SB 867,
as amended, Committee on Budget and Fiscal Review. begin deleteProperty insurance: Seismic Safety Account. end deletebegin insertState reserve fund ballot measure.end insert
Existing law provides that each statewide ballot measure submitted to the voters be designated by a numeral, which shall be the designation by which the measure is identified on the ballot and in the state ballot pamphlet. Under existing law, beginning with the November 3, 1998, statewide general election, all statewide ballot measures are numbered in a continuous sequence, commencing with the number “1” and continuing in numerical sequence for a period of 10 years, after which the numbering sequence recommences with the number “1” at the next statewide election.
end insertbegin insertExisting law permits the Legislature to propose to the voters amendments to the California Constitution. At the 2013-14 Second Extraordinary Session, the Legislature adopted Assembly Constitutional Amendment 1, which proposes a constitutional amendment relating to the establishment of state reserve funds in the State Treasury. Assembly Constitutional Amendment 1 is scheduled to be submitted to the voters at the November 4, 2014, statewide general election.
end insertbegin insertThis bill would provide that, notwithstanding the requirements described above regarding the numbering of statewide ballot measures, Assembly Constitutional Amendment 1 of the 2013-14 Second Extraordinary Session shall be designated as “Proposition 2” for purposes of the ballot, the sample ballot, the state ballot pamphlet, and the local voter’s pamphlet, and shall be placed as the 2nd ballot measure on the November 4, 2014, statewide general election ballot. The bill would further direct that any reference in the state ballot pamphlet or in a candidate’s statement to “Proposition 44” shall be changed to “Proposition 2” prior to final publication of the state ballot pamphlet or the voter’s pamphlet that contains the candidate’s statement.
end insertbegin insertThis bill would declare that it is to take effect immediately as an urgency statute.
end insertExisting law created the Seismic Safety Account as a special account within the Insurance Fund with the funds to be distributed, upon appropriation, to the Alfred E. Alquist Seismic Safety Commission for the support of the commission and to the Department of Insurance for the actual administrative costs incurred in collecting the assessments. In order to fund the account, an assessment, as specified, is imposed on each person who owns real property, commercial or residential, that is covered by a property insurance policy.
end deleteThis bill would extend that assessment to each person who rents or leases real property, commercial or residential, that is covered by a property insurance policy.
end deleteThis bill would declare that it is to take effect immediately as an urgency statute.
end deleteVote: 2⁄3.
Appropriation: no.
Fiscal committee: begin deleteyes end deletebegin insertnoend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insert(a)end insertbegin insert end insertbegin insertNotwithstanding Section 13117 of the
2Elections Code or any other provision of law, Assembly
3Constitutional Amendment 1 of the 2013-14 Second Extraordinary
4Session (Resolution Chapter 1 of the 2013-end insertbegin insert14 Second
5Extraordinary Session) shall be designated as “Proposition 2”
6for purposes of the ballot and the state ballot pamphlet and shall
7be placed as the second ballot measure on the November 4, 2014,
8statewide general election ballot. If any material submitted to the
9Secretary of
State for inclusion in the state ballot pamphlet contains
P3 1a reference to “Proposition 44,” the Secretary of State shall revise
2the material by substituting “Proposition 2” for “Proposition 44”
3prior to final publication of the state ballot pamphlet.end insert
4(b) Assembly Constitutional Amendment 1 of the 2013-14
5Second Extraordinary Session shall be referred to in any sample
6ballot or voter’s pamphlet prepared pursuant to Chapter 4
7(commencing with Section 13300) of Division 13 of the Elections
8Code as “Proposition 2.” Notwithstanding any other provision of
9law, if any statement submitted by a candidate for inclusion in the
10voter’s pamphlet contains a reference to “Proposition 44,” the
11county elections official shall revise the statement by substituting
12“Proposition 2” for “Proposition 44” prior to final publication
13of the voter’s pamphlet that
contains the candidate’s statement.
This act is an urgency statute necessary for the
15immediate preservation of the public peace, health, or safety within
16the meaning of Article IV of the Constitution and shall go into
17immediate effect. The facts constituting the necessity are:
18In order for Assembly Constitutional Amendment 1 of the
192013-14 Second Extraordinary Session to be properly designated
20on the ballot and in the state ballot pamphlet for the November 4,
212014, statewide general election, it is necessary that this act take
22effect immediately.
Section 12975.9 of the Insurance Code is
24amended to read:
(a) The Seismic Safety Account is hereby created as
26a special account within the Insurance Fund. Moneys in the account
27are available, upon appropriation by the Legislature, for the
28purposes of this section to fund the department and the Alfred E.
29Alquist Seismic Safety Commission.
30(b) There is hereby imposed an assessment on each person who
31owns, rents, or leases real property, commercial or residential, that
32is insured by a property insurance policy. The department shall
33calculate the annual assessment to be charged to each commercial
34and residential earned property exposure. The assessment shall be
35set annually every August 1, beginning August 1, 2014,
for all
36commercial and residential earned property exposures reported
37during the previous calendar year. The annual assessment shall be
38set at fifteen cents ($0.15) per earned property exposure for the
39first three years of the implementation of this section. Each year
40thereafter, the annual assessment shall be based upon the number
P4 1of earned property exposures from both commercial and residential
2insurance policies, the amount required for the support of the
3Alfred E. Alquist Seismic Safety Commission, the actual collection
4and administrative costs of the department, and the maintenance
5of an adequate reserve, but shall not exceed fifteen cents ($0.15)
6per earned property exposure.
7(c) The insurer, upon receipt of an invoice from the department,
8shall transmit payment to the department for deposit into the
9Seismic Safety Account. The insurer shall recover the assessment
10from the insured, unless the insurer elects to pay the assessment
11on the
insured’s behalf. The insurer may provide a description of
12the assessment to the insured as part of its billing statement. Any
13deficiency or excess in the amount collected in relation to the
14appropriation authority for the commission and the department
15shall be accounted for in the subsequent annual fee calculation.
16Any balance remaining in the Seismic Safety Account at the end
17of each fiscal year shall be retained in the account and carried
18forward to the next fiscal year.
19(d) Funds in the Seismic Safety Account shall be distributed,
20upon appropriation by the Legislature, to the Alfred E. Alquist
21Seismic Safety Commission for the support of the commission
22and to the department for the actual administrative costs incurred
23in collecting the assessments.
24(e) Any assessment collected from an insured that has not been
25remitted to the department shall be a debt owed to the state by the
26
insurer. This part does not impose any obligation upon an insurer
27to take any legal action to enforce the collection of the assessment
28imposed by this section.
29(f) Payment of the assessment shall be considered delinquent
30if not paid within 45 days of the invoice date. The department is
31authorized to charge a late fee of 1.5 percent per month of the
32balance due, compounded monthly, for any amount not paid within
33this period in accordance with Section 12995.
34(g) (1) Notwithstanding Section 10231.5 of the Government
35Code, the department shall report by December 1 of each year,
36beginning on December 1, 2014, to the Legislature, the Alfred E.
37Alquist Seismic Safety Commission, and the Department of
38Finance on the assessment calculation methodology employed.
P5 1(2) A report to be submitted to the Legislature pursuant to this
2
subdivision shall be submitted in compliance with Section 9795
3of the Government Code.
This act is an urgency statute necessary for the
5immediate preservation of the public peace, health, or safety within
6the meaning of Article IV of the Constitution and shall go into
7immediate effect. The facts constituting the necessity are:
8In order to protect the public from the continuing threat of loss
9of life and property damage due to earthquakes, it is necessary that
10this act take effect immediately.
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