COME TO ORDER [inaudible]
RIGHT.
THE SENATE COMMITTEE WILL START.
WILL COME TO ORDER I'LL BUT THE
LACK OF A QUORUM WE'RE GONNA
START AS A SUB COMMITTEE.
MR HERTZBERG YOU MAY COME UP
PLEASE.
THANK YOU MADAM CHAIR AND
MEMBERS.
I AM HERE TODAY WITH THE A STEAM.
INSURANCE COMMISSIONER THE STATE
OF CALIFORNIA -- I AM SO PROUD
TO BE PART OF THIS.
AS THE CALIFORNIA EARTHQUAKE
AUTHORITY OF WHICH HE IS A
LEADING MEMBER HAS.
MONSTER THIS LEGISLATION TODAY
[inaudible]
NOW.
HERE'S WHAT I'M TRYING TO DO.
IN THIS DEAL AND I THINK THAT
THE EARTHQUAKE AUTHORITIES
LEADERSHIP IN THIS IS NOTHING
LESS THAN EXTRAORDINARY BECAUSE
THEY DON'T HAVE TO BE DOING THIS
AND I GIVE. TO HEAR FROM
INSURANCE COMMISSIONER MINUTE.
HIS LEADERSHIP IN THIS REGARD
BUT HERE'S THE SITUATION.
WE HAD A HORRIBLE EARTHQUAKE
TWENTY FIVE YEARS AGO.
JUST LIKE IN THE IT THEIR
NORTHRIDGE EARTHQUAKE GOVERNMENT
RESPONDED BY CREATING THIS KIND
OF CRAZY I GOVERNMENTAL ENTITY
DETAILS OF WHICH ARE IMPORTANT
CALL THE CALIFORNIA EARTHQUAKE
AUTHORITY.
BASICALLY GOVERNMENT SAID LOOK
EVERYBODY WHO HAS A HOMEOWNER'S
POLICY IS REQUIRED. TO OFFER
THIS INSURANCE. 80% OF THE
COMPANIES DECIDED TO PARTICIPATE
CONTRIBUTING UP TO SEVEN HUNDRED
MILLION DOLLARS INTO A FUND.
ALL OF THIS CALIFORNIA
EARTHQUAKE AUTHORITY WHICH HAD A
LIMITED KIND OF A POLICY AND 20%
OF THE COMPANY'S CHOSE NOT TO
THEY CHOSE TO WRITE THEIR OWN
POLICIES OUTSIDE OF THE
EARTHQUAKE AUTHORITY.
OKAY.
AND SO WHAT'S HAPPENED HAS BEEN
IN THE LAST TWENTY FIVE YEARS
THANK GOD WE REALLY HAVEN'T HAD
THE GIGANTIC EARTHQUAKES.
I ONLY EQUATE THIS TO THE FIRES
BECAUSE WE HAVE THIS ONE IN
HUNDREDS OF YOUR EQUITY -- FIRE
AND THEN WE HAVE ANOTHER ONE AND
WE'RE SCARED WILL HAVE ANOTHER
ONE AND HENCE THIS BY THIS
GOVERNMENT IS NOW DEBATING WHAT
WE DO WHEN WE HAVE THESE
CATASTROPHES.
WHAT WE'RE TRYING TO DO AND THIS
CAME FROM THE EARTHQUAKE
AUTHORITIES LEADERSHIP AND AND I
LOVE THE IDEA IT'S A LITTLE
COMPLICATED I WANT EXPLAINS SOME
OF THE ELEMENTS?
BUT BUT THE IDEA OF FIGURING OUT
HOW WE CAN BE PREVENTATIVE.
HOW WE CAN COME UP WITH THE WAY
THAT IF THERE IS GOING TO BE
EARTHQUAKE WE CAN REDUCE THE
RISK AND THE DAMAGE IT'S BEING
COST?
OKAY WE KNOW FROM THE EVIDENCE
THAT WERE TOLD BY THE EXPERTS WE
DON'T KNOW WHAT'S REAL BECAUSE
TO PREDICT THE FUTURE BUT
THERE'S A 99% POINT NINETY EIGHT
POINT 3% CHANCE.
THAT A SIX POINT SEVEN
EARTHQUAKE THE NEXT THIRTY YEARS.
THANK THAT'S A BIG DEAL THAT'S A
BIG DEAL.
AND SO WHAT DO WE DO THE
EARTHQUAKE AUTHORITY ON ITS OWN
HAS STARTED WAS CALLED THE BRACE
AND BOLD PROGRAM FOR OF SINGLE
FAMILY RESIDENCES WE PROPOSED
ALSO INCLUDE APARTMENT BUILDINGS.
IS ONE POINT TWO MILLION SINGLE
FAMILY RESIDENCES IN CALIFORNIA
THAT CAN REALLY HAVE A
SIGNIFICANT RISK OF HAVING VERY
VERY SIGNIFICANT DAMAGE YOU LOOK
AT THIS.
POSTER BEHIND YOU'LL SEE YOU'LL
YOU'LL SEE A HOUSE THAT WAS
RETROFITTED VERSUS NOT BEING
RETROFITTED AND THE DAMAGE THAT
WAS CAUSED AS A RESULT IN JUST A
FEW THOUSAND DOLLAR BRACE IN
BOTH PROGRAMS.
THERE'S ABOUT SEVEN THOUSAND
HOMES WITH WHAT THE CALIFORNIA
EARTHQUAKE AUTHORITY DID WAS
THEY OFFERED UP TO EVERYBODY IN
CALIFORNIA. TO APPLY FOR A GRANT
OF THREE THOUSAND DOLLARS TO
BRACE AND BOLD THEIR HOME.
THEY GOT ABOUT SEVEN THOUSAND
TAKERS THE LIST IS LONG I TRIED
TO SIGN UP FOR ONE BECAUSE MY
HOUSE WAS BUILT IN NINETEEN
FORTY EIGHT AND THE THE IT WAS
CLOSE.
AND I COULDN'T GET ONE DONE.
SO NOW WHAT IS THE EARTHQUAKE
AUTHORITY DONE IN MODERNIZING
WHERE THEY WANT TO GO.
WHAT'S HAPPENED TO ME TO SHOW
THIS TO YOU BEAR WITH ME.
JUST FOR THE RECORD I WILL STATE
THAT WITHOUT OBJECTION THE
COMMITTEE WILL ALLOW THE USE OF
PROPS THANK YOU.
MR HERTZBERG IF YOU DON'T MIND
HOLDING OUT FOR GONNA CALL THE
ROLL TO ENSURE WE HAVE A QUORUM
THANK YOU [inaudible]
IBM -- WITH THEIR PRESENT JONES
[inaudible]
ARCHULETA.
YOUR LETTER PRESENT BATES.
PRESENT FOR JUST.
WHAT IS PRESENT DODD
[inaudible]
PRESENT GALGIANI.
GALGIANI PRESENT GLAZER
[inaudible]
HUESO [inaudible]
MITCHELL [inaudible]
MORE LOCK [inaudible] TWENTY NO
[inaudible]
ROTH [inaudible]
PRESENT.
OKAY -- SO WHAT HAPPENS WITH THE
EARTHQUAKE AUTHORITY.
IN THE LAST TWENTY FIVE YEARS IS
THAT BECAUSE THEY HAVEN'T.
SPENT A LOT OF MONEY ON
EARTHQUAKE REPAIRS THEY'VE
CONTINUE TO ACCUMULATE DOLLARS
INTO A FUND THE EARTHQUAKE BOND.
AND WHAT'S HAPPENED HAS BEEN IN
A NUT SHELL THE THAT ALONE
SHOULD.
IS THAT.
THE READING.
IN ORDER TO PROPERLY RATE THIS
FUND THIS TRIPLE A HAS SAID WE
NEED SIX SEVENTEEN POINT SIX
BILLION DOLLARS IN COVERAGE
WHICH IS A ONE IN FOUR HUNDRED
YEAR EVENT. TO MAKE SURE WILL
GIVE YOU THIS RATING.
SO HOW DOES THE EARTHQUAKE
AUTHORITY DO IT AND WHAT ARE WE
DOING TO CHANGE THAT.
THEY HAVE FIVE POINT EIGHT
BILLION DOLLARS IN CAPITAL.
THEY ALSO HAVE TO GO OUT AND BUY
EIGHT POINT FOUR BILLION DOLLARS
IN REINSURANCE.
AND THEY HAVE CERTAIN SURCHARGES
AND OTHER THINGS THE TOP OF THIS
TO GET TO THEIR SEVENTEEN POINT.
SIX MY FOCUS IS ON THE COST OF
THIS EIGHT POINT FOUR BILLION
DOLLARS.
THE EARTHQUAKE AUTHORITY HAS
SPENT. EIGHT BILLION DOLLARS
CORRECT. FIVE BILLION DOLLARS IN
PREMIUMS IN THE LAST TWENTY FIVE
YEARS.
AND THOSE INSURANCE COMPANIES
THAT GOT THAT FIVE BILLION
DOLLARS PAID OUT TWO HUNDRED AND
FIFTY THOUSAND DOLLARS.
OKAY SO WE'VE GOT THIS FICTION
THIS LEGAL FICTION IT'S COSTING
WHAT THREE FIFTY MILLION A YEAR.
THE MILLION DOLLARS IN INSURANCE
PREMIUMS THE QUESTION IS HOW CAN
WE COME UP WITH.
A CREATIVE WAY.
THAT WILL ALLOW US TO SPEND A
HUNDRED MILLION UP TWO HUNDRED
MILLION DOLLARS A YEAR ON THE
BRACE IN BOTH PROGRAMS
UNDERSTAND.
THE BRAZEN BULL PROGRAM APPLIES
TO WHETHER YOU'RE COVERED BY THE
EARTHQUAKE AUTHORITY OR NOT
COVERED MOST OF THE FOLKS THAT
CURRENTLY HAVE AVAIL THEMSELVES
OF BRAZEN BULL PROGRAM.
HAVE DONE IN THE AREAS THAT ARE
PART OF BOMBS THAT THAT ARE THAT
ARE.
TO POLICY HOLDERS BY THE
CALIFORNIA EARTHQUAKE AUTHORITY
WITH 80% OF THE MARKET.
OKAY SO ARE PROPOSAL HERE IN THE
SIMPLEST TERMS IS THE FOLLOWING.
BUT WE'RE SEEKING TO DO
[inaudible]
IS.
BASICALLY WITHOUT ADVERSELY
AFFECTING EDUCATION CLASS
WITHOUT ADVERSELY AFFECTING
CHILD CARE.
FOSTER CARE ANYTHING ELSE THAT
WE CHOOSE TO DO WITH GENERAL
FUND DOLLARS HOW CAN WE CREATE
THE SITUATION WHERE THE
INVESTORS ARE WHERE THE THE
RATING AGENCIES WILL STILL GIVE
US THE RATINGS THAT WE NEED.
SEC WHAT WE'RE LOOKING TO DO
WITH OF WILDFIRES.
ON THE ONE HAND WITH AND SAVING
MONEY AND WE CAN SAVE ABOUT A
HUNDRED MILLION DOLLARS A YEAR.
ALL OF WHICH WILL GO TO A BRACE
IN BOTH PROGRAM.
THE BOTTOM LINE MESSAGES THIS IS
ALL ABOUT PUBLIC SAFETY AND
GETTING AHEAD OF THE ISSUE.
PEOPLE WERE SAYING OH MY GOD
WE'RE GONNA COST US A BUNCH OF
MONEY.
WELL WHAT HAS TO HAPPEN IS IF
YOU SEE THIS.
RIGHT DOWN HERE TO GIVE YOU SOME
SENSE AT ALL ALMOST FOR THE SHOW
TERM INSURANCE COMMISSIONER.
THIS IS THE LOMA PRIETA
EARTHQUAKE SO IF WE HAD ANOTHER
LOMA PRIETA EARTHQUAKE IN
CURRENT DOLLARS.
ALL THE CAPITAL IN THE ACCOUNT
WOULD TAKE CARE OF IT.
IF WE HAD A NORTHRIDGE
EARTHQUAKE IN CURRENT DOLLARS.
B. INSURANCE AND CAPITAL WOULD
COVERAGE.
IF WE HAD A SAN FRANCISCO
EARTHQUAKE.
IN CURRENT DOLLARS IT WOULD
COVER HERE.
AND THEN A ONE IN TWO HUNDRED
FIFTY YEAR EARTHQUAKE WHICH
WOULD BE FIFTEEN BILLION DOLLARS
IN CURRENT DOLLARS IS ONLY AT
THE POINT AT WHICH THIS
CONTINGENT LIABILITY.
KICKS IN.
THAT'S IT.
THE QUESTION FOR ALL OF US AS WE
TEND AS PUBLIC POLICY MAKERS TO
TRYING TO BE HONORABLE TO THE
FOLKS THAT WE REPRESENT WHEN WE
KNOW ALL THAT WE HAVE TO
MODERNIZE HE SYSTEM WHEN YES
THERE WERE DIFFERENT STANDARDS
OF THE TIME THIS WAS GREAT
TWENTY FIVE YEARS AGO.
WHEN YOU HEAR THOSE OLD
ARGUMENTS BUT THE WORLD HAS
CHANGED AND INTEREST WHICH IS
GOING TO TALK TO YOU ABOUT THAT?
CAN WE REDUCE BY A HUNDRED
MILLION DOLLARS THE AMOUNT OF
MONEY WE'RE SPENDING.
ON REINSURANCE AND PUT THAT.
INTO BRACING BOLD -- PLACES
PRIORITIZE WHERE THERE'S A HIGH
PROPENSITY FOR EARTHQUAKE SMART
POLICY.
THE COST OF THAT.
IS THIS VERY MINUSCULE.
CONTINGENT LIABILITY ON
INSURANCE POLICIES.
UP HERE AT THE TOP AND YOU HAVE
TO GET TO A ONE IN TWO HUNDRED
FIFTY YEAR EVENT BEFORE THAT
KICKS IN.
ALL THESE OTHERS CREEKS ALREADY
PAID FOR BY THIS EARLIER DEAL.
IS IT IS IT THE BOTTOM LINE IS.
IS THE PERFECT [inaudible]
NO.
IF ANYTHING WE DO IN GOVERNMENT
PERFECT BUT WE'RE IN A SITUATION
WHERE WE KNOW WE'RE GOING TO
FACE AN EARTHQUAKE.
AND WE HAVE TO BE SMART ABOUT IT.
I WAS VERY IMPRESSED WHEN THEY
CAN WE SPENT SIX MONTHS GOING
THROUGH THE STUFF DURING THE
BREAK AND I'M GIVING HIM A HARD
TIME KICKING THE TIRES.
THERE'S AN ISSUE AS TO WHETHER
THESE ATTACKS.
I KNOW THAT THE ANALYSIS THAT
WAS WRITTEN AND NOW BEING
WRITTEN FOR MY UNDERSTAND WE'VE
BEEN CONCEPTS ALSO STATION WITH
THE ALLEGE COUNSEL'S OFFICE TO
TRY TO GET THEM TO RE WRITE
THEIR THINKING.
MY ARGUMENT IS A TAXES YOU YOU
GET YOUR YOUR OBLIGATION TO PAY
SOMETHING AND IT GOES TO PAY FOR
CERTAIN GOVERNMENT SERVICES THIS
IS A CONTINGENT OBLIGATION.
THAT OCCURS AFTER EXTRAORDINARY
CIRCUMSTANCES AND THE QUESTION
IS FROM A PUBLIC POLICY
PERSPECTIVE IS IT THE RIGHT
THING TO DO.
WANTS TO ENGAGE IN A DISCUSSION
OF WHETHER TO TAX I KNOW THAT
WORDS A BAD WORD.
I ALSO DO NOT WANT TO PUT ON ANY
MEMBER OF EITHER PARTY IN THIS
HOUSE.
THE OBLIGATION TO VOTE FOR TAX
BECAUSE I THINK THAT THE THE
ANALYSIS THAT WAS DONE THIS IS
OF CASE OF FIRST IMPRESSION.
MY IDEA IS POTENTIALLY IT THIS
GETS OUT OF THIS COMMITTEE TODAY
TO PUT A PROVISION IN.
THAT BASICALLY SAYS THIS WILL GO
INTO EFFECT UNTIL THERE'S A
JUDICIAL DETERMINATION THAT THIS
IS NOT A TAX BECAUSE I DON'T
WANT TO PUT ANYBODY IN A
POSITION THAT THIS IS A TAX.
BUT THE IDEA IS AND WHAT PEOPLE
ARE SAYING OH MY GOD OF THESE
POLICIES ARE GONNA BE UPSIDE
DOWN YEAH WHAT'S THE WORLD IN
LOOK LIKE.
AFTER A LARGER THAN IF YOU ADD
UP LOMA PRIETA AND SAN FRANCISCO
WE GOT SOMETHING BIGGER THAN
THAT.
WHAT'S THE IMPACT TO EVERYBODY
IN CALIFORNIA DIRECTLY OR
INDIRECTLY NOT JUST THE HOMES
THAT ARE THAT THAT ARE THAT ARE
UPSIDE DOWN BECAUSE THEY'VE BEEN
DESTROYED.
AND WE CAN HELP PREVENT THAT
WHAT WHAT ABOUT WHAT ABOUT THE
CONSEQUENCES TO COMMUNITY.
ALL THE OTHER ELEMENTS OF
COMMUNITY AND AND BUSINESS AND
THE LIKE ALL OF THIS IS
IMPORTANT I'M JUST SEEING HERE
AND SAY AND THIS IS A VERY
CREATIVE WAY WITHOUT TAKING CASH
OUT OF THE BUDGET. TO BE ABLE TO
TO I WANTED TO SECURE TIES THIS
ABOUT A BILLION DOLLARS OUT IN
THE STREET IMMEDIATELY.
THERE'S A QUESTION ABOUT THAT
BUT A HUNDRED MILLION DOLLARS A
YEAR AND BRACING BOLD ANYBODY IN
NEEDS IT PRIORITIZE AREAS WITH
HIS ROUTE WITH US ISSUES
INVOLVING.
OUR HIGHEST LEVEL OF RISK THIS
IS CREATIVITY IT'S BEST.
IT'S A WAY TO USE FINANCING AT A
DIFFERENT LEVEL.
I'M TELLING YOU AS AS SO I AM
NOT LOOKING TO PUT ANYBODY IN
HARM'S WAY WITH RESPECT TO THIS
TAX ISSUE I THINK THAT IT WASN'T
ANALYZED IN A PROPER WAY.
I'M GONNA PUT EVERY BELL AND
WHISTLE ON THERE TO MAKE SURE
THAT DOESN'T HAPPEN I THINK
YOU'RE GONNA HEAR LEE HAD VERY
PRODUCTIVE CONVERSATIONS WITH
THE INSURANCE INDUSTRY BECAUSE
THEY RAISE A VERY IMPORTANT
ISSUES.
THAT WE AGREE TO NOBODY'S TRYING
TO DO ANYTHING OTHER THAN FIGURE
OUT A WAY.
TO NOT.
ONLY PEOPLE OUT OF MIGHT BE
UPSET THE PEOPLE THAT A HUNDRED
TWENTY INSURANCE CARRIERS FOR
DIVIDE REINSURANCE BECAUSE WE'RE
NOT GIVEN SO MUCH MONEY INTO
THAT I'M SAYING I'M SORRY LADIES
AND GENTLEMAN.
AND ALSO THOSE ARTICLES THAT
SHOW THEY GOT PLENTY REINSURANCE
MARKET YES WHAT WE'RE GONNA TAKE
THE SAVINGS ON THE PREMIUM AND
WE'RE GONNA GET TE FOLKS IN THE
FORM OF THREE THOUSAND DOLLAR
BRANDS. TO BE ABLE TO BRACE AND
BOLD YOUR HOMES AND WITH THAT.
I'D LIKE TO TURN THIS OVER TO
THE INSURANCE COMMISSIONER FOR
HIS OF THOUGHTFUL REMARKS.
WELCOME NINE THIRTY HERE THANK
YOU GOOD TO SEE YOU MADAM CHAIR
AND MEMBERS -- AGAIN WHAT YOU'RE
GONNA SEE -- COMING THIS YEAR IN
TERMS OF THE THE WORK THAT WE'RE
DOING TRYING TO JOIN THE
DEPARTMENT OF INSURANCE AS HOW
WE BEING CREATIVE WHEN IT COMES
TO USING.
CURRENT MARKET MARKET MECHANISMS
TO ADDRESS SOME OF THE MAJOR
ISSUES THAT WE ARE GOING TO
EVENTUALLY FACE -- THAT ARE
HAVING TO DEAL WITH KEPT
CATASTROPHES AND JUST TO REMIND.
OUR COMMITTEE HERE IS THE REASON
WE FIND OURSELVES IN THE
SITUATION WAS BECAUSE AFTER THE
NORTHRIDGE EARTHQUAKE WE THEN
MOVED TO HEAVILY REGULATE.
THE INSURANCE INDUSTRY WHEN I
CAME TO THE PRODUCTS THEY WERE
SELLING WHEN THEY CAME TO
EARTHQUAKE INSURANCE AND WHAT WE
HAVE NOW IS.
A MARKET THAT HAS LARGELY
ABANDONED CALIFORNIA BECAUSE THE
FACT THAT IT WAS JUST NOT VIABLE
TO DO THIS TYPE OF PRODUCT IN
CALIFORNIA.
IT LEADS US.
TO BE CREATIVE AND HOW WE NOW
APPROACH THE SITUATION WHICH IS
DIRE WHEN IT COMES TO WHAT IS
GOING TO HAPPEN THE NEXT TIME WE
HAVE A MASSIVE EARTHQUAKE.
PRETTY MUCH AS WHICH THAT NOW
PEOPLE GONNA BE LEFT TO THEIR
OWN DEVICES.
NOT ENOUGH PEOPLE HAVE THE
PRODUCTS TO BE ABLE TO PROTECT
THEM FULLY BE PROTECTED WHEN IT
COMES.
TO PROTECTING YOUR HOME AFTER AN
EARTHQUAKE AND THAT'S JUST THE
REALITY SO THIS IS ONE ATTEMPT
TO TRY TO GET US TO MODERNIZE AN
EXISTING PROGRAM.
THAT WE FEEL IS IMPORTANT AND
AGAIN AS SENATOR HERTZBERG
MENTIONED WE WANT TO MAKE SURE
WE USE DATA -- AND SCIENCE TO
BACK UP WITH A HOMES THAT WOULD
BE PRIORITIZE IN THIS OF THE
NEED A CERTAIN TIME OF WHEN THEY
WERE BUILT.
IF THEY'RE CLOSER TO OF
EARTHQUAKE FAULT -- THOSE ARE
THOSE ARE THE THINGS THAT WE
SHOULD BE LOOKING AT IMMEDIATELY
BECAUSE WE KNOW THOSE ARE THE
FOLKS THAT ARE MORE AT RISK.
AND AS WE TRY TO FIGURE OUT HOW
TO WE IN BE CREATIVE AND EMBRACE
IS DUE TO THESE NEW PROGRAMS WE
ALSO UNDERSTAND.
THAT WE HAVE TO LOOK AT WHAT WE
HAVE NOW TO BE ABLE TO MODERNIZE
TO BE ABLE TO BE MORE CREATIVE
WHAT THE RESOURCES WE CURRENTLY
HAVE.
AND HOPEFULLY A TO ROCK MORE
FOLKS TO COME IN AND PROVIDE
THESE INNOVATIVE SERVICES FOR
CALIFORNIANS BECAUSE WE KNOW
WE'RE GOING TO EVENTUALLY NEEDED --
AND THE ARGUMENTS WHETHER THIS
IS TAX OR NOT.
THESE ARE CONVERSATIONS WE WANT
TO CONTINUE HAVING I'VE
COMMITTED TO SENATOR HERTZBERG
INTO YOU MADAM CHAIR THAT WE
WANT TO CONTINUE TO USE.
THAT KNOWLEDGE OF OUR DEPARTMENT
TO BE ABLE TO HAVE THOSE
DISCUSSIONS IF THE BILL SHOULD
MOVE FORWARD IN THE FISCAL
COMMITTEE.
SO THAT WE ARE CONTINUE HAVE
THESE DIALOGUES WITH THE
OPPOSITION WE UNDERSTAND THAT
THERE IS SOME LEGITIMATE
OPPOSITION FROM OF THE INSURANCE
INDUSTRY WANT.
TO BE ABLE TO WORK COLLABORATIVE
WITH THEM TO ADDRESS AS MANY AS
WE CAN BUT THE FACT IS THAT YOU
KNOW WE NEED TO DO SOMETHING.
WE NEED SOMETHING CREATIVELY AND
I THINK WHAT -- SEE A HAS
BROUGHT TO THE TABLE AND WORKING
WITH OUR DEPARTMENT -- IS
SOMETHING HAT WE SHOULD MERIT
FURTHER DISCUSSION AND DIALOGUE
AS YOU CAN TO TRY TO HELP FIGURE
OUT HOW WE'RE GOING TO MEET THIS
TREMENDOUS DEMAND IN NEED --
WHEN THE NEXT EARTHQUAKE HITS
CALIFORNIA?
THANK YOU YOU MAY RECEIVE.
COMMITTEE MEMBERS OF GLEN PALMER
THE CEO OF THE CALIFORNIA
EARTHQUAKE AUTHORITY IS AN HONOR
TO BE HERE BEFORE YOU AND
APPEARING WITH.
HER SPRING COMMISSIONER LARA.
THE NORTHRIDGE EARTHQUAKE
BROUGHT THE CALIFORNIA
HOMEOWNERS INSURANCE MARKET TO A
STANDSTILL.
THE CALIFORNIA COULD BUY OR SELL
A HOME BECAUSE THEY COULDN'T GET
HOMEOWNERS COVERAGE.
THE LEGISLATURE FORM THE NOT FOR
PROFIT CA TO RESOLVE THIS CRISIS.
