Bill Text: CA AB1395 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance: special assessments: Seismic Safety Account.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-18 - Chaptered by Secretary of State - Chapter 407, Statutes of 2014. [AB1395 Detail]

Download: California-2013-AB1395-Amended.html

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BILL NUMBER: AB 1395	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 2, 2013

INTRODUCED BY   Committee on Insurance (Perea (Chair), Hagman (Vice
Chair), Bonilla, Bradford, Ian Calderon, Cooley, Frazier, Mitchell,
Olsen, Torres, and Wieckowski)

                        MARCH 4, 2013

   An act to amend Section 1775.4 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1395, as amended, Committee on Insurance. Insurance: surplus
line brokers.
   Existing law requires every surplus line broker to pay annually to
the Insurance Commissioner a tax of 3% of the gross premiums charged
less return premiums upon business done by the surplus line broker
under the authority of his or her license. If the annual tax for the
preceding calendar year was $5,000 or more, existing law requires the
surplus line broker to make monthly installment payments on account
of the annual tax on business done during the current calendar year.
Existing law requires the amount of the payment to be 3% of the gross
premiums charged less return premiums upon business done by the
surplus line broker during the calendar month ending 2 calendar
months immediately preceding the due date of the payment, as
specified. Existing law requires a surplus line broker to file a
return showing that his or her return premiums exceeded his or her
gross premiums even when no payment is payable by the broker.
   This bill would delete the provision requiring a surplus line
broker to file a return showing that his or her return premiums
exceeded his or her gross premiums even when no payment is payable by
the broker.  The bill would instead provide that if no payment
is payable by the broker, the commissioner may waive or modify the
requirements by issuance of a notice published on the department's
Internet We   b site. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1775.4 of the Insurance Code is amended to
read:
   1775.4.  (a) The amount of the payment shall be 3 percent of the
gross premiums charged less return premiums upon business done by the
surplus line broker during the calendar month ending two calendar
months immediately preceding the due date of the payment, as
specified in Section 1775.3, excluding gross premiums and return
premiums paid by him or her upon business governed by the provisions
of Section 1760.5. If during any calendar month those return premiums
upon business done by a surplus line broker exceed the gross
premiums upon the business done by him or her in that calendar month,
then no payment shall be payable by him or her in respect to that
calendar month, and he or she may carry forward that excess to the
next succeeding calendar month or months and apply it in reduction of
the taxable premiums on business done by him or her in that
succeeding calendar month or months.  If no payment is payable by
the broker, the commissioner may waive or modify the  
requirements by issuance of a notice published on the department's
Internet Web site. 
   (b) In determining the applicability of subdivision (a) of Section
1775.1 to a surplus line broker who has acquired the business of
another surplus line broker, the amount of tax liability of the
acquired broker for the immediately preceding calendar year shall be
added to the amount of the tax liability of the acquiring broker for
the immediately preceding calendar year.
   (c) All amounts paid, other than penalties and interest, shall be
allowed as a credit on the annual tax imposed by Section 1775.5.
   (d) If the total amount of monthly installment payments for any
calendar year exceeds the amount of annual tax for that year, the
excess shall be treated as an overpayment of annual tax and be
allowed as a credit or refund.
   (e) A penalty of 10 percent of the amount of the monthly payment
due shall be levied upon and paid by any surplus line broker who
fails to make the necessary payment within the time required, plus
interest at the rate of 1 percent per calendar month or fraction
thereof from the due date of the payment until the date payment is
received by the commissioner, but not for any period after the due
date of the annual tax. The penalty and interest shall be applied as
prescribed in Section 12636.5 of the Revenue and Taxation Code. The
commissioner may remit the penalty in a case where he or she finds,
as a result of examination or otherwise, that the failure of, or
delay in, payment arose out of excusable mistake or excusable
inadvertence.
   (f) For any part of a payment required that was not made within
the time required by law, when the nonpayment or late payment was due
to fraud on the part of the taxpayer, a penalty of 25 percent of the
amount unpaid shall be added thereto, in addition to all other
penalties otherwise imposed.
   (g) The commissioner, upon a showing of good cause, may extend for
not to exceed 10 days the time for making a monthly payment. The
extension may be granted at any time, provided that a request
therefor is filed with the commissioner within or prior to the period
for which the extension may be granted. Any surplus line broker to
whom an extension is granted shall, in addition to the monthly
payment, pay interest at the rate of 1 percent per month, or fraction
thereof, from the due date until the annual tax due date.