California 2017-2018 Regular Session Status: In Committee

AB 566 — Insurance.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) Existing law requires each admitted insurer with annual premiums written in California equal to or in excess of $100,000,000 for any reporting year to provide information to the Insurance Commissioner by July 1, 2016, on all of its community development investments, community development infrastructure investments, and green investments, as defined, in California. Existing law requires this information to be provided as part of the filing of periodic financial statements required by existing law, through a data call, or through other means as determined by the commissioner. Existing law requires the commissioner, by July 1, 2016, to provide specified information on the department's Internet Web site regarding aggregate insurer community development investments and community development infrastructure investments, actions taken by COIN to analyze that data, the aggregate amount of California public debt purchased by insurers, the aggregate amount of identified California investments, as defined, and the aggregate amount of California insurer investments in green investments. This bill would instead require each admitted insurer described above to report that information between June 1, 2018, and July 1, 2018, for the reporting years of 2016 and 2017. The bill would require the information to be reported only through a data call. The bill would instead require the commissioner to provide the information described above no sooner than July 1, 2019, and no later than December 31, 2019. The bill would require the commissioner to convene a task force to study and evaluate strategies to increase investment by insurers in low- to moderate-income communities in the state, to review the effectiveness of COIN and make recommendations regarding its modification, expansion, or replacement, and make recommendations regarding the establishment of a clearinghouse for COIN-eligible investments. The bill would require the task force's recommendations to be reported to the Legislature no sooner than July 1, 2019, and no later than December 31, 2019. (2) Existing law authorizes the commissioner to obtain information from insurers through various means, including an examination of the business and affairs of the insurer, or by the issuance of subpoenas or subpoenas duces tecum for witnesses to attend, testify, and produce documents before him or her on any subject touching insurance business or in the aid of his or her duties, as specified. This bill would authorize the commissioner to initiate a data call by bulletin upon reasonable notice to any class of insurers if the data call directly relates to specified subjects. The bill would authorize the commissioner to initiate a data call on other subjects only through an adopted regulation. The bill would require the commissioner to limit the subject of data calls to activity within the state, and would prohibit the commissioner from initiating a data call to obtain information that is otherwise available through other specified means. (3) Existing law imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates. Existing law, until January 1, 2017, allows a credit under the Personal Income Tax Law, the Corporation Tax Law, and a credit against the tax imposed on an insurer in an amount equal to 20% of a qualified investment, as defined, made in a community development financial institution, as defined, but not to exceed, in the aggregate amount under all those laws, $50,000,000 per year and authorizes the California Organized Investment Network to certify investments for the credit until January 1, 2017. Existing law provides that if a qualified investment is reduced before the end of the 60th month, but not below $50,000, an amount equal to 20% of the total reduction for the year shall be added to the tax imposed on the taxpayer. Existing law also provides that if a qualified investment is withdrawn before the end of the 60th month and not reinvested in another community development financial institution within 60 days, the entire amount of any credit previously allowed for that taxable year is required to be added to the tax imposed on the taxpayer. These provisions are repealed on December 1, 2017. This bill would establish similar credits under the Personal Income Tax Law, the Corporation Tax Law, and the tax imposed on an insurer for taxable years or years, as applicable, beginning on or after January 1, 2017, and before January 1, 2022. The bill would, as compared to the tax credit that expired on January 1, 2017, require priority for the tax credit to be given to insurance company investors over all other tax credit investors and would instead require that the provision regarding withdrawal, without reinvestment, of a qualified investment also apply when a qualified investment is reduced. The bill would repeal these provisions on December 1, 2022.

Bill Text

Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Held under submission.

  4. In committee: Set, first hearing. Referred to APPR. suspense file.

  5. Re-referred to Com. on APPR.

  6. Read second time and amended.

  7. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 24).

