California Senate Bill SB1543 Amended / Bill

 BILL NUMBER: SB 1543AMENDED BILL TEXT AMENDED IN SENATE MARCH 27, 2012 INTRODUCED BY Senator Emmerson FEBRUARY 24, 2012  An act to amend Section 1367 of the Health and Safety Code, relating to health care service plans.   An act to amend Sections 1158 and 1563 of the Evidence Code, and to amend Sections 123105 and 123110 of the Health and Safety Code, relating to patient records.  LEGISLATIVE COUNSEL'S DIGEST SB 1543, as amended, Emmerson.  Health care service plans.   Patient records: inspection and copies.   (1) Existing law authorizes an attorney or his or her representative to review and obtain certain patient records prior to filing any legal action if written authorization is given by the patient. Further, existing law prohibits the medical provider from copying the records if the attorney has employed a private photocopying service, as specified.   This bill would prescribe the fees for a health care provider or medical records management company to charge when providing copies of medical records to an attorney. This bill would also provide that an electronic copy of a medical record is required only if the entire request can be reproduced from an electronic health record system and can be delivered electronically. Further, the bill would require the Secretary of California Health and Human Services to make annual determinations concerning any increase or decrease in the fees in accordance with the Consumer Price Index prepared by the United States Department of Labor.   (2) Existing law authorizes issuance of a subpoena for the personal records of any consumer, as defined, including medical and employment records. The party requesting the records is only required to pay one witness fee and one mileage fee to a witness or witness' business when requesting business records.   This bill would require a requesting party to pay a witness fee and mileage fee whenever a subpoena requires a witness, and would require the requesting party to pay for records produced in response to a subpoena duces tecum, including when those records are allowed in lieu of a witness appearance. This bill would also prescribe the costs to be paid in advance by the requesting party. Further, this bill would authorize the Secretary of California Health and Human Services to make annual determinations concerning any increase or decrease in those fees in accordance with the Consumer Price Index prepared by the United States Department of Labor.   (3) Existing law requires that, following a written request to his or her health care provider, a patient or his or her representative may inspect and obtain copies of patient records after paying a specified fee. If the patient or patient's representative presents proof to the provider that the records are needed to support an appeal regarding eligibility for a public benefit program, the health care provider must provide one copy of the relevant portion of the patient's record at no charge under specified circumstances. A willful violation of this requirement by certain health care providers is an infraction.   This bill would prescribe an hourly charge for a health care provider when the provider locates a patient's medical records, makes those records available, and supervises any inspection of the records by the patient or patient's representative, as defined. Further, this bill would prescribe the reproduction costs for the copies of the records, and would provide that an electronic copy of a medical record is only required if the entire request can be reproduced from an electronic health record system and the record can be delivered electronically. This bill would also permit a patient or patient's representative to obtain multiple copies of the relevant portion of the patient's medical record at no charge in public benefit eligibility appeals. Additionally, this bill would require the Secretary of California Health and Human Services to make annual determinations concerning any increase or decrease in the fees in accordance with the Consumer Price Index prepared by the United States Department of Labor.   Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law requires health care service plans to meet certain requirements, including, but not limited to, having the organizational and administrative capacity to provide services to subscribers and enrollees and providing basic health care services, as defined, to those subscribers and enrollees.   This bill would make technical, nonsubstantive changes to that provision.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 1158 of the   Evidence Code   is amended to read:  1158.  (a)    Whenever  , prior to the filing of any action or the appearance of a defendant in an action,  an  attorney at law   attorney at law  or his or her  representative   agent  presents a written authorization  therefor  signed by an adult patient, by the guardian or conservator of his or her person or estate, or, in the case of a minor, by a parent or guardian of the minor, or by the personal representative or an heir of a deceased patient, or a copy thereof, a physician and surgeon, dentist, registered nurse, dispensing optician, registered physical therapist, podiatrist, licensed psychologist, osteopathic physician and surgeon, chiropractor, clinical laboratory bioanalyst, clinical laboratory technologist, or pharmacist or pharmacy, duly licensed as such under the laws of the state, or a licensed hospital, shall make  all of   , or shall have its medical records management company make, a copy of  the patient's records under  his, hers or its   the person's or entity's  custody or control available for  inspection and copying by  the  attorney at law   attorney at law  or his  ,  or her  , representative,   agent  promptly upon the presentation of the written authorization.  Failure to make the records available may subject the person or entity having custody or control of the records to liability for all reasonable expenses, including attorney's fees incurred in any proceeding to enforce this section.   (b) Fees for copies of medical records shall be as follows:   (1) For a request by an attorney, a search and retrieval fee of thirty dollars ($30), plus a fee of fifty cents ($0.50) per page for the first 25 pages, and twenty-five cents ($0.25) for each additional page.   (2) An electronic copy of a patient's medical record shall only be required if the entire request can be reproduced from an electronic health record system and, if it is requested, can be delivered electronically. If a requester receives the records electronically, no postage may be charged.   (c) On January 1 of each year beginning in 2013, all amounts in subdivision (b) shall be increased or decreased by the average percentage of increase or decrease in the Consumer Price Index for All Urban Consumers (United States city average, all items), prepared by the United States Department of Labor, Bureau of Labor Statistics, for the 12-calendar-month period prior to the immediately preceding first day of January over the immediately preceding 12-calendar-month period, as reported by the bureau. The Secretary of California Health and Human Services shall make this determination and adjust the amounts accordingly. The secretary shall provide a list of the adjusted amounts to any party upon request, and the California Health and Human Services Agency shall make the list available to the public on its Internet Web site no later than December 31 of each calendar year.   (d) A health care provider or medical records management company may enter into a contract with a patient's representative for the copying of medical records at a fee other than as provided in subdivision (b). Nothing in this section requires or precludes the distribution of medical records at a contractual cost or fee to insurers authorized to provide health, sickness, or property or casualty insurance in this state, or to corporations having a certificate of authority holding a certificate of authority under applicable law.   (e) A patient who wishes to examine all or part of his or her medical record shall submit a written request to the health provider pursuant to Section 123110 of the Health and Safety Code.   No copying may be performed by any medical provider or employer enumerated above, or by an agent thereof, when the requesting attorney has employed a professional photocopier or anyone identified in Section 22451 of the Business and Professions Code as his or her representative to obtain or review the records on his or her behalf. The presentation of the authorization by the agent on behalf of the attorney shall be sufficient proof that the agent is the attorney's representative.   Failure to make the records available, during business hours, within five days after the presentation of the written authorization, may subject the person or entity having custody or control of the records to liability for all reasonable expenses, including attorney' s fees, incurred in any proceeding to enforce this section.   All reasonable costs incurred by any person or entity enumerated above in making patient records available pursuant to this section may be charged against the person whose written authorization required the availability of the records.   "Reasonable cost," as used in this section, shall include, but not be limited to, the following specific costs: ten cents ($0.10) per page for standard reproduction of documents of a size 81/2 by 14 inches or less; twenty cents ($0.20) per page for copying of documents from microfilm; actual costs for the reproduction of oversize documents or the reproduction of documents requiring special processing which are made in response to an authorization; reasonable clerical costs incurred in locating and making the records available to be billed at the maximum rate of sixteen dollars ($16) per hour per person, computed on the basis of four dollars ($4) per quarter hour or fraction thereof; actual postage charges; and actual costs, if any, charged to the witness by a third person for the retrieval and return of records held by that third person.   Where the records are delivered to the attorney or the attorney's representative for inspection or photocopying at the record custodian' s place of business, the only fee for complying with the authorization shall not exceed fifteen dollars ($15), plus actual costs, if any, charged to the record custodian by a third person for retrieval and return of records held offsite by the third person.   