BILL ANALYSIS
SENATE COMMITTEE ON BANKING, FINANCE,
AND INSURANCE
Senator Ronald Calderon, Chair
AB 2779 (Committee on Insurance) Hearing Date: June 16, 2010
As Amended: April 8, 2010
Fiscal: No
Urgency: No
VOTES: Asm. Floor(04/29/10)74-01/Pass
Asm. Ins. (04/21/10)12-0/Pass
SUMMARY Would delete obsolete provisions of law establishing
steps the Insurance Commissioner was mandated to take prior to
the start-up of California's Low Cost Auto Insurance Program in
2000 and before its expansion to additional counties in 2006.
DIGEST
Existing law
1.Authorizes the California Low-Cost Automobile Insurance
Program to begin in the County of Los Angeles and the City and
County of San Francisco no later than July 1, 2000 and
specifies the Insurance Commissioner shall, in consultation
with the California Automobile Assigned Risk Plan, adopt
implementation regulations within 60 days of the program's
effective date;
2.Requires the California Low-Cost Automobile Insurance Program
to begin in the Alameda, Fresno, Orange, Riverside, San
Bernardino, and San Diego counties by April 1, 2006, and in
all other counties at the discretion of the Insurance
Commissioner and provides that the Commissioner, in
consultation with the California Automobile Assigned Risk
Plan, must adopt regulations to implement this program
expansion;
3.Requires the Insurance Commissioner to adopt these regulations
as emergency regulations.
AB
2779 (Committee on Insurance), Page 2
This bill
1. Would delete the above provisions of existing law.
COMMENTS
1. Purpose of the bill To clean-up the Insurance Code by
removing certain "dead letter" provisions which served a
function at the time of the California Low Cost Automobile
Program's original establishment and subsequent expansion
but no longer serve any function within the California
Insurance Code.
2. Background This a code clean-up bill sponsored by the
Assembly Insurance Committee.
3. Questions None
4. Suggested Amendments None
5. Prior and Related Legislation
In 1999, SB 171 (Escutia) established the low-cost
automobile insurance program in Los Angeles County (Chapter
794, Statutes of 1999), and in that same year SB 527
(Speier) established the program in the City and County of
San Francisco (Chapter 807, Statutes of 1999). In 2005, SB
20 (Escutia) extended the program to six additional counties
and provided authority for the program to be extended
statewide, based upon the Insurance Commissioner's
determination of need for that insurance.
POSITIONS
Support
None
Oppose
None
AB
2779 (Committee on Insurance), Page 3
Consultant: Kenneth Cooley (916) 651-4102