California Labor Code 3710 - 4558

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3710.  (a) The Director of Industrial Relations shall enforce the
provisions of this article. The director may employ necessary
investigators, clerks, and other employees, and make use of the
services of any employee of the department whom he may assign to
assist him in the enforcement of this article. Prosecutions for
criminal violations of this division may be conducted by the
appropriate public official of the county in which the offense is
committed, by the Attorney General, or by any attorney in the civil
service of the Department of Industrial Relations designated by the
director for such purpose.
   (b) The director, in accordance with the provisions of Chapter 4
(commencing at Section 11370) of Part 1 of Division 3 of Title 2 of
the Government Code, may adopt, amend and repeal such rules and
regulations as are reasonably necessary for the purpose of enforcing
and administering this article and as are not inconsistent with law.
   (c) As used in this article, "director" means the Director of
Industrial Relations or the director's designated agents.



3710.1.  Where an employer has failed to secure the payment of
compensation as required by Section 3700, the director shall issue
and serve on such employer a stop order prohibiting the use of
employee labor by such employer until the employer's compliance with
the provisions of Section 3700. Such stop order shall become
effective immediately upon service. Any employee so affected by such
work stoppage shall be paid by the employer for such time lost, not
exceeding 10 days, pending compliance by the employer. Such employer
may protest the stop order by making and filing with the director a
written request for a hearing within 20 days after service of such
stop order. Such hearing shall be held within 5 days from the date of
filing such request. The director shall notify the employer of the
time and place of the hearing by mail. At the conclusion of the
hearing the stop order shall be immediately affirmed or dismissed,
and within 24 hours thereafter the director shall issue and serve on
all parties to the hearing by registered or certified mail a written
notice of findings and findings. A writ of mandate may be taken from
the findings to the appropriate superior court. Such writ must be
taken within 45 days after the mailing of the notice of findings and
findings.



3710.2.  Failure of an employer, officer, or anyone having
direction, management, or control of any place of employment or of
employees to observe a stop order issued and served upon him or her
pursuant to Section 3710.1 is a misdemeanor punishable by
imprisonment in the county jail not exceeding 60 days or by a fine
not exceeding ten thousand dollars ($10,000), or both. Fines shall be
paid into the State Treasury to the credit of the Uninsured
Employers Fund. The director may also obtain injunctive and other
relief from the courts to carry out the purposes of Section 3710.1.
The failure to obtain a policy of workers' compensation insurance or
a certificate of consent to self-insure as required by Section 3700
is a misdemeanor in accordance with Section 3700.5.



3710.3.  Whenever a stop order has been issued pursuant to Section
3710.1 to a motor carrier of property subject to the jurisdiction and
control of the Department of Motor Vehicles or to a household goods
carrier, passenger stage corporation, or charter-party carrier of
passengers subject to the jurisdiction and control of the Public
Utilities Commission, the director shall transmit the stop order to
the Public Utilities Commission or the Department of Motor Vehicles,
whichever has jurisdiction over the affected carrier, within 30 days.



3711.  The director, an investigator for the Department of Insurance
Fraud Bureau or its successor, or a district attorney investigator
assigned to investigate workers' compensation fraud may, at any time,
require an employer to furnish a written statement showing the name
of his or her insurer or the manner in which the employer has
complied with Section 3700. Failure of the employer for a period of
10 days to furnish the written statement is prima facie evidence that
he or she has failed or neglected in respect to the matters so
required. The 10-day period may not be construed to allow an
uninsured employer, so found by the director, any extension of time
from the application of the provisions of Section 3710.1. An insured
employer who fails to respond to an inquiry respecting his or her
status as to his or her workers' compensation security shall be
assessed and required to pay a penalty of five hundred dollars ($500)
to the director for deposit in the State Treasury to the credit of
the Uninsured Employers Fund. In any prosecution under this article,
the burden of proof is upon the defendant to show that he or she has
secured the payment of compensation in one of the two ways set forth
in Section 3700.



