BILL NUMBER: SB 1406 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 29, 2012
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 amended, 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 dependents. Existing law
authorizes requires the board
of directors of SCIF SCIF board of directors 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. Existing
law exempts those positions from provisions of the
Government Code and Public Contract Code that are otherwise
applicable to state agencies and public entities and for these
purposes existing law provides that the SCIF is not considered a
state agency or other public entity.
This bill would additionally authorize
require the board of directors of SCIF
SCIF board of directors to appoint other key executive
positions as determined by the board additional
positions, not to exceed a total of 20 positions, including an
administrator, senior management employees next in line of authority
to the positions specified above, subordinate administrators with
specialized training and knowledge, and other legal staff .
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 1. 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, a general counsel, and other key executive
positions, as determined by the board an
administrator, senior management employees next in line of authority
to these positions, and subordinate administrators with speciali
zed training and knowledge in areas, including, but not
limited to, workers' compensation insurance, technology, actuarial
services, financial modeling, investment, and financial
accounting, and other legal counsel. The total number of positions
authorized under this section shall not exceed 20 . 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
(b) 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)
(c) 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)
(d) 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.