BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2128
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2128 (Gordon) - As Amended:  March 19, 2014 

          Policy Committee:                              InsuranceVote:9-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill extends sunset clauses on certain aspects of the  
          community development investment program within the California  
          Department of Insurance (CDI).  Specifically, this bill: 

          1)Extends to January 1, 2020, the sunset date on the provisions  
            of law that define the scope of the Insurance Commissioner's  
            obligations to report on community development investments and  
            green investments, as defined.

          2)Extends to January 1, 2020, the sunset date on the California  
            Organized Investment Advisory Board (Board).

          3)Authorizes the Board to meet three or more times per year.

          4)Deletes obsolete language relating to the staggering of terms  
            for the Board's initial members.

           FISCAL EFFECT  

          Continuing the reporting and Board functions will result in only  
          minor and absorbable costs to CDI (Insurance Fund).

           COMMENTS  

           1)Purpose  .  The author indicates AB 2128 was introduced to  
            ensure key provisions of the COIN program in the DOI do not  
            sunset, and to provide a vehicle for discussions about  
            improvements or reforms that might be made to the program.   
            The IC is expected to release a report on insurers' community  
            development investing by May 31, 2014, and it is expected the  
            report will provide the basis for discussions concerning the  








                                                                  AB 2128
                                                                  Page  2

            role of COIN in carrying out the state policy of encouraging  
            insurers to make community development investments.  This bill  
            is sponsored by the California Department of Insurance.

           2)Concerns  .  The insurance industry has expressed concerns about  
            continuing data calls  documenting the scope or extent of  
            insurer community development investments, pointing out data  
            calls involve substantial time and expense and questioning the  
            value of further data collection. 

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081