BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 98|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 98
Author: Assembly Budget Committee
Amended: 6/11/13 in Senate
Vote: 27 - Urgency
ASSEMBLY FLOOR : Not relevant
SUBJECT : Property insurance: Seismic Safety Account
SOURCE : Author
DIGEST : This bill makes statutory changes necessary for the
continued funding of the Seismic Safety Commission.
ANALYSIS :
This bill:
1.Creates the Seismic Safety Account within the Insurance Fund.
2.Requires the Department of Insurance to calculate an annual
assessment, not to exceed $0.15 per property exposure, to be
charged to each commercial and residential property exposure
based on specified factors.
3.Requires the insurer to collect the assessment and remit it to
the Department of Insurance unless the insurer elects to pay
the assessment on the insured's behalf.
Background
CONTINUED
AB 98
Page
2
The passage of the Seismic Safety Act in 1975 established the
Seismic Safety Commission. The Commission was established to
advise the Governor, the Legislature, and local governments on
risk mitigation in the event of an earthquake. Subsequent
legislation (Chapter 532, Statutes of 2006) renamed the
commission the Alfred E. Alquist Seismic Safety Commission,
moved the commission under the California State and Consumer
Services Agency, and added an additional three members to the
commission. Currently, the commission is comprised of twenty
commissioners.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Budget and Fiscal Review Committee, the
2013 Budget Act includes a General Fund loan of $1.12 million to
the Insurance Fund. The General Loan will be made to the
Insurance Fund in order to finance operations of the Commission
for Fiscal Year 2013-14. The loan to the Insurance Fund is
expected to be repaid once sufficient funds for repayment have
been allocated to the Seismic Safety Account.
AL:nl 6/13/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****