12970. The commissioner shall require the payment in advance of a
fee for copying microfilm records in the amount of thirty cents
($0.30) per page.
12970.1. In addition to all other fees required for furnishing
copies of instruments or documents filed in his office, the
commissioner shall require the payment, in lawful money of the United
States, of an amount approximately equal to the postage or other
delivery charges he must pay for delivery of the copies so furnished
if at the request of the person ordering them they are delivered by
any more expensive means than ordinary first-class United States
mail.
12972. The commissioner shall require in advance, in lawful money
of the United States as a fee for attaching his seal of office to any
paper or document not specified in this code, one dollar.
12973. The commissioner shall require in advance, in lawful money
of the United States as a fee for issuing certificates when the fee
is not otherwise specified, sums as follows: (a) where there is
sufficient demand so that the commissioner in his discretion has
prepared a form of the certificate in advance, which requires only
the filling in of blanks for completion, nine dollars ($9); and (b)
for issuing any other certificate, the reasonable cost of preparing
and issuing such certificate, but not to exceed twenty-three dollars
($23) for the first copy of such certificate and nine dollars ($9)
for each additional copy thereof.
12973.5. The commissioner shall charge and collect in advance the
following fees:
(a) For filing any application for a license, permit, or
certificate of authority when a fee for either filing the application
or issuing the license, permit, or certificate is not elsewhere
specified in this code, twenty dollars ($20).
(b) For filing any application to take any qualifying examination
required by this code to be taken by a licensee other than an
insurer, or to be taken by any applicant for a license other than a
certificate of authority when a fee for filing such application or
giving such examination is not elsewhere specified in this code,
twenty-nine dollars ($29).
12973.6. If a check in payment of a tax, fee or penalty is not paid
by the bank on which it is drawn on its first presentation, the
commissioner shall charge and collect an additional fee sufficient to
reimburse him for incurred costs.
12973.7. Where provision for fees or charges for documents,
transcripts, or other materials which may be furnished by the
commissioner is not specifically made in this code, the commissioner
may fix and collect fees therefor not in excess of reasonable cost.
All publications and other printed matter shall be distributed and
sold by the Department of General Services.
12973.9. Whenever by the provisions of this code a form of policy
or certificate and any endorsement, rider, application, amendment,
fill-in material, classification of rates, certificate or premium to
be used therewith, is required to be filed with, submitted to, or
approved by the commissioner, fees as provided for by this section
shall be paid to the commissioner to cover the expenses of processing
and indexing the same and maintaining copies of the same.
The required fee shall be prescribed by the commissioner for each
type document submitted, depending on its nature and the kind of
processing required. The commissioner may prescribe different fees
for different types of documents, and in the case of documents
submitted for approval or authorization of use, shall prescribe a fee
only for the final approval or authorization for use, if any. The
commissioner shall determine the fee, or fees, by estimating in
advance the commissioner's total costs of performing these services
for all types of documents for a specified period of time, estimating
the total number of documents of various kinds which will be
submitted for processing during such time and equitably distributing
the total cost on a per document basis. The commissioner shall, after
notice and hearing, promulgate such reasonable rules and regulations
as are necessary to establish the standard or standards by which the
commissioner shall determine the original fee schedule or any
amended fee schedule. Any rule or regulation shall be promulgated in
accordance with the procedure provided in Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code and shall be effective 90 days after adoption by the
commissioner, except the first fee schedule adopted by the
commissioner under such regulation may be retroactive to the
effective date of this section.
All fees received by the commissioner under this section shall be
remitted to the credit of the Insurance Fund pursuant to the
provisions of Section 12975.7.
Without in any manner affecting the applicability of this section
to any other provisions of this code, it is expressly provided herein
that the provisions of this section apply to the forms required to
be filed, submitted, or approved under the following sections of this
code: 779.8, 795.5, 1320, 9080.1, 10205, 10225, 10270, 10270.1,
10270.5, 10270.57, 10270.9, 10270.93, 10290, 10292, 10506, 11027,
11029, 11066, 11069, 11513, 11522, 11658, 12250, and 12640.18.
12975. Whenever, by the provisions of this code a duty, right,
privilege or power is imposed or conferred upon the commissioner, but
it is provided that the expense of performance of such duty or
exercise of such right, privilege or power is to be paid in advance
or otherwise out of sources other than the Insurance Fund, the
commissioner may defray such expense or any portion thereof out of
the appropriation for the support of the Department of Insurance
without regard to prospect of repayment. The repayment of such
moneys, not to exceed seven hundred fifty dollars ($750) shall be a
debt of and a lien against the assets of every person otherwise
chargeable with such payment and shall constitute a preferred claim
in all proceedings in bankruptcy or insolvency to the same extent as
claims for compensation due employees for wages and salaries and
claims for expenses of conservatorship or liquidation in proceedings
under Article 14 (commencing with Section 1010), Chapter 1, Part 2,
Division 1 of this code.
12975.1. All examination expense moneys collected by the Department
of Insurance under the provisions of Sections 736, 1061, and 1857.4
are hereby appropriated to the department and shall be deposited in
the Insurance Fund to the credit of the support appropriation for the
department current at the time of the deposit.
12975.5. The commissioner may in any investigation or hearing
conducted by him take or cause to be taken the deposition of any
witness residing within or without this state and may pay the expense
thereof out of the current support appropriation of the department.