3712.  (a) The securing of the payment of compensation in a way
provided in this division is essential to the functioning of the
expressly declared social public policy of this state in the matter
of workers' compensation. The conduct or operation of any business or
undertaking without full compensation security, in continuing
violation of social policy, shall be subject to imposition of
business strictures and monetary penalties by the director,
including, but not limited to, resort to the superior court of any
county in which all or some part of the business is being thus
unlawfully conducted or operated, for carrying out the intent of this
article.
   (b) In a proceeding before the superior court in matters concerned
with this article, no filing fee shall be charged to the plaintiff;
nor may any charge or cost be imposed for any act or service required
of or done by any state or county officer or employee in connection
with the proceeding. If the court or the judge before whom the order
to show cause in the proceeding is made returnable, finds that the
defendant is conducting or operating a business or undertaking
without the full compensation security required, the court or judge
shall forthwith, and without continuance, issue an order restraining
the future or further conduct and operation of the business or
undertaking so long as the violation of social public policy
continues. The action shall be prosecuted by the Attorney General of
California, the district attorney of the county in which suit is
brought, the city attorney of any city in which such a business or
undertaking is being operated or conducted without full compensation
security, or any attorney possessing civil service status who is an
employee of the Department of Industrial Relations who may be
designated by the director for that purpose. No finding made in the
course of any such action is binding on the appeals board in any
subsequent proceeding before it for benefits under this division.



3714.  (a) All cases involving the Uninsured Employers Fund or the
Subsequent Injuries Fund as a party or involving death without
dependents shall only be heard for conference, mandatory settlement
conference pursuant to subdivision (d) of Section 5502, standby
conference, or rating calendar at the district Workers' Compensation
Appeals Board located in San Francisco, Los Angeles, Van Nuys,
Anaheim, Sacramento, or San Diego, except for good cause shown and
with the consent of the director. This subdivision shall not apply to
trials or hearings pursuant to Section 5309 or to expedited hearings
pursuant to subdivision (b) of Section 5502.
   (b) For the cases specified in subdivision (a), the presiding
judge of the Workers' Compensation Appeals Board located in San
Francisco, Los Angeles, Van Nuys, Anaheim, Sacramento, or San Diego
shall have the authority, either by standing order or on a
case-by-case basis, to order a conference, mandatory settlement
conference pursuant to subdivision (d) of Section 5502, standby
conference, or rating calendar in which no testimony will be taken to
be conducted by telephone conference call among the parties and
their attorneys of record who do not reside in the county in which
that appeals board is located. The cost of the scheduling of the
conference call shall be charged against the appropriate fund of the
department.
   (c) Any filings of documents necessary for the proceedings
specified in subdivisions (a) and (b) may be served on the appeals
board and the parties by facsimile machine, but if so served, within
five workings days service shall be made on the appeals board and the
parties as required by regulation.
   (d) This section shall remain in effect for two years commencing
on the date that the administrative director certifies and publishes
that the rearrangement of judicial resources required by this
section, and conference call facilities required for this section are
in place. The certification shall be published in the California
Notice Register, but shall be required to have been posted in the
office of each appeals board at least 30 days prior to that
publication. Notwithstanding this section, with the permission of the
presiding judge and under standards set by the administrative
director, parties may be permitted to conclude existing cases where
they were filed. This section shall cease to be operative at the end
of that two-year period, and shall be repealed on January 1 following
that date.