  8. From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 11. Noes 1.) (April 19). Re-referred to Com. on REV. & TAX.

  9. Measure version as amended on March 23 corrected.

  10. Re-referred to Com. on INS.

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

  12. Referred to Coms. on INS. and REV. & TAX.

  13. From printer. May be heard in committee March 17.

  14. Read first time. To print.

Sponsors

  • Ridley-Thomas · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Ridley-Thomas

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

finance health-insurance
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Frequently asked questions

What does AB 566 do?
(1) Existing law requires each admitted insurer with annual premiums written in California equal to or in excess of $100,000,000 for any reporting year to provide information to the Insurance Commissioner by July 1, 2016, on all of its community development investments, community development infrastructure investments, and green investments, as defined, in California. Existing law requires this information to be provided as part of the filing of periodic financial statements required by existing law, through a data call, or through other means as determined by the commissioner. Existing law requires the commissioner, by July 1, 2016, to provide specified information on the department's Internet Web site regarding aggregate insurer community development investments and community development infrastructure investments, actions taken by COIN to analyze that data, the aggregate amount of California public debt purchased by insurers, the aggregate amount of identified California investments, as defined, and the aggregate amount of California insurer investments in green investments. This bill would instead require each admitted insurer described above to report that information between June 1, 2018, and July 1, 2018, for the reporting years of 2016 and 2017. The bill would require the information to be reported only through a data call. The bill would instead require the commissioner to provide the information described above no sooner than July 1, 2019, and no later than December 31, 2019. The bill would require the commissioner to convene a task force to study and evaluate strategies to increase investment by insurers in low- to moderate-income communities in the state, to review the effectiveness of COIN and make recommendations regarding its modification, expansion, or replacement, and make recommendations regarding the establishment of a clearinghouse for COIN-eligible investments. The bill would require the task force's recommendations to be reported to the Legislature no sooner than July 1, 2019, and no later than December 31, 2019. (2) Existing law authorizes the commissioner to obtain information from insurers through various means, including an examination of the business and affairs of the insurer, or by the issuance of subpoenas or subpoenas duces tecum for witnesses to attend, testify, and produce documents before him or her on any subject touching insurance business or in the aid of his or her duties, as specified. This bill would authorize the commissioner to initiate a data call by bulletin upon reasonable notice to any class of insurers if the data call directly relates to specified subjects. The bill would authorize the commissioner to initiate a data call on other subjects only through an adopted regulation. The bill would require the commissioner to limit the subject of data calls to activity within the state, and would prohibit the commissioner from initiating a data call to obtain information that is otherwise available through other specified means. (3) Existing law imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates. Existing law, until January 1, 2017, allows a credit under the Personal Income Tax Law, the Corporation Tax Law, and a credit against the tax imposed on an insurer in an amount equal to 20% of a qualified investment, as defined, made in a community development financial institution, as defined, but not to exceed, in the aggregate amount under all those laws, $50,000,000 per year and authorizes the California Organized Investment Network to certify investments for the credit until January 1, 2017. Existing law provides that if a qualified investment is reduced before the end of the 60th month, but not below $50,000, an amount equal to 20% of the total reduction for the year shall be added to the tax imposed on the taxpayer. Existing law also provides that if a qualified investment is withdrawn before the end of the 60th month and not reinvested in another community development financial institution within 60 days, the entire amount of any credit previously allowed for that taxable year is required to be added to the tax imposed on the taxpayer. These provisions are repealed on December 1, 2017. This bill would establish similar credits under the Personal Income Tax Law, the Corporation Tax Law, and the tax imposed on an insurer for taxable years or years, as applicable, beginning on or after January 1, 2017, and before January 1, 2022. The bill would, as compared to the tax credit that expired on January 1, 2017, require priority for the tax credit to be given to insurance company investors over all other tax credit investors and would instead require that the provision regarding withdrawal, without reinvestment, of a qualified investment also apply when a qualified investment is reduced. The bill would repeal these provisions on December 1, 2022.
Who sponsors AB 566?
AB 566 is sponsored by Ridley-Thomas.
What is the current status of AB 566?
This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 566?
Track AB 566 free on One Click Politics — get push/email alerts when it moves.

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