California 2017-2018 Regular Session Status: Enacted

AB 595 — Health care service plans: mergers and acquisitions.

Last action — Chaptered by Secretary of State - Chapter 292, Statutes of 2018.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 14, 2017. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law requires every nonprofit health care service plan applying to restructure, as defined, or convert its activities to secure the approval of the Director of the Department of Managed Health Care. Under existing law, a health care service plan is required to notify the director of any material modifications of its plan or operations, as specified. This bill would require a health care service plan that intends to merge or consolidate with, or enter into an agreement resulting in its purchase, acquisition, or control by, any entity, as defined, including another health care service plan or a licensed health insurer, to give notice to, and secure prior approval from, the Director of the Department of Managed Health Care. The bill would require the health care service plan to meet specified requirements and to provide information necessary for the director to make the determination to approve, conditionally approve, or disapprove the transaction or agreement, as specified. The bill also would require the department, prior to approval, conditional approval, or denial of the proposed agreement or transaction, to hold a public meeting on the proposal and make specified findings. The bill would require the director to prepare a statement if the director determines that a material amount of the health care service plan's assets are subject to merger, consolidation, acquisition, purchase, or control, as specified, and would require the department to make the statement available prior to the public meeting. The bill would authorize the director to give conditional approval for a transaction or agreement as described in the bill, under specified circumstances. The bill would deem any material modification filed by a health care service plan that is a transaction or agreement as described in the bill to be subject to specified fees and costs related to the approval, conditional approval, or disapproval process. Because a willful violation of the bill's provisions applicable to a health care service plan would be a crime, it 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.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 292, Statutes of 2018.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 53. Noes 23. Page 6643.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 24. Noes 13. Page 5654.).

  7. Read second time. Ordered to third reading.

  8. Read second time and amended. Ordered returned to second reading.

  9. From committee: Amend, and do pass as amended. (Ayes 6. Noes 1.) (August 16).

  10. In committee: Referred to APPR. suspense file.

  11. Re-referred to Com. on APPR.

  12. Withdrawn from committee.

  13. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

  14. From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 1.) (June 20). Re-referred to Com. on JUD.

  15. In committee: Hearing postponed by committee.

  16. Referred to Coms. on HEALTH and JUD.

  17. In Senate. Read first time. To Com. on RLS. for assignment.

  18. Read third time. Passed. Ordered to the Senate. (Ayes 54. Noes 22. Page 3861.)

  19. Read second time. Ordered to third reading.

  20. Read second time and amended. Ordered returned to second reading.

  21. From committee: Amend, and do pass as amended. (Ayes 13. Noes 4.) (January 18).

  22. In committee: Hearing postponed by committee.

  23. In committee: Set, first hearing. Referred to APPR. suspense file.

  24. Re-referred to Com. on APPR. pursuant to Assembly Rule 96.

  25. From committee: Do pass and re-refer to Com. on INS. (Ayes 12. Noes 2.) (April 4). Re-referred to Com. on INS.

  26. Re-referred to Com. on HEALTH.

  27. From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

  28. Referred to Coms. on HEALTH and INS.

  29. From printer. May be heard in committee March 17.

  30. Read first time. To print.

Sponsors

  • Wood · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 10 voted No

Sponsors (1)

  • Wood

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 595 WOOD Concurrence in Senate Amendments

