BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1425
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

             AB 1425 (Committee on Insurance) - As Introduced:  March 22, 
                                        2011 

          Policy Committee:                              InsuranceVote:12 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires regulations adopted by the Insurance 
          Commissioner (IC) relating to life settlements to be adopted 
          pursuant to the Administrative Procedure Act (APA).  
          Specifically, this bill:  

          1)Repeals the delegation of authority to the IC to adopt 
            regulations relating to life settlements.

          2)Repeals the authorization to adopt those regulations as 
            emergency regulations.

          3)Provides an authorization for the IC to adopt regulations as 
            reasonably necessary to implement the life settlement law 
            using the non-emergency procedures required by the APA.

           FISCAL EFFECT  

          The Department of Insurance indicates that the cost associated 
          with replacing the emergency regulations with non-emergency 
          regulations would be less than $30,000 and absorbable within 
          their existing resources. 

           COMMENTS  

           Purpose  .  This bill is intended to modify the delegation to the 
          IC of authority to adopt regulations to implement the life 
          settlement law.  When initially enacted, the bill created a new 
          regulatory program.  The authority to adopt regulations and the 
          emergency regulation procedure were adopted in two separate 








                                                                  AB 1425
                                                                  Page  2

          places in the statute.  Further, the procedure as enacted 
          authorized use of the emergency regulation procedure on an 
          ongoing basis.  The Legislative intent was to grant this 
          expedited authority for the initial round of regulations 
          necessary to implement the new law.  However, the bill did not 
          specify that the emergency regulation authority was limited to 
          the initial regulations.  This bill adopts standard language on 
          authority and procedure in the same code section.


           Analysis Prepared by :    Julie Salley-Gray / APPR. / (916) 
          319-2081