BILL NUMBER: AB 493	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Tran

                        FEBRUARY 24, 2009

    An act to amend Section 401 of the Unemployment Insurance
Code, relating to unemployment insurance.   An act to
amend Section 56.30 of the Civil Code, to amend Sections 1330,
68120.5, and 89529.15 of the Education Code, to amend Sections
6276.48, 8920, 11041, 11351, 11435.15, 11435.25, 11553, 1155 
 3.5, 11555, 11556, 12813, 19878, 20130, 21164, 21166, 21167,
21168, 21169, 21170, 21171, 21174, 21430, 21537, 21537.5, 21538,
21540, 21540.5, 21544, 22820, and 87406 of the Government Code, to
amend Sections 6276 and 6869 of the Harbors and Navigation Code, to
amend Section 18947 of the Health and Safety Code, to amend Sections
1063.1, 11659, 11698.1, and 11698.2 of the Insurance Code, to amend
Sections 53, 96, 110, 111, 148, 148.1, 148.2, 3205.5, and 6101 of, to
add Section   148.01 to, and to repeal Sections 112, 113,
115, and 116 of, the Labor Code, and to amend Section 401 of, to
repeal Section 402 of, and to repeal and add the heading of Article 3
(commencing with Section 401) of Chapter 2 of Part 1 of Division 1
of, the Unemployment Insurance Code, relating to state government
organization. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 493, as amended, Tran.  Unemployment Insurance
  Employment and Benefits  Appeals Board. 
   Existing law establishes in the Employment Development Department
the Unemployment Insurance Appeals Board to review the decisions of
administrative law judges regarding petitions for unemployment
insurance benefits. Existing law establishes within the Labor and
Workforce Development Agency the California Occupational Safety and
Health Appeals Board to conduct hearings when an employer served with
a special order relating to occupational safety and health appeals
that order, and also establishes the Workers' Compensation Appeals
Board which has jurisdiction to determine workers' compensation
claims of an employee for injuries sustained in the course of his or
her employment.  
   This bill would abolish the Unemployment Insurance Appeals Board,
the California Occupational Safety and Health Appeals Board, and the
Workers' Compensation Appeals Board and transfer their duties to the
Employment and Benefits Appeals Board, which this bill would create
in the Labor and Workforce Development Agency. The bill would make
conforming changes to existing law.  
   Existing law establishes the Unemployment Insurance Appeals Board
in the Employment Development Department, and prescribes the
membership, functions, and duties of the board.  
   This bill would make technical, nonsubstantive changes in those
provisions governing the membership, functions, and duties of the
board. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 56.30 of the   Civil
Code   is amended to read: 
   56.30.  The disclosure and use of the following medical
information shall not be subject to the limitations of this part:
   (a) (Mental health and developmental disabilities) Information and
records obtained in the course of providing services under Division
4 (commencing with Section 4000), Division 4.1 (commencing with
Section 4400), Division 4.5 (commencing with Section 4500), Division
5 (commencing with Section 5000), Division 6 (commencing with Section
6000), or Division 7 (commencing with Section 7100) of the Welfare
and Institutions Code.
   (b) (Public social services) Information and records that are
subject to Sections 10850, 14124.1, and 14124.2 of the Welfare and
Institutions Code.
   (c) (State health services, communicable diseases, developmental
disabilities) Information and records maintained pursuant to former
Chapter 2 (commencing with Section 200) of Part 1 of Division 1 of
the Health and Safety Code and pursuant to the Communicable Disease
Prevention and Control Act (subdivision (a) of Section 27 of the
Health and Safety Code).
   (d) (Licensing and statistics) Information and records maintained
pursuant to Division 2 (commencing with Section 1200) and Part 1
(commencing with Section 102100) of Division 102 of the Health and
Safety Code; pursuant to Chapter 3 (commencing with Section 1200) of
Division 2 of the Business and Professions Code; and pursuant to
Section 8608, 8817, or 8909 of the Family Code.
   (e) (Medical survey, workers' safety) Information and records
acquired and maintained or disclosed pursuant to Sections 1380 and
1382 of the Health and Safety Code and pursuant to Division 5
(commencing with Section 6300) of the Labor Code.
   (f) (Industrial accidents) Information and records acquired,
maintained, or disclosed pursuant to Division 1 (commencing with
Section 50), Division 4 (commencing with Section 3200), Division 4.5
(commencing with Section 6100), and Division 4.7 (commencing with
Section 6200) of the Labor Code.
   (g) (Law enforcement) Information and records maintained by a
health facility which are sought by a law enforcement agency under
Chapter 3.5 (commencing with Section 1543) of Title 12 of Part 2 of
the Penal Code.
   (h) (Investigations of employment accident or illness) Information
and records sought as part of an investigation of an on-the-job
accident or illness pursuant to Division 5 (commencing with Section
6300) of the Labor Code or pursuant to Section 105200 of the Health
and Safety Code.
   (i) (Alcohol or drug abuse) Information and records subject to the
federal alcohol and drug abuse regulations (Part 2 (commencing with
Section 2.1) of subchapter A of Chapter 1 of Title 42 of the Code of
Federal Regulations) or to Section 11977 of the Health and Safety
Code dealing with narcotic and drug abuse.
   (j) (Patient discharge data) Nothing in this part shall be
construed to limit, expand, or otherwise affect the authority of the
California Health Facilities Commission to collect patient discharge
information from health facilities.
   (k) Medical information and records disclosed to, and their use
by, the Insurance Commissioner, the Director of the Department of
Managed Health Care, the Division of Industrial Accidents, the
 Workers' Compensation   Employment and Benefits
 Appeals Board, the Department of Insurance, or the Department
of Managed Health Care.
   SEC. 2.    Section 1330 of the   Education
Code   is amended to read: 
   1330.  (a) The Superintendent  of Public Instruction
 or the Board of Governors of the California Community
Colleges, as appropriate, shall represent, and exercise rights of
appeal to the  Unemployment Insurance  
Employment and Benefits  Appeals Board under this part on behalf
of school employers held under Section 1336 of the Unemployment
Insurance Code.
   (b) The Superintendent  of Public Instruction  or
Board of Governors of the California Community Colleges is hereby
authorized to obtain pertinent personnel records and data from any
school employer and to act as an agent individually or collectively
for school employers in matters pertaining to unemployment insurance.

