Bill Text: CA SB631 | 2011-2012 | Regular Session | Introduced

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

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Bill Title: Insurance Commissioner: violations: remedies.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB631 Detail]

Download: California-2011-SB631-Introduced.html

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BILL NUMBER: SB 631	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Evans

                        FEBRUARY 18, 2011

   An act to amend Section 12926.1 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 631, as introduced, Evans. Insurance Commissioner: compliance:
enforcement: funds.
   Existing law requires the Insurance Commissioner to require from
every insurer in the state full compliance with the provisions of the
Insurance Code. Existing law requires that any fines, penalties,
fees, and costs resulting from any matter involving compliance with
or enforcement of any provisions of the Insurance Code, or other laws
involving any entity subject to the jurisdiction of the
commissioner, be deposited in the appropriate fund as provided by
law. Existing law requires that any funds ordered, or allocated by a
settlement, to be used for public outreach, be subject to specified
limitations.
   This bill would make a technical, nonsubstantive change to these
provisions.
   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 12926.1 of the Insurance Code is amended to
read:
   12926.1.  (a) In any matter involving compliance with or
enforcement of any of the provisions of this code or  the
  any  other laws of this state involving any
entity subject to the jurisdiction or authority of the commissioner,
whether the matter is a formal administrative accusation or
adjudication, a formal or potential judicial action, or other
enforcement tool, and whether or not the matter is settled or
prosecuted to resolution, the use of any funds that are imposed as
fines or penalties of any sort, or collected by means of settlement,
or paid or reserved in any manner as a result of the action, shall be
subject to the limitations of this section.
   (b) Fines, penalties, fees, and costs shall be deposited in the
appropriate fund as provided by law.
   (c) Any funds ordered, or allocated by a settlement, to be used
for public outreach of any sort, shall be subject to all of the
following limitations:
   (1) The commissioner's name, likeness, or voice shall not be used
in any printed, audio, or visual material that is released either for
general distribution or to specific recipients unless a court finds
good cause to do so.
   (2) The message shall be limited to information relevant to the
enforcement action or compliance issues that generated the funds.
   (3) The primary focus of any public outreach where the purpose is
to advise members of the public of rights affecting pecuniary or
property interests shall be to provide specific information needed by
the affected persons to obtain or protect those rights.
   (4) No funds subject to this subdivision shall be used for general
education of the public about insurance issues, except to the extent
that the education relates to the type of violations that caused the
enforcement or compliance action, and otherwise complies with the
limitations of this section.
   (5) No funds subject to this subdivision shall be spent or
otherwise disposed of unless the expenditure or disposal has been
approved by a court of competent jurisdiction.
   (d) (1) This section may be enforced by an affected individual
with an interest in the matter or a policyholder of an insurer that
is a party to a settlement with the department, a city attorney, a
district attorney, or the Attorney General, who may bring an action
against the commissioner in the superior court in any county where a
violation of this section has occurred.
   (2) A court may issue injunctions or provide other equitable
remedies as appear to the court to be appropriate, and shall order
payment by the commissioner from nonpublic funds to a prevailing
party who has brought an action under this section of an amount
sufficient to compensate the party for all attorneys' fees, costs of
litigation, and expenses incurred in bringing and prosecuting the
action. For the purposes of this section, "nonpublic funds" does not
include assets of an insurer or other party to a settlement that are
not part of a valid and voluntary settlement with the department or
commissioner.
   (e) The commissioner may not increase fees or assessments against
insurers in order to comply with this section.