SB 657,
as amended, Monning. begin deleteHealth coverage: contracts. end deletebegin insertDiablo Canyon Units 1 and 2: enhanced seismic studies and review: independent peer review panel.end insert
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission, for purposes of establishing rates for any electrical corporation, to disallow expenses reflecting the direct or indirect costs resulting from any unreasonable error or omission relating to the planning, construction, or operation of any portion of the corporation’s plant which cost, or is estimated to have cost, more than $50,000,000, including any expenses resulting from delays caused by any unreasonable error or omission. For these purposes, “planning” includes activities related to the initial and subsequent assessments of the need for a plant construction project and includes investigation and interpretation of environmental factors such as seismic conditions.
end insertbegin insertThis bill would require the commission to convene, or continue, until January 1, 2025, an independent peer review panel to conduct an independent review of enhanced seismic studies and surveys of the Diablo Canyon Units 1 and 2 powerplant, including the surrounding areas of the facility and areas of nuclear waste storage.
end insertbegin insertThis bill would declare that it is to take effect immediately as an urgency statute.
end insertExisting 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 and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance. Existing law regulates the manner in which a plan or insurer makes premium or coverage changes to a contract, including requiring prescribed notice to enrollees and insureds within a specified time period.
end deleteThis bill would make technical, nonsubstantive changes to these provisions.
end deleteVote: begin deletemajority end deletebegin insert2⁄3end 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:
begin insertSection 712 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
2to read:end insert
(a) The commission shall convene, or continue, until
4January 1, 2025, an independent peer review panel to conduct an
5independent review of enhanced seismic studies and surveys of
6the Diablo Canyon Units 1 and 2 powerplant, including the
7surrounding areas of the facility and areas of nuclear waste
8storage.
9(b) The independent peer review panel shall contract with the
10Energy Commission, the California Geological Survey of the
11Department of Conservation, the California Coastal Commission,
12the Alfred E. Alquist Seismic Safety Commission, the Office of
13Emergency Services, and the County of San Luis Obispo to
14participate on the panel and provide expertise.
15(c) The independent peer
review panel shall review the seismic
16studies and hold public meetings.
P3 1(d) The commission shall make reports by the independent peer
2review panel publicly available on the Internet Web site maintained
3by the commission.
This act is an urgency statute necessary for the
5immediate preservation of the public peace, health, or safety within
6the meaning of Article IV of the Constitution and shall go into
7immediate effect. The facts constituting the necessity are:
8The Public Utilities Commission in Decision 10-08-003 (August
912, 2010) convened an independent peer review panel to review
10the seismic studies conducted on behalf of Pacific Gas and Electric
11Company relative to the Diablo Canyon Units 1 and 2 powerplant.
12The independent peer review panel, in addition to providing
13
valuable expertise to the commission in evaluating the seismic
14studies, also operates to assure the public that the seismic studies
15are being performed in an appropriate manner. Because the
16commission’s current contracts for the independent peer review
17panel are set to expire on November 30, 2015, the Diablo Canyon
18Units 1 and 2 powerplant is authorized to operate until January
191, 2025, by the federal Nuclear Regulatory Commission, and there
20continues to be enhanced seismic studies and surveys conducted
21that warrant review by the independent peer review panel to ensure
22the safety of the public, it is necessary that this act take effect
23immediately.
Section 1374.21 of the Health and Safety Code
25 is amended to read:
(a) A change in premium rates or changes in coverage
27stated in a group health care service plan contract shall not become
28effective unless the plan has delivered in writing a notice indicating
29the change or changes at least 60 days prior to the contract renewal
30effective date.
31(b) A health care service plan that declines to offer coverage to
32or denies enrollment for a large group applying for coverage shall,
33at the time of the denial of coverage, provide the
applicant with
34the specific reason or reasons for the decision in writing, in clear,
35easily understandable language.
Section 10199.1 of the Insurance Code is amended to
37read:
(a) An insurer or nonprofit hospital service plan or
39administrator acting on its behalf shall not terminate a group master
40policy or contract providing hospital, medical, or surgical benefits,
P4 1increase premiums or charges therefor, reduce or eliminate benefits
2thereunder, or restrict eligibility for coverage thereunder without
3providing prior notice of that action.
The
action shall not become
4effective unless written notice of the action was delivered by mail
5to the last known address of the appropriate insurance producer
6and the appropriate administrator, if any, at least 45 days prior to
7the effective date of the action and to the last known address of
8the group policyholder or group contractholder at least 60 days
9prior to the effective date of the action. If nonemployee certificate
10holders or employees of more than one employer are covered under
11the policy or contract, written notice shall also be delivered by
12mail to the last known address of each nonemployee certificate
13holder or affected employer or, if the action does not affect all
14employees and dependents of one or more employers, to the last
15known address of each affected employee certificate holder, at
16least 60 days prior to the effective date of the action.
17(b) A holder of a master group policy or a master group
18nonprofit hospital service plan contract or administrator acting on
19its behalf shall not terminate the coverage of, increase premiums
20or charges for, or reduce or eliminate benefits available to, or
21restrict eligibility for coverage of a covered person, employer unit,
22or class of certificate holders covered under the policy or contract
23for hospital, medical, or surgical benefits without first providing
24prior notice of the action.
The action shall not become effective
25unless written notice was delivered by mail to the last known
26address of each affected nonemployee certificate holder or
27employer, or if the action does not affect all employees and
28dependents of one or more employers, to the last known address
29of each affected employee certificate holder, at least 60 days prior
30to the effective date of the action.
31(c) A health insurer that declines to offer coverage to or denies
32enrollment for a large group applying for coverage shall, at the
33time of the denial of coverage, provide the applicant with the
34specific reason or reasons for the decision in writing, in clear,
35easily understandable language.
O
98