He may pay out of such appropriation to any witness subpoenaed by him
the necessary and reasonable traveling expenses of any such witness,
to the place of hearing or investigation and return and a per diem
of twelve dollars ($12) for each day that such witness is in
attendance at or en route to and from such place of hearing or
investigation in obedience to such subpoena. The provisions of this
section shall not apply to proceedings conducted in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, such proceedings to be governed
solely by said chapter.
12975.7. (a) All moneys received by the commissioner in payment of
lawful fees or reimbursements pursuant to this code shall be
transmitted to the Treasurer to be deposited in the State Treasury to
the credit of the Insurance Fund. Unless specified in this code to
be deposited in a different fund, all moneys received by the
commissioner in fines, penalties, assessments, costs, or other
sanctions shall be transmitted to the State Treasury for deposit in
the General Fund.
(b) The money in the Insurance Fund received from the commissioner
pursuant to this section is hereby appropriated to pay the refunds
authorized by this code.
(c) The balance of the money in the Insurance Fund shall be used
for the purposes specified in Section 12975.9, for the support of the
Department of Insurance as authorized by the Budget Act, and for
related cashflow needs.
12975.8. (a) The Insurance Fund shall, in addition to the funds
specified in Section 12975.7, consist of all of the following:
(1) All moneys appropriated to the fund in accordance with law.
(2) All moneys deposited into the State Treasury from any source
whatever in payment of lawful fees or reimbursements collected by the
Department of Insurance.
(3) The balance remaining in the Insurance Fund at the end of the
fiscal year, whether the moneys received are from an appropriation,
fees, or from reimbursements for services rendered.
(b) (1) All moneys in the Insurance Fund credited to the Seismic
Safety Account shall be subject to an annual appropriation each
fiscal year for the purposes specified in Section 12975.9.
(2) All other moneys in the Insurance Fund shall be subject to an
annual appropriation each fiscal year for the support of the
Department of Insurance.
(3) If the current cash balance in the Seismic Safety Account is
not adequate to fund the amount appropriated from it in the annual
Budget Act, the Insurance Fund, upon enactment of the Budget Act,
shall loan to the account the amount of the appropriation, and one
half of this amount shall be transferred to the Seismic Safety
Commission. The second half of the appropriated amount shall be
transferred to the Seismic Safety Commission from the Seismic Safety
Account on or before December 31 of each year. This loan shall be
repaid by revenues collected pursuant to Section 12975.9.
(c) Any balance remaining in the Insurance Fund at the end of the
fiscal year may be carried forward to the next succeeding fiscal
year.
(d) Whenever the balance in the Insurance Fund is not sufficient
to cover cashflow in the payment of authorized expenditures, the
department may borrow funds as may be necessary from whatever source
and under terms and conditions as may be determined by the Director
of Finance. Repayment shall be made from revenues received by the
department for the same fiscal year for which the loan is made.
12975.9. (a) The Seismic Safety Account is hereby created as a
special account within the Insurance Fund. Money in the account may
be appropriated by the Legislature for the purposes of this section
to fund the department and the Seismic Safety Commission. Assessments
imposed on insurers as a prorated percentage of premiums earned on
property exposures for both commercial and residential insurance
policies relative to the aggregate premiums earned on those exposures
by all insurers shall be deposited in the account. The premiums
earned for property exposures shall be as stated on lines 4 and 5.1
of the annual statement filed by each insurer pursuant to Section
900. The assessments shall be set annually based on earned premiums
reported for the next preceding year by the department and calculated
so that the funds in the account shall be sufficient to fund
appropriations for support of the Seismic Safety Commission, for the
actual collection and administrative costs of the department, and for
the maintenance of an adequate reserve. The department shall submit
the proposed assessments to the Seismic Safety Commission for its
review at a regularly scheduled meeting of the commission.
(b) No assessment shall be levied on insurers with less than one
hundred thousand dollars ($100,000) of annual direct premiums earned
on property exposures for both commercial and residential insurance
policies. The department may adjust this amount as necessary to
minimize costs by excluding assessment amounts that are too small to
justify the cost of assessment and collection or if assessment or
collection is impractical.
(c) An insurer, in its discretion, may recover this assessment in
an equitable fashion from the insured. The insurer, upon receipt of
an invoice, shall transmit payment to the department for deposit in
the Seismic Safety Account. Any deficiency or excess in the amount
collected in relation to the appropriation authority for the
commission and the department shall be accounted for in the
subsequent annual fee calculation. Any balance remaining in the
Seismic Safety Account at the end of the fiscal year shall be
retained in the account and carried forward to the next fiscal year.
(d) Funds in the Seismic Safety Account shall be distributed, upon
appropriation, to the Seismic Safety Commission for the support of
the commission and to the department for the actual administrative
costs incurred in collecting the assessments.
(e) The department shall report annually to the Legislature, the
Seismic Safety Commission, and the Department of Finance on the
assessment calculation methodology employed.(f) This section shall
become inoperative on July 1, 2012, and, as of January 1, 2013, is
repealed, unless a later enacted statute, that becomes operative on
or before January 1, 2013, deletes or extends the dates on which it
becomes inoperative and is repealed.
12976. All fines, forfeitures, taxes, assessments, and penalties
provided for in this code shall be due and payable on the demand of
the commissioner. If payment is not made within ten days after such
demand, then the commissioner shall institute an action in the name
of the people of the State of California for the purpose of
recovering such moneys due. All such actions shall be subject to all
the provisions of the Code of Civil Procedure which may be applicable
thereto.