SEC. 2.   Section 1563 of the   Evidence Code   is amended to read: 1563. (a)  This article shall not be interpreted to require tender or payment of more than   A requesting party shall pay one  witness fee and one mileage fee or other charge  ,  to a witness or witness' business, unless there is an agreement to the contrary between the witness and the requesting party.  A requesting party shall also pay for the reproduction of records produced in response to a subpoena or if allowed in lieu of appearance.  (b) All reasonable costs incurred in a civil proceeding by any witness  which is not a party  with respect to the production of all or any part of business records the production of which is requested pursuant to a subpoena duces tecum  may   shall  be  charged against   paid in advance by  the party serving the subpoena duces tecum. (1) "Reasonable  cost,"   costs,   "  as used in this section, shall include, but not be limited to, the following specific costs  : ten cents ($0.10) per page for standard reproduction of documents of a size 8   1/2   by 14 inches or less; twenty  , and shall apply to all documents reproduced in response to a subpoena:   (A)     Twenty-five  cents  ($0.20)   ($0.25)  per page for copying of documents  from microfilm actual   stored on paper or electronically.   (B)     Fifty cents ($0.50) per page for reproduction of documents stored on microfilm.   (C)     Actual  costs for the reproduction of oversize documents or the reproduction of documents requiring special processing  which are made in response to a subpoena; reasonable clerical   .   (D)     Thirty dollars ($30) for    costs incurred in locating and making the records available  to be billed at the maximum rate of twenty-four dollars ($24) per hour per person, computed on the basis of six dollars ($6) per quarter hour or fraction thereof;   , and actual postage charges as provided by subparagraph (E).   (E)     The  actual postage charges  ; and the   if the record is requested to be mailed.  (F)     The  actual cost, if any, charged to the witness by a third person for the retrieval and return of records held offsite by that third person. (2) The requesting party, or the requesting party's deposition officer, shall not be required to pay those costs or any estimate thereof prior to the time the records are available for delivery pursuant to the subpoena, but the witness may demand payment of costs pursuant to this section simultaneous with actual delivery of the subpoenaed records, and until payment is made, is under no obligation to deliver the records. (3) The witness shall submit an itemized statement for  the  costs  under this subdivision  to the requesting party, or the requesting party's deposition officer, setting forth the reproduction and clerical costs incurred by the witness. Should the costs exceed those authorized in paragraph (1), or the witness refuses to produce an itemized statement of costs as required by  paragraph (3)   this paragraph  , upon demand by the requesting party, or the requesting party' s deposition officer, the witness shall furnish a statement setting forth the actions taken by the witness in justification of the costs. (4) The requesting party may petition the court in which the action is pending to recover from the witness all or a part of the costs paid to the witness, or to reduce all or a part of the costs charged by the witness, pursuant to this subdivision, on the grounds that those costs were excessive  if those costs exceed the costs set forth in paragraph (1) of subdivision (b)  . Upon the filing of the petition the court shall issue an order to show cause and from the time the order is served on the witness the court has jurisdiction over the witness. The court may hear testimony on the order to show cause and if it finds that the costs demanded and collected, or charged but not collected, exceed the amount authorized by this subdivision, it shall order the witness to remit to the requesting party, or reduce its charge to the requesting party by an amount equal to, the amount of the excess. In the event that the court finds the costs excessive and charged in bad faith by the witness, the court shall order the witness to remit the full amount of the costs demanded and collected, or excuse the requesting party from any payment of costs charged but not collected, and the court shall also order the witness to pay the requesting party the amount of the reasonable expenses incurred in obtaining the order including attorney's fees. If the court finds the costs were not excessive, the court shall order the requesting party to pay the witness the amount of the reasonable expenses incurred in defending the petition, including attorney's fees. (5) If a subpoena is served to compel the production of business records and is subsequently withdrawn, or is quashed, modified or limited on a motion made other than by the witness, the witness shall be entitled to reimbursement pursuant to paragraph (1) for all costs incurred in compliance