3715.  (a) Any employee, except an employee as defined in
subdivision (d) of Section 3351, whose employer has failed to secure
the payment of compensation as required by this division, or his or
her dependents in case death has ensued, may, in addition to
proceeding against his or her employer by civil action in the courts
as provided in Section 3706, file his or her application with the
appeals board for compensation and the appeals board shall hear and
determine the application for compensation in like manner as in other
claims and shall make the award to the claimant as he or she would
be entitled to receive if the employer had secured the payment of
compensation as required, and the employer shall pay the award in the
manner and amount fixed thereby or shall furnish to the appeals
board a bond, in any amount and with any sureties as the appeals
board requires, to pay the employee the award in the manner and
amount fixed thereby.
   (b) Notwithstanding this section or any other provision of this
chapter except Section 3708, any person described in subdivision (d)
of Section 3351 who is (1) engaged in household domestic service who
is employed by one employer for over 52 hours per week, (2) engaged
as a part-time gardener in connection with a private dwelling, if the
number of hours devoted to the gardening work for any individual
regularly exceeds 44 hours per month, or (3) engaged in casual
employment where the work contemplated is to be completed in not less
than 10 working days, without regard to the number of persons
employed, and where the total labor cost of the work is not less than
one hundred dollars ($100) (which amount shall not include charges
other than for personal services), shall be entitled, in addition to
proceeding against his or her employer by civil action in the courts
as provided in Section 3706, to file his or her application with the
appeals board for compensation. The appeals board shall hear and
determine the application for compensation in like manner as in other
claims, and shall make the award to the claimant as he or she would
be entitled to receive if the person's employer had secured the
payment of compensation as required, and the employer shall pay the
award in the manner and amount fixed thereby, or shall furnish to the
appeals board a bond, in any amount and with any sureties as the
appeals board requires, to pay the employee the award in the manner
and amount fixed thereby.
   It is the intent of the Legislature that the amendments to this
section by Chapter 17 of the Statutes of 1977, make no change in the
law as it applied to those types of employees covered by this
subdivision prior to the effective date of Chapter 1263 of the 1975
Regular Session.
   (c) In any claim in which it is alleged that the employer has
failed to secure the payment of compensation, the director, only for
purposes of this section and Section 3720, shall determine, on the
basis of the evidence available to him or her, whether the employer
was prima facie illegally uninsured. A finding that the employer was
prima facie illegally uninsured shall be made when the director
determines that there is sufficient evidence to constitute a prima
facie case that the employer employed an employee on the date of the
alleged injury and had failed to secure the payment of compensation,
and that the employee was injured arising out of, and occurring in
the course of, the employment.
   Failure of the employer to furnish within 10 days the written
statement in response to a written demand for a written statement
prescribed in Section 3711, addressed to the employer at its address
as shown on the official address record of the appeals board, shall
constitute in itself sufficient evidence for a prima facie case that
the employer failed to secure the payment of compensation.
   A written denial by the insurer named in the statement furnished
by the employer as prescribed in Section 3711, that the employer was
so insured as claimed, or the nonexistence of a valid certificate of
consent to self-insure for the time of the claimed injury, if the
statement furnished by the employer claims the employer was
self-insured, shall constitute in itself sufficient evidence for a
prima facie case that the employer had failed to secure the payment
of compensation.
   The nonexistence of a record of the employer's insurance with the
Workers' Compensation Insurance Rating Bureau shall constitute in
itself sufficient evidence for a prima facie case that the employer
failed to secure the payment of compensation.
   The unrebutted written declaration under penalty of perjury by the
injured employee, or applicant other than the employee, that the
employee was employed by the employer at the time of the injury, and
that he or she was injured in the course of his or her employment,
shall constitute, in itself, sufficient evidence for a prima facie
case that the employer employed the employee at the time of the
injury, and that the employee was injured arising out of, and
occurring in the course of, the employment.
   (d) When the director determines that an employer was prima facie
illegally uninsured, the director shall mail a written notice of the
determination to the employer at his or her address as shown on the
official address record of the appeals board, and to any other more
recent address the director may possess. The notice shall advise the
employer of its right to appeal the finding, and that a lien may be
placed against the employer's and any parent corporation's property,
or the property of substantial shareholders of a corporate employer
as defined by Section 3717.
   Any employer aggrieved by a finding of the director that it was
prima facie illegally uninsured may appeal the finding by filing a
petition before the appeals board. The petition shall be filed within
20 days after the finding is issued. The appeals board shall hold a
hearing on the petition within 20 days after the petition is filed
with the appeals board. The appeals board shall have exclusive
jurisdiction to determine appeals of the findings by the director,
and no court of this state has jurisdiction to review, annul, or
suspend the findings or the liens created thereunder, except as
provided by Article 2 (commencing with Section 5950) of Chapter 7 of
Part 4 of Division 4.
   (e) Any claim brought against an employer under this section may
be resolved by the director by compromise and release or stipulated
findings and award as long as the appeals board has acquired
jurisdiction over the employer and the employer has been given notice
and an opportunity to object.
   Notice may be given by service on the employer of an appeals board
notice of intention to approve the compromise and release or
stipulated findings and award. The employer shall have 20 days after
service of the notice of intention to file an objection with the
appeals board and show good cause therefor.
   If the employer objects, the appeals board shall determine if
there is good cause for the objection.
   If the appeals board finds good cause for the objection, the
director may proceed with the compromise and release or stipulated
findings and award if doing so best serves the interest of the
Uninsured Employers Fund, but shall have no cause of action against
the employer under Section 3717 unless the appeals board case is
tried to its conclusion and the employer is found liable.
   If the appeals board does not find good cause for the objection,
and the compromise and release or stipulated findings and award is
approved, the Uninsured Employers Fund shall have a cause of action
against the employer pursuant to Section 3717.
   (f) The director may adopt regulations to implement and interpret
the procedures provided for in this section.



