BILL ANALYSIS Ó SENATE INSURANCE COMMITTEE Senator William W. Monning, Chair AB 2731 (Assembly Insurance Committee) Hearing Date: June 25, 2014 As Introduced: February 25, 2014 Fiscal: No Urgency: No VOTES: Asm. Floor (04/10/14)74-0/Pass Asm. Ins. (04/02/14)12-0/Pass SUMMARY Clarifies reporting requirements for various reports related to insurance that must be submitted to the Legislature. DIGEST Existing law 1. Requires the submission of the following reports to the Legislature regarding insurance issues a. Reports regarding the insolvency of an insurer. (Ins. Code § 985.5.) b. Annual report of the California Life and Health Insurance Guarantee Association. (Ins. Code § 1067.13.) c. Annual report summarizing the number, type and disposition of complaints received by the Department of Insurance. (Ins. Code § 1858.35.) d. Annual report from the California Assigned Risk Plan. (Ins. Code § 11629.81.) e. Workers' Compensation Insurance Rating Board report AB 2731 (Assembly Ins. Committee), Page 2 to the Legislature regarding workers' compensation issues for the taxi industry by May 1, 2003. This bill 1. Specifies that reports required by Insurance Code Sections 985.5, 1067.13, 1858.35, and 11629.81 be reported directly to the Assembly and Senate Committees on Insurance rather than the Legislature generally. 2. Repeals a requirement for the Workers' Compensation Insurance Rating Board report to the Legislature regarding workers' compensation issues for the taxi industry by May 1, 2003. COMMENTS 1. Purpose of the bill . The Assembly Committee on Insurance has received questions from staff within the Department of Insurance regarding to whom in the Legislature the reports should be sent. This bill resolves those questions by specifying the relevant policy committees in the statutes requiring the reports. The bill also repeals the reporting requirement on taxi driver wages as the due date for the report has long since passed. 2. Background . The Insurance Code has many obsolete and outdated reporting requirements with inconsistent reporting standards. Over the years, legislative preferences have shifted as to who should receive the report and how it should be submitted. Committees that may receive reports required by the Insurance Code include the Health, Insurance, Judiciary, Labor, and Transportation Committees of either or both houses, each potentially having different preferences as to how report should be submitted (especially whether they should be submitted in electronic or hardcopy form). This bill and SB 1065 (Monning) are independent, but cooperative, efforts between the Assembly and Senate Insurance Committees to work out a consistent approach to AB 2731 (Assembly Ins. Committee), Page 3 reporting requirements, without imposing standards on committees with different preferences. By assigning the reports specifically to the Insurance Committees, the committees may establish more specific reporting standards. 3. Support . None received. 4. Opposition None received. 5. Prior and Related Legislation SB 1065 (Monning) would require that all report submitted to legislative committees required under the Insurance Code also be submitted to the Legislative Counsel. Would also establish standards for the electronic submission of reports required by the Insurance Code. AB 2731 (Assembly Ins. Committee), Page 4 POSITIONS Support None received. Oppose None received. Consultant: Hugh Slayden (916) 651-4773