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AB-295 Insurance: community development investments.(2019-2020)

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Date Published: 01/28/2019 09:00 PM
AB295:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 295


Introduced by Assembly Member Daly

January 28, 2019


An act to amend Section 926.2 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 295, as introduced, Daly. Insurance: community development investments.
Until January 1, 2020, existing law requires an admitted insurer with annual premiums written in California equal to or in excess of $100,000,000 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 for the calendar years 2013, 2014, and 2015. Existing law requires the commissioner, by December 31, 2016, to provide specified information on the Department of Insurance’s internet website, including information on aggregate insurer community development investments.
This bill would extend the operation of those provisions until January 1, 2024, and would require an admitted insurer with annual premiums written in California equal to or in excess of $100,000,000 to provide investment information for calendar years 2018, 2019, and 2020 to the commissioner by July 1, 2021. The bill would require the commissioner to provide specified information on the department’s internet website by December 31, 2021, and would require the commissioner to additionally include information on whether the elimination of the California Organized Investment Network tax credit materially affected the level of specified investments made by insurers in California.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 926.2 of the Insurance Code is amended to read:

926.2.
 (a) (1) Each An admitted insurer with annual premiums written in California equal to or in excess of one hundred million dollars ($100,000,000) for any reporting year shall provide information to the commissioner on all of its community development investments, community development infrastructure investments, and green investments in California. This information shall be reported by July 1, 2016, 2021, on investments made or held during the calendar years 2013, 2014, and 2015 2018, 2019, and 2020 and list, if applicable, investments that are high-impact, green, or rural. The information reported by insurers may include investments both held and originated, the percentage of any investment that qualifies, and why an investment qualifies. This information shall be provided as part of the required filing pursuant to Section 900 or 11131, or through a data call, or by other means as determined by the commissioner. The California Organized Investment Network (COIN) shall provide insurers with information on why investments, if any, were found not to be qualified by the commissioner.
(2) This subdivision does not preclude an insurer that is a member of an insurance holding company system, as defined in Article 4.7 (commencing with Section 1215) of Chapter 2, from complying with paragraph (1) through a single filing on behalf of the entire group of affiliated companies, provided that the data so filed accurately reflects the investments made by each of the affiliates, and accurately attributes, by National Association of Insurance Commissioners (NAIC) number or other identifier required by the commissioner, which of the investments were made by each affiliated company.
(3) This subdivision does not preclude an insurer from satisfying the requirements of paragraph (1) through a filing made by a community development financial institution, provided all of the following conditions are met:
(A) The insurer has no less than a 10 percent ownership interest in a COIN-certified community development financial institution.
(B) The insurer makes community development investments and community development infrastructure investments in and through the community development financial institution.
(C) The community development financial institution accurately files the information required by paragraph (1) with the commissioner on behalf of the insurer and accurately attributes, by NAIC number or other identifier required by the commissioner, which investments, including the dollar amounts of the investments, were made by each insurer on whose behalf the community development financial institution is reporting.
(b) The commissioner shall, by December 31, 2016, 2021, provide all of the following:
(1) Information on the department’s Internet Web site internet website on the aggregate insurer community development investments and community development infrastructure investments. Insurers that make high-impact investments that are defined as innovative, responsive to community needs, not routinely provided by insurers, or have a high degree of positive impact on the economic welfare of low- or moderate-income individuals, families, or communities in urban or rural areas of California shall be identified.
(2) Information on the department’s Internet Web site internet website on the actions taken by COIN to analyze the data by insurers for the purpose of creating and identifying potential investment opportunities, including the development of investment opportunity bulletins. This information shall state the efforts made by COIN to market and expand outreach to communities.
(3) Information on the department’s internet website on whether the elimination of the COIN tax credit materially affected the level of community development investments, community development infrastructure investments, and green investments made by insurers in California.
(c) The department shall also, by December 31, 2016, 2021, provide information on the department’s Internet Web site internet website regarding the aggregate amount of California public debt (including all debt issued by the State of California or a California state or local government agency) purchased by insurers as reported to the department in their NAIC annual statement filing pursuant to Section 900 or 11131.
(d) The department shall also, by December 31, 2016, 2021, provide on its Internet Web site internet website the aggregate amount of identified California investments, as reported to the NAIC in the annual statement filed pursuant to Section 900 or 11131.
(e) The department shall also by December 31, 2016, 2021, provide information on its Internet Web site internet website regarding the aggregate amount of identified California insurer investments in green investments.

(f)This article shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.

(f) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.