AB 578, as introduced, Dickinson. Health care.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, the willful violation of which is a crime, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law requires each application for licensure as a health care service plan or specialized health care service plan under these provisions to be accompanied by specified information. Existing law requires the Director of the Department of Managed Care to issue a license to an individual filing an application if the director determines that the applicant has satisfied certain requirements.
This bill would require that the director publish a notice, upon receiving an application, that would include information regarding the applicant and nature of the application, as specified. This bill would also require that the director require the plan to publish a written notice concerning the application pursuant to conditions imposed by rule or order. By expanding the scope of an existing crime, the bill would impose a state-mandated local program. This bill would require that the director solicit public comments, as specified, prior to approving an application.
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.
The people of the State of California do enact as follows:
Section 1353 of the Health and Safety Code is
2amended to read:
begin insert(a)end insertbegin insert end insertThe director shall issue a license to any person filing
4an application pursuant to this article, if the director, upon due
5consideration of the application and of the information obtained
6in any investigation, including, if necessary, an onsite inspection,
7determines that the applicant has satisfied the provisions of this
8chapter and that, in the judgment of the director, a disciplinary
9action pursuant to Section 1386 would not be warranted against
10begin delete suchend deletebegin insert theend insert applicant. Otherwise, the director
shall deny the
11application.
12(b) The director shall publish a notice, upon receiving an
13application, in one or more newspapers of general circulation in
14the proposed plan’s service area, describing the name of the
15applicant, the nature of the application, and the date of receipt of
16the application. The notice shall indicate that the director will be
17soliciting public comments and will hold a public hearing on the
18application. The director shall require the plan to publish a written
19notice concerning the application pursuant to conditions imposed
20by rule or order.
21(c) Prior to approving
the application, the director shall solicit
22public comments in written form and shall hold at least one public
23hearing concerning the application.
No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
P3 1the meaning of Section 6 of Article XIII B of the California
2Constitution.
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