BILL NUMBER: AB 2019 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Hill
FEBRUARY 23, 2012
An act to amend Sections 1527.6 and 1527.8 of , and to
add Section 1527.15 to, the Health and Safety Code,
and to amend Section 676.7 of the Insurance Code, relating to
the Foster Family Home and Small Family Home Insurance Fund.
LEGISLATIVE COUNSEL'S DIGEST
AB 2019, as amended, Hill. Foster Family Home and Small Family
Home Insurance Fund.
Existing law establishes within the State Department of Social
Services the Foster Family Home and Small Family Home Insurance Fund,
consisting of moneys appropriated by the Legislature, for the
purposes of paying, on behalf of foster family homes and small family
homes, as defined, claims of foster children, their parents,
guardians, or guardians ad litem resulting from occurrences peculiar
to the foster care relationship and the provision of foster care
services. Existing law requires the department to approve or reject a
claim within 180 days after it is presented
presented and requires the department, or a designated agency, to
notify the claimant of its decision .
This bill would require that any claim not approved or
rejected within 180 days be deemed approved. The bill would require
the department or its designated agency to ensure that a claimant
receives notification of the decision to approve or reject a claim
within 15 days of the decision provide that any
applicable statute of limitations for a cause of action that arises
from the same occurrence for which a claim has been filed with the
fund shall not commence until the person has been notified that his
or her claim with the fund has been approved or rejected .
Existing law states the intent of the Legislature to maintain the
Foster Family Home and Small Family Home Insurance Fund at an
adequate level to meet anticipated liabilities.
This bill would instead require that the fund be maintained at an
adequate level to meet anticipated liabilities. The bill
would require the department to use claims information to make
recommendations to the Legislature regarding the amount of funding
necessary to meet these purposes. This bill also would require the
department to report to the Legislature by January 1, 2015, on the
feasibility of expanding coverage of the fund, on a revenue-neutral
basis, to homes that are certified by foster family agencies.
Existing law prohibits an admitted insurer, as specified, from,
among other things, refusing to accept an application for, or
cancelling certain insurance policies solely on the basis that, an
applicant or policyholder is engaged in foster home activities in a
licensed foster family home or licensed small family home, as
defined.
This bill would also apply these provisions to a certified family
home, as defined.
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 1527.15 is added to the
Health and Safety Code, to read:
1527.15. (a) By January 1, 2015, the State Department of Social
Services shall report to the Legislature on the feasibility of
expanding coverage of the fund, on a revenue-neutral basis, to homes
that are certified by a foster family agency, as defined in paragraph
(4) of subdivision (a) of Section 1502.
(b) (1) The report required pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
(2) The requirement for submitting a report imposed under
subdivision (a) is inoperative on January 1, 2017, pursuant to
Section 10231.5 of the Government Code.
SEC. 2. SECTION 1. Section 1527.6 of
the Health and Safety Code is amended to read:
1527.6. (a) Any A claim against the
fund shall be filed with the fund in accordance with claims
procedures and on forms prescribed by the State Department of Social
Services or its designated contract agency.
(b) Any A claim against the fund
filed by a foster parent or a third party shall be submitted to the
fund within the applicable period of limitations for the appropriate
civil action underlying the claim, subject to subdivision (a) of
Section 352 of the Code of Civil Procedure as that section applies to
a minor. If a claim is not submitted to the fund within the
applicable time, there shall be no recourse against the fund.
(c) (1) The department shall approve or reject a claim within 180
days after it is presented. If a claim is not approved or
rejected within 180 days, the claim shall be deemed approved.
(2) The department or an agency designated pursuant to Section
1527.1 shall notify a claimant of the decision to approve or reject a
claim within 15 days of the decision.
(3) An agency designated pursuant to Section 1527.1 shall provide
claims information to the department. The department shall use this
information to make annual recommendations to the Legislature
regarding the necessary amount of funding to meet the requirements of
Section 1527.8.
(d) (1) No A
person may not bring a civil action against a foster
parent for which the fund is liable unless that person has first
filed a claim against the fund and the claim has been rejected, or
the claim has been filed, approved, and paid, and damages in excess
of the payment are claimed.
(2) An applicable statute of limitations for a cause of action
that arises out of the same occurrence for which a claim has been
filed with the fund shall not commence until the date the department,
or an agency designated pursuant to Section 1527.1, has notified the
person that the department has either rejected or approved the
claim.
SEC. 3. SEC. 2. Section 1527.8 of
the Health and Safety Code is amended to read:
1527.8. The fund established pursuant to Section 1527.1 shall be
maintained at an adequate level to meet anticipated liabilities.
SEC. 3. Section 676.7 of the Insurance
Code is amended to read:
676.7. (a) No admitted insurer, licensed to issue and issuing
homeowner's or tenant's policies, as described in Section 122, shall
(1) fail or refuse to accept an application for that insurance or to
issue that insurance to an applicant or (2) cancel that insurance,
solely on the basis that the applicant or policyholder is engaged in
foster home activities in a licensed foster family home or licensed
small family home, as defined in Section 1502 of the Health and
Safety Code Code, or a certified family home,
as defined in Section 1506 of the Health and Safety Code .
(b) Coverage under policies described in subdivision (a) with
respect to a foster child shall be the same as that provided for a
natural child. However, unless specifically provided in the policy,
there shall be no coverage expressly provided in the policy for any
bodily injury arising out of the operation or use of any motor
vehicle, aircraft, or watercraft owned or operated by, or rented or
loaned to, any foster parent.
(c) It is against public policy for a policy of homeowner's or
tenant's insurance subject to this section to provide liability
coverage for any of the following losses:
(1) Claims of a foster child, or a parent, guardian, or guardian
ad litem thereof, of a type payable by the Foster Family Home and
Small Family Home Insurance Fund established by Section 1527.1 of the
Health and Safety Code, regardless of whether the claim is within
the limits of coverage specified in Section 1527.4 of the Health and
Safety Code.
(2) An insurer shall not be liable, under a policy of insurance
subject to this section, to any governmental agency for damage
arising from occurrences peculiar to the foster-care relationship and
the provision of foster-care services.
(3) Alienation of affection of a foster child.
(4) Any loss arising out of licentious, immoral, or sexual
behavior on the part of a foster parent intended to lead to, or
culminating in, any sexual act.
(5) Any loss arising out of a dishonest, fraudulent, criminal, or
intentional act.
(d) There shall be no penalty for violations of this section prior
to January 1, 1987.
(e) Insurers may provide a special endorsement to a homeowners' or
tenants' policy covering claims related to foster care that are not
excluded by subdivision (c).
(f) Insurers may provide by a separate policy for some or all of
the claims related to foster care that are excluded by subdivision
(c).