12976.5. (a) On and after January 1, 1994, and before January 1,
1995, every insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer. On and
after January 1, 1995, every insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 for completing the electronic funds transfer.
(b) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated. If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
(c) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
(2) If the department finds that an insurer's failure to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (a) is due to reasonable cause or circumstances
beyond the insurer's control, and occurred notwithstanding the
exercise of ordinary care and in the absence of willful neglect, that
insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the department a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.
12977. The commissioner may authorize the refund of money received
or collected by the department in payment for the filing of
applications for licenses, permits or certificates, or for the
rendering of other services:
(a) Where the receipt or collection has resulted in an overpayment
or duplicate payment.
(b) In cases where no payment is required for filing the
application for the license, permit or certificate sought, or for
rendering the other service.
(c) Where an insufficient fee is paid and for which reason the
application for the license, permit or certificate cannot be filed or
the other service cannot be rendered.
(d) The penalty fee required by subdivision (b) of Section 1718
upon a written showing, filed within sixty (60) days after the
delinquency date, with particularity as to facts that late payment
resulted from mistake, inadvertence or excusable neglect.
This section does not exclude the making of refunds under other
appropriate provisions of law requiring the approval of the Director
of General Services before such refunds may be made.
12978. Notwithstanding any other provision of law, the commissioner
may increase or decrease the fees set forth in this code as
necessary to allow the department to meet the appropriation
authorized by the annual Budget Act. However, any increase or
decrease so made shall be made only in accordance with this section,
and a fee increase shall not exceed 10 percent without the prior
approval of the Legislature.
A single annual increase or decrease in fees, on a fiscal year
basis, may be made by the department at any time during the year
provided it is announced by bulletin issued at least 90 days prior to
the effective date of that increase or decrease. The bulletin shall
be sent to all affected parties and to both houses of the
Legislature. That fee increase or decrease may be rescinded by a
majority vote of both houses of the Legislature not later than 60
days after the issuance of the bulletin announcing the increase or
decrease.
In the event the bulletin is issued during the period between
August 1 and December 1 of any year, the department shall provide
notice in writing of the necessity of any fee increase or decrease as
proposed in the bulletin upon issuance of the bulletin to the
chairperson of the committee in each house which considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee.
If written notice is provided to the commissioner within 60 days
of the issuance of the bulletin announcing the increase or decrease
by any of the chairpersons that there is an objection to the fee
increase or decrease, the increase or decrease shall take effect
February 1 of the following year unless rescinded by a majority vote
of both houses of the Legislature by that date, rather than 60 days
after issuance of the bulletin.
The department shall annually project forward its workload for the
subsequent three years in order to project appropriate fee levels,
and shall annually make adjustments to those fees, if necessary,
based on actual workload experience.
The limit on the cumulative amount that the fees may be increased
or decreased shall be the amount necessary to provide sufficient
moneys to carry out the projected workload within the appropriations
contained in the Governor's Budget for the next succeeding fiscal
year, or, to the extent that moneys received or projected to be
received by the department are insufficient to carry out the
projected workload within the appropriation authorized by the annual
Budget Act during the then current fiscal year, an amount necessary
to meet that appropriation and consistent with that projected
workload.
12979. Notwithstanding the provisions of Section 12978, the
commissioner shall establish a schedule of filing fees to be paid by
insurers to cover any administrative or operational costs arising
from the provisions of Article 10 (commencing with Section 1861.01)
of Chapter 9 of Part 2 of Division 1.
12980. The Financial Responsibility Penalty Account is hereby
created in the General Fund. Moneys in the account shall be expended,
upon appropriation therefor, for matters including, but not limited
to, automobile insurance and financial responsibility of vehicle
owners and operators.
12970. The commissioner shall require the payment in advance of a
fee for copying microfilm records in the amount of thirty cents
($0.30) per page.
12970.1. In addition to all other fees required for furnishing
copies of instruments or documents filed in his office, the
commissioner shall require the payment, in lawful money of the United
States, of an amount approximately equal to the postage or other
delivery charges he must pay for delivery of the copies so furnished
if at the request of the person ordering them they are delivered by
any more expensive means than ordinary first-class United States
mail.
12972. The commissioner shall require in advance, in lawful money
of the United States as a fee for attaching his seal of office to any
paper or document not specified in this code, one dollar.
12973. The commissioner shall require in advance, in lawful money
of the United States as a fee for issuing certificates when the fee
is not otherwise specified, sums as follows: (a) where there is
sufficient demand so that the commissioner in his discretion has
prepared a form of the certificate in advance, which requires only
the filling in of blanks for completion, nine dollars ($9); and (b)
for issuing any other certificate, the reasonable cost of preparing
and issuing such certificate, but not to exceed twenty-three dollars
($23) for the first copy of such certificate and nine dollars ($9)
for each additional copy thereof.
12973.5. The commissioner shall charge and collect in advance the
following fees:
(a) For filing any application for a license, permit, or
certificate of authority when a fee for either filing the application
or issuing the license, permit, or certificate is not elsewhere
specified in this code, twenty dollars ($20).
(b) For filing any application to take any qualifying examination
required by this code to be taken by a licensee other than an
insurer, or to be taken by any applicant for a license other than a
certificate of authority when a fee for filing such application or
giving such examination is not elsewhere specified in this code,
twenty-nine dollars ($29).
12973.6. If a check in payment of a tax, fee or penalty is not paid
by the bank on which it is drawn on its first presentation, the
commissioner shall charge and collect an additional fee sufficient to
reimburse him for incurred costs.
