BILL ANALYSIS
AB 2746
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7Date of Hearing: April 28, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2746 (Blakeslee) - As Amended: April 8, 2010
Policy Committee: Insurance
Vote:12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the California Earthquake Authority to
contract for a chief mitigation officer and requires the CEA to
establish the duties of the chief mitigation officer. In
addition, this bill authorizes the CEA to accept grants and
gifts related to residential retrofit programs from federal,
state, and local government and private sources.
FISCAL EFFECT
No direct fiscal impact for the staffing provisions of this
bill. The California Earthquake Authority (CEA) is a privately
financed, publicly managed agency with 25 civil service
positions and a handful of temporary and exempt positions.
COMMENTS
1)Rationale. This bill is sponsored by the author to provide the
CEA with greater staffing flexibility and to specify the
duties of a chief mitigation officer. 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 more than $2 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.
2)Related Legislation . AB 43 (Blakeslee) in 2009 also addressed
CEA staffing. AB 43 was vetoed due to concerns about
eliminating the 25 staff person civil service cap in place at
CEA. AB 2746 does not address the elimination of the civil
AB 2746
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service cap on employees.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081