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AB-1384 Insurance Commissioner: restriction on travel payments or reimbursements.(2001-2002)



Current Version: 08/20/01 - Amended Senate

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AB1384:v96#DOCUMENT

Amended  IN  Assembly  April 24, 2001
Amended  IN  Senate  July 03, 2001
Amended  IN  Senate  August 20, 2001

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Assembly Bill
No. 1384

Introduced  by  Assembly Member Cox

February 23, 2001

An act to add Section 12903.1 12903.2 to the Insurance Code, relating to the Insurance Commissioner.


LEGISLATIVE COUNSEL'S DIGEST


AB 1384, as amended, Cox. Insurance Commissioner: restriction on travel payments or reimbursements.
Existing law regulates the business of insurance in California and provides for the election of an Insurance Commissioner who, among other things, is charged with the duty of enforcing the laws regulating the business of insurance. Under existing law, the commissioner is authorized to incur traveling and other expenses as are necessary, convenient, or advisable for the performance of his or her duties.
This bill would prohibit the commissioner from accepting in any calendar year travel reimbursements or payments, except under certain conditions, from an entity or a private attorney or law firm with a client subject to regulation by the commissioner, from a private attorney or law firm that is under contract or consideration for a contract to represent either the department or commissioner in his or her official capacity, or from a private attorney or law firm seeking advocacy fees under a specified provision of existing law a payment, reimbursement, or in-kind donation for travel expenses from certain sources, except with respect to travel for the purpose of making a speech or appearance under certain conditions. The bill would authorize the Attorney General or any other resident of this state to bring a civil action to enforce these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

Section 12903.1 is added to the Insurance Code,

Section 12903.2 is added to the Insurance Code, to read:

12903.2.
 (a) The commissioner shall not accept a payment, reimbursement, or in-kind donation for travel expenses from any source described in subdivision (b), except if in compliance with all of the following:
(1) The travel is for the purpose of making a speech or appearance.
(2) The payment, reimbursement, or in-kind donation is only for expenses incurred on any of the following: the day before, the day of, and the day after the day the speech or appearance was made.
(3) If the commissioner is making more than one speech or appearance during the same period of travel, the payment, reimbursement, or in-kind donation shall in no event cover expenses for more than five consecutive days.
(b) This section applies to all of the following:
(1) A single source that is subject to regulation by the commissioner.
(2) A private attorney or law firm that is under contract or that is bidding on or that is under consideration for a contract to represent either the department or the commissioner in an official capacity.
(3) A private attorney or law firm that seeks to be awarded or that has been awarded attorney fees under subdivision (b) of Section 1861.10.
(4) A private attorney or law firm that has a client subject to regulation by the commissioner.
(5) Any representative of a person or entity described in paragraphs (1) to (4), inclusive.
(c) This section does not exempt the commissioner from any provision of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code) or any other provision of law that regulates or relates to the receipt of gifts or income by public officials.
(d) This section does not apply to payments, reimbursements, or in-kind donations for travel and related expenses that would constitute a campaign contribution or expenditure as defined in the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code) and related regulations.
(e) (1) The Attorney General or any other resident of this state may bring a civil action for a violation of this section. The court may assess a civil penalty against the commissioner in the amount of three times the amount of the unlawful payment, reimbursement, or in-kind donation received by the commissioner.
(2) An action under this subdivision shall be filed within five years of the date on which the violation is alleged to have occurred. If the commissioner engages in fraudulent concealment, the five-year period shall be tolled for the period of the fraudulent concealment. For the purposes of this paragraph, “fraudulent concealment” means that the commissioner has knowingly concealed facts related to his or her travel expenditures or reimbursements.

to read:

12903.1.

(a)The commissioner may not accept in any calendar year payments or reimbursements for travel, except for payments and reimbursements for expenses incurred during the days of a speaking engagement or appearance and for those expenses incurred the day prior to, and the day after the, engagement or appearance, so long as the total number of consecutive days that may be paid for or reimbursed for any one engagement or appearance does not exceed five consecutive business days, from any of the following:

(1)A single source that is subject to regulation by the commissioner.

(2)A private attorney or law firm that is under contract or is bidding on or under consideration for a contract to represent either the department or the commissioner in his or her official capacity.

(3)A private attorney or law firm that seeks to be awarded, or has been awarded, advocacy fees under subdivision (b) of Section 1861.10.

(4)A private attorney or law firm that has a client subject to regulation by the commissioner.

(b)For purposes of this section, any payment or reimbursement provided by a representative of a person or entity subject to regulation by the commissioner shall be deemed to be provided by the regulated person or entity.