12973.7. Where provision for fees or charges for documents,
transcripts, or other materials which may be furnished by the
commissioner is not specifically made in this code, the commissioner
may fix and collect fees therefor not in excess of reasonable cost.
All publications and other printed matter shall be distributed and
sold by the Department of General Services.
12973.9. Whenever by the provisions of this code a form of policy
or certificate and any endorsement, rider, application, amendment,
fill-in material, classification of rates, certificate or premium to
be used therewith, is required to be filed with, submitted to, or
approved by the commissioner, fees as provided for by this section
shall be paid to the commissioner to cover the expenses of processing
and indexing the same and maintaining copies of the same.
The required fee shall be prescribed by the commissioner for each
type document submitted, depending on its nature and the kind of
processing required. The commissioner may prescribe different fees
for different types of documents, and in the case of documents
submitted for approval or authorization of use, shall prescribe a fee
only for the final approval or authorization for use, if any. The
commissioner shall determine the fee, or fees, by estimating in
advance the commissioner's total costs of performing these services
for all types of documents for a specified period of time, estimating
the total number of documents of various kinds which will be
submitted for processing during such time and equitably distributing
the total cost on a per document basis. The commissioner shall, after
notice and hearing, promulgate such reasonable rules and regulations
as are necessary to establish the standard or standards by which the
commissioner shall determine the original fee schedule or any
amended fee schedule. Any rule or regulation shall be promulgated in
accordance with the procedure provided in Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code and shall be effective 90 days after adoption by the
commissioner, except the first fee schedule adopted by the
commissioner under such regulation may be retroactive to the
effective date of this section.
All fees received by the commissioner under this section shall be
remitted to the credit of the Insurance Fund pursuant to the
provisions of Section 12975.7.
Without in any manner affecting the applicability of this section
to any other provisions of this code, it is expressly provided herein
that the provisions of this section apply to the forms required to
be filed, submitted, or approved under the following sections of this
code: 779.8, 795.5, 1320, 9080.1, 10205, 10225, 10270, 10270.1,
10270.5, 10270.57, 10270.9, 10270.93, 10290, 10292, 10506, 11027,
11029, 11066, 11069, 11513, 11522, 11658, 12250, and 12640.18.
12975. Whenever, by the provisions of this code a duty, right,
privilege or power is imposed or conferred upon the commissioner, but
it is provided that the expense of performance of such duty or
exercise of such right, privilege or power is to be paid in advance
or otherwise out of sources other than the Insurance Fund, the
commissioner may defray such expense or any portion thereof out of
the appropriation for the support of the Department of Insurance
without regard to prospect of repayment. The repayment of such
moneys, not to exceed seven hundred fifty dollars ($750) shall be a
debt of and a lien against the assets of every person otherwise
chargeable with such payment and shall constitute a preferred claim
in all proceedings in bankruptcy or insolvency to the same extent as
claims for compensation due employees for wages and salaries and
claims for expenses of conservatorship or liquidation in proceedings
under Article 14 (commencing with Section 1010), Chapter 1, Part 2,
Division 1 of this code.
12975.1. All examination expense moneys collected by the Department
of Insurance under the provisions of Sections 736, 1061, and 1857.4
are hereby appropriated to the department and shall be deposited in
the Insurance Fund to the credit of the support appropriation for the
department current at the time of the deposit.
12975.5. The commissioner may in any investigation or hearing
conducted by him take or cause to be taken the deposition of any
witness residing within or without this state and may pay the expense
thereof out of the current support appropriation of the department.
He may pay out of such appropriation to any witness subpoenaed by him
the necessary and reasonable traveling expenses of any such witness,
to the place of hearing or investigation and return and a per diem
of twelve dollars ($12) for each day that such witness is in
attendance at or en route to and from such place of hearing or
investigation in obedience to such subpoena. The provisions of this
section shall not apply to proceedings conducted in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, such proceedings to be governed
solely by said chapter.
12975.7. (a) All moneys received by the commissioner in payment of
lawful fees or reimbursements pursuant to this code shall be
transmitted to the Treasurer to be deposited in the State Treasury to
the credit of the Insurance Fund. Unless specified in this code to
be deposited in a different fund, all moneys received by the
commissioner in fines, penalties, assessments, costs, or other
sanctions shall be transmitted to the State Treasury for deposit in
the General Fund.
(b) The money in the Insurance Fund received from the commissioner
pursuant to this section is hereby appropriated to pay the refunds
authorized by this code.
(c) The balance of the money in the Insurance Fund shall be used
for the purposes specified in Section 12975.9, for the support of the
Department of Insurance as authorized by the Budget Act, and for
related cashflow needs.
12975.8. (a) The Insurance Fund shall, in addition to the funds
specified in Section 12975.7, consist of all of the following:
(1) All moneys appropriated to the fund in accordance with law.
(2) All moneys deposited into the State Treasury from any source
whatever in payment of lawful fees or reimbursements collected by the
Department of Insurance.
(3) The balance remaining in the Insurance Fund at the end of the
fiscal year, whether the moneys received are from an appropriation,
fees, or from reimbursements for services rendered.
(b) (1) All moneys in the Insurance Fund credited to the Seismic
Safety Account shall be subject to an annual appropriation each
fiscal year for the purposes specified in Section 12975.9.
(2) All other moneys in the Insurance Fund shall be subject to an
annual appropriation each fiscal year for the support of the
Department of Insurance.
