Property & casualty insurance

Existing law generally requires employers to secure the payment of workers’ compensation, including medical treatment, for injuries incurred by their employees that arise out of, or in the course of, employment. Existing law generally prohibits aggregate disability payments for a single injury occurring on or after January 1, 2008, causing temporary disability from extending for more than 104 compensable weeks within a period of 5 years from the date of injury. Under existing law, if an employee suffers from specified injuries or conditions, aggregate disability payments for a single injury occurring on or after April 19, 2004, causing temporary disability are prohibited from extending for more than 240 compensable weeks within a period of 5 years from the date of injury. This bill would add an injury or condition occurring on or after January 1, 2012, where surgery or recovery from surgery occurs after 104 weeks of temporary disability benefits have been paid, provided that specified conditions are met, to the injuries or conditions for which aggregate disability payments for a single injury causing temporary disability are prohibited from extending for more than 240 compensable weeks within a period of 5 years. Hide

The Political Reform Act of 1974 regulates mass mailings, known as slate mailers, that support or oppose multiple candidates or ballot measures for an election. The act requires that each slate mailer identify the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures that is sending the slate mailer, and to contain other specified information in specified formatting. The act requires that each candidate and each ballot measure that has paid to appear in the slate mailer be designated by an asterisk. This bill would instead require that a candidate or ballot measure appearing in the slate mailer be designated by an asterisk if the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures that is sending the slate mailer has received payment to include the candidate or ballot measure in the slate mailer. The bill would also recast the language of the prescribed notice to voters that must be included on a slate mailer. The act also regulates advertisements, which are defined as any general or public advertisement that is authorized and paid for by a person or committee for the purpose supporting or opposing a candidate for elective office or a ballot measure or ballot measures. The act places certain disclosure requirements on advertisements for or against any ballot measure, including that the advertisement disclose any person who has made cumulative contributions of $50,000 or more, as prescribed. The act places more specific disclosure requirements on broadcast or mass mailing advertisements that are paid for by independent expenditures that support or oppose a candidate or ballot measure. This bill would repeal provisions relating to disclosures for advertisements paid for by an independent expenditure and required disclosures of persons who have made cumulative contributions of $50,000 or more. This bill would, instead, impose specified disclosure requirements on radio, television, and video advertisements, and certain mass mailing and print advertisements that support or oppose a candidate or ballot measure or solicit contributions in support of those purposes. The bill would require radio, television, and video advertisements that are authorized by a candidate or agent of the candidate to include a statement in which the candidate identifies himself or herself and states that he or she approves the message, as specified. The bill would require radio, television, video, and certain mass mailings and print advertisements that are not authorized by a candidate or an agent of the candidate to disclose, in a prescribed format, the 3 largest identifiable contributors, as defined, of the committee that paid for the advertisement. The bill would require mass mailings or print advertisements that are paid for by certain persons who are not committees to disclose the name of that person as the funder of the mass mailing or print advertisement. The bill would also require that certain committees establish and maintain a committee disclosure Internet Web site, as defined, which discloses the top 10 identifiable contributors and provides a link to either the Internet Web site maintained by the Secretary of State for campaign finance disclosures of the committee, or a page on the committee disclosure Internet Web site that discloses all identifiable contributors to that committee, as specified. The bill would require these advertisements to identify the address for the committee disclosure Internet Web site. Existing law makes a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor and subjects offenders to criminal penalties. This bill would impose a state-mandated local program by creating additional crimes. 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.The Political Reform Act of 1974, an initiative measure, provides that the act may be amended by a statute that becomes effective upon approval of the voters.This measure would call a special statewide election to be consolidated with the statewide general election scheduled for November 4, 2014. It would provide for the submission to the voters of the provisions of this bill amending the Political Reform Act of 1974, as summarized above, at that election.This bill would declare that it is to take effect immediately as an act calling an election. Hide

Existing law establishes various programs for the prevention of disease and the promotion of health, including, but not limited to, the licensing and regulation of health facilities to be administered by the State Department of Public Health. Existing law requires specified health facilities to report patient adverse events to the department within 5 days. A violation of these provisions is a misdemeanor. This bill would require the medical director and the director of nursing of a hospital to annually report adverse events and hospital acquired conditions to its governing board. By changing the definition of an existing crime, this bill would impose a state-mandated local program. Existing law provides for the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified low-income persons. This bill would require the State Department of Health Care Services to convene a technical working group to evaluate options for implementing nonpayment policies and practices for hospital acquired conditions for the Medi-Cal program, as specified. This bill would require the technical working group to provide the best options to the Director of Health Care Services, the Secretary of California Health and Human Services, and the Legislature by February 1, 2011. This bill would also require the department to implement nonpayment policies and procedures for hospital acquired conditions for the Medi-Cal program, as specified. Existing law imposes various functions and duties on the Managed Risk Medical Insurance Board with respect to the regulation and administration of various insurance programs, including the Healthy Families Program. This bill would require certain managed care plans contracting with the board to implement nonpayment policies and practices for hospital acquired conditions that are consistent with those adopted by the Medi-Cal program through their contracts with health care facilities, as defined. 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. Hide