with the subpoena to the time that the requesting party has notified the witness that the subpoena has been withdrawn or quashed, modified or limited. In the event the subpoena is withdrawn or quashed, if those costs are not paid within 30 days after demand therefor, the witness may file a motion in the court in which the action is pending for an order requiring payment, and the court shall award the payment of expenses and attorney's fees in the manner set forth in paragraph (4). (6) Where the records are delivered to the attorney, the attorney' s representative, or the deposition officer for inspection or photocopying at the witness' place of business, the only fee for complying with the subpoena shall not exceed  fifteen dollars ($15),   the fees set forth in paragraph (1) of subdivision (b)  plus the actual cost, if any, charged to the witness by a third person for retrieval and return of records held offsite by that third person. If the records are retrieved from microfilm, the reasonable cost, as defined in paragraph (1), shall also apply. (c) When the personal attendance of the custodian of a record or other qualified witness is required pursuant to Section 1564, in a civil proceeding, he or she shall be entitled to the same witness fees and mileage permitted in a case where the subpoena requires the witness to attend and testify before a court in which the action or proceeding is pending and to any additional costs incurred as provided by subdivision (b).  (d) On January 1 of each year beginning in 2013, all amounts under subdivision (b) shall be increased or decreased by the average percentage of increase or decrease in the Consumer Price Index for All Urban Consumers (United States city average, all items), prepared by the United States Department of Labor, Bureau of Labor Statistics, for the 12-calendar-month period prior to the immediately preceding first day of January over the immediately preceding 12-calendar-month period, as reported by the bureau. The Secretary of California Health and Human Services shall make this determination and adjust the amounts accordingly. The secretary shall provide a list of the adjusted amounts to any party upon request, and the California Health and Human Services Agency shall make the list available to the public on its Internet Web site no later than December 31 of each calendar year.   SEC. 3.   Section 123105 of the   Health and Safety Code   is amended to read:  123105. As used in this chapter: (a) "Health care provider" means any of the following: (1) A health facility licensed pursuant to Chapter 2 (commencing with Section 1250) of Division 2. (2) A clinic licensed pursuant to Chapter 1 (commencing with Section 1200) of Division 2. (3) A home health agency licensed pursuant to Chapter 8 (commencing with Section 1725) of Division 2. (4) A physician and surgeon licensed pursuant to Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code or pursuant to the Osteopathic Act. (5) A podiatrist licensed pursuant to Article 22 (commencing with Section 2460) of Chapter 5 of Division 2 of the Business and Professions Code. (6) A dentist licensed pursuant to Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code. (7) A psychologist licensed pursuant to Chapter 6.6 (commencing with Section 2900) of Division 2 of the Business and Professions Code. (8) An optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) of Division 2 of the Business and Professions Code. (9) A chiropractor licensed pursuant to the Chiropractic Initiative Act. (10) A marriage and family therapist licensed pursuant to Chapter 13 (commencing with Section 4980) of Division 2 of the Business and Professions Code. (11) A clinical social worker licensed pursuant to Chapter 14 (commencing with Section 4990) of Division 2 of the Business and Professions Code. (12) A physical therapist licensed pursuant to Chapter 5.7 (commencing with Section 2600) of Division 2 of the Business and Professions Code. (13) An occupational therapist licensed pursuant to Chapter 5.6 (commencing with Section 2570). (14) A professional clinical counselor licensed pursuant to Chapter 16 (commencing with Section 4999.10) of Division 2 of the Business and Professions Code. (b) "Mental health records" means patient records, or discrete portions thereof, specifically relating to evaluation or treatment of a mental disorder. "Mental health records" includes, but is not limited to, all alcohol and drug abuse records. (c) "Patient" means a patient or former patient of a health care provider. (d) "Patient records" means records in any form or medium maintained by, or in the custody or control of, a health care provider relating to the health history, diagnosis, or condition of a patient, or relating to treatment provided or proposed to be provided to the patient. "Patient records" includes only records pertaining to the patient requesting the records or whose representative requests the records. "Patient records" does not include information given in confidence to a health care provider by a person other than another health care provider or the patient, and that material may be removed from any records prior to inspection or copying under Section 123110 or 123115. "Patient records" does not include information contained in aggregate form, such as indices, registers, or logs. (e) "Patient's representative" or "representative" means any of the following: (1) A parent or guardian of a minor who is a patient. (2) The guardian or conservator of the person of an adult patient. (3) An agent as defined in Section 4607 of the Probate Code, to the extent necessary for the agent to fulfill his or her duties as set forth in Division 4.7 (commencing with Section 4600) of the Probate Code. (4) The beneficiary as defined in Section 24 of the Probate Code or personal representative as defined in Section 58 of the Probate Code, of a deceased patient.  (5) The patient's personal representative as defined in Section 164.502(g) of Title 45 of the Code of Federal Regulations.  (f) "Alcohol and drug abuse records" means patient records, or discrete portions thereof, specifically relating to evaluation and treatment of alcoholism or drug abuse.  SEC. 4.   Section 123110 of the   Health and Safety Code   is amended to read:  123110. (a)  Notwithstanding Section 5328 of the Welfare and Institutions Code, and except as provided in Sections 123115 and 123120, any   Any  adult patient of a health care provider, any minor patient authorized by law to consent to medical treatment, and any  patient   patient's personal  representative shall be entitled to inspect patient records upon presenting to the health care provider a written request for those records and upon payment of  reasonable clerical costs   a charge of twenty-five dollars ($25) per hour  incurred in locating and making the records available  and in supervising any inspection session  . However, a patient who is a minor shall be entitled to inspect patient records pertaining only to health care of a type for which the minor is lawfully authorized to consent. A health care provider shall permit this inspection during business hours within five working days after receipt of the written request. The inspection shall be conducted by the patient or patient's    personal  representative requesting the inspection, who may be accompanied by one other person of his or her choosing. (b) Additionally, any patient or patient's  personal  representative shall be entitled to copies of all or any portion of the patient records that he or she has a right to inspect, upon presenting a written request to the health care provider specifying the records to be copied, together with a fee  to defray the cost of copying   for reproducing the records  , that shall not exceed twenty-five cents ($0.25) per page or fifty cents ($0.50) per page for records that are copied from microfilm and any additional reasonable clerical costs incurred in making the records available.    The patient shall also pay for the actual postage if the patient requests the records to be mailed to him or her.  The health care provider shall ensure that the copies are transmitted  to the patient  within 15 days after receiving the written request.  (1) An electronic copy of a patient's medical record shall only be required if the entire request can be reproduced from an electronic health record system. If a patient receives his or her records electronically, no postage may be charged.   (2) On January 1 of each year beginning in 2013, all amounts under subdivision (a) and this subdivision shall be increased or decreased by the average percentage of increase or decrease in the Consumer Price Index for all urban consumers (United States city average, all items), prepared by the United States Department of Labor, Bureau of Labor Statistics, for the 12-calendar-month period prior to the immediately preceding first day of January over the immediately preceding 12-calendar-month period, as reported by the bureau. The Secretary of California Health and Human Services shall make this determination and adjust the amounts accordingly. The secretary shall provide a list of the adjusted amounts to any party upon request, and the California Health and Human Services Agency shall make the list available to the public on its Internet Web site no later than December 31 of each calendar year.  (c) Copies of X-rays or  tracings  images  derived from electrocardiography, electroencephalography, or electromyography need not be provided to the patient or patient's  personal  representative under this section,  if   provided that  the original X-rays or  tracings   images  are transmitted to another health care provider upon written request of the patient or patient's  personal  representative and within 15 days after receipt of the request. The request shall specify the name and address of the health care provider to whom the records are to be delivered.  