BILL NUMBER: SB 1513	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 16, 2012
	AMENDED IN SENATE  MARCH 29, 2012

INTRODUCED BY   Senator Negrete McLeod

                        FEBRUARY 24, 2012

   An act to amend Section 11797 of the Insurance Code, relating to
the State Compensation Insurance Fund.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1513, as amended, Negrete McLeod. State Compensation Insurance
Fund: investments.
   Existing law requires the board of directors of the State
Compensation Insurance Fund to invest and reinvest, from time to
time, all moneys in the State Compensation Insurance Fund in excess
of current requirements in the same manner as is authorized in
certain provisions applicable to private insurance carriers. Existing
law prohibits the board from investing or reinvesting in certain
investments, including real estate and call options on common stock.
   This bill would  expand the board's choice of investments
of excess moneys by allowing the board to invest or reinvest in
additional investments in the same manner as provided for private
carriers, including, but not limited to, in the stock of certain
corporations, specified mortgage-related investment instruments, and
in the stock of a federal home loan bank. The bill would restrict
such investment or reinvestment to  authorize the board
to invest or reinvest, an aggregated maximum of  20% of the
moneys that are in excess of the admitted assets over the liabilities
and required reserves  for   , in 
specified investments, including the stock of certain corporations,
specified mortgage-related investment instruments, and in the stock
of a federal home loan bank.
   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 11797 of the Insurance Code is amended to read:

   11797.  (a) The board of directors shall cause all moneys in the
State Compensation Insurance Fund that are in excess of  the
admitted assets over the liabilities and required reserves 
 current requirements  to be invested and reinvested, from
time to time, in the same manner as provided for private insurance
carriers pursuant to Article 3 (commencing with Section 1170) and
Article 4 (commencing with Section 1190) of Chapter 2 of Part 2 of
Division 1, but excluding Sections  1191,  1191.1, 1191.5,
1192.2,  1192.4, 1192.6,  1192.7, 1192.9, 1192.95, 
1192.10, 1194.7,  1194.8, 1194.81, 1194.82, 1194.85,  1198,
 and 1199. Notwithstanding the foregoing, the State Compensation
Insurance Fund may invest or reinvest an aggregated maximum of 20
percent of moneys that are in excess of the admitted assets over the
liabilities and required reserves in the investments allowed pursuant
to Sections 1191, 1192.4, 1192.6, 1192.10, 1194.7, and 1198.
   (b) (1) (A) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase general obligation bonds or other
evidence of indebtedness issued by the state, including, but not
limited to, warrants issued pursuant to Part 4 (commencing with
Section 17000) of Division 4 of Title 2 of the Government Code or
notes issued pursuant to Part 5 (commencing with Section 17300) of
Division 4 of Title 2 of the Government Code, in any amount and to
enter into purchase contracts with the state for this purpose.
   (B) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase Property Assessed Clean Energy (PACE)
bonds, as defined in Section 26104 of the Public Resources Code.
   (2) The bonds or other evidence of indebtedness specified in
paragraph (1), upon delivery to the State Compensation Insurance
Fund, shall, for all purposes, be valid and binding obligations of
the issuer thereof, be validly issued and outstanding in accordance
with their stated terms, and not be deemed to be owned by or on
behalf of the issuer thereof.