BILL NUMBER: SB 689 AMENDED 09/14/95 BILL TEXT AMENDED IN ASSEMBLY SEPTEMBER 14, 1995 AMENDED IN ASSEMBLY SEPTEMBER 12, 1995 AMENDED IN ASSEMBLY AUGUST 29, 1995 AMENDED IN ASSEMBLY JULY 19, 1995 AMENDED IN ASSEMBLY JULY 7, 1995 AMENDED IN SENATE MAY 30, 1995 AMENDED IN SENATE APRIL 26, 1995 AMENDED IN SENATE APRIL 17, 1995 INTRODUCED BY Senator Rosenthal FEBRUARY 22, 1995 An act to amend Sections 1356, 1368, and 1380 of, and to add Sections 1368.01, 1368.02, 1368.03, and 1368.04 to, the Health and Safety Code, {- and to amend the Budget Act of 1995 (Chapter 303 of the Statutes of 1995) by amending Item 0110-001-001 and Item 0120-011-001 of Section 2.00 thereof, relating to health coverage and the state budget, and -} {+ relating to health care service plans, and +} making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 689, as amended, Rosenthal. Health care service plans: grievances: onsite surveys {- : state budget -} . Existing law provides for the licensure and regulation of health care service plans administered by the Commissioner of Corporations. Under existing law, willful violation of any of these provisions is a misdemeanor. Existing law requires each plan to reimburse the commissioner for the actual cost of processing the licensure application as well as for other costs incurred by the commissioner in administering the laws governing the plans including routine financial examinations, medical surveys, and overhead, according to specified schedules. This bill would revise this provision to also require each plan to reimburse the commissioner for costs resulting from grievances and complaints including maintaining a toll-free number for consumer inquiries, investigation and enforcement, and medical surveys and reports. It would revise the schedules for computing reimbursements, and authorize the commissioner to require payment of an additional assessment for administrative costs associated with legislation enacted in the 1995 portion of the 1995-96 Regular Session. Existing law requires every plan to establish and maintain a grievance system approved by the department under which enrollees may submit grievances to the plan. This bill would require that plans provide enrollees or subscribers with a written statement of the disposition or pending status of the grievance within 30 days of receipt of the complaint, and an expedited review process for certain cases. This bill would require the department to investigate and take enforcement action regarding complaints. This bill would require the commissioner to establish and maintain a toll-free telephone number for receiving complaints and inquiries and responding to grievances and complaints. It would authorize the department to refer complaints to other governmental entities for investigation and resolution. This bill would also require plans to publish the toll-free telephone number of the department with certain information on every plan contract, on every evidence of coverage, and on copies of plan grievance procedures, and certain other written notices. By changing the definition of a crime, this bill would impose a state-mandated local program. This bill would require the commissioner to evaluate complaints to determine what action should be taken by the department. This bill would authorize the commissioner to impose administrative penalties not to exceed $250,000 for certain failure to respond to complaints by a plan. The bill would also allow subscribers and enrollees, or their agents, to submit a grievance to the Department of Corporations for review after compliance with certain procedures, and would require the plan to provide notice of this right to subscribers or enrollees in a prescribed manner. It would authorize the department to refer any grievance or complaint to other appropriate state and federal entities for investigation and resolution. Existing law requires the Department of Corporations to conduct a periodic onsite medical survey of the health system of each plan at least once every 5 years. Under existing law, reports of surveys and resulting deficiencies and correction plans are required to be open to public inspection, subject to certain opportunities of the plan to review the survey and correct any deficiencies within certain time periods. This bill would require that the onsite survey be conducted at least once every 3 years, and include a review of certain information. This bill would also require survey results to be publicly reported by the commissioner no later than 180 days after completion of the survey. This bill would require that a single copy of a summary of the final report's findings be provided free of charge to members of the public. It would also require the department to conduct a follow-up review within 18 months after issuance of the final report. This bill would require the commissioner to submit a report containing specified information to the Legislature on the administrative implementation of the responsibilities imposed by these provisions. This bill would appropriate $1,444,000 from the State Corporations Fund for the support of the department to implement its provisions. It would also appropriate to the department the additional assessments made by its provisions and deposited into the State Corporations Fund. {- This bill would amend the Budget Act of 1995 by reducing the amount appropriated for the operating expenses of the Senate by $1,312,000 and augmenting the amount appropriated for the operating expenses of the Assembly by $1,312,000. -} By changing the definition of a crime, this bill would impose a state-mandated local program. 