CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Assembly Member Caloza

February 20, 2026

An act to amend Section 742 of the Insurance Code, relating to insurance.

Vote: majority   Appropriation: no   Fiscal committee: no   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law requires a person or other entity providing coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital, or optometric services, whether this coverage is by direct payment, reimbursement, or otherwise, and that enters into an arrangement or contract with, or underwrites, a preferred provider organization or arrangement, as specified, be subject to the jurisdiction of the Department of Insurance.

This bill would make technical, nonsubstantive changes to these provisions.

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

SECTION 1.

Section 742 of the Insurance Code is amended to read:

742.

(a) Any A person or other entity that provides coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital, or optometric services, whether this coverage is by direct payment, reimbursement, or otherwise, and that enters into an arrangement or contract with, or underwrites, a preferred provider organization or arrangement subject to Section 10133 is subject to the jurisdiction of the Department of Insurance.

(b) Any A person or entity subject to regulation under Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code shall not be subject to this section.