BILL NUMBER: SB 1196INTRODUCED BILL TEXT INTRODUCED BY Senator Hernandez FEBRUARY 22, 2012 An act to amend Section 1381 of the Health and Safety Code, relating to health care coverage. LEGISLATIVE COUNSEL'S DIGEST SB 1196, as introduced, Hernandez. Health care service plans: inspection of records. Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensing and regulation of health care service plans by the Department of Managed Health Care. Under existing law, the records, books, and papers of a health care service plan, and of any provider or subcontractor providing health care services, must be open for inspection, as specified, by the Director of the Department of Managed Health Care. This bill would make technical, nonsubstantive changes to these provisions. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1381 of the Health and Safety Code is amended to read: 1381. (a) All records, books, and papers of a health care service plan, management company, solicitor, solicitor firm, and any provider or subcontractor providing health care or other services to a health care service plan, management company, solicitor, or solicitor firm shall be open to inspection during normal business hours by the director. (b) To the extent feasible, allsuchrecords, books, and papers described in subdivision (a) shall be located in this state. In examiningsuchrecords outside this state, the director shall consider the cost to the health care service plan, consistent with the effectiveness of the director' s examination, and may upon reasonable notice require thatsuchthe records, books and papers, or a specified portion thereof, be made available for examination in this state, or that a true and accurate copy ofsuchthe records, books and papers, or a specified portion thereof, be furnished to the director.