Existing law provides that an injury of an employee arising out of and in the course of employment is generally compensable through the workers’ compensation system. Existing law provides that, in the case of certain public employees, the term “injury” includes heart trouble, hernia, pneumonia, human immunodeficiency virus, lower back impairment, and other injuries and diseases. This bill would provide, with respect to hospital employees who provide direct patient care in an acute care hospital, as defined, that the term “injury” includes a bloodborne infectious disease, as defined, or methicillin-resistant Staphylococcus aureus (MRSA) that develops or manifests itself during the period of the person’s employment with the hospital. This bill would further create a disputable presumption that the above injury arises out of and in the course of the person’s employment if it develops or manifests as specified. Hide

The federal Fair Credit Reporting Act (FCRA) and the state Consumer Credit Reporting Agencies Act define and regulate consumer credit reports and authorize the use of consumer credit reports for employment purposes, pursuant to specified requirements. The FCRA provides that it does not preempt state law, except as specifically provided or to the extent that state laws are inconsistent with its provisions. Existing federal and state law specify the procedures that an employer is required to follow before requesting a report and if adverse action is taken based on the report. Under existing law, an employer may request a credit report for employment purposes so long as he or she provides written notice of the request to the person for whom the report is sought. Existing law requires that the written notice inform the person for whom the consumer credit report was sought of the source of the report and contain space for the person to request a copy of the report. Existing law further requires an employer, whenever he or she bases an adverse employment decision on information contained in a consumer credit report, to advise the person for whom the report was sought that an adverse action was taken based upon information contained in the report and provide the person with the name and address of the consumer credit agency making the report. This bill would prohibit an employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information is (1) substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or trade secrets or other confidential information, and (2) the position of the person for whom the report is sought is a position in the state Department of Justice, a managerial position, that of a sworn peace officer or other law enforcement position, or a position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. Hide

Existing law authorizes certain counties to impose a local vehicle license fee not exceeding $10 per vehicle, as provided, for the privilege of operating specified vehicles on public roads in the county. Existing law requires a county imposing this fee to contract with the Department of Motor Vehicles to collect and administer the fee, as specified. This bill would authorize the City and County of San Francisco to impose a voter-approved local assessment for specified vehicles if certain conditions, including approval by local voters, are met. The bill would require the city and county to contract with the department to collect and administer the assessment, as provided. The Personal Income Tax Law and the Corporation Tax Law authorize various deductions against the income that is otherwise subject to tax under those laws, including a deduction for local taxes that were paid or incurred by a taxpayer. This bill would require the Franchise Tax Board to annually notify the department of estimated revenue losses to the state resulting from taxpayers deducting, for purposes of the Personal Income Tax Law and the Corporation Tax Law, the voter-approved local assessments authorized by this bill, as specified. This bill would require the department to transmit from the assessments collected an amount equal to these reported losses for deposit in the General Fund. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco. Hide

(1)Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of his or her employment. This bill would state the intent of the Legislature to prohibit the use of risk factors and specified characteristics to deny an injured worker his or her rightful benefit when disabled in the workplace. The bill would also state the intent of the Legislature to prohibit the apportionment of risk factors and characteristics without prohibiting the apportionment of documentable preexisting nonindustrial causes of disability or holding an employer liable for any percentage of permanent disability not directly caused by an injury arising out of and occurring in the course of employment. (2)Existing law requires any physician who prepares a report addressing the issue of permanent disability due to a claimed industrial injury to address the issue of causation of the permanent disability, and requires that the report include an apportionment determination in order to be considered complete on the issue of permanent disability. Existing law requires a physician to make an apportionment determination by finding what approximate percentage of the permanent disability is caused by the direct result of injury arising out of and occurring in the course of employment and what approximate percentage is caused by other factors. This bill would prohibit the approximate percentage of the permanent disability caused by other factors from including consideration of race, religious creed, color, national origin, age, gender, marital status, sex, sexual orientation, or genetic characteristics. Hide

Existing law prohibits domestic insurers from acquiring foreign investments from or located in foreign jurisdictions designated as state sponsors of terrorism by the United States Secretary of State. Existing law, the Iran Contracting Act of 2010, provides that a person whose name appears on a list developed or contracted for development by the Department of General Services as a person determined by the department to be engaged in investment activities in Iran is ineligible to bid on, submit a proposal for, enter into, or renew a contract with a public entity. This bill would require that above-referenced investments by a domestic insurer in companies that are included on the list maintained by the Department of General Services be treated as nonadmitted assets on the financial statements of the domestic insurer. The bill would deem use of the list developed for purposes of the Iran Contracting Act of 2010 as automatic compliance with these requirements. The bill would require the insurer to provide the Department of Insurance, on an annual basis, with a list of the investments the insurer has in companies included on the Department of General Services list. Hide

