California Lawmakers Address Disaster Response, Automative Repair, and More

June 6, 2008

California lawmakers recently approved several insurance-related bills, addressing such topics as disaster response and automative repair following a crash. Following is a summary of recent legislation, as provided by the Association of California Insurance Companies.

Assembly Floor
AB 1848 (Ma) Income Tax Returns: Withholding. AB 1848 would require a business to impose backup withholding, at a rate of 7 percent, on any California business when payments to that business are subject to federal backup withholding. The bill passed the Assembly. The bill is awaiting assignment to a Senate committee.

AB 2825 (Carter) Automotive Repair: Crash Parts. AB 2825 would require that upon completion of auto body repairs the automotive repair dealer must provide the customer with a written certification that the crash parts identified on the written estimate were installed on the customer’s motor vehicle. The bill would also require that invoices for auto body repair work specify if any used, rebuilt, remanufactured, or reconditioned parts are supplied. The bill passed the Assembly 61-0. The bill is awaiting assignment to a Senate committee.

Senate Floor
SB 1227 (Hollingsworth) Disaster Assistance: Disaster Response. SB 1227 would delete the Jan. 1, 2009, termination date for provisions of current law establishing the Disaster Response-Emergency Operations Account in the Special Fund for Economic Uncertainties. The bill passed the Senate 40-0. The bill is awaiting assignment to an Assembly committee.

SB 1319 (Machado) Unclaimed Property: Escheat. SB 1319 would require holders of unclaimed property, which includes insurance companies, to give additional notices to property owners. The bill would condition a property holder’s relief from liability on the holder’s compliance with the requirements of the Unclaimed Property Law. SB 1319 would also increase the penalties for a property holder’s willful or non-willful failure to comply with the requirements of the Unclaimed Property Law. The bill passed the Senate 27-12. The bill is awaiting assignment to an Assembly committee.

SB 1361 (Correa) Vehicles: DUI: Ignition Interlock. SB 1361 would require that, as a condition of reinstatement of a person’s driving privilege, an individual must submit proof of installation of an ignition interlock device when that person has been convicted of DUI. The bill passed the Senate 38-1. The bill is awaiting assignment to an Assembly committee.

SB 1388 (Torlakson) Vehicles: Dui: Ignition Interlock. SB 1388 would require that a person immediately install an ignition interlock device on all owned vehicles for one to three years under specified circumstances (e.g. being convicted of driving a vehicle when his or her license has been suspended or revoked for conviction of DUI within a 10-year period). The bill passed the Senate 32-5. The bill is awaiting assignment to an Assembly committee.

SB 1608 (Corbett) Disabled Persons: Equal Access: Civil Actions. SB 1608 would require a licensed architect, as a condition of license renewal, to complete coursework regarding disability access requirements. SB 1608 would also require a specified notice to a building owner or tenant with each demand for money or complaint for a physical access violation. SB 1608 would require that building sites be inspected by certified access specialists. The bill passed the Senate 40-0. The bill is awaiting assignment to an Assembly committee.

AB 2139 (De La Torre) Auto Insurance: In-Home Supportive Services. AB 2139 would prohibit an auto liability policy from expressly or impliedly excluding coverage for use of the insured vehicle by the insured in the performance of any in-home supportive services. The bill was heard by the Senate Banking, Finance and Insurance Committee on June 4.

AB 2688 (De La Torre) Assigned Risk Plan: Motor Vehicle Operator Reports. AB 2688 would allow an insurer to obtain a report on an applicant for an automobile assigned risk plan policy from a loss underwriting exchange. The bill was scheduled to be heard the week of June 2, 2008.

For more information, visit www.acicnet.org.

Source: ACIC

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