BILL NUMBER: AB 1426	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Insurance (Assembly Members Solorio
(Chair), Carter, Feuer, Hayashi, Skinner, Torres, and Wieckowski)

                        MARCH 22, 2011

   An act to amend Section 11629.79 of, and to repeal Section
1758.994 of, the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1426, as introduced, Committee on Insurance. Insurance.
   (1) Existing law requires the Insurance Commissioner to report to
the Legislature by June 30, 2004, regarding the effectiveness of
specified provisions regulating credit insurance agents in protecting
consumers involved in credit insurance transactions.
   This bill would repeal this reporting requirement provision.
   (2) Existing law establishes a low-cost automobile insurance
program. Existing law, subject to exceptions, requires that the
Office of Administrative Law review administrative regulations
proposed by state agencies prior to their adoption. Exceptions to
this requirement authorized the Insurance Commissioner to adopt
emergency regulations relating to the low-cost automobile insurance
program as it commenced in 2000, and as it was expanded in 2006, that
are not subject to the review process of the Office of
Administrative Law.
   This bill would repeal the language that authorized the
commissioner to adopt emergency regulations in relation to the
low-cost automobile insurance program.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1758.994 of the Insurance Code is repealed.

   1758.994.  The commissioner shall submit a report to the
Legislature by June 30, 2004, regarding the effectiveness of this
article in protecting consumers involved in credit insurance
transactions. This report shall include, but not be limited to, the
number and categories of licensees licensed pursuant to this article,
the number and nature of enforcement actions related to credit
insurance licensing or marketing issues, and any needed legislative
reforms recommended by the commissioner. 
  SEC. 2.  Section 11629.79 of the Insurance Code is amended to read:

   11629.79.  (a) The program for the County of Los Angeles and the
City and County of San Francisco is authorized to commence operations
on January 1, 2000, but shall be fully operational no later than
July 1, 2000.
   (b) To this end, the commissioner, in consultation with the
California Automobile Assigned Risk Plan, shall adopt regulations to
implement the provisions of this article within 60 days of its
effective date.  The regulations shall be adopted as
emergency regulations in accordance with Chapter 3.5 (commencing with
Section 11340) of the Government Code, and for purposes of that
chapter, the adoption of the regulations shall be considered by the
Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. 
   (c) The program for the Counties of Alameda, Fresno, Orange,
Riverside, San Bernardino, and San Diego shall commence operations on
April 1, 2006, and shall be made operational in all other counties
of California according to the discretion of the commissioner. The
commissioner, in consultation with the California Automobile Assigned
Risk Plan, shall adopt regulations to implement the expansion of the
program to these counties.  The regulations shall be adopted
as emergency regulations in accordance with Chapter 3.5 (commencing
with Section 11340) of the Government Code, and for purposes of that
chapter, the adoption of the regulations shall be considered by the
Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.