Amended in Assembly April 8, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 578

Introduced by Assembly Member Dickinson

February 20, 2013

An act to amend Section 1353 of the Health and Safety Code, begin insert and to add Section 717.7 to the Insurance Code, end insert relating to health care.

LEGISLATIVE COUNSEL’S DIGEST

AB 578, as amended, Dickinson. Health care.

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, begin delete the willful violation of which is a crime, end delete 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. begin insert Existing law also provides for the regulation of health insurers by the Department of Insurance and authorizes the Insurance Commissioner to issue a certificate of authority to transact insurance, as specified. end insert

This bill would require that the director begin insert or commissioner end insert publish a notice, upon receiving an application begin insert from a first time health care service plan applicant or health insurer applicant end insert , that would include information regarding the applicant and nature of the application, as specified. begin delete This end delete begin insert The bill would also require the departments to allow comments to be submitted through the departments’ Internet Web sites. The end insert bill would begin delete also end delete require begin delete that end delete the director begin insert or commissioner to end insert require the begin delete plan end delete begin insert applicant end insert to publish a written notice concerning the application pursuant to conditions imposed by begin delete rule or order. By expanding the scope of an existing crime, the bill would impose a state-mandated local program. This end delete begin insert the director or commissioner. The end insert bill would require begin delete that end delete the director begin insert or commissioner to end insert solicit begin insert , review, and consider end insert public comments, as specified, begin insert and hold at least one public hearing if comments are received, end insert prior to approving an application.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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
the applicant. Otherwise, the director shall deny the application.

(b)  begin delete The end delete begin insert For a first time health care service plan applicant, the end insert
director shall publish a notice, upon receiving begin delete an end delete begin insert the end insert 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 begin delete will be end delete begin insert is end insert soliciting public
comments and begin delete will end delete begin insert may end insert hold a public hearing on the application.
begin insert The department shall allow comments to be submitted through its
Internet Web site. end insert The director shall require the begin delete plan end delete begin insert applicant end insert to
publish a written notice concerning the application pursuant to
conditions imposed by begin delete rule or order end delete begin insert the director end insert .

(c) Prior to approving the application, the director shall solicit begin insert ,
review, and consider end insert public comments in written form and shall
hold at least one public hearing begin insert if comments are received end insert
concerning the application.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 717.7 is added to the end insert begin insert Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 717.7. end insert   

(a) For a first time applicant for a certificate of
authority to transact health insurance, the commissioner shall
publish a notice, upon receiving the application, in one or more
newspapers of general circulation, 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 commissioner
is soliciting public comments and may hold a public hearing on
the application. The department shall allow comments to be
submitted through its Internet Web site. The commissioner shall
require the applicant to publish a written notice concerning the
application pursuant to conditions imposed by the commissioner.

(b) Prior to approving the application, the commissioner shall
solicit, review, and consider public comments in written form and
shall hold at least one public hearing if comments are received
concerning the application.

end insert

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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.

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