Bill Text: CA SB1407 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance: State Compensation Insurance Fund:

Spectrum: Slight Partisan Bill (Democrat 8-3)

Status: (Passed) 2010-09-30 - Chaptered by Secretary of State. Chapter 651, Statutes of 2010. [SB1407 Detail]

Download: California-2009-SB1407-Introduced.html

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BILL NUMBER: SB 1407	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Banking, Finance and Insurance (Senators
Calderon (Chair), Cogdill, Correa, Cox, Florez, Kehoe, Liu,
Lowenthal, Padilla, Price, and Runner)

                        FEBRUARY 19, 2010

   An act to amend Section 11797 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1407, as introduced, Committee on Banking, Finance and
Insurance. Insurance: State Compensation Insurance Fund: investments.

   Existing law creates the State Compensation Insurance Fund
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 requires the board
of directors 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.
   This bill would expand the board's choices for the investment of
excess moneys by allowing the board to invest or reinvest in
additional investments in the same manner as provided for private
insurance carriers, including, but not limited to, interest bearing
obligations issued by a nonaffiliate institution, all deposits and
debt obligations of banks or savings and loan associations whose
accounts are insured by an agency or instrumentality of the federal
government, and bonds issued by any county, municipality, or school
district in this state to represent assessments for local
improvements authorized by law.
   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  which   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)  , Article 4 (commencing with Section 1190), and
Article 4.5 (commencing with Section 1210)  of Chapter 2 of Part
2 of Division 1  ,   but excluding Sections 1191,
1191.1, 1191.5, 1192.2, 1192.4, 1192.95, 1194.7, 1194.8, 1198, and
1199  .
   (b) (1) Notwithstanding any other provision of 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, 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.
   (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.