OUR GOVERNING BOARD THE GOVERNOR
INSURANCE COMMISSIONER AND
TREASURE OVERSEE OUR PUBLIC
MISSION.
MAKE EARTHQUAKE INSURANCE AS
AFFORDABLE AND AVAILABLE AS
POSSIBLE.
AND HELP HOMEOWNERS PREPARE THE
MITIGATION.
NOW WITH LOWER RATES AND MORE
FLEXIBLE POLICIES WE SURE MORE
THAN A MILLION HOMES.
AND OUR EARTHQUAKE BRACE SYMBOL
PROGRAM PROVIDES THREE THOUSAND
DOLLARS TO ABOUT TWO THOUSAND
CALIFORNIANS EACH YEAR TO HELP
THEM RETROFIT THEIR HOME.
THESE RETROFITS BY THE WAY COST
ABOUT THIRTY FIVE HUNDRED
DOLLARS IN SOUTHERN CALIFORNIA
AND ON AVERAGE ABOUT FIFTY FIVE
HUNDRED IN THE NORTH.
ALL CALIFORNIANS ALL
CALIFORNIANS WITH A QUALIFYING
HOMES ARE ELIGIBLE FOR A GRANTS
NOT JUST SEE POLICY HOLDERS OF
THE SEVENTY EIGHT HUNDRED BETTER
FITS THAT WE HAVE FUNDED SO FAR.
ALMOST SIX THOUSAND WERE FOR
HOMES THAT ARE NOT INSURED WITH
CA.
BUT THERE ARE OVER ONE MILLION
HOMES THAT NEED THIS BASIC
RETROFIT AND MILLIONS OF OTHER
TYPES OF RESIDENTIAL HOMES -- IT
WE HAVE NOT YET BEEN ABLE TO
ADDRESS DUE TO LIMITED FUNDING.
SENATOR HERTZBERG BILL WOULD
EXPONENTIALLY INCREASE THE
NUMBER RICH OFFENSE CA COULD
FIND EVERY YEAR.
HOW?
BY LETTING US REDUCE HOW MUCH WE
SPEND ON REINSURANCE.
SO THAT THAT MONEY COULD BE
SPENT INSTEAD ON RETROFITTING
HOMES.
SAYS WE WERE FOR WE HAVE SPENT
ABOUT FIVE BILLION DOLLARS ON
REINSURANCE WHILE RECEIVING BACK.
TOTAL TO A FIFTY THOUSAND
DOLLARS IN CLAIMS PAID.
WITH THIS BILL WE WOULD SAY
BETWEEN SEVENTEEN HUNDRED
MILLION DOLLARS EACH YEAR AND
THAT AMOUNT WOULD BE DIRECTED
DIRECTLY. TO RETROFITTING HOMES
IN HIGH SEISMIC AREAS.
AT THE SAFETY NET FOR THE CA
WOULD BE SET UP.
IF WE HAVE A MASSIVE HISTORIC
EARTHQUAKE ONE TWICE AS DAMAGING
AS NORTHRIDGE FOR EXAMPLE THE
SEABOARD COULD AUTHORIZE A SMALL
ASSESSMENT.
ABOUT 1% ON CERTAIN TYPES OF
INSURANCE POLICIES IN HIGH
SEISMIC AREAS THE PROBABILITY.
OF A 1% ASSESSMENT IS EXTREMELY
SMALL. ONE THIRD OF 1%.
IT WOULD TAKE A HISTORIC MEGA
EARTHQUAKE TO TRIGGER THE
MAXIMUM 5% ASSESSMENT AND THE
PROBABILITY OF THAT IS ALMOST
ZERO LITERALLY.
LESS THAN ONE FIFTH OF 1%.
ANY ASSESSMENT HOWEVER UNLIKELY
WOULD ONLY A TEST POLICIES IN
HIGH SEISMIC AREAS.
HAVE THE COUNTIES IN A IN THIS
EARTHQUAKE PRONE STATE.
AND THOSE HIGH SEISMIC AREAS ARE
EXACTLY WHERE SAVINGS AND
REINSURANCE WILL BE INVESTED. TO
THE BILL COMMUNITIES ARE MORE
RESILIENT TO A CATASTROPHIC
EARTHQUAKE.
SO.
WHAT DO YOU CALL A POTENTIAL
ASSESSMENT THAT IS ALMOST
CERTAINLY NEVER GOING TO HAPPEN?
A NINETY NINE POINT 7%
PROBABILITY THAT NO ONE WILL
EVER PAY EVEN A 1% ASSESSMENT.
IS THAT A TAX.
SOME SAY IT IS.
BUT IF YOU CONSIDER THAT JUST
THE EXISTENCE OF THAT POTENTIAL
ASSESSMENT WILL IMMEDIATELY FREE
UP BETWEEN SEVENTY AND ONE
HUNDRED MILLION DOLLARS EACH
YEAR.
SO WE CAN MAKE OUR HOMES AND OUR
COMMUNITIES BETTER PREPARED FOR
THE EARTHQUAKES THAT SITE TO SAY
ARE FAR MORE LIKELY TO HAPPEN.
WOULD YOU CALL THAT.
I CALL IT AN AMAZING OPPORTUNITY.
WITH YOUR HELP WE CAN LAUNCH THE
MOST AGGRESSIVE RESIDENTIAL
SEISMIC RETROFIT PROGRAM IN THE
WORLD.
AND WHEN THE NEXT DAMAGING
EARTHQUAKE HITS ONE BIG ENOUGH
TO PRODUCE SERIOUS DAMAGE.
BUT ONE AT THE END ONE FAR MORE
LIKELY THAN HE MEGA QUAKE HE
WOULD TAKE TO TRIGGER AN
ASSESSMENT.
YOU MEMBERS OF THE COMMITTEE
WILL HAVE THE SATISFACTION OF
KNOWING THAT YOU HELPED TENS OF
THOUSANDS OF CALIFORNIANS.
BE BETTER PREPARED TO SURVIVE
AND RECOVER FROM THAT EARTHQUAKE.
THANK YOU VERY MUCH.
YEAH.
SO IS THERE ANYBODY ELSE THAT
WISHES TO SPEAK IN SUPPORT
PLEASE.
STATE YOUR NAME.
THANK YOU MADAM CHAIR DUNGEONS
COME BEHALF OF THIS --
STRUCTURAL ENGINEERS ASSOCIATION
OF CALIFORNIANS SUPPORT.
YOU HAVE TO ENSURE COMMITTEE
MEMBERS BLAKE JOHNSON HIM HAVE
STATES HAS A FEW ON A Mà
RECKLESS IT'S ON THE CA BOARD
HERE IN SHOCK SUPPORT.
GOOD AFTERNOON SEVEN TAYLOR FOR
THE PERSONAL INSURANCE
FEDERATION IN SUPPORT.
WE THINK THIS BILL WILL
STRENGTHEN THE CA IS CAPITAL
STRUCTURE MAKING A MORE
RESILIENT.
AND ALLOWING PARTICIPATING
INSURERS TO OFFER MORE RELIABLE
EARTHQUAKE INSURANCE THANK YOU
[inaudible]
YOU.
THANK YOU MADAM CHAIR MEMBERS
THE COMMITTEE GERMANS MET HERE
ON BEHALF OF THE STATE BUILDING
AND CONSTRUCTION TRADES COUNCIL
ALSO SUPPORT.
MORNING ARE GOOD AFTERNOON CARE
ACROSS ON BEHALF A. I. R.
WORLDWIDE.
PLEASE SUPPORT BECAUSE OF THE
INVESTMENT IN MEDICATION THANK
YOU.
MADAM CHAIR MEMBERS MADISON BY
ON BEHALF OF THE AMERICAN RED
CROSS IN SUPPORT.
THE TOURIST TOUR WITH FARMERS
INSURANCE IN SUPPORT THANK YOU.
THANK YOU IS THERE ANYONE IS AS
AN OPPOSITION THAT WISHED TO
SPEAK PLEASE COME UP AT THIS
TIME THANK YOU.
WELCOME.
THANK YOU.
GOOD AFTERNOON MADAM CHAIRWOMAN
MEMBERS SHERRY MCCUE
REPRESENTING THE PACIFIC
ASSOCIATION DOMESTIC INSURANCE
COMPANIES UNFORTUNATELY WE ARE
HERE TODAY IN OPPOSITION SB TWO
FIFTY FOUR UNLESS IT IS AMENDED
TO REMOVE THE NON PARTICIPATING
IN SURE -- ASSESSMENT.
IT IS IMPORTANT TO NOTE THAT
PATRICK IS NOT OPPOSED TO
ENHANCING THE BRACE BOLT PROGRAM
WE ARE STRONGLY IN SUPPORT OF
DOING SO.
I WITH THAT BEING SAID WE HAD
CONVERSATIONS I'VE LAST NIGHT
WITH THE AUTHOR AND WITH THE SEE
A REPRESENTATIVES.
ABOUT OUR CONCERNS -- WE AGREED
TO CONTINUE TO DISCUSS
INNOVATIVE WAYS TO MODERNIZE THE
CIA'S FINANCIAL STRUCTURE -- SO
THAT THE PROGRAM COULD BE
EXPANDED.
WHAT IS OF CONCERN WITH SB TWO
FIFTY FOUR AS IN PRINT IS AT THE
CA WANTS TO EXPAND THE BRACE
SYMBOL PROGRAM BY ALTERING THE
VERY FOUNDATION UPON WHICH TO
SEE A WAS CREATED?
BY AUTHORIZING THE C. H. TO
IMPOSE AN ASSESSMENT ON POLICY
HOLDERS OF NON PARTICIPATING
INSURERS.
A CRITICAL PRINCIPLE WHEN THE CA
WAS CREATED WAS AT NINE P. EYES
PARTICIPATING INSURERS.
WOULD HAVE NO FINANCIAL
OBLIGATION TO SUPPORT TO SEE EA.
AND IN ORDER TO PROTECT THE
PRODUCT THE PARTICIPATING
INSURERS AND THEY'RE VERY
SIGNIFICANT FINANCIAL --
COMMITMENT TO THE C. E. A. NON
OF PARTICIPATING INSURERS WOULD
HAVE NO ACCESS TO THE CALIFORNIA
EARTHQUAKE AUTHORITY.
EVER.
THESE VERY TWO DISTINCT SILOS
WERE BY DESIGN AND AGREED TO BY
THE ENTIRE INDUSTRY WHEN TO SEE
A WAS CREATED.
THE AUTHOR AND SPONSOR HAVE
ASKED NOT PARTICIPATE INSURERS
TO THINK OUTSIDE THE SEE A BOX.
AND OUTSIDE OF OUR COMFORT ZONE
IN ORDER TO MODERNIZE THE C.
A.'S FINANCIAL STRUCTURE.
WELL THIS IDEA MAKES MANY PEOPLE
VERY NERVOUS AND VERY
UNCOMFORTABLE.
WE ARE WILLING TO HAVE THOSE
CONVERSATIONS TO SEE IF THERE'S
A WAY. TO EXPAND RESEMBLED.
THAT IS ACCEPTABLE TO BOTH
PARTICIPATE INSURERS AND NON
PARTICIPATING INSURERS.
IN THE MEANTIME AS LONG AS IT IS
ALL ON THE NON PARTICIPATING
INSURERS WE WILL REMAIN STRONGLY
OPPOSE THE BILL THANK YOU.
MADAM CHAIR MEMBERS JOHN NOR
INDEPENDENT INSURANCE AGENTS AND
BROKERS OF CALIFORNIA.
CALIFORNIA TERMS WHOLESALERS
ASSOCIATION ZENITH INSURANCE
COMPANY AND FIRST AMERICAN
CORPORATION.
OUR CLIENTS RIGHT A SUBSTANTIAL
AMOUNT OF PERSONAL LINES
INSURANCE IN THE STATE.
BUT THE GREAT MAJORITY OF
COMMERCIAL INSURANCE ON SMALL
AND LARGE BUSINESSES IN YOUR
DISTRICT TRANSPORTATION
MANUFACTURING CONSTRUCTION
EXCEPT FOR ALMOST ANYTHING THAT
MOVES ARE FLIES -- THIS BILL
PROPOSES CAN MAKE SOME
UNPRECEDENTED CHANGES TO THE
INSURANCE CODE -- THEY COULD
ADVERSELY AFFECT OUR MEMBERS
THEY INCLUDE CROSS SUBSIDIZATION.
MULTIPLE SUSPECTS ASSESSMENTS ON
LINES OF INSURANCE AND NEVER
PREVIOUSLY BEEN ASSESSED.
CHANGES DANGER SOME OF OF THE
FUTURE OF OUR MEMBERSHIP AND IS
SHERRY JUST INDICATED A
BREAKDOWN BETWEEN THE SILOS OF
DISOBEYING INSURERS AND NON
PARTICIPATING INSURERS.
OR JUST NOT TALKING ABOUT HERE.
ASSESSING OTHER HOMEOWNERS THAT
ARE NON PARTICIPATING THEY ARE
THE POLICY HOLDERS OF NON
PARTICIPATING INSURERS WE'RE
TALKING ABOUT ASSESSING AN
ENTIRE -- COMMERCIAL IN PERSONAL
LINES BUSINESS IN THE STATE.
BILLIONS OF DOLLARS OF INSURANCE --
YOU THE DETAILS OF GOING THROUGH.
EACH OF THESE CONCERNS BECAUSE
MOST OF MORE COVERED IN YOUR
EXCELLENT.
COMMITTEE ANALYSIS IN OUR LETTER
OF OPPOSITION WE SHARED A NUMBER
OF THEM WITH YOU FROM A PERSONAL
STANDPOINT -- HEAD OUT IN
TALKING TO YOU OR YOUR OR YOUR
STAFF PUT SIMPLY SAID -- OUR OUR
MEMBERS JUST CANNOT BY THE
CONCEPT THAT THEY SHOULD ACCEPT --
UNPRECEDENTED CHANGES THAT HAD
TO ADVERSELY AFFECT THEM.
ON THE THEORY THAT THIS IS NEVER
GOING TO HAPPEN.
YOU KEEP HEARING THAT THIS IS
NEVER GOING TO HAPPEN.
THE GOVERNOR -- IN HIS PRESS
CONFERENCE JUST WEAKER SO TEN
DAYS AGO OR SOMETHING I REMEMBER
A GRAPH THAT HE HAD UP ON THE
BOARD SHOWING THAT.
THE FIREFIGHTING COSTS AND TO
pFOURTEEN TO FIFTEEN I THINK WAS
ABOUT THAT BIG GOES A FEW
HUNDRED MILLION DOLLARS. TO
SEVENTEEN TO EIGHTEEN WAS TWENTY
FIVE BILLION DOLLARS WE REALLY
DIDN'T THINK THAT WAS GOING TO
HAPPEN.
I MEAN THE P. YOU SEE EVERY --
SERVICE ORGANIZATION THE
INSURANCE INDUSTRY USES ALL HAD
FIRE MAPS WRONG ED EVERYTHING
WRONG SO ARE WE GOING TO PAN ON
THE FACT THAT.
NOBODY ELSE IS GOING TO BE
ASSESSED BECAUSE OF YOU KNOW
WHAT AN ACTUAL ACTUAL REASONS.
THAT'S THE THE PROBLEM FROM OUR
STANDPOINT WITH WITH THIS -- AS
SHERRI INDICATED WE HAD A
MEETING LAST NIGHT WITH THE
AUTHOR AND THE THE SPONSORS OF
THE BILL I WOULD TERM IT IS A
BLUE.
SKIES SESSION -- WE THROW A LOT
OF THINGS OUT THERE -- WERE
WILLING TO THE OTHER OPTIONS
OTHER THINGS ARE A MORE DIRECT
WAY TO DO THIS WITHOUT KIND OF A
HIDDEN ASSESSMENT -- AND WE'RE
GOING TO TALK ABOUT THOSE IF THE
BILL MOVES OUT OF THIS COMMITTEE
BUT WE HAVE.
I JUST I CAN'T UNDER ESTIMATE
THE CONCERNS THAT OUR CLIENTS
HAVE.
AND IT'S OUR CLIENTS ARE THE
FACE OF THIS INDUSTRY -- WHEN
THEY'RE CHARGING SOMEBODY ARE
COLLECTING?
TENS OF THOUSANDS OF DOLLARS AND
MORE PREMIUM FROM THEIR
CUSTOMERS THEY'RE THE ONES
THERE'S GOING TO TAKE THE GRIEF
WHEN THEY GO BACK TO COLLECT.
AN ASSESSMENT AT SOME POINT AND
THAT'S WHAT THEY'RE WORRIED
ABOUT THEY'RE ALSO WORRIED ABOUT
CHANGES OR WE'RE GONNA MAKE IN
THE COLOR THAT OTHER PEOPLE
FUTURE LEGISLATORS WILL CALL
WILL GRAB ON TO AND SAY WELL WE
DO THIS TODAY.
EVEN THOUGH IT'S NEVER GOING TO
HAPPEN SO LET'S DO THIS LET'S DO
A LITTLE BIT MORE LIST TO A
LITTLE BIT MORE.
SO THOSE ARE CONCERNS THERE'S
ONE LAST POINT IS I THINK IN OUR
LETTER THOUGH HE SAID THIS THIS
LEGISLATION SAYS.
THERE CAN ASSESS EVERYTHING
UNDER.
INSURANCE CODE.
ONE HUNDRED I'M EXCEPT THE ONES
THAT ARE EXCLUDED NOW THERE'S NO
EXCLUSIONS ARE THE SHOULDN'T BE
EXCLUDED -- AUTO INSURANCE FOR
INSTANCE IF YOU'RE GOING TO DO
ASSESSMENTS.
ALL THE PERSONAL ONES ASSESSMENT
SHOULD BE DONE FIRST BECAUSE
THIS IS A PERSONAL LINES
INSURANCE BENEFITS PERSONAL
LINES PEOPLE I MEAN IF YOU DON'T
GRAYSON BOLTHOUSE FALL DOWN ON
IF YOU'RE GOING TO ASSESS YOU
KNOW INSURANCE.
ON ACCOUNTANTS AND LAWYERS AND
THINGS LIKE THAT YOU DON'T NOT A
SAYS THAT ON ON DOCTORS BECAUSE
MEDICAL MALPRACTICE IS SOMETHING
THAT IS A SACRED AROUND HERE WE
UNDERSTAND THAT.
THE CHANGES HERE ARE NO
DIFFERENT THAN CHANGING THE
MEDIC MEDICAL MALPRACTICE CAP --
AT WHEN YOU TALK ABOUT THE THE
ISSUES BETWEEN INSURERS AND WHO
SHOULD -- SUBSIDIZE WHO AND WHO
HAS CAPACITY READING THESE
CHANGES BENEFIT THE
PARTICIPATING IN TERMS THAT'S
WHY THE RECORD SUPPORTING THE
BILL.
SO WITH THAT I'M HAPPY TO ANSWER
ANY QUESTIONS.
WITH IN THOSE DIFFERENT THIRTEEN
LINES OF INSURANCE THAT ARE
GOING TO BE ASSESSED THEY'RE
JUST TITLES WITHIN THOSE THERE
ARE.
OTHER OTHER INSURANCES AND OTHER
KINDS OF INSURANCES ARE GOING TO
BE ASSESSED -- HAPPY TO PASS
AROUND BUT MARINE INSURANCE FOR
INSTANCE THERE'S A PART OF
MARINEINSURANCE THAT'S CALLED
INLAND MARINE THAT'S FOR THE
INDUSTRY.
PUTS EVERYTHING THAT THEY DON'T
KNOW WHERE ELSE TO PUT.
IN THE THAT COVERS CYBERSECURITY
IT COVERS ALL KINDS OF
CONSTRUCTION RISK ALL KINDS OF
TRANSFER STATION RULES
TECHNOLOGY -- AND ENERGY ROSE --
MARITIME RISK ALL KINDS OF
MARITIME RISKS THERE'S TWO POINT
EIGHT BILLION DOLLARS WORTH OF
PREMIUM JUSTIN INLAND MARINE.
COVERAGE WHICH IS A SUBSET OF
MARINE IN THIS LIST OF THINGS
ARE GOING TO BE A SOUTH STE.
SO.
I'M CERTAINLY WILLING TO
CONTINUE TO TALK ABOUT THIS WE
THINK THERE'S SOME OTHER OPTIONS
ARE MORE DIRECT.
AND WITHOUT ALL AND THANK YOU
VERY MUCH THANK YOU.
GOOD AFTERNOON MARC SEVEN WITH
AMERICAN PROPERTY CASUALTY
INSURANCE ASSOCIATION WAS SO SEE
WHAT MY COMMENTS BY --
COLLEAGUES AS A STATE OF THIS IS
A FUNDAMENTAL CHANGES AMENDMENTS
WERE RECENTLY DROPPED ON THE
TWELFTH.
THIS FUNDAMENTALLY CHANGES THE
PROGRAM IT FUNDAMENTALLY
INVOLVES THAT NON P. EYES TO
BENEFIT THE PUT THE
PARTICIPATING INSURERS.
AND GREETS ADDITIONAL
COMPETITIVE ISSUES FOR THE
PEOPLE WHO DON'T HAVE THE
BENEFITS OF A STATE RUN
ORGANIZATION SUCH AS THE CA.
THE THE OTHER THING WE NEED TO
POINT OUT IS UNFORTUNATELY
EARTHQUAKES ARE NOT CALIFORNIA'S
ONLY CATASTROPHE.
OUR OVER ALL VERY FAMILIAR ABOUT
THE WILD FIRE RISK WE'RE ALL
VERY FAMILIAR ABOUT THE
GOVERNOR'S ALL WITHIN THE NEXT
NINETY DAYS TO COME UP WITH A
PLAN TO BOTH BETTER MANAGE OUR
FOR SENT TO FIGHT WILDFIRES.
WITHIN THAT PLAN IS A RETROFIT
PROGRAM WE ALSO KNOW THAT THE
GOVERNOR'S HOUSE ALL EVERYBODY
TO CONTRIBUTE TO THIS AND THIS
INCLUDES INSURANCE INDUSTRY.
AND SO WILL A LOT WANT TO DO IS
PROVIDE ENOUGH TIME FOR THIS
BILL SO WE FULLY UNDERSTAND IT.
AND ALSO THAT WE CAN INTEGRATE
IT WITH WHATEVER THE LEGISLATURE
THE GOVERNOR COME OUT DEAL WITH
WILDFIRES TEACHER WITH THEM IN
AN ANGRY INTEGRATED PLAN IN THE
INSURANCE INDUSTRY IS NOT.
OVERLY BURDENED BY TWO SEPARATE
PROGRAMS IN TWO SEPARATE SS MEN
SCHEMES THANK YOU.
ANYBODY ELSE WISHING TO SPEAK IN
OPPOSITION PLEASE COME UP TO THE
MIKE THANK YOU MADAM CHAIR
MEMBERS PAUL THAT FILLED THE ON
BEHALF OF TRAVELERS INSURANCE
AND ALSO THE CALIFORNIA TREATY
FEDERATION.
REAL LATE TO THE GAME WE LOOK
FORWARD TO WORKING WITH THE
CENTER HERTZBERG ON THIS
IMPORTANT ISSUE AND JUST WANTED.
TO EXPRESS OUR CONCERN.
GOOD AFTERNOON MADAM CHAIR XING
LEVINE ON BEHALF OF THE
REINSURANCE ASSOCIATION AMERICAN
OPPOSITION.
THANK YOU.
NOW I WILL OPEN IT UP TO THE
MEMBERS FOR QUESTIONS I BELIEVE
MISTER SENATOR BORDERS YOU HAD A
QUESTION.
AND THEN WE'LL GO TO ASK
GALGIANI.
MR.
LATER AND THEN MISTER ARCH LET.
THIS IS COMPLICATED.
REALLY ARE HI I TOOK A LOOK AT
THIS AND I I PRIDE MYSELF ON MY
ABILITY TO LEAST PICK UP ON
THINGS FAIRLY QUICKLY AND AND
AND I I JUST HAVEN'T QUITE YET
SO.
I'M TRYING TO FIGURE OUT.
THE COMMENT THAT YOU MADE THAT
IT IS ESSENTIALLY TO FUND.
THE COST OF A VERY EXPENSIVE
REINSURANCE.
PROGRAM DID I REMEMBER THAT
CORRECTLY.
WE BASICALLY WAS A SICKLY
REDUCING THE AMOUNT OF MONEY WE
PAY EVERY YEAR BY BETWEEN
SEVENTY AND A HUNDRED MILLION
DOLLARS AND TAKING THE CASH FROM
THE SAVINGS BACK LOSING THAT TO
BRACE AND BOLTS.
AT IT IN TERMS OF WHERE THE
MONEY'S COMING FROM INSTEAD OF
TAX DOLLARS OR ASSESSMENTS ON ON
RISK DON'T FORGET A BEAST LIKE
ACTING LIKE TOMORROW THERE'S
GOING TO BE AN ASSESSMENT.
IT DOESN'T HAVE TO BE AFTER ALL
THESE BILLIONS OF DOLLARS HAVE
BEEN SPENT IT'S QUICK AS TO BE
SO BIG.
YOU KNOW I MEAN IN TERMS OF HOW
IT WORKS SO IT'S REALLY A LEGAL
FICTION WHAT WE'RE TRYING TO
CONFUSE FINANCIAL MECHANISM TO
BE ABLE TO CREATE CASH. TO TO TO
BE ABLE TO DO AS MUCH GRAYSON
VOLTRON THE STATE OF POSSIBLE IN
THIS RACE WE HAVE BETWEEN NOW
WHEN AN EARTHQUAKE.
SO I'M TRYING TO UNDERSTAND THE
SO WE'RE USING THE THE THE VALUE
OF THE REINSURANCE FUND TO
INVEST HEAVILY INTO THE BRACE
AND AND BOLD -- WE USING ABOUT
LESS THAN A THIRD OF IT OKAY.
