BILL NUMBER: AB 1059 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Migden FEBRUARY 27, 1997 An act to add Section 1374.58 to the Health and Safety Code, and to add Section 10121.7 to the Insurance Code, relating to health coverage. LEGISLATIVE COUNSEL'S DIGEST AB 1059, as introduced, Migden. Health coverage: domestic partners. (1) Existing law provides for the licensure and regulation of health care service plans administered by the Commissioner of Corporations. Under existing law, a willful violation of any of these provisions is punishable as either a felony or a misdemeanor. Existing law also provides for the regulation of policies of disability insurance and self-insured employee welfare benefit plans administered by the Insurance Commissioner. Existing law requires that health care service plans, disability insurers, and self-insured employee welfare benefit plans provide coverage for certain benefits and services. This bill would require a group health care service plan and a policy of disability insurance that provides hospital, medical, or surgical expense benefits for employees, subscribers, insureds, or policyholders and their dependents to provide eligibility and benefits to a domestic partner, as defined, of an employee, subscriber, insured, or policyholder to the same extent as provided to a dependent of an employee, subscriber, insured, or policyholder. The bill would also require a health care service plan, a policy of group disability insurance, or a self-insured employee welfare benefit plan that provides hospital, medical, or surgical expense benefits for employees, subscribers, insureds, or policyholders and their dependents to enroll as a dependent, upon application by the employer or group administrator, a domestic partner of the employee, subscriber, insured, or policyholder when that employee, subscriber, insured, or policyholder at any time makes an application for enrollment to the employer or group administrator. Since a willful violation of the provisions applicable to health care service plans is a crime, this bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1374.58 is added to the Health and Safety Code, to read: 1374.58. (a) A group health care service plan that provides hospital, medical, or surgical expense benefits for employees or subscribers and their dependents shall provide eligibility or benefits to the domestic partner of an employee or subscriber to the same extent as provided to a dependent of the employee or subscriber. (b) A health care service plan that provides hospital, medical, or surgical expense benefits for employees or subscribers and their dependents shall enroll as a dependent, upon application by the employer or group administrator, a domestic partner of an employee or subscriber, at any time the employee or subscriber makes an application for enrollment to the employer or group administrator. (c) For purposes of this section, the following definitions apply: (1) "Domestic partner" means an adult who has chosen to share in another's life in an intimate and committed relationship of mutual caring. A domestic partnership shall be established when all of the following requirements are met: (A) Both persons have a common residence. (B) Both persons agree to be jointly responsible for each other's basic living expenses during the domestic partnership. (C) Neither person is married or a member of another domestic partnership. (D) The two persons are not related by blood in a way that would prevent them from being married to each other in this state. (E) Both persons are at least 18 years of age. (2) "Have a common residence" means that two people share the same place to live. It is not necessary that the legal right to possess the place be in both of their names. Two people may live together even if one or both have additional places to live. Domestic partners do not cease to live together if one leaves the shared place but intends to return. (3) "Basic living expenses" means basic food and shelter. It also means any other cost, such as medical care, if some or all of the cost is paid as a benefit because a person is another person's domestic partner. (4) "Joint responsibility" means that each partner agrees to provide for the other partner's basic living expenses if the partner is unable to provide for herself or himself. Anyone to whom these expenses are owed can enforce this responsibility. SEC. 2. Section 10121.7 is added to the Insurance Code, to read: 10121.7. (a) A policy of group disability insurance that provides hospital, medical, or surgical expense benefits for employees, insureds, or policyholders and their dependents shall provide eligibility and benefits to the domestic partner of an employee, insured, or policyholder to the same extent as provided to a dependent of the employee, insured, or policyholder. (b) Each policy of group disability insurance that provides hospital, medical, or surgical expense benefits for employees, insureds, or policyholders and their dependents shall enroll as a dependent, upon application by the employer or group administrator, a domestic partner of the employee, insured, or policyholder when that employee, insured, or policyholder at any time makes an application for enrollment to the employer or group administrator. (c) For purposes of this section, the following definitions apply: (1) "Domestic partner" means an adult who has chosen to share in another's life in an intimate and committed relationship of mutual caring. A domestic partnership shall be established when all of the following requirements are met: (A) Both persons have a common residence. (B) Both persons agree to be jointly responsible for each other's basic living expenses during the domestic partnership. (C) Neither person is married or a member of another domestic partnership. (D) The two persons are not related by blood in a way that would prevent them from being married to each other in this state. (E) Both persons are at least 18 years of age. (2) "Have a common residence" means that two people share the same place to live. It is not necessary that the legal right to possess the place be in both of their names. Two people may live together even if one or both have additional places to live. Domestic partners do not cease to live together if one leaves the shared place but intends to return. (3) "Basic living expenses" means basic food and shelter. It also means any other cost, such as medical care, if some or all of the cost is paid as a benefit because a person is another person's domestic partner. (4) "Joint responsibility" means that each partner agrees to provide for the other partner's basic living expenses if the partner is unable to provide for herself or himself. Anyone to whom these expenses are owed can enforce this responsibility. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.