   (c) Each county superintendent of schools shall have the
responsibility of establishing, coordinating, and maintaining, either
directly or by contract, an unemployment insurance management system
for each school employer participating in the School Employees Fund
under Article 6 (commencing with Section 821) of Chapter 3 of Part 1
of Division 1 of the Unemployment Insurance Code. A management system
shall include general administration, claims management, appointment
of hearing representatives, representation of school employers at
hearings, and other duties related to the unemployment insurance
program in their jurisdiction. These duties and responsibilities may
be delegated to any school district, community college district,
another county superintendent of schools, or any combination of these
entities, including programs under joint powers agreements for the
purpose of consolidation for economy and employment of specialists,
including the services of a regional data center operated by a county
superintendent of schools or the data-processing services of a
school district or a community college district. School employers not
participating in the School Employees Fund shall be responsible for
the development and maintenance of their own unemployment insurance
management system required by this subdivision.
   (d) Each school employer shall perform pursuant to the type of
financing elected, and shall, as required, respond to the
Superintendent  of Public Instruction  or Board of
Governors of the California Community Colleges and the county
superintendent of schools or designated agency as soon as possible,
in no case later than 48 hours, to inquiries made on behalf of the
county superintendent or the Superintendent  of Public
Instruction  or Board of Governors of the California
Community Colleges in reference to any aspect of eligibility, notice
of claim or appeal under the unemployment insurance program. Each
county superintendent or agent thereof who is responsible for
administering the unemployment insurance program shall be responsible
for timely responses to any inquiry by the administrator,
Superintendent  of Public Instruction  , 
State  Treasurer, Controller, or other officer or person
responsible for disbursements from the School Employees Fund in the
State Treasury as established by Section 822 of the Unemployment
Insurance Code, or the Unemployment Fund in the State Treasury. Any
school employer  which   that  fails to pay
the contributions, interest, charges or levies within the time
required shall be liable for interest on moneys due at the rate of 1
percent per month or fraction thereof from and after the date of
delinquency until paid. If the school employer fails, without good
cause, to pay any sums required within the time required, a penalty
of 10 percent of the amount noticed, billed or required shall be made
by the administrator. The administrator may for good cause waive all
or a portion of interest and penalty.
   (e) The administrator of the School Employees Fund shall, from
available interest earnings, pursuant to investments authorized by
Section 822 of the Unemployment Insurance Code, transfer each year an
amount equal to two dollars ($2) per covered employee for all
districts participating in the School Employees Fund under Article 6
(commencing with Section 821) of Chapter 3 of Part 1 of Division 1 of
the Unemployment Insurance Code, to the Superintendent  of
Public Instruction  or the Board of Governors of the
California Community Colleges, as appropriate. The Superintendent
 of Public Instruction  or the Board of Governors of
the California Community Colleges, as appropriate, shall apportion
the two dollars ($2) per covered employee amount, less actual state
administrative costs not to exceed five cents ($0.05) per covered
employee, to the county superintendent of schools to cover costs of
administering the unemployment insurance management system specified
in subdivision (c).
   (f) For the fiscal year 1978-79, and each fiscal year thereafter,
the administrator of the School Employees Fund shall transfer the
funds by December 31 of each year based on the reports received from
the Superintendent  of Public Instruction  or Board
of Governors of the California Community Colleges by November 30 of
each year. The reports shall be compiled from the number of covered
employees as reported by the county superintendent of schools or
community colleges, as appropriate, to the Superintendent  of
Public Instruction  or the Board of Governors of the
California Community Colleges by November 1 of each year, based on
the covered employees employed in the preceding calendar month. The
funds shall be apportioned by the Superintendent  of Public
Instruction  and the Board of Governors of the California
Community Colleges prior to January 31 of each year to the county
superintendent of schools, less the actual administrative costs of
the Superintendent  of Public Instruction  or the
Board of Governors of the California Community Colleges, which shall
not exceed an aggregate amount of five cents ($0.05) per covered
employee. Funds for the cost of administering the unemployment
insurance management system shall be apportioned to each county
superintendent of schools according to the number of covered
employees in each district reported by him or her, and shall be used
only for the purpose of covering actual administrative costs incurred
pursuant to Section 1330.
   SEC. 3.    Section 68120.5 of the  
Education Code   is amended to read: 
   68120.5.  Any determination of eligibility pursuant to Section
68120 shall be consistent with any findings of the  Workers'
Compensation   Employment and Benefits  Appeals
Board, using the same procedures as in workers' compensation
hearings, as to whether the death of the person described under
subdivision (a) of that section was industrial.
   SEC. 4.    Section 89529.15 of the  
Education Code   is amended to read: 
   89529.15.  As used in this article:
   (a) "Employee" means any of the following:
   (1) A permanent or probationary full-time employee of the
trustees, regardless of period of service, who is a member of the
Public Employees' Retirement System or the State Teachers' Retirement
System in compensated employment on or after October 1, 1976.
   (2) A permanent or probationary part-time or intermittent employee
of the trustees with at least the equivalent of six monthly
compensated pay periods of service in the 18 months of pay periods
immediately preceding the pay period in which the disability begins,
who is a member of the Public Employees' Retirement System or the
State Teachers' Retirement System in compensated employment on or
after January 1, 1979.
   (3) In addition to those eligible under paragraph (1), an employee
of the trustees appointed half-time or more for one year of service
or one academic year, as defined by the trustees, or more, who is a
member of the Public Employees' Retirement System or the State
Teachers' Retirement System in compensated employment on or after
January 1, 1979.
   (4) A permanent or probationary full-time employee of the
trustees, regardless of period of service, who is a participant in
the optional retirement program pursuant to Chapter 5.5 (commencing
with Section 89600), provided that he or she would otherwise be
eligible to participate in the Public Employees' Retirement System
except for the election to participate in the optional retirement
program.
   (b) "Full pay" means the gross base salary earnable by the
employee and subject to retirement contribution on the date of the
commencement of his or her disability.
   (c) "Disability" or "disabled" includes mental or physical illness
and mental or physical injury including any illness or injury
resulting from pregnancy, childbirth, or related medical condition.
An employee is deemed disabled on any day in which, because of his or
her physical, mental, or medical condition, he or she is unable to
perform his or her regular or customary work.
   (d) "Disability benefit  period",   period,"
 with respect to any individual, means the continuous period of
disability beginning with the first day with respect to which the
individual files a valid claim for nonindustrial disability benefits.
For the purpose of this article, two consecutive periods of
disability due to the same or related cause or condition and
separated by a period of not more than 14 days shall be considered as
one disability benefit period.
   (e) "Appeals board" means the  California Unemployment
Insurance   Emp   loyment and Benefits 
Appeals Board.
   SEC. 5.    Section 6276.48 of the  
Government Code   is amended to read: 
   6276.48.  Wards and dependent children, release of description
information about minor escapees, Section 828, Welfare and
Institutions Code.
   Wards, petition for sealing records, Section 781, Welfare and
Institutions Code.
   Welfare, statewide automated system work plan, confidentiality of
data on individuals, Section 10818, Welfare and Institutions Code.
   Wills, confidentiality of, Section 6389, Probate Code.
   Winegrowers of California commission, confidentiality of producers'
or vintners' proprietary information, Sections 74655 and 74955, Food
and Agricultural Code. 
   Workers' Compensation 
    Employment   and Benefits  Appeals Board,
injury or illness report, confidentiality of, Section 6412, Labor
Code.
   Workers' compensation insurance, dividend payment to policyholder,
confidentiality of information, Section 11739, Insurance Code.
   Workers' compensation insurance fraud reporting, confidentiality
of information, Sections 1877.3 and 1877.4, Insurance Code.
   Workers' compensation insurer or rating organization,
confidentiality of notice of noncompliance, Section 11754, Insurance
Code.
   Workers' compensation insurer, rating information, confidentiality
of, Section 11752.7, Insurance Code.
   Workers' compensation, notice to correct noncompliance, Section
11754, Insurance Code.
   Workers' compensation, release of information to other
governmental agencies, Section 11752.5, Insurance Code.
   Workers' compensation, self-insured employers, confidentiality of
financial information, Section 3742, Labor Code.
   Workplace inspection photographs, confidentiality of, Section
6314, Labor Code.
   Youth Authority, parole revocation proceedings, confidentiality
of, Section 1767.6, Welfare and Institutions Code.
   Youth Authority, release of information in possession of Youth
Authority for offenses under Sections 676, 1764.1, and 1764.2,
Welfare and Institutions Code.
   Youth Authority, records, policies, and procedures, Section 1905,
Welfare and Institutions Code.
   Youth Authority, records, disclosure, Section 1764, Welfare and
Institutions Code.
   Youth Authority parolee, disclosure of personal information in
revocation proceedings, Section 1767.6, Welfare and Institutions
Code.
   Youth service bureau, confidentiality of client records, Section
1905, Welfare and Institutions Code.
   SEC. 6.    Section 8920 of the   Government
Code   is amended to read: 
   8920.  (a) No Member of the Legislature, state elective or
appointive officer, or judge or justice shall, while serving as such,
have any interest, financial or otherwise, direct or indirect, or
engage in any business or transaction or professional activity, or
incur any obligation of any nature, which is in substantial conflict
with the proper discharge of his duties in the public interest and of
his responsibilities as prescribed in the laws of this state.
   (b) No Member of the Legislature shall do any of the following:
   (1) Accept other employment which he  or she  has reason
to believe will either impair his  or her  independence of
judgment as to his  or her  official duties or require him
 or her  , or induce him  or her  , to disclose
confidential information acquired by him  or her  in the
course of and by reason of his  or her  official duties.
   (2) Willfully and knowingly disclose, for pecuniary gain, to any
other person, confidential information acquired by him  or her
 in the course of and by reason of his  or her 
official duties or use any such information for the purpose of
pecuniary gain.
   (3) Accept or agree to accept, or be in partnership with any
person who accepts or agrees to accept, any employment, fee, or other
thing of monetary value, or portion thereof, in consideration of his
 or her  appearing, agreeing to appear, or taking any other
action on behalf of another person before any state board or agency.

   This subdivision shall not be construed to prohibit a member who
is an attorney at law from practicing in that capacity before any
court or before the  Workers' Compensation  
Employment and Benefits  Appeals Board and receiving
compensation therefor. This subdivision shall not act to prohibit a
member from acting as an advocate without compensation or making
inquiry for information on behalf of a constituent before a state
board or agency, or from engaging in activities on behalf of another
which require purely ministerial acts by the board or agency and
which in no way require the board or agency to exercise any
discretion, or from engaging in activities involving a board or
agency which are strictly on his or her own behalf. The prohibition
contained in this subdivision shall not apply to a partnership or
firm of which the Member of the Legislature is a member if the Member
of the Legislature does not share directly or indirectly in the fee,
less any expenses attributable to that fee, resulting from the
transaction. The prohibition contained in this subdivision as it read
immediately prior to January 1, 1983, shall not apply in connection
with any matter pending before any state board or agency on or before
January 2, 1967, if the affected Member of the Legislature was an
attorney of record or representative in the matter prior to January
2, 1967. The prohibition contained in this subdivision, as amended
and operative on January 1, 1983, shall not apply to any activity of
any Member in connection with a matter pending before any state board
or agency on January 1, 1983, which was not prohibited by this
section prior to that date, if the affected Member of the Legislature
was an attorney of record or representative in the matter prior to
January 1, 1983.
   (4) Receive or agree to receive, directly or indirectly, any
compensation, reward, or gift from any source except the State of
California for any service, advice, assistance or other matter
related to the legislative process, except fees for speeches or
published works on legislative subjects and except, in connection
therewith, reimbursement of expenses for actual expenditures for
travel and reasonable subsistence for which no payment or
reimbursement is made by the State of California.
   (5) Participate, by voting or any other action, on the floor of
either house, in committee, or elsewhere, in the passage or defeat of
legislation in which he has a personal interest, except as follows:

   (i) 
    (A)  If, on the vote for final passage by the house of
which he  or she  is a member, of the legislation in which
he  or she  has a personal interest, he  or she 
first files a statement (which shall be entered verbatim on the
journal) stating in substance that he  or she  has a
personal interest in the legislation to be voted on and,
notwithstanding that interest, he  or she  is able to cast a
fair and objective vote on that legislation, he  or she 
may cast his  or her  vote without violating any provision
of this article. 
   (ii) 
    (B)  If the member believes that, because of his  or
her  personal interest, he  or she  should abstain
from participating in the vote on the legislation, he  or she
 shall so advise the presiding officer prior to the commencement
of the vote and shall be excused from voting on the legislation
without any entry on the journal of the fact of his  or her 
personal interest. In the event a rule of the house requiring that
each member who is present vote aye or nay is invoked, the presiding
officer shall order the member excused from compliance and shall
order entered on the journal a simple statement that the member was
excused from voting on the legislation pursuant to law.
   The provisions of this section do not apply to persons who are
members of the state civil service as defined in Article VII of the
California Constitution.
   SEC. 7.    Section 11041 of the   Government
Code   is amended to read: 
   11041.  (a) Sections 11042 and 11043 do not apply to the Regents
of the University of California, the Trustees of the California State
University, Legal Division of the Department of Transportation,
Division of Labor Standards Enforcement of the Department of
Industrial Relations,  Workers' Compensation  
Employment and Benefits  Appeals Board, Public Utilities
Commission, State Compensation Insurance Fund, Legislative Counsel
Bureau, Inheritance Tax Department, Secretary of State, State Lands
Commission, Alcoholic Beverage Control Appeals Board (except when the
board affirms the decision of the Department of Alcoholic Beverage
Control), State Department of Education, and Treasurer with respect
to bonds, nor to any other state agency which, by law enacted after
Chapter 213 of the Statutes of 1933, is authorized to employ legal
counsel.
   (b) The Trustees of the California State University shall pay the
cost of employing legal counsel from their existing resources.
   SEC. 8.    Section 11351 of the   Government
Code  is amended to read: 
   11351.  (a) Except as provided in subdivision (b), Article 5
(commencing with Section 11346), Article 6 (commencing with Section
11349), Article 7 (commencing with Section 11349.7), and Article 8
(commencing with Section 11350) shall not apply to the Public
Utilities Commission or the  Workers' Compensation 
 Employment and Benefits  Appeals Board, and Article 3
(commencing with Section 11343) and Article 4 (commencing with
Section 11344) shall apply only to the rules of procedure of these
state agencies.
   (b) The Public Utilities Commission and the  Workers'
Compensation   Employment and Benefits  Appeals
Board shall comply with paragraph (5) of subdivision (a) of Section
11346.4 with respect to regulations that are required to be filed
with the Secretary of State pursuant to Section 11343.
   (c) Article 8 (commencing with Section 11350) shall not apply to
the Division of Workers' Compensation.
   SEC. 9.    Section 11435.15 of the  
Government Code   is amended to read: 
   11435.15.  (a) The following state agencies shall provide language
assistance in adjudicative proceedings to the extent provided in
this article:
   Agricultural Labor Relations Board
   Department of Alcohol and Drug Abuse
   State Athletic Commission 
   California Unemployment Insurance 
    Employment and Benefits  Appeals Board
   Board of  Prison Terms   Parole Hearings

