BILL NUMBER: SB 1169	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 20, 2010
	AMENDED IN SENATE  MAY 28, 2010
	AMENDED IN SENATE  APRIL 26, 2010

INTRODUCED BY   Senator Lowenthal

                        FEBRUARY 18, 2010

    An act to amend Sections 1367.01, 1371, 1371.35, and
1374.72 of, and to add Section 1370.8 to, the Health and Safety Code,
and to amend Sections 10123.13, 10123.135, 10123.147, and 10144.5
of, and to add Section 10123.125 to, the Insurance Code, relating to
health care coverage.   An act to amend Section 17516 of
the Government Code, and to amend Sections 175, 182, 186, 1055,
1055.2, 1228.5, 1228.7, 1241, 1241.6, 1410, 1675, 1701.3, 1703.6,
13176, 13193, 13204, 13220, 13261, 13274, 13285, 13291, 13304.1,
13320, 13330, 13376, 13392, 13392.5, 13395.5, 13396.7, 13426, 13442,
13521, 13522, 13523, 13523.1, 13528, 13540, 13552.4, 13553, 13576,
13578, 13580.9, 13627, 13627.4, 13755, 13800, 13801, 13903, 13904,
and 13952.1 of, to amend the headings of Article 1 (commencing with
  Section 13300) and Article 2 (commencing with Section
13320) of Chapter 5 of Division 7 of, to amend and renumber Section
13274 of, to add Section 13248 to, and to repeal Sections 1062 and
1241.5 of, the Water Code, relating to water. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1169, as amended, Lowenthal.  Health care coverage:
claims: prior authorization: mental health.   Water.
 
   (1) Existing law establishes the State Water Resources Control
Board (state board) and the 9 California regional water quality
control boards (regional boards) as the principal state agencies with
authority over matters relating to water quality. Existing law
authorizes a party aggrieved by a specified decision or order issued
by the state board to obtain review of the order in superior court by
filing a petition for writ of mandate within 30 days after service
of a copy of the state board's decision or order. Existing law
authorizes a party aggrieved by a final decision or order of a
regional board for which the state board denies review to obtain
review of the decision or order of the regional board in superior
court by filing a petition for writ of mandate within 30 days after
the date on which the state board denies review.  
   This bill would provide that an aggrieved party must file a
petition for reconsideration with the state board to exhaust that
party's administrative remedies only if the initial decision or order
is issued under authority delegated to an officer or employee of the
state board and the state board by regulation has authorized a
petition for reconsideration. The bill, with respect to a decision or
order of a regional board, would specify that the authorization to
obtain review of the decision or order of the regional board applies
to a final decision or order of a regional board subject to review
under a certain provision of law.  
   (2) The California Environmental Quality Act (CEQA) prescribes
various timelines for commencing an action or proceeding to attack,
review, set aside, void, or annul acts or decisions of a public
agency on the grounds of noncompliance with CEQA.  
   This bill would provide that the time for filing an action or
proceeding subject to these timelines for a person who seeks review
of the regional board's decision or order under a specified provision
of law, or who seeks reconsideration under a state board regulation
authorizing a petition for reconsideration, shall commence upon the
state board's completion of that review or reconsideration. 

   (3) Under existing law, each California regional water quality
control board consists of 9 members who are appointed by the Governor
and who serve 4-year terms.  
   This bill would extend the terms of 2 board members on each
regional water quality control board, as specified, to September 30,
2014.  
   (4) Existing law requires that, prior to the indoor use of
recycled water in a condominium project, the agency delivering the
recycled water to the condominium project file a report with the
regional board and receive written approval of the report from the
State Department of Public Health.  
   This bill instead would require the agency to file the report with
the State Department of Public Health.  
   (5) This bill would update cross-references in, and delete
obsolete provisions of, the Water Code, and make various other
technical or clarifying changes.  
   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 the act a crime. Existing law provides for the
regulation of health insurers by the Department of Insurance.
Existing law requires health care service plans and health insurers
to have written policies and procedures establishing the process by
which the plans or insurers prospectively, retrospectively, or
concurrently review and approve, modify, delay, or deny, based in
whole or in part on medical necessity, requests by providers of
health care services for enrollees or insureds. Existing law requires
health care service plans and health insurers to reimburse
uncontested claims within 30 or 45 working days and specifies that a
claim is contested if the plan or insurer has not received a
completed claim and all information necessary to determine payer
liability.  
   This bill would require plans and insurers to assign a tracking
number to a claim or provider request for authorization, upon receipt
thereof, and to provide acknowledgment of receipt thereof, including
identification of the tracking number, to the provider, as
specified. With respect to claims that are contested on the basis
that the plan or insurer has not received all information necessary
to determine payer liability for the claim, the bill would require
the plan or insurer to provide acknowledgment of receipt of any of
that information within 3 working days, as specified. 

   Existing law requires a health care service plan contract or
health insurance policy to provide coverage for the diagnosis and
medically necessary treatment of severe mental illnesses, as defined,
of a person of any age, and of serious emotional disturbances of a
child, under the same terms and conditions that apply to other
medical conditions. Existing law specifies that these terms and
conditions include maximum lifetime benefits, copayments, and
individual family deductibles.  
   This bill would specify that these terms and conditions include,
but are not limited to, any form of treatment limitation, or other
action by a plan or insurer that may limit the receipt of the covered
benefits described above.  
   Because a willful violation of the bill's provisions with respect
to health care service plans would be a crime, the bill 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. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  yes   no  .


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

   SECTION 1.    Section 17516 of the  
Government Code   is amended to read: 
   17516.  "Executive order" means  any   an
 order, plan, requirement, rule, or regulation issued by any of
the following:
   (a) The Governor.
   (b)  Any   An  officer or official
serving at the pleasure of the Governor.
   (c)  Any   An    agency,
department, board, or commission of state government. 
   "Executive order" does not include any order, plan, requirement,
rule, or regulation issued by the State Water Resources Control Board
or by any regional water quality control board pursuant to Division
7 (commencing with Section 13000) of the Water Code. It is the intent
of the Legislature that the State Water Resources Control Board and
regional water quality control boards will not adopt enforcement
orders against publicly owned dischargers which mandate major waste
water treatment facility construction costs unless federal financial
assistance and state financial assistance pursuant to the Clean Water
Bond Act of 1970 and 1974, is simultaneously made available. "Major"
means either a new treatment facility or an addition to an existing
facility, the cost of which is in excess of 20 percent of the cost of
replacing the facility. 
   SEC. 2.    Section 175 of the   Water Code
  is amended to read: 
   175.   (a)    There is in the  Resources
  California Environmental Protection  Agency the
State Water Resources Control Board consisting of five members
appointed by the Governor. One of the members appointed shall be an
attorney admitted to practice law in this state who is qualified in
the fields of water supply and water rights, one shall be a
registered civil engineer under the laws of this state who is
qualified in the fields of water supply and water rights, one shall
be a registered professional engineer under the laws of this state
who is experienced in sanitary engineering and who is qualified in
the field of water quality, and one shall be qualified in the field
of water quality. One of the above-appointed persons, in addition to
having the specified qualifications, shall be qualified in the field
of water supply and water quality relating to irrigated agriculture.
One member shall not be required to have specialized experience.

   Each 
    (b)     Each  member shall represent
the state at large and not any particular portion thereof and shall
serve full time. The board shall, to the extent possible, be composed
of members from different regions of the state. The appointments
 so  made by the Governor shall be subject to
confirmation by the Senate in accordance with Article 2 (commencing
with Section 1770) of Chapter 4 of Division 4 of Title 1 of the
Government Code.
   SEC. 3.    Section 182 of the   Water Code
  is amended to read: 
   182.  The Governor shall designate the  chairman 
 chairperson  of the board from the membership of the
board. The person so designated shall hold the office of 
chairman   chairperson  at the pleasure of the
Governor. The board shall elect a vice  chairman 
 chairperson  .
   SEC. 4.    Section 186 of the   Water Code
  is amended to read: 
   186.  (a) The board shall have any powers, and may employ any
legal counsel and other personnel and assistance, that may be
necessary or convenient for the exercise of its duties authorized by
law.
   (b) For the purpose of administration, the board shall organize
itself, with the approval of the Governor, in the manner it deems
necessary properly to segregate and conduct the work of the board.
The work of the board shall be divided into at least two divisions,
known as the Division of Water Rights and the Division of Water
Quality. The board shall appoint a  deputy director or division
 chief  of   for  each division, who
shall supervise the work  thereof   of the
division  and act as technical adviser to the board on functions
under his or her jurisdiction.
   (c) The Attorney General shall represent the board, or any
affected regional water quality control board, or both the board and
the regional board, and the state in litigation concerning affairs of
the board, or a regional board, or both, unless the Attorney General
represents another state agency that is a party to the action. In
that case, the Attorney General may represent the board, the regional
board, or both, with the written consent of the board and the other
state agency, the board may contract for the services of private
counsel to represent the board, the regional board, or both, subject
to Section 11040 of the Government Code, or the legal counsel of the
board may represent the board, the regional board, or both. Sections
11041, 11042, and 11043 of the Government Code are not applicable to
the board. The legal counsel of the board shall advise and furnish
legal services, except representation in litigation, to the regional
boards upon their request.
   SEC. 5.    Section 1055 of the   Water Code
  is amended to read: 
   1055.  (a) The executive director of the board may issue a
complaint to any person or entity on which administrative civil
liability may be imposed pursuant to Section 1052,  Section
1536, Section 1845,   Article 4 (commencing with Section
1845) of Chapter 12 of Part 2 of Division 2,  or Section 5107.
The complaint shall allege the act or failure to act that constitutes
a trespass or violation, the provision of law authorizing civil
liability to be imposed, and the proposed civil liability.
   (b) The complaint shall be served by personal notice or certified
mail, and shall inform the party served that the party may request a
hearing not later than 20 days from the date the party was served.
The hearing shall be before  the board or  a member of the
board  as it may specify   , in accordance with
Section 183  . 
   (c) After any hearing, the member shall report a proposed decision
and order to the board and shall supply a copy to the party served
with the complaint, the board's executive director, and any other
person requesting a copy. The member of the board acting as hearing
officer may sit as a member of the board in deciding the matter. The
board, after making an independent review of the record and taking
any additional evidence as may be necessary that could not reasonably
have been offered before the hearing officer, may adopt, with or
without revision, the proposed decision and order.  
   (c) The board, after any necessary hearing, may adopt an order
setting administrative civil liability, or determining that a
liability shall not be imposed. 
   (d) Orders setting administrative civil liability shall become
effective and final upon issuance thereof and payment shall be made.
   SEC. 6.    Section 1055.2 of the   Water
Code   is amended to read: 
   1055.2.   No   A  person or entity shall
 not  be subject to both civil liability imposed under
Section 1055 and civil liability imposed by the superior court under
 subdivision (d) of  Section 1052  , Section
1536, or  Article 4 (commencing with  Section
 1845   1845) of Chapter 12 of Part 2 of
Division 2  for the same act or failure to act.
   SEC. 7.    Section 1062 of the   Water Code
  is repealed.  
   1062.  (a) The Legislature finds and declares as follows:
   (1) The watershed of the San Francisco Bay/Sacramento-San Joaquin
Delta Estuary supplies a large percentage of water used in
California.
   (2) The State Water Resources Control Board and the California
regional water quality control boards are responsible for protecting
all beneficial uses of those waters. Beneficial uses include those
defined in subdivision (f) of Section 13050.
   (3) The board is engaged in a hearing process to consider
revisions to the water quality standards contained in the existing
water quality control plan for the Sacramento-San Joaquin Delta and
Suisun Marsh and to consider new standards for San Francisco Bay.
   (4) There is a broad diversity of viewpoints regarding appropriate
water quality standards and priorities with respect to the various
beneficial uses.
   (5) Any new or revised standards and plans that derive from the
hearing process will have a substantial impact on the people of
California, and there is significant public interest in these
deliberations.
   (b) It is the intent of the Legislature that the hearing process
shall provide for the involvement of all those who wish to
participate in these deliberations. It is further the intent of the
Legislature that members of the general public shall have full access
to the proceedings and to all official records of the hearings.
   (c) The board shall lodge one copy of the transcripts of the
hearings referred to in subdivision (a) for inspection and use by the
general public at the following locations: the headquarters of the
State Water Resources Control Board in Sacramento; the headquarters
of the regional water quality control boards in Los Angeles, Fresno,
and San Diego; and the headquarters of the Environmental Protection
Agency in San Francisco. The transcripts shall be updated on a timely
basis throughout the course of the board's bay-delta hearing
process. At the conclusion of the hearing process, one transcript
shall be maintained at the headquarters of the board in Sacramento.
   (d) The board shall provide for staff services at the headquarters
of the board in Sacramento and at the headquarters at each of the
regional water quality control boards listed in subdivision (c) to
assist the public in utilizing the transcripts and other documents
and to facilitate participation by interested parties in the hearing
process.
   (e) During the course of the board's bay-delta hearing process,
the board shall provide for public access to an electronic data
retrieval system capable of displaying the text of the hearing
transcript at the following locations: the headquarters of the board
in Sacramento; the headquarters of the regional water quality control
boards in Oakland, Los Angeles, Fresno, Redding, Riverside, and San
Diego; and the headquarters of the Environmental Protection Agency in
San Francisco. 
   SEC. 8.    Section 1228.5 of the   Water
Code   is amended to read: 
   1228.5.  (a) Registration of a small domestic or livestock
stockpond use pursuant to this article shall be renewed prior to the
expiration of each five-year period following completed registration.

