1386. (a) The director may, after appropriate notice and
opportunity for a hearing, by order suspend or revoke any license
issued under this chapter to a health care service plan or assess
administrative penalties if the director determines that the licensee
has committed any of the acts or omissions constituting grounds for
disciplinary action.
(b) The following acts or omissions constitute grounds for
disciplinary action by the director:
(1) The plan is operating at variance with the basic
organizational documents as filed pursuant to Section 1351 or 1352,
or with its published plan, or in any manner contrary to that
described in, and reasonably inferred from, the plan as contained in
its application for licensure and annual report, or any modification
thereof, unless amendments allowing the variation have been submitted
to, and approved by, the director.
(2) The plan has issued, or permits others to use, evidence of
coverage or uses a schedule of charges for health care services that
do not comply with those published in the latest evidence of coverage
found unobjectionable by the director.
(3) The plan does not provide basic health care services to its
enrollees and subscribers as set forth in the evidence of coverage.
This subdivision shall not apply to specialized health care service
plan contracts.
(4) The plan is no longer able to meet the standards set forth in
Article 5 (commencing with Section 1367).
(5) The continued operation of the plan will constitute a
substantial risk to its subscribers and enrollees.
(6) The plan has violated or attempted to violate, or conspired to
violate, directly or indirectly, or assisted in or abetted a
violation or conspiracy to violate any provision of this chapter, any
rule or regulation adopted by the director pursuant to this chapter,
or any order issued by the director pursuant to this chapter.
(7) The plan has engaged in any conduct that constitutes fraud or
dishonest dealing or unfair competition, as defined by Section 17200
of the Business and Professions Code.
(8) The plan has permitted, or aided or abetted any violation by
an employee or contractor who is a holder of any certificate,
license, permit, registration, or exemption issued pursuant to the
Business and Professions Code or this code that would constitute
grounds for discipline against the certificate, license, permit,
registration, or exemption.
(9) The plan has aided or abetted or permitted the commission of
any illegal act.
(10) The engagement of a person as an officer, director, employee,
associate, or provider of the plan contrary to the provisions of an
order issued by the director pursuant to subdivision (c) of this
section or subdivision (d) of Section 1388.
(11) The engagement of a person as a solicitor or supervisor of
solicitation contrary to the provisions of an order issued by the
director pursuant to Section 1388.
(12) The plan, its management company, or any other affiliate of
the plan, or any controlling person, officer, director, or other
person occupying a principal management or supervisory position in
the plan, management company, or affiliate, has been convicted of or
pleaded nolo contendere to a crime, or committed any act involving
dishonesty, fraud, or deceit, which crime or act is substantially
related to the qualifications, functions, or duties of a person
engaged in business in accordance with this chapter. The director may
revoke or deny a license hereunder irrespective of a subsequent
order under the provisions of Section 1203.4 of the Penal Code.
(13) The plan violates Section 510, 2056, or 2056.1 of the
Business and Professions Code or Section 1375.7.
(14) The plan has been subject to a final disciplinary action
taken by this state, another state, an agency of the federal
government, or another country for any act or omission that would
constitute a violation of this chapter.
(15) The plan violates the Confidentiality of Medical Information
Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil
Code).
(16) The plan violates Section 806 of the Military and Veterans
Code.
(17) The plan violates Section 1262.8.
(c) (1) The director may prohibit any person from serving as an
officer, director, employee, associate, or provider of any plan or
solicitor firm, or of any management company of any plan, or as a
solicitor, if either of the following applies:
(A) The prohibition is in the public interest and the person has
committed, caused, participated in, or had knowledge of a violation
of this chapter by a plan, management company, or solicitor firm.
(B) The person was an officer, director, employee, associate, or
provider of a plan or of a management company or solicitor firm of
any plan whose license has been suspended or revoked pursuant to this
section and the person had knowledge of, or participated in, any of
the prohibited acts for which the license was suspended or revoked.
(2) A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a plan under
this section or may constitute a separate proceeding, subject in
either case to subdivision (d).