3716.  (a) If the employer fails to pay the compensation required by
Section 3715 to the person entitled thereto, or fails to furnish the
bond required by Section 3715 within a period of 10 days after
notification of the award, the award, upon application by the person
entitled thereto, shall be paid by the director from the Uninsured
Employers Benefits Trust Fund. The expenses of the director in
administering these provisions, directly or by contract pursuant to
Section 3716.1, shall be paid from the Workers' Compensation
Administration Revolving Fund. Refunds may be paid from the Uninsured
Employers Benefits Trust Fund for amounts remitted erroneously to
the fund, or the director may authorize offsetting subsequent
remittances to the fund.
   (b) It is the intent of the Legislature that the Uninsured
Employers Benefits Trust Fund is created to ensure that workers who
happen to be employed by illegally uninsured employers are not
deprived of workers' compensation benefits, and is not created as a
source of contribution to insurance carriers, or self-insured, or
legally insured employers. The Uninsured Employers Benefits Trust
Fund has no liability for claims of occupational disease or
cumulative injury unless no employer during the period of the
occupational disease or cumulative injury during which liability is
imposed under Section 5500.5 was insured for workers' compensation,
was permissibly self-insured, or was legally uninsured. No employer
has a right of contribution against the Uninsured Employers Benefits
Trust Fund for the liability of an illegally uninsured employer under
an award of benefits for occupational disease or cumulative injury,
nor may an employee in a claim of occupational disease or cumulative
injury elect to proceed against an illegally uninsured employer.
   (c) The Uninsured Employers Benefits Trust Fund has no liability
to pay for medical, surgical, chiropractic, hospital, or other
treatment, the liability for which treatment is imposed upon the
employer pursuant to Section 4600, and which treatment has been
provided or paid for by the State Department of Health Services
pursuant to the California Medical Assistance Program.
   (d) The Uninsured Employers Benefits Trust Fund shall have no
liability to pay compensation, nor shall it be joined in any appeals
board proceeding, unless the employer alleged to be illegally
uninsured shall first either have made a general appearance or have
been served with the application specified in Section 3715 and with a
special notice of lawsuit issued by the appeals board. The special
notice of lawsuit shall be in a form to be prescribed by the appeals
board, and it shall contain at least the information and warnings
required by the Code of Civil Procedure to be contained in the
summons issued in a civil action. The special notice of lawsuit shall
also contain a notice that if the appeals board makes an award
against the defendant that his or her house or other dwelling and
other property may be taken to satisfy the award in a nonjudicial
sale, with no exemptions from execution. The special notice of
lawsuit shall, in addition, contain a notice that a lien may be
imposed upon the defendant's property without further hearing and
before the issuance of an award. The applicant shall identify a legal
person or entity as the employer named in the special notice of
lawsuit. The reasonable expense of serving the application and
special notice of lawsuit, when incurred by the employee, shall be
awarded as a cost. Proof of service of the special notice of lawsuit
and application shall be filed with the appeals board.
   (1) The application and special notice of lawsuit may be served,
within or without this state, in the manner provided for service of
summons in the Code of Civil Procedure. Thereafter, an employer,
alleged to be illegally uninsured, shall notify the appeals board of
the address at which it may be served with official notices and
papers, and shall notify the appeals board of any changes in the
address. No findings, order, decision, award, or other notice or
paper need be served in this manner on an employer, alleged to be
illegally uninsured, who has been served as provided in this section,
and who has not filed an answer, otherwise made a general
appearance, or furnished the appeals board with its address. The
findings, orders, decisions, awards, or other notice or paper may be
mailed to the employer as the board, by regulation, may provide.
   (2) Notwithstanding paragraph (1), if the employer alleged to be
illegally uninsured has not filed an answer, otherwise made a general
appearance, or furnished the appeals board with its address, the
appeals board shall serve any findings, order, decision, award, or
other notice or paper on the employer by mail at the address the
appeals board has for the employer. The failure of delivery at that
address or the lack of personal service on an employer who has been
served as provided in this section, of these findings, order,
decision, award, or other notice or paper, shall not constitute
grounds for reopening or invalidating any appeals board action
pursuant to Section 5506, or for contesting the validity of any
judgment obtained under Section 3716 or 5806, a lien under Section
3720, or a settlement under subdivision (e) of Section 3715.
   (3) The board, by regulation, may provide for service procedures
in cases where a request for new and further benefits is made after
the issuance of any findings and award and a substantial period of
time has passed since the first service or attempted service.
   (4) The director, on behalf of the Uninsured Employers Benefits
Trust Fund, shall furnish information as to the identities, legal
capacities, and addresses of uninsured employers known to the
director upon request of the board or upon a showing of good cause by
the employee or the employee's representative. Good cause shall
include a declaration by the employee's representative, filed under
penalty of perjury, that the information is necessary to represent
the employee in proceedings under this division.



