BILL NUMBER: SB 757	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 2, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 1, 2011
	AMENDED IN ASSEMBLY  AUGUST 22, 2011
	AMENDED IN ASSEMBLY  AUGUST 15, 2011
	AMENDED IN ASSEMBLY  JULY 5, 2011
	AMENDED IN ASSEMBLY  JUNE 13, 2011
	AMENDED IN SENATE  APRIL 28, 2011
	AMENDED IN SENATE  MARCH 23, 2011

INTRODUCED BY   Senator Lieu
   (Coauthor: Assembly Member Fuentes)

                        FEBRUARY 18, 2011

   An act to amend Section 1374.58 of, and to add Section 1367.30 to,
the Health and Safety Code, and to amend Sections 10112.5 and
10121.7 of the Insurance Code, relating to discrimination.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 757, Lieu. Discrimination.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans and makes a willful violation of its provisions a crime.
Existing law also provides for the regulation of health insurers by
the Department of Insurance. Existing law requires a health care
service plan and a health insurance policy to provide group coverage
to the registered domestic partner of an employee, subscriber,
insured, or policyholder that is equal to the coverage it provides to
the spouse of those persons.
   This bill would specify that a plan or policy may not discriminate
in coverage between spouses or domestic partners of a different sex
and spouses or domestic partners of the same sex.
   Existing law provides that a policy or certificate of health
insurance marketed, issued, or delivered to a California resident,
regardless of the situs of the contract or master group policyholder,
is generally subject to California insurance law, except for a
policy issued outside of California to an employer whose principal
place of business and majority of employees are located outside of
California.
   This bill would provide that every group health care service plan
contract and every group health insurance policy that is marketed,
issued, or delivered to a California resident is subject to the
requirements to provide equal coverage to domestic partners as is
provided to spouses, notwithstanding any other provision of law. The
bill would also provide that notwithstanding the exception for a
policy issued outside of California to an employer whose principal
place of business and majority of employees are located outside of
California, no policy or certificate of health insurance marketed,
issued, or delivered to a resident of this state shall discriminate
in coverage between spouses or domestic partners of a different sex
and spouses or domestic partners of the same sex.
   Because a willful violation of these provisions by a health care
service plan 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.


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

  SECTION 1.  Section 1367.30 is added to the Health and Safety Code,
to read:
   1367.30.  Notwithstanding any other provision of law, every group
health care service plan contract marketed, issued, or delivered to a
resident of this state, regardless of the situs of the contract or
the subscriber, shall be subject to Section 1374.58.
  SEC. 2.  Section 1374.58 of the Health and Safety Code is amended
to read:
   1374.58.  (a) A group health care service plan that provides
hospital, medical, or surgical expense benefits shall provide equal
coverage to employers or guaranteed associations, as defined in
Section 1357, for the registered domestic partner of an employee or
subscriber to the same extent, and subject to the same terms and
conditions, as provided to a spouse of the employee or subscriber,
and shall inform employers and guaranteed associations of this
coverage. A plan shall not offer or provide coverage for a registered
domestic partner that is not equal to the coverage provided to the
spouse of an employee or subscriber, and shall not discriminate in
coverage between spouses or domestic partners of a different sex and
spouses or domestic partners of the same sex. The prohibitions and
requirements imposed by this section are in addition to any other
prohibitions and requirements imposed by law.
   (b) If an employer or guaranteed association has purchased
coverage for spouses and registered domestic partners pursuant to
subdivision (a), a health care service plan that provides hospital,
medical, or surgical expense benefits for employees or subscribers
and their spouses shall enroll, upon application by the employer or
group administrator, a registered domestic partner of an employee or
subscriber in accordance with the terms and conditions of the group
contract that apply generally to all spouses under the plan,
including coordination of benefits.
   (c) For purposes of this section, the term "domestic partner"
shall have the same meaning as that term is used in Section 297 of
the Family Code.
   (d) (1) A health care service plan may require that the employee
or subscriber verify the status of the domestic partnership by
providing to the plan a copy of a valid Declaration of Domestic
Partnership filed with the Secretary of State pursuant to Section 298
of the Family Code or an equivalent document issued by a local
agency of this state, another state, or a local agency of another
state under which the partnership was created. The plan may also
require that the employee or subscriber notify the plan upon the
termination of the domestic partnership.
   (2) Notwithstanding paragraph (1), a health care service plan may
require the information described in that paragraph only if it also
requests from the employee or subscriber whose spouse is provided
coverage, verification of marital status and notification of
dissolution of the marriage.
   (e) Nothing in this section shall be construed to expand the
requirements of Section 4980B of Title 26 of the United States Code,
Section 1161, and following, of Title 29 of the United States Code,
or Section 300bb-1, and following, of Title 42 of the United States
Code, as added by the Consolidated Omnibus Budget Reconciliation Act
of 1985 (Public Law 99-272), and as those provisions may be later
amended.
   (f) A plan subject to this section that is issued, amended,
delivered, or renewed in this state on or after January 2, 2005,
shall be deemed to provide coverage for registered domestic partners
that is equal to the coverage provided to a spouse of an employee or
subscriber.
  SEC. 3.  Section 10112.5 of the Insurance Code is amended to read:
   10112.5.  (a) (1) Notwithstanding any other provision of law,
every policy or certificate of health insurance marketed, issued, or
delivered to a resident of this state, regardless of the situs of the
contract or master group policyholder, shall be subject to all
provisions of this code.
   (2) (A) Paragraph (1) shall not apply to a policy or certificate
of health insurance that is issued outside of California to an
employer whose principal place of business and majority of employees
are located outside of California.
   (B) Notwithstanding subparagraph (A), no policy or certificate of
health insurance marketed, issued, or delivered to a resident of this
state shall discriminate in coverage between spouses or domestic
partners of a different sex and spouses or domestic partners of the
same sex.
   (3) Nothing in subparagraph (A) of paragraph (2) shall be
construed to limit the applicability of any other provision of this
code to any policy or certificate of health insurance that is issued
outside of California to an employer whose principal place of
business and majority of employees are located outside of California.

