BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1899 (Calderon) - Insurance:  production agents:  license  
          examinations
          
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          |Version: March 16, 2016         |Policy Vote: INS. 9 - 0         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 11, 2016   |Consultant: Debra Cooper        |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 11, 2016






          Bill  
          Summary:  AB 1899 would require the California Department of  
          Insurance (CDI) to provide the license examinations for life,  
          life-only, and accident and health agents in Spanish.


          Fiscal  
          Impact:  
           Estimated one-time costs to CDI of $230,000 in fiscal year  
            2017-18 to translate examination materials into Spanish,  
            including using psychometric testing. (Insurance Fund)









          AB 1899 (Calderon)                                     Page 1 of  
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           Estimated costs to CDI of $360,000 in fiscal year 2018-19 and  
            ongoing costs of $370,000 per year for administering the life  
            agent, life-only agent and accident and health agent exam in  
            Spanish, including obtaining background checks of applicants  
            and reviewing applications. (Insurance Fund)


           Estimated one-time costs to CDI of $30,000 to prepare a report  
            to the Legislature. (Insurance Fund)


           Potential revenue of $557,000 in fiscal year 2017-18, $1.1  
            million in fiscal year 2018-19 and $1.4 million per year  
            ongoing generated from exam fees ($50 per exam) and licensing  
            fees ($170 per license). (Insurance Fund)




          Author  
          Amendments:  
           Requires the Insurance Commissioner to evaluate the  
            examinations taken in Spanish and by March 1, 2023, submit to  
            the Legislature a report including, but not limited to:
              -     The number of people taking the examination;
              -     The pass rate of the examination in Spanish and a  
                comparison to the pass rate of the examination in English;
              -     The number of licenseholders that passed the  
                examination in Spanish and remain licensed;
              -     The number of consumer complaints received and actions  
                taken.
           Sunsets the Spanish language requirements on January 1, 2024.




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