WE'RE STILL HAVING REINSURANCE
TO BE ABLE TO CREATE THE
FINANCIAL VIABILITY OF THE
SEVENTEEN STACK TO SEVENTEEN
POINT SIX WE'RE JUST REDUCING
THAT NUMBER AND THEN WE'RE
PUTTING AT THE TOP SO WE GET TO
SEVENTEEN POINT. SIX FOR A ONE
IN FOUR HUNDRED YEAR EVENT
HORIZON TO BE ABLE TO MAKE SURE
WE HAVE THE RATING AGENCIE.
APPROVAL TO BE ABLE TO BORROW AT
THAT TRIPLE A RATE.
SO FOR CONVENIENCE AND I'M NOT
ADVOCATING THIS BUT FOR
CONVENIENCE.
WE HAVE NON PARTICIPATING
ENTITIES BEING DRAWN INTO THIS --
CORRECT CORRECT ON BOTH BY THE
WAY ON BOTH SIDES OF THE TRADE
WHAT YOU'RE HEARING IS THAT NON
PARTICIPATING ENTITIES RIGHT.
THEY'RE NOT PARTICIPATING BUT
WHAT WHAT I BELIEVE CITED ON THE
REASON WITH WITH THE SO A A
COMMISSIONER LARA AND TREASURE A
MARK.
I TOOK THIS BILL ON IS BECAUSE
WHAT'S DIFFERENT HERE THEY'RE
TALKING ABOUT IS STACK WILL
GUESS WHO'S AVOIDING THE STACK
IT'S THE CALIFORNIA EARTHQUAKE
AUTHORITY.
AND THEY'RE SAYING WE'RE GOING
TO ALLOW PEOPLE WHO ARE NON
PEOPLE THAT DON'T HAVE
EARTHQUAKE INSURANCE.
BECAUSE WE BELIEVE THE SOCIETAL
STANDPOINT THE MORE PEOPLE THAT
ARE BRACED IN BOLD THE BETTER
CHANCE WE HAVE GOING FORWARD AS
A SOCIETY.
EVERYBODY GETS.
ACCESS TO THE BRAZEN BOWL
PROGRAM YOU CAN BE ASSURED IN
THE PROGRAM YOU AN BE SURE
OTHER PROGRAM OR YOU COULD NOT
INSURED AT ALL WHAT'S THE
DIFFERENCE BY THE WAY AND I I
LOVE THE FACT THAT WHEN YOU
SWING YOU SWING FOR THE FENCE
HERTZBERG.
GOD BLESS YOU -- WHAT WHY
WOULDN'T WHY WOULDN'T IT BE?
A MANDATORY.
A SCENARIO FOR MANDATORY
COVERAGE.
SO IF WE'RE LOOKING CRITICAL
ZONES THAT ARE VULNERABLE IT
WHETHER THEY BE EARTHQUAKE
WHETHER THEY BE FIRE.
THAT THERE NOT BE A MANDATORY
COVERAGE. FOR ALL THOSE THAT --
PURCHASE OR OWN -- PROPERTIES IN
THOSE AREAS DOES THAT NOT ALONE
IF YOU HAD A MANDATORY SYSTEM
WITH THAT NOT ALLOW FOR THAT
REINSURANCE BOTHERED THAT THE
THE ARCHITECTURE OF THE FOUR
CORNERS OF THE DEAL THAT WAS
EXPRESSED THAT HAPPENED TWENTY
FIVE YEARS AGO.
WAS THE IDEA THAT HOMEOWNERS
INSURANCE MARKETS WERE JUST
BLOWN UP OKAY.
AND SO WE CAME UP WITH THIS IDEA
OF THE EARTH REGULATORY AND YOU
COULD BE A PARTICIPATING OR NON
PARTICIPATING.
IF YOU'RE SOMEBODY WHO DOESN'T
WANT TO BUY THE INSURANCE I FEEL
A BUSINESS QUITE FRANKLY LOTS OF
BUSINESSES YOUR LENDERS REQUIRE
YOU TO BUY.
RIGHT BUT IF I'M SOMEBODY
THERE'S NO REQUIREMENT EXCEPT
FOR MAYBE DRIVING YOU'D HAVE
INSURANCE TO DRIVE RIGHT THAT
YOU HAVE INSURANCE ON YOUR
BUILDING IS YOUR ASSET YOU COULD
DO WHAT YOU WANT WITH IT.
UNLESS THERE'S A LENDER OR AGAIN
JUST LIKE WITH RESPECT TO
DRIVING IS A PUBLIC POLICY
REASON WHY YOU HAVE INSURANCE SO
I SUSPECT THAT.
THE SAME PEOPLE THAT ARE
OPPOSING THIS NOW I DON'T KNOW
OTHER PUT NEW PEOPLE OPPOSE IT
BECAUSE IF YOU ONLY AND THEY
THAT SHARON'S.
YEAH AND WE WE HAD THIS TO
DISCUSSION THANK YOU WE HAVE
THIS DISCUSSION WITH HEALTHCARE.
EVERYTHING WHEN IT COMES TO
SOCIETAL COVERAGE IS BASED ON
VOLUME AND WHAT YOU'RE ACHIEVING
IS VOLUME. FOR THOSE THAT ARE
NOT EVEN IT NECESSARILY --
DISSIPATING I'M WONDERING IF THE
VOLUME OF MANDATING
PARTICIPATION WHICH SHE THE SAME
END WHILE STILL ALLOWING -- THAT --
NUTS AND BOLTS ARE GRAYSON BLAKE
SYMBOL [inaudible]
GRAHAM -- TO TO TO MOVE FORWARD.
GIVE ANY THOUGHT I I DON'T I
MEAN I IT'S A GIGANTIC LEE
DIFFERENT ISSUE.
THAT SWING IN FOR THE THE
STRATOSPHERE BECAUSE IF YOU'RE
NOW IT RAISES SO MANY LEGAL AND
CONSTITUTIONAL ISSUES TO MANDATE
SOMEBODY TO HAVE EARTHQUAKE
INSURANCE ON THEIR PROPERTY.
INVITE ICAL ZONES.
WELL YOU COULD ARGUE FOREVER
REASONS CRITICAL ZONES OR
WHATEVER CRITICAL ZONES I
USUALLY RAISE A WHOLE HOST OF
OTHER ISSUES WE'RE TRYING TO DO.
IN THE SCHEME OF SWING FOR THE
FENCES THE CLOSE FENCES AND JUST
BEING CREATIVE FINANCIALLY TO BE
ABLE TO IN THE AREA WHERE THE
RISK IS NOT GONE OF COURSE I
WE'VE ALL LIVED THROUGH THE
PERFECT STORM AROUND HERE.
BUT IT'S A REMOTE COST VERSUS A
DIRECT IMMEDIATE BENEFIT OF AN
IMPENDING PROBLEM WATER WE DO.
I CERTAIN SITTING IN THIS JOB
AND SAYING YOU KNOW I WANT TO
EVERYTHING I CAN'T IT'S HARD
BECAUSE NO CONSTITUENCY FOR THE
FUTURE UNTIL IT BLOWS UP AND
EVERYBODY RUNS AROUND SAYS OH MY
GOD ON FIXING THE PROBLEM.
WORK THIS TO ME IS A THOUGHT FOR
THE WAY IF WE GET TWENTY YEARS
OF THIS STUFF RIGHT THERE
MILLION HOUSES.
YOU GOT MILLION HOUSES YOU'VE
SUBSTANTIALLY MITIGATED
SOMETHING THAT AFFECTS SOCIETY
ACROSS THE BOARD NOW YOU CAN OF
EARTHQUAKE AND SEVEN MINUTES
FROM NOW.
IN WHAT WE'RE VOTING ON THIS
BILL.
RIGHT.
THAT IS THE IRONIC BUT THAT
WOULD NOT BE GOOD.
BUT THE POINT IS YOU NEVER KNOW
AND OUR JOB IS TO GET AHEAD OF
THE GAME FIGURE IT OUT.
I THINK WHAT THEY'VE COME UP
WITH THE INSURANCE COMMISSIONER
THE THAT THE EARTHQUAKE
AUTHORITY IS PRETTY BRILLIANT.
AND I'M WILLING TO SWING FROM
THE FENCES THE PUSH IT GIVEN THE
CONSTRAINED ABOUT THE TAX STUFF
THAT I'M TALKING ABOUT BECAUSE I
THINK THAT THE LEGAL OPINIONS.
ARE WRONG AND IF NOT I WANT TO
PUT WHAT'S CALLED A VALIDATION
ACTION THAT SAYS BECAUSE I WANT
TO PUT PEOPLE IN HARM'S WY
BECAUSE I DON'T THINK THIS WERE
ABOUT HERE TAX IS A DIRECT
RELATIONSHIP.
OF I MET EXTRACTING MONEY FROM
SOMEBODY FOR GOVERNMENT PURPOSES
I'M EXTRACTING A HYPOTHETICAL
AMOUNT OF MONEY AFTER ALL OF
THESE THINGS WITH A RISK PROFILE
IS SO LOW.
I'M NOT SO SURE THAT'S WHAT THAT
MEANS BUT I I I'M VERY SENSITIVE
TO IT.
AND I'M NOT GONNA RUN PEOPLE TO
THE WALL OVER.
ALL IN ALL IN HERE -- I WANT TO
CERTAINLY STUDY THIS -- I THINK
IT IS VERY INTERESTING -- I
THINK THAT YOUR CONCERN ABOUT
EARTHQUAKES IS WHAT I SHARE
ABOUT WILDFIRES.
IN THE CENTRAL IN INTERIOR OF
CALIFORNIA -- THE AND SO IS WE
LOOK UPON THIS WE'RE LOOKING AT
THE SAME.
THE THE THE SAY THE SAME ISSUE --
PLEASE BY ANALOGY THE ONLY
DIFFERENCE I WOULD SUGGEST IS
THE ARGUMENT THAT WAS MADE IS
THAT THERE'S GONNA BE PREMIUM
COST NEXT YEAR ON WILD FIRE
INSURANCE.
UNDER THIS PROPOSAL THERE IS NO
PREMIUM COST UNTIL A THERE'S AN
EVENT.
BE BECAUSE THE IDEA OF INSURANCE
UP FRONT IS TO PROTECT IT BE IT
HAS TO BE BIGGER THAN FIFTEEN
BILLION BOX.
RIGHT AND SEE IT'S CONTINGENT
WHICH WHAT THAT NUMBER IS WE
DON'T REALLY KNOW AND THERE'S A
LOT INTERVENING FACTORS WITH
THERWISE A CAR. TO ME IT'S JUST
SMART FINANCIAL PLANNING AT A
PLACE WHERE WE'RE NOT SPENDING
CASH SAVING CASH AND USING THE
SAVINGS TO PROTECT CALIFORNIA'S
ALMOST AS IF YOU ARE CREATING.
A CATASTROPHE IN CASUALTY
[inaudible]
SUPER FUND.
THAT MAYBE SHOULD NOT HOLD HEAR
ME OUT.
THAT SHOULD NOT THAT SHOULD NOT
BE TRIGGERED BUT ONLY UPON.
BAD EVENT SO YOU TALKED ABOUT
THAT NEXUS.
THAT'S WHAT HAPPENS IT DOES YES
A GOOD LIST OF AND HOW EXACTLY
SO I'M WONDERING IT WAS IT
CONTEMPLATED BY THE AUTHOR --
THAT THIS ONLY BE LIMITED.
TO EARTHQUAKES I ENDED DID YOU
THINK THROUGH OTHER SCENARIOS
CATASTROPHIC FLOODS OF
CATASTROPHIC FIRES.
THAT'S THE ONE IN SUPER FUN WELL
YOU KNOW EMERGENCY SUPER THING
YOU COULD DO THAT I HAD THAT
DISCUSSION WITH THE INSURANCE
FOLKS YESTERDAY.
AND YOU KNOW THERE'S THE BAND
WITHIN THE LEGISLATURE TO
SOCIALIZE ALL COSTA BOSS THE
BOARD.
I THINK IT'S I THINK THAT THE
EARTHQUAKE AUTHORITY GIVES. TWO
THINGS ONE IS A VERY DIFFERENT
DYNAMIC BECAUSE IT'S AN EXISTING
MATURE TWENTY FIVE YOUR ENTITY
WITH A LOT OF CASH IN THE BANK.
AND UP THE PRE EXISTING PROGRAM
TO THE PRE EXISTING PROGRAM IS
TO FIND A BRACE AND BOWL THREE
MITIGATION IN ALL THESE OTHER
FIELDS.
YOU YOU START DEFINING WHAT THAT
MEANS IN FIRE AND CUTTING DOWN
THIS AND DOING THAT WHAT'S
COVERED AND WHAT'S NOT COVERED.
YOU OF TEN THOUSAND COVERAGE
LAWYERS TRYING T FIGURE IT OUT.
AND SO THE CONSEQUENCES IT
DOESN'T REALLY COMPARE APPLES TO
APPLES TO ME IT'S A IT'S A IT'S
A IT'S A IT'S A IT'S A CURVE
BALL.
IT DOESN'T REALLY DIRECT WHAT
WENT ON THIS SITUATION YOU HAVE
A VERY DIRECT DYNAMIC IN THE
EXISTING MATURE ORGANIZATION.
EVIDENCE IS A WILLINGNESS TO
EXTEND IT TO OTHERS IN A VERY
DIRECT.
LIMITED CIRCUMSTANCES BUT IF WE
COULD CREATE A LARGER POOL IN
THAT REGARD IT'S ULTIMATELY
GOING TO HAPPEN BUT I DO THINK
THAT.
WHETHER IT'S FIRES OR MUDSLIDES
OR ALL THESE OTHER DYNAMICS.
THOSE THINGS YOU CAN'T FIGURE
OUT A SHORT WINDOW THIS TO ME
YOU CAN START THIS PROCESS AND
IN TWO YEARS NOW IF YOU DIDN'T
LIKE IT YOU COULD SHUT OFF AND
THEY GO NOT A BIG DEAL AND
THERE'S NEVER ANY RISK.
YOU CAN PUT A COUPON AT EIGHT
SOME KIND OF LIMITATION ON IT I
THINK I JUST WANT TO TRY TO GET
AS MANY HOUSES BOLTED AS
POSSIBLE.
WITH CREATIVE FINANCING AND
THEY'RE WILLING TO DO IT AND
THEY'RE SMART ABOUT IT.
IT DOESN'T WORK YOU KNOW IT
DOESN'T WORK BETTER I SHOULD ON
THE ROOMS AND IT'S GREAT.
THANK YOU THANK YOU THANK YOU
VERY MUCH I LOOK FORTY TWO
DIVING AND THIS IS I FIND VERY
INTERESTING VERY INTERESTING IN
THIS CREATIVE.
THANK YOU OUR SENATOR GALGIANI --
FIRST I WANT TO THANK THE AUTHOR --
THIS IS A CRITICALLY IMPORTANT
ISSUE AND I WAS IN SOUTHERN
CALIFORNIA WHEN.
THE EARTHQUAKE OCCURRED YES I
WAS SIGNED SYMPATHETIC TO IT --
BUT I APPROACH THIS WITH SOME
SKEPTICISM AND I I WANTED TO
SHOW YOU THE LENS THAT THAT I'M
LOOKING AT THIS BILL FROM.
NOW ON MY DISTRICT WE HAVE
SEVENTEEN HUNDRED MILES OF LEVEE
AND SELL HOMEOWNERS AND
SACRAMENTO AND SAN JOAQUIN
COUNTIES HAVE TO BUY FLOOD
INSURANCE BECAUSE WE'RE AT RISK.
IN NINETEEN NINETY SEVEN WE
SUFFERED A CATASTROPHIC FLOOD
AND MANY INDIVIDUALS LOST THEIR
HOMES THERE WERE MILLIONS AND
MILLIONS OF DOLLARS IN CROP
DAMAGE.
SINCE THAT TIME THERE BEEN MORE
HOMES BUILT AND THE FOR THE AREA
THAT WAS FLOODED IN.
NINETEEN NINETY SEVEN BUT WHAT
THE LEGISLATURE DID THERE ARE A
COUPLE THINGS THAT HAPPENED.
ONE THE FEDS HAVE SENSE REQUIRED
THAT HOMEOWNERS AN THESE FLOOD
ZONES ARE REQUIRED REQUIRED TO
PURCHASE FLOOD INSURANCE.
AND THEY CANNOT PURCHASE A HOME
UNLESS THEY HAVE IT -- MINE COST
ME CLOSE TO FOUR HUNDRED DOLLARS
A YEAR IT'S NOT TOO MUCH BUT I I
PAY AS A THAT'S BECAUSE THE BANK
RECORDS CENTER.
DO YOU WANT TO BUY WITHOUT FLOOD
INSURANCE IF YOU PAY CASH YOU
WOULD HAVE TO BUY IT.
BUT I KNOW I LIVE IN A FLOOD
ZONE SO I WANT TO PROTECT MYSELF.
ALSO WANT TO PROTECT MYSELF --
THE SECOND THING THAT HAPPENED
WAS THAT.
PASSED THE SENATE BILL FIVE IN
EITHER TWO THOUSAND SEVEN OR TWO
THOUSAND EIGHT AND IT SAID THAT
OKAY WE RECOGNIZE THAT IN
CERTAIN AREAS OF THE STATE THERE.
THEY ARE FLOOD ZONES AND IF
BUILDERS WANT TO CONTINUE TO
BUILD IN THOSE FLOOD ZONES.
AND CITY GOVERNMENTS COUNTY
GOVERNMENTS WANT TO CONTINUE TO
PROVE DEVELOPMENT IN THESE HIGH
RISK AREAS THEN THERE NEEDS TO
BE A A TIME LINE.
AND THEIR LEAD NEEDS TO BE --
REQUIRE A STEP PROCESS WHERE THE
BUILDERS IN THE LOCAL
GOVERNMENTS COME UP WITH THE
PROCESS BY WHICH THEY CAN ENSURE
THAT ANY NEW CONSTRUCTION.
WOULD NOT BE PLACING NEW
HOMEOWNERS.
AT GREAT RISK SO IN OTHER WORDS
THERE WOULD HAVE TO BE A PLAN TO
MAKE SURE THAT ANY OF THE NEW
HOMES AND A HIGH RISK AREA.
WOULD HAVE TO BE -- BUILT IN
SUCH A WAY THAT THEY WOULD
ABSOLUTELY NOT BE AT RISK SO --
WHAT I'M I'M LOOKING FOR IN THIS
I HAVE SOME QUESTIONS BUT THAT'S
MY MINDSET AND I'M WONDERING?
THAT YOU KNOW WHILE THERE'S THIS
ASSESSMENT THAT SEEMS SEEMS KIND
OF OPEN ENDED MAYBE IT'S IS IT
TEN YEARS IT WOULD GO AWAY.
ASSESSMENT AFTER THERE WAS A
GIGANTIC EARTHQUAKE IT WOULD BE
THE LAST PART OF MONEY TOUCH.
IF IT GOT HIT AND THEN IT WOULD
LAST OKAY UP TO TEN OKAY SO SO
I'M JUST I'M WONDERING IF
THERE'S ANYTHING IN THE BILL.
THAT WOULD ENSURE THAT.
GOING FORWARD WE WOULDN'T BE
DOING THE KINDS OF CONSTRUCTION
AND THAT WOULD.
PLACE HOMEOWNERS AT SUCH A RISK
IF THERE WERE AN EVENT IN OTHER
WORDS THE THE YOU SHOW ME
PICTURES OF THE STRUCTURES THAT
REQUIRE THE BRAZEN BOLT.
IS THERE ANYTHING THAT WOULD
PROHIBIT THAT KIND OF
CONSTRUCTION GOING FORWARD WHEN
WE KNOW THAT UNLESS WE PUT MORE
MONEY TOWARD IT WE'RE GONNA JUST
FIND HERSELF AN EXACT SAME
SITUATIONAL OVER AGAIN.
YES THERE IS AND THAT IS THAT
THE LOCAL GOVERNMENTS AND
LEGISLATURE SINCE NINETEEN
EIGHTY A FUNDAMENTALLY CHANGE
CONSTRUCTION STANDARDS.
AND SO THE FOCUS OF THIS MEASURE
OUR HOUSES PRIOR TO NINETEEN
EIGHTY SO THIS ONE POINT TWO
MILLION HOMES PLUS WE HAVE THE
TOTAL FIVE MILLION CALIFORNIANS
LIVE IN APARTMENT BUILDINGS.
SO THE NOTION IS GOING FORWARD
JUST LIKE WITH YOUR FLOOD ZONES
WE HAVE PROTECTED THAT JUST LIKE
WE'VE DONE THING WITH WATER
CONSERVATION HOMES AND FIRE
DETECTORS AND CARBON MONOXIDE
DETECTORS WE HAVE FIXED THE LAW
IN THAT WAY.
THE PURPOSE OF THIS MY HOUSE WAS
BUILT IN NINETEEN FORTY EIGHT SO --
THE THE IDEA IS THAT GOOD THESE
HOUSES THE ONE POINT TWO MILLION
HOMES THAT ARE THAT SO MANY
PEOPLE LIVE IN AND ALL THE
APARTMENT BUILDINGS.
WE'RE LOOKING TO THE STORK A
CIRCUMSTANCE WHERE THEY DON'T
HAVE THE LEVEL OF PROTECTION SO
THE ANSWER ELECT YOU'RE LOOKING
AT IN TERMS OF FLOODS.
WE'VE BEEN SMART ABOUT IT THIS
IS GOING BACKWARDS NOT FORWARDS
BECAUSE SO MANY PEOPLE LIVE IN
OLDER HOMES.
OKAY AND IS GO AHEAD COULD YOU
JUST -- MAKE ONE QUICK POINT AND
THIS BILL ALL THE PROVISIONS OF
THIS BILL.
WOULD ONLY APPLY IN COUNTY THAT
ARE DEEMED HIGH SEISMIC RISK I
BELIEVE.
FORTUNATELY FOR YOU I BELIEVE
YOU'RE YOU'RE DISTRICT INCLUDES
THE COUNTIES THAT ARE NOT HIGH
SEISMIC SO NO CONSTITUENTS NO
CONSTITUENTS OF YEARS WHATEVER
PAIN ASSESSMENT.
AND AND AND AND AND THAT THE THE
MITIGATION DOLLARS WERE NOT FLOW
INTO YOUR DISTRICT IN CENTRAL TO
I SEISMIC AREAS YES SO.
THAT'S REALLY IMPORTANT TO YOUR
PEOPLE ARE ASSESSED YOU'RE
EXEMPT IN ESSENCE.
A TWENTY ON THE FIFTY EIGHT
COUNTIES WERE CALLED SEISMIC
COUNTIES 83% OF THE STATE'S
POPULATION LIVES IN THOSE
COUNTIES.
YOU ARE NOT SUBJECT TO THAT.
BY MORE FLOOD INSURANCE.
THERE MIGHT BE AN EXCEPTION OKAY
THAT WAS MY OTHER QUESTION AND
THEN -- LORI SO.
STICK WITH IT.
SO THIS IS IS THIS JUST WITH
THIS FINE BE JUST LIMITED TO
THOSE RESIDENTIAL STRUCTURES
THAT.
THAT YOU'VE DESCRIBED WHERE
THERE'S A GARAGE CARPORT
UNDERNEATH.
THE HOME ITSELF.
THE CURRENT PROGRAM CENTERED
JUST APPLIES TO HOMES THAT ARE
BUILT ON A CRAWL SPACE CRIPPLE
ALL THE FOUR FEET OR LESS THAT'S
BECAUSE THE FUNDS ARE SO LIMITED.
WITH THIS PROGRAM WILL BE ABLE
TO EXPAND TO A LIVING SPACE OVER
GARAGE OR WHO IN HIM HOMES AND
HILL SIDE WE ALSO WANT.
TO MAKE THIS A BIT MAKE
AVAILABLE THE PART THAT TO MULTI
FAMILY APARTMENT BUILDINGS SO
BYE BYE INCREASE THE AMOUNT OF
FUNDING AVAILABLE BY FIFTEEN
FULL.
ON MOVIE OF THIS INCREASE THE
NUMBER OF A DIFFERENT KIND OF
STRUCTURES WOULD BE VILLARET TO
FIT AGAIN FOR ALL NOT JUST THOSE
WHO ARE IN THE C. POLICY. THREE
FORCE OF THE OF THE BRIDGE OF
HIS WE PROVIDE OUR FOR POLICY
HOLDERS OF THE FOLKS YOU SEE
HERE OPPOSITION SO WE WANT TO
RETROFIT THEIR HOMES -- AND AND
AND WE WANTED RICH IF IT MORE OF
THEIR HOMES WHICH THIS FUNDING
WOULD ALLOW.
IS IS THAT MONEY IS THAT MONEY
ALLOWED TO BE USED FOR THE
POLICY HOLDERS IN THE GROUP THAT
YOU'RE.
AND SHINNING.
I'M STARTING TO GET FROM FEES
NOW.
IT IS BUT THAT WAS PART OF THE
MANDATE OF SEE A TIME WHEN IT
WAS CREATED BECAUSE I NEEDED TAX
EXEMPT STATUS AND SO THEY HAD TO
COME UP WITH SOME PUBLIC.
PURPOSE WAS VERY SIMPLE PROGRAM
AND THAT GIVES IT -- THE FACT
THAT THAT MEANS THAT THE
PREMIUMS COLLECTED OUR STATE AND
FEDERAL TAX FREE.
WHICH OF COURSE INCREASE KIND OF
AN ADVANTAGE AS OPPOSED TO
COMPANIES IN OUR GROUP THAT
WRITE IT ON THEIR OWN PAPER THE-FACTS ARE CAPACITY AFFECTS OUR
COSTS.
AND THINGS LIKE THAT SO THE
MONEY IS AVAILABLE -- FOR POLICY
HOLDERS OF RESIDENTIAL PROPERTY
OF LARGE ART BUT NOT AVAILABLE
FOR ALL THE COMMERCIAL PEOPLE
THAT ARE GOING TO BE -- ASSESSED
AND THAT'S WERE YOU TRYING TO
STRUGGLE TO FIND THE NEXUS FOR
INSTANCE BETWEEN CHARITY.
