Senate BillNo. 1451


Introduced by Senator Mendoza

February 19, 2016


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

LEGISLATIVE COUNSEL’S DIGEST

SB 1451, as introduced, Mendoza. State Compensation Insurance Fund: executive and management 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 for 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, a chief medical officer, chief actuarial officer, a chief claims operations officer, a chief of internal affairs, and a general counsel.

This bill would additionally authorize the board to, until December 31, 2021, appoint additional executive and management positions deemed appropriate by the board, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 11785 of the Insurance Code is amended
2to read:

3

11785.  

(a) The board of directors shall appoint a president, a
4chief financial officer, a chief operating officer, a chief information
5technology officer, a chief investment officer, a chief risk officer,
6a general counsel, a chief medical officer, a chief actuarial officer,
7a chief claims operations officer, and a chief of internal affairs.
8begin deleteTheend delete

begin insert

9(b) (1) The board of directors may appoint additional executive
10and management positions, as deemed appropriate by the board.

end insert
begin insert

11(2) The number of additional positions appointed pursuant to
12paragraph (1) shall not exceed 1 percent of the number of the
13fund’s employees who are subject to the requirements of Part 2
14(commencing with Section 18500) of Division 5 of Title 2 of the
15Government Code.

end insert
begin insert

16(3) The board’s authority to appoint additional positions
17pursuant to this subdivision shall terminate on December 31, 2021.

end insert

18begin insert(c)end insertbegin insertend insertbegin insertTheend insert board of directors shall set the salary for eachbegin delete position.end delete
19begin insert position described in subdivisions (a) and (b).end insert These positions
20shall not be subject to otherwise applicable provisions of the
21Government Code and the Public Contract Code, and for those
22purposes the fund shall not be considered a state agency or other
23public entity.begin delete Theend delete

24begin insert(d)end insertbegin insertend insertbegin insertTheend insert president shall manage and conduct the business and
25affairs of the fund under the general direction and subject to the
26approval of the board of directors, and shall perform other duties
27as the board of directors prescribes.

begin delete

28(b)

end delete

29begin insert(e)end insert Section 87406 of the Government Code, the Milton Marks
30Postgovernment Employment Restrictions Act of 1990, shall apply
31to the fund. Members of the board, the president, the chief financial
32officer, the chief operating officer, the general counsel, a chief
33medical officer, a chief actuarial officer, a chief claims operations
34officer, and a chief of internal affairs, and any other person
35designated by the fund shall be deemed to be designated employees
36for the purpose of that act.

begin delete

37(c)

end delete

P3    1begin insert(f)end insert Both the Bagley-Keene Open Meeting Act (Article 9
2(commencing with Section 11120) of Chapter 1 of Part 1 of
3Division 3 of Title 2 of the Government Code) and the California
4Public Records Act (Chapter 3.5 (commencing with Section 6250)
5of Division 7 of Title 1 of the Government Code) shall apply to
6the fund.



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