All reasonable costs, not exceeding actual costs, incurred by a health care provider in providing copies pursuant to this subdivision may   The costs set forth in subdivision (b) shall  be  charged to   paid by  the patient or  personal  representative requesting the copies. (d) (1) Notwithstanding any provision of this section, and except as provided in Sections 123115 and 123120, any patient or former patient or the patient's  personal  representative shall be entitled to a copy, at no charge, of the relevant portion of the patient's records, upon presenting to the provider a written request,  and   accompanied by  proof that the records are needed to support an appeal regarding eligibility for a public benefit program. These programs shall be the Medi-Cal program, social security disability insurance benefits, and Supplemental Security Income/State Supplementary Program for the Aged, Blind and Disabled (SSI/SSP) benefits. For purposes of this subdivision, "relevant portion of the patient's records" means those records regarding services rendered to the patient during the time period beginning with the date of the patient's initial application for public benefits up to and including the date that a final determination is made by the public benefits program with which the patient's application is pending.  (2) Although a patient shall not be limited to a single request, the patient or patient's representative shall be entitled to no more than one copy of any relevant portion of his or her record free of charge.   (3)   (2)  This subdivision shall not apply to any patient who is represented by a private attorney who is paying for the costs related to the patient's appeal, pending the outcome of that appeal. For purposes of this subdivision, "private attorney" means any attorney not employed by a nonprofit legal services entity. (e) If the patient's appeal regarding eligibility for a public benefit program specified in subdivision (d) is successful,  the hospital or other health care provider may bill  the patient  or the patient's personal representative shall pay the hospital or other health care provider  , at the rates specified in  subdivisions   subdivision  (b)  and (c)  , for the copies of  the   any  medical records previously provided free of charge. (f) If a patient or  his or her   the patient' s personal  representative requests a record pursuant to subdivision (d), the health care provider shall ensure that the copies are transmitted within 30 days after receiving the written request. (g)  This section shall not be construed to preclude a   A    health care provider  from requiring   shall require  reasonable verification of identity prior to permitting inspection or copying of patient records, provided this requirement is not used oppressively or discriminatorily to frustrate or delay compliance with this section. Nothing in this chapter shall be deemed to supersede any rights that a patient or representative might otherwise have or exercise under Section 1158 of the Evidence Code or any other provision of law. Nothing in this chapter shall require a health care provider to retain records longer than required by applicable statutes or administrative regulations. (h) This chapter shall not be construed to render a health care provider liable for the quality of his or her records or the copies provided in excess of existing law and regulations with respect to the quality of medical records. A health care provider shall not be liable to the patient or any other person for any consequences that result from disclosure of patient records as required by this chapter. A health care provider shall not discriminate against classes or categories of providers in the transmittal of X-rays or other patient records, or copies of these X-rays or records, to other providers as authorized by this section. Every health care provider shall adopt policies and establish procedures for the uniform transmittal of X-rays and other patient records that effectively prevent the discrimination described in this subdivision. A health care provider may establish reasonable conditions, including a reasonable deposit fee, to ensure the return of original X-rays transmitted to another health care provider, provided the conditions do not discriminate on the basis of, or in a manner related to, the license of the provider to which the X-rays are transmitted. (i) Any health care provider described in paragraphs (4) to (10), inclusive, of subdivision (a) of Section 123105 who willfully violates this chapter is guilty of unprofessional conduct. Any health care provider described in paragraphs (1) to (3), inclusive, of subdivision (a) of Section 123105 that willfully violates this chapter is guilty of an infraction punishable by a fine of not more than one hundred dollars ($100). The state agency, board, or commission that issued the health care provider's professional or institutional license shall consider a violation as grounds for disciplinary action with respect to the licensure, including suspension or revocation of the license or certificate. (j) This section shall be construed as prohibiting a health care provider from withholding patient records or summaries of patient records because of an unpaid bill for health care services. Any health care provider who willfully withholds patient records or summaries of patient records because of an unpaid bill for health care services shall be subject to the sanctions specified in subdivision (i).  SECTION 1.  