AND YOU KNOW INSURANCE AND
ARCHERY BONDS FOR INSTANCE IN
THIS PROGRAM ON THIS NUMBER OF
OTHER EXAMPLES.
SO I JUST WANNA MAKE SURE THAT I
UNDERSTAND THIS RIGHT SO -- THAT
THE COMPANIES THAT YOU'RE
REPRESENTING OUR OUR PAYING FOR
THE INSURANCE.
ALREADY AND TAKING THE RISK
PRIVATELY SO PERHAPS I WRITE
WITH YOUR COMPANY. ONE OF YOUR
COMPANIES.
I PAY FOR EARTHQUAKE INSURANCE.
YOU UNDER RIGHT MY RISK.
CELL I'M COVERING MYSELF BECAUSE
I PAPER EARTHQUAKE INSURANCE.
AND IT IS THE OBJECTION THEN
BECAUSE NOW YOU'RE BEING ASKED.
TO ASK ME TO PAN ASSESSMENT
BECAUSE SENATOR ROSS DIDN'T GET
AN EARTHQUAKE INSURANCE.
BECAUSE SENATOR ROTH HAS WILL
HAVE A LOSS IN HE WAS A POLICY
HOLDER OF A MEMBER COMPANY OF CA.
BECAUSE SO ALL THIS.
IS CONTINUED ASSESSMENT GOES TO
THE FINANCIAL STRENGTH OF CA
WHICH IS THERE FOR ONE PAUL
PURPOSE AND ONE PURPOSE ONLY
THAT IS TO PAY THE CLAIMS.
OF THEIR MEMBER COMPANIES SO THE
MILLION POLICY HOLDERS THAT THEY
HAVE OUR POLICY HOLDERS OF THEIR
TWENTY FOUR COMPANIES.
ONLY AND YOU WOULD BE ASSESSING
EIGHTY OTHER HOMEOWNERS
COMPANIES AND TWO HUNDRED PLUS
COMMERCIAL INSURANCE COMPANIES
TO PAY THE BENEFITS. FOR THOSE
POLICY HOLDERS IN THE CA NOW.
I MEAN THAT'S THE LEGAL KIND OF
THEORY WHAT'S BEING DONE HERE IS
TO SAY THAT CONTAGION ASSESSMENT
WHICH WILL NEVER.
TAKE A FACT GIVES US THE ABILITY
TO NOT BY AGE REINSURANCE OTHER
YEAH BECAUSE THERE'S IF WE HAVE
A CONTINGENT OF SAYS MATT THAN
THAT.
GOES IN THE PLACE OF REINSURANCE
AND THEN THEY'LL TAKE THAT MONEY
AND PUT IT INTO A BRACE INVOLVED.
AS AS WE SAID BEFORE WE DON'T
HAVE A PROBLEM WITH BASED
RESEMBLED -- I THINK THERE IS --
ISSUE WHERE -- YOU CAN COMBINE
RETROFIT -- FOR EARTHQUAKE AND
COMBINE AND RETROFIT FOR
WILDFIRE.
AND THEN EVERYBODY.
AND THE STATE WOULD HAVE SOME
INTEREST AS OPPOSED TO BEING AN
EARTHQUAKE AREA OR FIRE AREA OR
WHATEVER THE CASE MAY BE.
DISTRICT HAS THE YOU KNOW OF NO
IT'S A BENEFIT -- THE ADVERSE
DEAL BEING BOTH EARTHQUAKE AND
FIRE.
SO YEAH [inaudible]
WHAT BUT?
BUT BUT IF I BATRES QUAKE
INSURANCE MONEY YOUR COMPANIES
IS IT CONCEIVABLE THAT IF HE WAS
MY NEIGHBOR AND HE SAID AND I
DON'T WANT TO PAY FOR THE
EARTHQUAKE INSURANCE.
NO NO NO NO OKAY I WOULD QUE.
THE THE SENATE OF THE ASSESSMENT.
THE THE LIKELY ASSESSMENT THAT
THAT COULD HAPPEN SOMEDAY
BLESSING HALF A PERCENT
PROBABILITY THAT EVER WILL BUT
IT BIT THEM ON THAT WOULD BE
MADE ON ON ALL THE LINES LISTED
IN THE BILL -- TO ASSIST THE
SEEING PAYING CLAIMS FOR ITS
POLICYHOLDERS TO THE RIGHT IN
SAYING SO OTHERS ARE BEING
ASSESSED FOR THE C. CAN PAY
CLAIMS FOR HIS POLICY HOLDERS.
BUT THAT'S BECAUSE IN EXCHANGE
WE'VE BEEN OUT THERE
RETROFITTING THEIR HOMES --
EVERY YEAR UNTIL THAT VERY
UNLIKELY EVENT OCCURS.
AND IF YOU SEE THE POINT SO
EVERY HOMEOWNER IN CALIFORNIA
HIGH SEISMIC ZONE WOULD BE
ELIGIBLE FOR THIS THIS RETROFIT
PROGRAM EVERYONE WHETHER THEY'RE
SHARED BY US OR NOT.
CURRENTLY THREE FOURTHS OF THE
HOME TO RETROFIT.
I DO NOT HAVE A SEAT POLICY
THAT'S BECAUSE THIS PUBLIC
ENTITY.
ISN'T IN HERE TO MAKE A PROFIT
AT IT WE'RE HERE TO MAKE
CALIFORNIA A SAFER AND OUR
EARTHQUAKE RISK REASONABLE
PROGRAMS FOR EVERYONE.
IT WOULD BE FOR EVERYONE TO IF
WE COULD PUT MORE MONEY BEHIND
SO WE COULD RICH FIT MORE OF
THEIR INSURANCE HOMES IT AND
THERE'S THERE'S NO WE DON'T ASK
QUESTIONS.
ABOUT DO YOU HAVE EARTHQUAKE
POLICY.
WHO IS THAT WITH THEM THAT IS
IRRELEVANT IF PEOPLE ARE
SELECTED FOR PROGRAM WHERE TO
RETROFIT IT MAKE IT SAFER?
THE TRADE OFF FOR THAT IS AN
ASSESSMENT ON ABOUT TWELVE
BILLION DOLLARS OF OTHER LINES
OF INSURANCE.
YES ME AND I THINK IT'S
IMPORTANT TO NOTE IN THE
SCENARIO THAT YOU OUTLINED WITH
SENATOR ROTH BEING YOUR NEIGHBOR.
IF SENATOR ROTH IS YOUR NEIGHBOR
AND HE HAS A CALIFORNIA
EARTHQUAKE AUTHORITY POLICY AND
YOU HAVE THIS SAY A GOLDEN BEAR
HOMEOWNER'S POLICY DIDN'T CHOSE
NOT TO PURCHASE EARTHQUAKE.
YOU IN THE EVENT OF AN
EARTHQUAKE WOULD BE PAYING AN
ASSESSMENT ON YOUR HOMEOWNER'S
POLICY TO PAY FOR SENATOR ROSS
HOME TO BE REPAIRED UNDER THE
CALIFORNIA EARTHQUAKE AUTHORITY
POLICY.
BUT YOU ALSO WOULD BE ABLE TO
GET YOUR HEAD HOUSE RETROFITTED
FOR FREE.
IF IT WAS ALRIGHT.
I DON'T DISAGREE WITH THAT IT
BUT REMEMBER I MEAN.
IF IT HAPPENED TO BE UNDER --
OLDER THAN A HOME BUILT IN
NINETEEN EIGHTY OF COURSE AS
WELL AND AGAIN WE'RE NOT ANTI
FREE SYMBOL AT ALL I MEAN 1100%
BEHIND EXPLAINING THE PROGRAM
AND WE WANT TO GET THESE HOMES
RETROFITTED.
IT IS PURELY THE NON
PARTICIPATING INSURER ASSESSMENT
THAT WE DO NOT SUPPORT LET'S
FIND ANOTHER INNOVATIVE WAY TO
GET FINANCING FOR THE PROGRAM SO
THAT WE CAN GET THESE HOMES
PROTECTED.
WHAT IS THE COST OF RETROFITTING
A SAY IT'S A HALF A MILLION
DOLLAR HOME?
THE CURRENT REGS VISIT WERE ABLE
TO DO ARE JUST FOR HOMES THAT
SIT ON TOP OF A CRAWL SPACE M.
M. AT HALF A MILLION.
THE BE ABOUT OF AT AMP AT A
PRICE DIRECTOR IN SOUTHERN
CALIFORNIA COST BETWEEN THREE
AND FOUR THOUSAND DOLLARS.
IS MORE IS HIGHER IT IS MORE
EXPENSIVE THE BAY AREA BECAUSE
OF HIGHER COST OF LABOR
MATERIALS COST BUT FIVE OR SIX
THOUSAND BUCKS.
SO OUR GRANTS PROVIDE THREE
THOUSAND DOLLARS REIMBURSEMENT
TO PEOPLE ARE SELECTED AT IN
COULD BE THE PROGRAM SO IN
SOUTHERN CALIFORNIA WERE ABLE TO
COVER KIND OF MOST OF THE COST
OF THE RETROFIT.
IN NORTHERN CALIFORNIA IT GOES A
LONG WAY TO A SITTING THE FIVE
OR SIX THOUSAND DOLLARS AND THAT
A PERSON ENTERS.
SO IT'S A GOOD PROGRAM STARTED
TWENTY FOURTEEN WE KNOW RIP
RETROFITTED SEVENTY EIGHT
HUNDRED HOMES -- ALMOST ALL OF
THREE FOURTHS OF THEM.
AT ALL OUR HOMES THAT ARE NOT CA
INSURED -- IN AND WE HAVE MADE A
DIFFERENCE IN THE NEIGHBORHOODS
IN WHICH IS PROGRAM BEEN
OPERATING NOW FOR SEVERAL YEARS
WE'VE MADE THOSE NEIGHBORHOODS
MORE RESILIENT.
WHICH WANT TO EXTEND THAT TO IT
TOO IS THAT THE ALL OF THE HIGH
SEISMIC AREAS IN THE STATE.
I SENATOR DOES THAT ANSWER YOUR
QUESTION [inaudible]
SENATOR GLAZER.
THANK YOU THANK YOU MADAM CHAIR
INTERIM HEARING.
THIS IS A GREAT CONVERSATION TO
HAVE BECAUSE THERE'S A LOT OF
QUESTIONS.
BUT BE STRAIGHT WITH YOU THIS
COMES AT A TIME WHERE I'M TRIPLE
BOOKED AT THIS MOMENT IN TIME.
IN TERMS OF BEING HERE HAVING TO
BE OTHER PLACES.
I JUST -- I'VE READ THIS
MATERIAL I APPRECIATE YOUR STAFF
COMING OVER INSURE IT WITH ME.
BUT IS VERY COMPLEX AND IT'S
CHALLENGING TO GET MY HEAD
AROUND IT AND YOU'VE DONE A GOOD
JOB OF TRYING TO EXPLAIN IT TO
ME AND I I KNOW THE INTENTIONS
ARE GOOD BUT I JUST WANT TO TELL
YOU THAT.
BUT THIS DOES COME AT A TIME
WHERE WE'VE HAD REALLY A MATTER
OF DAYS TO TRY TO STUDY
SOMETHING VERY COMPLEX AND VERY
SERIOUS.
NOW I I GIVE YOU ENORMOUS PROPS
FOR IDENTIFYING A PROBLEM -- BUT
IS NOT ONE NECESSARILY THAT CAN
BE SOLVED BY WHAT YOU PUT ON THE
TABLE BUT YOU HAVE IDENTIFIED A
PROBLEM YOU'VE IDENTIFIED.
THE LOSS OF PREMIUMS THAT WE
PAID OUT OVER TWENTY YEARS FIVE
BILLION DOLLARS.
AND WHAT DO WE GET OUT OF THAT
YOU KNOW A QUARTER OF A MILLION
DOLLARS OR WHATEVER IT THE PAY I
I GET WHY IN HINDSIGHT.
YOU LOOK AT THAT CIRCUMSTANCE
AND YOU SAY HEY THAT WASN'T
REALLY A GOOD DEAL WE COULD USE
THAT MONEY AND YOU'RE RIGHT.
BUT WE WE CAN'T MAKE POLICIES
IT'S LIKE YOU KNOW I SHOULD HAVE
INVESTED IN THAT STOCK OKAY.
AND SO I APPRECIATE WHY IT'S
FRUSTRATING TO TO SEE ALL OF OUR
PREMIUMS ON THE EARTHQUAKES
GOING TO RE INSURANCE.
RIGHT.
WE'VE COVERED THAT OBLIGATION
BUT WE GOT NOTHING REALLY OUT OF
IT THAT WE CAN CONTINUE ON I I
SHARE THAT FRUSTRATION IT IS.
IT IS WORRISOME BUT AT AT AT THE
FUNDAMENTAL TO THAT
CIRCUMSTANCES OUR WILLINGNESS TO
TAKE RISKS.
RIGHT AND YOU HAVE A PROPOSAL ON
HOW YOU WANT TO MANAGE THE RISK
BUT THAT'S AT THE FUNDAMENTAL
ELEMENTS OF THESE CHOICES THAT
WE MAKE.
I ON IN THIS IN THIS SPACE OKAY --
THE I THINK THE BRAZEN BALL
WHICH OF COURSE IS AN INCREDIBLY
WORTHY PROGRAM. FOR ME AT LEAST
IS AN ENORMOUS DISTRACTION.
I SUPPORT BRACE SIMPLE AND
EFFECTIVE IT'S A PRIORITY OF THE
STATE TO BRACE INVOLVED IN
WHAT'S TAKE A HUNDRED MILLION
OUT OF THE GENERAL FUND ONE TIME
AND GET IT ALL DONE RIGHT -- BUT
I I'VE I'VE SEEN IN MY
LEGISLATIVE CAREER AND BEYOND.
HI.
WHATEVER WHATEVER IT IS OKAY
WHATEVER IT IS BUT I HAVE SEEN
IN MY TIME IN THIS SPACE.
VERY OFTEN THE IN THESE CARROTS
LIKE AT LET'S SAID HAVE A
LOTTERY BECAUSE THE SCHOOLS
NGUYEN.
TO RIGHT OR LET'S SAY CHANGER
PENSION PLAN NOW BECAUSE IT'S
NOT GOING TO COST US ANYTHING I
I'VE SEEN THESE THINGS AND I'M
NOT SAYING THAT.
THAT THIS IS IT BUT I'M SAYING
THAT WHEN YOU PUT OUT.
SOMETHING THE SO ATTRACTIVE IT
DISTRACTS FROM WHAT THE THE
REALLY THE EQUATION THAT TO
BEFORE US TODAY.
AND FOR ME AT LEAST.
IT'S NOT ABOUT BRACING BOLD AND
PUTTING MONEY INTO BRACE SYMBOL
OKAY -- IT'S LIKE WE WERE
TALKING ABOUT SICK REFORM THE
OTHER DAY AND WAS LIKE WELL THE
JUDGES SAY WE AT IT'S GOING TO
CLOG UP THE COURTS WILL IF IT'S
ABOUT HOUSING AND SEEK REFORM
HELPS.
WELL THAT'S UNCLOG THE COURTS SO
THERE'S A LOT OF DISTRACTIONS
THAT COME INTO OUR POLICY
DISCUSSIONS AND FOR ME AT LEAST.
I'D SAY GRAYSON BOLT SHOULDN'T
BE AT IT'S REALLY ABOUT HOW WE
MANAGE RISK AND AND MANAGE RISK
IS NOT NECESSARILY -- ABOUT
MODERNIZING.
I IT'S NOT ABOUT.
TAKING LESS CASH OUT OF THE
BUDGET -- BUT BUT IT'S REALLY
THERE'S LOTS OF CHOICES IN THAT
SPACE THERE REALLY IS AND THIS
IS ONE OF THOSE CHOICES WERE YOU
SAY ALL IN CATASTROPHIC EVENTS.
WE'RE GOING TO HAVE THIS -- BACK
TAX OR WHAT HOW WE WANT TO
CHARACTERIZE IT AND THAT'S HOW
WE'RE GONNA MAKE UP -- AT BEING
ABLE TO SKIM OFF THE MONEY.
THAT WE CAN USE FOR A GOOD
PURPOSE WHATEVER ITS BRACE
INVOLVED OR WHATEVER IT IS.
AND I THINK THAT THAT'S A GREAT
CONVERSATION TO HAVE I I THINK
IT'S EXCELLENT AND I AND I THINK
THERE'S A LOT OF THERE'S A LOT
OF OPTIONS IN THAT SPACE REALLY.
THIS COULD BE A GREAT.
ONE THIS DID THIS FOR ME AT
LEAST THIS IS JUST THIS IS AN
OPTION.
AND IS A LOT OF WAYS TO DECIDE
HOW WE WANT TO MANAGE THAT RISK
AND MAKE THOSE CHOICES.
IN THAT SPACE AND IT'S A WERE
THE WERE THE WERE THE
CONVERSATION BUT I DO FEEL --
THE I. UNDER PRESSURE. TO MAKE A
CHOICE TODAY ABOUT SOMETHING
THAT I AGREE WITH YOU IS AN
ISSUE.
IN THE CONTEXT OF A LOT OF
THINGS INCLUDING HOW WE'RE GONNA
HAVE MANAGE FIRE RISK IN OUR
STATE WHICH IS SOMETHING THAT'S
RIGHT IN FRONT OF US.
RIGHT NOW IN FACT A MATTER OF
WEEKS OR SO TO SOLVE THAT
PROBLEM HOW WE GONNA MANAGE
VIRUS.
SO I THINK THIS IS A VERY WORTHY
CONVERSATION AND I SO ADMIRE
YOUR LEADERSHIP IN IN
STIMULATING AND AND AND BUT I DO
FEEL THAT THIS PRESSURE OF A
CHOICE TODAYIS A WORRISOME ONE
FOR ME.
THAT'S MY HONEST FEEDBACK ABOUT
CAN I JUST MANAGER WENT JUST
QUICKLY RESPOND ALL PLUGGED INTO
MY CLOTHES -- IS THIS.
I I UNDERSTAND INSENSITIVE TO
YOUR ISSUES VERY MUCH BUT WHAT I
WOULD SUGGEST IN THIS DYNAMIC IS
THIS IS SOMETHING THAT I
INVENTED YESTERDAY.
THERE'S OR CALIFORNIA EARTHQUAKE
AUTHORITY THERE'S A TWENTY FIVE
YEAR TRACK RECORD.
THE AUTHORITY IS CONTROLLED BY
THE GOVERNOR OF THE STATE
TREASURER IN A FIFTEEN HUNDRED
STAFF INSURANCE COMMISSIONER'S
OFFICE.
THEREFORE THE PROFESSIONALS OF
THIS IS THEIR ANALYSIS THEIR JOB
THEIR HOMEWORK.
NOTHING IS HAPPENING HERE WHAT
WE'RE DOING SOMETHING WE WERE
INVENTING SOMETHING BRAND NEW OR
CHANGING THE LAW THERE'S NEVER
BEEN TESTED OR STUDIED.
THEY SPENT YEARS WORKING ON THIS
THING AND AND THEIR PROFESSIONAL
OPERATION THEY'RE NOT GOING TO
TAKE ANY RISK. TO ADVERSELY
AFFECT THE INSURANCE POLICY
HOLDERS OR ANYBODY ELSE YOU'VE
GOT UNBELIEVABLE FRAZIER
APPLICATIONBY THE WAY IT WAS
APRIL FIRST LET'S TWELFTH AT
THIS AMENDMENTS CAME IN BUT IN
ANY EVENT THE DISCUSSIONS HAVE
BEEN GOING ON WITH THEM AND
EVERYBODY ELSE'S EVERYBODY
BEHIND IT KNOWS ABOUT THIS FOR A
LONG.
TIME AND SO I WOULD JUST SUGGEST
THAT THIS IS THAT YOU'RE CORRECT
ALWAYS TO BE IS A LAST MINUTE
YOU'RE CORRECT ALWAYS I GUESS
THE STORY THAT FEELING RUSHED
ALL I'M TELLING YOU IS THERE'S A
VERY STRONG FRAMEWORK WITH THE
GOVERNOR.
INSURANCE COMMISSIONER AND THE
TREASURER ALL OF WHOM HAVE A
GIGANTIC STAFF THAT WORK THROUGH
THIS IN GREAT DETAIL AND BELIEVE
ME IF YOU'RE RISK AVERSE THEY
ARE TRIPLE RISK AVERSE BECAUSE
THAT'S THEIR NATURE.
AND SO THAT'S THE BOTTOM LINE I
THINK IN TERMS OF WHAT THE
DISTINCTION IS WITH RESPECT TO
THIS IDEA I WOULD NOT HAVE
BROUGHT SOME BRAND NEW
COCKAMAMIE IDEA.
THAT HAD NOT HAD THE FRAMEWORK
TO MAKE IT HAPPEN IT BECAUSE
THEY'VE THEY'VE REALLY SCRUB
THIS AND THEY CAN GIVE YOU THE
DETAILS ON HOW THE SCRUB.
AND AND IF AYE BABE BUT I'M SURE
IT RESPONSE SIX THANK YOU THANK
YOU FOR THAT AND I I DON'T WANT
IN ANY WAY TO BE PEACE MERGE THE
THE PROFESSIONALISM AND
CAPABILITY.
OF OUR OUR FRIENDS AT THE
EARTHQUAKE STORY OKAY AND THE
AND THE COMMISSIONER'S OFFICE OR
A OR YOU AS THE AUTHOR -- NOT
NOT NOT A SMIDGEN OKAY -- BUT
THEY ALSO LOOK AT THINGS -- IN A
FRAME THAT'S DIFFERENT THAN OUR
FRIEND.
IF IF PEOPLE HAVE TO PAY.
BECAUSE OF CATASTROPHIC OF THE
EVENTS THAT WE HOPE WILL NEVER
HAPPEN.
THEY'RE GONNA COME TO US IN
TERMS OF THE CHOICES THAT WE MAY.
OKAY THAT WE MADE I THINK THAT
WE WOULD BE THAT WOULD BENEFIT
GREATLY.
IF WE HAD THE LEGISLATIVE
ANALYST'S REVIEWING THIS
PROPOSAL OR OTHER OTHER
INDEPENDENT -- PROFESSIONALS
THAT HAVE EXPERTISE WE WOULD BE
ADVANTAGE THESE ARE VERY SERIOUS
CHOICES THAT YOU'RE ASKING US TO
MAKE TODAY.
TODAY OKAY AND THAT'S WHAT --
GIVES ME PAUSE.
I HAVE GREAT RESPECT FOR THE
CREATIVITY AND THE
PROFESSIONALISM AND EXPERTISE
THAT YOU BRING.
THANK YOU I'M SENATOR ARCHULETA.
THANK YOU SENATOR FOR APPEAR
BEFORE US AND I THINK IT'S A
IT'S A GREAT TO STEP IN THE
RIGHT DIRECTION.
HOWEVER I AM I DO HAVE SOME
QUESTIONS ONE WE CAN CALL IT
WHATEVER WE WANT TO CALL IT BUT
I I I KEEP HEARING THE WORD TAX.
IN IN ITS ITS CALLED ELEVEN A
IT'S CALLED AN ASSESSMENT -- I
KEEP HEARING THE WORD TAX IT
JUST KEEPS COMING THROUGH THE
SCREEN.
THE WORD TAX IN RIGHT NOW WE'RE
ABOUT TO FACE OF FINANCIAL.
OBLIGATION PERTAINING TO THE
FIRES AND AND THAT SORT OF THING
AND SO I'M.
CONCERNED ABOUT WHAT THAT IS
AROUND THE CORNER WERE OBVIOUSLY
THIS IS.
GOD WILLING GET OFF DECADES
AHEAD FOR LIFE TIMES AHEAD.
BUT IT YOU ENTERED ONE OF THE
FIRST QUESTIONS AFTER THAT THE
BRACE AND BOLTS IS THAT STAY AND
PLAY OR DOES THAT.
IS IT DOES IT.
IF WE DO NOT GO FORWARD WITH
THIS IS THAT WASHED OUT OR ITS
STATE OF MATTER WHAT.
THE BASEBALL PROGRAM WILL REMAIN
WILL WILL CONTINUE TO BE ABLE TO
READ FOR THE COUPLE THOUSAND
HOMES A YEAR.
BUT THAT'S ABOUT IT WITH THE
CURRENT FUNDING AVAILABLE OKAY
THAT'S THAT'S ONE THING THE
OTHER THING IS.
FROM WHAT I UNDERSTAND.
IF SOMEONE OWNS.
HYPOTHETICALLY SEVERAL PIECES OF
PROPERTY.
THE ASSESSMENT -- LET BABY WILL
BE ON EACH.
ONE AND EACH POLICY -- FOR TEN
YEARS POSSIBLY POSSIBLY -- DOES
THAT ALSO GO IN THE AUTOMOBILES
AND OTHER.
IF YOU HAD A HUNDRED HOUSES
YOU'RE GONNA PAY INSURANCE ON
OUR HOUSES IDEA THAT'S BEING
MADE BY THE OPPOSITION SO YOU
GOT A BUNCH OF A SENSE OF COURSE
IT IS.
IF YOU BUY INSURANCEON CARS.
I JUST HIT MY QUESTION WAS ARE
YOUR PRIMARY RESIDENCE TO SINGLE
OUT COMMERCIAL BUILDINGS.
IT'S IT'S ACROSS THE BOARD
THAT'S MY QUESTION OF COURSE
OKAY CROSS THE BORDER AS IT IS
AND EVERYTHING ELSE YES ALL
RIGHT WELCOME TO CAPITALISM.
AND IN I UNDERSTAND IT.
