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SB-272 State Compensation Insurance Fund: executive and management appointments.(2017-2018)

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Date Published: 06/27/2017 09:00 PM
SB272:v97#DOCUMENT

Amended  IN  Assembly  June 27, 2017
Amended  IN  Senate  May 02, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 272


Introduced by Senator Mendoza

February 08, 2017


An act to amend Section 11785 of the Insurance Code, relating to the State Compensation Insurance Fund.


LEGISLATIVE COUNSEL'S DIGEST


SB 272, as amended, Mendoza. State Compensation Insurance Fund: executive and management 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 for employees and other persons of the compensation fixed by the workers’ compensation laws for employees and their dependents. Existing law requires 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, a chief medical officer, a chief actuarial officer, a chief claims operations officer, a chief of internal affairs, and a general counsel. Existing law also requires the board of directors to set the salary for each of those positions.
This bill, among other things, would authorize the board to appoint additional executive and management positions, including a chief information security officer chief underwriting officer and a pricing actuary, among others. The bill would also require that the board set the salary for each of the executive or management positions in amounts that are reasonably necessary to attract and retain individuals of superior qualifications and to submit its salary-setting criteria, including salary surveys, to the Department of Human Resources. The bill would require the board, by September 1, 2018, and subsequently on a biennial basis, to make a report to the Legislature, as specified, regarding the information submitted to the Department of Human Resources and the salary and total compensation of each position appointed by the board.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


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, a chief medical officer, a chief actuarial officer, a chief claims operations officer, and a chief of internal affairs. The board may appoint a chief underwriting officer, a chief information security officer, a senior vice president of insurance services, an executive vice president of corporate claims, an executive vice president of strategic planning, and a pricing actuary. The board of directors shall set the salary for each position in amounts that are reasonably necessary to attract and retain individuals of superior qualifications. The board shall submit its salary-setting criteria, including salary surveys, to the Department of Human Resources. 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, a person who held a position designated in subdivision (a), 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.
(d) (1) The board shall, by September 1, 2018, and subsequently on a biannual biennial basis, make a report to the Legislature and to the committees of the Senate and Assembly having jurisdiction over insurance that provides any salary-setting criteria and salary surveys submitted to the Department of Human Resources pursuant to subdivision (a), and the salary and total compensation of each position appointed pursuant to subdivision (a), for the previous two fiscal years.
(2) A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.