BILL NUMBER: AB 2717 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 7, 2010
INTRODUCED BY Assembly Member Skinner
FEBRUARY 19, 2010
An act to amend Sections 31316 and 31351 of the Public
Resources Code, relating to the State Coastal Conservancy.
An act to amend Section 787.1 of the Insurance Code, relating to
insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2717, as amended, Skinner. State Coastal Conservancy.
Insurance: agents and brokers: senior designation:
use.
Existing law provides that a broker or agent may not use a senior
designation unless he or she has met certain conditions, including,
but not limited to, that the broker or agent has been granted the
right and is currently authorized to use the senior designation by
the organization that issues the designation, and the senior
designation has been approved by the Insurance Commissioner for use
by brokers and agents in the sale of insurance to seniors, as
provided.
This bill would require that the commissioner approve a senior
designation only if the organization that issues the designation
satisfies specified requirements, including, but not limited to,
accreditation standards, education and examination requirements, and
having minimum standards and procedures regarding disciplining the
organization's designees for improper or unethical conduct.
This bill would also make conforming changes and delete obsolete
provisions.
Existing law establishes the State Coastal Conservancy with
prescribed powers and responsibilities for implementing a program of
agricultural land protection, area restoration, and resource
enhancement within the coastal zone, as defined. Existing law
authorizes the conservancy to undertake projects and award grants for
activities that are compatible with the preservation, restoration,
or enhancement of ocean, coastal, or watershed resources, or that
facilitate environmental education related to these resources. These
projects or activities may include, but are not limited to, exhibits
or events emphasizing coastal, watershed, or ocean resource
education, or maritime history or the development of related
amenities and structures.
This bill would additionally include as projects low-impact
development techniques that integrate stormwater management into site
planning and design to reduce runoff, increase onsite infiltration,
or filter pollutants at or near the source.
Existing law requires the conservancy to cooperate with the
California Coastal Commission, the San Francisco Bay Conservation and
Development Commission, and other public agencies and with nonprofit
organizations in ensuring the reservation of interests in real
property for purposes of the conservancy, as well as for park,
recreation, fish and wildlife habitat, historical preservation, or
scientific study required to meet the objectives of the California
Coastal Act of 1976, and in the case of San Francisco Bay, certain
local plans.
This bill would additionally require this cooperation for purposes
of coastal and marine water quality protection and enhancement, and
to meet the California Ocean Protection Act, the strategic plan of
the Ocean Protection Council, and regional plans.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 787.1 of the
Insurance Code is amended to read:
787.1. (a) The following definitions apply to this section:
(1) "Senior designation" means any degree, title, credential,
certificate, certification, accreditation, or approval, that
expresses or implies that a broker or agent possesses expertise,
training, competence, honesty, or reliability with regard to advising
seniors in particular on finance, insurance, or risk management.
(2) "Use" means utilizing a word, phrase, acronym, or logo, in any
oral or written communication from which a sale of insurance to a
senior may directly or indirectly result, that states or suggests,
alone or in context, that a broker or agent holds a senior
designation.
(b) (1) A broker or agent may not use a senior designation unless
all of the following conditions have been met:
(A) The broker or agent has been granted the right to use the
senior designation by the organization that issues the senior
designation, and the broker or agent is currently authorized by the
organization to use the designation.
(B) The senior designation has been approved by the commissioner
for use by brokers and agents in the sale of insurance to seniors.
(C) The broker or agent has been licensed for at least four years
in any state or United States territory to sell the types
of insurance with which the designation is used.
(2) A broker or agent may not use a senior designation in a manner
that misleads a person as to the significance of the senior
designation. Each time a broker or agent uses a senior designation in
a writing, the writing shall also contain the words "California" or
"CA" next to "Insurance Agent" or "Insurance Broker Agent" and
"License," and these words shall be located immediately prior to the
broker's license number or the agent's license number, in type that
is in the same font and at least the same size as the type used for
the senior designation. The requirements set forth in this
subdivision are in addition to the requirements of Section 1725.5 and
shall apply regardless of whether the broker or agent is an
insurance agent, as defined in Section 1621. For purposes of this
paragraph, "writing" means business cards, written price quotations,
and print advertisements distributed exclusively in this state.
