Section 3374. Notification by licensee

Persons licensed or certified
  pursuant to this article shall be under a continuing  duty  to  promptly
  notify the department of:
    1.  Each  incident  or  alleged  incident  of  theft, loss or possible
  diversion of controlled substances manufactured, ordered, distributed or
  possessed by such person;
    2. Any charge or  proceeding  brought  in  any  court  or  before  any
  governmental  agency,  state or federal, in which it is alleged that the
  licensee, its employees, subsidiaries, managing officers,  or  directors
  has  failed  to  comply  with  the  provisions of the federal controlled
  substances  act  or  the  laws  of  any  state  relating  to  controlled
  substances.