BILL ANALYSIS                                                                                                                                                                                                    



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

          AB 2588 (Chu) - Independent insurance adjusters
          
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          |Version: August 1, 2016         |Policy Vote: INS. 5 - 2         |
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          |Urgency: No                     |Mandate: Yes                    |
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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 2588 would make changes to the Insurance Adjuster  
          Act relative to qualifications for an independent insurance  
          adjusters (IA) license.


          Fiscal  
          Impact:  
           Estimated ongoing costs to the Department of Insurance (CDI)  
            of $700,000-$800,000 per year for the added licensing and  
            enforcement costs for the new licensees. (Insurance Fund)


           Estimated revenue of $1.5-2.5 million per year from fees  







          AB 2588 (Chu)                                          Page 1 of  
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            generated from these new licenses. (Insurance Fund)


           Estimated costs to the Department of Justice of $400,000 in  
            fiscal year 2017-18, $480,000 in fiscal year 2018-19, and  
            $160,000 ongoing thereafter for processing live scan  
            fingerprints submitted with applications. (GF/Fingerprint Fees  
            Account) 




          Author  
          Amendments:  
           Requires that applicants submit a set of fingerprints  
            submitted with a live scan fingerprinting service provider  
            certified by the Department of Justice instead of fingerprints  
            submitted in a manner acceptable to the Department of  
            Insurance.
           Reduces the application fee for new and renewed licenses from  
            $120 to $80 per two-year period. 




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