BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
41 (Solorio)
Hearing Date: 7/15/2010 Amended: 6/22/2010
Consultant: Katie Johnson Policy Vote: BFI 7-2
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BILL SUMMARY: AB 41 would modify and extend the sunset from
January 1, 2011, to January 1, 2015, on the requirement on
insurers to report community development investments to the
California Department of Insurance (CDI).
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
CDI oversight minor and absorbable Special*
*Insurance Fund
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STAFF COMMENTS:
Any expenses to CDI to provide guidance to insurers and to
collect policy statements and to make them available to the
public would be minor and absorbable.
Existing law, the California Organized Investment Network (COIN)
law, which sunsets on January 1, 2011, requires all California
admitted insurers to provide information biennially to CDI on
all community development investments and community development
infrastructure investments they make in the state.
This bill would instead sunset the provisions on January 1,
2015, and would amend the provisions to:
1) Require each California insurer in California to provide
information to CDI by January 1, 2014, instead of
biennially, on its community development investments and
community development infrastructure investments in the
state;
2) Require CDI, by May 31, 2014, instead of biennially, to
provide information on its website on the aggregate insurer
community development and community development
infrastructure investments, and the aggregate amount of
California public debt purchased by insurers.
This bill would add the following provisions:
1) No later than July 1, 2011, this bill would require
insurers that write premiums of $100 million or more
annually to develop and file with CDI a policy statement
that
would detail each insurer's goals for the current and
following year on community development and community
development infrastructure investments. Insurers would be
required to update the document biennially and, if any
changes were
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AB 41 (Solorio)
made, to submit it to CDI no later than July 1 of the
appropriate year. A link to this information would be
available on CDI's website.
2) This bill would state that, where practicable, it is the
policy of California to be supportive of community
development investments and community development
infrastructure investments, and insurers should be
encouraged to invest in such investments that benefit the
state and its low and moderate income communities.
A recent survey by CDI showed that 54 out of 485 insurers that
responded have adopted a policy related to community investment.
There could be about 120 companies that would be subject to this
new requirement.
AB 1910 (Coto, 2008), a bill similar to this, was vetoed due to
concerns about the state budget delay with no specific concerns
about the content of the legislation.