(1)Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission (commission), to provide to specified entities, upon appropriation by the Legislature, grants, loans, loan guarantees, revolving loans, or other appropriate measures, for the development and deployment of innovative technologies that would transform California’s fuel and vehicle types to help attain the state’s climate change goals. Existing law specifies that only certain projects or programs are eligible for funding, including block grants administered by public entities or not-for-profit technology entities for multiple projects, education and program promotion within California, and development of alternative and renewable fuel and vehicle technology centers. Existing law requires the commission to develop and adopt an investment plan to determine priorities and opportunities for the program. This bill would provide that the State Air Resources Board (state board), until January 1, 2024, has no authority to enforce any element of its existing clean fuels outlet regulation or other regulation that requires or has the effect of requiring any person to construct, operate, or provide funding for the construction or operation of any publicly available hydrogen fueling station. The bill would require the state board to aggregate and make available to the public, no later than January 1, 2014, and every 2 years thereafter, the number of vehicles that automobile manufacturers project to be sold or leased, as reported to the state board. The bill would require the commission to allocate $20 million each fiscal year, as specified, and up to $20 million each fiscal year thereafter, as specified, for purposes of achieving a hydrogen fueling network sufficient to provide convenient fueling to vehicle owners, and expand that network as necessary to support a growing market for vehicles requiring hydrogen fuel, until there are at least 100 publicly available hydrogen fueling stations. The bill, on or before December 31, 2015, and annually thereafter, would require the commission and the state board to jointly review and report on the progress toward establishing a hydrogen fueling network that provides the coverage and capacity to fuel vehicles requiring hydrogen fuel that are being placed into operation in the state, as specified. The bill would authorize the commission to design grants, loan incentive programs, revolving loan programs, and other forms of financial assistance, as specified, for purposes of assisting in the implementation of these provisions. The bill, no later than July 1, 2013, would require the state board and air districts to jointly convene working groups to evaluate the specified policies and goals of specified programs. (2)Existing law requires the commission, in partnership with the state board, to develop and adopt a state plan to increase the use of alternative transportation fuels. This bill would require the commission and the state board, among other things, to coordinate efforts to measure the progress of alternative fuels use. The bill would require the commission, in consultation with the state board, on or before November 1, 2014, to update a specified economic analysis. The bill would require the commission and the state board, to evaluate how the use of new and existing investment programs could be used to increase the state alternative transportation fuels use, and evaluate how the impact of federal fuel policies and existing state policies will help increase the use of alternative transportation fuels in the state. The bill would require the commission and the state board, on or before November 1, 2015, and every 2 years thereafter, to report in the integrated energy policy report, as specified, the status of the state alternative transportation fuels use, as specified, and make specified evaluations. The bill would require the state board to include a finding on the effect of proposed regulations on state alternative transportation fuels use. (3)Existing law, until January 1, 2016, increases vehicle registration fees, vessel registration fees, and specified service fees for identification plates by a specified amount. Existing law requires the revenue generated by the increase in those fees to be deposited in the Alternative and Renewable Fuel and Vehicle Technology Fund, and either the Air Quality Improvement Fund or the Enhanced Fleet Modernization Subaccount, as provided. Existing law, until January 1, 2016, imposes on certain vehicles a smog abatement fee of $20, and requires a specified amount of this fee to be deposited in the Air Quality Improvement Fund and in the Alternative and Renewable Fuel and Vehicle Technology Fund. This bill would extend those fees in the amounts required to make these deposits into the Alternative and Renewable Fuel and Vehicle Technology Fund, the Air Quality Improvement Fund, and the Enhanced Fleet Modernization Subaccount until January 1, 2024, at which time the fees would be reduced by those amounts. (4)Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer program), which is administered by the state board, to provide grants to offset the incremental cost of eligible projects that reduce emissions of air pollutants from sources in the state and for funding a fueling infrastructure demonstration program and technology development efforts. Existing law, beginning January 1, 2015, limits the Carl Moyer program to funding projects that reduce emissions of oxides of nitrogen (NOx). This bill would extend the current authorization for the Carl Moyer program to fund a broader range of projects that reduce emissions until January 1, 2024, and would make other conforming changes in that regard. (5)Existing law authorizes the district board of the Sacramento Metropolitan Air Quality Management District to adopt a surcharge on motor vehicle registration fees applicable to all motor vehicles registered in the counties within that district. Existing law, until January 1, 2015, raises the limit on the amount of that surcharge from $4 to $6 for a motor vehicle whose registration expires on or after December 31, 1990, and requires that $2 of the surcharge be used to implement the Carl Moyer program, as specified. Beginning January 1, 2015, existing law returns the surcharge limit to its previous amount of $4. This bill would extend indefinitely the $6 limitation on the surcharge until January 1, 2024, with the limit returning to $4 beginning on that date. (6)Existing law authorizes each air pollution control and air quality management district (district) that has been designated a state nonattainment area by the state board for any motor vehicle air pollutant, except the Sacramento Air Quality Management District, to levy a surcharge on the registration fees for every motor vehicle registered in that district, as specified by the governing body of the district. Existing law requires the Department of Motor Vehicles to collect that surcharge if requested by a district, and requires the department, after deducting its administrative costs, to distribute the revenues to the districts. Existing law, until January 1, 2015, raises the limit on the amount of that surcharge from $4 to $6 and requires that $2 of the surcharge be used to implement the Carl Moyer program, as specified. Beginning January 1, 2015, existing law returns the surcharge limit to its previous amount of $4. This bill would extend indefinitely the $6 limitation on the surcharge. (7)Existing law imposes, until January 1, 2015, a California tire fee of $1.75 per tire on every person who purchases a new tire, with the revenues generated to be allocated for prescribed purposes related to disposal and use of used tires. Existing law requires that $0.75 per tire on which the fee is imposed, be deposited in the Air Pollution Control Fund, these moneys to be available upon appropriation by the Legislature for use by the state board and districts for specified purposes. Existing law reduces the tire fee to $0.75 per tire on and after January 1, 2015. This bill would instead establish a tire fee of $1.50 per tire until January 1, 2024, and reduce the tire fee to $0.75 per tire on and after January 1, 2024. (8)This bill would declare that it is to take effect immediately as an urgency statute. Hide

