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BULLETIN: FLASH REPORT
WORKERS' COMP ADVISOR
Thursday, September 5, 2002
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A broadcast-type report of breaking news about workers'
compensation provided whenever news of significance develops.
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GOVERNOR KILLS BENEFIT BILL IMPLEMENTATION MONEY
Gov. Gray Davis today cut the $4.6 million that the Legislature had
appropriated to the Division of Workers' Compensation to implement AB 749,
ordering the agency to make do with existing funds.
"Although I agree that AB 749 will increase the workload of the department,
these augmentations have not been fully justified," Davis said in his veto
message. "AB 749 does not take effect until Jan. 1, 2003, and in light of
the state's fiscal condition, I have instructed the department to absorb the
associated workload during the first six months of implementation of these
purposes."
Davis said he will reconsider his line-item veto later if the department
provides a "comprehensive justification based on actual workload" in
the
future.
Altogether, the budget Davis signed into law today reduces funding for the
Division of Workers' Compensation by $7.3 million and will force the
division to cut approximately 90 positions. The governor also cut funding
for the Commission on Safety and Health and Workers' Compensation by $1.26
million.
For full details, please read the Sept. 12 edition of the Workers' Comp
Advisor.
FLASH REPORT: LEGISLATURE
PASSES LAST BILL IN WORKERS' COMP PACKAGE
The state Senate late Thursday passed the last in a package of three bills
designed to bolster California's shaky workers' compensation insurance
market.
The Senate concurred with Assembly amendments and approved Senate Bill 2093
by Jackie Speier, D-Hillsborough, sending the measure to Gov. Gray Davis for
final approval.
Speier's bill seeks to protect the California Insurance Guarantee
Association from further carrier insolvencies by tightening regulations on
security deposits placed by insurers. The measure prohibits surety bonds and
forces insurance companies to update their deposits more regularly to
reflect the amount of business they write in the state.
SB 2093 was conjoined with AB 2007 - sent to the governor on Aug. 15 --
which would extend an increase in the Guarantee Association's 2 percent
assessment on insurers through 2007. The Assembly on Aug. 20 gave final
approval to AB 1985 by Insurance Committee Chairman Thomas Calderon,
D-Montebello, which gives the insurance commissioner more authority to
ensure carriers charge adequate rates to cover potential losses.
For further details and a full legislative roundup, please read the Sept. 12
edition of the Advisor.
FLASH REPORT: LEGISLATURE SENDS
TEMP AGENCY BILL TO GOVERNOR'S DESK
The state Senate late Thursday passed a bill pushed by labor unions that
will make it far more difficult for temporary employment agencies to find
workers' comp insurance for employees sent to construction sites.
The Senate voted 23-11 to approve AB 2816 by Kevin Shelley, D-San Francisco.
The bill seeks to prevent unsafe contractors from bypassing expensive
insurance costs by hiring workers through temp agencies. It requires
insurers to use the experience modifications of a temp agency's client,
instead of the temp agency itself, when setting rates.
The bill now goes to Gov. Gray Davis, who vetoed a broader bill last year
but said he would consider less far-reaching alternatives. For further
details and a full legislative roundup, read the Sept. 12 edition of the
Advisor.
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