(d) A proceeding under this section shall be subject to
appropriate notice to, and the opportunity for a hearing with regard
to, the person affected in accordance with subdivision (a) of Section
1397.
1387. (a) Any person who violates any provision of this chapter, or
who violates any rule or order adopted or issued pursuant to this
chapter, shall be liable for a civil penalty not to exceed two
thousand five hundred dollars ($2,500) for each violation, which
shall be assessed and recovered in a civil action brought in the name
of the people of the State of California by the director in any
court of competent jurisdiction.
(b) As applied to the civil penalties for acts in violation of
this chapter, the remedies provided by this section and by other
sections of this chapter are not exclusive, and may be sought and
employed in any combination to enforce this chapter.
(c) No action shall be maintained to enforce any liability created
under subdivision (a), unless brought before the expiration of four
years after the act or transaction constituting the violation.
1388. (a) The director may, after appropriate notice and
opportunity for hearing, by order, censure a person acting as a
solicitor or solicitor firm, or suspend for a period not exceeding 24
months or bar a person from operating as a solicitor or solicitor
firm, or assess administrative penalties against a person acting as a
solicitor or solicitor firm if the director determines that the
person has committed any of the acts or omissions constituting
grounds for disciplinary action.
(b) The following acts or omissions constitute grounds for
disciplinary action by the director:
(1) The continued operation of the solicitor or solicitor firm in
a manner that may constitute a substantial risk to a plan or
subscribers and enrollees.
(2) The solicitor or solicitor firm has violated or attempted to
violate, or conspired to violate, directly or indirectly, or assisted
in or abetted a violation or conspiracy to violate any provision of
this chapter, any rule or regulation adopted by the director pursuant
to the chapter, or any order issued by the director pursuant to this
chapter.
(3) The solicitor or solicitor firm has engaged in any conduct
that constitutes fraud or dishonest dealing or unfair competition, as
defined by Section 17200 of the Business and Professions Code.
(4) The engagement of a person as an officer, director, employee,
or associate of the solicitor firm contrary to the provisions of an
order issued by the director pursuant to subdivision (d) of this
section or subdivision (c) of Section 1386.
(5) The solicitor or solicitor firm, or its management company, or
any other affiliate of the solicitor firm, or any controlling
person, officer, director, or other person occupying a principal
management or supervisory position in that solicitor firm, management
company, or affiliate, has been convicted or pleaded nolo contendere
to a crime, or committed any act involving dishonesty, fraud, or
deceit, which crime or act is substantially related to the
qualifications, functions, or duties of a person engaged in business
in accordance with the provisions of this chapter. The director may
issue an order hereunder irrespective of a subsequent order under the
provisions of Section 1203.4 of the Penal Code.
(c) The director shall notify plans of any order issued pursuant
to subdivision (a) which suspends or bars a person from engaging in
operations as a solicitor or solicitor firm. It shall be unlawful for
any plan, after receipt of notice of the order, to receive any new
subscribers or enrollees through that person or to otherwise utilize
any solicitation services of that person in violation thereof.
(d) (1) The director may prohibit any person from serving as an
officer, director, employee, or associate of any plan or solicitor
firm, or as a solicitor, if that person was an officer, director,
employee, or associate of a solicitor firm that has been the subject
of an order of suspension or bar from engaging in operations as a
solicitor firm pursuant to this section and that person had knowledge
of, or participated in, any of the prohibited acts for which the
order was issued.
(2) A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a solicitor
firm under this section or may constitute a separate proceeding,
subject in either case to subdivision (e).
(e) A proceeding for the issuance of an order under this section
shall be subject to appropriate notice to, and the opportunity for a
hearing with regard to, the person affected in accordance with
subdivision (a) of Section 1397.
1389. (a) A person whose license has been revoked, or suspended for
more than one year, may petition the director to reinstate the
license as provided by Section 11522 of the Government Code. No
petition may be considered if the petitioner is under criminal
sentence for a violation of this chapter, or any offense which would
constitute grounds for discipline, or denial of licensure under this
chapter, including any period of probation or parole.
