Bill Text: CA SB1347 | 2011-2012 | Regular Session | Amended
Bill Title: Workers' compensation: insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-04-19 - Set, first hearing. Hearing canceled at the request of author. [SB1347 Detail]
Download: California-2011-SB1347-Amended.html
BILL NUMBER: SB 1347 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 29, 2012
INTRODUCED BY Senator Vargas
FEBRUARY 24, 2012
An act to add Article 2.2 (commencing with Section 3735) to
Chapter 4 of Part 1 of Division 4 of the Labor Code, relating to
workers' compensation , and making an appropriation therefor
.
LEGISLATIVE COUNSEL'S DIGEST
SB 1347, as amended, Vargas. Workers' compensation: insurance.
Existing workers' compensation law generally requires employers to
secure the payment of workers' compensation, including medical
treatment, for injuries incurred by their employees that arise out
of, or in the course of, employment. Existing law generally requires
that every employer except the state secure the payment of
compensation by being insured against liability to pay compensation
by one or more insurers duly authorized to write compensation
insurance in this state, or by securing from the Director of
Industrial Relations a certificate of consent to self-insure against
workers' compensation claims, as specified. Existing law establishes
the Uninsured Employers Benefits Trust Fund, a continuously
appropriated fund, for the purpose of paying nonadministrative
expenses of the workers' compensation program for workers injured
while employed by uninsured employers, as specified.
This bill would require the Director of Industrial Relations to
designate a nonprofit mutual benefit corporation, defined by the bill
as a reporting group, for the purposes of providing information
regarding the administration, costs, and policy impacts of
legislative and market changes in the administration of workers'
compensation programs and benefits to injured employees of public
self-insurers. The bill would establish a board of directors to
govern the reporting group, initially consisting of up to 7
9 specified members, appointed by the California
Association of Joint Powers Authority
Authorities, the California State Association of
Counties (CSAC) Excess Insurance Authority, and other
unspecified entities.
This bill would require the Director of Industrial Relations to
transfer $2,000,000 by August 1, 2013, and by August 1 of each year
thereafter, to the reporting group. By authorizing the Uninsured
Employers Benefits Trust Fund to be used for a new purpose, this bill
would make an appropriation.
This bill would prohibit the reporting group from engaging in
lobbying activities, as specified. The bill would require the
reporting group to annually obtain an audit of its financial affairs
from an independent certified public accountant and to deliver a copy
of the audit to the Director of Industrial Relations and to each
member of the reporting group.
The bill would require that the reporting group not be considered
a public agency or an agency of the state for any purpose.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) It is the intent of the Legislature in enacting
this article to designate a nonprofit corporation as a statistical
agent for public sector self-insurers to provide information and
reports on public sector workers' compensation benefits payments and
facilitate the collection and analysis of statistical information
from the public employer claims administration process.
(b) The Legislature finds and declares that the collection of
meaningful and relevant information and data about the experience and
effects of self-insured public entity workers' compensation policies
is necessary to the efficient and effective administration of a
complete system of workers' compensation, as specified by Section 4
of Article XIV of the California Constitution, which requires, among
other things, adequate provisions for the comfort, health, safety,
and general welfare of any and all workers and those dependent upon
them for support to the extent of relieving them from the
consequences of any injury or death, and full provision for adequate
insurance coverage against liability to pay or furnish compensation.
SEC. 2. Article 2.2 (commencing with Section 3735) is added to
Chapter 4 of Part 1 of Division 4 of the Labor Code, to read:
Article 2.2. Self-Insurers Reporting Group
3735. As used in this article, the following definitions apply:
(a) "Data collection" means collection of information regarding
the administration, costs, and policy impacts of legislative and
market changes in the administration of workers' compensation
programs and benefits to injured employees of public self-insurers.
(b) "Director" means the Director of Industrial Relations.
(c) "Public self-insurer" means a public-entity employer that has
secured the payment of compensation pursuant to subdivision (c) of
Section 3700.
(d) "Reporting group" means a nonprofit reporting entity
designated by the Director of Industrial Relations to provide
relevant information and data on the costs, benefits, administration,
and experience of public self-insurers of workers' compensation
benefits.
3735.5. (a) The reporting group shall be a nonprofit mutual
benefit corporation organized for data collection purposes pursuant
to Part 3 (commencing with Section 7110) of Division 2 of Title 1 of
the Corporations Code and this article. If any provision of the
applicable state law governing nonprofit mutual benefit corporations
conflicts with any provision of this article, the provisions of this
article shall apply.
