BILL ANALYSIS �
AB 2128
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2128 (Gordon) - As Amended: March 19, 2014
Policy Committee: InsuranceVote:9-3
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill extends sunset clauses on certain aspects of the
community development investment program within the California
Department of Insurance (CDI). Specifically, this bill:
1)Extends to January 1, 2020, the sunset date on the provisions
of law that define the scope of the Insurance Commissioner's
obligations to report on community development investments and
green investments, as defined.
2)Extends to January 1, 2020, the sunset date on the California
Organized Investment Advisory Board (Board).
3)Authorizes the Board to meet three or more times per year.
4)Deletes obsolete language relating to the staggering of terms
for the Board's initial members.
FISCAL EFFECT
Continuing the reporting and Board functions will result in only
minor and absorbable costs to CDI (Insurance Fund).
COMMENTS
1)Purpose . The author indicates AB 2128 was introduced to
ensure key provisions of the COIN program in the DOI do not
sunset, and to provide a vehicle for discussions about
improvements or reforms that might be made to the program.
The IC is expected to release a report on insurers' community
development investing by May 31, 2014, and it is expected the
report will provide the basis for discussions concerning the
AB 2128
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role of COIN in carrying out the state policy of encouraging
insurers to make community development investments. This bill
is sponsored by the California Department of Insurance.
2)Concerns . The insurance industry has expressed concerns about
continuing data calls documenting the scope or extent of
insurer community development investments, pointing out data
calls involve substantial time and expense and questioning the
value of further data collection.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081