SB 1451, as amended, 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:
Section 11785 of the Insurance Code is amended
2to read:
(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.
8(b) (1) The board of directors may appoint additional executive
9and management positions, as deemed appropriate by the board.
10(2) The number of additional positions appointed pursuant to
11paragraph (1) shall not exceed 1 percent of the number of the fund’s
12employees who are subject to
the requirements of Part 2
13(commencing with Section 18500) of Division 5 of Title 2 of the
14Government Code.
15(3) Thebegin delete board’send deletebegin insert board of directorsend insertbegin insert’end insert authority to appoint
16additional positions pursuant to this subdivision shall terminate
17on December 31, 2021.
18(c) The board of directors shall set the salary for each
position
19described in subdivisions (a) and (b). These positions shall not be
20subject to otherwise applicable provisions of the Government Code
21and the Public Contract Code, and for those purposes the fund
22shall not be considered a state agency or other public entity.
23(d) The president shall manage and conduct the business and
24affairs of the fund under the general direction and subject to the
25approval of the board of directors, and shall perform other duties
26as the board of directors prescribes.
27(e) Section 87406 of the Government Code, the Milton Marks
28Postgovernment Employment Restrictions Act of 1990, shall apply
29to the fund. Members of thebegin delete board,end deletebegin insert
board of directors,end insert the
30president, the chief financial officer, the chief operating officer,
31the general counsel, a chief medical officer, a chief actuarial officer,
32a chief claims operations officer, and a chief of internal affairs,
33and any other person designated by the fund shall be deemed to
34be designated employees for the purpose of that act.
35(f) Both the Bagley-Keene Open Meeting Act (Article 9
36(commencing with Section 11120) of Chapter 1 of Part 1 of
37Division 3 of Title 2 of the Government Code) and the California
38Public Records Act (Chapter 3.5 (commencing with Section 6250)
P3 1of Division 7 of Title 1 of the Government Code) shall apply to
2the fund.
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