BILL NUMBER: SB 1406	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 18, 2012
	AMENDED IN SENATE  MARCH 29, 2012

INTRODUCED BY   Senator Emmerson

                        FEBRUARY 24, 2012

   An act to amend Section 11785 of  , and to add and repeal
Section 11785.3 of,  the Insurance Code, relating to the State
Compensation Insurance Fund.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1406, as amended, Emmerson. State Compensation Insurance Fund:
appointments.
   Existing law provides for the existence of the State Compensation
Insurance Fund (SCIF) 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 requires the SCIF board of directors to 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. Existing law exempts those
positions from provisions of the Government Code and Public Contract
Code that are otherwise applicable to state agencies and public
entities and for these purposes existing law provides that the SCIF
is not considered a state agency or other public entity.
   This bill would require the SCIF board of directors to appoint
additional positions, not to exceed a total of 20 positions,
including an administrator, senior management employees next in line
of authority to the positions specified above, subordinate
administrators with specialized training and knowledge, and other
legal staff.  The bill would require the board of directors, on
or before January 1, 2014, to prepare and submit a report to the
Legislature   regarding these additional positions and
current or replaced positions. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 11785 of the Insurance Code is amended to read:

   11785.  (a) 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, a general counsel, an administrator, senior management
employees next in line of authority to these positions, and
subordinate administrators with specialized training and knowledge in
areas, including, but not limited to, workers' compensation
insurance, technology, actuarial services, financial modeling,
investment, and financial accounting, and other legal counsel. The
total number of positions authorized under this section shall not
exceed 20. The board of directors shall set the salary for each
position. These positions shall not be subject to otherwise
applicable provisions of the Government Code and the Public Contract
Code, and for those purposes the fund shall not be considered a state
agency or other public entity.
   (b) The president shall manage and conduct the business and
affairs of the fund under the general direction and subject to the
approval of the board of directors, and shall perform other duties as
the board of directors prescribes.
   (c) Section 87406 of the Government Code, the Milton Marks
Postgovernment Employment Restrictions Act of 1990, shall apply to
the fund. Members of the board, the president, the chief financial
officer, the chief operating officer, the general counsel, and any
other person designated by the fund shall be deemed to be designated
employees for the purpose of that act.
   (d) Both the Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2
of the Government Code) and the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall apply to the fund.
   SEC. 2.    Section 11785.3 is added to the  
Insurance Code   , to read:  
   11785.3.  (a) On or before January 1, 2014, the board of directors
shall prepare and submit a report to the Legislature containing the
following information regarding the positions described in
subdivision (a) of Section 11785:
   (1) With respect to each current or replaced position:
   (A) A description of the position.
   (B) The salary or contract amount for that position.
   (2) With respect to any new position created by the act that added
this section:
   (A) A description of the position.
   (B) The salary for that position.
   (3) The progress of the board in filling the positions.
   (4) The amount of savings as a result of replacing contract
positions with newly created salary-based positions.
   (b) The report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government Code.
   (c)Pursuant to Section 10231.5 of the Government Code, this
section shall remain in effect only until January 1, 2018, and as of
that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2018, deletes or extends that date.