BILL NUMBER: SB 1513	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2012

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 amended, 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.  The bill would restrict such
investment or reinvestment to 20% of the moneys that are in excess of
the admitted assets over the liabilities and required reserves for
specified investments, including 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   the admitted assets over the
liabilities and required reserves  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 1191.1, 1191.5,
1192.2, 1192.7,  1192.9,  1192.95, 1194.8, 1194.81, 1194.82,
1194.85, and 1199.  Notwithstanding the foregoing, the State
Compensation Insurance Fund may invest or reinvest an aggregated
maximum of 20 percent of moneys that are in excess of the admitted
assets over the liabilities and required reserves in the investments
allowed pursuant to Sections 1191, 1192.4, 1192.6, 1192.10, 1194.7,
and 1198. 
   (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, 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.