SECTIONS 11870-11874 - California Statutes

INSURANCE CODE

SECTION 11870-11874

11870. The state, any agency, department, division, commission,
board, bureau, officer or other authority thereof, and each county,
city and county, city, school district, irrigation district, any
other district established by law, or other public corporation or
quasi public corporation within the state, including any public
utility operated by a private corporation may insure against its
liability for compensation with the State Compensation Insurance
Fund. Where the state or any agency, department, division,
commission, board, bureau, officer or authority thereof is the
insured, the premium for that insurance shall be a proper charge
against any moneys appropriated for the support of or expenditure by
the insured, except that in the case of an insured supported by or
authorized to expend moneys appropriated out of more than one fund,
the insured, with the approval of the Director of Finance, may
determine the proportion of the premium to be paid out of each fund.
In that case the insured, with the approval of the Director of
Finance, may pay the entire premium out of any of those funds and
thereafter the funds used for payment shall be reimbursed in proper
proportion out of the other funds. In case a county, city and county,
city, school district, irrigation district, or other district
established by law, or other public corporation or quasi public
corporation within the state is the insured, the premium therefor
shall be a proper charge against the general fund of the insured.

11871. The State Compensation Insurance Fund may enter into a
master agreement with the Department of Personnel Administration to
render services in the adjustment and disposition of claims for
workers' compensation to any state agencies, including any officer,
department, division, bureau, commission, board or authority, not
insured with the fund.
The master agreement shall provide for rendition of services at a
uniform rate to all agencies, except that the rate for the California
Highway Patrol may be fixed independently of the uniform rate.
The fund may, in accordance with the agreement, adjust and dispose
of claims for workers' compensation made by an officer or employee
of any state agency not insured with the fund.
The fund may make all expenditures, including payment to claimants
for medical care or for adjustment or settlement of claims,
necessary to the adjustment and final disposition of claims. The
agreement shall provide that the state agency whose officer or
employee is a claimant shall reimburse the fund for the expenditures
and for the actual cost of services rendered.
The fund may in its own name, or in the name of the state agency
for which the services are performed, do any and all things necessary
to recover on behalf of the state agency for which it renders
service any and all amounts which an employer might recover from
third persons under Chapter 5 (commencing with Section 3850) of Part
1 of Division 4 of the Labor Code, or which an insurer might recover
pursuant to Section 11662 including the right to commence and
prosecute actions, to file, pursuant to Chapter 5 (commencing with
Section 3850) of Part 1 of Division 4 of the Labor Code, liens for
whatever sums would be recoverable by suit against a third person, to
intervene in other court proceedings, and to compromise claims and
actions before or after commencement of suit or after entry of
judgment when in the opinion of the fund full collection cannot be
enforced.

11872. The fund may annually enter into agreements with state
agencies for service to be rendered to the fund. These state agencies
include, but shall not be limited to: the Department of Finance,
Department of General Services, State Personnel Board, and the Public
Employees' Retirement System. If these agencies and the fund cannot
agree upon the cost of services provided by the agreements, the
California Victim Compensation and Government Claims Board shall be
requested to arrive at an equitable settlement.

11873. (a) Except as provided by subdivision (b), the fund shall
not be subject to the provisions of the Government Code made
applicable to state agencies generally or collectively, unless the
section specifically names the fund as an agency to which the
provision applies.
(b) The fund shall be subject to the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of, Chapter
3.5 (commencing with Section 6250) of Division 7 of Title 1 of,
Chapter 6.5 (commencing with Section 8543) of Division 1 of Title 2
of, Article 9 (commencing with Section 11120) of Chapter 1 of Part 1
of Division 3 of Title 2 of, the Government Code, and Division 5
(commencing with Section 18000) of Title 2 of the Government Code,
with the exception of all of the following provisions of that
division:
(1) Article 1 (commencing with Section 19820) and Article 2
(commencing with Section 19823) of Chapter 2 of Part 2.6 of Division
5.
(2) Sections 19849.2, 19849.3, 19849.4, and 19849.5.
(3) Chapter 4.5 (commencing with Section 19993.1) of Part 2.6 of
Division 5.
(c) Notwithstanding any provision of the Government Code or any
other provision of law, the positions funded by the State
Compensation Insurance Fund are exempt from any hiring freezes and
staff cutbacks otherwise required by law. This subdivision is
declaratory of existing law.

11874. On the effective date of this act the Controller shall draw
his warrant in favor of the State Compensation Insurance Fund for the
total amount of the funds in the custody of the Treasurer belonging
to the State Compensation Insurance Fund and the Treasurer shall pay
such warrant.