(c) The commissioner shall approve a senior designation only if
the organization that issues the designation satisfies all of the
following requirements with respect to the designation:
(1) The organization has applied for approval on a form prescribed
by the commissioner.
(A) A designation shall not be approved if an incomplete
application form is submitted to the department. The incomplete
application shall remain on file for one year unless withdrawn by the
applicant. After one year, a new application is required. The
department shall notify the applicant when the application and all
required supporting documents have been received; however,
notification that an application is complete does not mean approval
has been or will be granted. The department shall decide whether to
approve a designation within 90 days of receiving a completed
application and all required supporting documents and additional
information. If the department initiates an investigation of an
applicant on suspicion that grounds exist to deny the application,
the 90-day period shall be tolled until the completion of the
investigation. If, after the completion of the investigation, the
applicant is referred to the department's legal division, the
department shall have an additional 45 days from the date of the
referral to issue a statement of issues pursuant to Section 11504 of
the Government Code, or to issue the approval.
(B) The department may require the filing of any supplementary
documents and declarations it deems necessary to determine whether
the prerequisites for approval have been met.
(C) An organization shall notify the department in writing within
45 days following any material change in information recorded on the
application form or in declarations or documents submitted along with
it or in response to a department request.
(2) The designation is accredited by the National Commission for
Certifying Agencies, or the organization or the designation is
accredited by an agency that is on the United States Department of
Education's list entitled "Accrediting Agencies Recognized for Title
IV Purposes" and the agency is clearly and convincingly qualified to
accredit an organization or designation involved with financial
services provided to seniors.
(3) (A) The organization requires California candidates for the
designation to pass examinations that are based on applicants with no
prior insurance education or experience completing at least 75 hours
of study covering at least the following topics: aspects of aging,
health care coverage, long-term care insurance, financial planning
for retirement, investments, estate planning, and ethics. Textbooks
or other study materials may use chapter and subchapter titles that
differ from those general topics as long as the essential content is
the same.
(B) A designation may be approved without the organization that
issues it establishing compliance with subparagraph (A) if, in the
opinion of the commissioner, the organization has proven clearly and
convincingly both of the following:
(i) Its examinations ensure that its designees generally possess
superior expertise in advising seniors in particular in finance,
insurance, or risk management comparable to a designee who has
completed a course of study pursuant to subparagraph (A).
(ii) Study material typically used to prepare for the examinations
cover most of the topics recited in subparagraph (A).
(c)
(d) (1) In determining whether to approve a senior
designation for use in the sale of insurance to seniors, the
commissioner shall also ensure that the organization that
issues the senior designation fulfills the following:
(A) Requires applicants for the designation to complete a minimum
number of hours of education in topics approved by the commissioner
before granting them the right to use its senior designation. The
courses must be relevant to the sale of insurance to seniors.
(B)
(A) Is exclusively an educational or certification
organization, and is not directly or indirectly, through an affiliate
or partner, involved in selling insurance, nor receives any
compensation directly or indirectly from any sale of insurance.
(C)
(B) Maintains reasonable standards
and procedures for disciplining its designees for improper or
unethical conduct, as established by proven complaints or by
disciplinary action by a government licensing agency or a
quasi-governmental licensing and regulatory organization. The
standards and procedures shall include, at a minimum:
(i) A written procedure to receive, log, and conduct a preliminary
review of complaints alleging improper, illegal, or unethical
conduct.
(ii) Written standards for determining when a complaint warrants
further investigation into the merits of the allegations contained
therein.
(iii) Written standards and procedures to ensure that, once a
complaint is determined to warrant further investigation, the
investigation is diligently conducted.
(iv) Written standards for determining when to file disciplinary
charges based on the results of an investigation.
