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Chapter 8. Office of the Director
Subchapter 2. Administration of Self-Insurance Plans
Article 3.1. Alternative Composite Deposits

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15220.1. Financial Information.


(a) In addition to the existing requirements to provide the current financial statement to the Manager contained in Section 15203.2 of these regulations, the Manager shall require financial information that includes designated general information and key financial items from such financial statement required by Section 15203.2, in a format approved by the Director pursuant to subsection (c)(3), from any private self insured employer that:

  (1) does not have public financial statements (such as closely held or privately held employers) or has no published credit rating; and  


  (2) has a required security deposit equal to or greater than $2,000,000 or fails to meet the financial requirements to be self insured as contained in Section 15203.2.  


(b) Financial information shall include the following designated general information and key financial items:

  (1) General Information Items:  


  (A) Name of Employer  


  (B) Date of Last Annual Financial Statement  


  (2) Key Financial Information:  


  (A) Cash and Marketable Securities  


  (B) Inventory  


  (C) Total Current Assets  


  (D) Total Intangible Assets  


  (E) Total Assets  


  (F) Total Short Term Debt  


  (G) Total Current Liabilities  


  (H) Total Long Term Debt  


  (I) Long Term Pension Obligations  


  (J) Total Liabilities  


  (K) Total Shareholders' Equity  


  (L) Total Preferred Stock  


  (M) Retained Earnings  


  (N) Net Sales  


  (O) Cost of Goods Sold  


  (P) Selling, General & Administrative Expenses  


  (Q) Operating Profit/ (Loss)  


  (R) Earnings before Interest and Taxes  


  (S) Total Interest Expenses  


  (T) Rental Expense  


  (U) Net Income  


  (V) Depreciation & Amortization  


  (W) Extraordinary Items  


(c) A private self insured employer that fails to file the financial information as determined by this section shall be ineligible to participate as a fully participating member in the current alternative composite deposit.

  (1) The Manager shall utilize available financial information to assign a non-investment grade rating to any self insured employer that fails to submit financial information for eligibility as a partial participating member.  


  (2) The Manager shall be authorized to determine that a private self insurer that fails to submit financial information be ineligible for partial participation in the current alternative composite deposit program.  


  (3) After December 31, 2004, the financial information required by subsection (b) shall be submitted to the Manager electronically in a format provided by the Manager.  


(d) Pursuant to Labor Code Section 3701.8(b)(5), the Manager may provide to the Security Fund any financial information needed to set the deposit assessments for self-insured employers participating in the alternative composite deposit program and to secure the composite deposit.


     Note: Authority cited: Sections 3701.8 and 3702.10, Labor Code. Reference: Sections 3701.8 and 3702.10, Labor Code.  


 HISTORY 
   
1. New section filed 5-30-2003 as an emergency; operative 5-30-2003 (Register
2003, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-
29-2003 or emergency language will be repealed by operation of law on the
following day.

2. Certificate of Compliance as to 5-30-2003 order, including amendment of
subsection (a), subsection relettering and new subsection (d) - form A4-7,
transmitted to OAL 9-29-2003 and filed 11-12-2003 (Register 2003, No. 46).

3. Amendment of section heading and subsections (a), (b) and (c)-(c)(2), new
subsection (c)(3) and repealer and new subsection (d) filed 7-6-2004 as an
emergency; operative 7-6-2004 (Register 2004, No. 28). A Certificate of
Compliance must be transmitted to OAL by 11-3-2004 or emergency language will
be repealed by operation of law on the following day.

4. Amendment of section heading and subsections (a), (a)(2) and (c)-(c)(2), new
subsection (c)(3) and repealer and new subsection (d) refiled 11-3-2004 as an
emergency; operative 11-3-2004 (Register 2004, No. 45). A Certificate of
Compliance must be transmitted to OAL by 3-3-2005 or emergency language will be
repealed by operation of law on the following day.

5. Certificate of Compliance as to 11-3-2004 order transmitted to OAL 1-26-2005
and filed 3-8-2005 (Register 2005, No. 10).

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