Amended in Senate May 16, 2013

Senate BillNo. 332


Introduced bybegin delete Senator Emmersonend deletebegin insert Senators Emmerson and DeSaulnierend insert

February 19, 2013


An act tobegin delete amend Section 10230 of the Business and Professions Code, relating to real estate.end deletebegin insert amend Section 100508 of the Government Code, relating to health care coverage, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 332, as amended, Emmerson. begin deleteReal estate: sales. end deletebegin insertCalifornia Health Benefit Exchange: records.end insert

begin insert

Under the federal Patient Protection and Affordable Care Act (PPACA), each state is required, by January 1, 2014, to establish an American Health Benefit Exchange that makes available qualified health plans to qualified individuals and small employers. Existing state law establishes the California Health Benefit Exchange (Exchange) within state government, specifies the powers and duties of the board governing the Exchange, and requires the board to facilitate the purchase of qualified health plans through the Exchange by qualified individuals and small employers by January 1, 2014.

end insert
begin insert

Under the California Public Records Act (CPRA), public records of state and local agencies are open to public inspection, as specified, unless a record is exempt from disclosure. Existing law exempts specified records of the Exchange from CPRA and requires, except for the portion of a contract that contains the rates of payment, contracts entered into, and amendments to contracts entered into, by the board to be open to inspection after one year.

end insert
begin insert

This bill would instead make open to public inspection the impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy of the board or its staff, or records that provide instructions, advice, or training to employees. The bill would provide that the one year exemption from disclosure for contracts with participating carriers apply to those contracts entered into on or after the effective date of the bill. The bill would also require that the portion of the contract or amendment containing the rates of payment be open to inspection 3 years after a contract or amendment is open to inspection pursuant to these provisions.

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
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Existing law exempts, from the regulation of transactions in trust deeds and real property sales contracts, the negotiation of a loan by or on behalf of a real estate broker in connection with a qualifying sale or exchange of real property in which the broker acted as the agent of one or more of the parties to the sale or exchange, or the sale or exchange by or on behalf of the broker of a promissory note created for the purpose of financing a qualifying real property sale or exchange transaction in which the broker acted as the agent of one or more of the parties to the qualifying real property sale or exchange regardless of the time of the sale or exchange of the promissory note.

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This bill would make technical, nonsubstantive changes to those provisions.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 100508 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

100508.  

(a) Records of the Exchange that reveal any of the
4following shall be exempt from disclosure under the California
5Public Records Act (Chapter 3.5 (commencing with Section 6250)
6of Division 7 of Titlebegin delete 1:end deletebegin insert 1):end insert

begin delete

7(1) The

end delete

8begin insert The end insertdeliberative processes, discussions, communications, or
9any other portion of the negotiations with entities contracting or
10seeking to contract with the Exchange, entities with which the
11Exchange is considering a contract, or entities with which the
P3    1Exchange is considering or enters into any other arrangement under
2which the Exchange provides, receives, or arranges services or
3reimbursement.

begin delete

4(2) The impressions, opinions, recommendations, meeting
5minutes, research, work product, theories, or strategy of the board
6or its staff, or records that provide instructions, advice, or training
7 to employees.

8(b) (1) Except for the portion of a contract that contains the rates
9of payment, contracts entered into pursuant to this title shall be
10open to inspection one year after their effective dates.

11(2) If a contract entered into pursuant to this title is amended,
12the amendment shall be open to inspection one year after the
13effective date of the amendment.

end delete
begin insert

14(b) The following records of the Exchange shall be exempt from
15disclosure under the California Public Records Act (Chapter 3.5
16(commencing with Section 6250) of Division 7 of Title 1) as
17follows:

end insert
begin insert

18(1) (A) Except for the portion of a contract that contains the
19rates of payments, contracts with participating carriers entered
20into pursuant to this title on or after the date the act that added
21this subparagraph becomes effective, shall be open to inspection
22one year after the effective dates of the contracts.

end insert
begin insert

23(B) If contracts with participating carriers entered into pursuant
24to this title are amended, the amendments shall be open to
25inspection one year after the effective date of the amendments.

end insert
begin insert

26(c) Three years after a contract or amendment is open to
27inspection pursuant to subdivision (b), the portion of the contract
28or amendment containing the rates of payment shall be open to
29inspection.

end insert
begin insert

30(d) Notwithstanding any other law, entire contracts with
31participating carriers or amendments to contracts with
32participating carriers shall be open to inspection by the Joint
33Legislative Audit Committee. The committee shall maintain the
34confidentiality of the contracts and amendments until the contracts
35or amendments to a contract are open to inspection pursuant to
36subdivisions (b) and (c).

end insert
37begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
38immediate preservation of the public peace, health, or safety within
39the meaning of Article IV of the Constitution and shall go into
40immediate effect. The facts constituting the necessity are:

end insert
begin insert

P4    1In order to ensure that public resources are managed efficiently
2and appropriately in the state’s efforts to facilitate the purchase
3of qualified health plans through the California Health Benefit
4Exchange by qualified individuals and small employers beginning
5January 1, 2014, it is necessary that this act take effect
6 immediately.

end insert
begin delete
7

SECTION 1.  

Section 10230 of the Business and Professions
8Code
is amended to read:

9

10230.  

(a) This article does not apply to the negotiation of a
10loan by or on behalf of a real estate broker in connection with a
11qualifying sale or exchange of real property in which the broker
12acted as the agent of one or more of the parties to the sale or
13exchange, nor to the sale or exchange by or on behalf of the broker
14of a promissory note created for the purpose of financing a
15qualifying real property sale or exchange transaction in which the
16broker acted as the agent of one or more of the parties to the
17qualifying real property sale or exchange regardless of the time of
18the sale or exchange of the promissory note. For the purposes of
19this subdivision, a “qualifying” sale or exchange of real property
20is one that is subject to the requirements of Article 3 (commencing
21with Section 2956) of Chapter 2 of Title 14 of Part 4 of Division
223 of the Civil Code.

23(b) Subdivision (a) shall not apply to the negotiation of loans
24or to sales or exchanges of promissory notes in connection with
25the financing of a real property sale or exchange transaction in
26which the broker had a direct or indirect monetary interest as a
27 party.

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