BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2731
          Author:   Assembly Insurance Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE INSURANCE COMMITTEE  :  10-0, 6/25/14
          AYES:  Monning, Corbett, Correa, DeSaulnier, Lieu, Mitchell,  
            Nielsen, Roth, Torres, Vidak
          NO VOTE RECORDED:  Gaines

           ASSEMBLY FLOOR :  74-0, 4/10/14 (Consent) - See last page for  
            vote


          SUBJECT  :    Insurance

           SOURCE  :     Author


           DIGEST  :    This bill clarifies reporting requirements for  
          various reports related to insurance that must be submitted to  
          the Legislature.  

           ANALYSIS  :    Existing law requires the submission of the  
          following reports to the Legislature regarding insurance issues:

          1.Reports regarding the insolvency of an insurer.

          2.Annual report of the California Life and Health Insurance  
            Guarantee Association.  

          3.Annual report summarizing the number, type and disposition of  
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            complaints received by the Department of Insurance.  

          4.Annual report from the California Assigned Risk Plan. 

          5.Workers' Compensation Insurance Rating Board report regarding  
            workers' compensation issues for the taxi industry.

          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.  

           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          The Insurance Code has many obsolete and outdated reporting  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, 2014) are independent, but  
          cooperative, efforts between the Assembly and Senate Insurance  
          Committees to work out a consistent approach to 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.

           Comments
           
          The Assembly Committee on Insurance has received questions from  
          staff within the Department of Insurance regarding to whom in  

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          the Legislature the reports should be sent.  This bill resolves  
          those questions by specifying the relevant policy committees in  
          the statutes requiring the reports.  This bill also repeals the  
          reporting requirement on taxi driver wages as the due date for  
          the report has long since passed.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           ASSEMBLY FLOOR  :  74-0, 4/10/14
          AYES: Achadjian, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Dickinson, Donnelly, Fong, Fox, Frazier, Beth  
            Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez,  
            Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED: Alejo, Daly, Eggman, Jones, Salas, Vacancy


          AL:nl  7/1/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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