   State Board of Barbering and Cosmetology
   State Department of Developmental Services
   Public Employment Relations Board
   Franchise Tax Board
   State Department of  Health Services   Public
Health 
   Department of Housing and Community Development
   Department of Industrial Relations
   State Department of Mental Health
   Department of Motor Vehicles
   Notary Public Section, Office of the Secretary of State
   Public Utilities Commission
   Office of Statewide Health Planning and Development
   State Department of Social Services 
   Workers' Compensation Appeals Board  
   Department of the Youth Authority 
    Juvenile Justice Division of the Department of Corrections
and Rehabilitation 
   Youthful Offender Parole Board
   Department of Insurance
   State Personnel Board
   California Board of Podiatric Medicine
   Board of Psychology
   (b) Nothing in this section prevents an agency other than an
agency listed in subdivision (a) from electing to adopt any of the
procedures in this article, provided that any selection of an
interpreter is subject to Section 11435.30.
   (c) Nothing in this section prohibits an agency from providing an
interpreter during a proceeding to which this chapter does not apply,
including an informal factfinding or informal investigatory hearing.

   (d) This article applies to an agency listed in subdivision (a)
notwithstanding a general provision that this chapter does not apply
to some or all of an agency's adjudicative proceedings.
   SEC. 10.    Section 11435.25 of the  
Government Code   is amended to read: 
   11435.25.  (a) The cost of providing an interpreter under this
article shall be paid by the agency having jurisdiction over the
matter if the presiding officer so directs, otherwise by the party at
whose request the interpreter is provided.
   (b) The presiding officer's decision to direct payment shall be
based upon an equitable consideration of all the circumstances in
each case, such as the ability of the party in need of the
interpreter to pay.
   (c) Notwithstanding any other provision of this section, in a
hearing before the  Workers' Compensation  
Employment and Benefits  Appeals Board or the Division of
Workers' Compensation relating to workers' compensation claims, the
payment of the costs of providing an interpreter shall be governed by
the rules and regulations promulgated by the  Workers'
Compensation   Employment and Benefits  Appeals
Board or the Administrative Director of the Division of Workers'
Compensation, as appropriate.
   SEC. 11.    Section 11553 of the  
Government Code   is amended to read: 
   11553.  (a) Effective January 1, 1988, an annual salary of
eighty-one thousand six hundred thirty-five dollars ($81,635) shall
be paid to each of the following: 
   (1) Chairperson of the Unemployment Insurance Appeals Board.
 
   (2) 
    (1)  Chairperson of the Agricultural Labor Relations
Board. 
   (3) 
    (2)  President of the Public Utilities Commission.

   (4) 
    (3)  Chairperson of the Fair Political Practices
Commission. 
   (5) 
    (4)  Chairperson of the Energy Resources Conservation
and Development Commission. 
   (6) 
    (5)  Chairperson of the Public Employment Relations
Board. 
   (7) Chairperson of the Workers' Compensation Appeals Board.
 
                        (8) 
    (6   )  Administrative Director of the Division
of Industrial Accidents. 
   (9) 
    (7)  Chairperson of the State Water Resources Control
Board. 
   (10) 
    (8)  Chairperson and each member of the California
Integrated Waste Management Board.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
   SEC. 12.    Section 11553.5 of the  
Government Code   is amended to read: 
   11553.5.  (a) Effective January 1, 1988, an annual salary of
seventy-nine thousand one hundred twenty-two dollars ($79,122) shall
be paid to the following:
   (1) Member of the Agricultural Labor Relations Board.
   (2) Member of the State Energy Resources Conservation and
Development Commission.
   (3) Member of the Public Utilities Commission.
   (4) Member of the Public Employment Relations Board. 
   (5) Member of the Unemployment Insurance Appeals Board. 

   (6) Member of the Workers' Compensation Appeals Board.

   (7) 
    (5)  Member of the State Water Resources Control Board.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general cost-of-living salary increases provided
for state employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
   SEC. 13.    Section 11555 of the  
Government Code   is amended to read: 
   11555.  (a) Effective January 1, 1988, an annual salary of
seventy-one thousand five hundred eighty-seven dollars ($71,587)
shall be paid to the  following: 
   (1)     Chairperson
  chairperson  of the Board of Parole Hearings.

   (2) Chairperson of the Occupational Safety and Health Appeals
Board. 
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
   SEC. 14.    Section 11556 of the  
Government Code   is amended to read: 
   11556.  (a) Effective January 1, 1988, an annual salary of
sixty-nine thousand seventy-six dollars ($69,076) shall be paid to
 each of the following: 
    (1)     Commissioner
  a member  of the Board of Parole Hearings.

   (2) Member of the Occupational Safety and Health Appeals Board.

   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
   SEC. 15.    Section 12813 of the  
Government Code   is amended to read: 
   12813.  The Labor and Workforce Development Agency consists of the
following:
   (a) Office of the Secretary of Labor and Workforce Development.
   (b) Agricultural Labor Relations Board.
   (c) California Workforce Investment Board.
   (d) Department of Industrial Relations, including the California
Apprenticeship Council,  California Occupational Safety and
Health Appeals Board,  California Occupational Safety and
Health Standards Board, Commission on Health and Safety and Workers'
Compensation, Industrial Welfare Commission,  and  State
Compensation Insurance Fund  , and Workers' Compensation
Appeals Board  .
   (e) Employment Development Department, including  the
California Unemployment Insurance Appeals Board, and  the
Employment Training Panel. 
   (f) Employment and Benefits Appeals Board. 
   SEC. 16.    Section 19878 of the  
Government Code   is amended to read: 
   19878.  As used in this article:
   (a) "Employee" means any of the following:
   (1) A permanent or probationary full-time state officer or
employee, regardless of period of service, who is a member of the
Public Employees' Retirement System or the State Teachers' Retirement
System in compensated employment on and after October 1, 1976.
Commencing January 1, 1979, it also means a full-time state officer
or employee, whether or not a member of such systems, who is an
employee of the Legislature and is not a member of the civil service.

   (2) A permanent or probationary part-time or intermittent state
officer or employee, with at least the equivalent of six monthly
compensated pay periods of service in the 18 months of pay periods
immediately preceding the pay period in which the disability begins,
who is a member of the Public Employees' Retirement System or the
State Teachers' Retirement System, in compensated employment on or
after January 1, 1979, or a part-time or intermittent employee of the
Legislature, whether or not a member of the Public Employees'
Retirement System, in compensated employment on or after January 1,
1984.
   (b) "Full pay" means the gross base salary earnable by the
employee, and subject to retirement contribution on the date of the
commencement of his or her disability.
   (c) "Disability" or "disabled" includes mental or physical illness
and mental or physical injury, including any illness or injury
resulting from pregnancy, childbirth, or related medical condition.
An employee is deemed disabled on any day in which, because of his or
her physical, mental, or medical condition, he or she is unable to
perform his or her regular or customary work.
   (d) "Disability benefit  period",   period,"
 with respect to any individual, means the continuous period of
disability beginning with the first day with respect to which the
individual files a valid claim for nonindustrial disability benefits.
For the purposes of this article, two consecutive periods of
disability due to the same or related cause or condition and
separated by a period of not more than 14 days shall be considered as
one disability benefit period.
   (e) "Appeals board" means the California  Unemployment
Insurance   Employment and Benefits  Appeals Board.

