BILL NUMBER: SB 1451	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 14, 2016
	AMENDED IN SENATE  MAY 3, 2016

INTRODUCED BY   Senator Mendoza
   (Coauthors: Senators Gaines and Roth)

                        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 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.
  board. The bill would limit the number of additional
appointed positions to 40. 
   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, a chief medical officer, a chief
actuarial officer, a chief claims operations officer, and a chief of
internal affairs.
   (b) (1) The board of directors may appoint additional executive
and management positions, as deemed appropriate by the board.
   (2) The number of additional positions appointed pursuant to
paragraph (1) shall not exceed  1 percent of the number of
the fund's employees who are subject to the requirements of Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code.   40 employees. 
   (3) The board of directors' authority to appoint additional
positions pursuant to this subdivision shall terminate on December
31, 2021.
   (c) The board of directors shall set the salary for each position
described in subdivisions (a) and (b). 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.
   (d) 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.
   (e) Section 87406 of the Government Code, the Milton Marks
Postgovernment Employment Restrictions Act of 1990, shall apply to
the fund. Members of the board of directors, 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.
   (f) 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.