(1)Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission (commission), to provide to specified entities, upon appropriation by the Legislature, grants, loans, loan guarantees, revolving loans, or other appropriate measures, for the development and deployment of innovative technologies that would transform California’s fuel and vehicle types to help attain the state’s climate change goals. Existing law specifies that only certain projects or programs are eligible for funding, including block grants administered by public entities or not-for-profit technology entities for multiple projects, education and program promotion within California, and development of alternative and renewable fuel and vehicle technology centers. Existing law requires the commission to develop and adopt an investment plan to determine priorities and opportunities for the program. This bill would provide that the State Air Resources Board, referred to as the state board, until January 1, 2024, has no authority to enforce any element of its existing clean fuels outlet regulation or other regulation that requires or has the effect of requiring any person to construct, operate, or provide funding for the construction or operation of any publicly available hydrogen fueling station. The bill would require the state board to aggregate and make available to the public, no later than January 1, 2014, and every two years thereafter, the number of vehicles that automobile manufacturers project to be sold or leased, as reported to the state board. The bill would require the commission to allocate $20 million each fiscal year, as specified, and up to $20 million each fiscal year thereafter, as specified, for purposes of achieving a hydrogen fueling network sufficient to provide convenient fueling to vehicle owners, and expand that network as necessary to support a growing market for vehicles requiring hydrogen fuel, until there are at least 100 publicly available hydrogen fueling stations. The bill, on or before December 31, 2015, and annually thereafter, would require the commission and the state board to jointly review and report on the progress toward establishing a hydrogen fueling network that provides the coverage and capacity to fuel vehicles requiring hydrogen fuel that are being placed into operation in the state, as specified. The bill would authorize the commission to design grants, loan incentive programs, revolving loan programs, and other forms of financial assistance, as specified, for purposes of assisting in the implementation of these provisions. The bill, no later than July 1, 2013, would require the state board and air districts to jointly convene working groups to evaluate the specified policies and goals of specified programs. The bill would add intelligent transportation systems as a category of projects eligible for funding under the Alternative and Renewable Fuel and Vehicle Technology Program. (2)Existing law requires the commission, in partnership with the state board, to develop and adopt a state plan to increase the use of alternative transportation fuels. This bill would require the commission and the state board, among other things, to coordinate efforts to measure the progress of alternative fuels use. The bill would require the commission, in consultation with the state board, on or before November 1, 2014, to update a specified economic analysis. The bill would require the commission and the state board, to evaluate how the use of new and existing investment programs could be used to increase the state alternative transportation fuels use, and evaluate how the impact of federal fuel policies and existing state policies will help increase the use of alternative transportation fuels in the state. The bill would require the commission and the state board, on or before November 1, 2015, and every 2 years thereafter, to report in the integrated energy policy report, as specified, the status of the state alternative transportation fuels use, as specified, and make specified evaluations. The bill would require the state board to include a finding on the effect of proposed regulations on state alternative transportation fuels use. (3)Existing law, until January 1, 2016, increases vehicle registration fees, vessel registration fees, and specified service fees for identification plates by a specified amount. Existing law requires the revenue generated by the increase in those fees to be deposited in the Alternative and Renewable Fuel and Vehicle Technology Fund, and either the Air Quality Improvement Fund or the Enhanced Fleet Modernization Subaccount, as provided. Existing law, until January 1, 2016, imposes on certain vehicles a smog abatement fee of $20, and requires a specified amount of this fee to be deposited in the Air Quality Improvement Fund and in the Alternative and Renewable Fuel and Vehicle Technology Fund. This bill would extend those fees in the amounts required to make these deposits into the Alternative and Renewable Fuel and Vehicle Technology Fund, the Air Quality Improvement Fund, and the Enhanced Fleet Modernization Subaccount until January 1, 2024, at which time the fees would be reduced by those amounts. (4)Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer program), which is administered by the state board, to provide grants to offset the incremental cost of eligible projects that reduce emissions of air pollutants from sources in the state and for funding a fueling infrastructure demonstration program and technology development efforts. Existing law, beginning January 1, 2015, limits the Carl Moyer program to funding projects that reduce emissions of oxides of nitrogen (NOx). This bill would extend the current authorization for the Carl Moyer program to fund a broader range of projects that reduce emissions until January 1, 2024, and would make other conforming changes in that regard. (5)Existing law authorizes the district board of the Sacramento Metropolitan Air Quality Management District to adopt a surcharge on motor vehicle registration fees applicable to all motor vehicles registered in the counties within that district. Existing law, until January 1, 2015, raises the limit on the amount of that surcharge from $4 to $6 for a motor vehicle whose registration expires on or after December 31, 1990, and requires that $2 of the surcharge be used to implement the Carl Moyer program, as specified. Beginning January 1, 2015, existing law returns the surcharge limit to its previous amount of $4. This bill would extend the $6 limitation on the surcharge until January 1, 2024, with the limit returning to $4 beginning on that date. (6)Existing law authorizes each air pollution control and air quality management district, or district, that has been designated a state nonattainment area by the state board for any motor vehicle air pollutant, except the Sacramento Air Quality Management District, to levy a surcharge on the registration fees for every motor vehicle registered in that district, as specified by the governing body of the district. Existing law requires the Department of Motor Vehicles to collect that surcharge if requested by a district, and requires the department, after deducting its administrative costs, to distribute the revenues to the districts. Existing law, until January 1, 2015, raises the limit on the amount of that surcharge from $4 to $6 and requires that $2 of the surcharge be used to implement the Carl Moyer program, as specified. Beginning January 1, 2015, existing law returns the surcharge limit to its previous amount of $4. This bill would extend the $6 limitation on the surcharge until January 1, 2024, with the limit returning to $4 beginning on that date. (7)Existing law imposes, until January 1, 2015, a California tire fee of $1.75 per tire on every person who purchases a new tire, with the revenues generated to be allocated for prescribed purposes related to disposal and use of used tires. Existing law requires that $0.75 per tire on which the fee is imposed, be deposited in the Air Pollution Control Fund, these moneys to be available upon appropriation by the Legislature for use by the state board and districts for specified purposes. Existing law reduces the tire fee to $0.75 per tire on and after January 1, 2015. This bill would, on January 1, 2015, instead increase the tire fee to $1.50 per tire until January 1, 2024, and reduce the tire fee to $0.75 per tire on and after January 1, 2024. (8)This bill would declare that it is to take effect immediately as an urgency statute. Hide

