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 lawbegin delete authorizesend deletebegin insert requiresend insert 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 wouldbegin delete additionallyend delete authorize the boardbegin delete to, until December 31, 2021,end deletebegin insert toend insert appoint additional executive and management positions deemed appropriate by the board. The bill would limit the number of additional appointed positions tobegin delete 40.end deletebegin insert 8 senior management employees in the areas of underwriting, technology, claims, finance, and actuary, and no more than 2 of those positions
may be filled with licensed attorneys.end insert
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 exceedbegin delete
40 employees.end delete
12management employees in the areas of underwriting, technology,
13claims, finance, and actuary, and no more than two of those
14positions may be filled with licensed attorneys.end insert
15(3) The board of directors’ authority to appoint additional
16positions pursuant to this subdivision shall terminate on December
1731, 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 the board of directors, the president, the
30chief financial officer, the chief operating officer, the general
P3 1counsel, a chief medical officer, a chief actuarial officer, a chief
2claims operations officer, and a chief of internal affairs, and any
3other person designated by the fund shall be deemed to be
4designated
employees for the purpose of that act.
5(f) Both the Bagley-Keene Open Meeting Act (Article 9
6(commencing with Section 11120) of Chapter 1 of Part 1 of
7Division 3 of Title 2 of the Government Code) and the California
8Public Records Act (Chapter 3.5 (commencing with Section 6250)
9of Division 7 of Title 1 of the Government Code) shall apply to
10the fund.
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