Assembly Bill 1236 (Chappie – 1967)
Chapter 311, Statutes of 1967 - AB 1236
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As enacted Assembly Bill 1236 was a single-section bill that amended only Insurance Code section 10133. (See Exhibit #1c) Assembly member Eugene Chappie introduced the bill on March 27, 1967 as a result of complaints from hospitals in his district. (See Exhibits #1a and #4, document PE-8)
Assembly Bill 1236 was assigned to the Assembly Committee on Finance and Insurance and the Senate Committee on Insurance and Financial Institutions where policy issues raised by the bill were considered. (See Exhibit #2) One amendment was made to Assembly Bill 1236. (See Exhibits #1b and #2) Subsequent to legislative approval, Governor Ronald Reagan signed the bill on June 13, 1967 and it was recorded by the Secretary of State on that day as Chapter 311 of the Statutes of 1967. (See Exhibit #1c)
The Summary Digest of Statutes Enacted prepared by Legislative Counsel provides the following digest of Assembly Bill 1236:
… Amends Sec. 10133, Ins.C., re health insurance.
Makes mandatory, rather than permissive, that insurance companies pay persons providing hospitalization, medical, or surgical aid upon assignment of a group insured party’s benefits to the person or persons furnishing the hospitalization, medical, or surgical aid. Provides that the amount of the payment shall not exceed the amount of benefit by the policy with respect to the service or billing of the provider of care, and the amount of payment pursuant to one or more assignments shall not exceed the amount of expense for hospitalization, medical, or surgical care.
(See Exhibit #5, page 52)