ONCE IT STARTS IT'S IT'S IT
IT'LL BE A TEN YEAR PROGRAM
CORRECT.
THOSE ARE CHEN YOUR PROGRAM IT'S
A NO YEAR PROGRAM WHAT THE IDEA
IS THIS THIS IS WHAT'S BEING
CONFUSED HERE OKAY.
IF THERE'S AN EARTHQUAKE THE
SIZE OF SAN FRANCISCO NOBODY
PAYS A DYING PERIOD NEXT CASE
ZERO ZIP NOTHING.
THIS IS A THIS IS A LEGAL
FICTION IN ORDER TO MAINTAIN THE
RATING AND GET SAVINGS SO YOU
GET TO THAT CHART THAT WE SHOWED
YOU AT THE TOP OF THE CHART WHEN
THERE'S OF THE FIFTEEN BILLION.
YOU AT THE TOP HYPOTHETICALLY IF
THERE'S FIFTEEN BILLION DOLLARS
IN LOSS WHAT'S GOING TO HAPPEN
TO SOCIETY THE PLACE IS GOING TO
BE HOME THERE'S GOING TO BE
PEOPLE THAT HOMES THAT
BUSINESSES ARE GONNA SHUT DOWN.
AS YOU THE ALL SORTS OF DYNAMICS
THAT ARE GOING TO OCCUR WE'RE
TRYING TO BE RESPONSIBLE IN
THINKING THIS THROUGH THROUGH AN
ADVANCE AT IN THAT EVENT.
THERE WILL BE AN ASSESSMENT ON
INSURANCE POLICIES ONLY AFTER.
ALL DOLLARS OR OTHERWISE EXPUNGE
THERE'S NO DOLLARS LEFT
EVERYTHING IS GONE.
AND THEN THERE'S A THE REASON
WHY WE CAPITA TEN YEARS OF AT A
CERTAIN LIMóN POLICY ALONG
THESE POLICIES IS TO GIVE PEOPLE
A COMFORT LEVEL THAT IT'S NOT
GOING ON FOREVER.
IN THE EVENT THAT HAPPENS NOW%
QUITE FRANKLY JUST LIKE WHAT'S
HAPPENING WITH THE WILD FIRES
PEOPLE ARE SAYING ALL THIS IS
GREAT LIABILITY THE TRUTH OF THE
MATTER IS YOU DON'T PAY ALL THE
MONEY OUT ON DAY.
ONE THESE EARTHQUAKE AUTHORITIES
AS YOU PAY IN PREMIUMS WILL
CONTINUE TO GET RE GENERATED SO
I WOULD SUGGEST REAL QUITE
FRANKLY THAT THE THAT THE ODDS
ARE EVEN LESS.
BECAUSE YOU DON'T PAY ALL
DOLLARS ON DAY ONE IT'S NOT LIKE
A DEATH BENEFIT SOMEBODY PASSES
AWAY HERE'S A CHECK.
YOU'RE PAYING FOR CONSTRUCTION
AS YOU GO AND YOU REPLENISHING
YOUR POT AS YOU GO SO I MEAN.
IT IT IS A WAY TO TRY TO BE ABLE
TO MAKE SURE WE KEEP OUR RATINGS.
AND BE ABLE TO BE CREATIVE TO
PROVIDE THIS PROGRAM ACROSS THE
BOARD TO SO MANY MORE PEOPLE
BECAUSE IF THERE IS AN
EARTHQUAKE WE CAN TALK ABOUT
RISK ALL DAY LONG.
BUT OUR JOB IS TO PROTECT THE
PUBLIC AND HERE'S A WAY THAT
DOESN'T COST ANYBODY A DIME.
I TO DIE IN THAT WILL HAVE THE
IMMEDIATE IMPACT TO PROTECT THE
PUBLIC ON A HYPOTHETICAL RISK.
AT THE BACK AND AFTER FIFTEEN
BILLIONS PAID AND I WOULD ARGUE
THESE EVEN WORSE THAN THAT AND
WHAT HAPPENS IS THE INSURANCE
INDUSTRY IS COMFORTABLE OF
COURSE IN THEIR DEAL SINCE WHAT
THE PICTURES COMMISSIONER SAID
WHICH IS WE'VE GOT TO BE
CREATIVE.
AS WE FACE THESE RISKS THAT'S
SIMPLE.
IN AND FINISH UP WITH THE
OPPOSITION IS THERE -- MAN
AMENDMENT THAT YOU CAN WORK OUT
THEY'LL BRING YOU CLOSER
TOGETHER OUR USUAL FAR APART I
DON'T THINK WE ARE WITH A VERY
GOOD MEETING YESTERDAY AND I
LOOKED AT WE TALKED A LOT OF
ISSUES AND I THINK THERE'S A
REAL POSSIBILITY TO TRY TO MAKE
IT WORK MY VIEW.
IS THIS MY VIEW IS WE ALWAYS DO
AND I CERTAINLY OF BEEN THE BOTH
THE PROPONENT OPPONENT BOTH
SIDES I DON'T BEGRUDGE YOU.
I WANT TO GET IT PASSED THIS
COMMITTEE I WANT TO CONTINUE THE
NEGOTIATIONS WITH THESE GUYS I
WANT TO DEAL WITH THE ISSUE
ABOUT TAX I SAID TO YOU PERIOD
POINT BLANK DIRECT I AM NOT
INTERESTED.
IN BEING SOMEONE WHO'S PUTTING A
TAX BILL ON THE SENATE FLOOR I
BELIEVE THAT THE OPINION THAT
THEY'RE DOING IN THE AT THE
ANALYSIS WAS A COMPLETE AS FOR
STATE YOU I DISINGENUOUS.ABOUT UNDERSTAND IT WAS BEING RE
WRITTEN ABOUT HOW IT
CHARACTERIZES THAT I'M TALKING
TO LEDGE COUNCIL IN AN EFFORT TO
TRY.
TO FIGURE OUT HOW TO SOLVE THAT
I'M TRYING TO DO WHAT'S CALLED A
VALIDATION ACTION MEETING THAT
THIS IS NOT A TAX NOBODY'S
VOTING ON THIS THE TAX COURT HAS
TO MAKE A DETERMINATION FIRST
BEFORE THIS GOES INTO LAW.
BECAUSE THERE'S THINK ABOUT WHAT
A TAXES I MEAN THINK ABOUT THAT
AND SO I AM SENSITIVE TO AND I'M
COMMITTING TO YOU THAT I'M NOT
PUTTING A TAX ON THE FLOOR.
BUT I WANNA I DO BELIEVE WE HAVE
AN OPPORTUNITY TO WORK WITH THE
OPPOSITION TO A NUMBER OF ISSUES
THAT HAVE BEEN DISCUSSED TODAY
THAT I THINK WILL HELP SOLVE THE
PROBLEM.
AND TO ARE A YOU KNOW I'VE GOT
TO GET PAST THE TAX ISSUE IN THE
MEANTIME I'M TRYING TO COLLEGE
TRY TO MAKE THIS EFFORT WORK AND
YOU KNOW THAT IT AND I THINK
IT'S IT BEARS A LOT OF VALUE
BECAUSE YOU GET IMMEDIATE
BENEFIT YOU PUT A LOT.
OF PEOPLE TO WORK YOUR STICKS IN
A LOT OF PEOPLE'S HOMES AND YOUR
MITIGATING A VERY SIGNIFICANT
RISK AND THAT'S A GOOD THING FOR
US TO DO IT I'D MAKE THAT MY
CLOTHES [inaudible]
I GET.
I THINK I HAVE THIS DOWN SO.
WE GIVE THE AUTHORITY TO THE CA
TO PUT AN ASSESSMENT.
ON A WHOLE VARIETY OF POLICIES.
AND ACTUALLY HAVE THE CONSUMERS
PAY.
IF CERTAIN CONTINGENCIES OCCUR.
IN ORDER TO ACHIEVE A ABOUT A
HUNDRED MILLION DOLLARS A YEAR
IN SAVINGS ON YOUR RE INSURANCE
POLICY PREMIUMS.
USE ON THIS BRACE INVOLVED PRO.
BY THE WAY.
THE CONTENTION ASSESSMENT FOR
THE ASSESSMENT ON CONTINGENCY.
APPLIES TO SUCH THINGS AS THE
POLICY THAT I HAVE ON MY BEECH
BONANZA OF NINETEEN SIXTY FOUR
AIRPLANES SO I WOULD BE PAYING
AN ASSESSMENT.
SO SHOULD WITH MY AVIATION
POLICY.
IN ORDER TO COVER SOME
EARTHQUAKE ISSUE.
SEEMS A LITTLE INCONSISTENT AT
THAT POINT.
BUT BE THAT AS IT MAY.
I GUESS MY QUESTION IS IS
BRACING VULTURE CORE MISSION IS
THE CA.
MHM ETCETERA FOCUSING ON BRACING
BOLT AND I THOUGHT I AM A POLICY
HOLDER BY THE WAY.
AND I THOUGHT SEE A WAS AN
EARTHQUAKE INSURANCE COMPANY.
WE ARE ABSOLUTE OF QUAKE
INSURANCE WE'D RICHER MORE THAN
MILLION HOMES WE DO HAVE THIS
LEGISLATIVE MANDATE.
THAT WE PROMOTE MITIGATION AS
WELL SO THIS IS.
THIS IS REALLY A MATTER OF
ALLOWING US TO AND SHE'S A
REINSURANCE SAVING SO WE CAN
BETTER FIT MORE HOMES BUT I MEAN
IT'S WE'RE TALKING ABOUT A
SOCIAL POLICY HERE NOT.
AN INSURANCE COVERAGE YOU YOUR
YOUR GROUP OF FILLING A SOCIAL --
POLICY OBLIGATION THAT SOMEBODY
PUT ON YOU IS SEE A TO RETROFIT
HOMES THAT HAVE NOTHING TO DO IS
SEE A POLICY HOLDERS RIGHT -- WE
ARE THE ANY WE DON'T HAVE TO DO
IN THIS ISSUE THAT -- IT WE WE
WILL ALWAYS HAVE THE LEGISLATIVE
MANDATE TO WORK TOWARDS
MITIGATION AND THE WAY THAT
WORKS IS.
THAT THE LET THAT SUCH AS THAT
CREATED US.
MANDATES THAT 5% OF OUR
INVESTMENT INCOME GO INTO IT
LOST ME THE GOING TO FIND MANY
FUNDING MITIGATION.
AS WE DEVELOP THIS PROGRAM AND
WE'RE DOING TWO THOUSAND HOMES
BUT THERE'S OVER THE AT IS OVER
FIVE MILLION HOMES THAT NEED TO
BE RETROFITTED SAID GETTING MORE
THAN YOUR OWN LAW SHE MANY RIGHT
EVERYBODY ELSE THAT'S RIGHT.
INSURED IN THE UNINSURED WAS
RIGHT.
SO I'M I MEAN I WATCHED WANTED --
THIS GOOD IT'S A NOBLE EFFORT.
SO THEN THAT LEADS TO MY NEXT
QUESTION AND I'M TRYING TO
ANALYZE WHY ARE WE DOING THIS
NOW.
IF IT'S A HUNDRED YEAR VENTURA
FOUR HUNDRED YEAR VENTURA FIFTY
YEAR EVENT.
WHEN WE TAKE A LOOK AT IT?
IF AND WHEN SOMETHING HAPPENS
AND DECIDE WHO NEEDS TO BE
ASSESSED AND WHETHER THE GENERAL
FUND CAN COVER THE LOSS OR WHY
ARE WE ARE WE VOTING ON THIS NOW.
BECAUSE SIDE TO SAY WE SHOULDN'T
WAIT IS A NINETY NINE POINT 7%
PROBABILITY OF A SIX POINT SEVEN
EARTHQUAKE THAT SIZE IN
NORTHRIDGE.
HAPPENING AGAIN SOMETIME THE
NEXT THIRTY YEARS THEY THEY
DON'T KNOW EXACTLY WHEN AND
WHERE.
QUESTION I APOLOGIZE NO
DISRESPECT BUT I THINK THE
ANSWER THE QUESTION AS THE
RATING AGENCIES JUST LIKE WERE
FACING WITH INVESTOR OWNED
UTILITIES BANKRUPTCIES ARE
SAYING.
IN ORDER TO GIVE THE TRIPLE A
RATING THAT'S REQUIRED.
WE NEED. ONE IN FOUR HUNDRED
YEAR OF AND COVERAGE OKAY THAT'S
SEVENTEEN POINT SIX BILLION
DOLLARS WE MEET THAT COVERAGE BY.
THE HUGE SWATH OF REINSURANCE.
IF IT FROM A LEGAL PERSPECTIVE
IF WE COULD CREATE THIS
CONTINGENT LIABILITY ON THE
STACK WE ARE TOLD BY THE RATING
AGENCIES THAT THEY WILL MAINTAIN
OUR RATING. FOR THAT BORROWING
AND THE AND THE WORK OF THE AT
THE ITS CRICKET OR YOU CAN BE
MAINTAINED AS TRIPLE A WITHOUT
HAVING TO WRITE A CHECK. FOR THE
RE INSURANCE LOWER IN THE STACK
THAT SAVES A HUNDRED MILLION SO
THAT THE RATING AGENCIES WILL
LEGALLY RELY.
ON THE CONTINGENCY LIABILITY AS
AN ABILITY TO MAINTAIN THE
TRIPLE A RATING THAT'S ALL WE'RE
TRYING TO DO WELL AS IF I WERE
AN AIRPLANE OWNER THAT LIVED IN.
FRESNO FOR EXAMPLE IF THAT'S NOT
AN EARTHQUAKE ZONE I DON'T KNOW.
I MIGHT SAY WELL WHY ARE YOU
GOING TO CAN ASSESS ME ON
CONTINGENCY WHY DON'T YOU DO A
COUPLE THINGS WANTED TO RAISE
THE PREMIUM ON THE C. E. A
POLICY HOLDERS TO BUILD A
SURPLUS.
I'M SORRY THE THE OF I DON'T
THINK FRESNO WAS IN HIGH SEISMIC
AREA I'M ENTIRELY SURE ABOUT.
SEVEN NEW SO THERE WOULD BE NO
ASSESSMENT.
ALL ON MY AIRPLANE OKAY CAM IS
ONLY ASSESSMENTS IN HIGH RISK
ZONES.
THAT'S RIGHT AND THAT'S A WE CAN
PERFORM MUCH OF HIS MEETING IF I
COULD JUST GET BACK TO THE
QUESTION YES.
IN TERMS TO CLARIFY OKAY MY
QUESTION HAD TO DO WITH WHY ARE
WE DOING IT NOW.
AND IF THE EVENT OCCURS IN
TWENTY FIVE YEARS OR THE EVENT
OCCURS IN FIFTY YEARS THE
CALIFORNIA BUDGET INSTEAD OF
BEING TWO HUNDRED BILLION MIGHT
BE SIX HUNDRED BILLION.
BECAUSE CENTER THAT IS TOO LATE
AND WENT OVER WHO IN UNTIL AFTER
THE EARTHQUAKE OCCURS IN HOUSES
TUMBLE OFF THEIR FOUNDATION
BECAUSE THEY WEREN'T RETROFITTED.
WE WOULD HAVE MISSED AN
OPPORTUNITY TO MAKE A HOME SAFER
THAT'S MY POINT THE DRIVER HERE.
IS NOT ANYTHING ELSE ANYTHING
OTHER THAN THE BRAZEN.
BALL PROGRAM AND IF THAT'S THE
DRIVER THAN LETTER WE FIND A
HUNDRED BILLION DOLLARS SOME
PLACE ELSE AS OPPOSED TO PUTTING
A CONTINGENT IS.
ON AIRPLANE OWNERS AND AND
PEOPLE WHO OWN UP CONDOS IN
HOMEOWNERS ASSOCIATIONS WHERE
THEY'RE GOING TO PAY THE
ASSESSMENT ON THEIR ON THEIR
THEIR HOME AT THEIR CONDO.
POLICY AND THEN PAY THE
ASSESSMENT THAT THE HOMEOWNERS
ASSOCIATION PASSES ON TO THEM IN
THE HOMEOWNERS FEE.
SEE WHAT I'M SAYING.
YES YEAH THE REASONS AS CENTER
IF I COULD REAL QUICKLY.
AG IS WE WANT TO DO SO THE
REASON IS IS THAT BECAUSE THIS
GETS A HUNDRED MILLION A YEAR.
AND THAT IF IN THE EVENT IS IN
TWENTY YEARS WE WILL NOW HAVE
BOLTED TWO BILLION DOLLARS WORTH
OF AND MAY BE ALMOST ALL THE
HOMES OF THE TO BE BOLTED IN
CALIFORNIA. TO THE RISK AT THE
TIME OF THE EVENT WILL BE
DRAMATICALLY LESS AND WE WILL
HAVE MITIGATED THAT.
AND IT'S NOT A ONE HUNDRED
MILLION DOLLAR COST REYES AND
BOLD IT'S BILLIONS.
AND SO HUNDRED MILLION THE YEAR
OR A SAVINGS EVERY YEAR AND THE
THE IDEA IS THAT WERE BASICALLY
SAVING IT BY REDUCING THE COST
OF THE THE THE PREMIUMS TO THE
REINSURANCE COMPANIES ON THE ONE
HAND.
AND ON A MORE MARING THAT
IMMEDIATE PROTECTION AND
IMMEDIATE MITIGATION AGAINST THE
VERY HIGHLY UNLIKELY.
THEORETICAL FOUGHT THAT YOUR
AIRPLANE MIGHT GET TAXED IF YOU
LIVE IN A MIGHT GET SET THE FEE
ON IT.
IF YOU LIVE IN A HIGH ZONE A
HIGH A HIGH EARTHQUAKE ZONE YOU
UNDERSTAND THE OPTIC FOR US THE
OPTIC IS WE'RE IF PEOPLE DON'T
UNDERSTAND THAT THERE'S A OF THE
ASSESSMENT IS ON IS ON A
CONVENTION [inaudible]
THE CONTINGENCY.
WE'RE GOING TO VOTE ON SOMETHING
AND WE'RE GOING TO PUT A FEE ON
SOME BORDER WHATEVER YOU CALL IT.
YOUR ASSESSMENT ON SOMEBODY'S
ACTIVITY OR PROPERTY.
IT HAS NO NEXUS.
TO ALTON BRACE FOR EARTHQUAKES
OR ANYTHING ELSE BUT THAT IT'S
NOT LIKE THEY'RE GOING TO SEE
THE ASSESSMENT AND THEN THEY'RE
GONNA HAVE A BILL INCREASE BILL
NOT GONNA HAPPEN WHAT'S GOING TO
HAPPEN IS AFTER FIFTEEN BILLION
PLUS AT AND AGAIN IF IT HAPPENS
IN TWENTY YEARS AT NUMBERS.
PROBABLY GONNA BE. THIRTY
BILLION THAT COVERS BECAUSE
THAT'S GOING TO CONTINUE TO GROW
AND KNOWN SOME LIKE IT IS THE
WAS GETTING A BILL.
IT'S A PROPERTY TAX BILL NO
ONE'S GETTING OF THE SALES TAX
BILL THOSE GETTING A BILL.
IT'S JUST A WAY TO BE ABLE TO
MEET THE OBLIGATION AND THE BE
SMART LOOK.
HE E. I LIKED IT BECAUSE IT'S
PUT A BUNCH OF MONEY IN THE IT
IN IN REYES AND BOLD AND REDUCE
RISK TO THE STATE.
EVERY TIME RUN AROUND SPEND
BILLIONS AND BILLIONS AFTER THE
FACT FICTION FIRES FIX IN THIS
PAY IN TEN X..
IF WE CAN FOR SMALL AMOUNT OF
MONEY DRAMATICALLY REDUCE IT ON
A THEORETIC ON A SMALL RISK FOR
AN IMMEDIATE BENEFIT.
IT'S IT CAME OUT TO ME THAT IT'S
A PRETTY GOOD PUBLIC POLICY AND
MAYBE YOU'RE RIGHT MAYBE SOMEONE
CAN SPEND IT IN THE INDUSTRY TO
SAY ALL THIS IS HAPPENING.
BUT THIS IS A MOMENTARY THING
THAT NO ONE'S GONNA SEE ANYTHING
YEARS OF THE I CAN SEE A BILL ON
YOUR A YOUR AIRPLANE. ONE OF THE
YEAH ONE OF THE BASIC QUESTION
AND I'M GOING.
TO SHUT MY MOUTH.
GRAYSON BOLD HOW WHAT ARE THE
QUALIFICATIONS FOR PARTICIPATION
IN FINANCIALLY NEED BASED IS IT.
NOT BASED ON FINANCIALLY SO FAR
THE PROGRAM WHICH WAS JUST
STARTED TWENTY FOURTEEN
BASICALLY -- DETERMINES ACT --
THAT ZIP CODES THAT WERE ABLE
OPERATING CURRENTLY BE SENT TO
CRITERIA.
ZIP CODES THAT HAVE THE HIGHEST
CONCENTRATION OF A SEISMIC RISK.
AND THAT NUMBER ONE AND NUMBER
TWO THAT THE HIGHEST
CONCENTRATION OF OF OLD -- OLDER
BUILDING STOCK IN IS IN A ZIP
CODE -- IN YEARS IN YOUR DID.
IN YOUR ZIP CODE IN YOUR IN YOUR
SENATE DISTRICT THERE'S OVER A
HUNDRED THOUSAND HOMES THAT WERE
BUILT PRIOR TO NINETEEN EIGHTY
THEY'RE PROBABLY VULNERABLE AND
NEED TO GET RETROFITTED.
NO ONE ELSE IS COMING FORWARD
WITH A PROACTIVE PROGRAM TO SAY
LET'S LET'S TAKES A LITTLE
PORTION THE MONEY THAT WE'RE
CURRENTLY SENDING TO BERMUDA IN
LONDON.
AND IN SWITZERLAND AND GERMANY
TO THE REINSURERS AROUND THE
WORLD STICK A PORTION THAT MONEY
IN SENATOR RIVERSIDE SO WE CAN
MAKE A HOMES THEY'RE SAFER -- SO
THAT WHEN THE EARTHQUAKE DOES
STRIKE THEY'RE GONNA BE LESS
HOMES A COUPLE OF THE FOUNDATION
THAT THAT'S REALLY WHAT THIS IS
ALL ABOUT MANNER CHECK JUST FOR
A SECOND I'M SO SORRY HAD TO GO
PRESENT A BILL RIGHT NOW I'M
GOING TO HAND.
OVER THE GAVEL -- TO MISTER
JONES AND I WILL BE RIGHT BACK
THANK YOU THANK YOU SO MUCH.
CENTER I THINK YOU SAW THE FOR
OKAY THANK YOU.
OUR THERE MORE LOCK AND THEN
WE'LL GO TO A CINDER DOT.
THANK YOU MSTER CHAIR -- TWENTY
FIVE YEARS AGO THIS TIME.
THERE WAS A ELECTED OFFICIAL
ORANGE COUNTY WHO.
CAME UP WITH THE RATHER CREATIVE
FINANCING SCHEME.
AND HE WAS ABLE TO DOUBLE.
TRIPLE THE AMOUNT OF YIELD THAT
HE WAS GETTING OUT OF HAND AS
FROM.
THE TAXPAYERS.
AND HE WAS VERY CLEAR ABOUT HOW
HE WAS DOING AND HE WAS BARRING
TO INVEST IN.
THEY SAID WELL IF INTEREST RATES
GO UP THEN YOU MIGHT HAVE MARGIN
CALLS AND HE WAS SAID NAH NEVER
HAPPEN.
AND IF IT DOES HAPPEN.
I'VE GOT PLENTY OF CASH.
THE PAPER MARGIN CALLS.
HE WAS RUNNING HAS SCHEME THAT
BY DECEMBER OF NINETY FOUR BLEW
UP IN THE COUNTY OF ORANGE LAST
ONE POINT SEVEN BILLION DOLLARS.
I JUST WANT TO SHARE THAT STORY
BECAUSE WE HAVE AN INSURANCE
COMPANY.
THE IDEA WITH EARTH QUAKES.
AN INSURANCE COMPANY HAS TO BUY
REINSURANCE ALL INSURANCE
COMPANIES DO WELCOME TO THE
WELCOME TO THE BUSINESS.
YES IF YOU DON'T USE IT YOU LOSE
IT THAT BUT THAT'S THE COST OF
DOING BUSINESS AND THAT'S HOW
YOU.
COMPUTE YOUR PREMIUMS THAT YOU
CHARGE ALL THE PEOPLE THAT WANT%
TO HAVE EARTHQUAKE PROTECTION OR
ANY OTHER KIND OF PROTECTION.
THE TREASURE ORANGE COUNTY HAD
NO SKIN IN THE GAME HE HAD HE
DIDN'T OWN THAT POOL HE DIDN'T
WITH WHETHER HE DID WELL OR NOT
DIDN'T MATTER EVEN GET PAID
EXTRA YOU DIDN'T HAVE.
TO LOSE ANY STOCK PRICE AND
THAT'S THE SAME THING WITH THE
C. E. A IF IT DOES WELL.
GREAT WIN IF IT DOES BAD WE ALL
LOSE ALL OF A SERVICE BIG
HOLDERS IN THE C. E. A AND SO
I'M REAL CONCERNED.
WHEN WE HAVE A INSURANCE COMPANY
THAT HAS HAD A REALLY GOOD
EXPERIENCE RATIO?
IT'S IT'S NOW SAYING ALL MY
GOODNESS WE'VE WE'VE GOT SOME
EXTRA REVENUE.
WHY DON'T WE DO?
THIS.
REVIEW FURNISHING OF HOMES THIS --
WE KEEP SAYING IT OVER AND OVER
THIS BREAK BRAZEN BALL.
BUT THIS TO A FOR EVERYBODY WELL
WHY ARE WE LOOKING AT IT LIKE A
LIKE THE SOLAR ENERGY INDUSTRY
WHY DON'T WE IF YOU GOT A
MILLION SHAREHOLDERS BILLION
POLICY HOLD POLICY OLDER.
