republic-os/legislation/us/states/ca/20132014/sb-1340.md

---
type: "Bill"
title: "Health care coverage: provider contracts."
description: "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 also provides for the regulation of health insurers by the Department of Insurance. Existing law prohibits a contract by or on behalf of a plan or insurer and a licensed hospital, as defined, or any other licensed health care facility owned by a licensed hospital to provide inpatient hospital services or ambulatory care services to subscribers and enrollees of the plan or policyholders and insureds of the insurer from containing a provision that restricts the ability of the plan or insurer to furnish information to subscribers or enrollees of the plan or policyholders or insureds of the insurer concerning the cost range of procedures at the hospital or facility or the quality of services performed by the hospital or facility. Existing law makes a contractual provision inconsistent with this requirement void and unenforceable. Existing law requires a plan or insurer to provide a hospital or facility at least 20 days to review the methodology and data used before cost or quality information is provided to subscribers or enrollees of the plan or to policyholders or insureds of the insurer, as specified. Existing law also establishes requirements applicable to information displayed on an Internet Web site pursuant to these provisions by, or on behalf of, a plan or insurer."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20132014"
identifier: "SB 1340"
citation: "California SB 1340 (20132014)"
classification: ["bill"]
subjects: ["Health care coverage: provider contracts."]
status: "enacted"
primary_sponsors: ["Hernandez"]
version_count: 5
action_count: 18
vote_count: 4
first_action: "2014-02-21"
last_action: "2014-07-07"
source: "openstates"
source_identifier: "ocd-bill/ba3c1220-dc5b-41a6-a73c-f54f96f36fa1"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB1340"
source_hash: "fe27f9a8d7ebe2dd266fd02e29c4d3b21045df9be08a0831b86c8775c2f061fe"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---

# California SB 1340 (20132014) — Health care coverage: provider contracts.

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 also provides for the regulation of health insurers by the Department of Insurance. Existing law prohibits a contract by or on behalf of a plan or insurer and a licensed hospital, as defined, or any other licensed health care facility owned by a licensed hospital to provide inpatient hospital services or ambulatory care services to subscribers and enrollees of the plan or policyholders and insureds of the insurer from containing a provision that restricts the ability of the plan or insurer to furnish information to subscribers or enrollees of the plan or policyholders or insureds of the insurer concerning the cost range of procedures at the hospital or facility or the quality of services performed by the hospital or facility. Existing law makes a contractual provision inconsistent with this requirement void and unenforceable. Existing law requires a plan or insurer to provide a hospital or facility at least 20 days to review the methodology and data used before cost or quality information is provided to subscribers or enrollees of the plan or to policyholders or insureds of the insurer, as specified. Existing law also establishes requirements applicable to information displayed on an Internet Web site pursuant to these provisions by, or on behalf of, a plan or insurer.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **02/21/14 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140SB1340&version=20130SB134099INT)
2. **03/24/14 - Amended Senate** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140SB1340&version=20130SB134098AMD)
3. **07/07/14 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140SB1340&version=20130SB134096CHP)
4. **SB1340** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB1340)
5. **06/26/14 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140SB1340&version=20130SB134097ENR)

## Votes

- Do pass. — **8–0** (pass) · upper
- Do pass. — **17–0** (pass) · lower
- 3rd Reading — **33–0** (pass) · upper
- SB 1340 Hernandez Senate Third Reading By MAIENSCHEIN — **77–0** (pass) · lower

## Sponsors

- Hernandez — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2014-02-21** Introduced. To Com. on RLS. for assignment. To print. `introduction`
- **2014-02-22** From printer. May be acted upon on or after March 24.
- **2014-02-24** Read first time. `reading-1`
- **2014-03-17** Referred to Com. on HEALTH. `referral-committee`
- **2014-03-24** From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH. `committee-passage, amendment-passage, reading-2, reading-1, referral-committee`
- **2014-03-27** Set for hearing April 9.
- **2014-04-10** From committee: Do pass. (Ayes 8. Noes 0. Page 3162.) (April 9). `committee-passage-favorable, committee-passage`
- **2014-04-21** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2014-04-28** Read third time. Passed. (Ayes 33. Noes 0. Page 3267.) Ordered to the Assembly. `reading-3, reading-1, passage`
- **2014-04-28** In Assembly. Read first time. Held at Desk. `reading-1`
- **2014-05-15** Referred to Com. on HEALTH. `referral-committee`
- **2014-06-18** From committee: Do pass. (Ayes 17. Noes 0.) (June 17). `committee-passage-favorable, committee-passage`
- **2014-06-19** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2014-06-26** Read third time. Passed. (Ayes 77. Noes 0. Page 5698.) Ordered to the Senate. `reading-3, reading-1, passage`
- **2014-06-26** In Senate. Ordered to engrossing and enrolling.
- **2014-06-30** Enrolled and presented to the Governor at 3:30 p.m.
- **2014-07-07** Approved by the Governor. `executive-signature`
- **2014-07-07** Chaptered by Secretary of State. Chapter 83, Statutes of 2014.

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/ba3c1220-dc5b-41a6-a73c-f54f96f36fa1`. Confidence: reported (aggregated from official California legislature records).