(b) A person who is barred, or suspended for more than one year,
from acting as a solicitor or solicitor firm pursuant to Section
1388, or who is subject to an order, pursuant to subdivision (c) of
Section 1386 or subdivision (d) of Section 1388, which by its terms
is effective for more than one year, may petition the director to
reduce by order such penalty in a manner generally consistent with
the provisions of Section 11522 of the Government Code. No petition
may be considered if the petitioner is under criminal sentence for a
violation of this chapter, or any offense which would constitute
grounds for discipline under this chapter, including any period of
probation or parole.
(c) The petition for restoration shall be in the form prescribed
by the director and the director may condition the granting of such
petition upon such additional information and undertakings as the
director may require in order to determine whether such person, if
restored, would engage in business in full compliance with the
objectives and provisions of this chapter and the rules and
regulations adopted by the director pursuant to this chapter.
(d) The director may, by rule, prescribe a fee not to exceed five
hundred dollars ($500) for the filing of a petition for restoration
pursuant to this section. In addition, the director may condition the
granting of such a petition to a plan upon payment of the assessment
due and unpaid pursuant to subdivision (b) of Section 1356 as of the
15th day of December occurring within the preceding 12-calendar
months and, if the plan's suspension or revocation was in effect for
more than 12 months, upon the filing of a new plan application and
the payment of the fee prescribed by subdivision (a) of Section 1356.
1386. (a) The director may, after appropriate notice and
opportunity for a hearing, by order suspend or revoke any license
issued under this chapter to a health care service plan or assess
administrative penalties if the director determines that the licensee
has committed any of the acts or omissions constituting grounds for
disciplinary action.
(b) The following acts or omissions constitute grounds for
disciplinary action by the director:
(1) The plan is operating at variance with the basic
organizational documents as filed pursuant to Section 1351 or 1352,
or with its published plan, or in any manner contrary to that
described in, and reasonably inferred from, the plan as contained in
its application for licensure and annual report, or any modification
thereof, unless amendments allowing the variation have been submitted
to, and approved by, the director.
(2) The plan has issued, or permits others to use, evidence of
coverage or uses a schedule of charges for health care services that
do not comply with those published in the latest evidence of coverage
found unobjectionable by the director.
(3) The plan does not provide basic health care services to its
enrollees and subscribers as set forth in the evidence of coverage.
This subdivision shall not apply to specialized health care service
plan contracts.
(4) The plan is no longer able to meet the standards set forth in
Article 5 (commencing with Section 1367).
(5) The continued operation of the plan will constitute a
substantial risk to its subscribers and enrollees.
(6) The plan has violated or attempted to violate, or conspired to
violate, directly or indirectly, or assisted in or abetted a
violation or conspiracy to violate any provision of this chapter, any
rule or regulation adopted by the director pursuant to this chapter,
or any order issued by the director pursuant to this chapter.
(7) The plan has engaged in any conduct that constitutes fraud or
dishonest dealing or unfair competition, as defined by Section 17200
of the Business and Professions Code.
(8) The plan has permitted, or aided or abetted any violation by
an employee or contractor who is a holder of any certificate,
license, permit, registration, or exemption issued pursuant to the
Business and Professions Code or this code that would constitute
grounds for discipline against the certificate, license, permit,
registration, or exemption.
(9) The plan has aided or abetted or permitted the commission of
any illegal act.
(10) The engagement of a person as an officer, director, employee,
associate, or provider of the plan contrary to the provisions of an
order issued by the director pursuant to subdivision (c) of this
section or subdivision (d) of Section 1388.
(11) The engagement of a person as a solicitor or supervisor of
solicitation contrary to the provisions of an order issued by the
director pursuant to Section 1388.
(12) The plan, its management company, or any other affiliate of
the plan, or any controlling person, officer, director, or other
person occupying a principal management or supervisory position in
the plan, management company, or affiliate, has been convicted of or
pleaded nolo contendere to a crime, or committed any act involving
dishonesty, fraud, or deceit, which crime or act is substantially
related to the qualifications, functions, or duties of a person
engaged in business in accordance with this chapter. The director may
revoke or deny a license hereunder irrespective of a subsequent
order under the provisions of Section 1203.4 of the Penal Code.
