Bill Text: CA AB1232 | 2015-2016 | Regular Session | Enrolled

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Bill Title: Insurance Commissioner: administrative hearings.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-01-15 - Consideration of Governor's veto stricken from file. [AB1232 Detail]

Download: California-2015-AB1232-Enrolled.html

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BILL NUMBER: AB 1232	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 1, 2015
	AMENDED IN SENATE  JUNE 29, 2015
	AMENDED IN ASSEMBLY  APRIL 30, 2015
	AMENDED IN ASSEMBLY  APRIL 13, 2015

INTRODUCED BY   Assembly Member Cristina Garcia

                        FEBRUARY 27, 2015

   An act to amend Section 1667 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1232, Cristina Garcia. Insurance Commissioner: administrative
hearings.
   Existing law grants the Insurance Commissioner certain powers and
duties. Existing law prohibits the commissioner from denying an
insurance agent or broker license to an applicant without an
opportunity to be heard. The hearing is required to be conducted in
accordance with specified provisions of the Administrative Procedure
Act.
   This bill would, if the applicant or permanent licensee is a
natural person and requests a hearing, authorize the person, at his
or her option, to have the hearing held by either the Office of
Administrative Hearings, or an administrative law judge appointed by
the commissioner to conduct the hearing. If the natural person does
not indicate a preference of forum when requesting that hearing, the
bill would authorize the commissioner to refer the matter for hearing
to either the Office of Administrative Hearings, or to an
administrative law judge appointed by the commissioner to conduct the
hearing.
   Existing law also requires the commissioner to make an annual
report to the Governor, the Legislature, and the committees of the
Senate and Assembly having jurisdiction over insurance showing,
generally, the condition of the insurance business and interests in
this state, and other matters concerning insurance, as specified.
   This bill would require the commissioner, for 3 calendar years, to
include in the report described above specified information
regarding those cases in which a hearing was held, including the
total number of cases in which a hearing was held and the average
number of days that elapsed between the referral of a case to an
administrative law judge and a proposed decision by that
administrative law judge.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1667 of the Insurance Code is amended to read:
   1667.  (a) Except as provided in Section 1669, a license shall not
be denied without an opportunity for the applicant to be heard in
support of his or her application. When a hearing is held, the
proceedings shall be conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
   (b) Notwithstanding subdivision (a) of Section 11502 of the
Government Code, when a natural person requests a hearing pursuant to
Section 11506 of the Government Code, he or she may, at his or her
option, have the hearing held by either the Office of Administrative
Hearings pursuant to Section 11502 of the Government Code, or an
administrative law judge appointed by the commissioner to conduct the
hearing. If the natural person does not indicate a preference of
forum when requesting that hearing, the commissioner may refer the
matter for hearing to either the Office of Administrative Hearings
pursuant to Section 11502 of the Government Code, or to an
administrative law judge appointed by the commissioner to conduct the
hearing.
   (c) The commissioner shall include, in the report required
pursuant to Section 12922, in each calendar year from 2017 to 2019,
inclusive, the total number of cases in which a hearing was held, the
number of those cases heard by an administrative law judge appointed
by the commissioner, the average number of days that elapsed between
the referral of a case to an administrative law judge and a proposed
decision by that administrative law judge, and the outcome of the
cases.