BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 982
                                                                  Page  1

          Date of Hearing:   May 20, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                      AB 982 (Tran) - As Amended:  May 4, 2009  

          Policy Committee:                              Insurance  
          Vote:10-0
                       Judiciary                              10-0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill clarifies several aspects of the sale or transfer of a  
          structured settlement. A structured settlement relates to tort  
          settlements that are converted to an annuity-like product, with  
          periodic payments that may have tax advantages, for example.  
          Specifically, this bill modifies the definition of "interest  
          parties" and clarifies that certain prohibitions apply if the  
          payee is located in California. 

           FISCAL EFFECT  

          No direct public fiscal impact. Although some features of  
          settlement transactions are codified in state law, subsequent  
          settlement activities addressed by this bill are between the  
          buyer and seller of the settlement. 

           COMMENTS  

           1)Rationale  . This bill is sponsored by the National Association  
            of Settlement Purchasers to clarify several technical aspects  
            of settlement transactions. 

           2)Structured settlements  are regulated by both state and federal  
            law. Federal laws are generally focused on tax provisions  
            governed by the Internal Revenue Code. State structured  
            settlement laws address rights in connection with transfers of  
            structured settlement payments and require that courts approve  
            structured settlement transfer agreements. 










                                                                  AB 982
                                                                  Page  2

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