   (b) Renewal of registration shall be made upon a form prescribed
by the board and shall contain  such   a 
report of water use made pursuant to the registration as may be
required by the board.
   (c) The conditions established by the board pursuant to Section
1228.6  which   that  are in effect at the
time of renewal of registration shall supersede the conditions
 which   that  were applicable to the
original completed registration.
   (d) Failure to renew registration in substantial compliance with
the reporting requirements prescribed by the board within the time
period specified in subdivision (a), or to pay the renewal fee
specified in  subdivision (b) of Section 1228.8 
 Section 1525,  shall result by operation of law in the
revocation of any right acquired pursuant to this article.
   SEC. 9.    Section 1228.7 of the   Water
Code   is amended to read: 
   1228.7.  (a)  Any  A  registrant may
change the point of diversion or place of use by delivering to the
board an amended registration form in accordance with Section 1228.3,
including payment of the registration fee specified in 
subdivision (a) of Section 1228.8   Section 1525  ,
except that the purpose of the use  may   shall
 not be changed and the change  may  
shall  not operate to the injury of any legal user of the water
involved.
   (b)  Any   A  completed amended
registration of water use continues in effect the priority of right
as of the date of the original completed registration.
   (c) All provisions of this article regarding appropriations made
pursuant thereto, including, but not limited to, provisions regarding
enforcement, are applicable to the appropriation as described in the
completed amended registration, except that the conditions
established by the board pursuant to Section 1228.6  which
  that  are in effect at the time of completion of
the amended registration shall supersede the conditions 
which   that  were applicable to the original
completed registration.
   SEC. 10.    Section 1241 of the   Water Code
  is amended to read: 
   1241.   When   If  the person entitled
to the use of water fails to use beneficially all or any part of the
water claimed by him  or her  , for which a right of use has
vested, for the purpose for which it was appropriated or
adjudicated, for a period of five years,  such  
that  unused water may revert to the public and shall, if
reverted, be regarded as unappropriated public water.  Such
  That  reversion shall occur upon a finding by the
board following notice to the permittee  , licensee, or person
holding a livestock stockpond certificate or small domestic or
livestock stockpond use registration under this part  and a
public hearing if requested by the permittee  , licensee, 
 certificate holder,   or registration holder  .
   SEC. 11.    Section 1241.5 of the   Water
Code   is repealed.  
   1241.5.  The laws of this State with respect to loss of water
rights by nonuse, abandonment, prescription, and lack of diligence
shall not apply to water rights appurtenant to or for use on any
trust land for the period of five years following the conveyance by
the United States of an unrestricted title to the land and the water
rights appurtenant to or for use on such land.
   As used in this section, "trust land" means any land in this State
(a) to which the United States holds title in trust for any tribe,
band, or other group of Indians, or for any particular Indian; or (b)
owned by a particular Indian or any tribe, band, or group of Indians
subject to a restriction against alienation imposed by the United
States; or (c) held by the United States for the use of Indians in
California, but not for any particular tribe, band, or group of
Indians, or any particular Indian, if any part of such land is
occupied by Indians or their families.
   The Legislature hereby finds and declares that because of
historical conditions, the Indians of California will not be in a
position fully to utilize and to protect water rights owned by them
when unrestricted title to trust land is conveyed to them by the
United States. A period is required during which the laws with
respect to loss of water rights by nonuse, abandonment, prescription,
and lack of diligence are suspended with regard to such land and
water rights so that they will not lose the benefit of the water
rights and the opportunity to make productive utilization of their
land. The Legislature further finds and declares that such a
suspension of the laws of this State with regard to such water rights
is in the public interest and will promote the public welfare since
it will promote the economic and social well-being of the Indians and
the communities in which they reside and will encourage the
self-sufficiency of the Indians.
   This section shall become operative upon the enactment of federal
legislation authorizing the establishment of a California Indian
Water Affairs Commission. 
   SEC. 12.    Section 1241.6 of the   Water
Code   is amended to read: 
   1241.6.   When   If  water appropriated
for irrigation purposes is not used by reason of compliance with crop
control or soil conservation contracts with the United States, and
in other cases of hardship as the board may by rule prescribe, the
 three-year   five-year  forfeiture period
applicable to water appropriated pursuant to the Water Commission Act
or this code, and the forfeiture period applicable to water
appropriated prior to December 19, 1914, shall be extended by an
additional period of not more than 10 years or the duration of any
crop control or soil conservation contracts with the United States if
less than 10 years.
   SEC. 13.    Section 1410 of the   Water Code
  is amended to read: 
   1410.  (a) There shall be cause for revocation of a permit if the
work is not commenced, prosecuted with due diligence, and completed
or the water applied to beneficial use as contemplated in the permit
and in accordance with this division and the rules and regulations of
the board.
   (b) A permit may be revoked  upon request of the permittee or
 under either of the following procedures:
   (1) If, after a hearing on a petition for extension of time to
complete a project and apply water to beneficial use, the board finds
that cause exists to revoke the permit, the board may revoke the
permit.
   (2) If, after an investigation other than a hearing on a petition
for extension of time, it appears that cause exists to revoke a
permit, the board shall give notice of proposed revocation in
writing, mailed in a sealed, prepaid postage and certified letter to
the permittee at his or her last known address. If the permittee
fails to request a hearing with the time provided under Section
1410.1, the board shall revoke the permit and declare the water
subject to appropriation. After a hearing, when a hearing is
requested by the permittee pursuant to Section 1410.1, the board may,
upon a finding that cause exists, revoke the permit and declare the
water subject to appropriation.
   SEC. 14.    Section 1675 of the   Water Code
  is amended to read: 
   1675.   (a)    If, at any time after a license
is issued, the board finds that the licensee has not put the water
granted under the license to a useful or beneficial purpose in
conformity with this division or that the licensee has ceased to put
the water to  such   that  useful or
beneficial purpose, or that the licensee has failed to observe any of
the terms and conditions in the license, the  board, after
due notice to the licensee and after a hearing when a hearing is
requested by the licensee pursuant to Section 1675.1,  
board  may revoke the license and declare the water to be
subject to appropriation in accordance with this part.  As
used in this section "licensee" includes heirs, successors, or
assigns of the licensee.  
   (b) The board may revoke the license upon request of the licensee
or after due notice to the licensee and after a hearing, when a
hearing is requested by the licensee pursuant to Section 1675.1.
 
   (c) As used in this section "licensee" includes the heirs,
successors, or assigns of the licensee. 
   SEC. 15.    Section 1701.3 of the   Water
Code   is amended to read: 
   1701.3.  (a) After a petition is filed, the board may request
additional information reasonably necessary to clarify, amplify,
correct, or otherwise supplement the information required to be
submitted under this  article   chapter  .
The board shall provide a reasonable period for submitting the
information.
   (b) The additional information may include, but need not be
limited to, any of the following:
   (1) Information needed to demonstrate that the change will not
injure any other legal user of water.
   (2) Information needed to demonstrate that the change will comply
with any applicable requirements of the Fish and Game Code or the
federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.).

   (3) Information needed to comply with Division 13 (commencing with
Section 21000) of the Public Resources Code.
   SEC. 16.    Section 1703.6 of the   Water
Code   is amended to read: 
   1703.6.  (a) The board may cancel a protest or petition for
failure to provide information requested by the board under this
 article   chapter  within the period
provided.
   (b) Except as provided in subdivisions (c) and (d), the board
 may   shall  not cancel a protest for
failure to submit information not in the possession or under the
control of the protestant if the protest meets the requirements of
Section 1703.2 and the petitioner is or could be required to submit
the information under Section 1701.1, 1701.2,  and 
 or  1701.3.
   (c) If a protest is based on injury to a legal user of water, the
board may cancel the protest if the protestant fails to submit any of
the following information requested by the board:
   (1) Information that the protestant is required to submit to the
board to comply with Part 5.1 (commencing with Section 5100) during
any period after the protest is filed.
   (2) Information that is reasonably necessary to determine if the
protestant  has a valid water right   is a legal
user of water  .
   (3) Information concerning the protestant's historical, current,
or proposed future diversion and use of water that is reasonably
necessary to determine if the proposed change will result in injury
to the protestant's exercise of its water right  or other legal
use of water  .
   (d) If the protest is based on an allegation other than injury to
a legal user of water, the board may cancel the protest for failure
to submit information requested by the board if the board determines
both of the following:
   (1) The public review period has expired for any draft
environmental document or negative declaration required to be
circulated for public review and comment pursuant to Division 13
(commencing with Section 21000) of the Public Resources Code.
   (2) In the absence of the requested information, there is no
substantial evidence in light of the whole record to support the
allegation.
   (e) If a protest is subject to both subdivisions (c) and (d), the
part of the protest subject to subdivision (c) may be canceled
pursuant to subdivision (c) and the part of the protest subject to
subdivision (d) may be canceled pursuant to subdivision (d).
   SEC. 17.    Section 13176 of the   Water
Code   is amended to read: 
   13176.  (a) The analysis of any material required by this division
shall be performed by a laboratory that has accreditation or
certification pursuant to Article 3 (commencing with Section 100825)
of Chapter 4 of Part 1 of Division 101 of the Health and Safety Code.

   (b)  No   A  person or public entity of
the state shall  not  contract with a laboratory for
environmental analyses for which the State Department of 
Health Services   Public Health  requires
accreditation or certification pursuant to this chapter, unless the
laboratory holds a valid certification or accreditation.
   SEC. 18.    Section 13193 of the   Water
Code   is amended to read: 
   13193.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Collection system owner or operator" means the public or
private entity having legal authority over the operation and
maintenance of, or capital improvements to, the sewer collection
system.
   (2) "GIS" means Geographic Information System.
   (b) On or before January 1 of a year in which the Legislature has
appropriated sufficient funds for this purpose, the state board, in
consultation with representatives of cities, counties, cities and
counties, special districts, public interest groups, the State
Department of  Health Services   Public Health
 , and the regional boards shall develop a uniform overflow
event report form to be used for reporting of sanitary sewer system
overflows as required in subdivision (c). This event report form
shall include, but not be limited to, all of the following:
   (1) The cause of the overflow. The cause shall be specifically
identified, unless there is an ongoing investigation, in which case
it shall be identified immediately after completion of the
investigation. The cause shall be identified, at a minimum, as
blockage, infrastructure failure, pump station failure, significant
wet weather event, natural disaster, or other cause, which shall be
specifically identified. If the cause is identified as a blockage,
the type of blockage shall be identified, at a minimum, as roots,
grease, debris, vandalism, or multiple causes of which each should be
identified. If the cause is identified as infrastructure, it shall
be determined, at a minimum, whether the infrastructure failure was
due to leaks, damage to, or breakage of, collection system piping or
insufficient capacity. If the cause is identified as a significant
wet weather event or natural disaster, the report shall describe both
the event and how it resulted in the overflow. If the precise cause
cannot be identified after investigation, the report shall include a
narrative explanation describing the investigation conducted and
providing the information known about the possible causes of the
overflow.
   (2) An estimate of the volume of the overflow event.
   (3) Location of the overflow event. Sufficient information shall
be provided to determine location for purposes of GIS mapping, such
as specific street address or the latitude and longitude of the
event.
   (4) Date, time, and duration of the overflow event.
   (5) Whether or not the overflow reached or may have reached waters
of the state.
   (6) Whether or not a beach closure occurred or may have occurred
as a result of the overflow.
   (7) The response and corrective action taken.
   (8) Whether or not there is an ongoing investigation, the reasons
for it and expected date of completion.
   (9) The name, address, and telephone number of the reporting
collection system owner or operator and a specific contact name.

            (c) Commencing on July 1 of a year in which the
Legislature has appropriated sufficient funds for this purpose, in
the event of a spill or overflow from a sanitary sewer system that is
subject to the notification requirements set forth in Section 13271,
the applicable collection system owner or operator, in addition to
immediate reporting duties pursuant to Section 13271, shall submit to
the appropriate regional board, within 30 days of the date of
becoming aware of the overflow event, a report using the form
described in subdivision (b). The report shall be filed
electronically, if possible, or by fax or mail if electronic
submission is not possible.
   (d) (1) Commencing on July 1 of a year in which the Legislature
has appropriated sufficient funds for this purpose, in the event of a
spill or overflow from a sanitary sewer system that is not subject
to the reporting requirements set forth in Section 13271 that is
either found by the State Department of  Health Services
  Public Health  or any local health officer to
result in contamination pursuant to Section 5412 of the Health and
Safety Code, or is found by the State Department of  Health
Services   Public Health  to result in pollution or
nuisance pursuant to Section 5413 of the Health and Safety Code, the
agency making the determination shall submit to the appropriate
regional board, within 30 days of making the determination, a report
that shall include, at a minimum, the following information:
   (A) Date, time, and approximate duration of the overflow event.
   (B) An estimate of the volume of the overflow event.
   (C) Location of the overflow event.
   (D) A description of the response or corrective action taken by
the agency making the determination.
   (E) The name, address, and telephone number of the reporting
collection system owner or operator, and a specific contact name.
   (2) The report shall be filed electronically, if possible, or by
fax or mail if electronic submission is not possible.
   (e)  Before January 1 of a year in which the Legislature has
appropriated sufficient funds for this purpose, the state board, in
consultation with representatives of cities, counties, cities and
counties, and special districts, public interest groups, the State
Department of  Health Services   Public Health
 , and regional boards, shall develop and maintain a sanitary
sewer system overflow database that, at a minimum, contains the
parameters described in subdivisions (b) and (d).
   (f) Commencing on July 1 of a year in which the Legislature has
appropriated sufficient funds for this purpose, each regional board
shall coordinate with collection system owners or operators, the
State Department of  Health Services   Public
Health  , and local health officers to compile the reports
submitted pursuant to subdivisions (c) and (d). Each regional board
shall report that information to the state board on a quarterly
basis, to be included in the sanitary sewer system overflow database.

   (g)  The state board shall make available to the public, by
Internet and other cost-effective means, as determined by the state
board, information that is generated pursuant to this section. In a
year in which the Legislature has appropriated sufficient funds for
the purposes described in this subdivision, the state board shall
prepare a summary report of the information collected in the sanitary
sewer system overflow database, and make it available to the general
public through the Internet and other cost-effective means, as
determined by the state board. To the extent resources and the data
allow, this report shall include GIS maps compiling coastal overflow
events.
   SEC. 19.    Section 13204 of the   Water
Code   is amended to read: 
   13204.  Each regional board shall hold at least six regular
meetings each calendar year and  such   the
 additional special meetings or hearings as shall be called by
the  chairman   chairperson  or any two
members of the regional board.
   SEC. 20.    Section 13220 of the   Water
Code  is amended to read: 
   13220.  Each regional board shall do all of the following:
   (a) Establish an office.
   (b) Select one of its members as  chairman  
chairperson  at the first regular meeting held each year.
   (c) Appoint as its confidential employee,  who may be 
exempt from civil service under Section 4 of Article VII of the
California Constitution, and fix the salary of, an executive officer
who shall meet technical qualifications as defined by the 
State Water Resources Control Board   state board 
. The executive officer shall serve at the pleasure of the regional
board.
   (d) Employ any other assistants  which   that
 may be determined necessary to assist the executive officer.
   SEC. 21.    Section 13248 is added to the  
Water Code   , to read:  
   13248.  (a) At any time, the state board may, on its own motion,
review the regional board's failure to act under this article.
   (b) The state board may find that the failure of the regional
board to act was appropriate and proper. Upon finding that the
failure of the regional board to act was inappropriate or improper,
the state board may direct that appropriate action be taken by the
regional board, refer the matter to another state agency having
jurisdiction, take appropriate action itself, or take any combination
of those actions. In taking any action, the state board is vested
with all the powers of the regional boards under this division. 