(13) The plan violates Section 510, 2056, or 2056.1 of the
Business and Professions Code or Section 1375.7.
(14) The plan has been subject to a final disciplinary action
taken by this state, another state, an agency of the federal
government, or another country for any act or omission that would
constitute a violation of this chapter.
(15) The plan violates the Confidentiality of Medical Information
Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil
Code).
(16) The plan violates Section 806 of the Military and Veterans
Code.
(17) The plan violates Section 1262.8.
(c) (1) The director may prohibit any person from serving as an
officer, director, employee, associate, or provider of any plan or
solicitor firm, or of any management company of any plan, or as a
solicitor, if either of the following applies:
(A) The prohibition is in the public interest and the person has
committed, caused, participated in, or had knowledge of a violation
of this chapter by a plan, management company, or solicitor firm.
(B) The person was an officer, director, employee, associate, or
provider of a plan or of a management company or solicitor firm of
any plan whose license has been suspended or revoked pursuant to this
section and the person had knowledge of, or participated in, any of
the prohibited acts for which the license was suspended or revoked.
(2) A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a plan under
this section or may constitute a separate proceeding, subject in
either case to subdivision (d).
(d) A proceeding under this section shall be subject to
appropriate notice to, and the opportunity for a hearing with regard
to, the person affected in accordance with subdivision (a) of Section
1397.
1387. (a) Any person who violates any provision of this chapter, or
who violates any rule or order adopted or issued pursuant to this
chapter, shall be liable for a civil penalty not to exceed two
thousand five hundred dollars ($2,500) for each violation, which
shall be assessed and recovered in a civil action brought in the name
of the people of the State of California by the director in any
court of competent jurisdiction.
(b) As applied to the civil penalties for acts in violation of
this chapter, the remedies provided by this section and by other
sections of this chapter are not exclusive, and may be sought and
employed in any combination to enforce this chapter.
(c) No action shall be maintained to enforce any liability created
under subdivision (a), unless brought before the expiration of four
years after the act or transaction constituting the violation.
1388. (a) The director may, after appropriate notice and
opportunity for hearing, by order, censure a person acting as a
solicitor or solicitor firm, or suspend for a period not exceeding 24
months or bar a person from operating as a solicitor or solicitor
firm, or assess administrative penalties against a person acting as a
solicitor or solicitor firm if the director determines that the
person has committed any of the acts or omissions constituting
grounds for disciplinary action.
(b) The following acts or omissions constitute grounds for
disciplinary action by the director:
(1) The continued operation of the solicitor or solicitor firm in
a manner that may constitute a substantial risk to a plan or
subscribers and enrollees.
(2) The solicitor or solicitor firm has violated or attempted to
violate, or conspired to violate, directly or indirectly, or assisted
in or abetted a violation or conspiracy to violate any provision of
this chapter, any rule or regulation adopted by the director pursuant
to the chapter, or any order issued by the director pursuant to this
chapter.
(3) The solicitor or solicitor firm has engaged in any conduct
that constitutes fraud or dishonest dealing or unfair competition, as
defined by Section 17200 of the Business and Professions Code.
(4) The engagement of a person as an officer, director, employee,
or associate of the solicitor firm contrary to the provisions of an
order issued by the director pursuant to subdivision (d) of this
section or subdivision (c) of Section 1386.
(5) The solicitor or solicitor firm, or its management company, or
any other affiliate of the solicitor firm, or any controlling
person, officer, director, or other person occupying a principal
management or supervisory position in that solicitor firm, management
company, or affiliate, has been convicted or pleaded nolo contendere
to a crime, or committed any act involving dishonesty, fraud, or
deceit, which crime or act is substantially related to the
qualifications, functions, or duties of a person engaged in business
in accordance with the provisions of this chapter. The director may
issue an order hereunder irrespective of a subsequent order under the
provisions of Section 1203.4 of the Penal Code.
