BILL NUMBER: SB 1331INTRODUCED BILL TEXT INTRODUCED BY Senator Gaines FEBRUARY 21, 2014 An act to amend Section 1861.10 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 1331, as introduced, Gaines. Insurance: interveners payment. The Insurance Rate Reduction and Reform Act of 1988, an initiative measure, enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, among other things, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the provisions of the act, and requires any insurer desiring to change those insurance rates to file a completed rate application with the Insurance Commissioner, as provided. The act also authorizes any person to initiate or intervene in any proceeding permitted or established pursuant to the governing provisions, to challenge any action of the commissioner under the governing provisions, and to enforce any of the governing provisions, and requires the commissioner or a court to award reasonable advocacy and witness fees and expenses to that person, as provided. This bill would delete the provisions regarding awarding reasonable advocacy and witness fees and expenses. The California Constitution and the act authorize the Legislature to amend or repeal an initiative statute by another statute that becomes effective when approved by the electors. This bill would provide that its provisions will become effective only upon approval of the voters, and would provide for the submission of this measure to the voters for approval at the next statewide general election. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1861.10 of the Insurance Code is amended to read: 1861.10. Consumer Participation.(a)Any person may initiate or intervene in any proceeding permitted or established pursuant to this chapter, challenge any action of the commissioner under this article, and enforce any provision of this article.(b) The commissioner or a court shall award reasonable advocacy and witness fees and expenses to any person who demonstrates that (1) the person represents the interests of consumers, and, (2) that he or she has made a substantial contribution to the adoption of any order, regulation, or decision by the commissioner or a court. Where such advocacy occurs in response to a rate application, the award shall be paid by the applicant.(c) All requests for a finding of eligibility to seek compensation and all findings of eligibility, as described in Section 2662.2 of Title 10 of the California Code of Regulations, shall be published on the Department of Insurance Internet Web site during the eligibility period.SEC. 2. Section 1 of this act amends the Insurance Rate Reduction and Reform Act of 1988, Proposition 103, an initiative statute, and shall become effective only when submitted to and approved by the voters. The Secretary of State shall submit Section 1 of this act for approval by the voters at a statewide election in accordance with Section 9040 of the Elections Code.