   SEC. 22.    Section 13261 of the   Water
Code   is amended to read: 
   13261.  (a)  Any   A  person 
failing   who fails  to furnish a report or pay a
fee under Section 13260 when so requested by a regional board is
guilty of a misdemeanor and may be liable civilly in accordance with
subdivision (b).
   (b) (1) Civil liability may be administratively imposed by a
regional board or the state board in accordance with Article 2.5
(commencing with Section 13323) of Chapter 5 for a violation of
subdivision (a) in an amount  that may  not 
exceed   exceeding  one thousand dollars ($1,000)
for each day in which the violation occurs.  For purposes of
this section only, the state board shall have the same authority and
shall follow the same procedures as set forth in Article 2.5
(commencing with Section 13323) of Chapter 5, except that the
executive director shall issue the complaint with review by the state
board. Civil liability may   Civil liability shall
 not be imposed by the regional board pursuant to this section
if the state board has imposed liability against the same person for
the same violation.
   (2) Civil liability may be imposed by the superior court in
accordance with Article 5 (commencing with Section 13350) and Article
6 (commencing with Section 13360) of Chapter 5 for a violation of
subdivision (a) in an amount  that may  not 
exceed   exceeding  five thousand dollars ($5,000)
for each day the violation occurs.
   (c)  Any   A  person 
discharging   who discharges  or  proposing
  proposes  to discharge hazardous waste, as
defined in Section 25117 of the Health and Safety Code, who knowingly
furnishes a false report under Section 13260, or who either
willfully fails to furnish a report or willfully withholds material
information under Section 13260 despite actual knowledge of that
requirement, may be liable in accordance with subdivision (d) and is
guilty of a misdemeanor.
   This subdivision does not apply to any waste discharge that is
subject to Chapter 5.5 (commencing with Section 13370).
   (d) (1) Civil liability may be administratively imposed by a
regional board in accordance with Article 2.5 (commencing with
Section 13323) of Chapter 5 for a violation of subdivision (c) in an
amount that may  not  exceed  
exceeding  five thousand dollars ($5,000) for each day the
violation occurs.
   (2) Civil liability may be imposed by the superior court in
accordance with Article 5 (commencing with Section 13350) and Article
6 (commencing with Section 13360) of Chapter 5 for a violation of
subdivision (c) in an amount  that may  not 
exceed   exceeding  twenty-five thousand dollars
($25,000).
   SEC. 23.    Section 13274 of the   Water
Code   , as amended by Section 162 of Chapter 485 of the
Statutes of 1998, is amended to read: 
   13274.  (a) (1) The state board or a regional board, upon receipt
of applications for waste discharge requirements for discharges of
dewatered, treated, or chemically fixed sewage sludge and other
biological solids, shall prescribe general waste discharge
requirements for that sludge and those other solids. General waste
discharge requirements shall replace individual waste discharge
requirements for sewage sludge and other biological solids, and their
prescription shall be considered to be a ministerial action.
   (2)  The general waste discharge requirements shall set minimum
standards for agronomic applications of sewage sludge and other
biological solids and the use of that sludge and those other solids
as a soil amendment or fertilizer in agriculture, forestry, and
surface mining reclamation, and may permit the transportation of that
sludge and those other solids and the use of that sludge and those
other solids at more than one site. The requirements shall include
provisions to mitigate significant environmental impacts, potential
soil erosion, odors, the degradation of surface water quality or fish
or wildlife habitat, the accidental release of hazardous substances,
and any potential hazard to the public health or safety.
   (b) The state board or a regional board, in prescribing general
waste discharge requirements pursuant to this section, shall comply
with Division 13 (commencing with Section 21000) of the Public
Resources Code and guidelines adopted pursuant to that division, and
shall consult with the State Air Resources Board, the Department of
Food and Agriculture, and the  California Integrated Waste
Management Board   Department of Resources Recycling and
Recovery  .
   (c) The state board or a regional board may charge a reasonable
fee to cover the costs incurred by the board in the administration of
the application process relating to the general waste discharge
requirements prescribed pursuant to this section.
   (d) Notwithstanding any other  provision of  law,
except as specified in subdivisions (f) to (i), inclusive, general
waste discharge requirements prescribed by a regional board pursuant
to this section supersede regulations adopted by any other state
agency to regulate sewage sludge and other biological solids applied
directly to agricultural lands at agronomic rates.
   (e) The state board or a regional board shall review general waste
discharge requirements for possible amendment upon the request of
any state agency, including, but not limited to, the Department of
Food and Agriculture and the State Department of  Health
Services   Public Health  , if the board determines
that the request is based on new information.
   (f)  Nothing in this   This  section is
 not  intended to affect the jurisdiction of the 
California Integrated Waste Management Board  
Department of Resources Recycling and Recovery  to regulate the
handling of sewage sludge or other biological solids for composting,
deposit in a landfill, or other use.
   (g)  Nothing in this   Thi   s 
section is  not  intended to affect the jurisdiction of the
State Air Resources Board or an air pollution control district or
air quality management district to regulate the handling of sewage
sludge or other biological solids for incineration.
   (h)  Nothing in this   This   
section is  not  intended to affect the jurisdiction of the
Department of Food and Agriculture in enforcing Sections 14591 and
14631 of the Food and Agricultural Code and any regulations adopted
pursuant to those sections, regarding the handling of sewage sludge
and other biological solids sold or used as fertilizer or as a soil
amendment.
   (i)  Nothing in this   This  section
 restricts   does not restrict  the
authority of a local government agency to regulate the application of
sewage sludge and other biological solids to land within the
jurisdiction of that agency, including, but not limited to, the
planning authority of the Delta Protection Commission, the resource
management plan of which is required to be implemented by local
government general plans.
   SEC. 24.    Section 13274 of the   Water
Code   , as added by Section 13 of Chapter 814 of the
Statutes of 1997,   is amended and renumbered to read: 

    13274.   13275.   (a) Notwithstanding
any other  provision of  law,  any 
 a  public water system regulated by the State Department
of  Public  Health  Services  shall have
the same legal rights and remedies against a responsible party, when
the water supply used by that public water system is contaminated, as
those of a private land owner whose groundwater has been
contaminated.
   (b) For purposes of this section, "responsible party" has the same
meaning as defined in Section 25323.5 of the Health and Safety Code.

   SEC. 25.    Section 13285 of the   Water
Code   is amended to read: 
   13285.  (a)  Any   A  discharge from a
storage tank, pipeline, or other container of methyl tertiary-butyl
ether (MTBE), or of any pollutant that contains MTBE, that poses a
threat to drinking water, or to groundwater or surface water that may
reasonably be used for drinking water, or to coastal waters shall be
cleaned up to a level consistent with subdivisions (a) and (b) of
Section 25296.10 of the Health and Safety Code.
   (b) (1)  No   A  public water system, or
its customers, shall  not  be responsible for remediation
or treatment costs associated with MTBE, or a product that contains
MTBE. However, the public water system may, as necessary, incur MTBE
remediation and treatment costs and include those costs in its
customer rates and charges that are necessary to comply with drinking
water standards or directives of the State Department of 
Health Services   Public Health  or other lawful
authority. Any public water system that incurs MTBE remediation or
treatment costs may seek recovery of those costs from parties
responsible for the MTBE contamination, or from other available
alternative sources of funds.
   (2) If the public water system has included the costs of MTBE
treatment and remediation in its customer rates and charges, and
subsequently recovers all, or a portion of, its MTBE treatment and
remediation costs from responsible parties or other available
alternative sources of funds, it shall make an adjustment to its
schedule of rates and charges to reflect the amount of funding
received from responsible parties or other available alternative
sources of funds for MTBE treatment or remediation.
   (3) Paragraph (1)  shall   does  not
prevent the imposition of liability on any person for the discharge
of MTBE if that liability is due to the conduct or status of that
person independently of whether the person happens to be a customer
of the public water system.
  SEC. 26.    Section 13291 of the   Water Code
  is amended to read: 
   13291.  (a) On or before January 1, 2004, the state board, in
consultation with the State Department of  Health Services
  Public Health  , the California Coastal
Commission, the California Conference of Directors of Environmental
Health, counties, cities, and other interested parties, shall adopt
regulations or standards for the permitting and operation of all of
the following onsite sewage treatment systems in the state and shall
apply those regulations or standards commencing six months after
their adoptions:
   (1) Any system that is constructed or replaced.
   (2) Any system that is subject to a major repair.
   (3) Any system that pools or discharges to the surface.
   (4) Any system that, in the judgment of a regional board or
authorized local agency, discharges waste that has the reasonable
potential to cause a violation of water quality objectives, or to
impair present or future beneficial uses of water, to cause
pollution, nuisance, or contamination of the waters of the state.
   (b) Regulations or standards adopted pursuant to subdivision (a),
shall include, but shall not be limited to, all of the following:
   (1) Minimum operating requirements that may include siting,
construction, and performance requirements.
   (2) Requirements for onsite sewage treatment systems adjacent to
impaired waters identified pursuant to subdivision (d) of Section 303
of the Clean Water Act (33 U.S.C. Sec. 1313(d)).
   (3) Requirements authorizing a qualified local agency to implement
those requirements adopted under this chapter within its
jurisdiction if that local agency requests that authorization.
   (4) Requirements for corrective action when onsite sewage
treatment systems fail to meet the requirements or standards.
   (5) Minimum requirements for monitoring used to determine system
or systems performance, if applicable.
   (6) Exemption criteria to be established by regional boards.
   (7) Requirements for determining a system that is subject to a
major repair, as provided in paragraph (2) of subdivision (a).
   (c) This chapter does not diminish or otherwise affect the
authority of a local agency to carry out laws, other than this
chapter, that relate to onsite sewage treatment systems.
   (d) This chapter does not preempt any regional board or local
agency from adopting or retaining standards for onsite sewage
treatment systems that are more protective of the public health or
the environment than this chapter.
   (e) Each regional board shall incorporate the regulations or
standards adopted pursuant to subdivisions (a) and (b) into the
appropriate regional water quality control plans.
   SEC. 27.    The heading of Article 1 (commencing with
Section 13300) of Chapter 5 of Division 7 of the   Water
Code   is amended to read: 

      Article 1.  Administrative Enforcement and Remedies  by
Regional Boards 


   SEC. 28.    Section 13304.1 of the   Water
Code   is amended to read: 
   13304.1.  (a) A groundwater cleanup system that commences
operation on or after January 1, 2002, and that is required to obtain
a discharge permit from the regional board pursuant to the regional
board's jurisdiction, and that discharges treated groundwater to
surface water or groundwater, shall treat the groundwater to
standards approved by the regional board, consistent with this
division and taking into account the beneficial uses of the receiving
water and the location of the discharge and the method by which the
discharge takes place.
   (b) In making its determination of the applicable water quality
standards to be achieved by the operator of a groundwater cleanup
system that commences operation on or after January 1, 2002, that
draws groundwater from an aquifer that is currently being used, or
has been used at any time since 1979 as a source of drinking water
supply by the owner or operator of a public water system, and that
discharges treated groundwater to surface water or groundwater from
which a public water system draws drinking water, the regional board
shall consult with the affected groundwater management entity, if
any, affected public water systems, and the State Department of
 Health Services   Public Health  to ensure
that the discharge, spreading, or injection of the treated
groundwater will not adversely affect the beneficial uses of any
groundwater basin or surface water body that is or may be used by a
public water system for the provision of drinking water.
   SEC. 29.    The heading of Article 2 (commencing with
Section 13320) of Chapter 5 of Division 7 of the   Water
Code   is amended to read: 

      Article 2.  Administrative  Enforcement and Remedies
  Review  by the State Board


   SEC. 30.    Section 13320 of the   Water
Code   is amended to read: 
   13320.  (a) Within 30 days of any action or failure to act by a
regional board under subdivision (c) of Section 13225, Article 4
(commencing with Section 13260) of Chapter 4, Chapter 5 (commencing
with Section 13300), Chapter 5.5 (commencing with Section 13370),
Chapter 5.9 (commencing with Section 13399.25), or Chapter 7
(commencing with Section 13500),  any   an 
aggrieved person may petition the state board to review that action
or failure to act. In case of a failure to act, the 30-day period
shall commence upon the refusal of the regional board to act, or 60
days after request has been made to the regional board to act. The
state board may, on its own motion, at any time, review the regional
board's action or failure to  act and also any failure to act
under Article 3 (commencing with Section 13240) of Chapter 4.
  act. 
   (b) The evidence before the state board shall consist of the
record before the regional board, and any other relevant evidence
which, in the judgment of the state board, should be considered to
effectuate and implement the policies of this division.
   (c) The state board may find that the action of the regional
board, or the failure of the regional board to act, was appropriate
and proper. Upon finding that the action of the regional board, or
the failure of the regional board to act, was inappropriate or
improper, the state board may direct that the appropriate action be
taken by the regional board, refer the matter to  any other
  another  state agency having jurisdiction, take
the appropriate action itself, or take any combination of those
actions. In taking any  such  action, the state
board is vested with all the powers of the regional boards under this
division.
   (d) If a waste discharge in one region affects the waters in
another region and there is any disagreement between the regional
boards involved as to the requirements  which  
that  should be established, either regional board may submit
the disagreement to the state board  ,  which shall
determine the applicable requirements.
   (e) If a petition for state board review of a regional board
action on waste discharge requirements includes a request for a stay
of the waste discharge requirements, the state board shall act on the
requested stay portion of the petition within 60 days of accepting
the petition. The board may order any stay to be in effect from the
effective date of the waste discharge requirements.
   SEC. 31.    Section 13330 of the   Water
Code   is amended to read: 
   13330.  (a) Not later than 30 days from the date of service of a
copy of a decision or order issued by the state board under this
division, other than a decision or order issued pursuant to Article 7
(commencing with Section 13550) of Chapter 7, any aggrieved party
may file with the superior court a petition for writ of mandate for
review thereof.  An aggrieved party must file a petition for
reconsideration with the state board to exhaust that party's
administrative remedies only if the initial decision or order is
issued under authority delegated to an officer or employee of the
state board and the state board by regulation has authorized a
petition for reconsideration. 
   (b)  Any   A    party aggrieved
by a final decision or order of a regional board  for which
the state board denies   subject to  review 
under Section 13320  may obtain review of the decision or order
of the regional board in the superior court by filing in the court a
petition for writ of mandate not later than 30 days from the date on
which the state board denies review. 
   (c) The time for filing an action or proceeding subject to Section
21167 of the Public Resources Code for a person who seeks review of
the regional board's decision or order under Section 13320, or who
seeks reconsideration under a state board regulation authorizing a
petition for reconsideration, shall commence upon the state board's
completion of that review or reconsideration.  
   (c) 
    (d)  If no aggrieved party petitions for writ of mandate
within the time provided by this section, a decision or order of the
state board or a regional board shall not be subject to review by
any court. 
   (d) 
    (e)  Except as otherwise provided herein, Section 1094.5
of the Code of Civil Procedure shall govern proceedings for which
petitions are filed pursuant to this section. For the purposes of
subdivision (c) of Section 1094.5 of the Code of Civil Procedure, the
court shall exercise its independent judgment on the evidence in any
case involving the judicial review of a decision or order of the
state board issued under Section 13320, or a decision or order of a
regional board for which the state board denies review under Section
13320, other than a decision or order issued under Section 13323.

   (e) Any 
    (f)     A  party aggrieved by a
decision or order issued by the state board under Article 7
(commencing with Section 13550) of Chapter 7 may petition for
reconsideration or judicial review in accordance with Chapter 4
(commencing with Section 1120) of Part 1 of Division 2. 
   (g) For purposes of this section, a decision or order includes a
final action in an adjudicative proceeding and an action subject to
Section 11352 of the Government Code, but does not include an action
subject to Section 11353 of the Government Code or the adoption,
amendment, or repeal of a regulation under Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. 
   SE   C. 32.    Section 13376 of the 
 Water Code   is amended to read: 
   13376.   Any   A  person 
discharging   who discharges  pollutants or
 proposing   proposes  to discharge
pollutants to the navigable waters of the United States within the
jurisdiction of this state or  any   a 
person  discharging   who discharges 
dredged or fill material or  proposing  
proposes  to discharge dredged or fill material into the
navigable waters of the United States within the jurisdiction of this
state shall file a report of the discharge in compliance with the
procedures set forth in Section  13260, except that no report
need   13260. Unless required by the state board or a
regional board, a report need not  be filed under this section
for discharges that are not subject to the permit application
requirements of                                                the
Federal Water Pollution Control Act, as amended.  Any
  A  person  proposing   who
proposes  to discharge pollutants or dredged or fill material or
 proposing  to operate a publicly owned treatment
works or other treatment works treating domestic sewage shall file a
report at least 180 days in advance of the date on which it is
desired to commence the discharge of pollutants or dredged or fill
material or the operation of the treatment works.  Any
  A  person who owns or operates a publicly owned
treatment works or other treatment works treating domestic sewage,
which treatment works commenced operation before January 1, 1988, and
does not discharge to navigable waters of the United States, shall
file a report within 45 days of a written request by a regional board
or the state board, or within 45 days after the state has an
approved permit program for the use and disposal of sewage sludge,
whichever occurs earlier. The discharge of pollutants or dredged or
fill material or the operation of a publicly owned treatment works or
other treatment works treating domestic sewage by any 
person   person,  except as authorized by waste
discharge requirements or dredged or fill material  permits
is prohibited, except that no waste discharge requirements or permit
is required under this chapter if no   permits, is
prohibited. This prohibition does not apply to discharges or
operations if a  state or federal permit is  not 
required under the Federal Water Pollution Control Act, as amended.
   SEC. 33.    Section 13392 of the   Water
Code   is amended to read: 
   13392.  The state board and the regional boards, in consultation
with the State Department of  Health Services  
Public Health  and the Department of Fish and Game, shall
develop and maintain a comprehensive program to (1) identify and
characterize toxic hot spots, as defined in Section 13391.5, (2) plan
for the cleanup or other appropriate remedial or mitigating actions
at the sites, and (3) amend water quality control plans and policies
to incorporate strategies to prevent the creation of new toxic hot
spots and the further pollution of existing hot spots. As part of
this program, the state board and regional boards shall, to the
extent feasible, identify specific discharges or waste management
practices  which   that  contribute to the
creation of toxic hot spots, and shall develop appropriate prevention
strategies, including, but not limited to, adoption of more
stringent waste discharge requirements, onshore remedial actions,
adoption of regulations to control source pollutants, and development
of new programs to reduce urban and agricultural runoff.
   SEC. 34.    Section 13392.5 of the   Water
Code   is amended to read: 
   13392.5.  (a) Each regional board that has regulatory authority
for one or more enclosed bays or estuaries shall, on or before
January 30, 1994, develop for each enclosed bay or estuary, a
consolidated data base  which   that 
identifies and describes all known and potential toxic hot spots.
Each regional board shall, in consultation with the state board, also
develop an ongoing monitoring and surveillance program that
includes, but is not limited to, the following components:
   (1) Establishment of a monitoring and surveillance task force that
includes representation from agencies, including, but not limited
to, the State Department of  Health Services  
Public Health  and the Department of Fish and Game, that
routinely monitor water quality, sediment, and aquatic life.
   (2) Suggested guidelines to promote standardized analytical
methodologies and consistency in data reporting.
   (3) Identification of additional monitoring and analyses that are
needed to develop a complete toxic hot spot assessment for each
enclosed bay and estuary.
   (b) Each regional board shall make available to state and local
agencies and the public all information contained in the consolidated
data base, as well as the results of new monitoring and surveillance
data.
   SEC. 35.    Section 13395.5 of the   Water
Code   is amended to read: 
   13395.5.  The state board may enter into contracts and other
agreements for the purpose of evaluating or demonstrating methods for
the removal, treatment, or stabilization of contaminated bottom
sediment. For the purpose of preparing health risk assessments
pursuant to Section 13393, the state board shall enter into contracts
or agreements with the State Department of  Health Services
  Public Health  , or with other state or local
agencies, subject to the approval of the State Department of 
Health Services   Public Health  . The costs
incurred for work conducted by other state agencies, including, but
not limited to, the State Department of  Health Services
  Public Health  and the Department of Fish and
Game, pursuant to this chapter shall be reimbursed according to the
terms of an interagency agreement between the state board and the
agency.
   SEC. 36.    Section 13396.7 of the   Water
Code   is amended to read: 
   13396.7.  (a) The state board, in consultation with the State
Department of  Health Services   Public Health
 , shall contract with an independent contractor to conduct a
study to determine the adverse health effects of urban runoff on
swimmers at urban beaches. The contract shall include a provision
that requires the study to be conducted as prescribed in the study
proposal approved by the Santa Monica Bay Restoration Project. The
study shall be paid for by using available resources or state funds
appropriated in the annual Budget Act.
   (b) It is the intent of the Legislature that the state board and
the State Department of  Health Services  
Public Health  use the results of the study undertaken pursuant
to subdivision (a) to establish recreational water quality standards.

