a
patient capacity that shall be specified, approved, and monitored
solely by the department.
   (b) Each narcotic treatment program, other than a program owned
and operated by the state, county, city, or city and county, shall be
charged an application fee that shall be at a level sufficient to
cover all departmental costs incurred by the department in processing
either an application for a new program license, or an application
for an existing program that has moved to a new location.
   (c) Any licensee that increases fees to the patient, in response
to increases in licensure fees required by the department, shall
first provide written disclosure to the patient of that amount of the
patient fee increase that is attributable to the increase in the
licensure fee. This provision shall not be construed to limit patient
fee increases imposed by the licensee upon any other basis.