BILL NUMBER: AB 2589	CHAPTERED  09/26/08

	CHAPTER  331
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2008
	PASSED THE SENATE  AUGUST 11, 2008
	PASSED THE ASSEMBLY  AUGUST 13, 2008
	AMENDED IN SENATE  AUGUST 6, 2008
	AMENDED IN SENATE  JUNE 30, 2008
	AMENDED IN ASSEMBLY  APRIL 22, 2008
	AMENDED IN ASSEMBLY  APRIL 9, 2008

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 22, 2008

   An act to add Section 1367.08 to the Health and Safety Code, and
to add Section 10604.5 to the Insurance Code, relating to health
care.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2589, Solorio. Health care coverage: public agencies.
   The Knox-Keene Health Care Service Plan Act of 1975, the willful
violation of which is a crime, provides for the licensing and
regulation of health care service plans by the Department of Managed
Health Care. Existing law provides for the regulation of health
insurers by the Department of Insurance. Under existing law, health
care service plans and health insurers are required to make certain
disclosures to enrollees and insureds. Existing law also provides for
the licensing and regulation of insurance agents and brokers.
   This bill would require a health care service plan or a health
insurer to annually disclose to the governing board of a public
agency that is the subscriber of a group contract or the policyholder
of a group health insurance policy specified information, including,
but not limited to, any fees or commissions paid to any agent,
broker, or other individual related to the public agency's group
contract or policy. Because the bill would create a new requirement
under the Knox-Keene Health Care Service Plan Act of 1975, the
willful violation of which would be a crime, it would impose 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 1367.08 is added to the Health and Safety Code,
to read:
   1367.08.  A health care service plan shall annually disclose to
the governing board of a public agency that is the subscriber of a
group contract, the name and address of, and amount paid to, any
agent, broker, or individual to whom the plan paid fees or
commissions related to the public agency's group contract. As part of
this disclosure, the health care service plan shall include the
name, address, and amounts paid to the specific agents, brokers, or
individuals involved in transactions with the public agency. The
compensation disclosure required by this section is in addition to
any other compensation disclosure requirements that exist under law.
  SEC. 2.  Section 10604.5 is added to the Insurance Code, to read:
   10604.5.  An insurer shall annually disclose to the governing
board of a public agency that is the policyholder of a group health
insurance policy, the name and address of, and amount paid to, any
agent, broker, or individual to whom the insurer paid fees or
commissions related to the public agency's group health insurance
policy. As part of this disclosure, the insurer shall include the
name, address, and amounts paid to the specific agents, brokers, or
individuals involved in transactions with the public agency. The
compensation disclosure required by this section is in addition to
any other compensation disclosure requirements that exist under law.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.