BILL ANALYSIS                                                                                                                                                                                                    �






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1491
          Author:        Committee on Budget
          As Amended:    June 13, 2012
          Consultant:    Brady Van Engelen
          Fiscal:        Yes
          Hearing Date:  June 14, 2012
          
          Subject:  Continued funding for the Alfred E. Alquist 
          Seismic Safety Commission

          Summary:  Statutory changes necessary for the continued 
          funding of the Seismic Safety Commission. 

          Background:  Existing law provides for the Seismic Safety 
          Account within the Insurance Fund. Funds within the account 
          may be appropriated by the Legislature to support the 
          activities of the Seismic Safety Commission and certain 
          administrative costs incurred by the Department of 
          Insurance.  Existing law provides for assessments levied 
          against certain insurers to be deposited within the Seismic 
          Safety Account.  The provisions establishing the Seismic 
          Safety Account and authorizing these assessments is set to 
          expire on July 1, 2012. 

          Proposed Law:  This bill would make the following changes:

          Continued funding for the Seismic Safety Commission.  
          Requires the Department of Insurance to calculate an annual 
          assessment to be charged to each commercial and residential 
          property exposure based on specified factors.  Requires the 
          insurer to collect the assessment and remit it to the 
          Department of Insurance unless the insurer elects to pay 
          the assessment on the insured's behalf. 
          
          Fiscal Effect:  Budget Bill Language has been included in 
          the 2012 Budget Act that would be implemented if this 
          measure does not receive the necessary votes for passage.  
          The adopted budget bill language would allow the Department 
          of Finance to augment the Seismic Safety Commission's 
          budget by $923,000 in General Fund in the event that fee 
          revenue is no longer available to cover the costs to 
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          support the commission."

          Support:   Unknown

          Opposed:  Unknown

          Comments:  This bill provides the necessary statutory 
          references for the continued existence of the Alfred E. 
          Alquist Seismic Safety Commission.  This bill would extend 
          the operation of these provisions indefinitely.  This bill 
          is subject to a 2/3 vote. 
































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