BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
AB 2128 (Gordon) - Insurer Investments
Amended: August 4, 2014 Policy Vote: Ins 8-2
Urgency: No Mandate: No
Hearing Date: August 11, 2014
Consultant: Maureen Ortiz
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 2128 makes several changes to, and extends the
sunset on, the community development investment program within
the Department of Insurance to January 1, 2020.
Fiscal Impact:
Administrative costs of approximately $87,500 (Special
Fund)
The Department of Insurance indicates costs of about $80,000 to
aggregate the data reported by insurers and post on the
department's Internet Web site. An additional $7,500 annually
will result from costs associated with the advisory board
meetings.
Background: The California Organized Investment Network (COIN)
Program was established in 1996 as a public/private partnership
between the Department of Insurance (CDI), the insurance
industry, state government leaders, and community development
organizations. COIN's goal is to help address unmet capital
needs that support investments in economic development and
affordable housing in low-to-moderate income urban and rural
communities throughout California. The program serves as a
liaison between insurers that are seeking investment
opportunities and the community organizations that are seeking
investment capital for projects.
Existing law requires insurers to report information regarding
community development investments to the Insurance Commissioner.
That data is aggregated and then posted on the departments
Internet Web site.
AB 2128 (Gordon)
Page 1
Proposed Law: AB 2128 extends the sunset on, and makes several
changes to, the community development investment program within
the Department of Insurance. Specifically, AB 2128 does the
following:
1) Extends the sunset from January 1, 2015 to January 1,
2020 for the California Organized Investment Advisory
Board.
2) Extends the sunset from January 1, 2015 to January 1,
2020 on the Insurance Commissioner's obligations to report
on community development investments and green investments;
and adds the requirement to post on the department's
Internet Web site the actions taken by COIN to analyze the
data by insurers for the purpose of creating and
identifying potential investment opportunities by December
31, 2016.
3) Provides the board more flexibility in holding meetings
by changing the statutorily meeting requirement from
"quarterly" to "a minimum of three or more times per year".
4) Changes the threshold for reporting community
development investments from "every insurer admitted in
California" to those with "annual premiums written in
California of at least $100 million".
5) Requires each of those insurers to report to the
commissioner on all of its community development
investments, community development infrastructure
investments, and green investments by July 1, 2016 for
investments made during 2013, 2014, and 2015, as specified.