   SEC. 37.    Section 13426 of the   Water
Code   is amended to read: 
   13426.  The state board, subject to approval by the Director of
Finance, may agree to provide a guarantee pursuant to this article
for all or a specified part of the proposed local agency bond issue
upon making, after consultation with the State Department of 
Health Services   Public Health  , all of the
following determinations:
   (a) The facilities proposed by an applicant are necessary to the
health or welfare of the inhabitants of the state and are consistent
with water quality control plans adopted by regional boards.
   (b) The proposed facilities meet the needs of the applicant.
   (c) The proposed bond issue and plan repayment are sound and
feasible.
   (d) In the case of facilities proposed under paragraph (2) of
subdivision (c) of Section 13400, the facilities will produce
recycled water and the applicant has adopted a feasible program for
the use of the facilities. The state board may adopt criteria for
ranking and setting priorities among applicants for those guarantees.

   SEC. 38.    Section 13442 of the   Water
Code   is amended to read: 
   13442.  Upon application by a public agency with authority to
clean up a waste or abate the effects thereof, the state board may
order moneys to be paid from the account to the agency to assist it
in cleaning up the waste or abating its effects on waters of the
state. The agency shall not become liable to the state board for
repayment of  such   those  moneys, but
this shall not be  any   a  defense to an
action brought pursuant to subdivision  (b)  
(c)  of Section 13304 for the recovery of moneys paid 
hereunder   under this section  .
   SEC. 39.    Section 13521 of the   Water
Code   is amended to read: 
   13521.  The State Department of  Health Services 
 Public Health  shall establish uniform statewide recycling
criteria for each varying type of use of recycled water where the
use involves the protection of public health.
   SEC. 40.    Section 13522 of the   Water
Code   is amended to read: 
   13522.  (a)  Whenever   If  the State
Department of  Health Services   Public Health
 or  any   a  local health officer
finds that a contamination exists as a result of the use of recycled
water, the department or local health officer shall order the
contamination abated in accordance with the procedure provided for in
Chapter 6 (commencing with Section 5400) of Part 3 of Division 5 of
the Health and Safety Code.
   (b) The use of recycled water in accordance with the uniform
statewide recycling criteria established pursuant to Section 13521,
for the purpose of this section, does not cause, constitute, or
contribute to, any form of contamination, unless the department or
the regional board determines that contamination exists.
   SEC. 41.    Section 13523 of the   Water
Code   is amended to read: 
   13523.  (a) Each regional board, after consulting with and
receiving the recommendations of the State Department of 
Health Services   Public Health  and any party who
has requested in writing to be consulted, and after any necessary
hearing, shall, if in the judgment of the board, it is necessary to
protect the public health, safety, or welfare, prescribe water
reclamation requirements for water  which   that
 is used or proposed to be used as  reclaimed 
 recycled  water.
   (b) The requirements may be placed upon the person 
reclaiming   recycling  water, the user, or both.
The requirements shall be established in conformance with the uniform
statewide  reclamation   recycling 
criteria established pursuant to Section 13521. The regional board
may require the submission of a preconstruction report for the
purpose of determining compliance with the uniform statewide 
reclamation   recycling  criteria. The
requirements for a use of  reclaimed   recycled
 water not addressed by the uniform statewide 
reclamation   recycling  criteria shall be
considered on a case-by-case basis.
   SEC. 42.    Section 13523.1 of the   Water
Code   is amended to read: 
   13523.1.  (a) Each regional board, after consulting with, and
receiving the recommendations of, the State Department of 
Health Services   Public Health  and any party who
has requested in writing to be consulted, with the consent of the
proposed permittee, and after any necessary hearing, may, in lieu of
issuing waste discharge requirements pursuant to Section 13263 or
water  reclamation   recycling 
requirements pursuant to Section 13523 for a user of 
reclaimed   recycled  water, issue a master
 reclamation   recycling permit to a
supplier or distributor, or both, of  reclaimed 
 recycled  water.
   (b) A master  reclamation   recycling 
permit shall include, at least, all of the following:
   (1) Waste discharge requirements, adopted pursuant to Article 4
(commencing with Section 13260) of Chapter 4.
   (2) A requirement that the permittee comply with the uniform
statewide  reclamation   recycling 
criteria established pursuant to Section 13521. Permit conditions for
a use of  reclaimed   recycled  water not
addressed by the uniform statewide water  reclamation
  recycling  criteria shall be considered on a
case-by-case basis.
   (3) A requirement that the permittee establish and enforce rules
or regulations for  reclaimed   recycled 
water users, governing the design and construction of 
reclaimed   recycled  water use facilities and the
use of  reclaimed  recycled  water, in
accordance with the uniform statewide  reclamation 
 recycling  criteria established pursuant to Section 13521.
   (4) A requirement that the permittee submit a quarterly report
summarizing  reclaimed   recycled  water
use, including the total amount of  reclaimed  
recycled  water supplied, the total number of  reclaimed
  recycled  water use sites, and the locations of
those sites, including the names of the hydrologic areas underlying
the  reclaimed   recycled  water use sites.

   (5) A requirement that the permittee conduct periodic inspections
of the facilities of the  reclaimed   recycled
 water users to monitor compliance by the users with the uniform
statewide  reclamation   recycling 
criteria established pursuant to Section 13521 and the requirements
of the master  reclamation   recycling 
permit.
   (6) Any other requirements determined to be appropriate by the
regional board.
   SEC. 43.    Section 13528 of the   Water
Code   is amended to read: 
   13528.  No provision of this   This 
chapter shall  not  be construed as affecting the 
existing  powers of the State Department of  Health
Services   Public Health  .
   SEC. 44.    Section 13540 of the   Water
Code   is amended to read: 
   13540.  (a)  No   A  person shall 
not  construct, maintain  ,  or use any waste well
extending to or into a subterranean water-bearing stratum that is
used or intended to be used as, or is suitable for, a source of water
supply for domestic purposes.
   (b) (1) Notwithstanding subdivision (a), when a regional board
finds that water quality considerations do not preclude controlled
recharge of the stratum by direct injection, and when the State
Department of  Health Services   Public Health
 , following a public hearing, finds the proposed recharge will
not degrade the quality of water in the receiving aquifer as a source
of water supply for domestic purposes, recycled water may be
injected by a well into the stratum. The State Department of 
Health Services   Public Health  may make and
enforce any regulations pertaining to this subdivision as it deems
proper.
   (2)  Nothing in this   This  section
shall  not  be construed to do either or both of the
following:
   (A) Affect the authority of the state board or regional boards to
prescribe and enforce requirements for the discharge.
   (B) Preempt the exercise by a water district of its existing
ordinance authority to impose or implement stricter standards for
protecting groundwater quality in the receiving aquifer.
   (c)  When   If  the State Department of
 Health Services   Public Health  makes the
findings provided for in subdivision (b), the department shall
consider the state board's Statement of Policy with Respect to
Maintaining High Quality of Waters in California, as set forth in
Resolution 68-16, dated October 28, 1968, and shall also consider
current and potential future public health consequences of the
controlled recharge.
   SEC. 45.    Section 13552.4 of the   Water
Code   is amended to read: 
   13552.4.  (a) Any public agency, including a state agency, city,
county, city and county, district, or any other political subdivision
of the state, may require the use of recycled water for irrigation
of residential landscaping, if all of the following requirements are
met:
   (1) Recycled water, for this use, is available to the user and
meets the requirements set forth in Section 13550, as determined by
the state board after notice and a hearing.
   (2) The use of recycled water does not cause any loss or
diminution of any existing water right.
   (3) The irrigation systems are constructed in accordance with
Chapter 3 (commencing with Section 60301) of Division 4 of Title 22
of the California Code Regulations.
   (b) This section applies to both of the following:
   (1) New subdivisions for which the building permit is issued on or
after March 15, 1994, or, if a building permit is not required, new
structures for which construction begins on or after March 15, 1994,
for which the State Department of  Health Services 
 Public Health  has approved the use of recycled water.
   (2) Any residence that is retrofitted to permit the use of
recycled water for landscape irrigation and for which the State
Department of  Health Services   Public Health
 has approved the use of recycled water.
   (c) (1) Division 13 (commencing with Section 21000) of the Public
Resources Code does not apply to any project  which 
 that  only involves the repiping, redesign, or use of
recycled water for irrigation of residential landscaping necessary to
comply with a requirement prescribed by a public agency under
subdivision (a).
   (2) The exemption in paragraph (1) does not apply to any project
to develop recycled water, to construct conveyance facilities for
recycled water, or any other project not specified in this
subdivision.
   SEC. 46.    Section 13553 of the   Water
Code   is amended to read: 
   13553.  (a) The Legislature hereby finds and declares that the use
of potable domestic water for toilet and urinal flushing in
structures is a waste or an unreasonable use of water within the
meaning of Section 2 of Article X of the California Constitution if
recycled water, for these uses, is available to the user and meets
the requirements set forth in Section 13550, as determined by the
state board after notice and a hearing.
   (b) The state board may require a public agency or person subject
to this section to furnish any information that may be relevant to
making the determination required in subdivision (a).
   (c) For  the  purposes of this section and
Section 13554, "structure" or "structures" means commercial, retail,
and office buildings, theaters, auditoriums, condominium projects,
schools, hotels, apartments, barracks, dormitories, jails, prisons,
and reformatories, and other structures as determined by the State
Department of Public Health.
   (d) Recycled water may be used in condominium projects, as defined
in Section 1351 of the Civil Code, subject to all of the following
conditions:
   (1) Prior to the indoor use of recycled water in any condominium
project, the agency delivering the recycled water to the condominium
project shall file a report  with the appropriate regional
water quality control board   with,  and receive
written approval of the report  from   from,
 the State Department of Public Health. The report shall be
consistent with the provisions of Title 22 of the California Code of
Regulations generally applicable to dual-plumbed structures and shall
include all the following:
   (A) That potable water service to each condominium project will be
provided with a backflow protection device approved by the State
Department of Public Health to protect the agency's public water
system, as defined in Section 116275 of the Health and Safety Code.
The backflow protection device approved by the State Department of
Public Health shall be inspected and tested annually by a person
certified in the inspection of backflow prevention devices.
   (B) That any plumbing modifications in the condominium unit or any
physical alteration of the structure will be done in compliance with
state and local plumbing codes.
   (C) That each condominium project will be tested by the recycled
water agency or the responsible local agency at least once every four
years to ensure that there are no indications of a possible cross
connection between the condominium's potable and nonpotable systems.
   (D) That recycled water lines will be color coded consistent with
current statutes and regulations.
   (2) The recycled water agency or the responsible local agency
shall maintain records of all tests and annual inspections conducted.

   (3) The condominium's declaration, as defined in Section 1351 of
the Civil Code, shall provide that the laws and regulations governing
recycled water apply, shall  not  permit  no
  any  exceptions to those laws and regulations,
shall incorporate the report described in paragraph (1), and shall
contain the following statement:

   "NOTICE OF USE OF RECYCLED WATER

This property is approved by the State Department of Public Health
for the use of recycled water for toilet and urinal flushing. This
water is not potable, is not suitable for indoor purposes other than
toilet and urinal flushing purposes, and requires dual plumbing.
Alterations and modifications to the plumbing system require a permit
and are prohibited without first consulting with the appropriate
local building code enforcement agency and your property management
company or homeowners' association to ensure that the recycled water
is not mixed with the drinking water."

   (e) The State Department of Public Health may adopt regulations as
necessary to assist in the implementation of this section.
   (f) This section shall only apply to condominium projects that are
created, within the meaning of Section 1352 of the Civil Code, on or
after January 1, 2008.
   (g)  Nothing in this   This  section
 or   and  Section 13554  applies
  do not apply  to a pilot program adopted pursuant
to Section 13553.1.
   SEC. 47.    Section 13576 of the   Water
Code   is amended to read: 
   13576.  The Legislature hereby makes the following findings and
declarations:
   (a) The State of California is subject to periodic drought
conditions.
   (b) The development of traditional water resources in California
has not kept pace with the state's population, which is growing at
the rate of over 700,000 per year and which is anticipated to reach
 36 million   36,000,000  by the year 2010.

