BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2885|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 2885
Author: Committee on Insurance
Introduced:2/25/16
Vote: 21
SENATE INSURANCE COMMITTEE: 8-0, 6/22/16
AYES: Roth, Gaines, Berryhill, Glazer, Hall, Hernandez,
Mitchell, Wieckowski
NO VOTE RECORDED: Liu
ASSEMBLY FLOOR: 76-0, 4/14/16 (Consent) - See last page for
vote
SUBJECT: Insurance: low-cost automobile insurance program
SOURCE: Author
DIGEST: This bill eliminates obsolete language from the
statutes governing the Low-Cost Automobile Insurance Program
(LCAP).
ANALYSIS:
Existing law:
1)Requires personal automobile owners and drivers to carry
minimum levels of auto liability insurance except under
certain conditions ("financial responsibility requirements").
AB 2885
Page 2
2)Establishes the California Automobile Assigned Risk Plan
(CAARP) to provide coverage to consumers who are otherwise
unable to purchase insurance.
3)Establishes the LCAP within CAARP to provide low-cost auto
liability policies to qualified individuals and families.
4)Establishes the 15-member CAARP Advisory Committee to assist
the Insurance Commissioner (IC) in implementing CAARP.
5)Requires the CAARP Advisory Committee, by January 1, 2016, to
report to the IC on specified proposals to expand consumer
access to the LCAP.
6)Limits the jurisdiction of the court to consider the
constitutionality of the pilot program to actions filed no
later than February 1, 2000.
This bill:
1)Repeals statutes establishing the LCAP as a pilot program and
replaces it with language establishing the LCAP as a statewide
program.
2)Repeals the report due from the advisory committee by January
1, 2016.
3)Repeals the statute specifying that constitutional challenges
must be filed by February 1, 2000.
Background
AB 2885
Page 3
The CAARP was originally created in 1947 to provide insurance to
those who could not purchase coverage due to a poor driving
record. In 2000, two LCAP pilot programs were established
within CAARP in Los Angeles and San Francisco Counties. LCAP
offers inexpensive policies with very low coverage levels that
are deemed compliant with California's financial responsibility
requirements. It is now a permanent program and available in
all counties.
The IC oversees the program with the help of a 15-member
advisory board. SB 1273 (Lara), enacted in 2013, expanded
access to the program and eliminated an eligibility requirement
that applicants have three years of driving experience. That
bill also directed the advisory committee to submit proposals to
the IC that would eliminate other barriers. The advisory
board's activities are described in LCAP's 2016 Report to the
Legislature & Consumer Education and Outreach Plan.
This bill eliminates obsolete references to the LCAP as a "pilot
program," the advisory committee report, and a long-past
deadline to file constitutional challenges to the program.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified 6/23/16)
None received
OPPOSITION: (Verified 6/23/16)
None received
AB 2885
Page 4
ASSEMBLY FLOOR: 76-0, 4/14/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,
Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey,
Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,
Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk,
Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark
Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,
Wood, Rendon
NO VOTE RECORDED: Irwin, Levine, Melendez, Nazarian
Prepared by: Hugh Slayden / INS. / (916) 651-1520
6/29/16 15:45:41
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