BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 866
                                                                  Page  1

          Date of Hearing:   May 20, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 866 (Niello) - As Amended:  May 12, 2009  

          Policy Committee:                              Insurance  
          Vote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Earthquake Authority (CEA) to  
          post a current law annual report on the CEA website. In  
          addition, this bill changes the submission date of the annual  
          report from May to August. 

           FISCAL EFFECT  

          No state fiscal impact. CEA is privately financed by earthquake  
          insurance premiums. 

           COMMENTS  

           1)Rationale  . This bill requires posting a current law report  
            online to increase access to the information and increase  
            transparency of information. In addition, this bill allows CEA  
            to submit the annual report several months later to account  
            for the receipt of additional financial data in April each  
            year.

           2)Background . The CEA is administered under the authority of the  
            Insurance Commissioner (IC) and is privately financed by more  
            than 700,000 insurance policies and capital of $2.4 billion.  
            CEA is authorized to sell policies of basic earthquake  
            insurance in conjunction with policies of residential property  
            insurance issued by insurers that have transferred their  
            earthquake risk to the CEA.

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