   (c) There is a need for a reliable source of water for uses not
related to the supply of potable water to protect investments in
agriculture, greenbelts, and recreation and to replenish groundwater
basins, and protect and enhance fisheries, wildlife habitat, and
riparian areas.
   (d) The environmental benefits of recycled water include a reduced
demand for water in the Sacramento-San Joaquin Delta  which
  that  is otherwise needed to maintain water
quality, reduced discharge of waste into the ocean, and the
enhancement of groundwater basins, recreation, fisheries, and
wetlands.
   (e) The use of recycled water has proven to be safe from a public
health standpoint, and the State Department of  Health
Services   Public Health  is updating regulations
for the use of recycled water.
   (f) The use of recycled water is a cost-effective, reliable method
of helping to meet California's water supply needs.
   (g) The development of the infrastructure to distribute recycled
water will provide jobs and enhance the economy of the state.
   (h) Retail water suppliers and recycled water producers and
wholesalers should promote the substitution of recycled water for
potable water and imported water in order to maximize the appropriate
cost-effective use of recycled water in California.
   (i) Recycled water producers, retail water suppliers, and entities
responsible for groundwater replenishment should cooperate in joint
technical, economic, and environmental studies, as appropriate, to
determine the feasibility of providing recycled water service.
   (j) Retail water suppliers and recycled water producers and
wholesalers should be encouraged to enter into contracts to
facilitate the service of recycled and potable water by the retail
water suppliers in their service areas in the most efficient and
cost-effective manner.
   (k) Recycled water producers and wholesalers and entities
responsible for groundwater replenishment should be encouraged to
enter into contracts to facilitate the use of recycled water for
groundwater replenishment if recycled water is available and the
authorities having jurisdiction approve its use.
   (l) Wholesale prices set by recycled water producers and recycled
water wholesalers, and rates that retail water suppliers are
authorized to charge for recycled water, should reflect an equitable
sharing of the costs and benefits associated with the development and
use of recycled water.
   SEC. 48.    Section 13578 of the   Water
Code   is amended to read: 
   13578.  (a) In order to achieve the statewide goal for recycled
water use established in Section 13577 and to implement the Governor'
s Advisory Drought Planning Panel Critical Water Shortage Contingency
Plan recommendations, Section F2, as submitted December 29, 2000,
the department shall identify and report to the Legislature on
opportunities for increasing the use of recycled water, as defined in
paragraph (3) of subdivision (b) of Section 13575, and identify
constraints and impediments, including the level of state financial
assistance available for project construction, to increasing the use
of recycled water.
   (b) The department shall convene a task force, to be known as the
2002 Recycled Water Task Force, to advise the department in
implementation of subdivision (a), including making recommendations
to the Legislature regarding the following:
   (1) How to further the use of recycled water in industrial and
commercial applications, including, but not limited to, those
applications set forth in Section 13552.8. The task force shall
evaluate the current regulatory framework of state and local rules,
regulations, ordinances, and permits to identify the obstacles and
disincentives to industrial and commercial reuse. Issues to be
investigated include, but are not limited to, applicability of visual
inspections instead of pressure tests for cross-connections between
potable and nonpotable water systems, dual piping trenching
restrictions, fire suppression system design, and backflow
protections.
   (2) Changes in the Uniform Plumbing Code, published by the
International Association of Plumbing and Mechanical Officials, that
are appropriate to facilitate the use of recycled water in industrial
and commercial settings. The department shall make recommendations
to the California Building Standards Commission with regard to
suggested revisions to the California Plumbing Code necessary to
incorporate the changes identified by the task force.
   (3) Changes in state statutes or the current regulatory framework
of state and local rules, regulations, ordinances, and permits
appropriate to increase the use of recycled water for commercial
laundries and toilet and urinal flushing in structures including, but
not limited to, those defined in subdivision (c) of Section 13553.
The department shall identify financial incentives to help offset the
cost of retrofitting privately and publicly owned structures.
   (4) The need to reconvene the California Potable Reuse Committee
established by the department in 1993 or convene a successor
committee to update the committee's finding that planned indirect
potable reuse of recycled water by augmentation of surface water
supplies would not adversely affect drinking water quality if certain
conditions were met.
   (5) The need to augment state water supplies using water use
efficiency strategies identified in the CALFED Bay-Delta Program. In
its report pursuant to subdivision (a), the department shall identify
ways to coordinate with CALFED to assist local communities in
educating the public with regard to the statewide water supply
benefits of local recycling projects and the
                      level of public health protection ensured by
compliance with the uniform statewide water recycling criteria
developed by the State Department of  Health Services
  Public Health  in accordance with Section 13521.
   (6) Impediments or constraints, other than water rights, related
to increasing the use of recycled water in applications for
agricultural, environmental, or irrigation uses, as determined by the
department.
   (c) (1) The task force shall be convened by the department and be
comprised of one representative from each of the following state
agencies:
   (A) The department.
   (B) The State Department of  Health Services 
 Public Health  .
   (C) The state board.
   (D) The California Environmental Protection Agency.
   (E) The CALFED Bay-Delta Program.
   (F) The Department of Food and Agriculture.
   (G) The  California  Building Standards Commission.
   (H) The University of California.
   (I) The  Natural  Resources Agency.
   (2) The task force shall also include one representative from a
recognized environmental advocacy group and one representative from a
consumer advocacy group, as determined by the department, and one
representative of local agency health officers, one representative of
urban water wholesalers, one representative from a groundwater
management entity, one representative of water districts, one
representative from a nonprofit association of public and private
members created to further the use of recycled water, one
representative of commercial real estate, one representative of land
development, one representative of industrial interests, and at least
two representatives from each of the following as defined in Section
13575:
   (A) Recycled water producer.
   (B) Recycled water wholesaler.
   (C) Retail water supplier.
   (d) The department and the task force shall report to the
Legislature not later than July 1, 2003.
   (e) The department shall carry out the duties of this section only
to the extent that funds pursuant to Section 79145, enacted as part
of the Safe Drinking Water, Clean Water, Watershed Protection, and
Flood Protection Act (Division 26 (commencing with Section 79000)),
are made available for the purposes of this section.
   SEC. 49.    Section 13580.9 of the   Water
Code   is amended to read: 
   13580.9.  (a) Notwithstanding any other  provision of
 law, and except as otherwise previously provided for in a
contract agreed to by the customer and the City of West Covina, if
the purchaser, contractor, or lessee of, or successor to, all or a
portion of the water utility owned by the City of West Covina is a
retail water supplier that is regulated by the Public Utilities
Commission, rates for recycled or nonpotable water service to a
closed hazardous waste and solid waste facility located within the
boundaries of the City of West Covina for the purposes of irrigation,
recreation, or dust suppression or any other use at that facility
shall be established in accordance with subdivisions (a) to (e),
inclusive, of Section 13580.7, and if there is a failure to agree on
the terms and conditions of a recycled or nonpotable water supply
agreement for the delivery of water for those purposes by that
purchaser, contractor, lessee, or successor, Section 13581 shall
apply.
   (b) For the purpose of this section, nonpotable water that is not
the result of the treatment of waste shall be treated as the
equivalent of recycled water if it is suitable for a direct
beneficial use or a controlled use that would not otherwise occur and
is therefor considered a valuable resource, if the use of that water
will not adversely affect downstream water rights, degrade water
quality, or be injurious to plant life, fish, or wildlife, as
provided by statute or by regulations of the State Department of
 Health Services   Public Health  and the
state board or a regional board, as appropriate.
   SEC. 50.    Section 13627 of the   Water
Code   is amended to read: 
   13627.  (a) Supervisors and operators of those wastewater
treatment plants described in paragraph (1)  and 
 or  (2) of subdivision (b) of Section 13625 shall possess a
certificate of appropriate grade. Subject to the approval of
regulations by the state board, supervisors and operators of those
wastewater treatment plants described in paragraph (3) of subdivision
(b) of Section 13625 shall possess certificates of the appropriate
grade. All certificates shall be issued in accordance with, and to
the extent recommended by the advisory committee and required by,
regulations adopted by the state board. The state board shall develop
and specify in its regulations the training necessary to qualify a
supervisor or operator for certification for each type and class of
plant. The state board may accept experience in lieu of qualification
training. For supervisors and operators of water recycling treatment
plants, the state board may approve use of a water treatment plant
operator of appropriate grade certified by the State Department of
 Public  Health  Services  pursuant to
Article 3 (commencing with Section 106875) of Chapter 4 of Part 1 of
Division 104 of the Health and Safety Code in lieu of a wastewater
treatment plant operator certified by the state board, provided that
the state board may refuse to approve use of an operator certified by
the department or may suspend or revoke its approval of the use of
an operator certified by the department if the operator commits any
of the prohibited acts described in Article 7  (commencing with
Section 3710)  of Chapter 26 of Division 3 of Title 23 of the
California Code of Regulations.
   (b) The regional water quality control board, with jurisdiction
for issuing and ensuring compliance with applicable water reclamation
or waste discharge requirements, shall notify the department in
writing if, pursuant to an inspection conducted under Section 13267,
the regional board makes a determination that there  is
  are  reasonable grounds for not issuing, or for
suspending or revoking, the certificate of a certified water
treatment plant operator who is operating or supervising the
operation of a water recycling treatment plant. The department shall
make its determination regarding the issuance, suspension, or
revocation of a certificate in accordance with Section 106876 of the
Health and Safety Code.
   (c) For purposes of this section, "water recycling treatment plant"
means a treatment plant that receives and further treats secondary
or tertiary effluent, or both, from a wastewater treatment plant.
   (d) A person employed as a wastewater treatment plant supervisor
or operator on the effective date of regulations adopted pursuant to
this chapter shall be issued an appropriate certificate if the person
meets the training, education, and experience requirements
prescribed by regulations.
   (e) The state board may refuse to grant, suspend, or revoke any
certificate issued by the state board to operate a wastewater
treatment plant, or may place on probation, or reprimand, the
certificate holder upon any reasonable ground, including, but not
limited to, all of the following reasons:
   (1) Submitting false or misleading information on an application
for a certificate.
   (2) The employment of fraud or deception in the course of
operating the wastewater treatment plant.
   (3) A certificate holder's failure to use reasonable care or
judgment in the operation of the plant.
   (4) A certificate holder's inability to perform operating duties
properly.
   (5) Willfully or negligently violating, or causing, or allowing
the violation of, waste discharge requirements or permits issued
pursuant to the Federal Water Pollution Control Act (33 U.S.C. Sec.
1251 et seq.).
   (f) The state board shall conduct all proceedings for the refusal
to grant a certificate, and suspension or revocation of a
certificate, pursuant to subdivision  (c)   (e)
 , in accordance with the rules adopted pursuant to Section 185.

   SEC. 51.    Section 13627.4 of the  Water
Code   is amended to read: 
   13627.4.  (a) The  state board may administratively impose the
 civil liability described in Section 13627.1, 13627.2, or
13627.3  may be administratively imposed  in
accordance with Article 2.5 (commencing with Section 13323) of
Chapter 5  except that the executive director shall issue the
complaint with review by the state board  .
   (b) A remedy under this chapter is in addition to, and does not
supersede or limit, any other remedy, civil or criminal, except that
 no  liability is  not  recoverable against
an operator under subdivision (c) of Section 13627.1 for a violation
for which liability is recovered against the operator under Section
13350 or 13385.
   SEC. 52.    Section 13755 of the   Water
Code   is amended to read: 
   13755.   Nothing in this   This  chapter
 shall  does not  affect the powers and
duties of the State Department of  Health Services 
 Public Health  with respect to water and water systems
pursuant to Chapter 4 (commencing with Section  116275)
  116270)  of Part 12 of Division 104 of the Health
and Safety Code. Every person shall comply with this chapter and any
regulation adopted pursuant thereto, in addition to standards
adopted by any city or county.
   SEC. 53.    Section 13800 of the   Water
Code   is amended to read: 
   13800.  The department, after  such   the
 studies and investigations pursuant to Section 231 as it finds
necessary, on determining that water well, cathodic protection well,
and monitoring well construction, maintenance, abandonment, and
destruction standards are needed in an area to protect the quality of
water used or  which   that  may be used
for any beneficial use, shall so report to the appropriate regional
water quality control board and to the State Department of 
Health Services   Public Health  . The report shall
contain  such   the  recommended standards
for water well  and   ,  cathodic
protection well, and monitoring well construction, maintenance,
abandonment, and destruction as, in the department's opinion, are
necessary to protect the quality of any affected water.
   SEC. 54.    Section 13801 of the   Water
Code   is amended to read: 
   13801.  (a) The regional board, upon receipt of a report from the
department pursuant to Section 13800, shall hold a public hearing on
the need to establish well standards for the area involved. The
regional board may hold a public hearing with respect to any area
regardless of whether a report has been received from the department
if it has information that standards may be needed.
   (b) Notwithstanding subdivision (a), the state board shall, not
later than September 1, 1989, adopt a model water well, cathodic
protection well, and monitoring well drilling and abandonment
ordinance implementing the standards for water well construction,
maintenance, and abandonment contained in Bulletin 74-81 of the
department. If the model ordinance is not adopted by this date, the
state board shall report to the Legislature as to the reasons for the
delay. The state board shall circulate the model ordinances to all
cities and  counties .   counties. 
   (c) Notwithstanding any other  provision of  law,
each county, city, or water agency, where appropriate, shall, not
later than January 15, 1990, adopt a water well, cathodic protection
well, and monitoring well drilling and abandonment ordinance that
meets or exceeds the standards contained in Bulletin 74-81. Where a
water agency  which   that  has permit
authority over well drilling within the agency adopts a water well,
cathodic protection well, and monitoring well drilling and
abandonment ordinance that meets or exceeds the standards contained
in Bulletin 74-81, a county or city shall not be required to adopt an
ordinance for the same area.
   (d) If a county, city, or water agency, where appropriate, fails
to adopt an ordinance establishing water well, cathodic protection
well, and monitoring well drilling and abandonment standards, the
model ordinance adopted by the state board pursuant to subdivision
(b) shall take effect on February 15, 1990, and shall be enforced by
the county or city and have the same force and effect as if adopted
as a county or city ordinance.
   (e) The minimum standards recommended by the department and
adopted by the state board or local agencies for the construction,
maintenance, abandonment, or destruction of monitoring wells or class
1 hazardous injection wells shall not be construed to limit,
abridge, or supersede the powers or duties of the State Department of
 Health Services   Public Health  in their
application of standards to the construction, maintenance,
abandonment, or destruction of monitoring wells or class 1 hazardous
injection wells at facilities  which   that
 treat, store, or dispose of hazardous waste or at any site
where the State Department of  Health Services  
Public Health  is the lead agency responsible for investigation
and remedial action at that site, as long as the standards used by
the State Department of  Health Services  
Public Health  meet or exceed those in effect by any city,
county, or water agency where appropriate, responsible for developing
ordinances for the area in question.
   SEC. 55.    Section 13903 of the   Water
Code   is amended to read: 
   13903.  Each regional board shall notify each affected city or
county, the State Department of  Health Services 
 Public Health  and the  State  Department
of Boating and Waterways of areas of inadequate regulation by
ordinance of discharges of waste from houseboats and shall recommend
provisions necessary to control the discharges of waste from
houseboats into the waters.
   SEC. 56.    Section 13904 of the   Water
Code   is amended to read: 
   13904.  Each  such  affected city or county shall
within 120 days of receipt of the notice from the regional board,
adopt an ordinance for control of discharges of waste from houseboats
within the area for which notice was given by the board. A copy of
 such   the  ordinance shall be sent to the
regional board on its adoption and the regional board shall transmit
 such   the  ordinance to the state board,
the State Department of  Health Services  
Public Health  and the  State  Department of
Boating and Waterways.
   SEC. 57.    Section 13952.1 of the   Water
Code   is amended to read: 
   13952.1.  (a) Notwithstanding Section 13951, the South Tahoe
Public Utility District may provide recycled water only to prevent
the destruction of its Luther Pass recycled water pump station from a
catastrophic fire if all of the following conditions are met:
   (1) The district submits an engineering report to the Lahontan
Regional Board and the State Department of  Health Services
  Public Health  , as required by that regional
board and that department.
   (2) The Lahontan Regional Board, the State Department of 
Health Services   Public Health  , and the Tahoe
Regional Planning Agency authorize the use of recycled water, and the
specified area or areas in the immediate vicinity of the pump
station where that recycled water may be used, only to prevent the
destruction of the district's Luther Pass recycled water pump station
from a catastrophic fire.
   (3) The fire incident commander authorizes the use of the recycled
water to prevent the destruction of the district's Luther Pass
recycled water pump station from a catastrophic fire, as authorized
pursuant to this section.
   (b) For purposes of this section, "catastrophic fire" means a
condition exists that will result in severe harm to life, property,
and the environment if the use of recycled water as authorized
pursuant to this section is not used, and all other methods to
extinguish the fire have been exhausted.
   SEC. 58.    Pursuant to Section 13201 of the Water
Code, the Governor appoints, and the Legislature confirms, members to
the California regional water quality control boards. These members
serve staggered four-year terms in conformance with Section 13202 of
the Water Code and the legislation establishing the various positions
on the California regional water quality control boards. As a result
of the enactment of Chapter 1299 of the Statutes of 1959, two of the
positions on each California regional water quality control board
were established with an expiration date of September 17 of the year
in which the position expires. The other positions on each California
regional water quality control board have a September 30 expiration
date in the various years in which they expire. For consistency and
efficiency, the Legislature hereby extends to September 30, 2014, the
terms of the two positions on each California regional water quality
control board that would otherwise expire on September 17, 2014.
 