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. Vote: {- 2/3-} {+ majority +} . Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1356 of the Health and Safety Code is amended to read: 1356. (a) Each plan applying for licensure under this chapter shall reimburse the commissioner for the actual cost of processing the application, including overhead, up to an amount not to exceed twenty-five thousand dollars ($25,000). The cost shall be billed not more frequently than monthly and shall be remitted by the applicant to the commissioner within 30 days of the date of billing. The commissioner shall not issue a license to any applicant prior to receiving payment in full for all amounts charged pursuant to this subdivision. (b) In addition to other fees and reimbursements required to be paid under this chapter, each licensed plan shall pay to the commissioner an amount as estimated by the commissioner for the ensuing fiscal year, as a reimbursement of its share of all costs and expenses, including, but not limited to, costs and expenses associated with routine financial examinations, grievances and complaints including maintaining a toll-free number for consumer grievances and complaints, investigation and enforcement, medical surveys and reports, and overhead, reasonably incurred in the administration of this chapter and not otherwise recovered by the commissioner under this chapter or from the State Corporations Fund. The amount may be paid in two equal installments. The first installment shall be paid on or before August 1 of each year, and the second installment shall be paid on or before December 15 of each year. The amount paid by each plan, except a plan offering only specialized health care service plan contracts, shall be twelve thousand five hundred dollars ($12,500), plus an amount up to, but not exceeding, an amount computed in accordance with the following schedule: Plan Enrollment Amount of Assessment 0 to 25,000 $0 + 39 cents for each enrollee 25,001 to 75,000 $9,000 + 27 cents for each enrollee in excess of 25,000 75,001 to 150,000 $21,000 + 24 cents for each enrollee in excess of 75,000 150,001 to 300,000 $36,750 + 21 cents for each enrollee in excess of 150,000 over 300,000 $63,750 + 19 cents for each enrollee in excess of 300,000 Plans offering only specialized health care service plan contracts shall pay seven thousand five hundred dollars ($7,500), plus an amount up to, but not exceeding, an amount computed in accordance with the following schedule: Plan Enrollment Amount of Assessment 0 to 25,000 $0 + 39 cents for each enrollee 25,001 to 75,000 $9,000 + 27 cents for each enrollee in excess of 25,000 75,001 to 150,000 $21,000 + 21 cents for each enrollee in excess of 75,000 150,001 to 300,000 $34,500 + 17 cents for each enrollee in excess of 150,000 over 300,000 $55,500 + 15 cents for each enrollee in excess of 300,000 The amount paid by each plan shall be for each enrollee enrolled in its plan in this state as of the preceding March 31, and shall be fixed by the commissioner by notice to all licensed plans on or before June 15 of each year. A plan that is unable to report the number of enrollees enrolled in the plan because it does not collect that data, shall provide the commissioner with an estimate of the number of enrollees enrolled in the plan and the method used for determining the estimate. The commissioner may, upon giving written notice to the plan, revise the estimate if the commissioner determines that the method used for determining the estimate was not reasonable. In determining the amount assessed, the commissioner shall consider all appropriations from the State Corporations Fund for the support of this chapter and all reimbursements provided for in this chapter. (c) Each licensed plan shall also pay two thousand dollars ($2,000), plus an amount up to, but not exceeding, forty-eight hundredths of one cent ($0.0048) for each enrollee for the purpose of reimbursing its share of all costs and expenses, including overhead, reasonably anticipated to be incurred by the department in administering Sections 1394.7 and 1394.8 during the current fiscal year. The amount charged shall be remitted within 30 days of the date of billing. (d) In no case shall the reimbursement, payment, or other fee authorized by this section exceed the cost, including overhead, reasonably incurred in the administration of this chapter. (e) On or before January 15, 1996, the commissioner may require health care service plans to pay an additional assessment sufficient to provide the department with revenues sufficient to support 1995-96 fiscal year administrative costs associated with legislation enacted in the 1995 portion of the 1995-96 Regular Session that increases responsibilities of the department. These assessments shall be subject to approval by the Department of Finance and shall not, when combined with other fees paid pursuant to this section, exceed the annual limits specified in subdivision (b). (f) The additional assessment shall be levied on each plan in accordance with the schedule set forth in subdivision (b), as amended by the Legislature in its 1995-96 Regular Session, and shall be paid no later than 10 days from the date of the notice of additional assessment. The amount received by the commissioner pursuant to the additional assessment provided for by subdivision (b), as amended by the Legislature in its 1995-96 Regular Session, shall be deposited into the State Corporations Fund and immediately appropriated from the State Corporations Fund to the Department of Corporations from Item 2180-001-067 of Section 2.00 of the Budget Act of 1995. SEC. 2. Section 1368 of the Health and Safety Code