(c) The director shall notify plans of any order issued pursuant
to subdivision (a) which suspends or bars a person from engaging in
operations as a solicitor or solicitor firm. It shall be unlawful for
any plan, after receipt of notice of the order, to receive any new
subscribers or enrollees through that person or to otherwise utilize
any solicitation services of that person in violation thereof.
(d) (1) The director may prohibit any person from serving as an
officer, director, employee, or associate of any plan or solicitor
firm, or as a solicitor, if that person was an officer, director,
employee, or associate of a solicitor firm that has been the subject
of an order of suspension or bar from engaging in operations as a
solicitor firm pursuant to this section and that person had knowledge
of, or participated in, any of the prohibited acts for which the
order was issued.
(2) A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a solicitor
firm under this section or may constitute a separate proceeding,
subject in either case to subdivision (e).
(e) A proceeding for the issuance of an order under this section
shall be subject to appropriate notice to, and the opportunity for a
hearing with regard to, the person affected in accordance with
subdivision (a) of Section 1397.
1389. (a) A person whose license has been revoked, or suspended for
more than one year, may petition the director to reinstate the
license as provided by Section 11522 of the Government Code. No
petition may be considered if the petitioner is under criminal
sentence for a violation of this chapter, or any offense which would
constitute grounds for discipline, or denial of licensure under this
chapter, including any period of probation or parole.
(b) A person who is barred, or suspended for more than one year,
from acting as a solicitor or solicitor firm pursuant to Section
1388, or who is subject to an order, pursuant to subdivision (c) of
Section 1386 or subdivision (d) of Section 1388, which by its terms
is effective for more than one year, may petition the director to
reduce by order such penalty in a manner generally consistent with
the provisions of Section 11522 of the Government Code. No petition
may be considered if the petitioner is under criminal sentence for a
violation of this chapter, or any offense which would constitute
grounds for discipline under this chapter, including any period of
probation or parole.
(c) The petition for restoration shall be in the form prescribed
by the director and the director may condition the granting of such
petition upon such additional information and undertakings as the
director may require in order to determine whether such person, if
restored, would engage in business in full compliance with the
objectives and provisions of this chapter and the rules and
regulations adopted by the director pursuant to this chapter.
(d) The director may, by rule, prescribe a fee not to exceed five
hundred dollars ($500) for the filing of a petition for restoration
pursuant to this section. In addition, the director may condition the
granting of such a petition to a plan upon payment of the assessment
due and unpaid pursuant to subdivision (b) of Section 1356 as of the
15th day of December occurring within the preceding 12-calendar
months and, if the plan's suspension or revocation was in effect for
more than 12 months, upon the filing of a new plan application and
the payment of the fee prescribed by subdivision (a) of Section 1356.
1386. (a) The director may, after appropriate notice and
opportunity for a hearing, by order suspend or revoke any license
issued under this chapter to a health care service plan or assess
administrative penalties if the director determines that the licensee
has committed any of the acts or omissions constituting grounds for
disciplinary action.
(b) The following acts or omissions constitute grounds for
disciplinary action by the director:
(1) The plan is operating at variance with the basic
organizational documents as filed pursuant to Section 1351 or 1352,
or with its published plan, or in any manner contrary to that
described in, and reasonably inferred from, the plan as contained in
its application for licensure and annual report, or any modification
thereof, unless amendments allowing the variation have been submitted
to, and approved by, the director.
(2) The plan has issued, or permits others to use, evidence of
coverage or uses a schedule of charges for health care services that
do not comply with those published in the latest evidence of coverage
found unobjectionable by the director.
(3) The plan does not provide basic health care services to its
enrollees and subscribers as set forth in the evidence of coverage.
This subdivision shall not apply to specialized health care service
plan contracts.
(4) The plan is no longer able to meet the standards set forth in
Article 5 (commencing with Section 1367).
(5) The continued operation of the plan will constitute a
substantial risk to its subscribers and enrollees.
(6) The plan has violated or attempted to violate, or conspired to
violate, directly or indirectly, or assisted in or abetted a
violation or conspiracy to violate any provision of this chapter, any
rule or regulation adopted by the director pursuant to this chapter,
or any order issued by the director pursuant to this chapter.
