NU Online News Service, May 9, 3:40 p.m. EDT--California Assemblyman Mark Ridley-Thomas, D-Los Angeles, has withdrawn his bill mandating insurance industry community redevelopment investments from consideration this year.
Vincent Harris, chief of staff to Mr. Ridley-Thomas, said the bill was withdrawn to allow the California Department of Insurance to conduct a data call of state licensed insurers regarding their investment practices.
"Many of the insurers claim they already invest in the state and that the one percent would be a burden," Mr. Harris said. "And the advocates claim the figure is way too low."
Mr. Harris said the results of the data call should be available within the next few weeks and based on that information a decision will be made whether or not to revise the bill, or drop it altogether next year.
Meanwhile, the life and property-casualty insurance sector are providing stiff opposition to the bill.
Christian John Rataj, state affairs manager for the National Association of Mutual Insurance Companies, said AB 925 is "flawed" from a public policy standpoint.
"The bill is unnecessary since the insurance industry already invests a significant amount of money toward urban development and other areas of the state throughout California," he said.
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