This information is provided free of charge by the Department of Industrial Relations from its web site at www.dir.ca.gov. These regulations are for the convenience of the user and no representation or warranty is made that the information is current or accurate. See full disclaimer at http://www.dir.ca.gov/od_pub/disclaimer.html.


Chapter 8. Office of the Director Subchapter 2.06. Workers' Compensation-Administration Revolving Fund Assessment, Uninsured Employers Benefits Trust Fund Assessment, Subsequent Injuries Benefits Trust Fund Assessments, Fraud Surcharge and Cal-OSHA Targeted Inspection Assessment

Article 3. Collection of Assessments and/or Surcharges

New query

§15605. Collection of the Revolving Fund Assessment and Fraud Surcharge from Self-Insured Employers.


(a) The Director designates the Manager of Self-Insurance Plans to collect the Revolving Fund Assessment, Subsequent Injuries Fund Assessment, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, Uninsured Employers Fund Assessment, and/or Fraud Surcharge from self-insured employers on the Director's behalf.

(b) No later than December 1 of each year, the Manager of Self-Insurance Plans shall bill each self-insured employer for the amount of the individual self-insured employer's Revolving Fund Assessment, Subsequent Injuries Fund Assessment, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, Uninsured Employers Fund Assessment, and/or Fraud Surcharge. The billing shall identify each assessment and/or surcharge separately and shall include the calculations utilized to determine each assessment factor. Each individual assessment and/or surcharge shall be determined by multiplying the self-insured employer assessment factor by the total amount of worker's compensation indemnity paid and reported by each self-insured employer on its Self-Insurer's Annual Report during the base year, as determined by the Office of Self-Insurance Plans. The Self-Insurer's Annual Report shall include all indemnity payments as defined in section 15600(f). For reporting periods beginning July 1, 2013, and later, the Self-Insurer's Annual Report shall include, as separate items, both: (1) the full amount of any vocational rehabilitation maintenance or salary continuation payments made pursuant to Labor Code sections 4800 and 4850, and (2) the amount that would have been paid for those benefits had they instead been paid at the applicable temporary disability rate. The latter amount will be used when calculating self-insured employers' assessments under this section.

(c) The amount of any assessment and/or surcharge shall be paid to the Office of Self-Insurance Plans within 30 days of the billing. Upon the request of any Joint Powers Authority, the Manager may agree to bill the Joint Powers Authority directly for the total amount of each assessment and/or surcharge owed by its public agency members.

(d) In the event the Manager collects funds in excess of the total self-insured employer assessment in the (1) Revolving Fund Assessment; (2) Subsequent Injuries Fund Assessment; (3) Labor Enforcement and Compliance Fund Assessment, (4) Occupational Safety and Health Fund Assessment; (5) Uninsured Employers Fund Assessment; and/or (6) Fraud Surcharge, such excess funds shall be paid over to the Director to be held in a trust account and credited to the next year's respective assessments and/or surcharge on self-insured employers.

(e) Should the Manager determine that any self-insured employer has understated or overstated its total payroll or indemnity paid on the self-insured employer's annual report, the Manager may issue a corrected billing.

(f) If an employer has paid the assessments and/or surcharge as an insured employer, and during the year of such assessments and/or surcharge is granted a certificate of consent to self-insure, the newly self-insured employer is not required to pay an additional assessments and/or surcharge as a self-insured employer for the current assessments and/or surcharge year. Such an employer shall submit to the Manager a copy of the assessments and/or surcharge billing paid as insured employer in lieu of payment as a self-insured employer.

(g) A self-insured employer that does not have a self-insurers' annual report on file with the Office of Self-Insurance Plans which covers the base year of the assessments and/or surcharge, and that did not pay the assessments and/or surcharge for the base year as an insured employer, shall pay the assessments and/or surcharge through the Office of Self-Insurance Plans.

(1) To enable the Manager to determine such self-insured employer's liability for the assessments and/or surcharge, each such self-insured employer shall file a report prescribed by the Manager, setting forth such self-insured employer's total annual payroll for the base year, and the total workers' compensation premium paid for each calendar quarter of the preceding year.

