BILL NUMBER: AB 3072	CHAPTERED  07/21/06

	CHAPTER  112
	FILED WITH SECRETARY OF STATE  JULY 21, 2006
	APPROVED BY GOVERNOR  JULY 21, 2006
	PASSED THE SENATE  JUNE 29, 2006
	PASSED THE ASSEMBLY  MAY 18, 2006

INTRODUCED BY   Committee on Insurance (Vargas (Chair), Benoit (Vice
Chair), Calderon, Karnette, Nava, and Umberg)

                        MARCH 15, 2006

   An act to amend Section 1063.75 of the Insurance Code, relating to
workers' compensation insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3072, Committee on Insurance  California Insurance Guarantee
Association.
   Existing law establishes a workers' compensation system to
compensate an employee for injuries incurred arising out of or in the
course of employment.
   Existing law further establishes the California Insurance
Guarantee Association (CIGA) for specified purposes related to the
payment of obligations of insurers. Under existing law, any bonds
issued at the request of CIGA to provide funds for payment workers'
compensation claims must be issued prior to January 1, 2007.
   This bill would extend the date for bond issuance to January 1,
2009.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1063.75 of the Insurance Code is amended to
read:
   1063.75.  Any bonds issued to provide funds for covered claim
obligations for workers' compensation claims shall be issued prior to
January 1, 2009, in an aggregate principal amount outstanding at any
one time not to exceed $1.5 billion, and any bonds issued or issued
to refund bonds shall not have a final maturity exceeding 20 years
from the date of issuance. The bonds shall be issued at the request
of CIGA, shall be in the form, shall bear the date or dates, and
shall mature at the time or times as the indenture authorized by the
request may provide. The bonds may be issued in one or more series,
as serial bonds or as term bonds, or as a combination thereof, and,
notwithstanding any other provision of law, the amount of principal
of, or interest on, bonds maturing at each date of maturity need not
be equal. The bonds shall bear interest at the rate or rates,
variable or fixed or a combination thereof, be in the denominations,
be in the form, either coupon or registered, carry the registration
privileges, be executed in the manner, be payable in the medium of
payment at the place or places within or without the state, be
subject to the terms of redemption, contain the terms and conditions,
and be secured by the covenants as the indenture may provide. The
indenture may provide for the proceeds of the bonds and funds
securing the bonds to be invested in any securities and investments,
including investment agreements, as specified therein. CIGA may enter
into or authorize any ancillary obligations or derivative agreements
as it determines necessary or desirable to manage interest rate risk
or security features related to the bonds. The bonds shall be sold
at public or private sale by the Treasurer at, above, or below the
principal amount thereof, on the terms and conditions and for the
consideration in the medium of payment that the Treasurer shall
determine prior to the sale.