Existing law governs the admissibility of evidence in court proceedings and generally provides a privilege as to communications made in the course of certain relations, including the attorney-client, physician-patient, and psychotherapist-patient relationship, as specified. Under existing law, the right of any person to claim those evidentiary privileges is waived with respect to a communication protected by the privilege if any holder of the privilege, without coercion, has disclosed a significant part of the communication or has consented to a disclosure made by anyone. This bill would provide that a union agent, as defined, and a represented employee or represented former employee have a privilege to refuse to disclose any confidential communication between the employee or former employee and the union agent while the union agent was acting in his or her representative capacity, except as specified. The bill would provide that a represented employee or represented former employee also has a privilege to prevent another person from disclosing a privileged communication, except as specified. The bill would further provide that this privilege may be waived in accordance with existing law. Hide

(1)Existing law regulates the sale of life insurance to seniors, including annuities, as specified. Existing law requires a person who meets with a senior in the senior’s home regarding the sale of life insurance to deliver a notice in writing to the senior no less than 24 hours prior to that individual’s meeting, and to abide by other restrictions regarding contacting the senior in the senior’s home. The bill would specify that the above notice, including an additional statement regarding the senior’s rights, may be provided at the time of the meeting in the senior’s home when the meeting concerns the sale of life insurance designated by the purchaser as payment for funeral and burial expenses if the life insurance policy has an initial face value amount of $15,000 or less. The bill would also require, within 14 days of the purchase of that type of life insurance or annuity by a senior, that the issuer of the policy provide by first-class mail a written notice of the purchase and notice of a 60-day right of cancellation with specified content to the senior and certain other persons. The bill would prohibit the insurance salesperson who meets with a senior in the senior’s home to sell that type of life insurance or annuity to sell any other insurance policies or annuities without providing the required 24-hour advance notice. (2)Existing law provides that life insurance policies with a face value of less than $10,000, issued after July 1, 1974, shall contain a notice permitting the return of the policy within a period of time designated in the notice, which may not be less than 10 days nor more than 30 days. This bill would provide that a life insurance policy with an initial face value of $15,000 or less shall contain a notice permitting the return of the policy within not less than 10 days nor more than 30 days, provided that, for a policy relating to funeral and burial expenses described in (1) above, the right of return shall last 60 days when the 24-hour advance notice is not delivered. Hide

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. Beginning January 1, 2012, any covenant, restriction, or condition in a deed or other instrument affecting the transfer or sale of an interest in a common interest development, or any provision of the governing documents of a common interest development, that prohibits or restricts the installation or use of an electric vehicle charging station is void and unenforceable. On and after January 1, 2012, if an electric vehicle charging station is to be placed in a common area, the homeowner and common interest development association shall be subject to certain requirements. This bill would make those provisions applicable only to the installation or use of an electric vehicle charging station in an owner’s designated parking space, as described. The bill would also provide that any provision in those documents that is in conflict with those requirements is void and unenforceable. The bill would authorize the installation of a charging station for the exclusive use of an owner in a common area that is not an exclusive use common area only if installation in the owner’s designated parking space is impossible or unreasonably expensive. However, the bill would authorize an association or owners to install a charging station in the common area for the use of all members, and would require the association to develop appropriate terms of use for the charging station. The bill would authorize the board of directors of an association to grant exclusive use of a portion of the common area without the affirmative vote of the members of the association for the purpose of installing and using an electric vehicle charging station in an owner’s garage or designated parking space, under specified circumstances, such as when the installation or use of the charging station requires reasonable access through the common area for utility lines or meters. This bill would declare that it is to take effect immediately as an urgency statute. Hide