(2) The Manager shall bill the self-insured employer by applying the self-insured employer assessment factors to the last annual premium paid by the self-insured employer until the self-insured employer's experience as a self-insured employer exceeds two complete calendar years for private self-insured employers or two complete fiscal years for public self-insured employers.

(h) A self-insured employer that ceases to be self-insured and ceases to operate as a functioning employer with no legal requirement to secure the payment of compensation, but continues to have open workers' compensation claims arising from the period of self-insurance, shall continue to be liable for assessments and/or surcharge for a period of 3 calendar years following the termination, revocation, or surrender of the employer's certificate of consent to self-insure. The Manager shall bill the former self-insured employer in accordance with this Section.

Note: Authority cited: Sections 54, 55 and 62.5, Labor Code; and Section 1872.83, Insurance Code. Reference: Sections 62.5, 62.6, 4800 and 4850, Labor Code; and Section 1872.83, Insurance Code.

HISTORY

1. New section filed 4-18-90 as an emergency; operative 4-18-90 (Register 90, No. 18). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-16-90.

2. Certificate of Compliance as to 4-18-90 order including amendment to subsections (b), (c) and (e) and adding subsection (f), (g) and (h) transmitted to OAL 8-14-90 and filed 9-13-90 (Register 90, No. 43).

3. Renumbering of former section 15605 to section 15606 and renumbering of former section 15604 to section 15605 and amendment of section heading, section, and Note filed 1-15-93 as an emergency; operative 1-15-93 (Register 93, No. 3). A Certificate of Compliance must be transmitted to OAL 5-17-93 or emergency language will be repealed by operation of law on the following day.

4. Editorial correction restoring inadvertently omitted article heading (Register 93, No. 25).

5. Certificate of Compliance as to 1-15-93 order including amendment of subsection (F) transmitted to OAL 5-10-93 and filed 6-16-93 (Register 93, No. 25).

6. Amendment of article heading, section heading, subsections (a), (e), (f) and (h) and Note filed 9-6-94 as an emergency; operative 9-6-94 (Register 94, No. 36). A Certificate of Compliance must be transmitted to OAL by 1-4-95 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 9-6-94 order including amendment of subsections (a)-(c) transmitted to OAL 12-30-94 and filed 2-15-95 (Register 95, No. 7).

8. Amendment of subsection (f) filed 11-14-95 as an emergency; operative 12-1-95 (Register 95, No. 46). A Certificate of Compliance must be transmitted to OAL by 3-30-96 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 11-14-95 order transmitted to OAL 3-29-96 and filed 5-8-96 (Register 96, No. 19).

10. Change without regulatory effect amending section heading, section and Note filed 12-15-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 51).

11. Amendment of section heading, section and Note filed 1-14-2000 as an emergency; operative 1-14-2000 (Register 2000, No. 2). A Certificate of Compliance must be transmitted to OAL by 5-15-2000 or emergency language will be repealed by operation of law on the following day.

12. Certificate of Compliance as to 1-14-2000 order transmitted to OAL 5-9-2000 and filed 6-15-2000 (Register 2000, No. 24).

13. Amendment of section heading and section filed 12-18-2003; operative 12-18-2003. Submitted to OAL for printing only (Register 2003, No. 51).

14. Amendment of section heading and subsections (a), (b) and (d) filed 11-12-2008; operative 11-12-2008. Submitted to OAL for printing only (Register 2008, No. 46).

15. Amendment of section heading and subsections (a), (b) and (d) filed 11-19-2009; operative 11-19-2009. Submitted to OAL for printing only (Register 2009, No. 47).

16. Amendment of subsection (b) and Note filed 12-2-2013; operative 12-2-2013. Submitted to OAL for printing only pursuant to Labor Code section 62.5(f)(5) (Register 2013, No. 49).


Go BackGo Back to Article 3 Table of Contents