BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                        VETO


          Bill No:  SB 36
          Author:   Hueso (D)
          Amended:  8/8/13
          Vote:     21

           
           SENATE INSURANCE COMMITTEE  :  8-1, 4/24/13
          AYES:  Calderon, Gaines, Corbett, Correa, Lieu, Nielsen, Price,  
            Roth
          NOES:  Knight

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 5/13/13
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

          SENATE FLOOR  :  30-6, 5/16/13
          AYES:  Beall, Block, Calderon, Cannella, Corbett, Correa, De  
            León, DeSaulnier, Evans, Gaines, Galgiani, Hancock, Hernandez,  
            Hill, Hueso, Jackson, Lara, Leno, Lieu, Liu, Monning, Padilla,  
            Pavley, Roth, Steinberg, Walters, Wolk, Wright, Wyland, Yee
          NOES: Anderson, Emmerson, Fuller, Huff, Knight, Nielsen
          NO VOTE RECORDED: Berryhill, Price, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  78-0, 09/09/13 - See last page for vote

           SENATE FLOOR  :  36-2, 9/10/13
          AYES:  Beall, Berryhill, Block, Calderon, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Emmerson, Evans, Fuller, Gaines,  
            Galgiani, Hancock, Hernandez, Hill, Hueso, Jackson, Knight,  
            Lara, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Pavley,  
            Roth, Steinberg, Torres, Vidak, Wolk, Wright, Wyland, Yee
          NOES:  Anderson, Huff
          NO VOTE RECORDED:  Walters, Vacancy
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                                                                      SB 36
                                                                     Page  
          2



           SUBJECT :    Internet Web site:  workers compensation insurers:   
          workers 
                      compensation data

           SOURCE  :     Voters Injured at Work


           DIGEST  :    This bill, beginning July 1, 2014, requires the  
          Department of Insurance (CDI) to include on its Internet Web  
          site a dedicated Internet Web page that includes workers'  
          compensation data, statistics, and reports covering insurers.  
          The bill requires the department to only use data already  
          collected by the department or the Department of Industrial  
          Relations, and authorizes the department to provide on its Web  
          site direct links to relevant information on other Internet Web  
          sites. 

           ANALYSIS  :    Existing law requires every insurer doing business  
          in this state to file annual and quarterly financial statements  
          with the Insurance Commissioner.  These reports are submitted on  
          forms promulgated by the National Association of Insurance  
          Commissioners.  Annual and quarterly statements include a  
          multitude of schedules and lists covering a variety of subjects  
          including organizational information; assets; liabilities,  
          surplus, and other funds; income; cash flow; losses and loss  
          expenses; ceded reinsurance; holding companies; statements of  
          premium written by line of business; information concerning  
          activities of insurer members; and other financial and  
          operational information.

          This bill:

          1. Requires, beginning July 1, 2014, CDI to include on its  
             Internet Web site a dedicated Web page that includes workers'  
             compensation data, statistics, and reports covering insurers,  
             including, but not limited to, claims loss data, expenses,  
             and financial reports.

          2. Requires CDI to use only data that is already collected by  
             both CDI and the Department of Industrial Relations.  Any  
             information that is already protected by law will not be  
             released.

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                                                                      SB 36
                                                                     Page  
          3


          3. Authorizes CDI to provide in its Web site direct links to  
             relevant information on other Internet Web sites.

           Background
           
          The information required for CDI to post is already available  
          through various sources.  For instance, the California Workers'  
          Compensation Institute publishes an annual report that specifies  
          the financial experience of insurers in California.  The  
          Workers' Compensation Insurance Rating Bureau and CDI publish  
          detailed information as well.  Available on CDI's Web site are  
          annual market share reports that break down each workers'  
          compensation insurer's premium volume, market share, earned  
          premium, losses paid and loss ratio.  Additional reports and  
          studies are available from the Commission on Health, Safety and  
          Workers' Compensation, National Association of Insurance  
          Commissioners and CDI from public hearings relative to workers'  
          compensation pure premium filings.

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

          According to the Senate Appropriations Committee, first year  
          costs of $128,000 and annual ongoing of $40,000 (Insurance Fund)

          Costs will result if CDI is required to post the actual reports  
          on the CDI Web page.  If the intent is to only provide a link to  
          the reports, costs will be $65,000 for first year, and ongoing  
          of $24,000.  CDI has indicated that in either scenario these  
          costs are not absorbable.

           SUPPORT  :   (Verified  9/9/13)

          Voters Injured at Work (source)
          California Neurology Society
          California Society of Industrial Medicine and Surgery
          California Society of Physical Medicine and Rehabilitation
          California Worker's Compensation Services Association
          Latino Comp
          VQ OrthoCare

           GOVERNOR'S VETO MESSAGE:
           

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                                                                      SB 36
                                                                     Page  
          4

               "I am returning Senate Bill 36 without my signature. 

               The information required to be posted online by this bill  
               is already available publicly, including online, through  
               the California Department of Insurance, the Department of  
               Industrial Relations, the Workers' Compensation Insurance  
               Rating Bureau and the Commission of Health, Safety and  
               Workers' Compensation. 

               A new law is not required."

           ASSEMBLY FLOOR  : 78-0, 09/09/13
          AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  
            Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED: Vacancy, Vacancy


          AL:d:n  1/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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