Existing law requires agents and insurers to fulfill certain requirements with regard to the replacement of existing life insurance policies and annuities. This bill would require insurers and insurance producers, as defined, to comply with specified requirements regarding the purchase, exchange, or replacement of an annuity recommended to a consumer, including, but not limited to, having reasonable grounds for the insurance producer believing the annuity transaction would be suitable for the consumer, as provided. The bill would also prohibit an insurance producer from selling annuities unless he or she has received Insurance Commissioner-approved training, and would authorize the commissioner to require certain actions by, and impose sanctions and penalties on, insurers and their agents for a violation of the bill’s provisions. The bill would further provide that sales by a Financial Industry Regulatory Authority (FINRA) broker-dealer that comply with the suitability and supervision system requirements of FINRA shall be deemed to satisfy the suitability and supervision system requirements of this bill, as specified. Hide

Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law provides that it is unlawful for a physician to refer a person for specified medical goods or services, whether for treatment or medical-legal purposes, if the physician or his or her immediate family has a financial interest with the person or in the entity that receives the referral. A violation of this provision is a misdemeanor. This bill would add pharmacy goods, as defined, to the list of medical goods or services for which it is unlawful for a physician to refer a person under this provision, except in prescribed circumstances. By creating a new crime, this bill would impose a state-mandated local program. Existing law requires the administrative director, after public hearings, to adopt and revise periodically an official medical fee schedule that establishes reasonable maximum fees paid for medical services, other than physician services, and for other prescribed goods and services, in accordance with specified requirements. Under existing law, prior to the adoption by the administrative director of a medical fee schedule for any treatment, facility use, product, or service not covered by a Medicare payment system, the maximum reasonable fee paid cannot exceed the fee specified in the official medical fee schedule in effect on December 31, 2003. Existing law also provides that for pharmacy services and drugs not otherwise covered by a Medicare fee schedule payment for facility services, the maximum reasonable fees are 100% of fees prescribed in the relevant Medi-Cal payment system. This bill would prohibit the maximum reasonable fees paid for pharmacy services and drugs from including specified reductions in the relevant Medi-Cal payment system. This bill would require any compounded drug product, as defined, to be billed by the compounding pharmacy or dispensing physician at the ingredient level, as prescribed, and in accordance with regulations adopted by the California State Board of Pharmacy. This bill would set specified maximum reimbursement for a dangerous drug, dangerous device, or other pharmacy goods, dispensed by a physician, and would define related terms. This bill would prohibit a provision concerning physician-dispensed pharmacy goods from being superseded by any provision of the official medical fee schedule adopted by the administrative director unless the official medical fee schedule provision is expressly applicable. This bill would also require the provision adopted by the administrative director to govern if a provision concerning physician-dispensed pharmacy goods is inconsistent with the prescribed official medical fee schedule. This bill would also delete obsolete provisions relating to the adoption of a medical fee schedule for patient facility fees for burn cases. This bill would incorporate additional changes in Section 5307.1 of the Labor Code proposed by Senate Bill 923, that would become operative only if Senate Bill 923 and this bill are both chaptered and become effective on or before January 1, 2012, and this bill is chaptered last. 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. Hide

(1)Existing law requires every driver and every owner of a motor vehicle to be able to establish financial responsibility, and, at all times, carry in the vehicle evidence of a form of financial responsibility, which may be obtained by a law enforcement officer from the electronic reporting system established by the Department of Motor Vehicles. Existing law requires, upon the demand of a peace officer, that evidence of registration and proof of financial responsibility be provided by a person driving a motor vehicle. Existing law requires a driver who is issued a notice to appear for any alleged violation of the Vehicle Code or the driver of a motor vehicle involved in an accident to furnish written evidence of financial responsibility. Existing law requires an insurer issuing policies of automobile liability insurance or motor vehicle liability insurance, upon the request of its insured or the Department of Motor Vehicles, to promptly issue written verification as to the existence of that coverage. This bill would authorize an insurer issuing policies of automobile liability insurance or motor vehicle insurance to issue, upon the request of the insured and to the extent available, electronic verification as to the existence of the coverage to a mobile electronic device, as defined, and would allow a person to provide evidence of financial responsibility, under the circumstances described above, through the use of a mobile electronic device. The bill would require, when a person provides evidence of financial responsibility, using a mobile electronic device, to a peace officer, the peace officer to only view the evidence of financial responsibility and would prohibit him or her from viewing any other content on the mobile electronic device. The bill would also require, whenever a person presents a mobile electronic device pursuant to the above-described provisions, the person to assume all liability for any damage to the mobile electronic device. By expanding the duties of local public officials and expanding the scope of existing crimes, the bill would impose a state-mandated local program. (2)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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Hide

