BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 98
                                                                  Page  1

          (  Without Reference to File  )

          CONCURRENCE IN SENATE AMENDMENTS
          AB 98 (Budget Committee)
          As Amended  June 11, 2013
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(May 13, 2013)  |SENATE: |28-9 |(June 14,      |
          |           |     |                |        |     |2013)          |
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                    (vote not relevant)                
           
           Original Committee Reference:    BUDGET  

           SUMMARY  :  Establishes a permanent funding source for the Alfred  
          E. Alquist Seismic Safety Commission.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Create the Seismic Safety Account (Account) as a special  
            account within the Insurance Fund to support the Alfred E.  
            Alquist Seismic Safety Commission and administrative costs  
            incurred by the Department of Insurance.

          2)Impose an annual property assessment for each property  
            exposure.  The assessment is not to exceed $0.15.

          3)Specify that the annual property assessment be set at $0.15  
            for the first three years. Thereafter, the annual will be  
            calculated by the department but is never to exceed $0.15 per  
            property exposure.

          4)Require the Department of Insurance to report to the  
            Legislature, the Alfred E. Alquist Seismic Safety Commission,  
            and the Department of Finance by December 1 of each year  
            regarding the calculation method that determined the  
            assessment fee.

          5)Define a late payment as failure to pay the assessment fee  
            within 45 days of the invoice date, and authorizes the  
            Department of Insurance to charge a late fee of 1.5% per month  
            of the balance due.

          6)Stipulate that any deficiency or excess funds collected will  







                                                                  AB 98
                                                                  Page  2

            be accounted for in the following year's fee calculation.

          7)Contain an urgency clause allowing this bill to take effect  
            immediately upon enactment. 

           EXISTING LAW  :  Provides for the Alfred E. Alquist Seismic Safety  
          Commission in the State and Consumer Services Agency.

           FISCAL EFFECT  :  This bill will generate $1.2 million in special  
          funds to support the Alfred E. Alquist Seismic Safety  
          Commission.

           COMMENT  :  The Alfred E. Alquist Seismic Safety Commission is  
          responsible for conducting research, coordinating earthquake  
          safety activities, setting goals and priorities for the public  
          and private sectors, and overseeing certain aspects of  
          earthquake hazard mitigation.
           

          Analysis Prepared by  :    Zoe Adler / BUDGET / (916) 319-2099


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