BILL NUMBER: SB 757 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 28, 2011
AMENDED IN SENATE MARCH 23, 2011
INTRODUCED BY Senator Lieu
FEBRUARY 18, 2011
An act to amend Section 1374.58 of, and to add Section
1367.003 to, ad d Section 1367.30 to
the Health and Safety Code, and to amend Sections 381.5 and
10121.7 of, and to add Section 49 to, Section 10112.5
of the Insurance Code, relating to discrimination.
LEGISLATIVE COUNSEL'S DIGEST
SB 757, as amended, Lieu. Discrimination.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans and makes a willful violation of its provisions a crime.
Existing law also provides for the regulation of health insurers and
all other forms of insurance by the Department of Insurance. Existing
law requires a health care service plan and a health insurer to
provide group coverage to the registered domestic partner
of an employee, subscriber, insured, or policyholder that is equal to
the coverage it provides to the spouse of those persons.
Existing law extends that requirement to all other forms of insurance
regulated by the Department of Insurance and provides that all of
those policies are deemed to require coverage for registered domestic
partners that is equal to the coverage provided to a spouse.
Existing law provides that a policy or certificate of health
insurance marketed, issued, or delivered to a California resident,
regardless of the situs of the contract or master group policyholder,
is generally subject to California insurance law, except for a
policy issued outside of California to an employer whose principal
place of business and majority of employees are located outside of
California.
This bill would provide that any every
group health care service plan contract ,
and every group health insurance policy , or any
other insurance policy that is issued to or
intended to cover any person residing in this state shall be deemed
to provide coverage for registered domestic partners that is equal to
the coverage provided to a spouse. The bill would require that every
health care service plan contract, health insurance policy, or any
other insurance policy that is issued to or intended to cover any
person residing in this state shall comply with all nondiscrimination
requirements set forth in state law marketed, issued,
or delivered to a California resident is subject to the requirements
to provide equal coverage to domestic partners as is provided to
spouses, notwithstanding any other provision of law .
Because a willful violation of these provisions by a health care
service plan would be a crime, the bill would impose a state-mandated
local program.
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 1367.30 is added to the
Health and Safety Code , to read:
1367.30. Notwithstanding any other provision of law, every group
health care service plan contract marketed, issued, or delivered to a
resident of this state, regardless of the situs of the contract or
the subscriber, shall be subject to Section 1374.58.
SEC. 2. Section 10112.5 of the
Insurance Code is amended to read:
10112.5. (a) (1) Notwithstanding any other
provision of law, every policy or certificate of disability
health insurance covering hospital,
medical, or surgical expenses marketed, issued, or
delivered to a resident of this state, regardless of the situs of the
contract or master group policyholder, shall be subject to all
provisions of this code.
(b) Subdivision (a)
(2) Paragraph (1) shall not apply
to a policy or certific ate of
disability health insurance that covers
hospital, medical, or surgical expenses and that is issued
outside of California to an employer whose principle
principal place of business and majority of
employees are located outside of California.
(c)
(3) Nothing in subdivision (b)
paragraph (2) shall be construed to limit the applicability of
any other provision of this code to any policy or certificate
of disability health insurance
that covers hospital, medical, or surgical expenses and
that is issued outside of California to an employer whose
principle principal place of business
and majority of employees are located outside of California.
(b) Notwithstanding any other provision of law, every policy or
certificate of group health insurance marketed, issued, or delivered
to a resident of this state, regardless of the situs of the contract
or master group policyholder, shall be subject to Section 10121.7.
SECTION 1. Section 1367.003 is added to the
Health and Safety Code, to read:
1367.003. Every health care service plan contract and specialized
health care service plan contract that is issued to or intended to
cover any person residing in this state shall comply with all
nondiscrimination requirements set forth in this code.
SEC. 2. Section 1374.58 of the Health and
Safety Code is amended to read:
1374.58. (a) A group health care service plan that provides
hospital, medical, or surgical expense benefits shall provide equal
coverage to employers or guaranteed associations, as defined in
Section 1357, for the registered domestic partner of an employee or
subscriber to the same extent, and subject to the same terms and
conditions, as provided to a spouse of the employee or subscriber,
and shall inform employers and guaranteed associations of this
coverage. A plan may not offer or provide coverage for a registered
domestic partner that is not equal to the coverage provided to the
spouse of an employee or subscriber.
(b) If an employer or guaranteed association has purchased
coverage for spouses and registered domestic partners pursuant to
subdivision (a), a health care service plan that provides hospital,
medical, or surgical expense benefits for employees or subscribers
and their spouses shall enroll, upon application by the employer or
group administrator, a registered domestic partner of an employee or
subscriber in accordance with the terms and conditions of the group
contract that apply generally to all spouses under the plan,
including coordination of benefits.
(c) For purposes of this section, the term "domestic partner"
shall have the same meaning as that term is used in Section 297 of
the Family Code.
