BILL NUMBER: AB 279	CHAPTERED  09/29/99

	CHAPTER   553
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 28, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 1, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN ASSEMBLY   MAY 25, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Wayne

                        FEBRUARY 4, 1999

   An act to amend Section 3700.5 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 279, Wayne.  Workers' compensation:  failure to pay
compensation.
   Existing law governing workers' compensation requires every
employer except the state to secure the payment of compensation in
one or more of several specified ways, including the procurement of
workers' compensation insurance.
   Existing law makes it a misdemeanor, punishable by imprisonment in
the county jail not to exceed 6 months, or by a fine of $1,000, or
both for an employer to fail to secure the payment of compensation
when the employer knew, or because of his or her knowledge or
experience should be reasonably expected to have known, of the
obligation to secure the payment of compensation.
   This bill would instead make the willful failure to secure the
payment of compensation a misdemeanor, punishable by either a fine of
up to $10,000 or imprisonment in the county jail not to exceed one
year, or both.  By changing the definition of, and increasing the
punishment for, a crime, this bill would impose a state-mandated
local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 3700.5 of the Labor Code is amended to read:
   3700.5.  The failure to secure the payment of compensation as
required by this article by one who knew, or because of his or her
knowledge or experience should be reasonably expected to have known,
of the obligation to secure the payment of compensation, is a
misdemeanor punishable by imprisonment in the county jail for up to
one year, or by a fine of up to ten thousand dollars ($10,000), or by
both that imprisonment and fine.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.