BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2151
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                           ASSEMBLY COMMITTEE ON INSURANCE
                                 Jose Solorio, Chair
                    AB 2151 (Torres) - As Amended:  March 24, 2010
           
          SUBJECT  :   Automobile insurance: public safety officers

           SUMMARY  :   Provides an exemption from the duty to report  
          automobile accidents to a private insurer if the accident occurs  
          while a public safety officer is driving his or her personal  
          vehicle at the request or direction of the employer, in the  
          course of the officer's duties.  Specifically,  this bill  :  

          1)Provides that a peace officer, a member of the California  
            Highway Patrol (CHP), or a firefighter does not have to report  
            an accident to his or her private insurer that occurs in his  
            or her personal vehicle if the personal vehicle is being  
            driven at the request or direction of the officer's employer  
            in the course of the officer's duties.

          2)Provides that these officers shall be indemnified pursuant to  
            specified provisions of the Government Code for any losses  
            resulting from an accident described above.

          3)Provides that the obligation to report evidence of insurance  
            to the Department of Motor Vehicles (DMV) after an accident is  
            satisfied by an officer described above for an accident  
            subject to the bill by filing a report indicating that the  
            vehicle is owned by the officer and being driven at the  
            request or direction of the officer's employer in the course  
            of employment.

           EXISTING LAW  :

          1)Provides that a peace officer, a member of the CHP, or a  
            firefighter does not have to report an accident to his or her  
            private insurer if the accident occurs during the course of  
            employment, and while the officer is driving a vehicle leased  
            or owned by the employer.

          2)Provides that a public entity is generally responsible to  
            indemnify a public employee for losses that occur during the  
            course of employment, and establishes the procedures for both  
            the employee and employer to follow in order to preserve their  








                                                                  AB 2151
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            respective rights.

          3)Requires drivers to report evidence of financial  
            responsibility to the DMV after being in an automobile  
            accident.

           FISCAL EFFECT  :   Undetermined.

           COMMENTS  :   

           1)Purpose  .  According to the author, and the sponsor, California  
            Professional Firefighters, local agencies are increasingly  
            asking safety officers, especially firefighters, to drive in  
            their personal vehicles between work-related locations where  
            their services are required.  This places the officers'  
            personal driving records at risk, and adversely impacts their  
            premium expenses for their personal automobile insurance  
            policy.  They argue that these costs should be part of the  
            employment costs covered by the public agency, and this bill  
            remedies the problem.

           2)Department of Insurance regulations  .  According to regulations  
            adopted by the Insurance Commissioner that govern when an  
            insurer may determine that a driver was principally at fault  
            in an accident, the insurer is prohibited from doing so if  
            "The driver was responding to a call of duty as a paid or  
            volunteer member of any police or fire department, first aid  
            squad, or of any law enforcement agency, while performing any  
            other governmental function in a public emergency."  While  
            this provision provides some protection to an officer, it does  
            not fully address the issue that the employing agency should  
            be responsible for incidents that occur during the course of  
            employment that do not rise to the level of a public  
            emergency.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Professional Firefighters

           Opposition 
           
          None received.
           








                                                                 AB 2151
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          Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086