   If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   SEC. 17.    Section 20130 of the  
Government Code   is amended to read: 
   20130.  The board may enter into an agreement with the State
Compensation Insurance Fund under which the latter shall represent
this system, as its agent, or the Attorney General under which the
latter shall represent this system, in proceedings instituted or to
be instituted before the  Workers' Compensation 
 Employment and Benefit   s  Appeals Board as may
be referred to it by the board to determine whether the death or
disability of a member is industrial. The agreed cost of this service
and the expenses incidental thereto shall be paid from the
retirement fund, except that there shall be no charge to this system
by the Attorney General in cases involving members of this system who
are employees of the General Fund state agencies.
   SEC. 18.    Section 21164 of the  
Government Code   is amended to read: 
   21164.  Notwithstanding any other provision of this article, the
retirement for disability of a local safety member, other than a
school safety member, shall not be effective without the member's
consent earlier than the date upon which leave of absence without
loss of salary under Section 4850 of the Labor Code because of the
disability terminates, or the earlier date during the leave as of
which the disability is permanent and stationary as found by the
 Workers' Compensation   Employment and Benefits
 Appeals Board.
   SEC. 19.    Section 21166 of the  
Government Code   is amended to read: 
   21166.  If a member is entitled to a different disability
retirement allowance according to whether the disability is
industrial or nonindustrial and the member claims that the disability
as found by the board, or in the case of a local safety member by
the governing body of his or her employer, is industrial and the
claim is disputed by the board, or in case of a local safety member
by the governing body, the  Workers' Compensation 
 Employment and Benefits  Appeals Board, using the same
procedure as in workers' compensation hearings, shall determine
whether the disability is industrial.
   The jurisdiction of the  Workers' Compensation 
 Employment and Benefits  Appeals Board shall be limited
solely to the issue of industrial causation, and this section shall
not be construed to authorize the  Workers' Compensation
  Employment and Benefits  Appeals Board to award
costs against this system pursuant to Section 4600, 5811, or any
other provision of the Labor Code.
   SEC. 20.    Section 21167 of the  
Government Code   is amended to read: 
   21167.  At any time within 20 days after the service of any
findings of fact by the  Workers' Compensation  
Employment and Benefits  Appeals Board under this part, any
party aggrieved thereby, or the board, may petition for a rehearing
upon one or more of the following grounds, and no other:
   (a) That the  Workers' Compensation  
Employment and Benefits  Appeals Board acted without or in
excess of its powers.
   (b) That the findings of fact were procured by fraud.
   (c) That the evidence does not justify the findings of fact.
   (d) That the petitioner has discovered new evidence material to
him or her, that he or she could not, with reasonable diligence, have
discovered and produced at the hearing.
   SEC. 21.    Section 21168 of the  
Government Code   is amended to read: 
   21168.  Within 30 days after the petition for rehearing is denied,
or, if the petition is granted, within 30 days after the rendition
of amended findings of fact on rehearing, any person affected
thereby, including this system, may apply to the Supreme Court or to
the court of appeal of the appellate district in which he or she
resides, for a writ of review, for the purpose of inquiring into and
determining the lawfulness of the findings of the  Workers'
Compensation   Employment and Benefits  Appeals
Board.
   SEC. 22.    Section 21169 of the  
Government Code   is amended to read: 
   21169.  The writ of review shall be made returnable not later than
30 days after the date of issuance thereof, and shall direct the
 Workers' Compensation   Employment and Benefits
 Appeals Board to certify its record in the case to the court.
On the return day the cause shall be heard in the court unless
continued for good cause. No new or additional evidence shall be
introduced in the court, but the cause shall be heard on the record
of the appeals board, as certified to by it.
   SEC. 23.    Section 21170 of the  
Government Code   is amended to read: 
   21170.  The review by the court shall not be extended further than
to determine whether the  Workers' Compensation 
 Employment and Benefits  Appeals Board acted without or in
excess of its powers, or unreasonably, or whether its act was
procured by fraud.
   SEC. 24.    Section 21171 of the  
Government Code   is amended to read: 
   21171.  The  Workers' Compensation  
Employment and Benefits  Appeals Board shall have continuing
jurisdiction over its determinations made under Section 21166 and may
at any time within five years of the date of injury, upon notice and
after an opportunity to be heard is given to the parties in
interest, rescind, alter, or amend the determination, good cause
appearing therefor.
   SEC. 25.    Section 21174 of the  
Government Code   is amended to read: 
   21174.  If it is not claimed that the disability is industrial or
if the claim is made and the member so requests, the board shall
proceed with retirement and with the payment of the benefits as are
payable when disability is not industrial. If the  Workers'
Compensation   Employment and Benefits  Appeals
Board subsequently determines that disability is industrial, an
amount equal to the benefits paid shall be deducted from the benefits
payable under this system because of the determination. No
additional benefits shall be payable, however, because disability is
determined to be industrial unless the application for that
determination is filed with the  Workers' Compensation
  Employment and Benefits  Appeals Board or in the
office of this system in Sacramento, for transmission to the 
Workers' Compensation   Employment and Benefits 
Appeals Board within two years after the effective date of the member'
s retirement.
   SEC. 26.    Section 21430 of the  
Government Code   is amended to read: 
   21430.  Upon retirement of a local safety member for industrial
disability, the member shall receive in lieu of the allowance
otherwise provided by this article a disability retirement allowance
in the amount of the percentage of final compensation equal to the
percentage of permanent disability determined by the  Workers'
Compensation   Employment and Benefits  Appeals
Board for the purposes of permanent disability payments pursuant to
Article 3 (commencing with Section 4650) of Chapter 2 of Part 2 of
the Labor Code with respect solely to the injury resulting in the
disability retirement and giving effect to Section 4750 of the Labor
Code, but not less than 50 percent nor in excess of 90 percent of the
member's final compensation.
   This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to the provisions of this section by amendment
to its contract made in the manner prescribed for approval of
contracts, or in the case of contracts made after June 14, 1975, by
express provision in such contract making the contracting agency
subject to the provisions of this section.
   This section shall only apply to members who retire for disability
on and after the date the agency elects to be subject to this
section.
   SEC. 27.    Section 21537 of the  
Government Code   is amended to read: 
   21537.  (a) The special death benefit is payable if the deceased
was a patrol, state peace officer/firefighter, state safety, state
industrial, or local safety member, if his or her death was
industrial and if there is a survivor who qualifies under subdivision
(b) of Section 21541. The  Workers' Compensation 
 Employment and Benefits  Appeals Board, using the same
procedures as in workers' compensation hearings, shall in disputed
cases determine whether the death of a member was industrial.
   (b) The jurisdiction of the  Workers' Compensation
  Employment and Benefits  Appeals Board shall be
limited solely to the issue of industrial causation, and this section
shall not be construed to authorize the  Workers'
Compensation   Employment and Benefits  Appeals
Board to award costs against this system pursuant to Section 4600,
5811, or any other provision of the Labor Code.
   (c) This section does not apply to state safety members described
in Section 20401.5 or local safety members described in Section
20423.6.
   SEC. 28.    Section 21537.5 of the  
Government Code   is amended to read: 
   21537.5.  (a) The special death benefit is payable if the deceased
was a state miscellaneous member in State Bargaining Unit 12
employed by the Department of Transportation, if his or her death
occurred as a direct result of injury arising out of and in the
course of his or her official duties with the department working on
the California highway system performing highway maintenance, and if
there is a survivor who qualifies under subdivision (b) of Section
21541. The  Workers' Compensation   Employment
and Benefits  Appeals Board, using the same procedures as in
workers' compensation hearings, shall in disputed cases determine
whether the death of the member occurred as a result of that injury.
   (b) The jurisdiction of the  Workers' Compensation
  Employment and Benefits  Appeals Board shall be
limited solely to the issue of industrial causation, and this section
may not be construed to authorize the  Workers' Compensation
  Employment Benefits  Appeals Board to award
costs against this system pursuant to Section 4600, 5811, or any
other provision of the Labor Code.
   (c) This section shall not become operative unless and until a
memorandum of understanding has been agreed to by the state employer
and the recognized employee organization making this section
applicable to those members described in subdivision (a).
   SEC. 29.    Section 21538 of the  
Government Code   is amended to read: 
   21538.  The special death benefit is also payable if the deceased
was a state member appointed by the Governor, the Director of
Corrections  and Rehabilitation  , or the Board of 
Prison Terms   Parole Hearings  , if his or her
death occurred as a result of injury or disease arising out of and in
the course of his or her official duties within a state prison or
facility of the Department of Corrections  and Rehabilitation
 , and if there is a survivor who qualifies under subdivision
(b) of Section 21541. The  Workers' Compensation 
 Employment and Benefits  Appeals Board, using the same
procedure as in workers' compensation hearings, shall in disputed
cases determine whether the death of the member occurred as a result
of the injury or disease.
   The jurisdiction of the  Workers' Compensation 
 Employment and Benefits  Appeals Board shall be limited
solely to the issue of industrial causation, and this section shall
not be construed to authorize the  Workers' Compensation
  Employment and Benefits  Appeals Board to award
costs against this system pursuant to Section 4600 or 5811 or any
other provision of the Labor Code.
   SEC. 30.    Section 21540 of the  
Government Code   is amended to read: 
   21540.  The special death benefit is also payable if the deceased
was the Secretary of the Youth and Adult Corrections Agency, or was a
state member appointed by the Secretary of the Youth and Adult
Corrections Agency, the Department of the Youth Authority, the
Superintendent of the California Institution for Women, or the Women'
s Board of Terms and Paroles, the Board of Corrections, or was a
member of the Board of Corrections or the Department of the Youth
Authority not already classified as a prison member, provided that
his or her death occurred as a result of misconduct of an inmate of a
state prison, correctional school, or facility of the Department of
Corrections or the Department of the Youth Authority,  or any
successor agency,  or a parolee therefrom.
   The special death benefit provided by this section is not payable
unless the death of the member arose out of and was in the course of
his or her official duties and unless there is a survivor who
qualifies under subdivision (b) of Section 21541. The 
Workers' Compensation  Employment and Benefits 
Appeals Board, using the same procedure as in workers' compensation
hearings, shall, in disputed cases, determine whether the member's
death arose out of and in the course of his or her official duties.
   A natural parent of surviving children eligible to receive an
allowance payable under this section shall not be required to become
the guardian of surviving unmarried children under 18 years of age in
order to be paid the benefits prescribed for those children.
   The jurisdiction of the  Workers' Compensation 
 Employment and Benefits  Appeals Board shall be limited
solely to the issue of industrial causation, and this section shall
not be construed to authorize the  Workers' Compensation
  Employment and Benefits  Appeals Board to award
costs against this system pursuant to Section 4600 or 5811 or any
other provision of the Labor Code.
   SEC. 31.    Section 21540.5 of the  
Government Code   is amended to read: 
   21540.5.  (a) The special death benefit is also payable if the
deceased was a state, school, or local miscellaneous member, a local
safety member described in Section 20423.6, or a state safety member
described in Section 20401.5, if the death of the member was a direct
consequence of a violent act perpetrated on his or her person that
arose out of and was in the course of his or her official duties and
there is a survivor who qualifies under paragraph (2) of subdivision
(a) of Section 21541. The  Workers' Compensation 
 Employment and Benefits  Appeals Board, using the same
procedure as in workers' compensation hearings, shall, in disputed
cases determine whether the member's death was a direct consequence
of a violent act perpetrated on his or her person that arose out of
and in the course of his or her official duties.
   (b) A natural parent of surviving children eligible to receive an
allowance payable under this section is not required to become the
guardian of surviving unmarried children under 18 years of age in
order to be paid the benefits prescribed for those children.
   (c) The jurisdiction of the  Workers' Compensation
  Employment and Benefits  Appeals Board shall be
limited solely to the issue of industrial causation, and this section
may not be construed to authorize the  Workers' Compensation
  Employment and Benefits  Appeals Board to award
costs against this system pursuant to Section 4600 or 5811 or any
other provision of the Labor Code.
   (d) This section does not apply to a contracting agency nor its
employees unless and until the agency elects to be subject to it by
amendment to its contract made in the manner prescribed for approval
of contracts, or in the case of a new contract, by express provision
of the contract.
   SEC. 32.    Section 21544 of the  
Government Code   is amended to read: 
   21544.  Upon notice of a death as a result of which the special
death benefit may be payable, and when there is a survivor who would
qualify under subdivision (b) of Section 21541, the board, or in
disputed cases, the  Workers' Compensation  
Employment and Benefits  Appeals Board, shall determine whether
the death was industrial, and pending final determination of the
issue, the board shall temporarily pay special death benefits. The
temporary payments shall be deducted from any other death benefits
otherwise payable if the death is determined not to be industrial.
   SEC. 33.    Section 22820 of the  
Government Code   is amended to read: 
   22820.  (a) Upon the death, on or after January 1, 2002, of a
firefighter employed by a county, city, city and county, district, or
other political subdivision of the state, a firefighter employed by
the Department of Forestry and Fire Protection, a firefighter
employed by the federal government who was a resident of this state
and whose regular duty assignment was to perform firefighting
services within this state, or a peace officer as defined in Section
830.1, 830.2, 830.3, 830.31, 830.32, 830.33, 830.34, 830.35, 830.36,
830.37, 830.38, 830.39, 830.4, 830.5, 830.55, or 830.6 of the Penal
Code, if the death occurred as a result of injury or disease arising
out of and in the course of his or her official duties, the surviving
spouse or other eligible family member of the deceased firefighter
or peace officer, if uninsured, is deemed to be an annuitant under
Section 22760 for purposes of enrollment. All eligible family members
of the deceased firefighter or peace officer who are uninsured may
enroll in a health benefit plan of the surviving spouse's choice.
However, an unmarried child of the surviving spouse is not eligible
to enroll in a health benefit plan under this section if the child
was not a family member under Section 22775 and regulations pertinent
thereto prior to the firefighter's or peace officer's date of death.
The employer of the deceased firefighter or peace officer shall
notify the board within 10 days of the death of the employee if a
spouse or family member may be eligible for enrollment in a health
benefit plan under this section.
   (b) Upon notification, the board shall promptly determine
eligibility and shall forward to the eligible spouse or family member
the materials necessary for enrollment. In the event of a dispute
regarding whether a firefighter's or peace officer's death occurred
as a result of injury or disease arising out of and in the course of
his or her official duties as required under subdivision (a), that
dispute shall be determined by the  Workers' Compensation
  Employment and Benefits  Appeals Board, subject
to the same procedures and standards applicable to hearings relating
to claims for workers' compensation benefits. The jurisdiction of the
 Workers' Compensation   Employment and
Benefits  Appeals Board under this section is limited to the
sole issue of industrial causation and this section does not
authorize the  Workers' Compensation  
Employment and Benefits  Appeals Board to award costs against
the system.
   (c) (1) Notwithstanding any other provision of law, and except as
otherwise provided in subdivision (d), the state shall pay the
employer contribution required for enrollment under this part for the
uninsured surviving spouse of a deceased firefighter or peace
officer for life, and the other uninsured eligible family members of
a deceased firefighter or peace officer, provided the family member
meets the eligibility requirements of Section 22775 and regulations
pertinent thereto.
   (2) The contribution payable by the state for each uninsured
surviving spouse and other uninsured eligible family members shall be
adjusted annually and be equal to the amount specified in Section
22871.
                                           (3) The state's
contribution under this section shall commence on the effective date
of enrollment of the uninsured surviving spouse or other uninsured
eligible family members. The contribution of each surviving spouse
and eligible family member shall be the total cost per month of the
benefit coverage afforded him or her under the plan less the portion
contributed by the state pursuant to this section.
   (d) The cancellation of coverage by an annuitant, as defined in
this section, shall be final without option to reenroll, unless
coverage is canceled because of enrollment in an insurance plan from
another source.
   (e) For purposes of this section, "surviving spouse" means a
husband or wife who was married to the deceased firefighter or peace
officer on the deceased's date of death and either for a continuous
period of at least one year prior to the date of death or prior to
the date the deceased firefighter or peace officer sustained the
injury or disease resulting in death.
   (f) For purposes of this section, "uninsured" means that the
surviving spouse is not enrolled in an employer-sponsored health plan
under which the employer contribution covers 100 percent of the cost
of health care premiums.
   (g) The board has no duty to identify, locate, or notify any
surviving spouse or eligible family member who may be or may become
eligible for benefits under this section.
   SEC. 34.    Section 87406 of the  
Government Code   is amended to read: 
   87406.  (a) This section shall be known, and may be cited, as the
Milton Marks Postgovernment Employment Restrictions Act of 1990.
   (b) No Member of the Legislature, for a period of one year after
leaving office, shall, for compensation, act as agent or attorney
for, or otherwise represent, any other person by making any formal or
informal appearance, or by making any oral or written communication,
before the Legislature, any committee or subcommittee thereof, any
present Member of the Legislature, or any officer or employee
thereof, if the appearance or communication is made for the purpose
of influencing legislative action.
   (c) No elected state officer, other than a Member of the
Legislature, for a period of one year after leaving office, shall,
for compensation, act as agent or attorney for, or otherwise
represent, any other person by making any formal or informal
appearance, or by making any oral or written communication, before
any state administrative agency, or any officer or employee thereof,
if the appearance or communication is for the purpose of influencing
administrative action, or influencing any action or proceeding
involving the issuance, amendment, awarding, or revocation of a
permit, license, grant, or contract, or the sale or purchase of goods
or property. For purposes of this subdivision, an appearance before
a "state administrative agency" does not include an appearance in a
court of law, before an administrative law judge, or before the
 Workers' Compensation   Employment and Benefits
 Appeals Board.
   (d) (1) No designated employee of a state administrative agency,
any officer, employee, or consultant of a state administrative agency
who holds a position which entails the making, or participation in
the making, of decisions which may foreseeably have a material effect
on any financial interest, and no member of a state administrative
agency, for a period of one year after leaving office or employment,
shall, for compensation, act as agent or attorney for, or otherwise
represent, any other person, by making any formal or informal
appearance, or by making any oral or written communication, before
any state administrative agency, or officer or employee thereof, for
which he or she worked or represented during the 12 months before
leaving office or employment, if the appearance or communication is
made for the purpose of influencing administrative or legislative
action, or influencing any action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license,
grant, or contract, or the sale or purchase of goods or property. For
purposes of this paragraph, an appearance before a state
administrative agency does not include an appearance in a court of
law, before an administrative law judge, or before the 
Workers' Compensation   Employment and Benefits 
Appeals Board. The prohibition of this paragraph shall only apply to
designated employees employed by a state administrative agency on or
after January 7, 1991.
   (2) For purposes of paragraph (1), a state administrative agency
of a designated employee of the Governor's office includes any state
administrative agency subject to the direction and control of the
Governor.
   (e) The prohibitions contained in subdivisions (b), (c), and (d)
shall not apply to any individual subject to this section who is or
becomes any of the following:
   (1) An officer or employee of another state agency, board, or
commission if the appearance or communication is for the purpose of
influencing legislative or administrative action on behalf of the
state agency, board, or commission.
   (2) An official holding an elective office of a local government
agency if the appearance or communication is for the purpose of
influencing legislative or administrative action on behalf of the
local government agency.
   (f) This section shall become operative on January 1, 1991, but
only if Senate Constitutional Amendment No. 32 of the 1989-90 Regular
Session is approved by the voters. With respect to Members of the
Legislature whose current term of office on January 1, 1991, began in
December 1988, this section shall not apply until January 1, 1993.
   SEC. 35.    Secti   on 6276 of the 
 Harbors and Navigation Code   is amended to read: 

