BILL ANALYSIS                                                                                                                                                                                                    �






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1472
          Author:        Committee on Budget
          As Amended:    June 12, 2014
          Consultant:    Brady Van Engelen 
          Fiscal:        Yes
          Hearing Date:  June 15, 2014
          
          Subject:  Property Insurance: Seismic Safety Account

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

          Background:  The passage of the Seismic Safety Act in 1975  
          established the Seismic Safety Commission. The Commission  
          was established to advise the Governor, the Legislature,  
          and local governments on risk mitigation in the event of an  
          earthquake. Subsequent legislation (Chapter 532, Statutes  
          of 2006) renamed the commission the Alfred E. Alquist  
          Seismic Safety Commission, moved the commission under the  
          California State and Consumer Services Agency, and added an  
          additional three members to the commission. Currently, the  
          commission is comprised of twenty commissioners. 
          
          Proposed Law:  This bill would make the following changes:

          Continued funding for the Seismic Safety Commission.  
          Existing law created the Seismic Safety Account, within the  
          Insurance Fund. Funds from the Seismic Safety Account are  
          to be distributed, upon appropriation, to the Alfred E.  
          Alquist Seismic Safety Commission and to the Department of  
          Insurance for costs related to the administration of the  
          assessment. The account is funded by an assessment on each  
          individual that owns real property, commercial or  
          residential, that is covered by a property insurance  
          policy. This bill would extend the assessment to each  
          individual that rents or leases property, commercial or  
          residential, that is covered by an insurance policy. 

          Fiscal Effect: According to the Department of Finance, this  
          assessment on commercial or residential property would  
          generate an additional $300,000 annually.  
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          Support: Unknown  

          Opposed: Unknown

          Comments: Funds required for the support of the commission  
          in the Seismic Safety Account would be distributed to the  
          commission upon appropriation by the Legislature.  This  
          measure is subject to a 2/3 vote. This measure contains an  
          urgency clause in order to address the continuing threat of  
          loss of life and property damage due to earthquakes. 
          































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