BILL NUMBER: SB 54	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 30, 2009

INTRODUCED BY   Senator Leno

                        JANUARY 15, 2009

    An act to amend Section 1365.5 of the Health and Safety
Code, and to amend Section 10140 of the Insurance Code, relating to
health care coverage.   An act to amend Section 308 of
the Family Code, relating to family law. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 54, as amended, Leno.  Health care coverage: pricing.
  Family law: extraterritorial same-sex marriages. 

   Existing law provides that a marriage contracted outside this
state that would be valid by the laws of the jurisdiction in which
the marriage was contracted is valid in this state. Existing case law
provides that, while on and after November 5, 2008, only marriage
between a man and a woman is valid or recognized in California,
marriages of same-sex couples that were performed prior to November
5, 2008, are valid.  
   This bill would provide that, notwithstanding any other provision
of law, a marriage between 2 persons of the same sex contracted
outside this state that would be valid by the laws of the
jurisdiction in which the marriage was contracted is valid in this
state if the marriage was contracted prior to November 5, 2008. 

   Existing case law also recognizes that while, effective November
5, 2008, same-sex couples lack the right to enter into a relationship
designated "marriage," they possess the right to the core set of
basic substantive legal rights and attributes traditionally
associated with marriage, including, the opportunity of an individual
to establish an officially recognized and protected family
possessing mutual rights and responsibilities and entitled to the
same respect and dignity accorded a union traditionally designated as
marriage.  
   This bill would specify that, notwithstanding any other provision
of law, 2 persons of the same sex who contracted a marriage on or
after November 5, 2008, that would be valid by the laws of the
jurisdiction in which the marriage was contracted shall have the same
rights, protections, and benefits, and shall be subject to the same
responsibilities, obligations, and duties under law, as specified, as
are granted to and imposed upon spouses with the sole exception of
the designation of "marriage."  
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans by the Department of Managed Health Care and makes a willful
violation of that act a crime. Existing law prohibits health care
service plans from charging premium, price, or charge differentials
because of the sex of any individual, but makes an exception for
differentials based on specified statistical and actuarial data.
 
   This bill would eliminate that exception.  
   Because a willful violation of this provision by a health care
service plan would be a crime, this bill would impose a
state-mandated local program.  
   Existing law provides for the regulation of life and disability
insurers by the Department of Insurance. Existing law prohibits life
and disability insurers from engaging in certain discriminatory
practices, but specifies that premium, price, or charge differentials
because of the sex of any individual are not prohibited when based
on specified statistical or actuarial data or sound underwriting
practices.  
   This bill would prohibit a health insurance policy from being
subject to premium, price, or charge differentials because of the sex
of any individual.  
   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. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program:  yes
  no  .


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

   SECTION 1.    Section 308 of the   Family
Code   is amended to read: 
   308.   (a)    A marriage contracted outside this
state that would be valid by the laws of the jurisdiction in which
the marriage was contracted is valid in this state. 
   (b) Notwithstanding any other provision of law, a marriage between
two persons of the same sex contracted outside this state that would
be valid by the laws of the jurisdiction in which the marriage was
contracted is valid in this state if the marriage was contracted
prior to November 5, 2008.  
   (c) Notwithstanding any other provision of law, two persons of the
same sex who contracted a marriage on or after November 5, 2008,
that would be valid by the laws of the jurisdiction in which the
marriage was contracted shall have the same rights, protections, and
benefits, and shall be subject to the same responsibilities,
obligations, and duties under law, whether they derive from the
California Constitution, the United States Constitution, statutes,
administrative regulations, court rules, government policies, common
law, or any other provisions or sources of law, as are granted to and
imposed upon spouses with the sole exception of the designation of
"marriage."  
  SECTION 1.    Section 1365.5 of the Health and
Safety Code is amended to read:
   1365.5.  (a) No health care service plan or specialized health
care service plan shall refuse to enter into any contract or shall
cancel or decline to renew or reinstate any contract because of the
race, color, national origin, ancestry, religion, sex, marital
status, sexual orientation, or age of any contracting party,
prospective contracting party, or person reasonably expected to
benefit from that contract as a subscriber, enrollee, member, or
otherwise.
   (b) The terms of any contract shall not be modified, and the
benefits or coverage of any contract shall not be subject to any
limitations, exceptions, exclusions, reductions, copayments,
coinsurance, deductibles, reservations, or premium, price, or charge
differentials, or other modifications because of the race, color,
national origin, ancestry, religion, sex, marital status, sexual
orientation, or age of any contracting party, potential contracting
party, or person reasonably expected to benefit from that contract as
a subscriber, enrollee, member, or otherwise; except that premium,
price, or charge differentials because of the age of any individual
when based on objective, valid, and up-to-date statistical and
actuarial data are not prohibited.
   (c) It shall be deemed a violation of subdivision (a) for any
health care service plan to utilize marital status, living
arrangements, occupation, sex, beneficiary designation, ZIP Codes or
other territorial classification, or any combination thereof for the
purpose of establishing sexual orientation. Nothing in this section
shall be construed to alter in any manner the existing law
prohibiting health care service plans from conducting tests for the
presence of human immunodeficiency virus or evidence thereof.
   (d) This section shall not be construed to limit the authority of
the director to adopt or enforce regulations prohibiting
discrimination because of sex, marital status, or sexual orientation.

