BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 800
                                                                  Page  1

          Date of Hearing:   May 13, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 800 (Duvall) - As Amended:  May 5, 2009 

          Policy Committee:                              Insurance  
          Vote:10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill addresses several licensing issues within the  
          jurisdiction of the California Department of Insurance (CDI) to  
          clarify and modernize this area of law. This bill relies on  
          statutory guidance provided by the National Association of  
          Insurance Commissioners (NAIC) Producer Licensing Model Act  
          (PLMA). Specifically, this bill:

          1)Facilitates licensure activities online by authorizing  
            licensure renewal in this manner and  clarifies online  
            communication processes and applications. 

          2)Clarifies CDI access to criminal background check information.  


          3)Clarifies non-resident pre-licensure requirements and  
            organizational licenses to align with the PMLA. 

          4)Makes other clarifying changes. 

           FISCAL EFFECT  

          Minor absorbable costs to CDI to continue oversight of the  
          licensing operations with the department's jurisdiction. 

           COMMENTS  

           Rationale  . This bill is sponsored by CDI to align California  
          statutes with the PLMA. Numerous other states have passed the  
          NAIC PLMA or similar licensing laws enhancing or improving  
          compliance with the reciprocity licensing mandates of the  








                                                                  AB 800
                                                                  Page  2

          Gramm-Leach-Bliley Act (GLBA). This bill increases uniformity  
          between California and other states. This bill clarifies state  
          law to increase uniformity and conform to PLMA recommendations,  
          but does not reduce oversight or standards. 



           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081