BILL NUMBER: AB 1394	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Insurance

                        MARCH 4, 2013

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1394, as introduced, Committee on Insurance. State Compensation
Insurance Fund: executive 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 authorizes the board of directors of SCIF 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.
   This bill would additionally authorize the board of directors of
SCIF to appoint a chief medical officer, a chief actuarial officer, a
chief claims operations officer, and a chief of internal affairs,
and make those positions subject to the Milton Marks Postgovernment
Employment Restrictions Act of 1990.
   Vote: majority. Appropriation: no. Fiscal committee: no.
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,  and  a general counsel  , a chief
medical officer, a chief actuarial officer, a chief claims
operations officer, and a chief of internal affairs  . 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. 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.
   (b) 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,  a
chief medical officer, a chief actuarial officer, a chief claims
operations officer, and a chief of internal affairs,  and any
other person designated by the fund shall be deemed to be designated
employees for the purpose of that act.
   (c) 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.