BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1256
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1256 (Mitchell) - As Amended:  June 25, 2014

          Policy Committee:                             Business and  
          Professions  Vote:                            14-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill extends existing consumer protections regarding lines  
          of credit for dental services to all types of medical or healing  
          arts services, by requiring a licensee to provide a patient with  
          a treatment plan, a disclosure form, and information about  
          third-party payment coverage, and also establishes language and  
          competency requirements.

           FISCAL EFFECT  

          Minor and absorbable costs to health-related boards within the  
          Department of Consumer Affairs (DCA). The DCA states violation  
          of the provisions could be considered grounds for unprofessional  
          conduct, so boards would need to be aware of the requirements,  
          but it should not result in significant costs.

           COMMENTS  

           1)Purpose  . The author indicates this bill will allow consumers  
            to make better-informed financial decisions.  The author  
            indicates patients, primarily elderly, low-income or limited  
            English-speaking, who thought they had signed a payment plan  
            with their provider, later come to realize they have signed up  
            for credit cards or loans they cannot afford.  The significant  
            risks created by deferred interest credit cards in connection  
            to medical services make it essential that consumers fully  
            understand the arrangements they make with their medical  
            providers. This bill is sponsored by the Consumer Federation  
            of California.   

           2)Enforcement  .  In addition to potential enforcement by  








                                                                  SB 1256
                                                                  Page  2

            licensing boards, this bill may be enforced through the  
            Consumer Legal Remedies Act, which declares, in part, that a  
            consumer that suffers damage as a result of unlawful business  
            practices may bring a suit to recover actual damages, an order  
            for the offender to stop the unlawful act, restitution,  
            punitive damages, and any other relief the court deems proper.  
               


           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081