3716.1.  (a) In any hearing, investigation, or proceeding, the
Attorney General, or attorneys of the Department of Industrial
Relations, shall represent the director and the state. Expenses
incident to representation of the director and the state, before the
appeals board and in civil court, by the Attorney General or
Department of Industrial Relations attorneys, shall be reimbursed
from the Workers' Compensation Administration Revolving Fund.
Expenses incident to representation by the Attorney General or
attorneys of the Department of Industrial Relations incurred in
attempts to recover moneys pursuant to Section 3717 of the Labor Code
shall not exceed the total amounts recovered by the director on
behalf of the Uninsured Employers Benefits Trust Fund pursuant to
this chapter.
   (b) The director shall assign investigative and claims' adjustment
services respecting matters concerning uninsured employers injury
cases. The director or his or her representative may make these
service assignments within the department, or he or she may contract
for these services with the State Compensation Insurance Fund, except
insofar as these matters might conflict with the interests of the
State Compensation Insurance Fund. The administrative costs
associated with these services shall be reimbursed from the Workers'
Compensation Administration Revolving Fund and the nonadministrative
costs from the Uninsured Employers Benefits Trust Fund, except when a
budget impasse requires advances as described in subdivision (c) of
Section 62.5. To the extent permitted by state law, the director may
contract for audits or reports of services under this section.



3716.2.  Notwithstanding the precise elements of an award of
compensation benefits, and notwithstanding the claim and demand for
payment being made therefor to the director, the director, as
administrator of the Uninsured Employers Fund, shall pay the claimant
only such benefits allowed, recognizing proper liens thereon, that
would have accrued against an employer properly insured for workers'
compensation liability. The Uninsured Employers Fund shall not be
liable for any penalties or for the payment of interest on any
awards. However, in civil suits by the director to enforce payment of
an award, including procedures pursuant to Section 3717, the total
amount of the award, including interest, other penalties, and
attorney's fees granted by the award, shall be sought. Recovery by
the director, in a civil suit or by other means, of awarded benefits
in excess of amounts paid to the claimant by the Uninsured Employers
Fund shall be paid over to the injured employee or his
representative, as the case may be.



