Bill Text: CA AB591 | 2009-2010 | Regular Session | Introduced

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

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Bill Title: Individual health care coverage: premium rates.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-08-12 - In committee: Held under submission. [AB591 Detail]

Download: California-2009-AB591-Introduced.html

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BILL NUMBER: AB 591	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member De La Torre

                        FEBRUARY 25, 2009

   An act to amend Section 754 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 591, as introduced, De La Torre. Referral fees.
   Under existing law, it is unlawful for a person to solicit,
receive, offer, or pay a referral fee for the referral of an
individual for the furnishing of services or goods for which the
person knows or should have known that whole or partial reimbursement
is or may be made by an insurer. Existing law makes a violation of
those provisions a misdemeanor, punishable by a fine not to exceed
$1,000 for each violation.
   This bill would increase that penalty to $5,000 for each
violation. By increasing the penalties for a crime, the bill would
impose a state-mandated local program.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 754 of the Insurance Code is amended to read:
   754.  (a) It is unlawful for any person to solicit, receive,
offer, or pay any referral fee for the referral of an individual for
the furnishing of services or goods for which the person knows or
should have known  that  whole or partial reimbursement is
or may be made, directly or indirectly, by any insurer. As used in
this section, a referral fee is a fee paid by a person furnishing
goods or services to another in return for the referral of an
individual to that person for the furnishing of services or goods. It
includes any referral fee, kickback, bribe, or rebate, whether made
directly or indirectly, overtly or covertly, or in cash or in kind.
This subdivision does not apply to any of the following:
   (1) Discounts or similar reductions in prices.
   (2) Referral fees between attorneys if legal services are provided
pursuant to a contingency fee arrangement if any referral fee is
consistent with the Rules of Professional Conduct of the State Bar of
California.
   (b) This section applies to all forms of insurance covering a
motor vehicle, including commercial and personal lines, and
comprehensive coverage, property damage coverage, collision coverage,
and liability coverage.
   (c) A violation of this section is a misdemeanor punishable by a
fine not to exceed  one thousand dollars ($1,000) 
 five thousand dollars ($5,000)  for each violation.
Proceedings to enforce this section may be brought by any district
attorney or other prosecuting attorney.