is amended to read: 1368. (a) Every plan shall do all of the following: (1) Establish and maintain a grievance system approved by the department under which enrollees may submit their grievances to the plan. Each system shall provide reasonable procedures in accordance with department regulations which shall insure adequate consideration of enrollee grievances and rectification when appropriate. (2) Inform its subscribers and enrollees upon enrollment in the plan and annually thereafter of the procedure for processing and resolving grievances. The information shall include the location and telephone number where grievances may be submitted. (3) Provide forms for complaints to be given to subscribers and enrollees who wish to register written complaints. The forms used by plans licensed pursuant to Section 1353 shall be approved by the commissioner in advance as to format. (4) Keep in its files all copies of complaints, and the responses thereto, for a period of five years. (b) (1) (A) After either completing the grievance process described in subdivision (a), or participating in the process for at least 60 days, a subscriber or enrollee may submit the grievance or complaint to the department for review. In any case determined by the department to be a case involving an imminent and serious threat to the health of the patient, including, but not limited to, the potential loss of life, limb, or major bodily function, or in any other case where the department determines that an earlier review is warranted, a subscriber or enrollee shall not be required to complete the grievance process or participate in the process for at least 60 days. (B) A grievance or complaint may be submitted to the department for review and resolution prior to any arbitration. (C) Notwithstanding subparagraphs (A) and (B), the department may refer any grievance or complaint to the State Department of Health Services, the Department of Aging, the federal Health Care Financing Administration, or any other appropriate governmental entity for investigation and resolution. (2) If the subscriber or enrollee is a minor, or is incompetent or incapacitated, the parent, guardian, conservator, relative, or other designee of the subscriber or enrollee, as appropriate, may submit the grievance or complaint to the department as the agent of the subscriber or enrollee. Further, a provider may join with, or otherwise assist, a subscriber or enrollee, or the agent, to submit the grievance or complaint to the department. In addition, following submission of the grievance or complaint to the department, the subscriber or enrollee, or the agent, may authorize the provider to assist, including advocating on behalf of the subscriber or enrollee. For purposes of this section, a "relative" includes the parent, stepparent, spouse, adult son or daughter, grandparent, brother, sister, uncle, or aunt of the subscriber or enrollee. (3) Every health care service plan regulated by the department shall prominently display in every plan contract, on enrollee and subscriber evidence of coverage forms, on the complaint forms required under paragraph (3) of subdivision (a), and on all written responses to grievances and complaints, a notice of the right to submit unresolved grievances and complaints to the department for review. (4) The department shall review the written documents submitted with the subscriber's or the enrollee's request for review, or submitted by the agent on behalf of the subscriber or enrollee. The department may ask for additional information, and may hold an informal meeting with the involved parties, including providers who have joined in submitting the grievance or complaint, or who are otherwise assisting or advocating on behalf of the subscriber or enrollee. The department shall send a written notice of the final disposition of the grievance or complaint, and the reasons therefor, to the subscriber or enrollee, the agent, to any provider that has joined with or is otherwise assisting the subscriber or enrollee, and to the plan, within 60 calendar days of receipt of the request for review unless the commissioner, in his or her discretion, determines that additional time is reasonably necessary to fully and fairly evaluate the relevant grievance or complaint. Distribution of the written notice shall not be deemed a waiver of any exemption or privilege under existing law, including, but not limited to, Section 6254.5 of the Government Code, for any information in connection with and including the written notice, nor shall any person employed or in any way retained by the department be required to testify as to that information or notice. On or before January 1, 1997, the commissioner shall establish and maintain a system of aging of complaints that are pending and unresolved for 60 days or more, which system shall include a brief explanation of the reasons each complaint is pending and unresolved for 60 days or more. (5) A subscriber or enrollee, or the agent acting on behalf of a subscriber or enrollee, may also request voluntary mediation with the plan prior to exercising the right to submit a grievance or complaint to the department. The use of mediation services shall not preclude the right to submit a grievance or complaint to the department upon completion of mediation. In order to initiate mediation, the subscriber or enrollee, or the agent acting on behalf of the subscriber or enrollee, and the plan shall voluntarily agree to mediation. Expenses for mediation shall be borne equally by both sides. The department shall have no administrative or enforcement responsibilities in connection with the voluntary mediation