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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

§15606. Collection of Advances Against Insured Employers.

(a) Not later than December 1 of each year, the Director shall notify each workers' compensation insurer, of the amounts due from the insurer on behalf of its policyholders for, respectively, the Revolving Fund Assessment, Subsequent Injuries Fund Assessment, Uninsured Employers Fund Assessment, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, and the Fraud Surcharge levied pursuant to the authority of Labor Code Sections 62.5 and 62.6 and these regulations. The notice shall include a bill that sets forth separately the total amounts of the assessments and the surcharge.

(b) The Insurer advances against 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 Fraud Surcharge amounts shall be calculated by multiplying the insurer's California direct written workers' compensation premium as reported in the most recent year's financial statement on file with the Insurance Commissioner, multiplied by the ratio of the expected total current year premium to the total direct written workers' compensation premium of all insurers as reported in the latest year's annual financial statements on file with the Insurance Commissioner by the respective factors determined pursuant to subsection (a) of Section 15603 of these regulations.

(c) Where the amount of the assessments or surcharge owed is less than $5.00 the Director may elect not to bill the insurer therefor.

(d) Each insurer shall pay to the Director one half of the amounts billed under subsection (a) on behalf of its insured employers on or before the following January 1. Each insurer shall pay the balance of the assessments and surcharge to the Director on the following April 1.

(e) Upon agreement of the affected insurers, the Director may elect to consolidate in one billing the assessments and surcharge of all insured employers that are insured by insurers under the same management, direction and control.

(f) In the event the Director collects advances from insurers in excess of the total assessments and surcharge due from insured employers 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, the excess funds shall be held by the Director in a trust account and credited to the subsequent year's total respective assessments and surcharge on insured employers.

(g) Commencing with the assessment payment due April 1, 1993, the insurer shall submit a summary report on a form provided by the Director, which includes the following information: (1) the total amount of assessments and surcharges billed insured employers by the insurer; (2) the respective factors used by the insurer in assessing and surcharging insured employers.

(h) The summary report due April 1, 1993 shall include the information specified in this subsection for all workers' compensation insurance policies with an inception date between August 1, 1990 and December 31, 1991. Commencing April 1, 1994, the summary report shall include the information specified in this subsection for all workers' compensation insurance policies with an inception date in the next preceding calendar years.

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

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
subsection (a), (d) and (e) transmitted to OAL 8-14-90 and filed 9-13-90 
(Register 90, No. 43).

3. Renumbering of former section 15606 to 15607 and renumbering of former
section 15605 to section  15606   and amendment  of  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. Certificate of Compliance as to 1-15-93 order including amendment of
subsection (a) and repealer of subsection (e)(3) transmitted to OAL 5-10-93 and
filed 6-16-93 (Register 93, No. 25).

5. Amendment of subsections (a)-(d) 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.

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

7. Amendment of subsections (a)-(b), repealer of subsection (c), subsection
relettering and amendment of Note 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.

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

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

10. Amendment of 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.

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

12. Amendment of subsections (a), (b) and (f) filed 12-18-2003; operative 12-
18-2003. Submitted to OAL for printing only (Register 2003, No. 51).

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

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

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