AB 2081 Assembly Bill

BILL NUMBER: AB 2081	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Education (Brownley (Chair), Nestande
(Vice Chair), Ammiano, Arambula, Buchanan, Carter, Eng, Solorio, and
Torlakson)

                        FEBRUARY 18, 2010

   An act to amend Sections 1274 and 5200 of the Education Code,
relating to education.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2081, as introduced, Committee on Education. Education.
    (1) Existing law authorizes a county superintendent of schools to
establish a fund or funds for losses and payments, including, but
not limited to, property of the superintendent, any liability, and
workers' compensation, in the county treasury for the purpose of
covering the deductible amount under deductible types of insurance
policies, losses or payments arising from self-insurance programs, or
losses or payments due to noninsured perils. Existing law specifies
that these provisions do not preclude a county superintendent from
providing protection against those losses and liability partly by
means of insurance written by acceptable insurers.
   This bill would delete an obsolete cross-reference relating to
insurance and would make technical changes.
   (2) Existing law requires a unified school district that is
coterminous with or includes within its boundaries a chartered city
or city and county to be governed by the board of education provided
for in the charter of the city or city and county. Existing law
exempts such a unified school district from certain provisions of
law, except as specified.
   This bill would delete an obsolete cross-reference relating to
these provisions and would make technical changes.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1274 of the Education Code is amended to read:
   1274.  The county superintendent of schools may establish a fund
or funds for losses, and payments, including, but not limited to,
property of the  county  superintendent  of schools
 , any liability, and workers' compensation, in the county
treasury for the purpose of covering the deductible amount under
deductible types of insurance policies, losses or payments arising
from self-insurance programs, or losses or payments due to noninsured
perils. In the fund or funds shall be placed such sums, to be
provided in the budget of the  county  superintendent of
schools  , as will create an amount which, together with
investments made from the fund or funds, will be sufficient in the
judgment of the  county  superintendent  of schools
 to protect the  county  superintendent  of schools
 from those losses or to provide for payments on the deductible
amount under deductible types of insurance policies, losses or
payments arising from self-insurance programs, or losses or payments
due to noninsured perils. Nothing in this section shall be construed
as prohibiting the  county  superintendent  of schools
 from providing protection against those losses or liability for
the payment of claims partly by means of the fund or funds and
partly by means of insurance written by acceptable insurers 
as provided in Section 39601  .
   The fund or funds shall be considered as separate and apart from
all other funds of the  county  superintendent  of
schools  , and the balance therein shall not be considered as
being part of the working cash of the  county 
superintendent  of schools  in compiling annual budgets.
   Warrants may be drawn on, or transfers made from, the fund or
funds so created only to reimburse or indemnify the  county 
superintendent  of schools  for losses as herein specified,
and for the payment of claims, administrative costs, related
services, and to provide for deductible insurance amounts and
purchase of excess insurance. The warrants or transfers shall be
within the purpose of the fund or funds as established by the
county  superintendent  of schools  .
   The cash placed in the fund or funds may be invested and
reinvested by the county treasurer, with the advice and consent of
the  county  superintendent  of schools  , in
securities which are legal investments for surplus county funds in
this state. The income derived from the investments, together with
interest earned on uninvested funds, shall be considered revenue of
and be deposited in the fund. The cost of contracts or services
authorized by this section are appropriate charges against the
respective fund.
   The  county  superintendent  of schools  may
contract for investigative, administrative, and claims adjustment
services relating to claims. The contract may provide that the
contracting firm may reject, settle, compromise, and approve claims
against the  county  superintendent  of schools  ,
its officers or employees, within those limits and for those amounts
as the  county  superintendent  of schools  may
specify, and may provide that the contracting firm may execute and
issue checks in payment of those claims, which checks shall be
payable only from a trust account which may be established by the
 county  superintendent  of schools  . Funds in the
trust account established by the  county  superintendent
 of schools  pursuant to the provisions of this section
shall not exceed a sum sufficient as determined by the superintendent
to provide for the settlement of claims for a 30-day period. The
rejection or settlement and approval of a claim by the contracting
firm in accordance with the terms of the contract shall have the same
effect as would the rejection or settlement and approval of the
claim by the  county  superintendent  of schools  .
The contract may also provide that the contracting firm may employ
legal counsel, subject to those terms and limitations as the 
county  superintendent  of schools  may prescribe, to
advise the contracting firm concerning the legality and advisability
of rejecting, settling, compromising, and paying claims referred to
the contracting firm by the  county  superintendent  of
schools  for investigation and adjustment, or to represent the
superintendent in litigation concerning the claims. The compensation
and expenses of the attorney for services rendered to the  county
 superintendent  of schools  shall be an appropriate
charge against the appropriate fund.
   The contract provided for in this section may contain any other
terms and conditions the  county  superintendent  of
schools  may consider necessary or desirable to effectuate the
superintendent's self-insured programs.
   In lieu of, or in addition to, contracting for the services
described in this section, the  county  superintendent 
of schools  may authorize an employee or employees to perform
any or all of the services and functions which the  county 
superintendent  of schools  may contract for under the
provisions of this section.
   As used in this section, "firm" includes a person, corporation, or
other legal entity.
   A county superintendent of schools may participate in, or
administer, insurance for one or more school or community college
districts pursuant to this section, and  Sections 39602 and
  Section  81602.
  SEC. 2.  Section 5200 of the Education Code is amended to read:
   5200.  Any unified school district  which  
that  is coterminous with or includes within its boundaries a
chartered city or city and county shall be governed by the board of
education provided for in the charter of the city or city and county.
Sections 5000, 5017,  5050,  5090, 5091, 35013,
35101, and 35105 shall not apply to such unified school districts,
except as follows:
   (a) As provided in the charter of the city or city and county.
   (b) If the charter of the city or city and county fails to provide
for a board of education or for any or all of the matters specified
in Sections 5000, 5017,  5050,  5090, 5091, 5222,
35013, 35101, and 35105  , those sections  shall apply as to
the matter not provided for in the charter.