3716.3.  (a) Notwithstanding any other provision of law to the
contrary, when the director obtains a judgment against an uninsured
employer, the director may, in addition to any other remedies
provided by law, enforce the judgment by nonjudicial foreclosure.
This enforcement shall not be subject to Chapter 4 (commencing with
Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of
Civil Procedure relating to claiming exemptions after levy.
   (b) To enforce the judgment by nonjudicial foreclosure, the
director shall record with the county recorder of any county in which
real property of the parties against whom the judgment is taken is
located, a certified copy of the judgment together with the director'
s notice of intent to foreclose. The notice of intent to foreclose
shall set forth all of the following:
   (1) The name, address, and telephone number of the trustee
authorized by the director to enforce the lien by sale.
   (2) The legal description of the real property to be foreclosed
upon.
   (3) Proof of service by registered or certified mail on the
following:
   (A) The parties against whom the foreclosure is sought at their
last known address as shown on the official records of the appeals
board and as shown on the latest recorded deed, deed of trust, or
mortgage affecting the real property which is the subject of the
foreclosure.
   (B) All of the owners of the real property which is subject to the
foreclosure at their last address as shown on the latest equalized
assessment roll.
   (c) Upon the expiration of 20 days following recording of the
judgment and notice of intent to foreclose, the trustee may proceed
to sell the real property. Any sale by the trustee shall be conducted
in accordance with Article 1 (commencing with Section 2920) of
Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code
applicable to the exercise of powers of sale of property under powers
created by mortgages and deeds of trust.
   (d) The director may authorize any person, including an attorney,
corporation, or other business entity, to act as trustee pursuant to
subdivision (b).
   (e) Except as provided in subdivision (f), this section shall
apply to all judgments which the director has obtained or may obtain
pursuant to Section 3717, 3726, or 5806.
   (f) This section shall not apply to the principal residence of an
employer if the appeals board finds that the employer, on the date of
injury, employed 10 or fewer employees. An employer seeking this
exemption shall provide proof of payment of tax withholding required
pursuant to Division 6 (commencing with Section 13000) of the
Unemployment Insurance Code, to assist in determining the number of
employees on the date of injury.



3716.4.  Whenever a final judgment has been entered against a motor
carrier of property subject to the jurisdiction and control of the
Department of Motor Vehicles or a passenger stage corporation,
charter-party carrier of passengers, or a household goods carrier
subject to the jurisdiction and control of the Public Utilities
Commission as a result of an award having been made pursuant to
Section 3716.2, the director may transmit to the Public Utilities
Commission or the Department of Motor Vehicles, whichever has
jurisdiction over the affected carrier, a copy of the judgment along
with the name and address of the regulated entity and any other
persons, corporations, or entities named in the judgment which are
jointly and severally liable for the debt to the State Treasury with
a complaint requesting that the Public Utilities Commission or the
Department of Motor Vehicles immediately revoke the carrier's Public
Utilities Commission certificate of public convenience and necessity
or Department of Motor Vehicles motor carrier permit.




3716.5.  In the payment of workers' compensation benefits from the
Uninsured Employers Fund, the director shall do the following:
   (a) Designate the job classifications of employees who are paid
compensation from the fund.
   (b) Compile data on the job classifications of employees paid
compensation from the fund and report this data to the Legislature by
November 1, 1990, and annually thereafter.




3717.  (a) A findings and award that is the subject of a demand on
the Uninsured Employers Fund or an approved compromise and release or
stipulated findings and award entered into by the director pursuant
to subdivision (e) of Section 3715, or a decision and order of the
rehabilitation unit of the Division of Workers' Compensation, that
has become final, shall constitute a liquidated claim for damages
against an employer in the amount so ascertained and fixed by the
appeals board, and the appeals board shall certify the same to the
director who may institute a civil action against the employer in the
name of the director, as administrator of the Uninsured Employers
Fund, for the collection of the award, or may obtain a judgment
against the employer pursuant to Section 5806. In the event that the
appeals board finds that a corporation is the employer of an injured
employee, and that the corporation has not secured the payment of
compensation as required by this chapter, the following persons shall
be jointly and severally liable with the corporation to the director
in the action:
   (1) All persons who are a parent, as defined in Section 175 of the
Corporations Code, of the corporation.
   (2) All persons who are substantial shareholders, as defined in
subdivision (b), of the corporation or its parent. In the action it
shall be sufficient for plaintiff to set forth a copy of the findings
and award of the appeals board relative to the claims as certified
by the appeals board to the director and to state that there is due
to plaintiff on account of the finding and award of the appeals board
a specified sum which plaintiff claims with interest. The director
shall be further entitled to costs and reasonable attorney fees, and
to his or her investigation and litigation expenses for the appeals
board proceedings, and a reasonable attorney fee for litigating the
appeals board proceedings. A certified copy of the findings and award
in the claim shall be attached to the complaint. The contents of the
findings and award shall be deemed proved. The answer or demurrer to
the complaint shall be filed within 10 days, the reply or demurrer
to the answer within 20 days, and the demurrer to the reply within 30
days after the return day of the summons or service by publication.
All motions and demurrers shall be submitted to the court within 10
days after they are filed. At the time the civil action filed
pursuant to this section is at issue, it shall be placed at the head
of the trial docket and shall be first in order for trial.
   Nothing in this chapter shall be construed to preclude informal
adjustment by the director of a claim for compensation benefits
before the issuance of findings and award wherever it appears to the
director that the employer is uninsured and that informal adjustment
will facilitate the expeditious delivery of compensation benefits to
the injured employee.
   (b) As used in this section, "substantial shareholder" means a
shareholder who owns at least 15 percent of the total value of all
classes of stock, or, if no stock has been issued, who owns at least
15 percent of the beneficial interests in the corporation.
   (c) For purposes of this section, in determining the ownership of
stock or beneficial interest in the corporation, in the determination
of whether a person is a substantial shareholder of the corporation,
the rules of attribution of ownership of Section 17384 of the
Revenue and Taxation Code shall be applied.
   (d) For purposes of this section, "corporation" shall not include:
   (1) Any corporation which is the issuer of any security which is
exempted by Section 25101 of the Corporations Code from Section 25130
of the Corporations Code.
   (2) Any corporation which is the issuer of any security exempted
by subdivision (c), (d), or (i) of Section 25100 of the Corporations
Code from Sections 25110, 25120, and 25130 of the Corporations Code.
   (3) Any corporation which is the issuer of any security which has
qualified either by coordination, as provided by Section 25111 of the
Corporations Code, or by notification, as provided by Section 25112
of the Corporations Code.