   (e) "Sex" as used in this section shall have the same meaning as
"gender," as defined in Section 422.56 of the Penal Code. 

  SEC. 2.    Section 10140 of the Insurance Code is
amended to read:
   10140.  (a) No admitted insurer, licensed to issue life or
disability insurance, shall fail or refuse to accept an application
for that insurance, to issue that insurance to an applicant therefor,
or issue or cancel that insurance, under conditions less favorable
to the insured than in other comparable cases, except for reasons
applicable alike to persons of every race, color, religion, sex,
national origin, ancestry, or sexual orientation. Race, color,
religion, national origin, ancestry, or sexual orientation shall not,
of itself, constitute a condition or risk for which a higher rate,
premium, or charge may be required of the insured for that insurance.
Unless otherwise prohibited by law and except as provided in
subdivision (b), premium, price, or charge differentials because of
the sex of any individual when based on objective, valid, and
up-to-date statistical and actuarial data or sound underwriting
practices are not prohibited.
   (b) A health insurance policy shall not be subject to premium,
price, or charge differentials because of the sex of any individual.
   (c) Except as otherwise permitted by law, no admitted insurer,
licensed to issue disability insurance policies for hospital,
medical, and surgical expenses, shall fail or refuse to accept an
application for that insurance, fail or refuse to issue that
insurance to an applicant therefor, cancel that insurance, refuse to
renew that insurance, charge a higher rate or premium for that
insurance, or offer or provide different terms, conditions, or
benefits, or place a limitation on coverage under that insurance, on
the basis of a person's genetic characteristics that may, under some
circumstances, be associated with disability in that person or that
person's offspring.
   (d) No admitted insurer, licensed to issue disability insurance
for hospital, medical, and surgical expenses, shall seek information
about a person's genetic characteristics for any nontherapeutic
purpose.
   (e) No discrimination shall be made in the fees or commissions of
agents or brokers for writing or renewing a policy of disability
insurance, other than disability income, on the basis of a person's
genetic characteristics that may, under some circumstances, be
associated with disability in that person or that person's offspring.

   (f) It shall be deemed a violation of subdivision (a) for any
insurer to consider sexual orientation in its underwriting criteria
or to utilize marital status, living arrangements, occupation, sex,
beneficiary designation, ZIP Codes or other territorial
classification within this state, or any combination thereof for the
purpose of establishing sexual orientation or determining whether to
require a test for the presence of the human immunodeficiency virus
or antibodies to that virus, where that testing is otherwise
permitted by law. Nothing in this section shall be construed to
alter, expand, or limit in any manner the existing law respecting the
authority of insurers to conduct tests for the presence of human
immunodeficiency virus or evidence thereof.
   (g) This section shall not be construed to limit the authority of
the commissioner to adopt regulations prohibiting discrimination
because of sex, marital status, or sexual orientation or to enforce
these regulations, whether adopted before or on or after January 1,
1991.
   (h) "Genetic characteristics" as used in this section shall have
the same meaning as defined in Section 10123.3.
   (i) "Sex" as used in this section shall have the same meaning as
"gender," as defined in Section 422.56 of the Penal Code. 

  SEC. 3.    (a) The amendments made by this act to
Section 1365.5 of the Health and Safety Code shall apply to health
care service plan contracts issued, amended, or renewed on or after
January 1, 2010.
   (b) The amendments made by this act to Section 10140 of the
Insurance Code shall apply to health insurance policies issued,
amended, or renewed on or after January 1, 2010.  
  SEC. 4.    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.