   6276.  (a) In lieu of the benefits afforded pursuant to Division 4
(commencing with Section 3200) and Division 4.7 (commencing with
Section 6200) of the Labor Code, the district may agree to provide
workers' compensation benefits to its stevedore employees in amounts,
and under  such  conditions,  as 
 that  would be payable to stevedore employees of private
employers pursuant to the Longshoremen's and Harbor Workers'
Compensation Act (33 U.S.C. 901  ,  et seq.).
   (b)  Such an   The  agreement shall be
binding upon the parties only if it is in writing and signed by the
employee and by a representative of the district. It shall
acknowledge, in writing, that the benefits agreed upon are authorized
by this section and are expressly in lieu of any benefits available
under Division 4 (commencing with Section 3200) and Division 4.7
(commencing with Section 6200) of the Labor Code.
   (c) All claims for benefits against the district  which
  that  are authorized by this section shall be
determined pursuant to law and the rules and regulations of the
 Workers' Compensation   Employment and Benefits
 Appeals Board. To the fullest extent possible, the 
Workers' Compensation   Employment and Benefits 
Appeals Board shall attempt to apply the Longshoremen's and Harbor
Workers' Compensation Act to employees covered by this section in the
same manner as applicable to private employees.
   (d) Notwithstanding the provisions of Sections 11779 and 11870 of
the Insurance Code or any other provision of law, the State
Compensation Insurance Fund or any private insurer may provide
insurance coverage for the benefits authorized by this section.
   SEC. 36.    Section 6869 of the   Harbors
and Navigation Code   is amended to read: 
   6869.  (a) In lieu of the benefits afforded pursuant to Division 4
(commencing with Section 3200) and Division 4.7 (commencing with
Section 6200) of the Labor Code, the district may agree to provide
workers' compensation benefits to its stevedore employees in amounts,
and under  such  conditions,  as 
 that  would be payable to stevedore employees of private
employers pursuant to the Longshoremen's and Harbor Workers'
Compensation Act (33 U.S.C. 901  ,  et seq.).
   (b)  Such an   The  agreement shall be
binding upon the parties only if it is in writing and signed by the
employee and by a representative of the district. It shall
acknowledge, in writing, that the benefits agreed upon are authorized
by this section and are expressly in lieu of any benefits available
under Division 4 (commencing with Section 3200) and Division 4.7
(commencing with Section 6200) of the Labor Code.
   (c) All claims for benefits against the district  which
  that  are authorized by this section shall be
determined pursuant to law and the rules and regulations of the
 Workers' Compensation   Employment and Benefits
 Appeals Board. To the fullest extent possible, the 
Workers' Compensation   Employment and Benefits 
Appeals Board shall attempt to apply the Longshoremen's and Harbor
Workers' Compensation Act to employees covered by this section in the
same manner as applicable to private employees.
   (d) Notwithstanding the provisions of Section 11779 of the
Insurance Code or any other provision of law, the State Compensation
Insurance Fund may provide insurance coverage for the benefits
authorized by this section.
   SEC. 37.    Section 18947 of the   Health
and Safety Code   is amended to read: 
   18947.  Where the appeal issue results from the enforcement of a
standard for occupational safety and health by an inspector of the
Division of Occupational Safety and Health of the Department of
Industrial Relations, the employer shall appeal directly to the
 Occupational Safety and Health   Employment and
Benefits  Appeals Board, and the appeal shall be conducted
pursuant to the provisions of Chapter 7 (commencing with Section
6600) of Part 1 of Division 5 of the Labor Code. Such an appeal, if
sent to the commission in error, shall be forwarded immediately to
the  Occupational Safety and Health   Employment
and Benefits  Appeals Board. The date of receipt of any such
appeal by the commission shall be considered the date of filing for
purposes of meeting the filing time requirements of Section 6600 of
the Labor Code.
   SEC. 38.    Section 1063.1 of the  
Insurance Code   is amended to read: 
   1063.1.  As used in this article:
   (a) "Member insurer" means an insurer required to be a member of
the association in accordance with subdivision (a) of Section 1063,
except and to the extent that the insurer is participating in an
insolvency program adopted by the United States government.
   (b) "Insolvent insurer" means an insurer that was a member insurer
of the association, consistent with paragraph (11) of subdivision
(c), either at the time the policy was issued or when the insured
event occurred, and against which an order of liquidation or
receivership with a finding of insolvency has been entered by a court
of competent jurisdiction, or, in the case of the State Compensation
Insurance Fund, if a finding of insolvency is made by a duly enacted
legislative measure.
   (c) (1) "Covered claims" means the obligations of an insolvent
insurer, including the obligation for unearned premiums, (A) imposed
by law and within the coverage of an insurance policy of the
insolvent insurer; (B) which were unpaid by the insolvent insurer;
(C) which are presented as a claim to the liquidator in this state or
to the association on or before the last date fixed for the filing
of claims in the domiciliary liquidating proceedings; (D) which were
incurred prior to the date coverage under the policy terminated and
prior to, on, or within 30 days after the date the liquidator was
appointed; (E) for which the assets of the insolvent insurer are
insufficient to discharge in full; (F) in the case of a policy of
workers' compensation insurance, to provide workers' compensation
benefits under the workers' compensation law of this state; and (G)
in the case of other classes of insurance if the claimant or insured
is a resident of this state at the time of the insured occurrence, or
the property from which the claim arises is permanently located in
this state.
   (2) "Covered claims" also include the obligations assumed by an
assuming insurer from a ceding insurer where the assuming insurer
subsequently becomes an insolvent insurer if, at the time of the
insolvency of the assuming insurer, the ceding insurer is no longer
admitted to transact business in this state. Both the assuming
insurer and the ceding insurer shall have been member insurers at the
time the assumption was made. "Covered claims" under this paragraph
shall be required to satisfy the requirements of subparagraphs (A) to
(G), inclusive, of paragraph (1), except for the requirement that
the claims be against policies of the insolvent insurer. The
association shall have a right to recover any deposit, bond, or other
assets that may have been required to be posted by the ceding
company to the extent of covered claim payments and shall be
subrogated to any rights the policyholders may have against the
ceding insurer.
   (3) "Covered claims" does not include obligations arising from the
following:
   (A) Life, annuity, health, or disability insurance.
   (B) Mortgage guaranty, financial guaranty, or other forms of
insurance offering protection against investment risks.
   (C) Fidelity or surety insurance including fidelity or surety
bonds, or any other bonding obligations.
   (D) Credit insurance.
   (E) Title insurance.
   (F) Ocean marine insurance or ocean marine coverage under any
insurance policy including claims arising from the following: the
Jones Act (46 U.S.C. Sec. 688), the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. Sec. 901 et seq.), or any other similar
federal statutory enactment, or any endorsement or policy affording
protection and indemnity coverage.
   (G) Any claims servicing agreement or insurance policy providing
retroactive insurance of a known loss or losses, except a special
excess workers' compensation policy issued pursuant to subdivision
(c) of Section 3702.8 of the Labor Code that covers all or any part
of workers' compensation liabilities of an employer that is issued,
or was previously issued, a certificate of consent to self-insure
pursuant to subdivision (b) of Section 3700 of the Labor Code.
   (4) "Covered claims" does not include any obligations of the
insolvent insurer arising out of any reinsurance contracts, nor any
obligations incurred after the expiration date of the insurance
policy or after the insurance policy has been replaced by the insured
or canceled at the insured's request, or after the insurance policy
has been canceled by the association as provided in this chapter, or
after the insurance policy has been canceled by the liquidator, nor
any obligations to any state or to the federal government.
   (5) "Covered claims" does not include any obligations to insurers,
insurance pools, or underwriting associations, nor their claims for
contribution, indemnity, or subrogation, equitable or otherwise,
except as otherwise provided in this chapter.
   An insurer, insurance pool, or underwriting association may not
maintain, in its own name or in the name of its insured, any claim or
legal action against the insured of the insolvent insurer for
contribution, indemnity or by way of subrogation, except insofar as,
and to the extent only, that the claim exceeds the policy limits of
the insolvent insurer's policy. In those claims or legal actions, the
insured of the insolvent insurer is entitled to a credit or setoff
in the amount of the policy limits of the insolvent insurer's policy,
or in the amount of the limits remaining, where those limits have
been diminished by the payment of other claims.
   (6) "Covered claims," except in cases involving a claim for
workers' compensation benefits or for unearned premiums, does not
include any claim in an amount of one hundred dollars ($100) or less,
nor that portion of any claim that is in excess of any applicable
limits provided in the insurance policy issued by the insolvent
insurer.
   (7) "Covered claims" does not include that portion of any claim,
other than a claim for workers' compensation benefits, that is in
excess of five hundred thousand dollars ($500,000).
   (8) "Covered claims" does not include any amount awarded as
punitive or exemplary damages, nor any amount awarded by the 
Workers' Compensation   Employment and Benefits 
Appeals Board pursuant to Section 5814 or 5814.5 because payment of
compensation was unreasonably delayed or refused by the insolvent
insurer.
   (9) "Covered claims" does not include (A) any claim to the extent
it is covered by any other insurance of a class covered by this
article available to the claimant or insured nor (B) any claim by any
person other than the original claimant under the insurance policy
in his or her own name, his or her assignee as the person entitled
thereto under a premium finance agreement as defined in Section 673
and entered into prior to insolvency, his or her executor,
administrator, guardian or other personal representative or trustee
in bankruptcy and does not include any claim asserted by an assignee
or one claiming by right of subrogation, except as otherwise provided
in this chapter.
   (10) "Covered claims" does not include any obligations arising out
of the issuance of an insurance policy written by the separate
division of the State Compensation Insurance Fund pursuant to
Sections 11802 and 11803.
   (11) "Covered claims" does not include any obligations of the
insolvent insurer arising from any policy or contract of insurance
issued or renewed prior to the insolvent insurer's admission to
transact insurance in the State of California.
   (12) "Covered claims" does not include surplus deposits of
subscribers as defined in Section 1374.1.
   (13) "Covered claims" shall also include obligations arising under
an insurance policy written to indemnify a permissibly self-insured
employer pursuant to subdivision (b) or (c) of Section 3700 of the
Labor Code for its liability to pay workers' compensation benefits in
excess of a specific or aggregate retention, provided, however, that
for purposes of this article, those claims shall not be considered
workers' compensation claims and therefore are subject to the per
claim limit in paragraph (7) and any payments and expenses related
thereto shall be allocated to category (c) for claims other than
workers' compensation, homeowners, and automobile, as provided in
Section 1063.5.
   These provisions shall apply to obligations arising under any
policy as described herein issued to a permissibly self-insured
employer or group of self-insured employers pursuant to Section 3700
of the Labor Code and notwithstanding any other provision of the
Insurance Code, those obligations shall be governed by this provision
in the event that the Self-Insurers' Security Fund is ordered to
assume the liabilities of a permissibly self-insured employer or
group of self-insured employers pursuant to Section 3701.5 of the
Labor Code. The provisions of this paragraph apply only to insurance
policies written to indemnify a permissibly self-insured employer or
group of self-insured employers under subdivision (b) or (c) of
Section 3700, for its liability to pay workers' compensation benefits
in excess of a specific or aggregate retention, and this paragraph
does not apply to special excess workers' compensation insurance
policies unless issued pursuant to authority granted in subdivision
(c) of Section 3702.8 of the Labor Code, and as provided for in
subparagraph (G) of paragraph (3) of subdivision (c). In addition,
this paragraph does not apply to any claims servicing agreement or
insurance policy providing retroactive insurance of a known loss or
losses as are excluded in subparagraph (G) of paragraph (3) of
subdivision (c).
   Each permissibility self-insured employer or group of self-insured
employers, or the Self-Insurers' Security Fund, shall, to the extent
required by the Labor Code, be responsible for paying, adjusting,
and defending each claim arising under policies of insurance covered
under this section, unless the benefits paid on a claim exceed the
specific or aggregate retention, in which case.
   (A) If the benefits paid on the claim exceed the specific or
aggregate retention, and the policy requires the insurer to defend
and adjust the claim, the California Insurance Guarantee Association
(CIGA) shall be solely responsible for adjusting and defending the
claim, and shall make all payments due under the claim, subject to
the limitations and exclusions of this article with regards to
covered claims. As to each claim subject to this paragraph,
notwithstanding any other provisions of the Insurance Code or the
Labor Code, and regardless of whether the amount paid by CIGA is
adequate to discharge a claim obligation, neither the self-insured
employer, group of employers, nor the Self-Insurers' Security Fund,
shall have any obligation to pay benefits over and above the specific
or aggregate retention, except as provided in subdivision (c).
   (B) If the benefits paid on the claim exceed the specific or
aggregate retention, and the policy does not require the insurer to
defend and adjust the claim, the permissibility self-insured employer
or group of self-insured employers, or the Self-Insurers' Security
Fund, shall not have any further payment obligations with respect to
the claim, but shall continue defending and adjusting the claim, and
shall have the right, but not the obligation, in any proceeding to
assert all applicable statutory limitations and exclusions as
contained in this article with regard to the covered claim. CIGA
shall have the right, but not the obligation, to intervene in any
proceeding where the self-insured employer, group of self-insured
employers, or the Self-Insurers' Security Fund is defending any such
claim and shall be permitted to raise the appropriate statutory
limitations and exclusions as contained in this article with respect
to covered claims. Regardless of whether the self-insured employer or
group of employers, or the Self-Insurers' Security Fund, asserts the
applicable statutory limitations and exclusions, or whether CIGA
intervenes in any such proceeding, CIGA shall be solely responsible
for paying all benefits due on the claim, subject to the exclusions
and limitations of this article with respect to covered claims. As to
each claim subject to this paragraph, notwithstanding any other
provision of the Insurance Code or the Labor Code and regardless of
whether the amount paid by CIGA is adequate to discharge a claim
obligation, neither the self-insured employer, group of employers,
nor the Self-Insurers' Security Fund, shall have any obligation to
pay benefits over and above the specific or aggregate retention,
except as provided in this subdivision.
   (d) In the event that the benefits paid on the covered claim
exceed the per claim limit in paragraph (7) of subdivision (c), the
responsibility for paying, adjusting, and defending the claim shall
be returned to the permissibly self-insured employer or group of
employers, or the Self-Insurers' Security Fund.
   These provisions shall apply to all pending and future
insolvencies. For purposes of this paragraph, a pending insolvency is
one involving a company that is currently receiving benefits from
