California Senate Bill SB1424 Amended / Bill

 BILL NUMBER: SB 1424AMENDED BILL TEXT AMENDED IN SENATE MARCH 28, 2016 INTRODUCED BY Senator Wieckowski FEBRUARY 19, 2016  An act to amend Section 700 of the Corporations Code, relating to corporations.   An act to amend Section 11580.17 of the Insurance Code, relating to insurance.  LEGISLATIVE COUNSEL'S DIGEST SB 1424, as amended, Wieckowski.  Shareholder voting.   Insurance.   Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the department's powers and duties. Existing law prohibits the department from prohibiting an insurer from inspecting a motor vehicle prior to issuing collision or comprehensive coverage for the vehicle. Existing law also requires an insurer conducting these inspections to inspect every motor vehicle for which coverage is requested except new motor vehicles and motor vehicles previously insured. Existing law requires the inspection to be done by the insurer or its agent, and to be performed not more than 20 miles from the address where the vehicle is insured.   This bill would allow the above inspection to be performed not more than 25 miles from the address where the vehicle is insured.   Existing law, the General Corporation Law, authorizes a corporation to issue one or more classes or series of shares with full, limited, or no voting rights and with such other rights, preferences, privileges and restrictions as are stated or authorized in articles of incorporation of that corporation. Existing law generally provides that each outstanding share is entitled to one vote on each matter submitted to a vote of shareholders.   This bill would make nonsubstantive changes to this provision.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 11580.17 of the   Insurance Code   is amended to read:  11580.17. The department shall not prohibit an insurer from electing to inspect physically a motor vehicle for purposes of issuing a policy for collision or comprehensive coverage. The inspection of the motor vehicle shall be at no cost to the insured. The information ascertained from that inspection may only be used to determine the extent of insurability for collision or comprehensive coverage for the motor vehicle. If an insurer elects to conduct an inspection prior to offering comprehensive and collision insurance pursuant to this section, the insurer shall inspect every motor vehicle for which coverage is requested if the vehicle was not previously insured under a policy of comprehensive and collision coverage. An insurer may exempt from this requirement new motor vehicles if a copy of the sales contract is delivered to the insurer within five business days of the purchase of the new motor vehicle. The inspection shall be done by the insurer or its agent, and shall be performed not more than  20   25  miles from the address where the vehicle is insured, and during normal business hours.  SECTION 1.   Section 700 of the Corporations Code is amended to read: 700. (a) Except as provided in Section 708 and except as may be otherwise provided in the articles, each outstanding share, regardless of class, shall be entitled to one vote on each matter submitted to a vote of shareholders. (b) Any holder of shares entitled to vote on any matter may vote part of the shares in favor of the proposal and refrain from voting the remaining shares or vote them against the proposal, other than elections to office, but, if the shareholder fails to specify the number of shares the shareholder is voting affirmatively, it will be conclusively presumed that the shareholder's approving vote is with respect to all shares the shareholder is entitled to vote.