BILL NUMBER: AB 578	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  APRIL 8, 2013

INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 20, 2013

   An act to amend Section 1353 of the Health and Safety Code, and to
add Section 717.7 to the Insurance Code, 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,
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. 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.
   This bill would require that the director or commissioner publish
a notice, upon receiving an application from a first time health care
service plan applicant or health insurer applicant, that would
include information regarding the applicant and nature of the
application, as specified. The bill would also require the
departments to allow comments to be submitted through the departments'
Internet Web sites. The bill would require the director or
commissioner to require the applicant to publish a written notice
concerning the application pursuant to conditions imposed by the
director or commissioner. The bill would require the director or
commissioner to solicit, review, and consider public comments, as
specified, and hold at least one public hearing if comments are
received, prior to approving an application.  The bill would
authorize a consolidated public hearing that considers each
application independently whenever comments regarding 2 or more
pending applications are received. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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) For a first time health care service plan applicant, the
director shall publish a notice, upon receiving the 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 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
director shall require the applicant to publish a written notice
concerning the application pursuant to conditions imposed by the
director.
   (c) Prior to approving the application, the director 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.  Whenever the director receives
comments regarding two or more pending applications, the director may
hold one consolidated hearing that considers each application
independently. 
  SEC. 2.  Section 717.7 is added to the Insurance Code, to read:
   717.7.  (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.  Whenever the commissioner receives
comments regarding two or more pending applications, the commissioner
  may hold one consolidated hearing that considers each
application independently.