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

§15607. Collection of Revolving Fund Assessment and Fraud Surcharge from Insured Employers.

(a) Every insurer shall 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 Fraud Surcharge required by this article and Labor Code Sections 62.5 and 62.6, respectively, from each employer insured by it by applying a separate charge to all workers' compensation insurance policies issued by such insurer with an inception date in the year beginning January 1 after the determinations required by Sections 15601 and 15601.5 of these regulations. The amount of the assessment and surcharge shall be determined by multiplying the insured employer's estimated annual assessable premium by the assessment factors determined by the Director pursuant to subsection (a) of section 15603. The assessment factors in effect on the inception date of the policy shall be used to calculate the separate charges relative to that policy, including any additional or return premium.

(b) The respective amounts of 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 shall each be rounded to the nearest whole dollar, and be respectively shown in the policy as "Workers' Compensation Administration Revolving Fund Assessment (amount)," "Subsequent Injuries Benefits Trust Fund Assessment (amount)," "Labor Enforcement and Compliance Fund Assessment (amount)," "Occupational Safety and Health Fund Assessment (amount)," "Uninsured Employers Benefits Trust Fund Assessment (amount)," and "State Fraud Surcharge (amount)".

(c) Commencing with policies effective on and after January 1, 1993, the insured employer's separate charges calculated under subsection (a) above shall be collected in full with the initial payment of assessable premium. If additional premium becomes due under the policy, the final amount of the separate charges shall be adjusted with the final premium bill for the policy. In the case of a retrospective rated policy, the respective assessment and/or surcharge should be applied to the policy premium at issuance, with recalculation at audit, and application of the factors to any retrospective adjustment premium.

(d) Notwithstanding the requirements of this Section, an insurer may elect not to bill an insured employer for the assessments and surcharge for the additional premium due under the policy if the amount of the additional assessments or surcharge does not exceed $10.00. In the event a return premium is due the employer, the insurer shall return a pro rata share of assessments and surcharge previously paid by the employer unless the assessments and surcharge overpayment does not exceed $10.00.

(e) A self-insurer whose certificate has been revoked during the base year or during the calendar year prior to the current assessments and/or surcharge billing by the Manager shall be exempt from payment of the assessments and/or surcharge as a self-insurer.

(f) If an employer has paid the assessments and/or surcharge as a self-insured employer, and during the year of such assessment and/or surcharge obtains a policy of workers' compensation insurance, the newly insured employer is not required to make assessments and/or surcharge payments as an insured employer for that year's assessments and/or surcharge. Such an employer shall submit to the insurer a copy of the assessments and/or surcharge billing paid as a self-insured employer, in lieu of payment as an insured employer.

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.

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

3. Renumbering of former section 15607 to 15608 and renumbering of former
section 15606 to section  15607  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. Certificate of Compliance as to 1-15-93 order including amendment of
subsections (b) and (d) transmitted to OAL 5-10-93 and filed 6-16-93 (Register
93, No. 25).

5. Amendment of subsections (a), (b), (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, subsections (a), (b), and (d), and Note transmitted to OAL 12-30-94
and filed 2-15-95 (Register 95, No. 7).

7. Amendment of subsections (a) and (d), and new subsections (e)-(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.

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. Amendment of subsections (a), (c) and (d) filed 11-10-97; operative 11-10-97
pursuant to Government Code section 11343.4(d) (Register 97, No. 46).

10. Change without regulatory effect amending section heading, section and Note
filed 12-15-99 pursuant to 
section 100, title 1, California Code ofRegulations (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) and (b) 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) and (b) filed 11-19-2009;
operative 11-19-2009. Submitted to OAL for printing only (Register 2009, No.
47).