(b) The reporting group shall be governed by a board of directors
of up to seven nine voting members
who are all residents of the State of California, have expertise in
the field of workers' compensation risk management, and are
constituted as follows:
(1) One member shall be appointed by the California Association of
Joint Powers Authorities.
(2) One member shall be appointed by the California State
Association of Counties (CSAC) Excess Insurance Authority.
(2)
(3) One member shall be a resident of
from the State of California at large
.
(3)
(4) One member shall be from a
represent a city with entity in a city
with a population of at least 250,000.
(4)
(5) One member shall be from a
represent a county with entity in a
county with a population of at least 1,000,000.
(5)
(6) One member shall be from
represent a postsecondary educational institution.
(7) One member shall represent a school district or county office
of education.
(6)
(8) At the discretion of the board, two additional
members who are representatives of public self-insurers may be
appointed, and one employee of a school district or county
office of education may be appointed, provided that after
the additional appointments the board has an odd number of voting
members.
(7)
(9) The Director of Industrial Relations shall hold an
ex officio and nonvoting membership on the board of directors. The
director, or the director's authorized designee, shall not have a
fiduciary duty to the reporting group. The director, or his or her
authorized designee, shall not be counted for purposes of determining
a quorum of the board.
(c) The initial appointments for members appointed pursuant to
subdivision (b) shall be either two or three years, to be drawn by
random lot at the first meeting. If the board consists of
five seven members, three
four members shall serve two-year terms and two
three shall serve three-year terms. If the board
consists of seven nine members,
four five members shall serve two-year
terms and three four shall serve
three-year terms. Thereafter, the members shall be elected by the
reporting group. Members elected by the reporting group shall serve
terms of three years each until the election and qualification of
their respective successors.
(d) The reporting group shall adopt bylaws to effectuate the
purposes of this article and carry out its duties, including any
duties imposed by the Director of Industrial Relations pursuant to
Section 3736.5 3736 . The reporting
group may discharge its duties either directly or by contract and may
purchase services and insurance and borrow funds as necessary for
the protection of its members and their employees. The reporting
group may receive and disclose confidential information about the
claims submitted to public self-insurers from or to the director and
the Department of Industrial Relations. The reporting group and the
director shall develop and implement protocols and procedures
regarding the receipt, disclosure, and retention of all confidential
information.
(e) The Legislature finds, pursuant to Section 19130 of the
Government Code, that the duties conducted by the reporting group
established pursuant to this article constitute a new state function.
3736. The Director of Industrial Relations shall allocate to the
reporting group two million dollars ($2,000,000) by August 1, 2013,
and no later than August 1 of each administration year thereafter
from the Uninsured Employers Benefits Trust Fund for the purpose of
facilitating the reporting group's reporting obligations. After the
first allocation of two million dollars ($2,000,000), annual
allocations shall be adjusted for inflation.
3736.5. 3736. (a) The reporting
group shall serve as the designated statistical agent for workers'
compensation claims of public self-insurers, and shall provide data
collection services to the Director of Industrial Relations.
(b) The reporting group shall provide to the director any
information in its possession that the director may request for the
purpose of calculating assessments levied on public self-insurers.
(c) The reporting group may obtain any information from the
workers' compensation information system maintained by the Division
of Workers' Compensation on any public self-insurer or former public
self-insurer to carry out the purposes of this article.
(d) The reporting group may analyze and prepare statistical
reports with its employees or it may enter into contracts with
independent contractors for that purpose. All final reports prepared
by the reporting group shall be publicly available and shall be
posted on an Internet Web site to be maintained by the reporting
group.
(e) In an annual report to the director, to be delivered to the
director at the time that the director shall specify, the reporting
group shall identify and account for all allocations received from
the director, any revenues received by the reporting group, and all
costs and expenditures made by the reporting group in furtherance of
the purposes of this article.
(f) The reporting group shall not engage in any of the activities
of a lobbyist employer, as described in Section 82309.5 of the
Government Code.
3737. 3736.5. The reporting group
annually shall obtain an audit of its financial affairs from an
independent certified public accountant and shall deliver a copy of
the audit to the Director of Industrial Relations and to each member
of the reporting group.
3737.5. 3737. The reporting group
shall not be considered a public agency or an agency of the State of
California for any purpose.
