Counter with double vanity was replaced with wall-hung lavatory to accommodate handicap. Existing GFIC outlet was not relocated and is directly above the faucet (approximately 2" - 3". Wall-hung lavy is single hold faucet with front overflow. Original GFIC installed in 1998 or 1999. Does NEC and California electrical code requirements accept distance of the GFIC in the proximity of the newly installed lavatory/sink.

The NEC does not!

However, the GFCI receptacle must be within 3 ft. of the basin edge.

Do you need the code article and section?

Thank you very much for your assistance. Yes, may I have the code article and section. Is this information stated in the NEC 2011 or a publication within the last two years?

At least one GFCI protected receptacle must be installed within 36" of the outside edge of the lavatory. (IRC E 3801.6)

The NEC code referance is NEC 210.8 A
Nowhere does it say how close it can be mounted just the maximun distance away... Regardless of code, common sense would come into play here and suggest you not install it so closely, but as far as code goes no problem that close to the faucet.