Existing law provides that a defendant in any litigation pending in any court in the state may move the court, upon notice and hearing, for an order requiring the plaintiff to furnish security, based upon the ground that the plaintiff is a vexatious litigant, as defined, and has no reasonable probability of prevailing. Upon motion, existing law requires the court to consider specified evidence as may be material to the ground of the motion, but prohibits any determination made by the court to be or be deemed a determination of any issue in the litigation. Existing law requires the court to order the plaintiff to furnish security if, after hearing the evidence upon the motion, the court determines that the plaintiff is a vexatious litigant and that there is no reasonable probability that the plaintiff will prevail. Existing law provides that when a motion to require security is filed prior to trial, the litigation is stayed and the moving defendant is not required to plead until 10 days after the motion is denied or, if granted, 10 days after the required security has been furnished and the moving defendant has been given notice. Existing law provides that if a motion is filed any time after trial begins, the litigation is required to be stayed for such period after the denial of the motion or the furnishing of the required security, as determined by the court. This bill would additionally authorize a defendant to move for an order to dismiss litigation or to seek relief in the alternative, as specified. The bill would require the defendant to combine all grounds for relief in one motion. This bill would require the court to order the litigation dismissed if, after hearing evidence on the motion, the court determines the litigation has no merit. The bill would specify that these provisions would only apply to litigation filed in a court of this state by a vexatious litigant subject to a prefiling order, as specified, who was represented by counsel at the time the litigation was filed and who became in propria persona after the withdrawal of his or her attorney. Hide

(1)Existing law prohibits the transaction of any class of insurance in this state without first being admitted for that class of insurance, and admission is secured by procuring a certificate of authority from the Insurance Commissioner. Before granting a certificate of authority to any applicant, the commissioner is required to consider the qualifications of the applicant, including, but not limited to, capital and surplus and lawfulness and quality of investments. This bill would authorize the commissioner to designate an insurer as a professional reinsurer when an insurer admitted and domiciled in this state, or an insurer applying to become admitted and domiciled in this state, is determined by the commissioner to be qualified, as specified, which includes, but is not limited to, the commissioner determining that the insurer is principally engaged in the business of reinsurance, that the insurer does not conduct significant amounts of direct insurance as a percentage of its net premiums, and is not engaged, on an ongoing basis, in the business of soliciting direct insurance. (2)Existing law requires insurers doing business in this state to annually make and file with the commissioner financial statements. Existing law requires that credit for reinsurance as an asset or deduction from liability be allowed a domestic ceding insurer only if the reinsurance contract includes certain provisions, including, in the event of insolvency and the appointment of a conservator, liquidator, or statutory successor of the ceding company, that the reinsurance will be payable, as specified, without diminution because of the insolvency. This bill would revise that requirement to additionally apply in the event of a change in status of the ceding company, as specified, including when the commissioner finds that the conditions for the appointment of a conservator, liquidator, or statutory successor has occurred with respect to the ceding company. The bill would also require a ceding insurer to take steps to manage its reinsurance recoverables proportionate to its own book of business and to diversify its reinsurance program. The bill would also require a domestic ceding insurer to notify the commissioner within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceed 50% of the domestic ceding insurer’s last reported surplus to policyholders, or after it is determined that the reinsurance recoverables are likely to exceed that limit, as specified. The bill would also require a domestic ceding insurer to notify the commissioner within 30 days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than 20% of the ceding insurer’s gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded is likely to exceed this limit, as specified. (3)Existing law also allows credit for reinsurance when the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state, except as specified. Existing law describes an accredited reinsurer for purposes of this provision as one that, among other criteria, maintains a surplus as regards to policyholders in an amount that is either not less than $20,000,000, and whose accreditation has not been denied by the commissioner within the last 90 days, or maintains a surplus that is less than $20,000,000 and whose accreditation has been approved by the commissioner. This bill would instead require that the reinsurer demonstrate to the satisfaction of the commissioner that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers, and would delete the provision authorizing a reinsurer whose accreditation has been approved to maintain a surplus of less than $20,000,000. The bill would instead provide that an assuming insurer who maintains a surplus of not less than $20,000,000 and whose accreditation has not been denied by the commissioner within the last 90 days shall be deemed to meet that requirement and would require that an assuming insurer who is not deemed to meet this requirement obtain the affirmative approval of the commissioner. The bill would require that the approval of the commissioner be based upon a finding that the assuming insurer has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. (4)Existing law also provides that credit is allowed when reinsurance is ceded to an assuming insurer that maintains a trust fund, as specified. This bill would authorize the commissioner to authorize a reduction in the required trustee surplus after an assuming insurer has permanently discontinued underwriting new business secured by the trust for at least 3 full years, as specified. The bill would also enact, only until January 1, 2016, provisions governing the certification and rating of assuming insurers by the commissioner and specify additional circumstances under which credit shall be allowed to a domestic insurer when the reinsurance is ceded to an assuming insurer that has been certified. The bill would require, among other things, that the assuming insurer be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction and would require the commissioner to create and publish a list of qualified jurisdictions, as specified. The bill would also require the assuming insurer to maintain minimum capital and surplus, or its equivalent, in an amount determined by the commissioner, and to maintain financial strength ratings from 2 or more rating agencies, as specified. The bill would impose various filing requirements on certified reinsurers, including notification within 10 days of any regulatory actions taken against the certified reinsurer and annual audited financial statements. The bill would also require the commissioner to assign a rating to each certified reinsurer based on specified criteria, such as the certified insurer’s financial strength rating from an acceptable rating agency and the certified insurer’s reputation for prompt payment of claims. The bill would also authorize the commissioner to suspend or revoke an accredited or certified reinsurer’s accreditation or certification after notice and opportunity for hearing, as specified. The bill would make other related changes. (5)Existing law provides that credit for reinsurance as an asset or a deduction from liability is allowed a foreign ceding insurer, with exceptions, to the extent the credit has been allowed by the ceding insurer’s state of domicile if the state of domicile is accredited by the National Association of Insurance Commissioners (NAIC), or the credit or deduction from liability would be allowed if the foreign ceding insurer were domiciled in this state. Credit for reinsurance as an asset or a deduction from liability may be disallowed if the commissioner finds that the financial condition of the reinsurer, or the collateral or other security provided by the reinsurer, does not satisfy the credit for reinsurance requirements applicable to a ceding insurer domiciled in this state. This bill would instead require that credit for reinsurance not be denied a foreign ceding insurer to the extent that credit is recognized by the ceding insurer’s domestic state regulator, provided that the domestic state is accredited by the NAIC, or the domestic state regulator has financial solvency requirements similar to the requirements necessary for NAIC accreditation. Hide