(3) If the current cash balance in the Seismic Safety Account is
not adequate to fund the amount appropriated from it in the annual
Budget Act, the Insurance Fund, upon enactment of the Budget Act,
shall loan to the account the amount of the appropriation, and one
half of this amount shall be transferred to the Seismic Safety
Commission. The second half of the appropriated amount shall be
transferred to the Seismic Safety Commission from the Seismic Safety
Account on or before December 31 of each year. This loan shall be
repaid by revenues collected pursuant to Section 12975.9.
(c) Any balance remaining in the Insurance Fund at the end of the
fiscal year may be carried forward to the next succeeding fiscal
year.
(d) Whenever the balance in the Insurance Fund is not sufficient
to cover cashflow in the payment of authorized expenditures, the
department may borrow funds as may be necessary from whatever source
and under terms and conditions as may be determined by the Director
of Finance. Repayment shall be made from revenues received by the
department for the same fiscal year for which the loan is made.
12975.9. (a) The Seismic Safety Account is hereby created as a
special account within the Insurance Fund. Money in the account may
be appropriated by the Legislature for the purposes of this section
to fund the department and the Seismic Safety Commission. Assessments
imposed on insurers as a prorated percentage of premiums earned on
property exposures for both commercial and residential insurance
policies relative to the aggregate premiums earned on those exposures
by all insurers shall be deposited in the account. The premiums
earned for property exposures shall be as stated on lines 4 and 5.1
of the annual statement filed by each insurer pursuant to Section
900. The assessments shall be set annually based on earned premiums
reported for the next preceding year by the department and calculated
so that the funds in the account shall be sufficient to fund
appropriations for support of the Seismic Safety Commission, for the
actual collection and administrative costs of the department, and for
the maintenance of an adequate reserve. The department shall submit
the proposed assessments to the Seismic Safety Commission for its
review at a regularly scheduled meeting of the commission.
(b) No assessment shall be levied on insurers with less than one
hundred thousand dollars ($100,000) of annual direct premiums earned
on property exposures for both commercial and residential insurance
policies. The department may adjust this amount as necessary to
minimize costs by excluding assessment amounts that are too small to
justify the cost of assessment and collection or if assessment or
collection is impractical.
(c) An insurer, in its discretion, may recover this assessment in
an equitable fashion from the insured. The insurer, upon receipt of
an invoice, shall transmit payment to the department for deposit in
the Seismic Safety Account. Any deficiency or excess in the amount
collected in relation to the appropriation authority for the
commission and the department shall be accounted for in the
subsequent annual fee calculation. Any balance remaining in the
Seismic Safety Account at the end of the fiscal year shall be
retained in the account and carried forward to the next fiscal year.
(d) Funds in the Seismic Safety Account shall be distributed, upon
appropriation, to the Seismic Safety Commission for the support of
the commission and to the department for the actual administrative
costs incurred in collecting the assessments.
(e) The department shall report annually to the Legislature, the
Seismic Safety Commission, and the Department of Finance on the
assessment calculation methodology employed.(f) This section shall
become inoperative on July 1, 2012, and, as of January 1, 2013, is
repealed, unless a later enacted statute, that becomes operative on
or before January 1, 2013, deletes or extends the dates on which it
becomes inoperative and is repealed.
12976. All fines, forfeitures, taxes, assessments, and penalties
provided for in this code shall be due and payable on the demand of
the commissioner. If payment is not made within ten days after such
demand, then the commissioner shall institute an action in the name
of the people of the State of California for the purpose of
recovering such moneys due. All such actions shall be subject to all
the provisions of the Code of Civil Procedure which may be applicable
thereto.
12976.5. (a) On and after January 1, 1994, and before January 1,
1995, every insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer. On and
after January 1, 1995, every insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 for completing the electronic funds transfer.
(b) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated. If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
(c) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
(2) If the department finds that an insurer's failure to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (a) is due to reasonable cause or circumstances
beyond the insurer's control, and occurred notwithstanding the
exercise of ordinary care and in the absence of willful neglect, that
insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the department a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.
12977. The commissioner may authorize the refund of money received
or collected by the department in payment for the filing of
applications for licenses, permits or certificates, or for the
rendering of other services:
(a) Where the receipt or collection has resulted in an overpayment
or duplicate payment.
(b) In cases where no payment is required for filing the
application for the license, permit or certificate sought, or for
rendering the other service.
(c) Where an insufficient fee is paid and for which reason the
application for the license, permit or certificate cannot be filed or
the other service cannot be rendered.
(d) The penalty fee required by subdivision (b) of Section 1718
upon a written showing, filed within sixty (60) days after the
delinquency date, with particularity as to facts that late payment
resulted from mistake, inadvertence or excusable neglect.
This section does not exclude the making of refunds under other
appropriate provisions of law requiring the approval of the Director
of General Services before such refunds may be made.
12978. Notwithstanding any other provision of law, the commissioner
may increase or decrease the fees set forth in this code as
necessary to allow the department to meet the appropriation
authorized by the annual Budget Act. However, any increase or
decrease so made shall be made only in accordance with this section,
and a fee increase shall not exceed 10 percent without the prior
approval of the Legislature.
A single annual increase or decrease in fees, on a fiscal year
basis, may be made by the department at any time during the year
provided it is announced by bulletin issued at least 90 days prior to
the effective date of that increase or decrease. The bulletin shall
be sent to all affected parties and to both houses of the
Legislature. That fee increase or decrease may be rescinded by a
majority vote of both houses of the Legislature not later than 60
days after the issuance of the bulletin announcing the increase or
decrease.