the guaranty association.
   (e) "Admitted to transact insurance in this state" means an
insurer possessing a valid certificate of authority issued by the
department.
   (f) "Affiliate" means a person who directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under
common control with an insolvent insurer on December 31 of the year
next preceding the date the insurer becomes an insolvent insurer.
   (g) "Control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies
of a person, whether through the ownership of voting securities, by
contract other than a commercial contract for goods or nonmanagement
services, or otherwise, unless the power is the result of an official
position with or corporate office held by the person. Control is
presumed to exist if any person, directly or indirectly, owns,
controls, holds with the power to vote, or holds proxies
representing, 10 percent or more of the voting securities of any
other person. This presumption may be rebutted by showing that
control does not in fact exist.
   (h) "Claimant" means any insured making a first party claim or any
person instituting a liability claim; provided that no person who is
an affiliate of the insolvent insurer may be a claimant.
   (i) "Ocean marine insurance" includes marine insurance as defined
in Section 103, except for inland marine insurance, as well as any
other form of insurance, regardless of the name, label, or marketing
designation of the insurance policy, that insures against maritime
perils or risks and other related perils or risks, which are usually
insured against by traditional marine insurance such as hull and
machinery, marine builders' risks, and marine protection and
indemnity. Those perils and risks insured against include, without
limitation, loss, damage, or expense or legal liability of the
insured arising out of or incident to ownership, operation,
chartering, maintenance, use, repair, or construction of any vessel,
craft or instrumentality in use in ocean or inland waterways,
including liability of the insured for personal injury, illness, or
death for loss or damage to the property of the insured or another
person.
   (j) "Unearned premium" means that portion of a premium as
calculated by the liquidator that had not been earned because of the
cancellation of the insolvent insurer's policy and is that premium
remaining for the unexpired term of the insolvent insurer's policy.
"Unearned premium" does not include any amount sought as return of a
premium under any policy providing retroactive insurance of a known
loss or return of a premium under any retrospectively rated policy or
a policy subject to a contingent surcharge or any policy in which
the final determination of the premium cost is computed after
expiration of the policy and is calculated on the basis of actual
loss experience during the policy period.
   SEC. 39.    Section 11659 of the   Insurance
Code   is amended to read: 
   11659.   Such   This  approved form of
policy, limited pursuant to Section 11657, shall not be otherwise
limited except by  indorsement   endorsement
 thereon in accordance with a form prescribed by the
commissioner or in accordance with rules adopted by the commissioner.
Such indorsement   The endorsement  form
shall not be subject to Section 11658. Before prescribing 
such indorsement   the endorsement  form or
adopting  such   a  rule, the commissioner
                                             shall consult concerning
it with the  Workers' Compensation   Employment
and Benefits  Appeals Board.
   SEC. 40.    Section 11698.1 of the  
Insurance Code   is amended to read: 
   11698.1.  From time to time and in any event at or prior to the
time of the filing of his or her petition for discharge as receiver,
the commissioner shall do the following:
   (a) File with the  Workers' Compensation  
Employment and Benefits  Appeals Board an accounting of all
trust funds received and used from the proceeds of the deposit
required pursuant to Section 11691.
   (b) File with the court an accounting of all funds received and
used as expenses from the general funds of the insurer.
   SEC. 41.    Section 11698.2 of the  
Insurance Code   is amended to read:
   11698.2.  If the commissioner enters into a reinsurance and
assumption agreement as provided in subdivision (a) of Section
11698.01, that agreement shall provide for all of the following:
   (a) The reinsurance and assumption of all those obligations by the
reinsuring and assuming insurers.
   (b) If there is more than one reinsurer the proportion of all
those obligations assumed by each reinsurer and a method for the
actual processing and payment of those obligations by the reinsurers
or their representatives.
   (c) The reimbursement of the reinsuring and assuming insurers from
the deposit of the insurer in the delinquency proceeding. The
provision shall conform with Section 11698.21 and shall not be
effective unless approved by the  Workers' Compensation
  Employment and Benefits  Appeals Board.
   (d) The amounts, if any, to be paid the reinsurers from the
general funds of the insurer. If the agreement provides that amounts
from the general funds of the insurer are to be paid to the
reinsurers, those payments shall be approved by the court where the
delinquency proceedings are pending.
   (e) Any other matters as are necessary and proper to achieve the
purposes of the reinsurance and assumption agreement.
   SEC. 42.    Section 53 of the   Labor Code
  is amended to read: 
   53.  Whenever in Section 1001 or in Part 1 (commencing with
Section 11000) of Division 3 of Title 2 of the Government Code "head
of the department" or similar designation occurs, the same shall, for
the purposes of this code, mean the director, except that in respect
to matters which by the express provisions of this code are
committed to or retained under the jurisdiction of the Division of
Workers' Compensation, the State Compensation Insurance Fund, the
Occupational Safety and Health Standards Board,  the
Occupational Safety and Health Appeals Board,  or the
Industrial Welfare Commission the designation shall mean the Division
of Workers' Compensation, the Administrative Director of the
Division of Workers' Compensation,  the Workers' Compensation
Appeals Board,  the State Compensation Insurance Fund, the
Occupational Safety and Health Standards Board,  the
Occupational Safety and Health Appeals Board,  or the
Industrial Welfare Commission, as the case may be.
   SEC. 43.    Section 96 of the   Labor Code
  is amended to read: 
   96.  The Labor Commissioner and his or her deputies and
representatives authorized by him or her in writing shall, upon the
filing of a claim therefor by an employee, or an employee
representative authorized in writing by an employee, with the Labor
Commissioner, take assignments of:
   (a) Wage claims and incidental expense accounts and advances.
   (b) Mechanics' and other liens of employees.
   (c) Claims based on "stop orders" for wages and on bonds for
labor.
   (d) Claims for damages for misrepresentations of conditions of
employment.
   (e) Claims for unreturned bond money of employees.
   (f) Claims for penalties for nonpayment of wages.
   (g) Claims for the return of workers' tools in the illegal
possession of another person.
   (h) Claims for vacation pay, severance pay, or other compensation
supplemental to a wage agreement.
   (i) Awards for workers' compensation benefits in which the
 Workers' Compensation   Employment and Benefits
 Appeals Board has found that the employer has failed to secure
payment of compensation and where the award remains unpaid more than
10 days after having become final.
   (j) Claims for loss of wages as the result of discharge from
employment for the garnishment of wages.
   (k) Claims for loss of wages as the result of demotion,
suspension, or discharge from employment for lawful conduct occurring
during nonworking hours away from the employer's premises.
   SEC. 44.    Section 110 of the   Labor Code
  is amended to read: 
   110.  As used in this chapter:
   (a) "Appeals board" means the  Workers' Compensation
  Employment and Benefits  Appeals Board. 
The title of a member of the board is "commissioner." 
   (b) "Administrative director" means the Administrative Director of
the Division of Workers' Compensation.
   (c) "Division" means the Division of Workers' Compensation.
   (d) "Medical director" means the physician appointed by the
administrative director pursuant to Section 122.
   (e) "Qualified medical evaluator" means physicians appointed by
the administrative director pursuant to Section 139.2.
   (f) "Court administrator" means the administrator of the workers'
compensation adjudicatory process at the trial level.
   SEC. 45.    Section 111 of the   Labor Code
  is amended to read: 
   111.  (a)  The Workers' Compensation Appeals Board,
consisting of seven members, shall exercise all judicial powers
vested in it under this code. In all other respects, the 
 The  Division of Workers' Compensation is under the control
of the administrative director and, except as to those duties,
powers, jurisdiction, responsibilities, and purposes as are
specifically vested in the appeals board, the administrative director
shall exercise the powers of the head of a department within the
meaning of Article 1 (commencing with Section 11150) of Chapter 2 of
Part 1 of Division 3 of Title 2 of the Government Code with respect
to the Division of Workers' Compensation which shall include
supervision of, and responsibility for, personnel, and the
coordination of the work of the division, except personnel of the
appeals board.
   (b) The administrative director shall prepare and submit, on March
1 of each year, a report to the Governor and the Legislature
covering the activities of the division during the prior year. The
report shall include recommendations for improvement and the need, if
any, for legislation to enhance the delivery of compensation to
injured workers. The report shall include data on penalties imposed
on employers or insurers due to delays in compensation or notices, or
both, by category of penalty imposed.
   SEC. 46.    Section 112 of the   Labor Code
  is repealed.  
   112.  The members of the appeals board shall be appointed by the
Governor with the advice and consent of the Senate. The term of
office of the members appointed prior to January 1, 1990, shall be
four years, and the term of office of members appointed on or after
January 1, 1990, shall be six years and they shall hold office until
the appointment and qualification of their successors.
   Five of the members of the appeals board shall be experienced
attorneys at law admitted to practice in the State of California. The
other two members need not be attorneys at law. All members shall be
selected with due consideration of their judicial temperament and
abilities. Each member shall receive the salary provided for by
Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of
Title 2 of the Government Code. 
   SEC. 47.    Section 113 of the   Labor Code
  is repealed.  
   113.  The Governor shall designate the chairman of the appeals
board from the membership of the appeals board. The person so
designated shall hold the office of chairman at the pleasure of the
Governor.
   The chairman may designate in writing one of the other members of
the appeals board to act as chairman during such time as he may be
absent from the state on official business, on vacation, or absent
due to illness. 
   SEC. 48.    Section 115 of the   Labor Code
  is repealed.  
   115.  Actions of the appeals board shall be taken by decision of a
majority of the appeals board except as otherwise expressly
provided.
   The chairman shall assign pending cases in which reconsideration
is sought to any three members thereof for hearing, consideration and
decision. Assignments by the chairman of members to such cases shall
be rotated on a case-by-case basis with the composition of the
members so assigned being varied and changed to assure that there
shall never be a fixed and continued composition of members. Any such
case assigned to any three members in which the finding, order,
decision or award is made and filed by any two or more of such
members shall be the action of the appeals board unless
reconsideration is had in accordance with the provisions of Article 1
(commencing with Section 5900), Chapter 7, Part 4, Division 4 of
this code. Any case assigned to three members shall be heard and
decided only by them, unless the matter has been reassigned by the
chairman on a majority vote of the appeals board to the appeals board
as a whole in order to achieve uniformity of decision, or in cases
presenting novel issues. 
   SEC. 49.    Section 116 of the   Labor Code
  is repealed.  
   116.  The seal of the appeals board bearing the inscription
"Workers' Compensation Appeals Board, Seal" shall be affixed to all
writs and authentications of copies of records and to such other
instruments as the appeals board directs. 
   SEC. 50.    Section 148 of the   Labor Code
  is amended to read: 
   148.  (a) There is in the  Department of Industrial
Relations the Occupational Safety and Health   Labor and
Workforce Development Agency, the Employment and Benefits 
Appeals Board, consisting of  three   nine 
members appointed by the Governor, subject to the approval of the
Senate.  One member shall be from the field of management,
one shall be from the field of labor and one member shall be from the
general public. The public member shall be chosen from other than
the fields of management and labor.  Each member of the
appeals board shall devote his  or her  full time to the
performance of his  or her  duties.
   (b) The  chairman   chairperson  and
each member of the appeals board shall receive the annual salary
provided for by Chapter 6 (commencing with Section 11550) of Part 1
of Division 3 of Title 2 of the Government Code.
   (c) The Governor shall designate the  chairman 
 chairperson  of the appeals board from the membership of
the appeals board. The person so designated shall hold the office of
 chairman   chairperson  at the pleasure of
the Governor. The  chairman   chairperson 
shall designate a member of the appeals board to act as 
chairman   chairperson  in his  or her 
absence.
   SEC. 51.    Section 148.01 is added to the  
Labor Code   , to read:  
   148.01.  (a) The Employment and Benefits Appeals Board succeeds
to, and is vested with, all the duties, powers, purposes,
responsibilities, and jurisdiction of the Occupational Safety and
Health Appeals Board, the California Unemployment Insurance Appeals
Board, and the Workers' Compensation Appeals Board.
   (b) All officers and employees of the Occupational Safety and
Health Appeals Board, the Unemployment Insurance Appeals Board, and
the Workers' Compensation Appeals Board, who are serving in the state
civil service, other than as temporary employees, shall be
transferred to the Employment and Benefits Appeals Board. The status,
positions, and rights of those persons shall not be affected by the
transfer and shall be retained by those persons as officers and
employees of the Employment and Benefits Appeals Board, pursuant to
the State Civil Service Act (Part 2 (commencing with Section 18500)
of Division 5 of Title 2 of the Government Code), except as to
positions exempt from the civil service.
   (c)  The Employment and Benefits Appeals Board shall have
possession and control of all records, papers, offices, equipment,
supplies, moneys, funds, appropriations, licenses, permits,
agreements, contracts, claims, judgments, land, and other property,
real or personal, connected with the administration of, or held for
the benefit or use of, the Occupational Safety and Health Appeals
Board, the Unemployment Insurance Appeals Board, or the Workers'
Compensation Appeals Board.
   (d) (1) Any regulation or other action adopted, prescribed, taken,
or performed by an agency or officer in the administration of a
program or the performance of a duty, responsibility, or
authorization transferred by the act adding this subdivision shall
remain in effect and shall be deemed to be a regulation or action of
the agency or officer to whom the program, duty, responsibility, or
authorization is transferred.
   (2) No suit, action, or other proceeding lawfully commenced by or
against any agency or other officer of the state, in relation to the
administration of any program or the discharge of any duty,
responsibility, or authorization transferred by the act adding this
subdivision, shall abate by reason of the transfer of the program,
duty, responsibility, or authorization under the act adding this
subdivision.
   (e) Any further reference in this chapter to the appeals board
shall refer to the Employment and Benefits Appeals Board, except as
indicated. 
   SEC. 52.    Section 148.1 of the   Labor
Code   is amended to read: 
   148.1.  Each member of the appeals board shall serve  for
a term of four years   at the pleasure of the Governor
 and until his  or her successor is appointed and
qualifies.  The terms of the first three members appointed to
the appeals board shall expire on the second, third, and fourth
January 15th following the date of the appointment of the first
appointed member. A vacancy shall be filled by the Governor, subject
to the approval of the Senate by appointment for the unexpired term.

