BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1491|
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                                 THIRD READING


          Bill No:  AB 1491
          Author:   Assembly Budget Committee
          Amended:  6/13/12 in Senate
          Vote:     27 - Urgency

           
           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  11-0, 6/14/12
          AYES:  Leno, Alquist, DeSaulnier, Evans, Hancock, Liu, 
            Lowenthal, Negrete McLeod, Simitian, Wolk, Wright
          NO VOTE RECORDED:  Emmerson, Anderson, Fuller, Gaines, La 
            Malfa
           
          ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Seismic Safety Budget Trailer Bill

           SOURCE  :     Author


           DIGEST  :    This bill provides the necessary statutory 
          references for the continued existence of the Alfred E. 
          Alquist Seismic Safety Commission (Commission).  This bill 
          extends the operation of these provisions indefinitely.  

           ANALYSIS  :    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 Commission and certain administrative 
          costs incurred by the Department of Insurance (CDI).  
          Existing law provides for assessments levied against 
          certain insurers to be deposited within the Seismic Safety 
          Account.  The provisions establishing the Seismic Safety 
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                                                               AB 1491
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          Account and authorizing these assessments is set to expire 
          on July 1, 2012. 

          This bill requires the CDI to calculate an annual 
          assessment to be charged to each commercial and residential 
          property exposure based on specified factors, and requires 
          the insurer to collect the assessment and remit it to the 
          CDI unless the insurer elects to pay the assessment on the 
          insured's behalf.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Budget and Fiscal Review Committee, 
          Budget Bill language has been included in the 2012 Budget 
          Act that would be implemented if this bill does not receive 
          the necessary votes for passage.  The adopted Budget Bill 
          language would allow the Department of Finance to augment 
          the Commission's budget by $923,000 in General Fund in the 
          event that fee revenue is no longer available to cover the 
          costs to support the Commission.


          DLW:k  6/14/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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