BILL NUMBER: AB 931	CHAPTERED  09/25/01

	CHAPTER  336
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2001
	APPROVED BY GOVERNOR  SEPTEMBER 24, 2001
	PASSED THE ASSEMBLY  AUGUST 30, 2001
	PASSED THE SENATE  AUGUST 27, 2001
	AMENDED IN SENATE  JUNE 25, 2001
	AMENDED IN ASSEMBLY  MAY 2, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001

INTRODUCED BY   Assembly Member Frommer
   (Coauthor:  Senator Scott)

                        FEBRUARY 23, 2001

   An act to add Section 12903.1 to the Insurance Code, relating to
the Insurance Commissioner.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 931, Frommer.  Insurance Commissioner:  restriction on travel
payments or reimbursements.
   Existing law regulates the business of insurance in California and
provides for the election of an Insurance Commissioner who, among
other things, is charged with the duty of enforcing the laws
regulating the business of insurance.  Under existing law, the
commissioner is authorized to incur traveling and other expenses as
are necessary, convenient, or advisable for the performance of his or
her duties.
   This bill would  prohibit the commissioner from accepting, using,
or benefiting from travel reimbursements or payments made to the
Department of Insurance from an entity or a private attorney or law
firm with a client subject to regulation by the commissioner, from a
private attorney or law firm that is under contract or consideration
for a contract to represent either the department or commissioner in
his or her official capacity, or from a private attorney or law firm
seeking attorney's fees under a specified provision of existing law.
The bill would authorize the Attorney General or any other person in
this state to file a civil action for a violation of these
provisions and would provide for assessment of a civil penalty in
that action.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12903.1 is added to the Insurance Code, to
read:
   12903.1.  (a) The commissioner may not accept, use, or in any
manner benefit from payments or reimbursements made to the department
for travel from any of the following:
   (1) A single source that is subject to regulation by the
commissioner.
   (2) A private attorney or law firm that is under contract or is
bidding on or under consideration for a contract to represent either
the department or the commissioner in his or her official capacity.
   (3) A private attorney or law firm that seeks to be awarded, or
has been awarded, advocacy fees under subdivision (b) of Section
1861.10.
   (4) A private attorney or law firm that has a client subject to
regulation by the commissioner.
   (b) For purposes of this section, any payment or reimbursement
provided by a representative of a person or entity subject to
regulation by the commissioner shall be deemed to be provided by the
regulated person or entity.
   (c) (1) The Attorney General or any other person within this state
may bring a civil action for the violation of this section.  The
court may assess a civil penalty in the amount of three times the
amount of the unlawful benefit or payment received by the
commissioner.
   (2) An action under this subdivision shall be filed within five
years of the date on which the violation occurred.  If the
commissioner engages in fraudulent concealment, the five-year period
shall be tolled for the period of the concealment.  For the purposes
of this paragraph, "fraudulent concealment" means the commissioner
knowingly concealed facts related to his or her travel expenditures
or reimbursements.