   SEC. 53.    Section 148.2 of the   Labor
Code   is amended to read: 
   148.2.  The appeals board may employ necessary assistants,
officers, experts, hearing officers, and such other employees as it
deems necessary. All  such  personnel of the appeals
board shall be under the supervision of the  chairman
  chairperson  of the appeals board or an executive
officer to whom the  chairman   chairperson
 delegates  such  responsibility. All 
such  personnel shall be appointed pursuant to the State
Civil Service Act (Part 2 (commencing with Section 18500) of Division
5 of Title 2 of the Government Code), except for the one exempt
deputy or employee allowed by subdivision (e) of Section 4 of Article
 XXIV   VII  of the California
Constitution. The salaries of the hearing officers shall be fixed by
the State Personnel Board at a rate comparable to that of other
referees or hearing officers in state service whose duties and
responsibilities are comparable, without regard to whether 
such  other positions have membership in the State Bar of
California as a prerequisite to appointment.
   SEC. 54.    Section 3205.5 of the   Labor
Code   is amended to read: 
   3205.5.  "Appeals board" means the  Workers' Compensation
  Employment and Benefits  Appeals Board 
of the Division of Workers' Compensation  .
   SEC. 55.    Section 6101 of the   Labor Code
  is amended to read: 
   6101.  Unless the context otherwise requires, as used in this
division:
   (a) "State agency" means any agency, department, division,
commission, board, bureau, officer, or other authority of the State
of California.
   (b) "Fund" means State Compensation Insurance Fund.
   (c) "Appeals board" means the  Workers' Compensation
  Employment and Benefits  Appeals Board.
   SEC. 56.    The heading of Article 3 (commencing with
Section 401) of Chapter 2 of Part 1 of Division 1 of the  
Unemployment Insurance Code   is repealed.  

