BILL NUMBER: AB 2396	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 19, 2010

   An act to amend Section 11751.5 of the Insurance Code, relating to
workers' compensation insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2396, as amended, Solorio. Workers' compensations insurance:
rating organizations: statistical agent.
   Existing law requires the commissioner to designate a licensed
rating organization, as defined, as his or her statistical agent to
gather and compile workers' compensation insurers' loss and expense
experience statistics, and all licensed rating organizations are
required to report loss and expense experiences of their member
workers' compensation insurers to the statistical agent. Subject to
reasonable rules approved by the commissioner, the statistical agent
is required to make available those compiled experience statistics to
all licensed rating organizations. The statistical agent is
authorized to make a reasonable charge to other ratings organizations
for the expense incurred by it in combining, tabulating, and
compiling the experience of all workers' compensation insurers.
   This bill would prohibit the commissioner from designating a
rating organization as his or her statistical agent unless the rating
organization agrees to comply with the Bagley-Keene Open Meeting Act
and the California Public Records Act  , with regard to those
activities that are associated with its role as the commissioner's
statistical agent  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 11751.5 of the Insurance Code is amended to
read:
   11751.5.  (a) The commissioner, after notice and hearing, may
promulgate reasonable rules and statistical plans, which may be
modified from time to time and which shall be used thereafter in the
recording and reporting by insurers of their loss and expense
experience in order that the experiences of all insurers may be made
available in such form and detail as may be necessary to aid the
commissioner in administering the provisions of Article 2 (commencing
with Section 11730).
   (b) The commissioner shall designate a rating organization
licensed under this article as his or her statistical agent to gather
and compile such experience statistics and all licensed rating
organizations shall report the experience of their members to such
designated rating organization. Subject to reasonable rules approved
by the commissioner, such designated rating organization shall make
such experience statistics, when compiled, available to all licensed
rating organizations and may make a reasonable charge to other rating
organizations for the expense incurred by it in combining,
tabulating and compiling the experience of all workers' compensation
insurers.
   (c) The commissioner shall not designate a rating organization as
his or her statistical agent unless that rating organization agrees
to comply with the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code) and the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code)  , with  regard to those
activities that are associated with its role as the commissioner's
statistical agent  .