3717.1.  In any claim in which an alleged uninsured employer is a
corporation, the director may cause substantial shareholders and
parents, as defined by Section 3717, to be joined as parties.
Substantial shareholders may be served as provided in this division
for service on adverse parties, or if they cannot be found with
reasonable diligence, by serving the corporation. The corporation,
upon this service, shall notify the shareholder of the service, and
mail the served document to him or her at the shareholder's last
address known to the corporation.


3717.2.  Upon request of the director, the appeals board shall make
findings of whether persons are substantial shareholders or parents,
as defined in Section 3717. The director may in his or her discretion
proceed against substantial shareholders and parents pursuant to
Section 3717 without those findings of the appeals board.




3718.  The cause of action provided in Section 3717 and any cause of
action arising out of Section 3722 may be joined in one action
against an employer. The amount recovered in such action from such
employer shall be paid into the State Treasury to the credit of the
Uninsured Employers Fund.



3719.  Any suit, action, proceeding, or award brought or made
against any employer under Section 3717 may be compromised by the
director, or such suit, action, or proceeding may be prosecuted to
final judgment as in the discretion of the director may best subserve
the interests of the Uninsured Employers Fund.



3720.  (a) When the appeals board or the director determines under
Section 3715 or 3716 that an employer has not secured the payment of
compensation as required by this division or when the director has
determined that the employer is prima facie illegally uninsured, the
director may file for record in the office of the county recorder in
the counties where the employer's property is possibly located, a
certificate of lien showing the date that the employer was determined
to be illegally uninsured or the date that the director has
determined that the employer was prima facie illegally uninsured. The
certificate shall show the name and address of the employer against
whom it was filed, and the fact that the employer has not secured the
payment of compensation as required by this division. Upon the
recordation, the certificate shall constitute a valid lien in favor
of the director, and shall have the same force, effect and priority
as a judgment lien and shall continue for 10 years from the time of
the recording of the certificate unless sooner released or otherwise
discharged. A copy of the certificate shall be served upon the
employer by mail, by the director. A facsimile signature of the
director accompanied by the seal imprint of the department shall be
sufficient for recording purposes of liens and releases or
cancellations thereof considered herein. Certificates of liens may be
filed in any or all counties of the state, depending upon the
information the director obtains concerning the employer's assets.
   (b) For purposes of this section, in the event the employer is a
corporation, those persons whom either the appeals board finds are
the parent or the substantial shareholders of the corporation or its
parent, or whom the director finds pursuant to Section 3720.1 to be
prima facie the parent or the substantial shareholders of the
corporation or its parent, as defined in Section 3717, shall be
deemed to be the employer, and the director may file the certificates
against those persons.
   (c) A person who claims to be aggrieved by the filing of a lien
against the property of an uninsured employer because he or she has
the same or a similar name, may apply to the director to have filed
an amended certificate of lien which shows that the aggrieved
applicant is not the uninsured employer which is the subject of the
lien. If the director finds that the aggrieved applicant is not the
same as the uninsured employer, the director shall file an amended
certificate of lien with the county recorder of the county in which
the aggrieved applicant has property, which shall show, by reasonably
identifying information furnished by the aggrieved applicant, that
the uninsured employer and the aggrieved applicant are not the same.
If the director does not file the amended certificate of lien within
60 days of application therefor, the applicant may appeal the
director's failure to so find by filing a petition with the appeals
board, which shall make a finding as to whether the applicant and the
uninsured employer are the same.
   (d) Liens filed under this section have continued existence
independent of, and may be foreclosed upon independently of, any
right of action arising out of Section 3717 or 5806.