WE SHOULD BE.
BRACING AND BOLTING THEIR HOMES
IN AND SAYING HEY FOR THE FOR
THE FACT THAT YOU BRACE YOUR
HOME WE'RE GOING TO REDUCE YOUR
PREMIUM BY X. AMOUNT AND YOU CAN
RECOVER.
THE COST OF YOUR BRACING AND
BOLTING BY THE REDUCTION OF
PREMIUMS OVER A FIVE OR TEN YEAR.
PERIOD THAT'S HOW YOU DISTRIBUTE
SOME OF YOUR EXCESS.
PROFITS BUT THE REST OF THOSE
PROFITS SHOULD BE BUILT UP IN
RESERVES SO YOU CAN REDUCE THE
AMOUNT OF YOUR REINSURANCE
AMOUNTS BUT YOU REDUCE THE
AMOUNT OF THE POLICY PREMIUM
JAPAN.
THAT'S WHAT WE SHOULD BE DOING
AS AN INSURANCE COMPANY AND SO.
HERTZBERG I REALLY APOLOGIZE I
AM JUST MY SKIN'S COMING OFF.
MY BODY HERE I I MEAN I'VE
LOOKED AT THIS SIZE BUT THAT.
THE TIME WITH WITH LANDO YOU
KNOW LAST WEEK.
LOOKING AT IT I'M GOING Y. C.
A.'S HAS BEEN A LUCKY INSURANCE
COMPANY AND NOW IT'S GOT A SHINY
OBJECT.
THIS GRAYSON BOLT.
OPPORTUNITY THAT'S NOT A CORE
BUSINESS JOB THAT TO MISSION
CREEP.
AND I THINK.
HERTZBERG.
THIS IS ME ARE ARE ARE REALLY --
SCARY PROPOSITION.
YOU KNOW I TO MAKE.
INSURANCE COMPANIES.
INVOLUNTARY CO SIGNERS.
THAT IS SOMETHING IF THE NEVER
HAPPENED AND I WAS TOLD AS A KID
NEVER SAY NEVER BUT WHEN THE
NEVER HAPPENS.
ALL THESE INNOCENT PARTIES NOW.
ARE SUBJECT TO CHARGING THEIR
POLICY HOLDERS A SMALL LITTLE
PRIMA REAL TINY.
BUT EVERYBODY GETS HIT WITH THEY
DIDN'T ASK.
AND THEY DIDN'T GET A QUID PRO
QUO WHAT ARE THEY GETTING.
YOU KNOW BEFORE STEPPING UP ITS
LIKE IF MY SON DEFAULTS ON A
LOAN I GOT TO PAY FOR IT WHEN I
NEVER I DON'T MEMBERS CO SIGNING.
ON THE WHOLE ONE SO WHAT WE ARE
I'M I'M HAVING SOME REAL ANGST
SENATOR HERTZBERG AYE I GET THE
CREATIVITY.
I DON'T SEE IT IS BRILLIANT
HOWEVER AND I DON'T SEE IT AS A
STRING FOR THE PRINCES I THINK
IT T.
IT IT IT CREATES SO MUCH
EXPOSURE UNNECESSARILY I THINK I
THINK WE GOT TO GO BACK TO THE
DRAWING BOARD.
IN THE END I WILL BE A NO VOTE --
YEAH I APOLOGIZE FOR GETTING A
LITTLE.
EMOTIONAL BECAUSE I'VE BEEN HERE
BEFORE AND I'VE JUST SEEN HOW
MANY PEOPLE GET HURT BY A
CREATIVE IDEA.
THAT.
IS DONE BY GOVERNMENT OFFICIALS
WHO HAVE NO SKIN IN THE GAME.
IF THEY'RE ELECTED THEY'RE GONE.
AFTER FOUR YEARS OR EIGHT YEARS
AND IF IT BLOWS UP THEN THEN
THEY'RE GONNA I DON'T KNOW IF
THERE'S AND SO I I'M TALKING
WILL TOO MUCH BUT WE'RE CREATING
A PROGRAM TAKE SECURE CHOICE I
HAVE TROUBLE WITH THAT TOO THAT
WE'RE CREATE A WHOLE NEW
DEPARTMENT ONLY PROGRAM.
IN IN IN IN WHO GETS CAUGHT WITH
EXPOSURE WILL YOU KNOW
GOVERNMENT WHICH IS THE
TAXPAYERS.
I DON'T LIKE THE IDEA SORRY.
HERTZBERG.
I'M A NO VOTE THANK YOU THANK
YOU SIR MAROC SENATOR DODD
CENTER BOARD JUST IN AND CENTER
ARCHULETA SENATOR DODD.
WHAT IS USED TODAY IN A LOT OF
DIFFERENT?
BELIEVES THAT HAVE A LOT OF
MOVING PARTS IN THE CERTAINLY IS
ONE OF YEAH I'VE GOT A LOT OF
PROBLEMS -- YOUR QUESTIONS --
THAT PRESUMABLY BEEN ANSWERED
BUT YET THE THE BIG QUESTION.
I THAT'S NOT A ANSWERED THAT
CAN'T BE ANSWERED IS.
YEAH WHAT IS THE LIKELIHOOD.
YO OF THAT EVENT THERE COULD
TRIGGERED THESE ASSESSMENTS --
ONE SIDE OF ME.
YES CERTAINLY I HAVE A LOT OF
FAITH AND TRUST AND THE PEOPLE
THAT TO OUR RUNNING -- THIS BILL.
CLEARLY SENATOR HERTZBERG --
INTO ONE PART OF ME WANTS -- TO
YOUR VOTE FOR THIS TO ALLOW THEM
TO CONTINUE THE DISCUSSION.
WITH THE INSURANCE COMPANIES.
BUT YEAH.
OR IF IF THESE ISSUES ARE NOT
TAKEN CARE OF YEAH I CERTAINLY
RESERVE THE RIGHT TO CHANGE MY
MIND AND SAY HEY.
WE JUST DID THAT GET THERE.
AND BELIEVE ME.
WITH BIG IDEAS A BIG ISSUES LIKE
THIS.
YOU NEED MORE TIME.
ANY -- I DON'T KNOW WHY IT IS
BUT YOU KNOW WE IT WAS WE WERE
AROUND HERE AND FOR THE FIRST
TWO AND A HALF MONTHS OF THE
LEGISLATIVE YEAR AGO DO A HELL
OF A LOT.
THEN IT ALL COMES IN AT THE AD
AND WE'RE EXPECTED TO MAKE THESE
DECISIONS AND YEAH -- IN -- A
VERY VERY QUICKLY AND THAT IS
VERY CONCERNING TO ME.
BUT I I KNOW.
THAT -- I MAY BE COMING TO THE
TABLE -- WITH -- A PROGRAM
BEFORE JULY TENTH WORKING WITH
THE GOVERNOR THAT MAY INCLUDE
SOMETHING JUST LIKE THIS THE
INSURANCE COMPANIES ARE NOT
GONNA LIE.
AND THEY'RE GOING TO RESIST YEAH
AND I'M GONNA WHAT THIS GUY'S
VOTE.
ALLOW US TO CONTINUE MOVING
FORWARD.
SO THAT WE CAN GET TO THE RIGHT
PLACE TO PROTECT CALIFORNIANS
AND THEIR RATES.
SO IT'S NOT ALWAYS ABOUT YOUR AT
THE END OF THE DAY WE'VE GOT TO
PAY YOU KNOW THAT WERE YOU KNOW
WERE ULTIMATELY GONNA.
GO PAY MORE I SO I CAN THAT'S MY
OFFICE BUT NOW I WANT TO ASK A
COUPLE QUESTIONS IF I MAY MISTER
CHAIR -- TO THE INSURANCE
COMPANIES.
I DO YOU GUYS VALUE TEN BILLION
DOLLARS AT WHICH I UNDERSTAND --
OVER TEN YEARS.
ALL RIGHT THAT'S ONE BILLION
DOLLAR ONE BILLION DOLLARS OVER
TEN YEARS WHICH I UNDERSTAND A
LOT OF WHICH IS GOING.
IT'S WE ONLY INSURE 13%. FOR
EARTHQUAKE INSURANCE IN THE
STATE OF CALIFORNIA.
WE'VE GOT.
SOME PERCENTAGE OF THAT ONE
BILLION DOLLARS A LARGE PORTION.
IT'S GOING.
TO YOUR CLIENT YOUR CLIENTS
CLIENTS IF YOU WILL [inaudible]
THAT.
WE'LL MAKE YOUR CLIENTS PAY LESS
MONEY.
I YELL AT THE END OF THE DAY
BECAUSE THEIR HOMES.
I HAVEN'T GOTTEN THE BRACING AND
THE BOLTING THAT THEY NEED -- DO
VALUE THAT AT ALL.
WE FROM.
HIM AGAIN JOHN OR WOULD FOR THE
INDEPENDENT TURNS AGES SOCIAL
ASIAN I THINK WE LIKE VERY MUCH
THE RESEMBLE PROGRAM I THINK WE
WOULD.
SUPPORT OF NOW FIRE RETRO OF THE
PROGRAM DONE THE RIGHT WAY AND
YOU KNOW THERE'S A THERE'S A LOT
OF THINGS TO TALK ABOUT I MEAN.
TO IT WE DO WE HAD A BLUE SKY
SESSION LAST NIGHT.
DO A LOT OF THINGS ON THE TABLE
THIS IS A IT'S A TOUGH POSITION
TO BE IN BECAUSE ON ONE HAND
OBVIOUSLY WE RESPECT MR
HERTZBERG.
AND WE KNOW THE YEAH THIS IS A
VERY COMPLEX JUST DISCUSSION
THERE'S A LOT OF BALLS KIND OF
IN THE AIR HERE ON THE AND SO.
YOU KNOW WE'VE INDICATED WE
CONTINUE ROLE THIS BILL MOVES
TODAY WERE CONTINUE TO TRY TO
WORK ON THIS THING.
IN ANSWER TO YOUR QUESTION
SENATOR ABOUT IS THERE ONE
AMENDMENT NOW THERE'S I MEAN I
DON'T THINK THERE'S ONE
AMENDMENT OTHER THAN DON'T.
ASSESS ALL THE CENTERS OF BUT
HERE THE SAME TIME I DON'T WANT
TO SIT HERE AND YEAH LESSEN THE
SERIOUSNESS THE HEY YOU KNOW
IT'S UP THAT MY CLIENTS FEEL --
PART OF AS INSURANCE AGENTS AND
BROKERS AS A SURPLUS LINES
BROKERS AND THINGS LIKE THAT.
ON IT WOULD.
HOW TO TAKE CARE OF THEIR
CLIENTS I MEAN SO MOST OF OUR
AGENTS MAY BE RIGHT 30% --
PERSONAL LINES INSURANCE THE
REALLY HEAVY AND AND COMMERCIAL
LINES THERE'S NO NEXUS THE SAME
COMMERCIAL LINES AT ALL -- YOU
MAY BE THERE WOULD BE FOR
COMMERCIAL HAVE JUST FOR INFO
COMMERCIAL PROPERTY OR MAYBE IF
YOU KNOW THINGS LIKE THAT
THERE'S YEAH THERE'S A CERTAIN.
THINGS TO THINK ABOUT HERE I
HOPE THAT ANSWERS YOUR QUESTION.
REALLY GREAT LET ME JUST YEAH.
SO CAME SHARES ARE SO YOU'VE
IT'S SO ESSENTIALLY YOU'RE
REPRESENTING AGENTS AND BROKERS
WHAT ABOUT THE INSURANCE
COMPANIES THEMSELVES.
DO THEY VALUE.
THIS IDEA THAT THE BRACE BOLT
PROGRAM IS IS -- I TAKING CARE
OF PROBLEMS THAT COULD COST THEM
A LOT OF MONEY IF THAT.
CATACLYSMIC EVENT -- TRANSPIRE.
SHERRI MCCUE REPRESENT PACIFIC
ASSOCIATION DOMESTIC INSURANCE
COMPANIES WE REPRESENT THE SMALL
TO MEDIUM SIZED MESSICK
INSURANCE COMPANIES IN THE STATE.
THAT WE CALL OURSELVES THE HOME
TEAM WE WERE THE ONES THAT WERE
HERE IN NINETEEN NINETY FOUR
FOLLOWING NORTH NORTHRIDGE WHEN
THE BIG CARRIERS.
PUT A MORATORIUM ON NEW
HOMEOWNERS BUSINESS BECAUSE OF
THE EARTHQUAKE OFFER -- MY FOLKS
FEEL VERY STRONGLY THAT YES THEY
DO SO MAYBE THEY'VE EMBRACED
EMBRACEABLE PROGRAM BUT THEY
ALSO FEEL VERY STRONGLY THAT
THIS IS A COMPETITIVE ADVANTAGE
THAT THE BIGGER CARRIERS GET
OVER THE SMALL TO MEDIUM SIZE
CARRIERS THAT ARE.
COMMITTED TO THE STATE OF
CALIFORNIA THEY DON'T HAVE A
CHOICE TO PULL OUT OF THE STATE
FOLLOWING A CATASTROPHE AND
RIGHT BUSINESS AND FORTY OTHER
NINE STATE TO STAY IN BUSINESS.
MY CARRIERS HAD TO STAY IN
BUSINESS AND CONTINUE TO WRITE
BUSINESS -- ON A DAILY BASIS
FOLLOWING NORTHRIDGE WERE THEY
SUPPORTIVE OF THE CREATION TO
SEE A YEAH IT'S STABILIZE THE
HOMEOWNERS MARKET FOR SURE.
BUT THEY WERE ALSO VERY
COGNIZANT OF THE FACT THAT IT
ALSO MADE THE BIGGER CARRIERS
MORE COMPETITIVE.
THAT WOULD SEE A JUST ANNOUNCED
A RATE DECREASE IN DECEMBER.
AND MY CARRIERS.
IT TOOK NOTICE OF IT FOR CERTAIN
THE UNDERSTAND THAT THE C. A.
WAS CREATED TO STABILIZE THE
HOMEOWNERS INSURANCE MARKET
PLACE AND IT WORKED AND WE ARE
VERY HAPPY ABOUT THAT WE'RE
THRILLED THAT THEY'RE ABLE -- TO
WORK ON THE THE BRACE SYMBOL
PROGRAM IT DOES HELP ALL PEOPLE
IN CALIFORNIA BUT WE ARE VERY
CONCERNED ABOUT THIS NEW NOTION.
OF CHANGING TWENTY TWO PLUS
YEARS OF KIND OF A DEAL BETWEEN
THE NON PARTICIPATING INSURERS
AND THE PARTICIPATING ANSWERS AS
I MENTIONED IN MY TESTIMONY WE
WHEN WE CREATED THE SEE A I WAS
HERE FOR WE'VE MADE IT VERY
CLEAR THAT THE FOUR WALLS AROUND
THE C. E. A WERE.
DESIGNED TO PROTECT BOTH
PARTICIPATING INSURERS AND NON
PARTICIPATING INSURERS
PARTICIPATING INSURERS DO NOT
WANT NON PARTICIPATING INSURANCE
POLICY HOLDERS ENTERING THE C.
E. A THROUGH THOSE FOUR SOLID
WALLS THAT WERE BUILT. TO
PROTECT THE P. EYES BUT NOW THE
P. EYES ARE CA ARTS TRYING TO
COME OUT FROM OVER THE FOUR
WALLS INTO THE NON PARTICIPATING
ENSURE SPACE. FOR THEIR BENEFITS
AND FOR THE BENEFIT OF THE CA
AND GRANTED THE BENEFIT OF
OTHERS THAT CAN EMBRACE YOU KNOW
BE PART OF RECENT POLLS.
BUT IT IS BEYOND JUST BRACING
BOLD IN MY CARRIERS OPINIONS ARE
BECAUSE IT'S REALLY A NEW
PRESIDENT AND SOMETHING IT TOOK
US YEARS TO CREATE THE CA SIX
TWO YEARS REALLY.
THREE QUITE FRANKLY TO REALLY
CREATE IT AND GET IT BUILT AND
OUR BIGGEST CONCERN WAS THE
EARTH WAS GONNA SHAKE ON DAY ONE
AND WE'VE BEEN LUCKY ENOUGH THAT
HAS NOT WHERE YOU'RE REALLY
SAYING IS.
IS ME IS THE BENEFIT.
OF THE BRACE AND BOLT.
DOESN'T COMPARE WITH WHAT YOU
FEEL THAT THAT.
THE NEGATIVE DOWNSIDE WOULD BE
OF THE SENTENCE.
SOMEHOW BREAKING THE CORNERSTONE
OF THE FOUR WALLS.
THAT IS CORRECT [inaudible]
HEY.
I I GUESS I I GUESS I'VE I'VE
GOT SOME ISSUES WITH -- THE FACT
THAT.
NO I I WE STILL -- KNOWS 87% OF
THESE FUNDS GOING TO NOT SEE A A
CUSTOMER.
BUT WE WERE AT THE UP SEVENTY
SEVEN SEVENTY EIGHT HUNDRED
HOMES RETROFITTED SIX THOUSAND
THEM HAVE BEEN TO NON C. PLUS
CUSTOMERS.
BUT BUT THAT DOESN'T MEAN THAT
IT'S GOING.
TO OUR NON PARTICIPATING
INSURANCE.
EARTHQUAKE POLICY HOLDERS THESE
IS CERTAINLY COULD THERE'S NO
RESTRICTION WHATSOEVER ABOUT WHO
HAS THE HOMEOWNER'S POLICY IT
WOULD TOTALLY GNOSTIC ABOUT THAT
RIGHT BUT YOU TO DO THAT.
DO YOU KNOW WITH IF THEIR
HOMEOWNER'S INSURANCE.
IT'S WITH A PARTICIPATING
INSURER NON PARTICIPATING
INSURERS THAT QUESTION I DON'T
CAPTURE THAT INFORMATION WE
DON'T WE DON'T CARE WHO'S
INSURERS IT RIGHT WITH THE WITH
THAT YOU JUST KNOW THEY DON'T
HAVE EARTHQUAKE WAS CA.
YES THAT SIX THOUSAND ON FM NO
WAY BRING IT BACK TO THE
COMMITTEE I'M SORRY TENER BUT I
WANT TO MAKE SURE THAT YOU HAVE
YOUR QUESTIONS ANSWERED.
THANK YOU SIR.
OUR NEXT WE'RE GONNA GO TO
SENATOR BRIDGES PLEASE. THIRTY
SPOKE -- IS THE BRAZEN BOLD
PROGRAM -- MANDATORY.
IT'S NOT.
AND THAT SEEMS TO BE BASED ON
THE QUESTIONS I HEARD FROM
CENTER -- GLAZER AND MAYBE
CENTER ROTH.
TO IS THAT ONE OF IS THAT THE
MOST IMPORTANT OBJECTIVE.
OF FOR YOU US HERTZBERG YES ALL
RIGHT.
SO.
THIS IS NOT QUITE THE ON POINT
BUT WE'VE A NITRATE PROBLEM.
IN THE VALLEY.
AND ONE OF THE ISSUES THAT WE
HAD IS SEPTIC SYSTEMS IN LEAKAGE
AND SO ON AND SO FORTH.
SO THE PROGRAM THAT WAS PUT
FORWARD -- WAS REALLY QUITE
SIMPLE THAT THIS WAS A
COLLECTIVE PROBLEM -- EVEN
THOUGH IT INDIVIDUAL HOMEOWNERS
WERE RESPONSIBLE FOR LEAKAGE AND
SO ON AND SO FORTH.
AND SO HOOKING UP TO A MAIN LINE
AS OPPOSED TO A SEPTIC SYSTEM
WAS THE OBJECTIVE HOW DID YOU
ACHIEVE THAT IN AN EQUITABLE WAY --
THAT -- MADE THAT THREE TO FIVE
THOUSAND DOLLAR.
PRICE TAG PALATABLE WHICH SOUNDS
LIKE YOUR BRACE PROGRAM IS
AROUND THAT YES.
GIVE OR TAKE.
THE BILL THOUGH [inaudible]
WHAT'S THAT.
BUT IF YOU LAST YEAR OKAY
[inaudible]
YOUR MIND.
I GUESS THE IDEA WAS IS THAT IF
WE GAVE -- INDIVIDUALS THREE TO
FIVE YEARS.
MAYBE SOME MEASURE THE FINANCING
MECHANISM IF NECESSARY.
OR UPON A PURCHASE A TRANSFER OF
TITLE.
THAT IT BE MANDATORY THAT YOU
HAVE A RETROFIT IS THIS OLD.
GARBER FOR YOU YOU MENTION YOU
DID SOMETHING LAST YEAR ON THIS
[inaudible]
OKAY.
SO HOW IS THAT NOT ACHIEVING
WHAT YOUR GOAL IS. FOR LEASE
PART OF THIS AT LEAST PART OF
THIS PROGRAM.
WE HAVE 13% OF THE PEOPLE IN
CALIFORNIA [inaudible]
EARTHQUAKE POLICIES.
WE HAVE AN EVENT THAT NOT WE
LIVE IN THE FOREST 83% OF
CALIFORNIANS LIVE IN EARTHQUAKE
ZONES.
WE KNOW THAT PEOPLE WHEN THEY
DON'T FEEL THE PRESSURE DON'T
WRITE THE CHECK.
OUR JOB IN GOVERNMENT IS TO GET
AHEAD OF THAT GAME. FOR FREE FOR
FOLKS AND PEOPLE OF ALL SORTS OF
OTHER PRESSURES OF THEIR LIVES
AND COST OF THE THINGS THAT
THEY'VE GOT TO PAY.
BUT THEN WHEN THEY FAIL TO COVER
WE HAD TWENTY TWO THOUSAND
PEOPLE THAT HOMES IN THE SAN
FERNANDO VALLEY DURING THAT
EARTHQUAKE.
WE EACH EXTRAORDINARY I LIVE
THROUGH IT.
AND IN OTHER WORDS AND SO THE
QUESTION HERE IS IT'S EASY TO
SIT BACK AND ANALYZE IT'S HARD
TO PUT THE THERE'S NO
CONSTITUENCY FOR THE FUTURE.
EVERYBODY WHO'S GOT A CHECKBOOK
IN THE PASTOR ASPECT AT YOUR
BILL SOMEBODY'S GONNA WANT TO
KEEP THOSE REVENUE STREAMS OUR
JOB IN THE PUBLIC INTEREST IS TO
THINK IT THROUGH IN A BIGGER WAY
ALLAH DRESS OR MORE LOCKS IN MY
CLOTHES.
POINTS IN MY CLOTHES BUT BUT
CLEARLY THE IDEA IS TO TRY TO
GET IS BEHIND IT LITERALLY IF
YOU CAN GET TWENTY TWENTY FIVE
THOUSAND HOMES A YEAR BASS AND
BULL AND WE HAVE A TEN YEAR
EVENT TO RISE AND THIS IS A
SIGNIFICANT IMPACT ON MITIGATING.
COSTS ASSOCIATED WITH WITH
WHAT'S GOING TO HAPPEN IS
SOCIETY BECAUSE WHAT'S GOING TO
HAPPEN IS JUST LIKE EVERY IS
WORD -- MIKE AUTUMN WAS GONNA
PLANE I GOT FIFTY DOLLARS MORE
ON MY WHATEVER MY TH POLICY IS
TO GET A PLAN PLANE THE
GOVERNMENT A LOT MORE WHEN
THEY'RE WET WHEN THEY'RE
COMPOUNDS ARE COMPLETELY
DESTROYED.
BUT ALL THESE OTHER THINGS OCCUR
AND WE'RE GOING TO SIT THERE AND
TRY TO FIGURE IT OUT AND THE
MORE WE CAN DO TO MITIGATE THAT
UP FRONT EARLY BEFORE THE
CATASTROPHE.
IS WHAT MOTIVATES ME TO PROPOSE
OPPOSE THIS BILL LYNN LIMIT.
OF FINISH WITH THIS.
YOU A THOUGHT THAT THIS WOULD BE
A POLICY.
OR PROGRAM THAT WOULD BRING
ABOUT YOUR DESIRED.
OUTCOME AND IT'S NOT HAPPENED.
ANOTHER THE BASEBALL PROGRAM
THAT EXISTS IS VERY MINIMAL AND
ONLY DOES COUPLE THOUSAND A YEAR
I WANT TO EXPAND ITS TWENTY FIVE
THOUSAND YEARS SO WE CAN WITH
THE SAVINGS TO MAKE THAT HAPPEN.
NO I I GUESS THE WHERE'S THE
OWNERS THE IDEA THAT WE HAD IN
THE VALLEY WAS THE ONUS WAS ON
THE HOMEOWNER. TO BRING UP
THEMSELVES ESSENTIALLY UP TO
CODE IF YOU WILL.
IS THAT NOT SOMETHING THAT YOU
CONTEMPLATED OR MAYBE DISCARDED
IT BUT WHEN YOU DO CALL TO PLAY
WAS THAT SOMETHING THAT YOU
FOUND ON STUFF LIKE THAT I
CONTEMPLATED THE FACT THAT.
WITHOUT IMPOSING UPON OTHER
IMPORTANT CRITICAL FUNCTIONS OF
GOVERNMENT TO ASK FOR BILLIONS
OF DOLLARS THERE WAS A WAY TO
MAKE THAT WORK AND I'LL EXPLAIN
IN MORE DETAIL ON MY CLOTHES TO
RESPOND MR MORLOCKS
SENSITIVITIES.
OKAY FROM FROM MY PERSONAL IN
RIGHT HERE IS THAT -- I'M GONNA
HOLD OFF ON VOTING BECAUSE I
WANT TO SEE WHERE YOU GO WITH
THIS I DON'T NECESSARILY WANT TO
SAY NO THIS IS NOT HOLD OFF FROM
VOTING I MAY NOT BE ABLE TO GO
ANYWHERE.