Passed 53 Yea · 23 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 371803
Democratic 15100
Republican 1401
Total 532304
% of votes cast 66%29%0%5%
How each member voted (80)
Member Party Vote
Acosta — Nay
Baker — Nay
Bigelow — Nay
Bloom — Yea
Brough — Nay
Harper — Nay
Jones-Sawyer — Yea
Mathis — Nay
Mullin — Yea
Obernolte — Nay
Rendon — Yea
Steinorth — Nay
Ting — Yea
Wood — Yea
Eggman — Yea
Burke — Yea
Gonzalez Fletcher — Yea
Friedman — Yea
Salas — Yea
Gray — Yea
Gloria — Yea
Holden — Yea
Rivas — Yea
Kamlager-Dove — Yea
Levine — Yea
Fong — Nay
Low — Yea
Chau — Yea
Chiu — Yea
Chu — Yea
Cooley — Yea
Maienschein — Yea
Mayes — Nay
McCarty — Yea
Medina — Yea
Nazarian — Yea
O'Donnell — Yea
Quirk — Yea
Rodriguez — Yea
Santiago — Yea
Thurmond — Yea
Voepel — Nay
Weber — Yea
Rubio — Not Voting
Kiley — Nay
Melendez — Nay
Chávez — Nay
Waldron — Nay
Cooper — Yea
Cunningham — Nay
Daly — Not Voting
Frazier — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Mark Stone — Yea
Travis Allen — Nay
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Nay
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Yea
Lackey, Tom Republican Nay

Official roll call →

3rd Reading AB595 Wood By Monning

Passed 24 Yea · 13 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 201203
Democratic 4100
Total 241303
% of votes cast 60%33%0%8%
How each member voted (40)
Member Party Vote
Anderson — Nay
Beall — Yea
Hill — Yea
Lara — Yea
Morrell — Nay
Pan — Yea
Vidak — Nay
Wieckowski — Yea
Cannella — Nay
Delgado — Yea
Glazer — Not Voting
Hernandez — Yea
Mitchell — Yea
Atkins — Yea
Portantino — Yea
Hertzberg — Yea
De León — Yea
Allen — Yea
Hueso — Yea
Chang — Nay
Bates — Nay
Bradford — Yea
Dodd — Yea
Leyva — Yea
Monning — Yea
Moorlach — Nay
Nielsen — Nay
Roth — Yea
Skinner — Yea
Wilk — Nay
Fuller — Nay
Galgiani — Not Voting
Beth Gaines — Nay
Bill Berryhill — Not Voting
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Do pass as amended

Passed 6 Yea · 1 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5100
Democratic 1000
Total 6100
% of votes cast 86%14%0%0%
How each member voted (7)
Member Party Vote
Bates — Nay
Bradford — Yea
Hill — Yea
Nielsen — Yea
Portantino — Yea
Beall — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Hill — Yea
Nielsen — Yea
Portantino — Yea
Beall — Yea
Bradford — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Subjects

healthcare health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 595 do?
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law requires every nonprofit health care service plan applying to restructure, as defined, or convert its activities to secure the approval of the Director of the Department of Managed Health Care. Under existing law, a health care service plan is required to notify the director of any material modifications of its plan or operations, as specified. This bill would require a health care service plan that intends to merge or consolidate with, or enter into an agreement resulting in its purchase, acquisition, or control by, any entity, as defined, including another health care service plan or a licensed health insurer, to give notice to, and secure prior approval from, the Director of the Department of Managed Health Care. The bill would require the health care service plan to meet specified requirements and to provide information necessary for the director to make the determination to approve, conditionally approve, or disapprove the transaction or agreement, as specified. The bill also would require the department, prior to approval, conditional approval, or denial of the proposed agreement or transaction, to hold a public meeting on the proposal and make specified findings. The bill would require the director to prepare a statement if the director determines that a material amount of the health care service plan's assets are subject to merger, consolidation, acquisition, purchase, or control, as specified, and would require the department to make the statement available prior to the public meeting. The bill would authorize the director to give conditional approval for a transaction or agreement as described in the bill, under specified circumstances. The bill would deem any material modification filed by a health care service plan that is a transaction or agreement as described in the bill to be subject to specified fees and costs related to the approval, conditional approval, or disapproval process. Because a willful violation of the bill's provisions applicable to a health care service plan would be a crime, it 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.
Who sponsors AB 595?
AB 595 is sponsored by Wood.
What is the current status of AB 595?
This bill has been enacted into law. Introduced February 14, 2017. Enacted.
Where can I track AB 595?
Track AB 595 free on One Click Politics — get push/email alerts when it moves.

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