(d) (1) A health care service plan may require that the employee
or subscriber verify the status of the domestic partnership by
providing to the plan a copy of a valid Declaration of Domestic
Partnership filed with the Secretary of State pursuant to Section 298
of the Family Code or an equivalent document issued by a local
agency of this state, another state, or a local agency of another
state under which the partnership was created. The plan may also
require that the employee or subscriber notify the plan upon the
termination of the domestic partnership.
(2) Notwithstanding paragraph (1), a health care service plan may
require the information described in that paragraph only if it also
requests from the employee or subscriber whose spouse is provided
coverage, verification of marital status and notification of
dissolution of the marriage.
(e) Nothing in this section shall be construed to expand the
requirements of Section 4980B of Title 26 of the United States Code,
Section 1161, and following, of Title 29 of the United States Code,
or Section 300bb-1, and following, of Title 42 of the United States
Code, as added by the Consolidated Omnibus Budget Reconciliation Act
of 1985 (Public Law 99-272), and as those provisions may be later
amended.
(f) A plan contract subject to this section that is issued,
amended, delivered, or renewed in this state on or after January 2,
2005, and any plan contract that is issued to or intended to cover
any person residing in this state, shall be deemed to provide
coverage for registered domestic partners that is equal to the
coverage provided to a spouse of an employee or subscriber.
SEC. 3. Section 49 is added to the Insurance
Code, to read:
49. Every insurance policy that is issued to or intended to cover
any person residing in this state shall comply with all
nondiscrimination requirements set forth in this code.
SEC. 4. Section 381.5 of the Insurance Code is
amended to read:
381.5. (a) Every policy issued, amended, delivered, or renewed in
this state shall provide coverage for the registered domestic
partner of an insured or policyholder that is equal to, and subject
to the same terms and conditions as, the coverage provided to a
spouse of an insured or policyholder. A policy may not offer or
provide coverage for a registered domestic partner if it is not equal
to the coverage provided for the spouse of an insured or
policyholder. This subdivision applies to all forms of insurance
regulated by this code.
(b) A policy subject to this section that is issued, amended,
delivered, or renewed in this state on or after January 1, 2005, and
any policy that is issued to or intended to cover any person residing
in this state, shall be deemed to provide coverage for registered
domestic partners that is equal to the coverage provided to a spouse
of an insured or policyholder.
(c) It is the intent of the Legislature that, for purposes of this
section, "terms," "conditions," and "coverage" do not include
instances of differential treatment of domestic partners and spouses
under federal law.
SEC. 5. Section 10121.7 of the Insurance Code
is amended to read:
10121.7. (a) A policy of group health insurance that provides
hospital, medical, or surgical expense benefits shall provide equal
coverage to employers or guaranteed associations, as defined in
Section 10700, for the registered domestic partner of an employee,
insured, or policyholder to the same extent, and subject to the same
terms and conditions, as provided to a spouse of the employee,
insured, or policyholder, and shall inform employers and guaranteed
associations of this coverage. A policy may not offer or provide
coverage for a registered domestic partner that is not equal to the
coverage provided to the spouse of an employee, insured, or
policyholder.
(b) If an employer or guaranteed association has purchased
coverage for spouses and registered domestic partners pursuant to
subdivision (a), a health insurer that provides hospital, medical, or
surgical expense benefits for employees, insureds, or policyholders
and their spouses shall enroll, upon application by the employer or
group administrator, a registered domestic partner of the employee,
insured, or policyholder in accordance with the terms and conditions
of the group contract that apply generally to all spouses under the
policy, including coordination of benefits.
(c) For purposes of this section, the term "domestic partner"
shall have the same meaning as that term is used in Section 297 of
the Family Code.
(d) (1) A policy of group health insurance may require that the
employee, insured, or policyholder verify the status of the domestic
partnership by providing to the insurer a copy of a valid Declaration
of Domestic Partnership filed with the Secretary of State pursuant
to Section 298 of the Family Code or an equivalent document issued by
a local agency of this state, another state, or a local agency of
another state under which the partnership was created. The policy may
also require that the employee, insured, or policyholder notify the
insurer upon the termination of the domestic partnership.
(2) Notwithstanding paragraph (1), a policy may require the
information described in that paragraph only if it also requests from
the employee, insured, or policyholder whose spouse is provided
coverage, verification of marital status and notification of
dissolution of the marriage.
(e) Nothing in this section shall be construed to expand the
requirements of Section 4980B of Title 26 of the United States Code,
Section 1161, and following, of Title 29 of the United States Code,
or Section 300bb-1, and following, of Title 42 of the United States
Code, as added by the Consolidated Omnibus Budget Reconciliation Act
of 1985 (Public Law 99-272), and as those provisions may be later
amended.
(f) A group health insurance policy subject to this section that
is issued, amended, delivered, or renewed in this state on or after
January 2, 2005, and any group health insurance policy that is issued
to or intended to cover any person residing in this state, shall be
deemed to provide coverage for registered domestic partners that is
equal to the coverage provided to a spouse of an employee, insured,
or policyholder.
SEC. 6. SEC. 3. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B 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 XIII
B of the California Constitution.