BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2396 (Solorio)
Hearing Date: 8/2/2010 Amended: 8/2/2010
Consultant: Bob Franzoia Policy Vote: B,F&I 9-0
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BILL SUMMARY: AB 2396 would require a designated statistical
agent to conduct public meetings, as provided, would specify
records of the designated statistical agent that are public, and
would specify information that the designated statistical agent
is not required to make available to the public. This bill
would require a rating organization to provide experience rating
information, by electronic means, directly to information
service providers in the business of publishing or providing
experience rating information immediately prior to September 15,
1989, or to advisory organizations, as defined, on a timely
basis, as provided. This bill would require a licensed rating
organization to make experience rating information contained in
its records available to any information services company that
is engaged in furnishing workers' compensation information to
insurers, insurance agents, and insurance brokers, admitted or
licensed to transact workers' compensation insurance in this
state, as provided.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Public meeting access $23 $45 $45 Private*
Document access $100 $200 $200 Private*
* Assessments on member insurers
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
The Workers' Compensation Insurance Ratings Bureau (WCIRB) is an
unincorporated, nonprofit association of all insurance companies
licensed to transact workers compensation in California. Costs
to the WCIRB are assessed on all insurance companies that write
workers' compensation insurance in California.
This bill would subject the WCIRB to the Open Meetings and
Public Records statutes that govern public entities. Currently,
the WCIRB allows for public attendance at its standing committee
meetings. However, space is limited and off-site space would be
needed to accommodate more attendees at these meetings.
The WCIRB currently makes most of the documents that are the
subject of the bill available to the public at a fee that allows
the WCIRB to recoup the costs associated with creating and
maintaining those documents. However, the bill requires the
WCIRB provide the documents at the cost of duplication only
which will result in the WCIRB losing a significant amount of
revenue that allows for the offsetting of costs of creating and
maintaining documents, many of which are not statutorily
mandated but have been created in order to be of assistance its
members and the workers' compensation
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AB 2396 (Solorio)
insurance industry.
Staff notes that while it appears the bill is requiring the
WCIRB to make experience rating information available to
information service providers, there may be only one information
service provider meeting the definition in Insurance Code
11752.7 (e) (1) which references information service providers
"in existence prior to September 15, 1989." Preliminary
information suggests there is only one entity meeting that
definition. This could result in reduced access to experience
rating information.
This bill also requires that the WCIRB provide the information
by electronic means in a manner consistent with its own releases
or updates at a cost that is no greater than the direct cost of
duplication. Currently, the WCIRB provides experience rating
information for all experience rated policyholders on magnetic
tape to licensed insurance carriers and agents and brokers via
its on-line service. The information is updated weekly.
Staff estimates WCIRB will have combined costs and revenue
losses totaling $200,000 or more annually as a result having to
make documents available at the direct cost of duplication and
to make the experience rating information available to a sole
qualifying information service provider. Staff notes that
though it appears this provider makes the information available
free of charge, the bill does not require the provider maintain
that practice.