process authorized by this paragraph. (c) The plan's grievance system shall include a system of aging of complaints that are pending and unresolved for 30 days or more. On or before January 1, 1997, the plan shall provide a quarterly report to the commissioner with a brief explanation of the reasons each complaint is pending and unresolved for 30 days or more. (d) Subject to subparagraph (C) of paragraph (1) of subdivision (b), the grievance, complaint, or resolution procedures authorized by this section shall be in addition to any other procedures that may be available to any person, and failure to pursue, exhaust, or engage in the procedures described in this section shall not preclude the use of any other remedy provided by law. (e) Nothing in this section shall be construed to allow the submission to the department of any provider complaint or grievance under this section. However, as part of a provider's duty to advocate for medically appropriate health care for his or her patients pursuant to Sections 510 and 2056 of the Business and Professions Code, nothing in this subdivision shall be construed to prohibit a provider from contacting and informing the department about any concerns he or she has regarding compliance with or enforcement of this chapter. SEC. 2.5. Section 1368.01 is added to the Health and Safety Code, to read: 1368.01. (a) The grievance system shall require the plan to resolve grievances within 30 days whenever possible and shall require the plan to provide enrollees and subscribers with a written statement on the disposition or pending status of the grievance within 30 days of the plan's receipt of the grievance. (b) The grievance system shall include a requirement for expedited plan review of grievances for cases involving an imminent and serious threat to the health of the patient, including, but not limited to, potential loss of life, limb, or major bodily function. When the plan has notice of a case requiring expedited review, the grievance system shall require the plan to immediately inform enrollees and subscribers in writing of their right to notify the department of the grievance. The grievance system shall also require the plan to provide enrollees, subscribers, and the department with a written statement on the disposition or pending status of the grievance no later than five days from receipt of the grievance. SEC. 3. Section 1368.02 is added to the Health and Safety Code, to read: 1368.02. (a) The commissioner shall establish and maintain a toll-free telephone number for the purpose of receiving complaints regarding health care service plans regulated by the commissioner. (b) Every health care service plan shall publish the toll-free number required by this section on every new plan contract, on every evidence of coverage, on copies of plan grievance procedures, on plan complaint forms, and on all written notices to enrollees required under the grievance process of the plan. The toll-free number shall be displayed by the plan in each of these documents in 12-point boldface type in the following regular type statement: "The California Department of Corporations is responsible for regulating health care service plans. The department has a toll-free telephone number (1-800-telephone number) to receive complaints regarding health plans. If you have a grievance against the health plan, you should contact the plan and use the plan's grievance process. If you need the department's help with a complaint involving an emergency grievance or with a grievance that has not been satisfactorily resolved by the plan, you may call the department' s toll-free telephone number." (c) If the plan's revised evidence of coverage is not published and distributed to all enrollees on or before April 1, 1996, the plan shall provide all enrollees with the statement specified in subdivision (b) by April 1, 1996, in a written notification document dealing solely with the grievance process. Each plan's revised evidence of coverage shall include the statement specified in subdivision (b) no later than January 1, 1997. SEC. 4. Section 1368.03 is added to the Health and Safety Code, to read: 1368.03. (a) The department may require enrollees and subscribers to participate in a plan's grievance process for up to 60 days before pursuing a complaint through the department. However, the department may not impose this waiting period in cases covered by subdivision (b) of Section 1368.01 or in any other case where the department determines that an earlier review is warranted. (b) Notwithstanding subdivision (a), the department may refer any grievance or complaint to the State Department of Health Services, the Department of Aging, the federal Health Care Financing Administration, or any other appropriate governmental entity for investigation and resolution. SEC. 5. Section 1368.04 is added to the Health and Safety Code, to read: 1368.04. (a) The commissioner shall , as appropriate, investigate and take enforcement action against plans regarding complaints by enrollees and subscribers. The commissioner shall periodically evaluate complaints to determine if any audit, investigative, or enforcement actions should be undertaken by the department. (b) The commissioner may, after appropriate notice and opportunity for hearing, levy an administrative penalty, by order, in an amount not to exceed two hundred fifty thousand dollars ($250,000) if the commissioner determines that a health care service plan has knowingly committed, or has performed with such frequency as to indicate a general business practice, any of the following: (1) Repeated failure to act promptly and reasonably to investigate and