BILL NUMBER: AB 564	CHAPTERED
	BILL TEXT

	CHAPTER   139
	FILED WITH SECRETARY OF STATE   JULY 28, 1997
	APPROVED BY GOVERNOR   JULY 27, 1997
	PASSED THE ASSEMBLY   JULY 11, 1997
	PASSED THE SENATE   JULY 3, 1997
	AMENDED IN SENATE   JUNE 18, 1997
	AMENDED IN ASSEMBLY   MAY 19, 1997
	AMENDED IN ASSEMBLY   MAY 13, 1997
	AMENDED IN ASSEMBLY   MAY 1, 1997
	AMENDED IN ASSEMBLY   APRIL 3, 1997

INTRODUCED BY  Assembly Member McClintock

                        FEBRUARY 25, 1997

   An act to add Section 43.98 to the Civil Code, relating to health
care service plans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 564, McClintock.  Health care service plans:  enforcement.
   Existing law prohibits the imposition of monetary liability on the
part of professional societies and members of peer review committees
that review the quality of various professional health care services
for acts performed within the scope of the functions of peer review,
if that committee or member acts without malice, has made a
reasonable effort to obtain the facts, and acts in reasonable belief
that his or her action is warranted.
   This bill would provide that, except as specified, no cause of
action shall arise against any consultant on account of the
communication by that consultant when that communication is to
specified persons for the purpose of determining whether health care
services have been or are being arranged or provided in accordance
with provisions of existing law, known as the Knox-Keene Health Care
Service Plan Act of 1975, or regulations adopted thereunder, and the
consultant acts in accordance with prescribed criteria.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 43.98 is added to the Civil Code, to read:
   43.98.  (a) There shall be no monetary liability on the part of,
and no cause of action shall arise against, any consultant on account
of any communication by that consultant to the Commissioner of
Corporations or any other officer, employee, agent, contractor, or
consultant of the Department of Corporations, when that communication
is for the purpose of determining whether health care services have
been or are being arranged or provided in accordance with the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code) and any regulation adopted thereunder and the consultant does
all of the following:
   (1) Acts without malice.
   (2) Makes a reasonable effort to obtain the facts of the matter
communicated.
   (3) Acts with a reasonable belief that the communication is
warranted by the facts actually known to the consultant after a
reasonable effort to obtain the facts.
   (4) Acts pursuant to a contract entered into on or after January
1, 1998, between the Commissioner of Corporations and a state
licensing board or committee, including, but not limited to, the
Medical Board of California, or pursuant to a contract entered into
on or after January 1, 1998, with the Commissioner of Corporations
pursuant to Section 1397.6 of the Health and Safety Code.
   (b) The immunities afforded by this section shall not affect the
availability of any other privilege or immunity which may be afforded
under this part.  Nothing in this section shall be construed to
alter the laws regarding the confidentiality of medical records.