BILL NUMBER: SB 717	CHAPTERED  10/10/99

	CHAPTER   746
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999

INTRODUCED BY   Senator Peace

                        FEBRUARY 24, 1999

   An act to add Section 62.5 to the Labor Code, relating to workers'
compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 717, Peace.   Workers' Compensation Administration Revolving
Fund.
   Existing law establishes a system of workers' compensation to pay
for injuries to workers.  Existing law, until January 1, 1999,
provided for the establishment of the Workers' Compensation
Administration Revolving Fund, with money in the fund to be
available, upon appropriation, to fund a portion of the costs of
administering the workers' compensation program.
   This bill would reestablish the Workers' Compensation
Administration Revolving Fund as a special account in the State
Treasury.  Money in the fund could be expended by the Department of
Industrial Relations, upon appropriation, for the administration of
the workers' compensation program.  The money in the fund would
consist of assessments on employers.  The bill would provide that
costs of the program would be shared between the General Fund and
those assessments, as specified.


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


  SECTION 1.  Section 62.5 is added to the Labor Code, to read:
   62.5.  (a) The Workers' Compensation Administration Revolving Fund
is hereby created as a special account in the State Treasury.  Money
in the fund may be expended by the department, upon appropriation by
the Legislature, for the administration of the workers' compensation
program set forth in this division and Division 4 (commencing with
Section 3200), other than the activities financed pursuant to Section
3702.5, and shall not be used for any other purpose.
   (b) The fund shall consist of assessments made pursuant to this
section.  Costs of the program shall be shared on a proportional
basis between the General Fund and employer assessments.  The General
Fund appropriation shall account for 80 percent, and employer
assessments shall account for 20 percent, of the total costs of the
program.
   (c) Assessments shall be levied by the director upon all employers
as defined in Section 3300.  The total amount of the assessment
shall be allocated between self-insured employers and insured
employers in proportion to payroll respectively paid in the most
recent year for which payroll information is available.  The director
shall promulgate reasonable rules and regulations governing the
manner of collection of the assessment.  The rules shall require the
assessment to be paid by self-insurers to be expressed as a
percentage of indemnity paid during the most recent year for which
information is available, and the assessment to be paid by insured
employers to be expressed as a percentage of premium.  In no event
shall the assessment paid by insured employers be considered a
premium for computation of a gross premium tax or agents' commission.