BILL NUMBER: SB 1347 INTRODUCED
BILL TEXT
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 introduced, 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 specified
members, appointed by the California Joint Powers 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.
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. 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 voting members constituted as follows:
(1) One member shall be appointed by the California Association of
Joint Powers Authorities.
(2) One member shall be a resident of the State of California.
(3) One member shall be from a city with a population of at least
250,000.
(4) One member shall be from a county with a population of at
least 1,000,000.
(5) One member shall be from a postsecondary educational
institution.
(6) 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) 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
members, three members shall serve two-year terms and two shall serve
three-year terms. If the board consists of seven members, four
members shall serve two-year terms and three 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. 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.
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. (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.
3737. 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. The reporting group shall not be considered a public
agency or an agency of the State of California for any purpose.