BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2731| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 2731 Page 2 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 Background The Insurance Code has many obsolete and outdated reporting requirements with inconsistent reporting standards.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 CONTINUED AB 2731 Page 3 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 **** END **** CONTINUED