BILL NUMBER: AB 2589	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2008
	AMENDED IN ASSEMBLY  APRIL 9, 2008

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 22, 2008

   An act to add Section 1367.08 to the Health and Safety Code, and
to add Section 10604.5 to the Insurance Code, relating to health
care.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2589, as amended, Solorio. Health care coverage: public
agencies.
   The Knox-Keene Health Care Service Plan Act of 1974, the willful
violation of which is a crime, provides for the licensing and
regulation of health care service plans by the Department of Managed
Health Care. Existing law provides for the regulation of health
insurers by the Department of Insurance. Under existing law, health
care service plans and health insurers are required to make certain
disclosures to enrollees and insureds. Existing law also provides for
the licensing and regulation of insurance agents and brokers.
   This bill would require a health care service plan or a health
insurer to annually disclose to the governing board of a public
agency that is the subscriber of a group contract or the policyholder
of a group health insurance policy specified information, including
any fees or commissions paid to any agent, broker, or other
individual  related to the public entity's contract or policy
 . Because the bill would create a new requirement under the
Knox-Keene Health Care Service Plan Act of 1974, the willful
violation of which would be a crime, it 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 1367.08 is added to the Health and Safety Code,
to read:
   1367.08.  A health care service plan shall annually disclose to
the governing board of a public agency that is the subscriber of a
group contract, the name and address of, and amount paid to, any
agent, broker, or individual to whom the plan paid fees or
commissions  related to the public entity's group contract 
.
  SEC. 2.  Section 10604.5 is added to the Insurance Code, to read:
   10604.5.  An insurer shall annually disclose to the governing
board of a public agency that is the policyholder of a group 
health  insurance policy, the name and address of, and amount
paid to, any agent, broker, or individual to whom the insurer paid
fees or commissions  related to the public entity's group health
insurance policy  .
  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.