(v) Written standards and procedures to ensure due process in the
adjudication of disciplinary charges by adjudicators who are fair,
knowledgeable, and otherwise qualified.
(vi) Written standards and procedures for the imposition of
appropriate sanctions, including, when warranted, revocation of the
designation.
(D) Imposes reasonable continuing education requirements or other
means of periodically verifying a designee's knowledge and skill, in
order for designees to retain the senior designation in good
standing.
(E)
(C) Maintains a code of ethics for its California
designees consistent with that of one of the designat
ions recited in Section 1749.4 .
(F) Maintains reasonable standards and procedures to test for
proper mastery of the knowledge and skill required to receive the
designation.
(G) The commissioner may recognize an accredited organization for
the purpose of this subdivision when the organization has been
accredited by the American National Standards Institute, the National
Commission for Certifying Agencies, or an organization that is on
the United States Department of Education's list entitled
"Accrediting Agencies Recognized for Title IV Purposes" and the
certification, credential, or professional designation issued
therefrom does not primarily apply to sales and or marketing.
(2) A senior designation shall not be approved by the commissioner
unless the courses required to earn it include, at a minimum,
material covering the following topics: insurance products marketed
to seniors; statutes, regulations, and case law applicable to
seniors; social, psychological, and medical issues of seniors; and
marketing of insurance to seniors, including when a duty of good
faith and fair dealing exists.
(3) The commissioner shall consult with the curriculum board
created pursuant to subdivision (a) of Section 1749.1 regarding the
course material that should be deemed relevant to the sale of
insurance to seniors, and regarding the minimum number of hours
referred to in subparagraph (A) of paragraph (1) of subdivision (c).
The minimum number of hours required shall be at least 75.
(d)
(e) (1) A word, phrase, acronym, or logo shall be
deemed a senior designation if it contains the word "senior,"
"Medicare," "Medi-Cal," "retire," "mature,"
"gerontology," or "elder," or any variation or synonym of one of
these words within several words of the word "certified," "chartered,"
"registered," "adviser," "specialist," "consultant," "agent,"
"broker," "insurance," "planner," "professional," "enrolled,"
"accredited," "analyst," or "fellow," or any variation or synonym of
one of these words. A word, phrase, acronym, or logo may constitute a
senior designation if it meets the definition in paragraph (1) of
subdivision (a) regardless of whether it contains one of the words
recited in this subdivision.
(2) A word, phrase, acronym, or logo shall not constitute a senior
designation if it is a job title or description of an employee of a
government entity, or of an organization with a contract with that
government entity to provide free counseling to seniors.
(3) No exemption exists under this section for use of a senior
designation that constitutes a job title or description or part of a
job title or description, except as provided in paragraph (2)
of subdivision (d) .
(4) An advanced academic degree, such as a Ph.D., M.B.A., or M.S.,
may be used without compliance with subdivision (c)
(d) , if the degree was awarded by an
institution of higher education that has been accredited by an
organization that is on the United States Department of Education's
list entitled "Accrediting Agencies Recognized for Title IV Purposes."
(e)
(f) A violation of subdivision (b) by a broker or agent
shall be grounds for suspension or revocation of the broker or agent'
s license pursuant to Sections 1668 and 1738. Such a violation also
shall be grounds for a cease and desist order and monetary penalty
pursuant to Section 12921.8, as if the broker or agent had acted in a
capacity for which a license was required but not possessed.
(f)
(g) Any person who grants to a California resident the
right to use a senior designation that has not been approved by the
commissioner, without reasonably attempting to determine whether
California is one of the designee's residences, shall be subject to a
cease and desist order and monetary penalty pursuant to Section
12921.8, as if the person had acted in a capacity for which a license
was required but not possessed.
(g)
(h) The disciplinary and remedial authority recited in
this subdivision shall be in addition to any other disciplinary and
remedial authority included in this code.
