Amended IN Senate July 03, 2018 Amended IN Assembly March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2142Introduced by Assembly Member BigelowFebruary 12, 2018 An act to amend Section 12752 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 2142, as amended, Bigelow. Insurance: home protection companies.Existing law regulates home protection companies, which issue contracts for the repair or replacement of a component, system, or appliance of a home. Existing law requires a home protection company to file an annual statement exhibiting its conditions and affairs, as specified, and an annual statement of financial condition. Existing law requires a home protection company to maintain a reserve for unearned premiums in an amount not less than 40% of the aggregate premiums charged on its current contracts. Existing law also requires a home protection company that has issued or renewed 1,000 or less contracts in the preceding calender year to maintain a minimum net worth of $40,000, and for each additional 500 contracts up to 10,000 contracts, an additional $20,000. Existing law requires the Insurance Commissioner to examine the affairs of a home protection company before licensure and at other times as appears necessary, and prohibits the commissioner from conducting more than one financial examination of a home protection company in a 5-year period, unless specified requirements are met.This bill would prohibit the commissioner from conducting a financial examination of a home protection company if the companys most recent annual statement of financial condition shows the company maintains more than twice the reserves or net worth required by law and if the company president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the companys reserves and accounts, or net worth, as specified. The bill would provide that the accounts, or net worth, are subject to verification by the Department of Insurance. By requiring the affidavit to be executed under penalty of perjury, the bill would expand the crime of perjury, and thus impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would authorize the commissioner to extend the period between examinations up to 2 additional years if the commissioner determines that conditions warrant the extension, as specified. The bill would require the commissioner to provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 12752 of the Insurance Code is amended to read:12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:(1) The companys reserves.(2) The companys net worth.(3) Any other factors the commissioner considers relevant.(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
Amended IN Senate July 03, 2018 Amended IN Assembly March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2142Introduced by Assembly Member BigelowFebruary 12, 2018 An act to amend Section 12752 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 2142, as amended, Bigelow. Insurance: home protection companies.Existing law regulates home protection companies, which issue contracts for the repair or replacement of a component, system, or appliance of a home. Existing law requires a home protection company to file an annual statement exhibiting its conditions and affairs, as specified, and an annual statement of financial condition. Existing law requires a home protection company to maintain a reserve for unearned premiums in an amount not less than 40% of the aggregate premiums charged on its current contracts. Existing law also requires a home protection company that has issued or renewed 1,000 or less contracts in the preceding calender year to maintain a minimum net worth of $40,000, and for each additional 500 contracts up to 10,000 contracts, an additional $20,000. Existing law requires the Insurance Commissioner to examine the affairs of a home protection company before licensure and at other times as appears necessary, and prohibits the commissioner from conducting more than one financial examination of a home protection company in a 5-year period, unless specified requirements are met.This bill would prohibit the commissioner from conducting a financial examination of a home protection company if the companys most recent annual statement of financial condition shows the company maintains more than twice the reserves or net worth required by law and if the company president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the companys reserves and accounts, or net worth, as specified. The bill would provide that the accounts, or net worth, are subject to verification by the Department of Insurance. By requiring the affidavit to be executed under penalty of perjury, the bill would expand the crime of perjury, and thus impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would authorize the commissioner to extend the period between examinations up to 2 additional years if the commissioner determines that conditions warrant the extension, as specified. The bill would require the commissioner to provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO
Amended IN Senate July 03, 2018 Amended IN Assembly March 19, 2018
Amended IN Senate July 03, 2018
Amended IN Assembly March 19, 2018
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2142
Introduced by Assembly Member BigelowFebruary 12, 2018
Introduced by Assembly Member Bigelow
February 12, 2018
An act to amend Section 12752 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2142, as amended, Bigelow. Insurance: home protection companies.