      Article 3.  California Unemployment Insurance Appeals Board


   SEC. 57.    The heading of Article 3 (commencing with
Section 401) is added to Chapter 2 of Part 1 of Division 1 of the
  Unemployment Insurance Code   , to read: 


      Article 3.  Appeals Division


   SEC. 58.    Section 401 of the  
Unemployment Insurance Code   is amended to read: 
   401.  There is in the department an Appeals Division consisting of
the  California Unemployment Insurance  
Employment and Benefits  Appeals Board and its employees.
 The appeals board consists of seven members. Five members
shall be appointed by the Governor, subject to the approval of the
Senate. One member shall be appointed by the Speaker of the Assembly,
and one member shall be appointed by the Senate Rules Committee. Two
of the members of the appeals board shall be attorneys at law
admitted to practice in the State of California. The other members
need not be attorneys. Each member of the board shall devote his full
time to the performance of his duties. The chairman and each member
of the board shall receive the annual salary provided for by Chapter
6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2
of the Government Code. The Governor shall designate the chairman of
the appeals board from the membership of the appeals board. The
person so designated shall hold the office of chairman at the
pleasure of the Governor. The chairman shall designate a member of
the appeals board to act as chairman in his absence. 
   SEC. 59.    Section 402 of the  
Unemployment Insurance Code   is repealed.  
   402.  Each member of the appeals board shall serve for a term of
four years and until his successor is appointed and qualifies. The
term of office of each member of the board appointed pursuant to the
1967 amendment to this section shall also be for four years;
provided, however, that of the two board members first appointed
pursuant to such amendments, one shall be appointed for a term which
shall expire July 1, 1970, and one for a term which shall expire July
1, 1971.
   A vacancy shall be filled by the appointing power by appointment
for the unexpired term. A vacancy filled by the Governor shall be
subject to the approval of the Senate.  
  SECTION 1.    Section 401 of the Unemployment
Insurance Code is amended to read:
   401.  There is in the department an Appeals Division consisting of
the California Unemployment Insurance Appeals Board and its
employees. The appeals board consists of seven members. Five members
shall be appointed by the Governor, subject to the approval of the
Senate. One member shall be appointed by the Speaker of the Assembly,
and one member shall be appointed by the Senate Committee on Rules.
Two of the members of the appeals board shall be attorneys at law
admitted to practice in the State of California. The other members
need not be attorneys. Each member of the board shall devote his or
her full time to the performance of his or her duties. The
chairperson and each member of the board shall receive the annual
salary provided for by Chapter 6 (commencing with Section 11550) of
Part 1 of Division 3 of Title 2 of the Government Code. The Governor
shall designate the chairperson of the appeals board from the
membership of the appeals board. The person who is so designated
shall hold the office of chairperson at the pleasure of the Governor.
The chairperson shall designate a member of the appeals board to act
as chairperson in his or her absence.