   (b) Notwithstanding any other provision of law, every policy or
certificate of group health insurance marketed, issued, or delivered
to a resident of this state, regardless of the situs of the contract
or master group policyholder, shall be subject to Section 10121.7.
  SEC. 4.  Section 10121.7 of the Insurance Code is amended to read:
   10121.7.  (a) A policy of group health insurance that provides
hospital, medical, or surgical expense benefits shall provide equal
coverage to employers or guaranteed associations, as defined in
Section 10700, for the registered domestic partner of an employee,
insured, or policyholder to the same extent, and subject to the same
terms and conditions, as provided to a spouse of the employee,
insured, or policyholder, and shall inform employers and guaranteed
associations of this coverage. A policy shall not offer or provide
coverage for a registered domestic partner that is not equal to the
coverage provided to the spouse of an employee, insured, or
policyholder, and shall not discriminate in coverage between spouses
or domestic partners of a different sex and spouses or domestic
partners of the same sex. The prohibitions and requirements imposed
by this section are in addition to any other prohibitions and
requirements imposed by law.
   (b) If an employer or guaranteed association has purchased
coverage for spouses and registered domestic partners pursuant to
subdivision (a), a health insurer that provides hospital, medical, or
surgical expense benefits for employees, insureds, or policyholders
and their spouses shall enroll, upon application by the employer or
group administrator, a registered domestic partner of the employee,
insured, or policyholder in accordance with the terms and conditions
of the group contract that apply generally to all spouses under the
policy, including coordination of benefits.
   (c) For purposes of this section, the term "domestic partner"
shall have the same meaning as that term is used in Section 297 of
the Family Code.
   (d) (1) A policy of group health insurance may require that the
employee, insured, or policyholder verify the status of the domestic
partnership by providing to the insurer a copy of a valid Declaration
of Domestic Partnership filed with the Secretary of State pursuant
to Section 298 of the Family Code or an equivalent document issued by
a local agency of this state, another state, or a local agency of
another state under which the partnership was created. The policy may
also require that the employee, insured, or policyholder notify the
insurer upon the termination of the domestic partnership.
   (2) Notwithstanding paragraph (1), a policy may require the
information described in that paragraph only if it also requests from
the employee, insured, or policyholder whose spouse is provided
coverage, verification of marital status and notification of
dissolution of the marriage.
   (e) Nothing in this section shall be construed to expand the
requirements of Section 4980B of Title 26 of the United States Code,
Section 1161, and following, of Title 29 of the United States Code,
or Section 300bb-1, and following, of Title 42 of the United States
Code, as added by the Consolidated Omnibus Budget Reconciliation Act
of 1985 (Public Law 99-272), and as those provisions may be later
amended.
   (f) A group health insurance policy subject to this section that
is issued, amended, delivered, or renewed in this state on or after
January 2, 2005, shall be deemed to provide coverage for registered
domestic partners that is equal to the coverage provided to a spouse
of an employee, insured, or policyholder.
  SEC. 5.  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.