BILL NUMBER: SB 1406	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Emmerson

                        FEBRUARY 24, 2012

   An act to amend Section 6500 of the Government Code and to amend
Sections 11785 and 11873 of the Insurance Code, relating to the State
Compensation Insurance Fund.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1406, as introduced, Emmerson. State Compensation Insurance
Fund: joint powers authority: executive appointments.
   Existing law provides for the existence of the State Compensation
Insurance Fund (SCIF) to be administered by a board of directors for
the purpose of transacting workers' compensation insurance, and
insurance against the expense of defending any suit for serious and
willful misconduct, against an employer or his or her agent, and
insurance to employees and other persons of the compensation fixed by
the workers' compensation laws for employees and their dependents.
   Existing law authorizes 2 or more public agencies, as defined, to
enter into an agreement to exercise common powers.
   This bill would include SCIF as a public agency that may enter
into a joint powers agreement, and would make conforming changes.
   Existing law authorizes the board of directors of SCIF to appoint
a president, a chief financial officer, a chief operating officer, a
chief information technology officer, a chief investment officer, a
chief risk officer, and a general counsel.
   This bill would additionally authorize the board of directors of
SCIF to appoint other key executive positions as determined by the
board.
   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 6500 of the Government Code is amended to read:

   6500.  As used in this article, "public agency" includes, but is
not limited to, the federal government or any federal department or
agency, this state, another state or any state department or agency,
 the State Compensation Insurance Fund,  a county, county
board of education, county superintendent of schools, city, public
corporation, public district, regional transportation commission of
this state or another state, a federally recognized Indian tribe, or
any joint powers authority formed pursuant to this article by any of
these agencies.
  SEC. 2.  Section 11785 of the Insurance Code is amended to read:
   11785.  (a) The board of directors shall appoint a president, a
chief financial officer, a chief operating officer, a chief
information technology officer, a chief investment officer, a chief
risk officer,  and  a general counsel  , and
other key executive positions, as determined by the board  . The
board of directors shall set the salary for each position. These
positions shall not be subject to otherwise applicable provisions of
the Government Code and the Public Contract Code, and for those
purposes the fund shall not be considered a state agency or other
public entity. The president shall manage and conduct the business
and affairs of the fund under the general direction and subject to
the approval of the board of directors, and shall perform other
duties as the board of directors prescribes.
   (b) Section 87406 of the Government Code, the Milton Marks
Postgovernment Employment Restrictions Act of 1990, shall apply to
the fund. Members of the board, the president, the chief financial
officer, the chief operating officer, the general counsel, and any
other person designated by the fund shall be deemed to be designated
employees for the purpose of that act.
   (c) Both 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) shall apply to the fund.
  SEC. 3.  Section 11873 of the Insurance Code is amended to read:
   11873.  (a) Except as provided by subdivision (b), the fund shall
not be subject to the provisions of the Government Code made
applicable to state agencies generally or collectively, unless the
section specifically names the fund as an agency to which the
provision applies.
   (b) The fund shall be subject to the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of, Chapter
3.5 (commencing with Section 6250)  and Chapter 5 (commencing
with Section 6500)  of Division 7 of Title 1 of, Chapter 6.5
(commencing with Section 8543) of Division 1 of Title 2 of, Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of, the Government Code, and Division 5 (commencing with
Section 18000) of Title 2 of the Government Code, with the exception
of all of the following provisions of that division:
   (1) Article 1 (commencing with Section 19820) and Article 2
(commencing with Section 19823) of Chapter 2 of Part 2.6 of Division
5.
   (2) Sections 19849.2, 19849.3, 19849.4, and 19849.5.
   (3) Chapter 4.5 (commencing with Section 19993.1) of Part 2.6 of
Division 5.
   (c) Notwithstanding any provision of the Government Code or any
other provision of law, the positions funded by the State
Compensation Insurance Fund are exempt from any hiring freezes and
staff cutbacks otherwise required by law. This subdivision is
declaratory of existing law.