resolve grievances in accordance with Section 1368.01. (2) Repeated failure to act promptly and reasonably to resolve grievances when the obligation of the plan to the enrollee or subscriber is reasonably clear. (c) The administrative penalties available to the commissioner pursuant to this section are not exclusive, and may be sought and employed in any combination with civil, criminal, and other administrative remedies deemed warranted by the commissioner to enforce this chapter. (d) The administrative penalties authorized pursuant to this section shall be paid to the State Corporations Fund. SEC. 6. Section 1380 of the Health and Safety Code is amended to read: 1380. (a) The department shall conduct periodically an onsite medical survey of the health delivery system of each plan. The survey shall include a review of the procedures for obtaining health services, the procedures for regulating utilization, peer review mechanisms, internal procedures for assuring quality of care, and the overall performance of the plan in providing health care benefits and meeting the health needs of the subscribers and enrollees. (b) The survey shall be conducted by a panel of qualified health professionals experienced in evaluating the delivery of prepaid health care. The department shall be authorized to contract with professional organizations or outside personnel to conduct medical surveys and these contracts shall be on a noncompetitive bid basis and shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code. These organizations or personnel shall have demonstrated the ability to objectively evaluate the delivery of health care by plans or health maintenance organizations. (c) Surveys performed pursuant to this section shall be conducted as often as deemed necessary by the commissioner to assure the protection of subscribers and enrollees, but not less frequently than once every three years. Nothing in this section shall be construed to require the survey team to visit each clinic, hospital office, or facility of the plan. To avoid duplication, the commissioner shall employ, but is not bound by, the following: (1) For hospital-based health care service plans, to the extent necessary to satisfy the requirements of this section, the findings of inspections conducted pursuant to Section 1279. (2) For health care service plans contracting with the State Department of Health Services pursuant to the Waxman-Duffy Prepaid Health Plan Act, the findings of reviews conducted pursuant to Section 14456 of the Welfare and Institutions Code. (3) To the extent feasible, reviews of providers conducted by professional standards review organizations, and surveys and audits conducted by other governmental entities. (d) Nothing in this section shall be construed to require the medical survey team to review peer review proceedings and records conducted and compiled under Section 1370 or medical records. However, the commissioner shall be authorized to require onsite review of these peer review proceedings and records or medical records where necessary to determine that quality health care is being delivered to subscribers and enrollees. Where medical record review is authorized, the survey team shall insure that the confidentiality of physician-patient relationship is safeguarded in accordance with existing law and neither the survey team nor the commissioner or the commissioner's staff may be compelled to disclose this information except in accordance with the physician-patient relationship. The commissioner shall ensure that the confidentiality of the peer review proceedings and records is maintained. The disclosure of the peer review proceedings and records to the commissioner or the medical survey team shall not alter the status of the proceedings or records as privileged and confidential communications pursuant to Sections 1370 and 1370.1. (e) The procedures and standards utilized by the survey team shall be made available to the plans prior to the conducting of medical surveys. (f) During the survey the members of the survey team shall examine the complaint files kept by the plan pursuant to Section 1368. The survey report issued pursuant to subdivision (i) shall include a discussion of the plan's record for handling complaints. (g) During the survey the members of the survey team shall offer such advice and assistance to the plan as deemed appropriate. (h) (1) Survey results shall be publicly reported by the commissioner as quickly as possible but no later than 180 days following the completion of the survey unless the commissioner determines, in his or her discretion, that additional time is reasonably necessary to fully and fairly report the survey results. The commissioner shall provide the plan with an overview of survey findings and notify the plan of deficiencies found by the survey team at least 90 days prior to the release of the public report. (2) Reports on all surveys, deficiencies, and correction plans shall be open to public inspection except that no surveys, deficiencies, or correction plans shall be made public unless the plan has had an opportunity to review the report and file a response within 45 days of the date that the department provided the report to the plan. After reviewing the plan's response, the commissioner shall issue a final report that excludes any survey information and legal findings and conclusions determined by the commissioner to be in error, describes compliance efforts, identifies deficiencies that have been corrected by the plan by the time of the commissioner's receipt of the plan's 45-day response, and describes remedial actions for deficiencies requiring longer