  SECTION 1.    Section 1367.01 of the Health and
Safety Code is amended to read:
   1367.01.  (a) A health care service plan and any entity with which
it contracts for services that include utilization review or
utilization management functions, that prospectively,
retrospectively, or concurrently reviews and approves, modifies,
delays, or denies, based in whole or in part on medical necessity,
requests by providers prior to, retrospectively, or concurrent with
the provision of health care services to enrollees, or that delegates
these functions to medical groups or independent practice
associations or to other contracting providers, shall comply with
this section.
   (b) (1) A health care service plan that is subject to this section
shall have written policies and procedures establishing the process
by which the plan prospectively, retrospectively, or concurrently
reviews and approves, modifies, delays, or denies, based in whole or
in part on medical necessity, requests by providers of health care
services for plan enrollees. These policies and procedures shall
ensure that decisions based on the medical necessity of proposed
health care services are consistent with criteria or guidelines that
are supported by clinical principles and processes. These criteria
and guidelines shall be developed pursuant to Section 1363.5. These
policies and procedures, and a description of the process by which
the plan reviews and approves, modifies, delays, or denies requests
by providers prior to, retrospectively, or concurrent with the
provision of health care services to enrollees, shall be filed with
the director for review and approval, and shall be disclosed by the
plan to providers and enrollees upon request, and by the plan to the
public upon request.
   (2) Upon receipt of a request by a provider prior to,
retrospectively, or concurrent with, the provision of health care
services to an enrollee, a health care service plan subject to this
section shall assign a tracking number to the request and shall
provide acknowledgment of receipt of the request to the provider. The
acknowledgment of receipt shall identify the assigned tracking
number and shall be provided via electronic mail, unless the provider
has opted out of the electronic method of transmittal and requested
that all acknowledgments of receipt be transmitted in writing. In the
case of an orally submitted request, the acknowledgment of receipt
shall also be provided orally to the submitting provider. All
communications regarding the request, including, but not limited to,
the communications or responses identified in subdivision (h), shall
reference the tracking number assigned pursuant to this paragraph.
   (c) A health care service plan subject to this section, except a
plan that meets the requirements of Section 1351.2, shall employ or
designate a medical director who holds an unrestricted license to
practice medicine in this state issued pursuant to Section 2050 of
the Business and Professions Code or pursuant to the Osteopathic Act,
or, if the plan is a specialized health care service plan, a
clinical director with California licensure in a clinical area
appropriate to the type of care provided by the specialized health
care service plan. The medical director or clinical director shall
ensure that the process by which the plan reviews and approves,
modifies, or denies, based in whole or in part on medical necessity,
requests by providers prior to, retrospectively, or concurrent with
the provision of health care services to enrollees, complies with the
requirements of this section.
   (d) If health plan personnel, or individuals under contract to the
plan to review requests by providers, approve the provider's
request, pursuant to subdivision (b), the decision shall be
communicated to the provider pursuant to subdivision (h).
   (e) No individual, other than a licensed physician or a licensed
health care professional who is competent to evaluate the specific
clinical issues involved in the health care services requested by the
provider, may deny or modify requests for authorization of health
care services for an enrollee for reasons of medical necessity. The
decision of the physician or other health care professional shall be
communicated to the provider and the enrollee pursuant to subdivision
(h).
   (f) The criteria or guidelines used by the health care service
plan to determine whether to approve, modify, or deny requests by
providers prior to, retrospectively, or concurrent with, the
provision of health care services to enrollees shall be consistent
with clinical principles and processes. These criteria and guidelines
shall be developed pursuant to the requirements of Section 1363.5.
   (g) If the health care service plan requests medical information
from providers in order to determine whether to approve, modify, or
deny requests for authorization, the plan shall request only the
information reasonably necessary to make the determination.
   (h) In determining whether to approve, modify, or deny requests by
providers prior to, retrospectively, or concurrent with the
provision of health care services to enrollees, based in whole or in
part on medical necessity, a health care service plan subject to this
section shall meet the following requirements:
   (1) Decisions to approve, modify, or deny, based on medical
necessity, requests by providers prior to, or concurrent with the
provision of health care services to enrollees that do not meet the
requirements for the 72-hour review required by paragraph (2), shall
be made in a timely fashion appropriate for the nature of the
enrollee's condition, not to exceed five business days from the plan'
s receipt of the information reasonably necessary and requested by
the plan to make the determination. In cases where the review is
retrospective, the decision shall be communicated to the individual
who received services, or to the individual's designee, within 30
days of the receipt of information that is reasonably necessary to
make this determination, and shall be communicated to the provider in
a manner that is consistent with current law. For purposes of this
section, retrospective reviews shall be for care rendered on or after
January 1, 2000.
   (2) When the enrollee's condition is such that the enrollee faces
an imminent and serious threat to his or her health, including, but
not limited to, the potential loss of life, limb, or other major
bodily function, or the normal timeframe for the decisionmaking
process, as described in paragraph (1), would be detrimental to the
enrollee's life or health or could jeopardize the enrollee's ability
to regain maximum function, decisions to approve, modify, or deny
requests by providers prior to, or concurrent with, the provision of
health care services to enrollees, shall be made in a timely fashion
appropriate for the nature of the enrollee's condition, not to exceed
72 hours after the plan's receipt of the information reasonably
necessary and requested by the plan to make the determination.
Nothing in this section shall be construed to alter the requirements
of subdivision (b) of Section 1371.4. Notwithstanding Section 1371.4,
the requirements of this division shall be applicable to all health
plans and other entities conducting utilization review or utilization
management.
   (3) Decisions to approve, modify, or deny requests by providers
for authorization prior to, or concurrent with, the provision of
health care services to enrollees shall be communicated to the
requesting provider within 24 hours of the decision. Except for
concurrent review decisions pertaining to care that is underway,
which shall be communicated to the enrollee's treating provider
within 24 hours, decisions resulting in denial, delay, or
modification of all or part of the requested health care service
shall be communicated to the enrollee in writing within two business
days of the decision. In the case of concurrent review, care shall
not be discontinued until the enrollee's treating provider has been
notified of the plan's decision and a care plan has been agreed upon
by the treating provider that is appropriate for the medical needs of
that patient.
   (4) Communications regarding decisions to approve requests by
providers prior to, retrospectively, or concurrent with the provision
of health care services to enrollees shall specify the specific
health care service approved. Responses regarding decisions to deny,
delay, or                                           modify health
care services requested by providers prior to, retrospectively, or
concurrent with the provision of health care services to enrollees
shall be communicated to the enrollee in writing, and to providers
initially by telephone or facsimile, except with regard to decisions
rendered retrospectively, and then in writing, and shall include a
clear and concise explanation of the reasons for the plan's decision,
a description of the criteria or guidelines used, and the clinical
reasons for the decisions regarding medical necessity. Any written
communication to a physician or other health care provider of a
denial, delay, or modification of a request shall include the name
and telephone number of the health care professional responsible for
the denial, delay, or modification. The telephone number provided
shall be a direct number or an extension, to allow the physician or
health care provider easily to contact the professional responsible
for the denial, delay, or modification. Responses shall also include
information as to how the enrollee may file a grievance with the plan
pursuant to Section 1368, and in the case of Medi-Cal enrollees,
shall explain how to request an administrative hearing and aid paid
pending under Sections 51014.1 and 51014.2 of Title 22 of the
California Code of Regulations.
   (5) If the health care service plan cannot make a decision to
approve, modify, or deny the request for authorization within the
timeframes specified in paragraph (1) or (2) because the plan is not
in receipt of all of the information reasonably necessary and
requested, or because the plan requires consultation by an expert
reviewer, or because the plan has asked that an additional
examination or test be performed upon the enrollee, provided the
examination or test is reasonable and consistent with good medical
practice, the plan shall, immediately upon the expiration of the
timeframe specified in paragraph (1) or (2) or as soon as the plan
becomes aware that it will not meet the timeframe, whichever occurs
first, notify the provider and the enrollee, in writing, that the
plan cannot make a decision to approve, modify, or deny the request
for authorization within the required timeframe, and specify the
information requested but not received, or the expert reviewer to be
consulted, or the additional examinations or tests required. The plan
shall also notify the provider and enrollee of the anticipated date
on which a decision may be rendered. Upon receipt of all information
reasonably necessary and requested by the plan, the plan shall
approve, modify, or deny the request for authorization within the
timeframes specified in paragraph (1) or (2), whichever applies.
   (6) If the director determines that a health care service plan has
failed to meet any of the timeframes in this section, or has failed
to meet any other requirement of this section, the director may
assess, by order, administrative penalties for each failure. A
proceeding for the issuance of an order assessing administrative
penalties shall be subject to appropriate notice to, and an
opportunity for a hearing with regard to, the person affected, in
accordance with subdivision (a) of Section 1397. The administrative
penalties shall not be deemed an exclusive remedy for the director.
These penalties shall be paid to the Managed Care Administrative
Fines and Penalties Fund and shall be used for the purposes specified
in Section 1341.45.
   (i) A health care service plan subject to this section shall
maintain telephone access for providers to request authorization for
health care services.
   (j) A health care service plan subject to this section that
reviews requests by providers prior to, retrospectively, or
concurrent with, the provision of health care services to enrollees
shall establish, as part of the quality assurance program required by
Section 1370, a process by which the plan's compliance with this
section is assessed and evaluated. The process shall include
provisions for evaluation of complaints, assessment of trends,
implementation of actions to correct identified problems, mechanisms
to communicate actions and results to the appropriate health plan
employees and contracting providers, and provisions for evaluation of
any corrective action plan and measurements of performance.
   (k) The director shall review a health care service plan's
compliance with this section as part of its periodic onsite medical
survey of each plan undertaken pursuant to Section 1380, and shall
include a discussion of compliance with this section as part of its
report issued pursuant to that section.
   (l) This section shall not apply to decisions made for the care or
treatment of the sick who depend upon prayer or spiritual means for
healing in the practice of religion as set forth in subdivision (a)
of Section 1270.
   (m) Nothing in this section shall cause a health care service plan
to be defined as a health care provider for purposes of any
provision of law, including, but not limited to, Section 6146 of the
Business and Professions Code, Sections 3333.1 and 3333.2 of the
Civil Code, and Sections 340.5, 364, 425.13, 667.7, and 1295 of the
Code of Civil Procedure.  
  SEC. 2.    Section 1370.8 is added to the Health
and Safety Code, to read:
   1370.8.  Upon receipt of a claim, a health care service plan shall
assign a tracking number to the claim and shall provide
acknowledgment of receipt of the claim to the provider. The
acknowledgment of receipt shall identify the assigned tracking number
and shall be provided via electronic mail, unless the provider has
opted out of the electronic method of transmittal and requested that
all acknowledgments of receipt be transmitted in writing. In the case
of an orally submitted claim, the acknowledgment of receipt shall
also be provided orally to the submitting provider. All
communications regarding the claim shall reference the tracking
number assigned pursuant to this section.  
  SEC. 3.    Section 1371 of the Health and Safety
Code is amended to read:
   1371.  (a) A health care service plan, including a specialized
health care service plan, shall reimburse claims or any portion of
any claim, whether in state or out of state, as soon as practical,
but no later than 30 working days after receipt of the claim by the
health care service plan, or if the health care service plan is a
health maintenance organization, 45 working days after receipt of the
claim by the health care service plan, unless the claim or portion
thereof is contested by the plan in which case the claimant shall be
notified, in writing, that the claim is contested or denied, within
30 working days after receipt of the claim by the health care service
plan, or if the health care service plan is a health maintenance
organization, 45 working days after receipt of the claim by the
health care service plan. The notice that a claim is being contested
shall identify the portion of the claim that is contested and the
specific reasons for contesting the claim.
   (b) If an uncontested claim is not reimbursed by delivery to the
claimants' address of record within the respective 30 or 45 working
days after receipt, interest shall accrue at the rate of 15 percent
per annum beginning with the first calendar day after the 30- or
45-working-day period. A health care service plan shall automatically
include in its payment of the claim all interest that has accrued
pursuant to this section without requiring the claimant to submit a
request for the interest amount. Any plan failing to comply with this
requirement shall pay the claimant a ten-dollar ($10) fee.
   (c) For the purposes of this section, a claim, or portion thereof,
is reasonably contested if the plan has not received the completed
claim and all information necessary to determine payer liability for
the claim, or has not been granted reasonable access to information
concerning provider services. Information necessary to determine
payer liability for the claim includes, but is not limited to,
reports of investigations concerning fraud and misrepresentation, and
necessary consents, releases, and assignments, a claim on appeal, or
other information necessary for the plan to determine the medical
necessity for the health care services provided.
   (d) If a claim or portion thereof is contested on the basis that
the plan has not received all information necessary to determine
payer liability for the claim or portion thereof and notice has been
provided pursuant to this section both of the following shall apply:
   (1) Within three working days of receipt of any of this additional
information, the plan shall provide acknowledgment of receipt of
that information to the claimant. The acknowledgment of receipt shall
be provided via electronic mail unless the claimant has opted out of
the electronic method of transmittal and requested that all
acknowledgments of receipt be transmitted in writing. The
acknowledgment of receipt shall include the tracking number assigned
to the claim pursuant to Section 1370.8.
   (2) The plan shall have 30 working days or, if the health care
service plan is a health maintenance organization, 45 working days
after receipt of all of the information necessary to determine payer
liability to complete reconsideration of the claim. If a plan has
received all of the information necessary to determine payer
liability for a contested claim and has not reimbursed a claim it has
determined to be payable within 30 working days of the receipt of
that information, or if the plan is a health maintenance
organization, within 45 working days of receipt of that information,
interest shall accrue and be payable at a rate of 15 percent per
annum beginning with the first calendar day after the 30- or
45-working-day period.
   (e) The obligation of the plan to comply with this section shall
not be deemed to be waived when the plan requires its medical groups,
independent practice associations, or other contracting entities to
pay claims for covered services.  
  SEC. 4.    Section 1371.35 of the Health and
Safety Code is amended to read:
   1371.35.  (a) A health care service plan, including a specialized
health care service plan, shall reimburse each complete claim, or
portion thereof, whether in state or out of state, as soon as
practical, but no later than 30 working days after receipt of the
complete claim by the health care service plan, or if the health care
service plan is a health maintenance organization, 45 working days
after receipt of the complete claim by the health care service plan.
However, a plan may contest or deny a claim, or portion thereof, by
notifying the claimant, in writing, that the claim is contested or
denied, within 30 working days after receipt of the claim by the
health care service plan, or if the health care service plan is a
health maintenance organization, 45 working days after receipt of the
claim by the health care service plan. The notice that a claim, or
portion thereof, is contested shall identify the portion of the claim
that is contested, by revenue code, and the specific information
needed from the provider to reconsider the claim. The notice that a
claim, or portion thereof, is denied shall identify the portion of
the claim that is denied, by revenue code, and the specific reasons
for the denial. A plan may delay payment of an uncontested portion of
a complete claim for reconsideration of a contested portion of that
claim so long as the plan pays those charges specified in subdivision
(b).
   (b) If a complete claim, or portion thereof, that is neither
contested nor denied, is not reimbursed by delivery to the claimant's
address of record within the respective 30 or 45 working days after
receipt, the plan shall pay the greater of fifteen dollars ($15) per
year or interest at the rate of 15 percent per annum beginning with
the first calendar day after the 30- or 45-working-day period. A
health care service plan shall automatically include the fifteen
dollars ($15) per year or interest due in the payment made to the
claimant, without requiring a request therefor.
   (c) For the purposes of this section, a claim, or portion thereof,
is reasonably contested if the plan has not received the completed
claim. A paper claim from an institutional provider shall be deemed
complete upon submission of a legible emergency department report and
a completed UB 92 or other format adopted by the National Uniform
Billing Committee, and reasonable relevant information requested by
the plan within 30 working days of receipt of the claim. An
electronic claim from an institutional provider shall be deemed
complete upon submission of an electronic equivalent to the UB 92 or
other format adopted by the National Uniform Billing Committee, and
reasonable relevant information requested by the plan within 30
working days of receipt of the claim. However, if the plan requests a
copy of the emergency department report within the 30 working days
after receipt of the electronic claim from the institutional
provider, the plan may also request additional reasonable relevant
information within 30 working days of receipt of the emergency
department report, at which time the claim shall be deemed complete.
A claim from a professional provider shall be deemed complete upon
submission of a completed HCFA 1500 or its electronic equivalent or
other format adopted by the National Uniform Billing Committee, and
reasonable relevant information requested by the plan within 30
working days of receipt of the claim. The provider shall provide the
plan reasonable relevant information within 10 working days of
receipt of a written request that is clear and specific regarding the
information sought. If, as a result of reviewing the reasonable
relevant information, the plan requires further information, the plan
shall have an additional 15 working days after receipt of the
reasonable relevant information to request the further information,
notwithstanding any time limit to the contrary in this section, at
which time the claim shall be deemed complete.
   (d) This section shall not apply to claims about which there is
evidence of fraud and misrepresentation, to eligibility
determinations, or in instances where the plan has not been granted
reasonable access to information under the provider's control. A plan
shall specify, in a written notice sent to the provider within the
respective 30 or 45 working days of receipt of the claim, which, if
any, of these exceptions applies to a claim.
   (e) If a claim or portion thereof is contested on the basis that
the plan has not received information reasonably necessary to
determine payer liability for the claim or portion thereof, both of
the following shall apply:
   (1) Within three working days of receipt of any of this additional
information, a plan shall provide acknowledgment of receipt of that
information to the claimant. The acknowledgment of receipt shall be
provided via electronic mail unless the claimant has opted out of the
electronic method of transmittal and requested that all
acknowledgments of receipt be transmitted in writing. The
acknowledgment of receipt shall include the tracking number assigned
to the claim pursuant to Section 1370.8.
   (2) The plan shall have 30 working days or, if the health care
service plan is a health maintenance organization, 45 working days
after receipt of all of the information necessary to determine payer
liability to complete reconsideration of the claim. If a claim, or
portion thereof, undergoing reconsideration is not reimbursed by
delivery to the claimant's address of record within the respective 30
or 45 working days after receipt of all of the information necessary
to determine payer liability, the plan shall pay the greater of
fifteen dollars ($15) per year or interest at the rate of 15 percent
per annum beginning with the first calendar day after the 30- or
45-working-day period. A health care service plan shall automatically
include the fifteen dollars ($15) per year or interest due in the
payment made to the claimant, without requiring a request therefor.
   (f) The obligation of the plan to comply with this section shall
not be deemed to be waived when the plan requires its medical groups,
independent practice associations, or other contracting entities to
pay claims for covered services. This section shall not be construed
to prevent a plan from assigning, by a written contract, the
responsibility to pay interest and late charges pursuant to this
section to medical groups, independent practice associations, or
other entities.
   (g) A plan shall not delay payment on a claim from a physician or
other provider to await the submission of a claim from a hospital or
other provider, without citing specific rationale as to why the delay
was necessary and providing a monthly update regarding the status of
the claim and the plan's actions to resolve the claim, to the
provider that submitted the claim.
   (h) A health care service plan shall not request or require that a
provider waive its rights pursuant to this section.
   (i) This section shall not apply to capitated payments.
   (j) This section shall apply only to claims for services rendered
to a patient who was provided emergency services and care as defined
in Section 1317.1 in the United States on or after September 1, 1999.