Section 1367 of the Health and Safety Code is amended to read: 1367. A health care service plan and, if applicable, a specialized health care service plan shall meet the following requirements: (a) Facilities located in this state including, but not limited to, clinics, hospitals, and skilled nursing facilities to be utilized by the plan shall be licensed by the State Department of Public Health, where licensure is required by law. Facilities not located in this state shall conform to all licensing and other requirements of the jurisdiction in which they are located. (b) Personnel employed by or under contract to the plan shall be licensed or certified by their respective board or agency, where licensure or certification is required by law. (c) Equipment required to be licensed or registered by law shall be so licensed or registered, and the operating personnel for that equipment shall be licensed or certified as required by law. (d) The plan shall furnish services in a manner providing continuity of care and ready referral of patients to other providers at times as may be appropriate, consistent with good professional practice. (e) (1) All services shall be readily available at reasonable times to each enrollee consistent with good professional practice. To the extent feasible, the plan shall make all services readily accessible to all enrollees consistent with Section 1367.03. (2) To the extent that telemedicine services are appropriately provided through telemedicine, as defined in subdivision (a) of Section 2290.5 of the Business and Professions Code, these services shall be considered in determining compliance with Section 1300.67.2 of Title 28 of the California Code of Regulations. (3) The plan shall make all services accessible and appropriate consistent with Section 1367.04. (f) The plan shall employ and utilize allied health manpower for the furnishing of services to the extent permitted by law and consistent with good medical practice. (g) The plan shall have the organizational and administrative capacity to provide services to subscribers and enrollees. The plan shall be able to demonstrate to the department that medical decisions are rendered by qualified medical providers, unhindered by fiscal and administrative management. (h) (1) Contracts with subscribers and enrollees, including group contracts, and contracts with providers, and other persons furnishing services, equipment, or facilities to or in connection with the plan, shall be fair, reasonable, and consistent with the objectives of this chapter. All contracts with providers shall contain provisions requiring a fast, fair, and cost-effective dispute resolution mechanism under which providers may submit disputes to the plan, and requiring the plan to inform its providers upon contracting with the plan, or upon change to these provisions, of the procedures for processing and resolving disputes, including the location and telephone number where information regarding disputes may be submitted. (2) A health care service plan shall ensure that a dispute resolution mechanism is accessible to noncontracting providers for the purpose of resolving billing and claims disputes. (3) On and after January 1, 2002, a health care service plan shall annually submit a report to the department regarding its dispute resolution mechanism. The report shall include information on the number of providers who utilized the dispute resolution mechanism and a summary of the disposition of those disputes. (i) A health care service plan contract shall provide to subscribers and enrollees all of the basic health care services included in subdivision (b) of Section 1345, except that the director may, for good cause, by rule or order exempt a plan contract or any class of plan contracts from that requirement. The director shall by rule define the scope of each basic health care service that health care service plans are required to provide as a minimum for licensure under this chapter. Nothing in this chapter shall prohibit a health care service plan from charging subscribers or enrollees a copayment or a deductible for a basic health care service or from setting forth, by contract, limitations on maximum coverage of basic health care services, provided that the copayments, deductibles, or limitations are reported to, and held unobjectionable by, the director and set forth to the subscriber or enrollee pursuant to the disclosure provisions of Section 1363. (j) A health care service plan shall not require registration under the Controlled Substances Act of 1970 (21 U.S.C. Sec. 801 et seq.) as a condition for participation by an optometrist certified to use therapeutic pharmaceutical agents pursuant to Section 3041.3 of the Business and Professions Code. Nothing in this section shall be construed to permit the director to establish the rates charged subscribers and enrollees for contractual health care services. The director's enforcement of Article 3.1 (commencing with Section 1357) shall not be deemed to establish the rates charged subscribers and enrollees for contractual health care services. The obligation of the plan to comply with this section shall not be waived when the plan delegates any services that it is required to perform to its medical groups, independent practice associations, or other contracting entities.