periods to the remedy required by the commissioner or proposed by the plan. (3) The final report shall not include a description of "acceptable" or of "compliance" for any uncorrected deficiency. (4) Upon making the final report available to the public, a single copy of a summary of the final report's findings shall be made available free of charge by the department to members of the public, upon request. Additional copies of the summary may be provided at the department's cost. The summary shall include a discussion of compliance efforts, corrected deficiencies, and proposed remedial actions. (5) If requested by the plan, the commissioner shall append the plan's response to the final report issued pursuant to paragraph (2), and shall append to the summary issued pursuant to paragraph (4) a brief statement provided by the plan summarizing its response to the report. The plan may modify its response or statement at any time and provide modified copies to the department for public distribution no later than 10 days from the date of notification from the department that the final report will be made available to the public. The plan may file an addendum to its response or statement at any time after the final report has been made available to the public. The addendum to the response or statement shall also be made available to the public. (6) Any information determined by the commissioner to be confidential pursuant to statutes relating to the disclosure of records, including the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), shall not be made public. (i) (1) The commissioner shall give the plan a reasonable time to correct deficiencies. Failure on the part of the plan to comply to the commissioner's satisfaction shall constitute cause for disciplinary action against the plan. (2) No later than 18 months following release of the final report required by subdivision (h), the department shall conduct a follow-up review to determine and report on the status of the plan's efforts to correct deficiencies. The department's follow-up report shall identify any deficiencies reported pursuant to subdivision (h) that have not been corrected to the satisfaction of the commissioner. (3) If requested by the plan, the commissioner shall append the plan's response to the follow-up report issued pursuant to paragraph (2). The plan may modify its response at any time and provide modified copies to the department for public distribution no later than 10 days from the date of notification from the department that the follow-up report will be made available to the public. The plan may file an addendum to its response at any time after the follow-up report has been made available to the public. The addendum to the response or statement shall also be made available to the public. (j) The commissioner shall provide to the plan and to the executive officer of the Board of Dental Examiners a copy of information relating to the quality of care of any licensed dental provider contained in any report described in subdivisions (h) and (i) that, in the judgment of the commissioner, indicates clearly excessive treatment, incompetent treatment, grossly negligent treatment, repeated negligent acts, or unnecessary treatment. Any confidential information provided by the commissioner shall not be made public pursuant to this subdivision. Notwithstanding any other provision of law, the disclosure of this information to the plan and to the executive officer shall not operate as a waiver of confidentiality. There shall be no liability on the part of, and no cause of action of any nature shall arise against, the State of California, the Department of Corporations, the Commissioner of Corporations, the Board of Dental Examiners, or any officer, agent, employee, consultant, or contractor of the state or the department or the board for the release of any false or unauthorized information pursuant to this section, unless the release of that information is made with knowledge and malice. (k) Nothing in this section shall be construed as affecting the commissioner's authority pursuant to Article 7 (commencing with Section 1386) or Article 8 (commencing with Section 1390) of this chapter. {- SEC. 7. Item 0110-001-001 of Section 2.00 of the Budget Act of 1995 (Chapter 303 of the Statutes of 1995) is amended to read: -} {- SEC. 8. Item 0120-011-001 of Section 2.00 of the Budget Act of 1995 (Chapter 303 of the Statutes of 1995) is amended to read: -} {- SEC. 9. -} {+ SEC. 7. +} The Commissioner of Corporations shall submit to the Legislature by March 1, 1997, a report on the administrative implementation of the responsibilities imposed by this act. The report shall include a description of increased assessments imposed on plans to implement these responsibilities, increased staffing and other resources attributable to these responsibilities, and any redirection of staff and other resources from other functions of the Department of Corporations, from the levels in place during the 1994-95 fiscal year, to carry out these responsibilities. The department shall make available, at no charge, to each health care service plan licensed pursuant to Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code and to each member of the public who so requests, a single copy of the report required by this section. {- SEC. 10. -} {+ SEC. 8. +} The sum of one million four hundred forty-four thousand dollars ($1,444,000) is hereby appropriated from the State Corporations Fund for the support of the Department of Corporations to implement the provisions of this act. {- SEC. 11. -} {+ SEC. 9. +} No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.