   (k) This section shall not be construed to affect the rights or
obligations of any person pursuant to Section 1371.
   (l) This section shall not be construed to affect a written
agreement, if any, of a provider to submit bills within a specified
time period.  
  SEC. 5.    Section 1374.72 of the Health and
Safety Code is amended to read:
   1374.72.  (a) Every health care service plan contract issued,
amended, or renewed on or after July 1, 2000, that provides hospital,
medical, or surgical coverage shall provide coverage for the
diagnosis and medically necessary treatment of severe mental
illnesses of a person of any age, and of serious emotional
disturbances of a child, as specified in subdivisions (d) and (e),
under the same terms and conditions applied to other medical
conditions as specified in subdivision (c).
   (b) These benefits shall include the following:
   (1) Outpatient services.
   (2) Inpatient hospital services.
   (3) Partial hospital services.
   (4) Prescription drugs, if the plan contract includes coverage for
prescription drugs.
   (c) The terms and conditions applied to the benefits required by
this section, that shall be applied equally to all benefits under the
plan contract, include, but are not limited to, any form of
treatment limitation or other action by a plan that may limit the
receipt of benefits required by this section. These treatment
limitations or actions include, but are not limited to, the use of
any of the following:
   (1) Maximum lifetime benefits.
   (2) Copayments.
   (3) Individual and family deductibles.
   (d) For the purposes of this section, "severe mental illnesses"
shall include:
   (1) Schizophrenia.
   (2) Schizoaffective disorder.
   (3) Bipolar disorder (manic-depressive illness).
   (4) Major depressive disorders.
   (5) Panic disorder.
   (6) Obsessive-compulsive disorder.
   (7) Pervasive developmental disorder or autism.
   (8) Anorexia nervosa.
   (9) Bulimia nervosa.
   (e) For the purposes of this section, a child suffering from,
"serious emotional disturbances of a child" shall be defined as a
child who (1) has one or more mental disorders as identified in the
most recent edition of the Diagnostic and Statistical Manual of
Mental Disorders, other than a primary substance use disorder or
developmental disorder, that result in behavior inappropriate to the
child's age according to expected developmental norms, and (2) who
meets the criteria in paragraph (2) of subdivision (a) of Section
5600.3 of the Welfare and Institutions Code.
   (f) This section shall not apply to contracts entered into
pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8
(commencing with Section 14200) of Division 9 of Part 3 of the
Welfare and Institutions Code, between the State Department of Health
Services and a health care service plan for enrolled Medi-Cal
beneficiaries.
   (g) (1) For the purpose of compliance with this section, a plan
may provide coverage for all or part of the mental health services
required by this section through a separate specialized health care
service plan or mental health plan, and shall not be required to
obtain an additional or specialized license for this purpose.
   (2) A plan shall provide the mental health coverage required by
this section in its entire service area and in emergency situations
as may be required by applicable laws and regulations. For purposes
of this section, health care service plan contracts that provide
benefits to enrollees through preferred provider contracting
arrangements are not precluded from requiring enrollees who reside or
work in geographic areas served by specialized health care service
plans or mental health plans to secure all or part of their mental
health services within those geographic areas served by specialized
health care service plans or mental health plans.
   (3) Notwithstanding any other provision of law, in the provision
of benefits required by this section, a health care service plan may
utilize case management, network providers, utilization review
techniques, prior authorization, copayments, or other cost sharing,
subject to the limitation imposed under subdivision (c).
   (h) Nothing in this section shall be construed to deny or restrict
in any way the department's authority to ensure plan compliance with
this chapter when a plan provides coverage for prescription drugs.
 
  SEC. 6.    Section 10123.125 is added to the
Insurance Code, to read:
   10123.125.  Upon receipt of a claim, a health insurer shall assign
a tracking number to the claim and shall provide acknowledgment of
receipt of the claim to the provider. The acknowledgment of receipt
shall identify the assigned tracking number and shall be provided via
electronic mail, unless the provider has opted out of the electronic
method of transmittal and requested that all acknowledgments of
receipt be transmitted in writing. In the case of an orally submitted
claim, the acknowledgment of receipt shall also be provided orally
to the submitting provider. All communications regarding the claim
shall reference the tracking number assigned pursuant to this
section.  
  SEC. 7.   Section 10123.13 of the Insurance Code
is amended to read:
   10123.13.  (a) Every insurer issuing group or individual policies
of health insurance that covers hospital, medical, or surgical
expenses, including those telemedicine services covered by the
insurer as defined in subdivision (a) of Section 2290.5 of the
Business and Professions Code, shall reimburse claims or any portion
of any claim, whether in state or out of state, for those expenses as
soon as practical, but no later than 30 working days after receipt
of the claim by the insurer unless the claim or portion thereof is
contested by the insurer, in which case the claimant shall be
                                  notified, in writing, that the
claim is contested or denied, within 30 working days after receipt of
the claim by the insurer. The notice that a claim is being contested
or denied shall identify the portion of the claim that is contested
or denied and the specific reasons, including for each reason the
factual and legal basis known at that time by the insurer, for
contesting or denying the claim. If the reason is based solely on
facts or solely on law, the insurer is required to provide only the
factual or the legal basis for its reason for contesting or denying
the claim. The insurer shall provide a copy of the notice to each
insured who received services pursuant to the claim that was
contested or denied and to the insured's health care provider that
provided the services at issue. The notice shall advise the provider
who submitted the claim on behalf of the insured or pursuant to a
contract for alternative rates of payment and the insured that either
may seek review by the department of a claim that the insurer
contested or denied, and the notice shall include the address,
Internet Web site address, and telephone number of the unit within
the department that performs this review function. The notice to the
provider may be included on either the explanation of benefits or
remittance advice and shall also contain a statement advising the
provider of its right to enter into the dispute resolution process
described in Section 10123.137. The notice to the insured may also be
included on the explanation of benefits.
   (b) If an uncontested claim is not reimbursed by delivery to the
claimant's address of record within 30 working days after receipt,
interest shall accrue and shall be payable at the rate of 10 percent
per annum beginning with the first calendar day after the
30-working-day period.
   (c) For purposes of this section, a claim, or portion thereof, is
reasonably contested when the insurer has not received a completed
claim and all information necessary to determine payer liability for
the claim, or has not been granted reasonable access to information
concerning provider services. Information necessary to determine
liability for the claims includes, but is not limited to, reports of
investigations concerning fraud and misrepresentation, and necessary
consents, releases, and assignments, a claim on appeal, or other
information necessary for the insurer to determine the medical
necessity for the health care services provided to the claimant.
   (d) If a claim or portion thereof is contested on the basis that
the insurer has not received information reasonably necessary to
determine payer liability for the claim or portion thereof, both of
the following shall apply:
   (1) Within three working days of receipt of any of this additional
information, the insurer shall provide acknowledgment of receipt of
that information to the claimant. The acknowledgment of receipt shall
be provided via electronic mail unless the claimant has opted out of
the electronic method of transmittal and requested that all
acknowledgments of receipt be transmitted in writing. The
acknowledgment of receipt shall include the tracking number assigned
to the claim pursuant to Section 10123.125.
   (2) If the insurer has received all of the information necessary
to determine payer liability for a contested claim and has not
reimbursed a claim determined to be payable within 30 working days of
receipt of that information, interest shall accrue and be payable at
a rate of 10 percent per annum beginning with the first calendar day
after the 30-working-day period.
   (e) The obligation of the insurer to comply with this section
shall not be deemed to be waived when the insurer requires its
contracting entities to pay claims for covered services. 

  SEC. 8.    Section 10123.135 of the Insurance Code
is amended to read:
   10123.135.  (a) Every health insurer, or an entity with which it
contracts for services that include utilization review or utilization
management functions, that prospectively, retrospectively, or
concurrently reviews and approves, modifies, delays, or denies, based
in whole or in part on medical necessity, requests by providers
prior to, retrospectively, or concurrent with the provision of health
care services to insureds, or that delegates these functions to
medical groups or independent practice associations or to other
contracting providers, shall comply with this section.
   (b) (1) A health insurer that is subject to this section, or any
entity with which an insurer contracts for services that include
utilization review or utilization management functions, shall have
written policies and procedures establishing the process by which the
insurer prospectively, retrospectively, or concurrently reviews and
approves, modifies, delays, or denies, based in whole or in part on
medical necessity, requests by providers of health care services for
insureds. These policies and procedures shall ensure that decisions
based on the medical necessity of proposed health care services are
consistent with criteria or guidelines that are supported by clinical
principles and processes. These criteria and guidelines shall be
developed pursuant to subdivision (f). These policies and procedures,
and a description of the process by which an insurer, or an entity
with which an insurer contracts for services that include utilization
review or utilization management functions, reviews and approves,
modifies, delays, or denies requests by providers prior to,
retrospectively, or concurrent with the provision of health care
services to insureds, shall be filed with the commissioner, and shall
be disclosed by the insurer to insureds and providers upon request,
and by the insurer to the public upon request.
   (2) Upon receipt of a request by a provider prior to,
retrospectively, or concurrent with the provision of health care
services to an insured, a health insurer, or the entity with which
the insurer contracts for services that include utilization review or
utilization management functions, shall assign a tracking number to
the request and shall provide acknowledgment of receipt of the
request to the provider. The acknowledgment of receipt shall identify
the assigned tracking number and shall be provided via electronic
mail, unless the provider has opted out of the electronic method of
transmittal and requested that all acknowledgments of receipt be
transmitted in writing. In the case of an orally submitted request,
the acknowledgment of receipt shall also be provided orally to the
submitting provider. All communications regarding the request,
including, but not limited to, the communications or responses
identified in subdivision (h), shall reference the tracking number
assigned pursuant to this paragraph.
   (c) If the number of insureds covered under health benefit plans
in this state that are issued by an insurer subject to this section
constitute at least 50 percent of the number of insureds covered
under health benefit plans issued nationwide by that insurer, the
insurer shall employ or designate a medical director who holds an
unrestricted license to practice medicine in this state issued
pursuant to Section 2050 of the Business and Professions Code or the
Osteopathic Initiative Act, or the insurer may employ a clinical
director licensed in California whose scope of practice under
California law includes the right to independently perform all those
services covered by the insurer. The medical director or clinical
director shall ensure that the process by which the insurer reviews
and approves, modifies, delays, or denies, based in whole or in part
on medical necessity, requests by providers prior to,
retrospectively, or concurrent with the provision of health care
services to insureds, complies with the requirements of this section.
Nothing in this subdivision shall be construed as restricting the
existing authority of the Medical Board of California.
   (d) If an insurer subject to this section, or individuals under
contract to the insurer to review requests by providers, approve the
provider's request pursuant to subdivision (b), the decision shall be
communicated to the provider pursuant to subdivision (h).
   (e) An individual, other than a licensed physician or a licensed
health care professional who is competent to evaluate the specific
clinical issues involved in the health care services requested by the
provider, may not deny or modify requests for authorization of
health care services for an insured for reasons of medical necessity.
The decision of the physician or other health care provider shall be
communicated to the provider and the insured pursuant to subdivision
(h).
   (f) (1) An insurer shall disclose, or provide for the disclosure,
to the commissioner and to network providers, the process the
insurer, its contracting provider groups, or any entity with which it
contracts for services that include utilization review or
utilization management functions, uses to authorize, delay, modify,
or deny health care services under the benefits provided by the
insurance contract, including coverage for subacute care,
transitional inpatient care, or care provided in skilled nursing
facilities. An insurer shall also disclose those processes to
policyholders or persons designated by a policyholder, or to any
other person or organization, upon request.
   (2) The criteria or guidelines used by an insurer, or an entity
with which an insurer contracts for utilization review or utilization
management functions, to determine whether to authorize, modify,
delay, or deny health care services, shall comply with all of the
following:
   (A) Be developed with involvement from actively practicing health
care providers.
   (B) Be consistent with sound clinical principles and processes.
   (C) Be evaluated, and updated if necessary, at least annually.
   (D) If used as the basis of a decision to modify, delay, or deny
services in a specified case under review, be disclosed to the
provider and the policyholder in that specified case.
   (E) Be available to the public upon request. An insurer shall only
be required to disclose the criteria or guidelines for the specific
procedures or conditions requested. An insurer may charge reasonable
fees to cover administrative expenses related to disclosing criteria
or guidelines pursuant to this paragraph that are limited to copying
and postage costs. The insurer may also make the criteria or
guidelines available through electronic communication means.
   (3) The disclosure required by subparagraph (E) of paragraph (2)
shall be accompanied by the following notice: "The materials provided
to you are guidelines used by this insurer to authorize, modify, or
deny health care benefits for persons with similar illnesses or
conditions. Specific care and treatment may vary depending on
individual need and the benefits covered under your insurance
contract."
   (g) If an insurer subject to this section requests medical
information from providers in order to determine whether to approve,
modify, or deny requests for authorization, the insurer shall request
only the information reasonably necessary to make the determination.

