BILL NUMBER: SB 80	CHAPTERED  10/09/01

	CHAPTER  630
	FILED WITH SECRETARY OF STATE  OCTOBER 9, 2001
	APPROVED BY GOVERNOR  OCTOBER 8, 2001
	PASSED THE SENATE  SEPTEMBER 14, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2001
	AMENDED IN ASSEMBLY  AUGUST 30, 2001
	AMENDED IN ASSEMBLY  AUGUST 20, 2001

INTRODUCED BY   Senator Speier

                        JANUARY 11, 2001

   An act to add Section 1035.2 to the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 80, Speier.  Insurance:  Conservation and Liquidation Office.
   Existing law authorizes the Insurance Commissioner to appoint
personnel, including the Chief Executive Officer of the Conservation
and Liquidation Office (CLO).  Existing law also makes employees of
the state, as specified, subject to various conflict-of-interest
provisions and financial disclosure requirements, the violation of
which is punishable as a criminal offense.
   This bill would make the officers and employees of CLO subject to
the same conflict-of-interest and financial disclosure requirements
that would apply if they were employees of the Department of
Insurance and would require the department prior to February 1, 2002,
to adopt a Conflict of Interest Code, as specified, with respect to
those officers and employees.  The bill would also subject a person
contracting with CLO to conflict-of-interest requirements, as
specified, that would apply to the same extent as would apply to a
person with a similar contractual relationship with the department.
The bill would require the department to ensure compliance with its
provisions.
   Because this bill would add categories of persons subject to these
conflict-of-interest provisions, the violation of which is
punishable as a criminal offense, it would expand the scope of an
existing crime, thereby imposing a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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


  SECTION 1.  Section 1035.2 is added to the Insurance Code, to read:

   1035.2.  (a) The officers and employees of the Conservation and
Liquidation Office are subject to all conflict-of-interest provisions
and financial disclosure requirements that would apply if they were
employees of the department.
   (b) (1) Prior to February 1, 2002, the department shall determine,
pursuant to the provisions of Section 19990 of the Government Code,
those activities of the officers and employees of the Conservation
and Liquidation Office that are inconsistent, incompatible, or in
conflict with their duties as officers or employees of that office.
   (2) Prior to February 1, 2002, the department shall adopt and
promulgate a Conflict of Interest Code pursuant to the provisions of
Article 3 (commencing with Section 87300) of Chapter 7 of Title 9 of
the Government Code, pertaining to the officers and employees of the
Conservation and Liquidation Office.  The Conflict of Interest Code
and any other regulations necessary to implement this section shall
be promulgated by the department as emergency regulations.
   (c) The provisions of Chapter 7 (commencing with Section 87100) of
Title 9 of the Government Code shall apply to a person who contracts
with the Conservation and Liquidation Office to the same extent as
would apply if that person were entering into the same or similar
contractual relationship with the department.
   (d) The department shall ensure that the officers and employees of
the Conservation and Liquidation Office and persons who contract
with that office comply with all provisions of this section.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.