RIGHT -- I'D LIKE TO SEE YOU --
WE'RE FURTHER DISCUSSIONS TAKE
THIS SO WE'LL SEE HOW THE OTHER
VOTES LINE UP BUT I'D LIKE TO
SEE HOUSES YOU HAVE IN HIS
DISTRICT WE SEND THE MOMENT WAS
THAT THE TO GET IT DID YOU KNOW
YOU DON'T A BRACE IN BOTH THEIR
HOMES.
OKAY.
SO THANK YOU VERY MUCH RIGHT NOW
WE HAVE MR CHILENA YOU HAVE
FURTHER QUESTIONS.
WE GO BACK TO SHELVE IT.
EARLIER.
IF WE DON'T DO IT NOW.
WHEN?
IF WE DON'T DO IT NOW WHEN.
AND IF WE DO IT HYPOTHETICALLY
TEN YEARS FROM NOW WHEN IT KICKS
IN -- A HUNDRED YEARS FROM NOW
WHEN IT KICKS IN.
AND YOU'RE SAYING THAT'S TOO
LATE HOW HOW WAS THAT TOO LATE
IF WILL BECAUSE IF I CAN'T COME
IN AND WE COULD START THIS NOW
CENTER HYPOTHETICALLY AND WE
COULD BOTH BRACED TWENTY FIVE
THOUSAND HOMES.
AND LET'S ASSUME AT TWENTY FIVE
THOUSAND HOMES A YEAR RIGHT TEN
YEARS TO EARN FIFTY THOUSAND AND
KEPT IN IN TWENTY YEARS IS FIVE
HUNDRED THOUSAND HOMES WE HAVE
LITERALLY CUT IN HALF THE DAMAGE
IS GOING TO BE DONE BY A BIG
EARTHQUAKE.
BECAUSE WE'RE DOING PREVENTATIVE
MEASURES LIKE GOING OUT AND
SPENDING MONEY TO CLEAR I HELD A
BIG HEARING WHEN I WAS CHAIRMAN
OF NATURAL RESOURCES.
TALKING ABOUT CLEARING OUT THE
TREES NO ONE WANTED TO PAY
ATTENTION NOW ALL OF A SUDDEN
THE TREES ARE BURNING AND
EVERYBODY'S SAYING ALL MY GOD
LET'S PUT BILLIONS TO IT WE
COULD SPEND TEN CENTS ON THE
DOLLAR TO DO WHAT WE WERE
TALKING ABOUT -- INFORMATIONAL
HEARING THAT'S WE'RE TRYING TO
DO HERE.
IT'S HARD TO HAVE A CONSTITUENCY
FOR THE FUTURE BECAUSE WE'RE
TRYING TO BE PREVENTIVE AND IT'S
EASY TO THROW ROADBLOCKS BUT IF
YOU HAD A HALF A MILLION HOMES
THAT WERE BRACING BOLD OR SOME
APARTMENT BUILDINGS ALIKE.
THE DAMAGE THAT WOULD BE DONE IN
THOSE EARTHQUAKE WRITTEN AREAS
WOULD BE DRAMATICALLY LESS AND
PEOPLE WOULD BE LESS IMPACTED IN
TERMS OF THEIR LIVES THAT'S ALL
WE'RE TRYING TO DO WITH THIS
MEASURE [inaudible]
THANK YOU.
I BELIEVE NEXT OF MISTER
PORTANTINO IS HE STILL HERE YOU
HAD SOME QUESTIONS THANK YOU.
THIS IS THE VERY VERY.
THOROUGH CONVERSATION OBVIOUSLY
THERE'S A LOT OF WORK TO DO
TODAY I'M GONNA SUPPORT.
THE CHAIRS AYE RECOMMENDATION
BUT OBVIOUSLY AS THIS MOVES INTO
A PROBE THERE'S A LOT OF WORK TO
BE DONE.
AND WE'RE GONNA BE LOOKING AT
THE OVERALL FISCAL IMPACT AND
I'LL BE WORKING WITH THE WITH
THEAUTHOR AND EVERYONE --
BECAUSE I YOU KNOW IT'S NOT NOT
COOKED YET BUT NOW WILL CONTINUE
THE CONVERSATION BUT DO MORE
WORK SO JUST RESERVE THAT RIGHT
THANK YOU MISTER CHAIRMAN TELL
YOU I TELL EVERYBODY I KNOW
CENTER DOGS OUT HERE WAS HERE
NOW.
IN OUR CHIRLA **** THAT.
I'M NOT GONNA MOVE THIS BILL
FORWARD ON TO THE FLOOR IF IT'S
A TAX WITH ISSUE NUMBER ONE AND
NUMBER TWO IF THE SUBSTANTIAL
QUESTIONS AREN'T OTHERWISE
ANSWERED.
TRYING TO DO I THINK A
RESPONSIBLE THING I WANT TO
CONTINUE THE DISCUSSION IF I HAD
A HORRIBLE MEETING LAST NIGHT
WITH THE INDUSTRY FOLKS I FELT
THERE WAS NO HOPE.
BUT WE DISCUSSED A NUMBER OF
THINGS IT'S NOT EASY -- BUT OKAY
IT'S NOT EASY LET'S FIGURE IT
OUT AND LET'S DEAL WITH THE
ISSUES THAT CENTER MORLOCK HE'S
CORRECT HE DEALT WITH THIS IN
ORANGE COUNTY I DON'T THINK IS
ANALYSIS WORKS HERE.
AND I'LL HAVE A CONVERSATION
OFFLINE BECAUSE WE SPEND TOO
MUCH TIME IN THIS HEARING
ALREADY BUT I JUST WANT TO BE
ABLE TO HAVE THOSE CONVERSATIONS
I THINK IT'S A I THINK THESE
PEOPLE ARE PROFESSIONAL.
I THINK THE ORGANIZATION IS
WORTHY I THINK YOU CAN PUT THE
CHECKS AND BALANCES IN THEIR
NECESSARY THAT EVERY QUESTION
HERE THAT WAS ASKED.
I CERTAINLY HAVE CONFIDENCE IN
THE ADVOCATES THAT ARE OPPOSING
THEY'RE GREAT THE HONORABLE
PEOPLE AND I THINK THE REAL
ISSUES THAT THEY RAISED I CAN
SEE SOLUTIONS FORWARD.
IT DOESN'T HAPPEN IT DOESN'T
HAPPEN BUT I JUST THINK IT'S OUR
OBLIGATION TO GIVE IT A SHOT AND
AND AND I I DON'T THINK I WOULD
SAY IT WOULD SENATOR GLAZERS
SAID WHICH I I JUST DON'T FEEL.
AN EINER SO HE SAYS ON THE
PRESSURE STUFF BECAUSE THIS IS
AN ORGANIZATION ALREADY EXIST
THAT'S BEEN THINKING THIS STUFF
THROUGH IN A SIGNIFICANT WAY.
AND I FEEL PRETTY COMFORTABLE
AND I I'VE BEEN I'VE BEEN
SPENDING WHAT SIX MONTHS ON THIS
THING PROBABLY IN PRETTY
SIGNIFICANT AND HARSH DETAIL.
GIVEN THEM A PRETTY SIGNIFICANT
HAIR CUT AS SOME OF YOU PEOPLE
RECORD -- EVIDENCE YOU TO DO
THAT I WOULDN'T GOING TO TAKE
THIS BILL IN THE SEA THE IT GAVE
ME CONFIDENCE.
THAT I THOUGHT THAT THERE WAS A
WAY FORWARD QUESTIONS YOU'RE
TOTALLY REASONABLE -- AND I HAVE
NO QUARREL WITH THAT AND IF IT
DOESN'T WORK IT DOESN'T WORK
THAT'S WHAT LIFE'S ABOUT YOU
GIVE IT A SHOT.
BUT I DO WANT THE OPPORTUNITY TO
GIVE IT A SHOT AND I COMMIT TO
YOU THAT I AM GOING NO WHERE
WHETHER IT'S APPROPRIATIONS
PASSED OR TO THE FLOOR TO PUT
ANYBODY IN HARM'S WAY PARTICULAR
TAX MEASURE THAT WON'T HAPPEN.
AND SO WE HAVE MISTER JOHNS.
THANK YOU MA'AM TURN AND THANK
YOU FOR YOUR CLOTHES THIS IS
JUST A RECOMMENDATION FROM THE
VICE CHAIR TO THE COMMITTEE.
YOU KNOW THERE'S A COUPLE THINGS
I KNOW NUMBER ONE I KNOW THAT
SOONER HERTZBERG IS AN HONORABLE
PERSON WHEN HE SAYS HE'S GONNA
WORK ON SOMETHING HE TO WORK ON
SOMETHING AND ISN'T DOING HE
SAYS -- A BUT THIS IS THE PROPER
VENUE TO HAVE THAT CONVERSATION --
THE INSURANCE COMMITTEE THE
CONSULTANTS IN THIS COMMITTEE
OUR IS THE PROPER VENUE TO HAVE
THAT CONVERSATION -- ICE.
THINK THAT THERE CAN BE A
SOLUTION WORKED OUT -- ONE OF
THE THINGS I ALSO KNOW FROM MY
EXPERIENCE IN THE LEGISLATURE IS
BIG IDEAS -- REQUIRE
[inaudible]
GOOD CONVERSATION.
AND ONE BIG IDEAS ARE RUSHED
THROUGH EITHER HOUSE.
THE RUSH THROUGH INEFFICIENTLY
THEIR RUSHED THROUGH WITH.
MISTAKES THERE RUSHED THROUGH --
NOT BUILDING THE CONSENSUS THAT
YOU NEED TO HAVE A GOOD IN THE
PRODUCT.
SO I ALWAYS LIKE JUST TRY TO
START.
WITH THE END IN MIND IN THE END
IS WE WANT TO GET A GOOD BILL WE
ONE HAVE A GOOD PRODUCT -- SO
I'M GONNA RECOMMEND TO MY
COLLEAGUES ON BOTH SIDES THAT --
EITHER VOTE NO.
OR HOLD OFF ON THE BILL.
A ALLOW SOONER HERTZBERG TO WORK
WITH THIS COMMITTEE THE
CONSULTANTS IN THIS COMMITTEE I
TO GET A BILL THAT -- MAKES
SENSE AND THAT WE CAN HOPEFULLY
ALL SUPPORT.
I WHEN IT GOES TO APPROPRIATIONS
AND THE FLOOR -- THANK YOU THANK
YOU.
ANY MORE QUESTIONS.
LIKE MAKE ANOTHER COMMENT
AGAINST A THANK YOU AND AND I
LEARNED FROM A A VERY -- BRIGHT
INDIVIDUAL AND SAID BOB ARCHER
LEAD WHEN YOU GOT ON BOARD
ALWAYS REMEMBER YOUR DISTRICT.
AND WHICH I HOPE YOU COME
TOGETHER IN SOME WAY BECAUSE UP
WITH TEARS IN MY DISTRICT WE HAD
THE WHITTIER EARTHQUAKE.
AT THAT'S IMPORTANT BUT I I
STILL THINK THAT THERE'S SOME
ISSUES THERE THAT YOU YOU HAVE
YOU GOT TO BRING TOGETHER.
AND AND SO AND I DON'T THINK
YOU'RE DONE YET.
SO I I DON'T WANT TO VOTE NO --
TOTALLY BUT I I I WANT YOU TO
GET BACK TOGETHER SO THE ONLY
WAY YOU'RE GONNA DO THAT.
IS TO TAKE THIS FORD WITH THE
AGREEMENT THAT YOU'RE GOING TO
MEET AGAIN AND AND COME BACK.
AND HOWEVER THAT'S DONE -- I I
THINK -- AND THEN I CAN BE
SUPPORTED.
THANK YOU AND MORE COMMENTS.
SO WITH THAT I WILL SAY -- I DO
APPRECIATE THE LIVELY DISCUSSION
KERRY THERE'S A LOT OF CONCERNS
I THINK I'LL SAY IT -- I REPEAT
WHAT OUR AND GLAZER SAID THIS IS
AN ISSUE THAT'S VERY CHALLENGING.
A LOT TO WRAP YOUR HEAD AROUND
BUT I DO KNOW THE INTENT OF THE
BILL IS IS GOOD AND I KNOW MR
HERTZBERG IS VERY.
UP COMMITTED TO THE SAFETY OF
CALIFORNIANS AND I KNOW WHY
YOU'RE DOING IT BUT I'M ALSO
ENCOURAGED BY THE FACT THAT THE
UNITED SPEAK TO BOTH SIDES.
THAT THEY'RE STILL TALKING AND
IT WAS A VERY PRODUCTIVE MEETING
LAST NIGHT AND THEY'RE COMING
TOGETHER IN AGREEMENT AS TO HOW
THEY'RE GONNA MOVE BUT WE'RE NOT
WE'RE NOT THERE YET BUT BOTH
SEEM.
TO THINK THAT DOUBT WE'RE HEADED
IN A VERY POSITIVE DIRECTION --
YOU KNOW I DO HAVE CONCERNS
ABOUT THE TAX WHICH IS NOT TAX
BUT MISTER.
IN ORDER HERTZBERG DID EXPRESS
WANTING TO ADD LANGUAGE THAT
INCLUDES A WILL NOT MOVE FORWARD
UNTIL HE GETS ON A CLARIFICATION
FROM THAT'S COUNCIL THAT IT'S
NOT A TAX.
AND SO WITH THAT I WANT TO MOVE
FORWARD -- WOULD YOU LIKE TO
CLOSE I THINK WE DISCUSSED IT
PRETTY MUCH ASSESSMENT AYE VOTE
THANK YOU SO VERY MUCH.
THANK YOU IS THERE A MOTION. TO
ME THE BILL.
FOR THANK YOU SIR.
THANK YOU PLEASE CALL THE ROLL.
THE MISSION IS.
THE MOTION IS TO PASS AND RE
REFER TO SENATE APPROPRIATIONS
COMMITTEE RUBIO.
AYE RUBIO AYE JONES JONES NO
ARCHULETA [inaudible] EIGHT
GORGEOUS [inaudible]
DODD [inaudible]
GALGIANI [inaudible]
GLAZER [inaudible]
HUESO [inaudible]
MITCHELL.
MORE LOCK.
MORE LIKE NO PORTANTINO. TWENTY
I ROTH.
WE'RE GONNA PUT THE BILL ON CALL
THANK YOU VERY MUCH ALL. FOR A
DISCUSSION THANK YOU.
WE LOST ON AND THEN.
OR YOU CAN PERCENT [inaudible]
OKAY.
BECAUSE I WE DON'T HAVE AN
OFFICE.
THOUGHT I PUT A WHAT WHAT'S YOUR
I SEE SENATOR MITCHELL HAS JUST
ARRIVED.
WELCOME SENATOR MITCHELL THANK
YOU.
FOR SHOWING UP REALLY APPRECIATE
YOU COMING AND OF COURSE OUR
HONORABLE.
COMMISSIONER THANK YOU FOR BEING
HERE YOU MAY PROCEED.
SISTER WIVES.
WITH MY WORK WAY.
I DON'T KNOW WHAT THEY'RE
TALKING ABOUT MADAM CHAIR BUT
THANK YOU VERY MUCH THANK YOU.
GOING TO MAINTAIN MY
PROFESSIONAL THE CORE.
I'M SO.
I'M HERE TODAY COLLEAGUES TO
RESENT SENATE BILL SEVEN FORTY
THE UNCLAIMED LIFE INSURANCE AND
ANNUITIES ACT THIS MEASURE IS
REALLY ABOUT CONSUMER PROTECTION
MOST PEOPLE BUY LIFE INSURANCE
IN ORDER TO PROTECT AND CARE FOR
THEIR LOVED ONES WHEN THEY PASS.
THEY MAKE A SIZEABLE INVESTMENT
IN THE GOOD FAITH THAT THE
INVESTMENT WILL BE PAID OUT WHEN
THEY PASS ON IT MAY BE THE FACT
THAT THE INDUSTRY NORM IS TO
LEAVE THE RESPONSIBILITY OF
CLAIM AND INVESTMENT TO THE
STATE.
BUT MANY PEOPLE DO NOT FORMALLY
ESTABLISHED IN THE STATE MUCH
LESS HAVE AN ATTORNEY MANAGING
THEIR AFFAIRS.
THIS INDUSTRY NORM HAS PROVEN TO
BE UNFAIR UNSUSTAINABLE AND
FRANKLY BASE IN THE LARGE NUMBER
OF SUPPLEMENTS CITED IN THE
COMMITTEE ANALYSIS PERHAPS NOT
EVEN LEGAL.
SB SEVEN FORTY ESTABLISHES THE
MINIMUM EFFORT ON THE PART OF
THE INDUSTRY THAT THE FEEL A
REASONABLE EXPECTATION TO THE
CONSUMERS.
THE BILL REQUIRES LIFE INSURANCE
HEARERS. TO CHECK THE NATIONAL
DEATH MASTER FILE IN ORDER TO
INFORM BENEFICIARIES OF BENEFITS --
TO THEM.
SPECIFICALLY IT REQUIRES
INSURERS TO DO THREE THINGS
NUMBER ONE IDENTIFIED DECEASED
INDIVIDUALS WHO HAVE BEEN THE
FISHERIES IN ACCORDANCE WITH THE
TERMS OF LIFE INSURANCE POLICIES.
ANNUITIES CONTRACTS OR RETAINED
ASSETS ACCOUNTS.
NUMBER TWO TO LOCATE
BENEFICIARIES OF THOSE DECEASED
INDIVIDUALS AND PROVIDE
APPROPRIATE INSTRUCTIONS FOR
THEM TO MAKE A CLAIM.
AND THIRD THE BILL IS THE RESULT
OF WORK DONE ON THE ISSUE OF
UNPAID LIFE INSURANCE POLICIES
OVER SEVERAL YEARS BY THE
NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS.
THE NATIONAL CONFERENCE OF
INSURANCE LEGISLATORS SEVERAL
STATE CONTROLLER'S OFFICES AND
THE CALIFORNIA DEPARTMENT OF
INSURANCE.
THE AREA'S VERSIONS OF THIS WILL
HAVE PASSED AND STAY IN ACROSS
THE NATION MEMBERS CAN WE GIVE
MISS MITCHELL SOME RESPECT THANK
YOU.
THE SOLUTION WE ARE PROPOSING
TODAY IS NEITHER NEW NOR
UNFAMILIAR TO THE LIFE INSURANCE
INDUSTRY.
WE ARE WORKING CLOSELY WITH THE
STAKEHOLDERS IN ORDER TO ADDRESS
SOME OF THE CONCERNS EXPRESSED
AND I RESPECTFULLY ASK YOUR AYE
VOTE.
TODAY WITH ME HERE WITH ME TODAY
IS INSURANCE COMMISSIONER
RICARDO LARA.
WHO -- WILL PROVIDE COMMENTS IS
AS WELL AS ANSWER ANY AND ALL
TECHNICAL QUESTIONS YOU MAY HAVE.
I ASKED FOR AN AYE VOTE.
MADAM CHAIR I MOVE THE BILL.
IS THERE ANY OPPOSITION
[inaudible]
THEKNOT.
WE HAVE ARE THE BILL MOVED BY
MISTER [inaudible]
PLEASE WRITE.
WHAT HAPPENS WHEN YOU PICK THE
RIGHT OUR MISSION I WOULD LIKE
TO SPEAK OR YOU JUST HEARD
ANSWER ANY QUESTIONS?
YOU WANT TO TALK THIS OUT OF IT
I JUST WITH US AS WELL THANK
CENTER MITCHELL.
FOR HELPING WITH WITH THIS
IMPORTANT BILL WE'VE HI THIS IS --
A PRODUCT OF A LONG
INVESTIGATION AND WE SHOULD JUST
THINK PEOPLE THAT HAVE -- TAXES
AND HAVE THE RIGHT TO BE
NOTIFIED THAT THERE IS A POLICY
OUT THERE THAT THEY ACTUALLY GET
WHAT THEY DESERVE SO I
APPRECIATE -- SENATE MITCHELL
AND THE WORK OF THE COMMITTEE
APPRECIATE AND ASK FOR DOUBLE.
THANK YOU IN MY APOLOGIES OF
COURSE YOU'RE THE BOSS OF BOSSES
WHEN IT COMES TO INSURANCE SO.
BUT I WILL I WILL -- BUT DOES SO
WE DO HAVE A MOTION.
BY.
MISSION IS TO PASS AND RE REFER
TO SENATE APPROPRIATIONS
COMMITTEE RUBIO AYE RUBIO AYE
JONES.
JONES I ARCHULETA. EIGHT FOUR GS
DODD GALGIANI LEISURE.
LEISURE I HUESO.
MITCHELL.
MITCHELL AYE OR LOCK
[inaudible]
I MITCHELL I MORE LACK
PORTANTINO.
PORTANTINO AYE ROTH.
OKAY WE'RE GONNA PLEASE THE BILL
ON CALL THANK YOU MS MITCHELL
MADAM MEMBERS THANK YOU VERY
MUCH.
IN THIS IS YOU DEBATED MY BILL
LAST WEEK SO.
I AM YES AND I WILL JOIN YOU IN
A LITTLE WHILE [inaudible]
STILL.
I'M GOING TO HAND OVER THE GAVEL
AGAINST MISTER JOHNSON'S I HAVE
A BILL TO PRESENT MYSELF.
AND THEN ADD ON THE WE'VE GOT
DODD AFTER THAT RIGHT.
THE NEXT ITEM IS ITEM NUMBER
THREE I'M SORRY -- YEAH I DON'T
NUMBER THREE SENATE BILL FIVE
SEVENTY SENATOR RUBIO
[inaudible]
IN.
IS VERY POPULAR TODAY ANYWAY.
SOME WORK DONE WE'RE GETTING A
LOT OF WORK DONE.
YEAH WELL WELCOME THANK YOU.
I'M HERE TO PRESENT -- I'M PROUD
TO SIT ALONGSIDE OF COURSE MY
FRIEND COMMISSION ALLOWED TO
PRESENT SB FIVE SEVENTY THAT
WILL EXTEND THE CALIFORNIA LOW
COST MODEL SON SAID.
HE TWENTY TWENTY FIVE MODERNIZE
THE PROGRAM AND EXPAND ACCESS TO
STUDENTS FOR CLOSE TO TWENTY
YEARS LOW COST AUTO HAS PROVIDED
AN AFFORDABLE AUTO INSURANCE
PTION TO LOW.
INCOME INDIVIDUALS WHO MAY
OTHERWISE GO WITHOUT COVERAGE
OVER A HUNDRED AND FIFTY
THOUSAND PEOPLE HAVE USED THE
PROGRAM SINCE TWO THOUSAND AND
CLOSE.
TO TWENTY THOUSAND POLICIES ARE
ENFORCED TODAY I ACCEPT THE
AMENDMENT OFFERED BY THE
COMMITTEE SB FIVE SEVENTY WILL
ALIGN THE LOW COST AUTO PROGRAM
WITH CURRENT INDUSTRY PRACTICE
BY ELIMINATING.
THE GENDER DISTINCTION USE FOR
PER SEARCH CHARGING RATES AND
WILL ALLOW COMMUTING STUDENTS TO
APPLY FOR COVERAGE UNDER THE
PROGRAM.
ADDITIONALLY THIS BILL
SIMPLIFIES THE NOTICE GIVEN TO
CONSUMERS AND TAKE STEPS TO
PROTECT CONSUMER DATA BY
REMOVING THE PREFERENCE.
THAT A TAX RETURN BE USED TO
PROVIDE ELIGIBILITY.
THE BILL ALSO CODIFIES
DEPARTMENT REGULATIONS TO
INCLUDE EMANCIPATED SIXTEEN AND
SEVENTEEN YEAR OLDS.
AND FINANCIALLY INDEPENDENT
EIGHTEEN YEAR OLDS INTO THE
PROGRAM WITH ME TODAY.
AND SUPPORT I HAVE COMMISSIONER
RICARDO LARA CAN GOOD WHEN OF
PACIFIC PREFERRED INSURANCE AND
JOE SO VIELE FROM THE COALITION
FOR HUMANE IMMIGRATION RIGHTS
WITH THAT THANK YOU.
THE CENTER A MEASURE THANK YOU
MISTER LESTER AGAIN THIS IS A
VERY IMPORTANT PROGRAM FOR OUR
WORKING AND LOW INCOME CONSUMERS --
THE PROGRAM HAS BEEN A AS IN
EXISTENCE SINCE NINETEEN EIGHTY
NINE HELPING HUNDREDS OF
THOUSANDS OF LOW INCOME.
CALIFORNIANS OBTAIN A CAR
INSURANCE RESPECT ESCRIBO
[inaudible]
SUPPORT.
THANK YOU HI GOOD AFTERNOON VICE.
CHAIR JONES A MEMBERS OF THE
SENATE INSURANCE COMMITTEE MY
NAME IS KEN GOOD ONE NINE
MANAGING PARTNER OF PACIFIC
PREFERRED INSURANCE.
WE HAVE SERVED AS THE PRIMARY ON
LINE PRODUCER FOR THE CALIFORNIA
LOW COST AUTO INSURANCE PROGRAM
FOR THE PAST THREE YEARS.
AS A PRIMARY ONLINE PRODUCER WE
HAVE A SISTER COMES TUMORS TO
APPLIED ONLINE. TO FINISH IN THE
APPLICATION PROCESS AND
PURCHASING A POLICY WITHOUT
HAVING TO LEAVE THEIR HOME.
OR PLACE OF EMPLOYMENT.
DURING THIS TIME WE'VE HELPED
OVER TWELVE THOUSAND
CALIFORNIANS OBTAIN AFFORDABLE
AUTO INSURANCE WHO MAY NOT HAVE
OTHERWISE BEEN ABLE.
TO IF IT WASN'T FOR THIS PROGRAM.
FOR THE MANY THAT WE SPEAK WITH
DALY THIS PROGRAM ALLOWS HIM TO
DRIVE LEGALLY TO SEEK EMPLOYMENT.
