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SENATE BILL 1832 (BERGESON – 1994)

CHAPTER 614, STATUTES OF 1994, SB 1832

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Health and Safety Code section 1371 was amended; sections 1363.5, 1370.2, 1371.4, 1371.8, 1373.65, 1374.8, and 1397.5 were added to the Health and Safety Code; and sections 791.27, 796.04, and 11512.55 were added to the Insurance Code in 1994 following legislative approval of Senate Bill 1832.  (See Exhibit A, #1k)  Senate Bill 1832 was introduced by Senator Marian Bergeson on February 24, 1994.   (See Exhibit A, #1a)  According to the analysis prepared for the Senate Committee on Insurance, Claims and Corporations, the measure was requested “. . . in response to increasing concerns over the quality of medical care and the treatment provided to physicians by health care plans.”  (See Exhibit A, #3, page 3) 

Senate Bill 1832 was assigned to the Senate Committee on Insurance, Claims and Corporations where policy issues raised by the measure were considered.  (See Exhibit A, #3)  After approval by that Committee, the Senate Committee on Appropriations examined the bill’s fiscal ramifications.  (See Exhibit A, #5)  The Senate amended the bill on April 4, April 14, May 2, and May 17, 1994.  (See Exhibit A, #1b through #1e and #2)


While in the Assembly, the Committee on Health considered the policy issues raised by the bill.  (See Exhibit A, #9)  Subsequent to approval by that Committee, the measure was assigned to the Assembly Committee on Ways and Means which examined its fiscal implications.  (See Exhibit A, #10)  Five amendments were made to Senate Bill 1832 by the Assembly, on June 16, August 8, August 12, August 25, and August 29, 1994.  (See Exhibit A, #1f through #1j and #2)  The Senate approved the Assembly amendments, and Senate Bill 1832 was forwarded to Governor Pete Wilson who approved the bill on September 15, 1994.  The bill was thereafter recorded by the Secretary of State as Chapter 614 of the Statutes of 1994.  (See Exhibit A, #1k and #2)

Senate Bill 1832 was summarized in the Enrolled Bill Report to the Governor prepared by the Office of Insurance Advisor as follows: 

This bill attempts to deal with numerous problems which patients and providers have experienced in dealing with managed care plans and insurers.  It deals with issues regarding utilization review, complaints, and authorization for emergency room treatment.
(See Exhibit A, #15, document PE-16)