Existing law regulates home protection companies, which issue contracts for the repair or replacement of a component, system, or appliance of a home. Existing law requires a home protection company to file an annual statement exhibiting its conditions and affairs, as specified, and an annual statement of financial condition. Existing law requires a home protection company to maintain a reserve for unearned premiums in an amount not less than 40% of the aggregate premiums charged on its current contracts. Existing law also requires a home protection company that has issued or renewed 1,000 or less contracts in the preceding calender year to maintain a minimum net worth of $40,000, and for each additional 500 contracts up to 10,000 contracts, an additional $20,000. Existing law requires the Insurance Commissioner to examine the affairs of a home protection company before licensure and at other times as appears necessary, and prohibits the commissioner from conducting more than one financial examination of a home protection company in a 5-year period, unless specified requirements are met.This bill would prohibit the commissioner from conducting a financial examination of a home protection company if the companys most recent annual statement of financial condition shows the company maintains more than twice the reserves or net worth required by law and if the company president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the companys reserves and accounts, or net worth, as specified. The bill would provide that the accounts, or net worth, are subject to verification by the Department of Insurance. By requiring the affidavit to be executed under penalty of perjury, the bill would expand the crime of perjury, and thus impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would authorize the commissioner to extend the period between examinations up to 2 additional years if the commissioner determines that conditions warrant the extension, as specified. The bill would require the commissioner to provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
Existing law regulates home protection companies, which issue contracts for the repair or replacement of a component, system, or appliance of a home. Existing law requires a home protection company to file an annual statement exhibiting its conditions and affairs, as specified, and an annual statement of financial condition. Existing law requires a home protection company to maintain a reserve for unearned premiums in an amount not less than 40% of the aggregate premiums charged on its current contracts. Existing law also requires a home protection company that has issued or renewed 1,000 or less contracts in the preceding calender year to maintain a minimum net worth of $40,000, and for each additional 500 contracts up to 10,000 contracts, an additional $20,000. Existing law requires the Insurance Commissioner to examine the affairs of a home protection company before licensure and at other times as appears necessary, and prohibits the commissioner from conducting more than one financial examination of a home protection company in a 5-year period, unless specified requirements are met.
This bill would prohibit the commissioner from conducting a financial examination of a home protection company if the companys most recent annual statement of financial condition shows the company maintains more than twice the reserves or net worth required by law and if the company president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the companys reserves and accounts, or net worth, as specified. The bill would provide that the accounts, or net worth, are subject to verification by the Department of Insurance. By requiring the affidavit to be executed under penalty of perjury, the bill would expand the crime of perjury, and thus impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would authorize the commissioner to extend the period between examinations up to 2 additional years if the commissioner determines that conditions warrant the extension, as specified. The bill would require the commissioner to provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 12752 of the Insurance Code is amended to read:12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:(1) The companys reserves.(2) The companys net worth.(3) Any other factors the commissioner considers relevant.(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 12752 of the Insurance Code is amended to read:12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:(1) The companys reserves.(2) The companys net worth.(3) Any other factors the commissioner considers relevant.(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
SECTION 1. Section 12752 of the Insurance Code is amended to read:
### SECTION 1.
12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:(1) The companys reserves.(2) The companys net worth.(3) Any other factors the commissioner considers relevant.(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:(1) The companys reserves.(2) The companys net worth.(3) Any other factors the commissioner considers relevant.(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:(1) The companys reserves.(2) The companys net worth.(3) Any other factors the commissioner considers relevant.(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
12752. (a) A home protection company shall file an annual statement exhibiting its conditions and affairs in accordance with Sections 900, 900.5, 900.8, 900.9, 902, 903, 903.5, 904, 922.1 to 922.8, inclusive, 923, 923.5, and 924. However, the required contents of the annual statement may vary from the requirements thereof, pursuant to regulations adopted by the commissioner in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, so as to adapt the requirements to the home protection business. This subdivision shall not be construed to limit the authority of the commissioner to request financial statements from licensees at any time.
(b) The commissioner shall, before licensure and at other times as appears necessary, examine the business and affairs of a home protection company subject to this part. A home protection company so examined shall open its books and records for inspection by the commissioner and shall otherwise facilitate and cooperate in the examination. In making the examination, the commissioner shall have the rights specified in Section 733, and the examinee shall be subject to the obligations of Section 736. The commissioner shall not conduct more than one financial examination of a company in a five-year period, unless the commissioner finds that the financial condition of the company has deteriorated, thereby warranting an interim examination.
(c)The commissioner shall not conduct a fiscal examination pursuant to subdivision (b) if both of the following apply:
(1)A home protection companys most recent annual statement of financial condition filed with the commissioner pursuant to subdivision (b) of Section 12745 shows the company maintains more than twice the reserves required pursuant to Section 12753, or maintains twice the net worth required by Section 12750.
(2)The home protection companys president and treasurer provide, upon prior written request, an affidavit under penalty of perjury attesting to the reserves and the financial institution account or accounts in which the reserves are held, or attesting to the required net worth. The account or accounts, or net worth, shall be subject to verification by the department.
(c) The commissioner may extend the period between examinations up to two additional years if the commissioner determines that conditions warrant the extension. In making that determination, the commissioner may consider all of the following factors:
(1) The companys reserves.
(2) The companys net worth.
(3) Any other factors the commissioner considers relevant.
(d) The commissioner shall provide to the Senate Insurance Committee and the Assembly Committee on Insurance a summary of the steps taken and the procedures streamlined to reduce examination costs for home protection companies.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.