   (h) In determining whether to approve, modify, or deny requests by
providers prior to, retrospectively, or concurrent with the
provision of health care services to insureds, based in whole or in
part on medical necessity, every insurer subject to this section
shall meet the following requirements:
   (1) Decisions to approve, modify, or deny, based on medical
necessity, requests by providers prior to, or concurrent with, the
provision of health care services to insureds that do not meet the
requirements for the 72-hour review required by paragraph (2), shall
be made in a timely fashion appropriate for the nature of the insured'
s condition, not to exceed five business days from the insurer's
receipt of the information reasonably necessary and requested by the
insurer to make the determination. In cases where the review is
retrospective, the decision shall be communicated to the individual
who received services, or to the individual's designee, within 30
days of the receipt of information that is reasonably necessary to
make this determination, and shall be communicated to the provider in
a manner that is consistent with current law. For purposes of this
section, retrospective reviews shall be for care rendered on or after
January 1, 2000.
   (2) When the insured's condition is such that the insured faces an
imminent and serious threat to his or her health, including, but not
limited to, the potential loss of life, limb, or other major bodily
function, or the normal timeframe for the decisionmaking process, as
described in paragraph (1), would be detrimental to the insured's
life or health or could jeopardize the insured's ability to regain
maximum function, decisions to approve, modify, or deny requests by
providers prior to, or concurrent with, the provision of health care
services to insureds shall be made in a timely fashion, appropriate
for the nature of the insured's condition, but not to exceed 72 hours
after the insurer's receipt of the information reasonably necessary
and requested by the insurer to make the determination.
   (3) Decisions to approve, modify, or deny requests by providers
for authorization prior to, or concurrent with, the provision of
health care services to insureds shall be communicated to the
requesting provider within 24 hours of the decision. Except for
concurrent review decisions pertaining to care that is underway,
which shall be communicated to the insured's treating provider within
24 hours, decisions resulting in denial, delay, or modification of
all or part of the requested health care service shall be
communicated to the insured in writing within two business days of
the decision. In the case of concurrent review, care shall not be
discontinued until the insured's treating provider has been notified
of the insurer's decision and a care plan has been agreed upon by the
treating provider that is appropriate for the medical needs of that
patient.
   (4) Communications regarding decisions to approve requests by
providers prior to, retrospectively, or concurrent with the provision
of health care services to insureds shall specify the specific
health care service approved. Responses regarding decisions to deny,
delay, or modify health care services requested by providers prior
to, retrospectively, or concurrent with the provision of health care
services to insureds shall be communicated to insureds in writing,
and to providers initially by telephone or facsimile, except with
regard to decisions rendered retrospectively, and then in writing,
and shall include a clear and concise explanation of the reasons for
the insurer's decision, a description of the criteria or guidelines
used, and the clinical reasons for the decisions regarding medical
necessity. Any written communication to a physician or other health
care provider of a denial, delay, or modification or a request shall
include the name and telephone number of the health care professional
responsible for the denial, delay, or modification. The telephone
number provided shall be a direct number or an extension, to allow
the physician or health care provider easily to contact the
professional responsible for the denial, delay, or modification.
Responses shall also include information as to how the provider or
the insured may file an appeal with the insurer or seek department
review under the unfair practices provisions of Article 6.5
(commencing with Section 790) of Chapter 1 of Part 2 of Division 1
and the regulations adopted thereunder.
   (5) If the insurer cannot make a decision to approve, modify, or
deny the request for authorization within the timeframes specified in
paragraph (1) or (2) because the insurer is not in receipt of all of
the information reasonably necessary and requested, or because the
insurer requires consultation by an expert reviewer, or because the
insurer has asked that an additional examination or test be performed
upon the insured, provided that the examination or test is
reasonable and consistent with good medical practice, the insurer
shall, immediately upon the expiration of the timeframe specified in
paragraph (1) or (2), or as soon as the insurer becomes aware that it
will not meet the timeframe, whichever occurs first, notify the
provider and the insured, in writing, that the insurer cannot make a
decision to approve, modify, or deny the request for authorization
within the required timeframe, and specify the information requested
but not received, or the expert reviewer to be consulted, or the
additional examinations or tests required. The insurer shall also
notify the provider and enrollee of the anticipated date on which a
decision may be rendered. Upon receipt of all information reasonably
necessary and requested by the insurer, the insurer shall approve,
modify, or deny the request for authorization within the timeframes
specified in paragraph (1) or (2), whichever applies.
   (6) If the commissioner determines that an insurer has failed to
meet any of the timeframes in this section, or has failed to meet any
other requirement of this section, the commissioner may assess, by
order, administrative penalties for each failure. A proceeding for
the issuance of an order assessing administrative penalties shall be
subject to appropriate notice to, and an opportunity for a hearing
with regard to, the person affected. The administrative penalties
shall not be deemed an exclusive remedy for the commissioner. These
penalties shall be paid to the Insurance Fund.
   (i) Every insurer subject to this section shall maintain telephone
access for providers to request authorization for health care
services.
   (j) Nothing in this section shall cause a disability insurer to be
defined as a health care provider for purposes of any provision of
law, including, but not limited to, Section 6146 of the Business and
Professions Code, Sections 3333.1 and 3333.2 of the Civil Code, and
Sections 340.5, 364, 425.13, 667.7, and 1295 of the Code of Civil
Procedure.  
  SEC. 9.    Section 10123.147 of the Insurance Code
is amended to read:
   10123.147.  (a) Every insurer issuing group or individual policies
of health insurance that covers hospital, medical, or surgical
expenses, including those telemedicine services covered by the
insurer as defined in subdivision (a) of Section 2290.5 of the
Business and Professions Code, shall reimburse each complete claim,
or portion thereof, whether in state or out of state, as soon as
practical, but no later than 30 working days after receipt of the
complete claim by the insurer. However, an insurer may contest or
deny a claim, or portion thereof, by notifying the claimant, in
writing, that the claim is contested or denied, within 30 working
days after receipt of the complete claim by the insurer. The notice
that a claim, or portion thereof, is contested shall identify the
portion of the claim that is contested, by revenue code, and the
specific information needed from the provider to reconsider the
claim. The notice that a claim, or portion thereof, is denied shall
identify the portion of the claim that is denied, by revenue code,
and the specific reasons for the denial, including the factual and
legal basis known at that time by the insurer for each reason. If the
reason is based solely on facts or solely on law, the insurer is
required to provide only the factual or legal basis for its reason to
deny the claim. The insurer shall provide a copy of the notice
required by this subdivision to each insured who received services
pursuant to the claim that was contested or denied and to the insured'
s health care provider that provided the services at issue. The
notice required by this subdivision shall include a statement
advising the provider who submitted the claim on behalf of the
insured or pursuant to a contract for alternative rates of payment
and the insured that either may seek review by the department of a
claim that was contested or denied by the insurer and the address,
Internet Web site address, and telephone number of the unit within
the department that performs this review function. The notice to the
provider may be included on either the explanation of benefits or
remittance advice and shall also contain a statement advising the
provider of its right to enter into the dispute resolution process
described in Section 10123.137. An insurer may delay payment of an
uncontested portion of a complete claim for reconsideration of a
contested portion of that claim so long as the insurer pays those
charges specified in subdivision (b).
   (b) If a complete claim, or portion thereof, that is neither
contested nor denied, is not reimbursed by delivery to the claimant's
address of record within the 30 working days after receipt, the
insurer shall pay the greater of fifteen dollars ($15) per year or
interest at the rate of 10 percent per annum beginning with the first
calendar day after the 30-working-day period. An insurer shall
automatically include the fifteen dollars ($15) per year or interest
due in the payment made to the claimant, without requiring a request
therefor.
   (c) For the purposes of this section, a claim, or portion thereof,
is reasonably contested if the insurer has not received the
completed claim. A paper claim from an institutional provider shall
be deemed complete upon submission of a legible emergency department
report and a completed UB 92 or other format adopted by the National
Uniform Billing Committee, and reasonable relevant information
requested by the insurer within 30 working days of receipt of the
claim. An electronic claim from an institutional provider shall be
deemed complete upon submission of an electronic equivalent to the UB
92 or other format adopted by the National Uniform Billing
Committee, and reasonable relevant information requested by the
insurer within 30 working days of receipt of the claim. However, if
the insurer requests a copy of the emergency department report within
the 30 working days after receipt of the electronic claim from the
institutional provider, the insurer may also request additional
reasonable relevant information within 30 working days of receipt of
the emergency department report, at which time the claim shall be
deemed complete. A claim from a professional provider shall be deemed
complete upon submission of a completed HCFA 1500 or its electronic
equivalent or other format adopted by the National Uniform Billing
Committee, and reasonable relevant information requested by the
insurer within 30 working days of receipt of the claim. The provider
shall provide the insurer reasonable relevant information within 15
working days of receipt of a written request that is clear and
specific regarding the information sought. If, as a result of
reviewing the reasonable relevant information, the insurer requires
further information, the insurer shall have an additional 15 working
days after receipt of the reasonable relevant information to request
the further information, notwithstanding any time limit to the
contrary in this section, at which time the
                   claim shall be deemed complete.
   (d) This section shall not apply to claims about which there is
evidence of fraud and misrepresentation, to eligibility
determinations, or in instances where the plan has not been granted
reasonable access to information under the provider's control. An
insurer shall specify, in a written notice to the provider within 30
working days of receipt of the claim, which, if any, of these
exceptions applies to a claim.
   (e) If a claim or portion thereof is contested on the basis that
the insurer has not received information reasonably necessary to
determine payer liability for the claim or portion thereof, both of
the following shall apply:
   (1) Within three working days of receipt of any of this additional
information, the insurer shall provide acknowledgment of receipt of
that information to the claimant. The acknowledgment of receipt shall
be provided via electronic mail unless the claimant has opted out of
the electronic method of transmittal and requested that all
acknowledgments of receipt be transmitted in writing. The
acknowledgment of receipt shall include the tracking number assigned
to the claim pursuant to Section 10123.125.
   (2) The insurer shall have 30 working days after receipt of all of
the information necessary to determine payer liability to complete
reconsideration of the claim. If a claim, or portion thereof,
undergoing reconsideration is not reimbursed by delivery to the
claimant's address of record within the 30 working days after receipt
of all of the information necessary to determine payer liability,
the insurer shall pay the greater of fifteen dollars ($15) per year
or interest at the rate of 10 percent per annum beginning with the
first calendar day after the 30-working-day period. An insurer shall
automatically include the fifteen dollars ($15) per year or interest
due in the payment made to the claimant, without requiring a request
therefor.
   (f) An insurer shall not delay payment on a claim from a physician
or other provider to await the submission of a claim from a hospital
or other provider, without citing specific rationale as to why the
delay was necessary and providing a monthly update regarding the
status of the claim and the insurer's actions to resolve the claim,
to the provider that submitted the claim.
   (g) An insurer shall not request or require that a provider waive
its rights pursuant to this section.
   (h) This section shall apply only to claims for services rendered
to a patient who was provided emergency services and care as defined
in Section 1317.1 of the Health and Safety Code in the United States
on or after September 1, 1999.
   (i) This section shall not be construed to affect the rights or
obligations of any person pursuant to Section 10123.13.
   (j) This section shall not be construed to affect a written
agreement, if any, of a provider to submit bills within a specified
time period.  
  SEC. 10.    Section 10144.5 of the Insurance Code
is amended to read:
   10144.5.  (a) Every policy of health insurance that is issued,
amended, or renewed on or after July 1, 2000, shall provide coverage
for the diagnosis and medically necessary treatment of severe mental
illnesses of a person of any age, and of serious emotional
disturbances of a child, as specified in subdivisions (d) and (e),
under the same terms and conditions applied to other medical
conditions, as specified in subdivision (c).
   (b) These benefits shall include the following:
   (1) Outpatient services.
   (2) Inpatient hospital services.
   (3) Partial hospital services.
   (4) Prescription drugs, if the policy or contract includes
coverage for prescription drugs.
   (c) The terms and conditions applied to the benefits required by
this section, that shall be applied equally to all benefits under the
health insurance policy, include, but are not limited to, any form
of treatment limitation or other action by an insurer that may limit
the receipt of benefits required by this section. These treatment
limitations or actions include, but are not limited to, the use of
any of the following:
   (1) Maximum lifetime benefits.
   (2) Copayments and coinsurance.
   (3) Individual and family deductibles.
   (d) For the purposes of this section, "severe mental illnesses"
shall include:
   (1) Schizophrenia.
   (2) Schizoaffective disorder.
   (3) Bipolar disorder (manic-depressive illness).
   (4) Major depressive disorders.
   (5) Panic disorder.
   (6) Obsessive-compulsive disorder.
   (7) Pervasive developmental disorder or autism.
   (8) Anorexia nervosa.
   (9) Bulimia nervosa.
   (e) For the purposes of this section, a child suffering from,
"serious emotional disturbances of a child" shall be defined as a
child who (1) has one or more mental disorders as identified in the
most recent edition of the Diagnostic and Statistical Manual of
Mental Disorders, other than a primary substance use disorder or
developmental disorder, that result in behavior inappropriate to the
child's age according to expected developmental norms, and (2) who
meets the criteria in paragraph (2) of subdivision (a) of Section
5600.3 of the Welfare and Institutions Code.
   (f) (1) For the purpose of compliance with this section, a health
insurer may provide coverage for all or part of the mental health
services required by this section through a separate specialized
health care service plan or mental health plan, and shall not be
required to obtain an additional or specialized license for this
purpose.
   (2) A health insurer shall provide the mental health coverage
required by this section in its entire in-state service area and in
emergency situations as may be required by applicable laws and
regulations. For purposes of this section, health insurers are not
precluded from requiring insureds who reside or work in geographic
areas served by specialized health care service plans or mental
health plans to secure all or part of their mental health services
within those geographic areas served by specialized health care
service plans or mental health plans.
   (3) Notwithstanding any other provision of law, in the provision
of benefits required by this section, a health insurer may utilize
case management, managed care, or utilization review, subject to the
limitation imposed under subdivision (c).
   (4) Any action that a health insurer takes to implement this
section, including, but not limited to, contracting with preferred
provider organizations, shall not be deemed to be an action that
would otherwise require licensure as a health care service plan under
the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code).
   (g) This section shall not apply to accident-only, specified
disease, hospital indemnity, Medicare supplement, dental-only, or
vision-only insurance policies.  
  SEC. 11.    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.