BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2728


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          (Without Reference to File)





          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2728 (Atkins)


          As Amended  August 19, 2016


          Majority vote


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          |ASSEMBLY:  |80-0  |(May 31, 2016) |SENATE: |39-0  |(August 25,      |
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          Original Committee Reference:  INS.


          SUMMARY:  Extends the sunset date on the tax credit allowed for  
          defined community development investments until 2018, and  
          declares Legislative intent that the authority of the Department  
          of Insurance to issue a data call to insurers will be extended.


          The Senate amendments 


          1)Delete a sunset extension provision that would have extended  
            the statutory authorization for the California Organized  
            Investment Network (COIN) Advisory Board from 2017 to 2022.








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          2)Shorten the sunset extension for the tax credit from 2022 to  
            2018.


          EXISTING LAW:  


          1)Establishes a COIN Advisory Board to consult with and advise  
            the Department of Insurance (DOI) with respect to issues  
            associated with the COIN program.


          2)Sunsets the Advisory Board on January 1, 2020.


          3)Requires any admitted insurer that writes at least $100  
            million in California premium to file, by July 1, 2016, data  
            with DOI detailing its investment activity for the past three  
            years with respect to community development investments.  


          4)Requires the DOI, by December 31, 2016, to provide information  
            on its Internet Web site: 


             a)   Concerning the community development investments made by  
               insurers, specifically noting information concerning  
               investments that are innovative, responsive to community  
               needs, not routinely made by insurers, and that have a high  
               impact on low and moderate income communities, and


             b)   On the actions taken by the COIN program to analyze  
               insurer data for purposes of identifying potential insurer  
               investment opportunities, and on COIN's outreach and  
               marketing efforts, and 


             c)   Identifying the amount of California public debt  
               purchased by insurers, the amount of identified California  








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               investments by insurers, and the amount of green  
               investments by insurers.


          5)Provides that the data call and information posting provisions  
            will sunset on January 1, 2020.





          FISCAL EFFECT:  Annual ongoing general fund revenue loss in the  
          range of $3.8 million from the extension of the Community  
          Development Financial Institutions (CDFI) tax credit.  


          COMMENTS:  The bill contains intent language that the authority  
          for DOI to continue to conduct data calls relating to community  
          development investments by insurers, which currently sunsets in  
          2017, should be extended.  As noted above, a report relating to  
          the previous data call and efforts by COIN to further the  
          purposes of the program, was due December 31, 2016.  However,  
          the DOI fast tracked the most recent data call ahead of the  
          Legislatively-established time table, and issued the report last  
          month.  Unfortunately, stakeholders were unable to come to  
          agreement on the role of future data calls, and the role of COIN  
          is becoming more proactive in identifying, developing and  
          marketing appropriate community development investments by  
          insurers.  As a result, the bill was pared back, and these  
          issues will be before the Legislature next year.


          Analysis Prepared by:                                             
                          Mark Rakich / INS. / (916) 319-2086  FN:   
          0004953















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