BILL NUMBER: AB 578	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2014
	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  APRIL 8, 2013

INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 20, 2013

   An act to  amend   add  Section 
1353 of   1517 to  the Health and Safety Code,
 and to add Section 717.7 to the Insurance Code, 
relating to  health care   crisis nurseries
 .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 578, as amended, Dickinson.  Health care. 
 Crisis nurseries: study.  
   Existing law provides for the licensure and regulation by the
State Department of Social Services of crisis nurseries. Crisis
nurseries are nonprofit corporations that care for and supervise
children under 6 years of age who are voluntarily placed in the
crisis nursery by a parent or legal guardian due to a family crisis
or stressful situation for no more than 30 days.  
   This bill, until January 1, 2017, would require the department to
implement a 2-year pilot project in the counties of Sacramento and
Yolo to conduct a study of the relationship between crisis respite
care and incidents of reported child abuse in those counties, and
report the results of the study to the Legislature. The bill would
make the implementation of this pilot project contingent upon all of
the crisis nurseries in those counties voluntarily participating in
the project and providing funding for 1/2 of the cost of the project.
This bill would express the intent of the Legislature to provide
state funding for crisis nurseries in the Budget Act of 2014 for
community services and this pilot project.  
   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 1517 is added to the  
Health and Safety Code   , to read:  
   1517.  (a) The department shall implement a two-year pilot project
in the County of Sacramento and the County of Yolo for the purpose
of evaluating the effectiveness of crisis nurseries in lowering the
incidence of child abuse in those counties. This pilot project shall
be implemented only if all of the crisis nurseries in those counties
voluntarily participate in the project and provide private funding
for one-half of the cost of the project. The pilot project shall
consist of both of the following:
   (1) The department shall conduct a study of the relationship
between crisis respite care and incidents of reported child abuse in
pilot project counties.
   (2) The department shall report the results of the study to the
Legislature on or before December 31, 2016, pursuant to Section 9795
of the Government Code.
   (b) It is the intent of the Legislature to provide state funding
for crisis nurseries in the Budget Act of 2014 in order to enable
crisis nurseries to continue to provide services to the community and
to participate in the pilot project established by this section.
   (c) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.  
  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.