KEEP EMPLOYMENT OR SIMPLY BY
GOING TO AND FROM THEIR DOCTORS
APPOINTMENTS WHEN DEALING WITH
THE DISABILITY OR ILLNESS WHICH
MAY HAVE KEPT THEM FROM WORKING.
AS I PERSONALLY REFLECT BACK
OVER THE YEARS IN WHICH I'VE
BEEN INVOLVED I RECALL ONE
CLIENT.
WHOIS LIVING AT A CHURCH
SHELTER BECAUSE HE WAS
UNEMPLOYED AND HAD LOSSES INCOME
FOLLOWING A DIVORCE?
HE TOLD ME THAT THIS PROGRAM WAS
HIS TICKET TO GETTING BACK ON
ITS FEET.
AS HE WOULD NOW BE ABLE TO DRIVE
AND SEEK EMPLOYMENT.
ABOUT SIX MONTHS LATER HE CALLED
MY OFFICE TO SHARE THE NEWS THAT
HE HAD FOUND EMPLOYMENT ANDWAS
ABLE TO MOVE INTO HIS OWN PLACE.
THANKS LOW COST AUTO INSURANCE
PROGRAM.
I COULD SHARE MANY MORE STORIES
WITH YOU BUT IN SHORT THIS
PROGRAM PROVIDES ACCESS TO THE
MANY LOW INCOME DRIVERS
THROUGHOUT OUR STATE WHO WANT TO
DRIVE RESPONSIBLY AND LEGALLY.
IT'S NOT ONLY GOOD PUBLIC POLICY
FOR THOSE WHO QUALIFY FOR THE
PROGRAM.
BUT IT'S FOR THE GREATER GOOD
FOR ALL CALIFORNIANS AS WE
REDUCE THE NUMBER OF UNINSURED.
MOTORISTS ON OUR ROADWAYS BY
EXTENDING THIS PROGRAM.
IN CLOSING I URGE THIS COMMITTEE
TO SUPPORT AND THE AYE SB FIVE
SEVENTY AND THANK YOU FOR
HEARING MY TESTIMONY TODAY.
NEXT WITNESS BUT HAVING GOOD
AFTERNOON MY NAME IS JOSEPH GEL
OF ON BEHALF OF CHIRLA THE
COALITION FOR HUMANE IMMIGRANT
RIGHTS.
OR STATEWIDE ORGANIZATION WITH
NATIONAL IMPACT I'M ALSO
COMMISSIONER FOR THE CALIFORNIA
ADAM OF ASSIGNED RISK PLAN WHICH
IS CARP WHICH OVERSEES THIS
PROGRAM.
I LIKE THINGS IN A RUBIO
INSURANCE COMMISSIONER LOT
OFFERING TO THIS IN THIS
IMPORTANT BILL.
IS ENACTMENT OF AB SIXTY ALEJO
CALIFORNIA HAS ISSUE MORE THAN
ONE MILLION DRIVER LICENSE TO
UNDOCUMENTED IMMIGRANTS.
OTHER MORE THIS PROGRAM WAS
EXPANDED IN TWENTY FOURTEEN TO
INCLUDE DRIVERS WITH LESS THAN
THREE YEARS OF CONTINUED DRIVING
EXPERIENCES WHICH ALLOW AB SIXTY
DRIVER LICENSE.
DRIVERS TO INTO THE PROGRAM.
THESE TWO ACTIONS HAVE MADE OUR
ROADS SAFER IT ALSO A SAVE MONEY
TO DRIVERS ACCORDING TO A STUDY
TWO THOUSAND SEVEN BUT THE
NATIONAL ACADEMY OF SCIENCE.
IT INDICATED THAT HERE RUN
ACCIDENTS FROM UP AFTER AB SIXTY
I BECAME A LOT OF THE MAJORITY
OF IMMIGRANTS ARE EMPLOYED.
HOWEVER -- THEY EARN LESS THAN
NATIVE BY AYE BY NATIVES BY 24%.
THEREFORE THIS PROGRAM IS
CRITICAL TO MAKE SURE THAT THEY
CONTINUE TO BE SURE AND MAKE
SURE THAT OUR ROADS ARE SAFE.
AND WITH THAT I WILL RETURN
RESPECTFULLY REQUEST AN AYE VOTE
THANK YOU.
THANK YOU VERY MUCH ARE THERE
ANY OTHER SPEAKERS IN SUPPORT OF
THE BILL.
IF YOU CAN JUST -- BRIEFLY DOES
GIVE US YOUR NAME AND
ASSOCIATION IN YOUR TEARS ON
BEHALF OF THE CONSUMER
FEDERATION OF CALIFORNIA IN
SUPPORT.
THANK YOU VERY MUCH ANY OTHER
SPEAKERS IN SUPPORT.
ANY SPEAKERS IN OPPOSITION ANY
SPEAKERS IN OPPOSITION TO THE
BILL.
NO SPEAKERS IN OPPOSITION
COMMENTS FROM THE DíAS.
THE BILL BILL IS MOVE NO
COMMENTS WOULD YOU LIKE TO CLOSE
THANK YOU CLEARLY THIS IS AN
IMPORTANT PROGRAM WITHOUT I
RESPECTFULLY ASK FOR YOUR IDOL.
THANK YOU AND CAN WE CALL THE
ROLL PLEASE -- THE MOTION IS --
WITH AMENDMENTS.
WE NEED A MOTION I'M SORRY.
I I KNOW WE HAD THAT DONE WE HAD.
ROTH IN PORTANTINO AN ARCH LEAD
AND GLAZER EVERYBODY MOVED IT SO
[inaudible]
JONES.
NO ROTH WAS THAT ROTH WAS THE
MOTION MAKER.
WITH A AMENDMENTS.
MISSION IS TO PASS AS AMENDED
AND RE REFER TO SENATE
APPROPRIATIONS COMMITTEE RUBIO.
ACTIVE OF YOUR BILL [inaudible]
YES.
AND I VOTE RUBIO I JONES.
JONES I ARCHULETA.
ARCHULETA IBEATS BRIDGES DODD
[inaudible]
GALGIANI LEISURE.
LEISURE I HUESO.
MITCHELL.
MITCHELL AYE MORE LOCK
[inaudible]
PORTANTINO.
PORTANTINO AYE ROTH.
ROTH I WE HAVE SEVEN VOTES WE'RE
GONNA LEAVE IT ON CALL FOR THE
ABSENT MEMBERS.
THANK YOU VERY MUCH MISTER
INSURANCE COMMISSIONER YOU STICK
AROUND REST
.
WHILE WE'RE WAITING FOR SENATOR
DODD WE'RE GONNA LEFT THE CALL I
AND GO DOWN.
THE ROAD.
WE'RE GONNA START WITH SB TWO
FORTY DOT INSURANCE ADJUSTERS.
I'M SORRY THE PRESENT RIGHT.
WE'RE GONNA GO TO SB TWO FIVE
FOUR MR HERTZBERG CALIFORNIA
EARTHQUAKE AUTHORITY PLEASE CALL
THE ROLL.
IT IS TO TO PASS AND WE REFERRED
TO SENATE APPROPRIATIONS
COMMITTEE.
ARCHULETA.
ARCHULETA I BATES [inaudible]
BRIDGES [inaudible]
DODD [inaudible]
GALGIANI [inaudible]
LEISURE [inaudible]
HUESO [inaudible]
MITCHELL [inaudible]
ROTH.
WE'RE GONNA KEEP THE BILL LONG
KHôNG ARE WE'RE GONNA MOVE ON
TO SB. SEVEN FOUR ZERO MITCHELL
INSURANCE.
THESE CALL THE ROLL.
KERN FOOD IS FIVE ZERO DO PASS
AND REFER TO SENATE
APPROPRIATIONS COMMITTEE.
ARCHULETA HI ARCHULETA I EIGHT
GORGEOUS [inaudible]
DODD [inaudible]
GALGIANI [inaudible]
HUESO [inaudible]
MORE LIKE [inaudible]
ROTH [inaudible]
HI.
I'M GONNA CONTINUE PLACE OTHER
PHONE CALL WE'RE GONNA GO TO SB
FIVE SEVENTY RUBIO PLEASE CALL
THE ROLL.
THE CURRENT VOTER SEVEN ZERO TO
PASS AND AS AMENDED EVERY REFER
TO SENATE APPROPRIATIONS
COMMITTEE [inaudible]
BETH. EIGHT SIGH OR DRESS DODD
[inaudible]
GALGIANI.
WE SELL.
MORE LIKE.
SO WE'RE GONNA PAY THE PHONE
CALL WORK AND MOVED DOWN TO AYE
CONSENT CALENDAR.
WE HAVE AN OKAY [inaudible]
WHEN?
OKAY SO OF MISTER GLAZER DOES
MOVE -- THE BILL IN CONSENT
CALENDAR THAT'S SB FIVE OH EIGHT
LEYVA PLEASE CALL THE ROLL.
YOU PASS AND BE ORDER TO THE
CONSENT CALENDAR.
RUBIO.
AYE RUBIO AYE JONES.
SB FIVE AWAKENED SENSE.
JONES I ARCHULETA.
ARCHULETA AYE BATES.
SB FIVE OH EIGHT CONSENT.
BATES I BRIDGES [inaudible]
DODD.
DODD AYE GALGIANI [inaudible]
BLASIER.
GLAZER AYE HUESO.
MITCHELL.
SO I MORE LARK.
MORE LIKE I PORTANTINO.
SINCE YOU KNOW I ROTH
[inaudible]
I THANK.
WE'RE GONNA GET YOU PLACE THE
BOMB CALL WE'RE GOING TO MOVE
NOW TO SB TWO FORTY MISTER DOT.
EUROPE THANK YOU.
WELCOME YOU MAY PROCEED.
MADAM CHAIR AND MEMBERS.
I WANT TO FIRST DAY THAT ALL BE
ACCEPTING THE AMENDMENTS
SUGGESTED IN THE ANALYSIS PER
SHEET THE OPPORTUNITY.
TO WORK WITH THE COMMITTEE STAFF
TO GET THESE -- AMENDMENTS --
FORWARD -- INSURANCE ADJUSTERS
INVESTIGATE NEGOTIATE CLAIMS TO
PLAY A CRITICALLY IMPORTANT ROLE
IN THE PROCESSING OF INSURANCE
CLAIMS.
AFTER THE DEVASTATING TWO
THOUSAND SEVENTEEN NORTH BAY
FIRES THE DEPARTMENT OF
INSURANCE AND CONSUMER ADVOCATES
REPORTED NUMEROUS COMPLAINTS.
ABOUT OUT OF STATE ADJUSTERS.
WHO DID PROVIDING CONSUMERS WITH
INACCURATE INFORMATION REGARDING
THEIR RIGHTS UNDER CALIFORNIA
LAW?
WE FURTHER HEARD FROM
CONSTITUENTS WHO HAD NUMEROUS
ADJUSTERS WORK ON THEIR CLAIMS.
WHICH DELAY THE PROCESS AND
CAUSE ADDITIONAL STRESS THE
CLAIMANTS.
THIS BILL SEEKS TO ADDRESS BOTH
THESE ISSUES AND ENSURE THAT
WHEN THE NEXT WILD FIRE OR OTHER
NATURAL DISASTER STRIKES.
CALIFORNIANS WILL HAVE
ADDITIONAL PROTECTIONS AS THEY
REBUILD THEIR HOMES AND THEIR
LIVES [inaudible]
THIS BILL [inaudible]
THANK YOU.
THIS BILL REQUIRES AT THE
DEPARTMENT OF INSURANCE
[inaudible]
PRODUCE -- NOTICE -- DESCRIBING
THE MOST SIGNIFICANT CALIFORNIA
LAWS REGARDING PROPERTY
INSURANCE POLICIES INCLUDING
DURING TIMES OF EMERGENCY HERE'S
AN EXAMPLE OF SUCH A NOTICE.
THAT THE DEPARTMENT PREPARED IN.
TWO THOUSAND EIGHTEEN IT
REQUIRES THE DEPARTMENT
INSURANCE TO ADOPT REGULATIONS
ESTABLISHING TRAINING STANDARDS
AND NON LICENSE ADJUSTERS I'VE
OF NON LICENSE ADJUSTERS IN
EVALUATING.
DAMAGE CAUSED BY CATASTROPHE IT
REQUIRES AN INSURER TO PROVIDE
THE CLAIM IT WITH A SINGLE POINT
OF CONTACT REGARDING THE CLAIM I
RESPECTFULLY ASK DR A MADAM
CHAIRMAN OF THE BILL.
GOOD AFTERNOON MICHAEL MARTINEZ
THE DEPUTY COMMISSIONER FOR THE
TELEPHONE DEPARTMENT OF
INSURANCE HERE FOR INSURANCE
COMMISSIONER CARLOTTA.
WHO COULD NOT BE HERE WHO COULD
NOT BE HERE?
ON THIS MOSER [inaudible]
NO PLEASE.
VOTING NAZARIAN PLAN B. ON PLAN
B..
HERE I WITHDRAW MY MOTION.
YOU MAY PROCEED THANK YOU.
YES THEY TO A RELAY THAT TO HIM --
SO IN THE FIRST TEN FULL MONTHS
WE ARE IN STRONG SUPPORT OF THIS
MEASURE FEEL THIS IS VERY COMMON
SENSE A A MEASURE.
AND IT REALLY IN THIS FIRST TEN
FULL MONTHS AS INSURANCE
COMMISSIONER HAS VISITED A LOT
OF THE WILD FIRE STRICKEN AREAS
AND AND JUST BE HIS BECOME
INCREASINGLY CONCERNED WITH
ENSURING THAT.
THE SURVIVORS OF OF THE WILD
FIRES.
OUR PROVIDED CLEAR AND ACCURATE
INFORMATION TO HELP THEM
NAVIGATE THE CLAIMS PROCESS TO
THIS BILL DOES PROVIDE THE
DEPARTMENT OF INSURANCE WITH
ADDITIONAL STATUTORY AUTHORITY
TO ENSURE.
THAT TO AN LICENSE ADJUSTERS ARE
COMPETENT IN CALIFORNIA'S
PROPERTY CLAIMS LAWS AND ISSUES
RELATED TO ADJUSTING WILDFIRE
CLAIMS.
AND SO JUST WE LOOK FORWARD TO
CONTINUE TO WORK WITH THE AUTHOR
AS JUST ON TECHNICAL FIXES BUT
AGAIN IN STRONG SUPPORT OF THIS
MEASURE THANK YOU.
THANK YOU VERY MUCH IS THERE
ANYONE IN OPPOSITION.
THEME NINE ARE WHICH LIKE TO
CLOSE THANK YOU RESPECTFULLY ASK
DRIVER.
THANK YOU AT THE W. COMMISSION
DID SUCH A GOOD DEAL I MAINTAIN
MY MOTION.
DID YOU HAVE A QUESTION I'M
SORRY COMMENT SURE.
OKAY YES OF COURSE I JUST WANT
TO SAY THAT THIS COMMITTEE --
THE SENATE COMMITTEE ON
INSURANCE HELD A SPECIAL HEARING
IN SENATOR DODD'S DISTRICT THAT
LAST OCTOBER.
AND WE WERE LOOKING FOR FEEDBACK
FROM THE COMMUNITY AND AND OTHER
EXPERTS AS TO WHERE.
WE FELL SHORT AFTER THOSE
DEVASTATING FIRES THAT HIT HIS
DISTRICT IN CENTER REQUIRES AND
OTHERS.
AND THIS IS A PART OF THE BEST
PRACTICES THAT I THINK CAME OUT
OF THOSE CONVERSATIONS THAT
HEARING I APPLAUD THE AUTHOR FOR
ADVANCING THEM AND AND THEY'RE
VERY IMPORTANT ONCE THANK YOU.
THANK YOU VERY MUCH SO WE DO
HAVE A MOTION -- PLEASE CALL THE
ROLL.
MISSION IS TO PASS AS AMENDED
AND RE REFER TO SENATE
APPROPRIATIONS COMMITTEE RUBIO.
I WILL BE OUR AYE JONES JONES I
A ARCHULETA.
ARCHULETA IBEATS.
BATES AYE BOARD YES DODD.
DODD AYE GALGIANI GALGIANI AYE
GLAZER.
FRAZIER AYE HUESO.
HUESO AYE MITCHELL.
MITCHELL AYE MORE LOCK.
MORE LIKE I PORTANTINO.
PORTANTINO AYE ROTH.
WE'RE GONNA PAY THE BILL ON CALL --
AS I SEE WE HAVE NEW MEMBERS FOR
GONNA NOW GO BACK AND OPEN.
THE CALL WE'RE GOING TO START
WITH SB TWO FORTY PLEASE CALL
THE ROLL.
WELL THAT'S WHAT HE DOES THE
RIGHT NOW RIGHT.
WE JUST AT THAT WE'RE GONNA DO
SB TWO FIFTY FOUR HERTZBERG
PLEASE CALL THE ROLL.
KERN VOTERS THREE TO TWO TO PASS
AND REFER TO SENATE
APPROPRIATIONS BATES
[inaudible]
NO GORGEOUS [inaudible]
DODD [inaudible]
I HERTZBERG AS I GUESS YOU HAVE
TO FILL IN.
FOR DODD AYE.
GALGIANI [inaudible]
GLAZER [inaudible]
HUESO.
A SO I AM MITCHELL [inaudible]
ROTH.
WE'RE GONNA PLACE TO BELONG
KHôNG WE'RE GONNA MOVE ON TO SB.
I SEVENTY BROUGH BILL.
IT IS A DOUBLE.
WHAT WAS THAT?
YEAH. FIVE TWO THREE THAT'S A
HERTZBERG BILL.
IT'S A WE'RE GONNA MOVE ON TO SB.
FIVE SEVENTY PLEASE CALL THE
ROLL.
AND VOTERS EIGHT ZERO TO PASS AS
AMENDED AND RE REFER TO SENATE
APPROPRIATIONS FORGES
[inaudible]
DODD.
DODD AYE GALGIANI.
GALGIANI I MORE LOCK.
WE'RE GONNA PAY THE BILL CALL WE
ARE CURRENTLY AT TEN TWO ZERO
FOR MOVIE NON.
YOU ARE INCLUDED.
SB FIVE SEVENTY RUBIO -- OKAY
HUESO.
SO IS THAT A YES AND I LOW YEAH.
SB FIVE SB [inaudible]
FIVE SEVENTY THAT.
ONE I HUESO AYE. FOR
CLARIFICATION ELEVEN ZERO THANK
YOU SO WE'RE GONNA MOVE ON TO SB
SEVEN FORTY MITCHELL HE'S CALL
THE ROLL.
BRADFORD IS SEVEN ZERO TO PASS
AND REFER TO SENATE
APPROPRIATIONS COMMITTEE BATES.
BATES AYE BURGESS.
DODD.
DODD AYE GALGIANI.
GALGIANI AYE HUESO.
HUESO I A WARLOCK.
WARLOCK I IT'S TOUGH.
TO ZERO SO WE'RE GONNA TAKE A
TWO MINUTE.
RECESS WE ARE.
WE'RE GONNA OPEN YES WE'RE GONNA
OPEN THE ROLE KAUFER CAN SANTA
PLEASE CALL THE ROLL.
VOTERS TEND.
TO ZERO THE PASS IN THE ORDER TO
THE CONSENT CALENDAR BOARD YES.
GALGIANI.
JOHNNY AYE HUESO.
HUESO I IT'S CRAZY TALK TO GIRLS
WERE GONNA PAY THE BILL ON CALL.
I'M AT THIS POINT OUR WAITING
pPRESENT SO I AM GOING TO HAND IT
OFF TO MISTRUST TO LET US SO WE
CAN KEEP THE ROLL CALL OPEN.
STRETCH LETTER.
I'M SURE I JUST WANT TO CLARIFY
THAT EVERY BILL HAS BEEN HEARD.
I AND WE'RE JUST WAITING FOR ADD
ONS IS THAT CORRECT.
THAT'S CORRECT UNFORTUNATE TODAY
IT'S VERY BUSY THERE'S A LOT OF
MEMBERS AND NOT HEALTH AND OTHER
COMMITTEES THE ROLE OPEN -- ADD
ONS.
YOU GUYS.
LET LET'S GIVE.
WE'RE GONNA WAY FOR MISS
MITCHELL TO COME BACK I THINK
SHE SHOULD BE BACK SHORTLY THANK
YOU
JOINING US SO WE'RE GONNA
START WITH SB TWO FIFTY FOUR
HERTZBERG PLEASE CALL THE ROLL
[inaudible]
SURE.
THANK YOU FOR THE COURTESY AT I
JUST WANT TO SAY HAT WAS A
GREAT CONVERSATION WE HAD ON
SENATOR HERTZBERG SPELL.
AND I APPRECIATE THE AUTHORS
THAT COMMITMENT TO TRYING.
TO REALLY LAY OUT THE OPTIONS IN
THE RISKS AND UNCERTAINTIES SO
WE CAN BE CLEAR ON IT THAT IS
COMMITTED TO WORKING ON THAT.
IF THE BILL MOVES FORWARD IN AN
IT WITH THAT UNDERSTANDING I I
PRAISE HIS.
INNOVATIVE LEADERSHIP ON IT AND
I AM HAPPY TO TO TO SUPPORT IT
TO ADD TOTAL ALLOWED TO GO
FORWARD I WANTED TO PUT THAT ON
THE RECORD THANK YOU CAN YOU
PLEASE CALL THE WRONG.
THE MANAGER -- OF COURSE MISTER
ROCK I AM.
I HEARD MY COMMENTS WITH RESPECT
TO THE CURRENT STATUS OF THE
BILL.
I HAVING -- HAD A CONVERSATION --
WITH THE AUTHOR I AM CONVINCED
THAT HE AND THE FRANKLY THOSE
WHO ARE CURRENTLY OPPOSED TO THE
BILL OR INTEND TO WORK --
DILIGENTLY TO RESOLVE THEIR%
DIFFERENCES AND I'M.
WILLING TO MOVE THE BILL OUT OF
THE COMMITTEE -- TODAY TO GIVE
THEM AN OPPORTUNITY TO CONTINUE
THE OPPORTUNITY TO DO THAT WE'LL
SEE WHAT HAPPENS IF IT GETS TO
THE FLOOR.
AND THERE'S NO AGREEMENT -- I I
CERTAINLY RESERVE THE RIGHT.
TO VOTE IN A DIFFERENT WAY BUT I
INTEND TO MOVE THE BILL OFF.
OUT OF THIS COMMITTEE TODAY
THANK YOU VERY MUCH THANK YOU
AND OF COURSE WE'VE ALL
EXPRESSED OUR OUR OUR DESIRES
FOR YOU TO WORK IT OUT WITH THE
OTHER I'M NOT PARTICIPATING
INSURANCE AND WITH THAT I'LL
HAVE -- SECRETARY CALL THE ROLL
PLEASE.
ITEM NUMBER TWO SB TWO FIFTY
FOUR CURRENT VOTERS FIVE TO
THREE D. PASS AND RE REFER TO
SENATE APPROPRIATIONS
[inaudible]
GORGEOUS [inaudible]
GALGIANI [inaudible]
LEISURE [inaudible]
PLEASURE I MITCHELL [inaudible]
ROTH [inaudible]
ROTH AYE.
SERENA BUT THE BELONG KHôNG
WE'RE GONNA MOVE ON BY NOW THE
VOTE IS.
SEVEN ZERO I'M SORRY SEVEN THREE
OUT WE'RE GONNA MOVE ON TO SB
TWO FORTY PLEASE CALL THE ROLL --
INVADERS ELEVEN ZERO TO PASS AS
AMENDED AND RE REFER TO SENATE
APPROPRIATIONS ROTH [inaudible]
ROTH AYE.
WE'RE GONNA PLACE THE BILL BACK
ON CALL WE'RE GONNA MOVE ON TO
SB [inaudible] SEVEN FORTY FORTY
WE'RE GONNA GO BACK TO TWO FORTY
SB TWO FORTY DOT CALL THE ROLL.
AND VOTERS.
TWELVE ZERO FORGES.
OR JUST AYE.
THIS IS OUT.
THIRTEEN ZERO SB.
TWO FIFTY FOUR CURRENT LOTUS
SEVEN THREE TO PASS AND REFER TO
SENATE APPROPRIATIONS
[inaudible]
REGIS [inaudible]
GALGIANI [inaudible]
MITCHELL.
SB TWO FIFTY FOUR HERTZBERG
[inaudible]
GORGEOUS [inaudible]
GALGIANI MITCHELL.
VOTERS.
SEVEN THREE THE BILL IS OUT
THANK YOU.
NOW MOVING ON TO SB FIVE SEVENTY
PLEASE CALL THE ROLL AND VOTERS.
ELEVEN ZERO TO PASS AS AMENDED
AND RE REFER TO SENATE
APPROPRIATIONS GORGEOUS.
GORGEOUS I MORE LOCK.
THE VOTE IS I'M SORRY THE BILL
IS OUT [inaudible]
TWELVE TWO ZERO AND NOW WE'RE
MOVING ON TO SB SEVEN FORTY
PLEASE CALL THE ROLL.
CURRENT VOTE IS TWELVE TO ZERO
TO PASS AND REFER TO SENATE
APPROPRIATIONS [inaudible] FOR
JESS.
WE'RE JUST AYE.
THE BILLS OUT [inaudible]
THIRTEEN ZERO IS SOMETHING.
NUMBER FIVE SB FIVE OH EIGHT
CONSENT CALENDAR TWO PASSES THEM.
IN ORDER TO THE SENATE FLOOR FOR
JESS THAT'S A GORGEOUS
[inaudible]
WHAT IS?
THE BILLS OUT.
THIRTEEN ZERO THANK YOU EVERYONE
FOR OUR OUR DISCUSSION AND FOR
WITHOUT A HIGH.
ADJOURNED THANK YOU