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SB-1451 State Compensation Insurance Fund: executive and management appointments.(2015-2016)

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Enrolled  August 26, 2016
Passed  IN  Senate  August 24, 2016
Passed  IN  Assembly  August 18, 2016
Amended  IN  Assembly  August 04, 2016
Amended  IN  Assembly  June 14, 2016
Amended  IN  Senate  May 03, 2016

CALIFORNIA LEGISLATURE— 2015–2016 REGULAR SESSION

Senate Bill
No. 1451


Introduced by Senator Mendoza
(Coauthors: Senators Gaines and Roth)

February 19, 2016


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


LEGISLATIVE COUNSEL'S DIGEST


SB 1451, 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, chief actuarial officer, a chief claims operations officer, a chief of internal affairs, and a general counsel.
This bill would authorize the board to appoint additional executive and management positions deemed appropriate by the board. The bill would limit the number of additional appointed positions to 8 senior management employees in the areas of underwriting, technology, claims, finance, and actuary, and no more than 2 of those positions may be filled with licensed attorneys.
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.
(b) (1) The board of directors may appoint additional executive and management positions, as deemed appropriate by the board.
(2) The number of additional positions appointed pursuant to paragraph (1) shall not exceed eight senior management employees in the areas of underwriting, technology, claims, finance, and actuary, and no more than two of those positions may be filled with licensed attorneys.
(c) The board of directors shall set the salary for each position described in subdivisions (a) and (b). 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.
(d) 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.
(e) Section 87406 of the Government Code, the Milton Marks Postgovernment Employment Restrictions Act of 1990, shall apply to the fund. Members of the board of directors, the president, the chief financial officer, the chief operating officer, the general counsel, a chief medical officer, a chief actuarial officer, a chief claims operations officer, and a chief of internal affairs, and any other person designated by the fund shall be deemed to be designated employees for the purpose of that act.
(f) 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.