SB 1347

Bill Subjects

Abstract

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 9 specified members, appointed by the California Association of Joint Powers Authorities, the California State Association of Counties (CSAC) Excess Insurance Authority, and other unspecified entities. 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.