In the event the bulletin is issued during the period between
August 1 and December 1 of any year, the department shall provide
notice in writing of the necessity of any fee increase or decrease as
proposed in the bulletin upon issuance of the bulletin to the
chairperson of the committee in each house which considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee.
If written notice is provided to the commissioner within 60 days
of the issuance of the bulletin announcing the increase or decrease
by any of the chairpersons that there is an objection to the fee
increase or decrease, the increase or decrease shall take effect
February 1 of the following year unless rescinded by a majority vote
of both houses of the Legislature by that date, rather than 60 days
after issuance of the bulletin.
The department shall annually project forward its workload for the
subsequent three years in order to project appropriate fee levels,
and shall annually make adjustments to those fees, if necessary,
based on actual workload experience.
The limit on the cumulative amount that the fees may be increased
or decreased shall be the amount necessary to provide sufficient
moneys to carry out the projected workload within the appropriations
contained in the Governor's Budget for the next succeeding fiscal
year, or, to the extent that moneys received or projected to be
received by the department are insufficient to carry out the
projected workload within the appropriation authorized by the annual
Budget Act during the then current fiscal year, an amount necessary
to meet that appropriation and consistent with that projected
workload.
12979. Notwithstanding the provisions of Section 12978, the
commissioner shall establish a schedule of filing fees to be paid by
insurers to cover any administrative or operational costs arising
from the provisions of Article 10 (commencing with Section 1861.01)
of Chapter 9 of Part 2 of Division 1.
12980. The Financial Responsibility Penalty Account is hereby
created in the General Fund. Moneys in the account shall be expended,
upon appropriation therefor, for matters including, but not limited
to, automobile insurance and financial responsibility of vehicle
owners and operators.
12970. The commissioner shall require the payment in advance of a
fee for copying microfilm records in the amount of thirty cents
($0.30) per page.
12970.1. In addition to all other fees required for furnishing
copies of instruments or documents filed in his office, the
commissioner shall require the payment, in lawful money of the United
States, of an amount approximately equal to the postage or other
delivery charges he must pay for delivery of the copies so furnished
if at the request of the person ordering them they are delivered by
any more expensive means than ordinary first-class United States
mail.
12972. The commissioner shall require in advance, in lawful money
of the United States as a fee for attaching his seal of office to any
paper or document not specified in this code, one dollar.
12973. The commissioner shall require in advance, in lawful money
of the United States as a fee for issuing certificates when the fee
is not otherwise specified, sums as follows: (a) where there is
sufficient demand so that the commissioner in his discretion has
prepared a form of the certificate in advance, which requires only
the filling in of blanks for completion, nine dollars ($9); and (b)
for issuing any other certificate, the reasonable cost of preparing
and issuing such certificate, but not to exceed twenty-three dollars
($23) for the first copy of such certificate and nine dollars ($9)
for each additional copy thereof.
12973.5. The commissioner shall charge and collect in advance the
following fees:
(a) For filing any application for a license, permit, or
certificate of authority when a fee for either filing the application
or issuing the license, permit, or certificate is not elsewhere
specified in this code, twenty dollars ($20).
(b) For filing any application to take any qualifying examination
required by this code to be taken by a licensee other than an
insurer, or to be taken by any applicant for a license other than a
certificate of authority when a fee for filing such application or
giving such examination is not elsewhere specified in this code,
twenty-nine dollars ($29).
12973.6. If a check in payment of a tax, fee or penalty is not paid
by the bank on which it is drawn on its first presentation, the
commissioner shall charge and collect an additional fee sufficient to
reimburse him for incurred costs.
12973.7. Where provision for fees or charges for documents,
transcripts, or other materials which may be furnished by the
commissioner is not specifically made in this code, the commissioner
may fix and collect fees therefor not in excess of reasonable cost.
All publications and other printed matter shall be distributed and
sold by the Department of General Services.
12973.9. Whenever by the provisions of this code a form of policy
or certificate and any endorsement, rider, application, amendment,
fill-in material, classification of rates, certificate or premium to
be used therewith, is required to be filed with, submitted to, or
approved by the commissioner, fees as provided for by this section
shall be paid to the commissioner to cover the expenses of processing
and indexing the same and maintaining copies of the same.
The required fee shall be prescribed by the commissioner for each
type document submitted, depending on its nature and the kind of
processing required. The commissioner may prescribe different fees
for different types of documents, and in the case of documents
submitted for approval or authorization of use, shall prescribe a fee
only for the final approval or authorization for use, if any. The
commissioner shall determine the fee, or fees, by estimating in
advance the commissioner's total costs of performing these services
for all types of documents for a specified period of time, estimating
the total number of documents of various kinds which will be
submitted for processing during such time and equitably distributing
the total cost on a per document basis. The commissioner shall, after
notice and hearing, promulgate such reasonable rules and regulations
as are necessary to establish the standard or standards by which the
commissioner shall determine the original fee schedule or any
amended fee schedule. Any rule or regulation shall be promulgated in
accordance with the procedure provided in Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code and shall be effective 90 days after adoption by the
commissioner, except the first fee schedule adopted by the
commissioner under such regulation may be retroactive to the
effective date of this section.
All fees received by the commissioner under this section shall be
remitted to the credit of the Insurance Fund pursuant to the
provisions of Section 12975.7.
