BILL NUMBER: AB 578	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 20, 2013

   An act to amend Section 1353 of the Health and Safety Code,
relating to health care.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 1353 of the Health and Safety Code is amended
to read:
   1353.   (a)    The director shall issue a
license to any person filing an application pursuant to this article,
if the director, upon due consideration of the application and of
the information obtained in any investigation, including, if
necessary, an onsite inspection, determines that the applicant has
satisfied the provisions of this chapter and that, in the judgment of
the director, a disciplinary action pursuant to Section 1386 would
not be warranted against  such  the 
applicant. Otherwise, the director shall deny the application. 
   (b) The director shall publish a notice, upon receiving an
application, in one or more newspapers of general circulation in the
proposed plan's service area, describing the name of the applicant,
the nature of the application, and the date of receipt of the
application. The notice shall indicate that the director will be
soliciting public comments and will hold a public hearing on the
application. The director shall require the plan to publish a written
notice concerning the application pursuant to conditions imposed by
rule or order.  
   (c) Prior to approving the application, the director shall solicit
public comments in written form and shall hold at least one public
hearing concerning the application. 
  SEC. 2.  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.