BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1899 (Calderon) - Insurance: production agents: license examinations ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 16, 2016 |Policy Vote: INS. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- *********** 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 ? 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. -- END --