Without in any manner affecting the applicability of this section
to any other provisions of this code, it is expressly provided herein
that the provisions of this section apply to the forms required to
be filed, submitted, or approved under the following sections of this
code: 779.8, 795.5, 1320, 9080.1, 10205, 10225, 10270, 10270.1,
10270.5, 10270.57, 10270.9, 10270.93, 10290, 10292, 10506, 11027,
11029, 11066, 11069, 11513, 11522, 11658, 12250, and 12640.18.
12975. Whenever, by the provisions of this code a duty, right,
privilege or power is imposed or conferred upon the commissioner, but
it is provided that the expense of performance of such duty or
exercise of such right, privilege or power is to be paid in advance
or otherwise out of sources other than the Insurance Fund, the
commissioner may defray such expense or any portion thereof out of
the appropriation for the support of the Department of Insurance
without regard to prospect of repayment. The repayment of such
moneys, not to exceed seven hundred fifty dollars ($750) shall be a
debt of and a lien against the assets of every person otherwise
chargeable with such payment and shall constitute a preferred claim
in all proceedings in bankruptcy or insolvency to the same extent as
claims for compensation due employees for wages and salaries and
claims for expenses of conservatorship or liquidation in proceedings
under Article 14 (commencing with Section 1010), Chapter 1, Part 2,
Division 1 of this code.
12975.1. All examination expense moneys collected by the Department
of Insurance under the provisions of Sections 736, 1061, and 1857.4
are hereby appropriated to the department and shall be deposited in
the Insurance Fund to the credit of the support appropriation for the
department current at the time of the deposit.
12975.5. The commissioner may in any investigation or hearing
conducted by him take or cause to be taken the deposition of any
witness residing within or without this state and may pay the expense
thereof out of the current support appropriation of the department.
He may pay out of such appropriation to any witness subpoenaed by him
the necessary and reasonable traveling expenses of any such witness,
to the place of hearing or investigation and return and a per diem
of twelve dollars ($12) for each day that such witness is in
attendance at or en route to and from such place of hearing or
investigation in obedience to such subpoena. The provisions of this
section shall not apply to proceedings conducted in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, such proceedings to be governed
solely by said chapter.
12975.7. (a) All moneys received by the commissioner in payment of
lawful fees or reimbursements pursuant to this code shall be
transmitted to the Treasurer to be deposited in the State Treasury to
the credit of the Insurance Fund. Unless specified in this code to
be deposited in a different fund, all moneys received by the
commissioner in fines, penalties, assessments, costs, or other
sanctions shall be transmitted to the State Treasury for deposit in
the General Fund.
(b) The money in the Insurance Fund received from the commissioner
pursuant to this section is hereby appropriated to pay the refunds
authorized by this code.
(c) The balance of the money in the Insurance Fund shall be used
for the purposes specified in Section 12975.9, for the support of the
Department of Insurance as authorized by the Budget Act, and for
related cashflow needs.
12975.8. (a) The Insurance Fund shall, in addition to the funds
specified in Section 12975.7, consist of all of the following:
(1) All moneys appropriated to the fund in accordance with law.
(2) All moneys deposited into the State Treasury from any source
whatever in payment of lawful fees or reimbursements collected by the
Department of Insurance.
(3) The balance remaining in the Insurance Fund at the end of the
fiscal year, whether the moneys received are from an appropriation,
fees, or from reimbursements for services rendered.
(b) (1) All moneys in the Insurance Fund credited to the Seismic
Safety Account shall be subject to an annual appropriation each
fiscal year for the purposes specified in Section 12975.9.
(2) All other moneys in the Insurance Fund shall be subject to an
annual appropriation each fiscal year for the support of the
Department of Insurance.
(3) If the current cash balance in the Seismic Safety Account is
not adequate to fund the amount appropriated from it in the annual
Budget Act, the Insurance Fund, upon enactment of the Budget Act,
shall loan to the account the amount of the appropriation, and one
half of this amount shall be transferred to the Seismic Safety
Commission. The second half of the appropriated amount shall be
transferred to the Seismic Safety Commission from the Seismic Safety
Account on or before December 31 of each year. This loan shall be
repaid by revenues collected pursuant to Section 12975.9.
(c) Any balance remaining in the Insurance Fund at the end of the
fiscal year may be carried forward to the next succeeding fiscal
year.
(d) Whenever the balance in the Insurance Fund is not sufficient
to cover cashflow in the payment of authorized expenditures, the
department may borrow funds as may be necessary from whatever source
and under terms and conditions as may be determined by the Director
of Finance. Repayment shall be made from revenues received by the
department for the same fiscal year for which the loan is made.
12975.9. (a) The Seismic Safety Account is hereby created as a
special account within the Insurance Fund. Money in the account may
be appropriated by the Legislature for the purposes of this section
to fund the department and the Seismic Safety Commission. Assessments
imposed on insurers as a prorated percentage of premiums earned on
property exposures for both commercial and residential insurance
policies relative to the aggregate premiums earned on those exposures
by all insurers shall be deposited in the account. The premiums
earned for property exposures shall be as stated on lines 4 and 5.1
of the annual statement filed by each insurer pursuant to Section
900. The assessments shall be set annually based on earned premiums
reported for the next preceding year by the department and calculated
so that the funds in the account shall be sufficient to fund
appropriations for support of the Seismic Safety Commission, for the
actual collection and administrative costs of the department, and for
the maintenance of an adequate reserve. The department shall submit
the proposed assessments to the Seismic Safety Commission for its
review at a regularly scheduled meeting of the commission.
