Store Research
ASSEMBLY BILL 692 (LANCASTER – 1985)
CHAPTER 770, STATUTES OF 1985, AB 692
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Numerous sections of the Insurance Code were amended in 1985 following legislative passage of Assembly Bill 692. (See Exhibit #1e) This bill was carried by Assembly member Bill Lancaster for the Department of Insurance. (See Exhibit #13, document PE-1)
Assembly Bill 692 was assigned to the Assembly Committee on Finance and Insurance and the Senate Committee on Insurance, Claims and Corporations where policy issues raised by the bill were considered. (See Exhibits #3 and #8) The fiscal ramifications of the bill were considered by the Assembly Committee on Ways and Means and the Senate Committee on Appropriations. (See Exhibits #2 and #5)
Three amendments were made to Assembly Bill 692. (See Exhibits #1b through #1d and #2) Subsequent to legislative approval, Governor George Deukmejian signed the bill on September 18th, and it was recorded by the Secretary of State on September 19th as Chapter 770 of the Statutes of 1985. (See Exhibits #1e and #2)
The Third Reading analysis of Assembly Bill 692 as amended on June 18, 1985 described this bill as follows:
DIGEST: This bill allows increase in insurance fees and other charges, as specified, and extends the sunset date of the Insurance Fund from July 1, 1986 to July 1, 1989.
(See Exhibit #10, page 1)
In his letter to Governor Deukmejian, Assembly member Lancaster discussed the objectives, background and rationale driving his bill:
As you know, the Department of Insurance is funded by the Insurance Fund, a special fund comprised of fees and other charges imposed upon the insurance industry. That fund is scheduled to sunset on July 1, 1986. AB 692 would extend the sunset on the Insurance Fund for three years. It would also increase the fees and charges made by this department by 18 percent across the board, and would require the department to institute year-round licensing for agents and brokers beginning with the 1986 license renewals.
It is anticipated that the 18 percent fee increase would generate approximately $2.1 million in revenue. This and the institution of year-round licensing will help solve this department’s cash flow problems.
(See Exhibit #13, document PE-1)