AB 2927 — California Earthquake Authority.

Summary

Existing law establishes the California Earthquake Authority (CEA) , administered under the authority of the Insurance Commissioner and governed by a 3-member board. Under existing law, the CEA is authorized to transact insurance in this state as necessary to sell policies of basic residential earthquake insurance. Existing law establishes a capital structure for the CEA, with several sources of financing. Existing law generally makes all moneys and invested assets held in the California Earthquake Authority Fund, subject to specified restrictions, "available capital," which is the first source of financing used to pay earthquake claims and claim expenses. Under existing law, the California Earthquake Authority Fund is a continuously appropriated fund. Existing law authorizes the Treasurer, as agent for the CEA, to sell investment grade revenue bonds or issue or secure other debt financing of the CEA in an amount up to $1,000,000,000 if the benefits paid following an earthquake event exhaust 4 specified sources of capital, including the CEA's available capital and all insurer capital contributions and assessments. Existing law authorizes the CEA to surcharge all CEA policies, in a net amount not to exceed $1,000,000,000, plus costs of issuance and sale of those revenue bonds or other debt and amounts paid or payable to bond issuers and providers of credit support and letters of credit, to secure funds to repay the bonded indebtedness or other debt, and requires a CEA policy to include a specified notice of the surcharge to its policyholders. Existing law requires the aggregate amount of the surcharge to be reduced according to a specified market share calculation. This bill would revise that bond provision to require the CEA, with the Treasurer as its agent, to issue and sell investment grade revenue bonds or secure other debt financing, or both, in amounts up to $1,000,000,000, plus costs of issuance and sale of those revenue bonds, costs of securing that debt financing, and amounts paid or payable to bond issuers and providers of credit support and letters of credit, if the 4 existing specified sources of capital plus risk transfer provided through capital market contracts are exhausted. By creating a new mandatory source of funding, the bill would make an appropriation. This bill would clarify that the CEA may use its existing surcharge authority to additionally repay costs of issuance and sale of revenue bonds or other debt, and amounts paid or payable to bond issuers and providers of credit support and letters of credit. The bill would eliminate the surcharge reduction requirements. The bill would amend the required notice of surcharge provided to policyholders to state that if a policyholder fails to cancel or nonrenew the CEA policy and fails to pay the CEA policy premium and surcharge by the payment deadline, both the CEA policy and the related policy of residential property insurance will be canceled. The bill would also make findings and declarations.

Bill Text

• Chaptered 09/27/18 - Chaptered Current pdf September 27, 2018
• Enrolled 08/22/18 - Enrolled pdf August 22, 2018
• Amended 06/18/18 - Amended Senate pdf June 18, 2018
• Amended 05/09/18 - Amended Assembly pdf May 09, 2018
• Amended 04/12/18 - Amended Assembly pdf April 12, 2018
• Amended 03/22/18 - Amended Assembly pdf March 22, 2018
• Introduced 02/16/18 - Introduced pdf February 16, 2018
• AB2927 View text html

Action History

1. September 27, 2018

   Chaptered by Secretary of State - Chapter 828, Statutes of 2018.

2. September 27, 2018

   Approved by the Governor.

3. August 27, 2018

   Enrolled and presented to the Governor at 3 p.m.

4. August 20, 2018

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6359.).

5. August 14, 2018

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 16 pursuant to Assembly Rule 77.

6. August 13, 2018

   Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 5282.).

7. August 07, 2018

   Read second time. Ordered to Consent Calendar.

8. August 06, 2018

   From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

9. June 28, 2018

   From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 27). Re-referred to Com. on APPR.

10. June 18, 2018

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.

11. June 07, 2018

    Referred to Com. on INS.

12. May 25, 2018

    In Senate. Read first time. To Com. on RLS. for assignment.

13. May 25, 2018

    Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 5306.)

14. May 17, 2018

    Read second time. Ordered to Consent Calendar.

15. May 16, 2018

    From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 16).

16. May 10, 2018

    Re-referred to Com. on APPR.

17. May 09, 2018

    From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.

18. April 18, 2018

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 18). Re-referred to Com. on APPR.

19. April 16, 2018

    Re-referred to Com. on INS.

20. April 12, 2018

    From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

21. April 02, 2018

    Re-referred to Com. on INS.

22. March 22, 2018

    From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

23. March 22, 2018

    Referred to Com. on INS.

24. February 17, 2018

    From printer. May be heard in committee March 19.

25. February 16, 2018

    Read first time. To print.

Sponsors

• Nazarian · Primary

Votes

Subjects