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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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BILL NUMBER: AB 1232	AMENDED
	BILL TEXT

	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, as amended, 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 require, if the applicant or permanent licensee is
a natural person and  the hearing is contested, that the
hearing be conducted by an administrative law judge chosen in
accordance with specified provisions of the act or appointed by the
commissioner.   requests a hearing, the commissioner to
select either an administrative law judge   appointed
pursuant to the act, or 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. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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, except a hearing with
respect to a natural person subject to this chapter shall be
conducted by an administrative law judge for purposes of Sections
11512 and 11517 of the Government Code, chosen under Section 11502 of
the Government Code or appointed by the commissioner.  
Code.  
   (b) Notwithstanding subdivision (a) of Section 11502 of the
Government Code, when a hearing is requested pursuant to subdivision
(a) by a natural person who is subject to this chapter, the
commissioner may select either an administrative law judge appointed
pursuant to Section 11502 of the Government Code, or 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.