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