The Budget Act of 2012 appropriated $53,526,000 to the Secretary of State for purposes of filings and registrations during the 2012–13 fiscal year. This bill would increase this appropriation by $1,600,000 to $55,126,000. The bill would require that this increase be used for costs associated with reducing the processing time for business filings and require the Secretary of State to report on the 30th day of each month to the Joint Legislative Budget Committee on the Secretary of State’s progress in achieving those reductions. This bill would declare that it is to take effect immediately as a Budget Bill. Hide

Existing law requires the Department of the California Highway Patrol to adopt rules and regulations that are designed to promote the safe operation of specific vehicles, including, among other things, schoolbuses and commercial motor vehicles. Existing law also requires the Department of Motor Vehicles to register vehicles that are being operated in this state and to issue a license plate to an applicant for the operation and identification of that person’s vehicle. This bill would authorize the operation of an autonomous vehicle, as defined, on public roads for testing purposes, by a driver who possesses the proper class of license for the type of vehicle being operated if specified requirements are met, including that the driver be seated in the driver’s seat, monitoring the safe operation of the autonomous vehicle, and capable of taking over immediate manual control of the autonomous vehicle in the event of an autonomous technology failure or other emergency. The bill would prohibit, except as provided for testing purposes, the operation of such a vehicle on public roads until the manufacturer submits an application to the department that includes various certifications, including a certification that the autonomous technology satisfies certain requirements, and the application is approved by the department pursuant to the regulations that the department would be required to adopt. The bill would require one of the certifications to specify that the autonomous vehicle’s technology meets Federal Motor Vehicle Safety Standards for the vehicle’s model year and all other applicable safety standards and performance requirements set forth in state and federal law and the regulations promulgated pursuant to those laws. The bill would require that the Department of Motor Vehicles adopt regulations as soon as practicable, but no later than January 1, 2015, setting forth requirements for the submission of evidence of insurance, surety bond, or self-insurance required by the bill and requirements for the submission or approval of an application to operate an autonomous vehicle, including any testing, equipment, or performance standards, as specified, and to hold public hearings on the adoption of any regulation applicable to the operation of an autonomous vehicle without the presence of a driver inside the vehicle. The bill would provide that federal regulations promulgated by the National Highway Traffic Safety Administration supersede state law or regulation when found to be in conflict. The bill would require the department to approve an application submitted by a manufacturer upon making specified findings and would authorize the department to impose additional requirements if the application seeks approval for autonomous vehicles where there is no person in the driver’s seat. The bill would also require the department to notify the Legislature of the receipt of an application from a manufacturer seeking approval to operate an autonomous vehicle capable of operating without the presence of a driver inside the vehicle and the approval of the application. The bill would provide that approval of the application is effective no sooner than 180 days after the date the application is submitted. The department would be authorized to charge a fee for the application in an amount necessary to recover all costs reasonably incurred by the department. Hide

(1)Existing law requires the Department of Motor Vehicles (DMV) to require an applicant for an original driver’s license or identification card to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law. Existing law prohibits the department from issuing an original driver’s license or identification card to a person who does not submit satisfactory proof that his or her presence in the United States is authorized under federal law. Existing law makes it a misdemeanor for a person to knowingly assist in obtaining a driver’s license or identification card for a person whose presence in the United States is not authorized under federal law.This bill would delete these provisions, and would make other technical and conforming changes. The bill would instead authorize an applicant for a driver’s license who is not eligible for a social security account number, but who provides proof of identity, as specified, to receive an original driver’s license if he or she meets all other qualifications for licensure.(2)Existing law requires each form prescribed by the DMV for use by an applicant for the issuance or renewal of a driver’s license or identification card to contain a section for the applicant’s social security number. Existing law prohibits the inclusion of an applicant’s social security number on a driver’s license, identification card, registration, certificate of title, or other document issued by the DMV or the display of an applicant’s social security number on the driver’s license.This bill would additionally provide that the section of the form for the applicant’s social security number may also be used for a number associated with a document that the DMV finds clearly establishes the identity of the applicant. The bill would additionally prohibit the inclusion or the displaying of the applicant’s individual taxpayer identification number or other number associated with the identity document. Hide