(b) No assessment shall be levied on insurers with less than one
hundred thousand dollars ($100,000) of annual direct premiums earned
on property exposures for both commercial and residential insurance
policies. The department may adjust this amount as necessary to
minimize costs by excluding assessment amounts that are too small to
justify the cost of assessment and collection or if assessment or
collection is impractical.
(c) An insurer, in its discretion, may recover this assessment in
an equitable fashion from the insured. The insurer, upon receipt of
an invoice, shall transmit payment to the department for deposit in
the Seismic Safety Account. Any deficiency or excess in the amount
collected in relation to the appropriation authority for the
commission and the department shall be accounted for in the
subsequent annual fee calculation. Any balance remaining in the
Seismic Safety Account at the end of the fiscal year shall be
retained in the account and carried forward to the next fiscal year.
(d) Funds in the Seismic Safety Account shall be distributed, upon
appropriation, to the Seismic Safety Commission for the support of
the commission and to the department for the actual administrative
costs incurred in collecting the assessments.
(e) The department shall report annually to the Legislature, the
Seismic Safety Commission, and the Department of Finance on the
assessment calculation methodology employed.(f) This section shall
become inoperative on July 1, 2012, and, as of January 1, 2013, is
repealed, unless a later enacted statute, that becomes operative on
or before January 1, 2013, deletes or extends the dates on which it
becomes inoperative and is repealed.
12976. All fines, forfeitures, taxes, assessments, and penalties
provided for in this code shall be due and payable on the demand of
the commissioner. If payment is not made within ten days after such
demand, then the commissioner shall institute an action in the name
of the people of the State of California for the purpose of
recovering such moneys due. All such actions shall be subject to all
the provisions of the Code of Civil Procedure which may be applicable
thereto.
12976.5. (a) On and after January 1, 1994, and before January 1,
1995, every insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer. On and
after January 1, 1995, every insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 for completing the electronic funds transfer.
(b) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated. If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
(c) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
(2) If the department finds that an insurer's failure to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (a) is due to reasonable cause or circumstances
beyond the insurer's control, and occurred notwithstanding the
exercise of ordinary care and in the absence of willful neglect, that
insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the department a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.
12977. The commissioner may authorize the refund of money received
or collected by the department in payment for the filing of
applications for licenses, permits or certificates, or for the
rendering of other services:
(a) Where the receipt or collection has resulted in an overpayment
or duplicate payment.
(b) In cases where no payment is required for filing the
application for the license, permit or certificate sought, or for
rendering the other service.
(c) Where an insufficient fee is paid and for which reason the
application for the license, permit or certificate cannot be filed or
the other service cannot be rendered.
(d) The penalty fee required by subdivision (b) of Section 1718
upon a written showing, filed within sixty (60) days after the
delinquency date, with particularity as to facts that late payment
resulted from mistake, inadvertence or excusable neglect.
This section does not exclude the making of refunds under other
appropriate provisions of law requiring the approval of the Director
of General Services before such refunds may be made.
12978. Notwithstanding any other provision of law, the commissioner
may increase or decrease the fees set forth in this code as
necessary to allow the department to meet the appropriation
authorized by the annual Budget Act. However, any increase or
decrease so made shall be made only in accordance with this section,
and a fee increase shall not exceed 10 percent without the prior
approval of the Legislature.
A single annual increase or decrease in fees, on a fiscal year
basis, may be made by the department at any time during the year
provided it is announced by bulletin issued at least 90 days prior to
the effective date of that increase or decrease. The bulletin shall
be sent to all affected parties and to both houses of the
Legislature. That fee increase or decrease may be rescinded by a
majority vote of both houses of the Legislature not later than 60
days after the issuance of the bulletin announcing the increase or
decrease.
In the event the bulletin is issued during the period between
August 1 and December 1 of any year, the department shall provide
notice in writing of the necessity of any fee increase or decrease as
proposed in the bulletin upon issuance of the bulletin to the
chairperson of the committee in each house which considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee.
If written notice is provided to the commissioner within 60 days
of the issuance of the bulletin announcing the increase or decrease
by any of the chairpersons that there is an objection to the fee
increase or decrease, the increase or decrease shall take effect
February 1 of the following year unless rescinded by a majority vote
of both houses of the Legislature by that date, rather than 60 days
after issuance of the bulletin.
The department shall annually project forward its workload for the
subsequent three years in order to project appropriate fee levels,
and shall annually make adjustments to those fees, if necessary,
based on actual workload experience.
The limit on the cumulative amount that the fees may be increased
or decreased shall be the amount necessary to provide sufficient
moneys to carry out the projected workload within the appropriations
contained in the Governor's Budget for the next succeeding fiscal
year, or, to the extent that moneys received or projected to be
received by the department are insufficient to carry out the
projected workload within the appropriation authorized by the annual
Budget Act during the then current fiscal year, an amount necessary
to meet that appropriation and consistent with that projected
workload.
12979. Notwithstanding the provisions of Section 12978, the
commissioner shall establish a schedule of filing fees to be paid by
insurers to cover any administrative or operational costs arising
from the provisions of Article 10 (commencing with Section 1861.01)
of Chapter 9 of Part 2 of Division 1.
12980. The Financial Responsibility Penalty Account is hereby
created in the General Fund. Moneys in the account shall be expended,
upon appropriation therefor, for matters including, but not limited
to, automobile insurance and financial responsibility of vehicle
owners and operators.
