BILL NUMBER: AB 1263	CHAPTERED
	BILL TEXT

	CHAPTER  53
	FILED WITH SECRETARY OF STATE  JULY 1, 2011
	APPROVED BY GOVERNOR  JUNE 29, 2011
	PASSED THE SENATE  JUNE 11, 2011
	PASSED THE ASSEMBLY  MAY 5, 2011
	AMENDED IN ASSEMBLY  APRIL 7, 2011

INTRODUCED BY   Assembly Member Williams

                        FEBRUARY 18, 2011

   An act to add Section 11785.5 to the Insurance Code, relating to
the State Compensation Insurance Fund.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1263, Williams. State Compensation Insurance Fund: directors
and officers: postemployment.
   Existing law provides for the existence of the State Compensation
Insurance Fund to be administered by a board of directors for the
purpose of transacting workers' compensation insurance, and insurance
against the expense of defending any suit for serious and willful
misconduct, against an employer or his or her agent, and insurance to
employees and other persons of the compensation fixed by the workers'
compensation laws for employees and their dependents.
   Existing law provides that the board of directors shall appoint a
president, a chief financial officer, a chief operating officer, a
chief information technology officer, a chief investment officer, a
chief risk officer, and a general counsel. The positions are subject
to the Milton Marks Postgovernment Employment Restrictions Act of
1990 which, among other things, prohibits specified employees,
officers, and consultants, for one year after leaving office or
employment, from engaging in specified activities for the purpose of
influencing administrative or legislative action. This provision is
an exception to the general rule that contracts in restraint of trade
are void and unenforceable.
   This bill would prohibit the members of the fund's board of
directors and fund officers appointed by the board from lobbying the
fund for 2 years after leaving the fund. The bill would require that
any consulting for the fund by former members of the fund's board of
directors and former fund officers, who had been appointed by the
board, be approved by the board.


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

  SECTION 1.  The Legislature hereby finds and declares the
following:
   (a) The State Compensation Insurance Fund is a nonprofit,
self-supporting, fairly competitive public enterprise that serves a
dual role as both a market of choice and the safety net for
California employers seeking workers' compensation insurance.
   (b) The State Compensation Insurance Fund plays a critical role in
California's workers' compensation system.
  SEC. 2.  Section 11785.5 is added to the Insurance Code, to read:
   11785.5.  (a) Notwithstanding any other provision of law to the
contrary, the members of the Board of Directors of the State
Compensation Insurance Fund and officers of the fund appointed by the
board of directors, including, but not limited to, the president,
chief financial officer, chief operating officer, chief information
technology officer, chief investment officer, chief risk officer, and
general counsel, are prohibited from lobbying the fund for two years
after leaving employment with the fund.
   (b) Notwithstanding any other provision of law to the contrary,
any consulting for the fund by former members of the Board of
Directors of the State Compensation Insurance Fund and former
officers of the fund appointed by the board of directors, including,
but not limited to, the president, chief financial officer, chief
operating officer, chief information technology officer, chief
investment officer, chief risk officer, and general counsel, shall be
approved by the board of directors.