BILL NUMBER: SB 1513	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Negrete McLeod

                        FEBRUARY 24, 2012

   An act to amend Section 11797 of the Insurance Code, relating to
the State Compensation Insurance Fund.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1513, as introduced, Negrete McLeod. State Compensation
Insurance Fund: investments.
   Existing law requires the board of directors of the State
Compensation Insurance Fund to invest and reinvest, from time to
time, all moneys in the State Compensation Insurance Fund in excess
of current requirements in the same manner as is authorized in
certain provisions applicable to private insurance carriers. Existing
law prohibits the board from investing or reinvesting in certain
investments, including real estate and call options on common stock.
   This bill would expand the board's choice of investments of excess
moneys by allowing the board to invest or reinvest in additional
investments in the same manner as provided for private carriers,
including, but not limited to, in the stock of certain corporations,
specified mortgage-related investment instruments, and in the stock
of a federal home loan bank.
   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 11797 of the Insurance Code is amended to read:

   11797.  (a) The board of directors shall cause all moneys in the
State Compensation Insurance Fund that are in excess of current
requirements to be invested and reinvested, from time to time, in the
same manner as provided for private insurance carriers pursuant to
Article 3 (commencing with Section 1170) and Article 4 (commencing
with Section 1190) of Chapter 2 of Part 2 of Division 1, but
excluding Sections  1191,  1191.1, 1191.5, 1192.2,
 1192.4, 1192.6,  1192.7,  1192.9, 
1192.95,  1192.10, 1194.7,  1194.8, 1194.81,
1194.82, 1194.85,  1198,  and 1199.
   (b) (1) (A) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase general obligation bonds or other
evidence of indebtedness issued by the state, including, but not
limited to,  warrants issued pursuant to Part 4 (commencing with
Section 17000) of Division 4 of Title 2 of the Government Code or
 notes issued pursuant to Part 5 (commencing with Section 17300)
of Division 4 of Title 2 of the Government Code  or warrants
issued pursuant to Part 4 (commencing with Section 17000) of
Division 4 of Title 2 of the Government Code  , in any
amount and to enter into purchase contracts with the state for this
purpose.
   (B) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase Property Assessed Clean Energy (PACE)
bonds, as defined in Section 26104 of the Public Resources Code.
   (2) The bonds or other evidence of indebtedness specified in
paragraph (1), upon delivery to the State Compensation Insurance
Fund, shall, for all purposes, be valid and binding obligations of
the issuer thereof, be validly issued and outstanding in accordance
with their stated terms, and not be deemed to be owned by or on
behalf of the issuer thereof.