(7) The plan has engaged in any conduct that constitutes fraud or
dishonest dealing or unfair competition, as defined by Section 17200
of the Business and Professions Code.
(8) The plan has permitted, or aided or abetted any violation by
an employee or contractor who is a holder of any certificate,
license, permit, registration, or exemption issued pursuant to the
Business and Professions Code or this code that would constitute
grounds for discipline against the certificate, license, permit,
registration, or exemption.
(9) The plan has aided or abetted or permitted the commission of
any illegal act.
(10) The engagement of a person as an officer, director, employee,
associate, or provider of the plan contrary to the provisions of an
order issued by the director pursuant to subdivision (c) of this
section or subdivision (d) of Section 1388.
(11) The engagement of a person as a solicitor or supervisor of
solicitation contrary to the provisions of an order issued by the
director pursuant to Section 1388.
(12) The plan, its management company, or any other affiliate of
the plan, or any controlling person, officer, director, or other
person occupying a principal management or supervisory position in
the plan, management company, or affiliate, has been convicted of or
pleaded nolo contendere to a crime, or committed any act involving
dishonesty, fraud, or deceit, which crime or act is substantially
related to the qualifications, functions, or duties of a person
engaged in business in accordance with this chapter. The director may
revoke or deny a license hereunder irrespective of a subsequent
order under the provisions of Section 1203.4 of the Penal Code.
(13) The plan violates Section 510, 2056, or 2056.1 of the
Business and Professions Code or Section 1375.7.
(14) The plan has been subject to a final disciplinary action
taken by this state, another state, an agency of the federal
government, or another country for any act or omission that would
constitute a violation of this chapter.
(15) The plan violates the Confidentiality of Medical Information
Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil
Code).
(16) The plan violates Section 806 of the Military and Veterans
Code.
(17) The plan violates Section 1262.8.
(c) (1) The director may prohibit any person from serving as an
officer, director, employee, associate, or provider of any plan or
solicitor firm, or of any management company of any plan, or as a
solicitor, if either of the following applies:
(A) The prohibition is in the public interest and the person has
committed, caused, participated in, or had knowledge of a violation
of this chapter by a plan, management company, or solicitor firm.
(B) The person was an officer, director, employee, associate, or
provider of a plan or of a management company or solicitor firm of
any plan whose license has been suspended or revoked pursuant to this
section and the person had knowledge of, or participated in, any of
the prohibited acts for which the license was suspended or revoked.
(2) A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a plan under
this section or may constitute a separate proceeding, subject in
either case to subdivision (d).
(d) A proceeding under this section shall be subject to
appropriate notice to, and the opportunity for a hearing with regard
to, the person affected in accordance with subdivision (a) of Section
1397.
1387. (a) Any person who violates any provision of this chapter, or
who violates any rule or order adopted or issued pursuant to this
chapter, shall be liable for a civil penalty not to exceed two
thousand five hundred dollars ($2,500) for each violation, which
shall be assessed and recovered in a civil action brought in the name
of the people of the State of California by the director in any
court of competent jurisdiction.
(b) As applied to the civil penalties for acts in violation of
this chapter, the remedies provided by this section and by other
sections of this chapter are not exclusive, and may be sought and
employed in any combination to enforce this chapter.
(c) No action shall be maintained to enforce any liability created
under subdivision (a), unless brought before the expiration of four
years after the act or transaction constituting the violation.
1388. (a) The director may, after appropriate notice and
opportunity for hearing, by order, censure a person acting as a
solicitor or solicitor firm, or suspend for a period not exceeding 24
months or bar a person from operating as a solicitor or solicitor
firm, or assess administrative penalties against a person acting as a
solicitor or solicitor firm if the director determines that the
person has committed any of the acts or omissions constituting
grounds for disciplinary action.
(b) The following acts or omissions constitute grounds for
disciplinary action by the director:
(1) The continued operation of the solicitor or solicitor firm in
a manner that may constitute a substantial risk to a plan or
subscribers and enrollees.