(h)
(i) Notwithstanding any other provision of this code,
the criteria in Sections 1668 and 1668.5 apply to an organization
that issues a senior designation, and the commissioner may deny or
rescind approval of an organization issuing a senior designation
based on that criteria.
(i) On and after January 1, 2009, and on or before June 30, 2010,
notwithstanding subdivision (f), an organization may issue
designations, and an agent or broker who has complied with
subparagraphs (A) and (C) of paragraph (1) of subdivision (b) may use
a designation, as long as the commissioner has made a determination
that the organization, with respect to the designation, has for the
past four years continuously done the following:
(1) Met the requirements of subparagraphs (B) to (F), inclusive,
of paragraph (1) of subdivision (c).
(2) Met the requirements of paragraph (2) of subdivision (c).
(3) Required at least 75 hours of education in topics relevant to
the sale of insurance to seniors before issuing the designation.
(j) The commissioner shall maintain a list of senior designations
approved pursuant to subdivision (c), and determinations
made pursuant to subdivision (i), subdivisions (c),
(d), and (e) and shall publish the current list on the Internet
Web site of the Department of Insurance.
(k) A broker or agent holding a designation that was obtained
before January 1, 2009, may continue to use that designation until
June 30, 2010, if the organization that issued the designation meets
the requirements of subdivision (c) or (i) and certifies in a letter
to the broker or agent that he or she has completed at least 75 hours
of education in topics relevant to the sale of insurance to seniors.
(k) This section shall apply to all types of insurance, including
those listed in paragraphs (1) and (2) of subdivision (c) of Section
785, except those listed in paragraphs (3) to (7), inclusive, and
paragraph (9) of subdivision (c) of Section 785 and subdivision (d)
of Section 785.
(l) The commissioner may, upon receipt of a petition from an
organization, issue written confirmation that a designation issued by
that organization is exempt from the requirement of approval
pursuant to this section. The commissioner may issue confirmation if
the designation, according to its title or curriculum, or in its
actual use, concerns almost exclusively subject matters other than
insurance or financial services sold to seniors in particular.
SECTION 1. Section 31316 of the Public
Resources Code is amended to read:
31316. Within the conservancy's jurisdiction pursuant to this
chapter and within urban coastal watershed areas, the conservancy may
undertake projects and award grants for activities that are
compatible with the preservation, restoration, or enhancement of
ocean, coastal, or watershed resources, or that facilitate
environmental education related to these resources. These projects or
activities may include, but are not limited to, exhibits or events
emphasizing coastal, watershed, or ocean resource education, or
maritime history, or the development of amenities and infrastructure
consistent with this chapter, including low-impact development
techniques that integrate stormwater management into site planning
and design to reduce runoff, increase onsite infiltration, or filter
pollutants at or near the source. These techniques include the use of
onsite stormwater capture, vegetated swales, bioretention basins,
and permeable pavement and soils for new construction or retrofit
projects.
SEC. 2. Section 31351 of the Public Resources
Code is amended to read:
31351. (a) The conservancy shall cooperate with the commission,
bay commission, and other public agencies and with nonprofit
organizations in ensuring the reservation of interests in real
property for purposes of this division, as well as for park,
recreation, fish and wildlife habitat, coastal and marine water
quality protection and enhancement, historical preservation, or
scientific study required to meet the policies and objectives of the
California Coastal Act of 1976 (commencing with Section 30000), or a
certified local coastal plan or program; the California Ocean
Protection Act (commencing with Section 35500) and the most current
adopted strategic plan of the Ocean Protection Council; or, in the
case of San Francisco Bay, the sites identified in the bay plan, the
Suisun Marsh Protection Plan, or in any other local plan that the bay
commission determines to be consistent with those plans; or, in
coastal or coastal watershed areas not within the coastal zone or San
Francisco Bay, any other local or regional plans.
(b) The provisions of this division shall not diminish or
otherwise affect the authority of the bay commission to approve,
deny, or modify permits as provided in Section 66632 of the
Government Code.