62.5
. (a) (1) The Workers' Compensation Administration Revolving
Fund is hereby created as a special account in the State Treasury.
Money in the fund may be expended by the department, upon
appropriation by the Legislature, for all of the following purposes,
and may not be used or borrowed for any other purpose:
(A) For the administration of the workers' compensation program
set forth in this division and Division 4 (commencing with Section
3200), other than the activities financed pursuant to paragraph (2)
of subdivision (a) of Section 3702.5.
(B) For the Return-to-Work Program set forth in Section 139.48.
(C) For the enforcement of the insurance coverage program
established and maintained by the Labor Commissioner pursuant to
Section 90.3.
(2) The fund shall consist of surcharges made pursuant to
paragraph (1) of subdivision (f).
(b) (1) The Uninsured Employers Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the payment of nonadministrative expenses of the workers'
compensation program for workers injured while employed by uninsured
employers in accordance with Article 2 (commencing with Section 3710)
of Chapter 4 of Part 1 of Division 4, and shall not be used for any
other purpose. All moneys collected shall be retained in the trust
fund until paid as benefits to workers injured while employed by
uninsured employers. Nonadministrative expenses include audits and
reports of services prepared pursuant to subdivision (b) of Section
3716.1. The surcharge amount for this fund shall be stated
separately.
(2) Notwithstanding any other provision of law, all references to
the Uninsured Employers Fund shall mean the Uninsured Employers
Benefits Trust Fund.
(3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Uninsured Employers
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Uninsured Employers Benefits
Trust Fund upon enactment of the annual Budget Act.
(4) Any moneys from penalties collected pursuant to Section 3722
as a result of the insurance coverage program established under
Section 90.3 shall be deposited in the State Treasury to the credit
of the Workers' Compensation Administration Revolving Fund created
under this section, to cover expenses incurred by the director under
the insurance coverage program. The amount of any penalties in excess
of payment of administrative expenses incurred by the director for
the insurance coverage program established under Section 90.3 shall
be deposited in the State Treasury to the credit of the Uninsured
Employers Benefits Trust Fund for nonadministrative expenses, as
prescribed in paragraph (1), and notwithstanding paragraph (1), shall
only be available upon appropriation by the Legislature.
(c) (1) The Subsequent Injuries Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the nonadministrative expenses of the workers' compensation
program for workers who have suffered serious injury and who are
suffering from previous and serious permanent disabilities or
physical impairments, in accordance with Article 5 (commencing with
Section 4751) of Chapter 2 of Part 2 of Division 4, and Section 4 of
Article XIV of the California Constitution, and shall not be used for
any other purpose. All moneys collected shall be retained in the
trust fund until paid as benefits to workers who have suffered
serious injury and who are suffering from previous and serious
permanent disabilities or physical impairments. Nonadministrative
expenses include audits and reports of services pursuant to
subdivision (c) of Section 4755. The surcharge amount for this fund
shall be stated separately.
(2) Notwithstanding any other law, all references to the
Subsequent Injuries Fund shall mean the Subsequent Injuries Benefits
Trust Fund.
(3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Subsequent Injuries
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Subsequent Injuries Benefits
Trust Fund upon enactment of the annual Budget Act.
(d) (1) The Occupational Safety and Health Fund is hereby created
as a special account in the State Treasury. Moneys in the account may
be expended by the department, upon appropriation by the
Legislature, for support of the Division of Occupational Safety and
Health, the Occupational Safety and Health Standards Board, and the
Occupational Safety and Health Appeals Board, and the activities
these entities perform as set forth in this division, and Division 5
(commencing with Section 6300).
(2) On and after the effective date of the act amending this
section to add this paragraph in the 2013-14 Regular Session of the
Legislature, any moneys in the Cal-OSHA Targeted Inspection and
Consultation Fund and any assets, liabilities, revenues,
expenditures, and encumbrances of that fund, less five million
dollars ($5,000,000), shall be transferred to the Occupational Safety
and Health Fund. On June 30, 2014, the remaining five million
dollars ($5,000,000) in the Cal-OSHA Targeted Inspection and
Consultation Fund, or any remaining balance in that fund, shall be
transferred to, and become part of, the Occupational Safety and
Health Fund.
(e) The Labor Enforcement and Compliance Fund is hereby created as
a special account in the State Treasury. Moneys in the fund may be
expended by the department, upon appropriation by the Legislature,
for the support of the activities that the Division of Labor
Standards Enforcement performs pursuant to this division and Division
2 (commencing with Section 200), Division 3 (commencing with Section
2700), and Division 4 (commencing with Section 3200). The fund shall
consist of surcharges imposed pursuant to paragraph (3) of
subdivision (f).
(f) (1) Separate surcharges shall be levied by the director upon
all employers, as defined in Section 3300, for purposes of deposit in
the Workers' Compensation Administration Revolving Fund, the
Uninsured Employers Benefits Trust Fund, the Subsequent Injuries
Benefits Trust Fund, and the Occupational Safety and Health Fund. The
total amount of the surcharges shall be allocated between
self-insured employers and insured employers in proportion to payroll
respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. The
regulations shall require the surcharges to be paid by self-insurers
to be expressed as a percentage of indemnity paid during the most
recent year for which information is available, and the surcharges to
be paid by insured employers to be expressed as a percentage of
premium. In no event shall the surcharges paid by insured employers
be considered a premium for computation of a gross premium tax or
agents' commission. In no event shall the total amount of the
surcharges paid by insured and self-insured employers exceed the
amounts reasonably necessary to carry out the purposes of this
section.
(2) The surcharge levied by the director for the Occupational
Safety and Health Fund, pursuant to paragraph (1), shall not generate
revenues in excess of fifty-seven million dollars ($57,000,000) on
and after the 2013-14 fiscal year, adjusted for each fiscal year as
appropriate to fund any increases in the appropriation as approved by
the Legislature, and to reconcile any over/under assessments from
previous fiscal years pursuant to Sections 15606 and 15609 of Title 8
of the California Code of Regulations. For the 2013-14 fiscal year
only, the revenue cap established in this paragraph shall be reduced
by an amount equivalent to the balance transferred from the Cal-OSHA
Targeted Inspection and Consultation Fund established in Section
62.7, less any amount of that balance loaned to the State Public
Works Enforcement Fund, to the Occupational Safety and Health Fund
pursuant to subdivision (d).
(3) A separate surcharge shall be levied by the director upon all
employers, as defined in Section 3300, for purposes of deposit in the
Labor Enforcement and Compliance Fund. The total amount of the
surcharges shall be allocated between employers in proportion to
payroll respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. In
no event shall the total amount of the surcharges paid by employers
exceed the amounts reasonably necessary to carry out the purposes of
this section.
(4) The surcharge levied by the director for the Labor Enforcement
and Compliance Fund shall not exceed forty-six million dollars
($46,000,000) in the 2013-14 fiscal year, adjusted as appropriate to
fund any increases in the appropriation as approved by the
Legislature, and to reconcile any over/under assessments from
previous fiscal years pursuant to Sections 15606 and 15609 of Title 8
of the California Code of Regulations.
(5) The regulations adopted pursuant to paragraph (1) to (4),
inclusive, shall be exempt from the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).