(2) The solicitor or solicitor firm has violated or attempted to
violate, or conspired to violate, directly or indirectly, or assisted
in or abetted a violation or conspiracy to violate any provision of
this chapter, any rule or regulation adopted by the director pursuant
to the chapter, or any order issued by the director pursuant to this
chapter.
(3) The solicitor or solicitor firm has engaged in any conduct
that constitutes fraud or dishonest dealing or unfair competition, as
defined by Section 17200 of the Business and Professions Code.
(4) The engagement of a person as an officer, director, employee,
or associate of the solicitor firm contrary to the provisions of an
order issued by the director pursuant to subdivision (d) of this
section or subdivision (c) of Section 1386.
(5) The solicitor or solicitor firm, or its management company, or
any other affiliate of the solicitor firm, or any controlling
person, officer, director, or other person occupying a principal
management or supervisory position in that solicitor firm, management
company, or affiliate, has been convicted or pleaded nolo contendere
to a crime, or committed any act involving dishonesty, fraud, or
deceit, which crime or act is substantially related to the
qualifications, functions, or duties of a person engaged in business
in accordance with the provisions of this chapter. The director may
issue an order hereunder irrespective of a subsequent order under the
provisions of Section 1203.4 of the Penal Code.
(c) The director shall notify plans of any order issued pursuant
to subdivision (a) which suspends or bars a person from engaging in
operations as a solicitor or solicitor firm. It shall be unlawful for
any plan, after receipt of notice of the order, to receive any new
subscribers or enrollees through that person or to otherwise utilize
any solicitation services of that person in violation thereof.
(d) (1) The director may prohibit any person from serving as an
officer, director, employee, or associate of any plan or solicitor
firm, or as a solicitor, if that person was an officer, director,
employee, or associate of a solicitor firm that has been the subject
of an order of suspension or bar from engaging in operations as a
solicitor firm pursuant to this section and that person had knowledge
of, or participated in, any of the prohibited acts for which the
order was issued.
(2) A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a solicitor
firm under this section or may constitute a separate proceeding,
subject in either case to subdivision (e).
(e) A proceeding for the issuance of an order under this section
shall be subject to appropriate notice to, and the opportunity for a
hearing with regard to, the person affected in accordance with
subdivision (a) of Section 1397.
1389. (a) A person whose license has been revoked, or suspended for
more than one year, may petition the director to reinstate the
license as provided by Section 11522 of the Government Code. No
petition may be considered if the petitioner is under criminal
sentence for a violation of this chapter, or any offense which would
constitute grounds for discipline, or denial of licensure under this
chapter, including any period of probation or parole.
(b) A person who is barred, or suspended for more than one year,
from acting as a solicitor or solicitor firm pursuant to Section
1388, or who is subject to an order, pursuant to subdivision (c) of
Section 1386 or subdivision (d) of Section 1388, which by its terms
is effective for more than one year, may petition the director to
reduce by order such penalty in a manner generally consistent with
the provisions of Section 11522 of the Government Code. No petition
may be considered if the petitioner is under criminal sentence for a
violation of this chapter, or any offense which would constitute
grounds for discipline under this chapter, including any period of
probation or parole.
(c) The petition for restoration shall be in the form prescribed
by the director and the director may condition the granting of such
petition upon such additional information and undertakings as the
director may require in order to determine whether such person, if
restored, would engage in business in full compliance with the
objectives and provisions of this chapter and the rules and
regulations adopted by the director pursuant to this chapter.
(d) The director may, by rule, prescribe a fee not to exceed five
hundred dollars ($500) for the filing of a petition for restoration
pursuant to this section. In addition, the director may condition the
granting of such a petition to a plan upon payment of the assessment
due and unpaid pursuant to subdivision (b) of Section 1356 as of the
15th day of December occurring within the preceding 12-calendar
months and, if the plan's suspension or revocation was in effect for
more than 12 months, upon the filing of a new plan application and
the payment of the fee prescribed by subdivision (a) of Section 1356.
