BILL NUMBER: SB 657 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 21, 2015
INTRODUCED BY Senator Monning
( Coauthor: Senator Jackson
)
FEBRUARY 27, 2015
An act to amend Section 1374.21 of the Health and Safety
Code, and to amend Section 10199.1 of the Insurance Code, relating to
health care coverage. add Section 712 to the Public
Utilities Code, relating to electricity , and declaring
the urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 657, as amended, Monning. Health coverage: contracts.
Diablo Canyon Units 1 and 2: enhanced seismic studies
and review: independent peer review panel.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Existing law authorizes the commission to fix the rates and charges
for every public utility, and requires that those rates and charges
be just and reasonable. Existing law requires the commission, for
purposes of establishing rates for any electrical corporation, to
disallow expenses reflecting the direct or indirect costs resulting
from any unreasonable error or omission relating to the planning,
construction, or operation of any portion of the corporation's plant
which cost, or is estimated to have cost, more than $50,000,000,
including any expenses resulting from delays caused by any
unreasonable error or omission. For these purposes, "planning"
includes activities related to the initial and subsequent assessments
of the need for a plant construction project and includes
investigation and interpretation of environmental factors such as
seismic conditions.
This bill would require the commission to convene, or continue,
until January 1, 2025, an independent peer review panel to conduct an
independent review of enhanced seismic studies and surveys of the
Diablo Canyon Units 1 and 2 powerplant, including the surrounding
areas of the facility and areas of nuclear waste storage.
This bill would declare that it is to take effect immediately as
an urgency statute.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans by the Department of Managed Health Care and makes a willful
violation of the act a crime. Existing law also provides for the
regulation of health insurers by the Department of Insurance.
Existing law regulates the manner in which a plan or insurer makes
premium or coverage changes to a contract, including requiring
prescribed notice to enrollees and insureds within a specified time
period.
This bill would make technical, nonsubstantive changes to these
provisions.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 712 is added to the
Public Utilities Code , to read:
712. (a) The commission shall convene, or continue, until January
1, 2025, an independent peer review panel to conduct an independent
review of enhanced seismic studies and surveys of the Diablo Canyon
Units 1 and 2 powerplant, including the surrounding areas of the
facility and areas of nuclear waste storage.
(b) The independent peer review panel shall contract with the
Energy Commission, the California Geological Survey of the Department
of Conservation, the California Coastal Commission, the Alfred E.
Alquist Seismic Safety Commission, the Office of Emergency Services,
and the County of San Luis Obispo to participate on the panel and
provide expertise.
(c) The independent peer review panel shall review the seismic
studies and hold public meetings.
(d) The commission shall make reports by the independent peer
review panel publicly available on the Internet Web site maintained
by the commission.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
The Public Utilities Commission in Decision 10-08-003 (August 12,
2010) convened an independent peer review panel to review the seismic
studies conducted on behalf of Pacific Gas and Electric Company
relative to the Diablo Canyon Units 1 and 2 powerplant. The
independent peer review panel, in addition to providing valuable
expertise to the commission in evaluating the seismic studies, also
operates to assure the public that the seismic studies are being
performed in an appropriate manner. Because the commission's current
contracts for the independent peer review panel are set to expire on
November 30, 2015, the Diablo Canyon Units 1 and 2 powerplant is
authorized to operate until January 1, 2025, by the federal Nuclear
Regulatory Commission, and there continues to be enhanced seismic
studies and surveys conducted that warrant review by the independent
peer review panel to ensure the safety of the public, it is necessary
that this act take effect immediately.
SECTION 1. Section 1374.21 of the Health and
Safety Code is amended to read:
1374.21. (a) A change in premium rates or changes in coverage
stated in a group health care service plan contract shall not become
effective unless the plan has delivered in writing a notice
indicating the change or changes at least 60 days prior to the
contract renewal effective date.
(b) A health care service plan that declines to offer coverage to
or denies enrollment for a large group applying for coverage shall,
at the time of the denial of coverage, provide the applicant with the
specific reason or reasons for the decision in writing, in clear,
easily understandable language.
SEC. 2. Section 10199.1 of the Insurance Code
is amended to read:
10199.1. (a) An insurer or nonprofit hospital service plan or
administrator acting on its behalf shall not terminate a group master
policy or contract providing hospital, medical, or surgical
benefits, increase premiums or charges therefor, reduce or eliminate
benefits thereunder, or restrict eligibility for coverage thereunder
without providing prior notice of that action. The action shall not
become effective unless written notice of the action was delivered by
mail to the last known address of the appropriate insurance producer
and the appropriate administrator, if any, at least 45 days prior to
the effective date of the action and to the last known address of
the group policyholder or group contractholder at least 60 days prior
to the effective date of the action. If nonemployee certificate
holders or employees of more than one employer are covered under the
policy or contract, written notice shall also be delivered by mail to
the last known address of each nonemployee certificate holder or
affected employer or, if the action does not affect all employees and
dependents of one or more employers, to the last known address of
each affected employee certificate holder, at least 60 days prior to
the effective date of the action.
(b) A holder of a master group policy or a master group nonprofit
hospital service plan contract or administrator acting on its behalf
shall not terminate the coverage of, increase premiums or charges
for, or reduce or eliminate benefits available to, or restrict
eligibility for coverage of a covered person, employer unit, or class
of certificate holders covered under the policy or contract for
hospital, medical, or surgical benefits without first providing prior
notice of the action. The action shall not become effective unless
written notice was delivered by mail to the last known address of
each affected nonemployee certificate holder or employer, or if the
action does not affect all employees and dependents of one or more
employers, to the last known address of each affected employee
certificate holder, at least 60 days prior to the effective date of
the action.
(c) A health insurer that declines to offer coverage to or denies
enrollment for a large group applying for coverage shall, at the time
of the denial of coverage, provide the applicant with the specific
reason or reasons for the decision in writing, in clear, easily
understandable language.