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Senate Bill 21 (Figueroa – 1999)

Chapter 536, Statutes of 1999

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Senate Bill 21 enacted the Managed Health Care Insurance Accountability Act of 1999 adding only section 3428 to the Civil Code.  (See Exhibit A, #1g)  Senator Liz Figueroa introduced this bill on December 7, 1998 and it was co-sponsored by the California Nurses Association, Consumers for Quality Care and the Consumers Attorneys of California.  (See Exhibit A, #1a and #3, pages 5 and 18) 

Senate Bill 21 was assigned to the Senate Committee on Judiciary and the Assembly Committee on Judiciary where policy issues raised by the bill were considered.  (See Exhibit A, #3 and #8)  The fiscal ramifications of the bill were considered by the Senate Committee on Appropriations and the Assembly Committee on Appropriations.  (See Exhibit A, #5 and #10)  Five amendments were made to Senate Bill 21 as it was considered by the Legislature.  (See Exhibit A, #1b through #1f and #2)  Subsequent to legislative approval, Governor Gray Davis signed Senate Bill 21 on September 27, 1999, and it was recorded by the Secretary of State on the following day as Chapter 536 of the Statutes of 1999.  (See Exhibit A, #1g and #2)

As indicated above, Senate Bill 21 enacted the “Managed Health Care Insurance Accountability Act of 1999.”  (See Exhibit A, #1g, Section 1)  You will see an uncodified section 2 of the bill that contains findings and declarations which, in part, provided the following statement of intent:

(b)  It is the intent of the Legislature in enacting this act to ensure that adequate state law remedies exist for all persons who are subject to the wrongful acts of those entities that contract to provide insurance for the life, health, and disability of California citizens.  The existence of these remedies and the deterrent effects of these remedies are necessary to protect the health and safety of the residents of this state.
(See Exhibit A, #1g, page 3043)