BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 92
                                                                  Page  1


          SENATE THIRD READING
          SB 92 (Budget and Fiscal Review Committee)
          As Amended  June 12, 2013
          2/3 vote.  Urgency

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Establishes a permanent funding source for the Alfred  
          E. Alquist Seismic Safety Commission.  Specifically,  this bill:  

          1)Creates the Seismic Safety Account (Account) as a special  
            account within the Insurance Fund to support the Alfred E.  
            Alquist Seismic Safety Commission and administrative costs  
            incurred by the Department of Insurance.

          2)Imposes an annual property assessment for each property  
            exposure.  The assessment is not to exceed $0.15.

          3)Specifies that the annual property assessment be set at $0.15  
            for the first three years. Thereafter, the annual will be  
            calculated by the department but is never to exceed $0.15 per  
            property exposure.

          4)Requires the Department of Insurance to report to the  
            Legislature, the Alfred E. Alquist Seismic Safety Commission,  
            and the Department of Finance by December 1 of each year  
            regarding the calculation method that determined the  
            assessment fee.

          5)Defines a late payment as failure to pay the assessment fee  
            within 45 days of the invoice date, and authorizes the  
            Department of Insurance to charge a late fee of 1.5% per month  
            of the balance due.

          6)Stipulates that any deficiency or excess funds collected will  
            be accounted for in the following year's fee calculation.

          7)Contains an urgency clause allowing this bill to take effect  
            immediately upon enactment. 

           EXISTING LAW  :  Provides for the Alfred E. Alquist Seismic Safety  
          Commission in the State and Consumer Services Agency.

           FISCAL EFFECT  :  This bill will generate $1.2 million in special  








                                                                  SB 92
                                                                  Page  2


          funds to support the Alfred E. Alquist Seismic Safety  
          Commission.

           COMMENT  :  The Alfred E. Alquist Seismic Safety Commission is  
          responsible for conducting research, coordinating earthquake  
          safety activities, setting goals and priorities for the public  
          and private sectors, and overseeing certain aspects of  
          earthquake hazard mitigation.


           Analysis Prepared by  :    Zoe Adler / BUDGET / (916) 319-2099


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