3720.1.  (a) In any claim in which the alleged uninsured employer is
a corporation, for purposes of filing certificates of lien pursuant
to Section 3720, the director may determine, according to the
evidence available to him or her, whether a person is prima facie a
parent or substantial shareholder, as defined in Section 3717. A
finding that a person was prima facie a parent or substantial
shareholder shall be made when the director determines that there is
sufficient evidence to constitute a prima facie case that the person
was a parent or substantial shareholder.
   (b) Any person aggrieved by a finding of the director that he or
she was prima facie a parent or substantial shareholder may request a
hearing on the finding by filing a written request for hearing with
the director. The director shall hold a hearing on the matter within
20 days of the receipt of the request for hearing, and shall mail a
notice of time and place of hearing to the person requesting hearing
at least 10 days prior to the hearing. The hearing officer shall hear
and receive evidence, and within 10 days of the hearing, file his or
her findings on whether there is sufficient evidence to constitute a
prima facie case that the person was a substantial shareholder or
parent. The hearing officer shall serve with his or her findings a
summary of evidence received and relied upon, and the reasons for the
findings. A party may at his or her own expense require that the
hearing proceedings be recorded and transcribed.
   (c) A party aggrieved by the findings of the hearing officer may
within 20 days apply for a writ of mandate to the superior court.
Venue shall lie in the county in which is located the office of the
director which issued the findings after the hearing.




3721.  The director shall provide the employer with a certificate of
cancellation of lien after the employer has paid to the claimant or
to the Uninsured Employers Fund the amount of the compensation or
benefits which has been ordered paid to the claimant, or when the
application has finally been denied after the claimant has exhausted
the remedies provided by law in those cases, or when the employer has
filed a bond in the amount and with such surety as the appeals board
approves conditioned on the payment of all sums ordered paid to the
claimant, or when, after a finding that the employer was prima facie
illegally uninsured, it is finally determined that the finding was in
error. The recorder shall make no charge for filing the certificates
of lien, for filing amended certificates of lien, or for
cancellation when liens are filed in error. Cancellation of lien
certificates provided to the employer may be filed for recordation by
the employer at his or her expense.



3722.  (a) At the time the stop order is issued and served pursuant
to Section 3710.1, the director shall also issue and serve a penalty
assessment order requiring the uninsured employer to pay to the
director, for deposit in the State Treasury to the credit of the
Uninsured Employers Fund, the sum of one thousand five hundred
dollars ($1,500) per employee employed at the time the order is
issued and served, as an additional penalty for being uninsured at
that time or issue and serve a penalty assessment order pursuant to
subdivision (b).
   (b) At any time that the director determines that an employer has
been uninsured for a period in excess of one week during the calendar
year preceding the determination, the director shall issue and serve
a penalty assessment order requiring the uninsured employer to pay
to the director, for deposit in the State Treasury to the credit of
the Uninsured Employers Fund, the greater of (1) twice the amount the
employer would have paid in workers' compensation premiums during
the period the employer was uninsured, determined according to
subdivision (c), or (2) the sum of one thousand five hundred dollars
($1,500) per employee employed during the period the employer was
uninsured. A penalty assessment issued and served by the director
pursuant to this subdivision shall be in lieu of, and not in addition
to, any other penalty issued and served by the director pursuant to
subdivision (a).
   (c) If the employer is currently insured, or becomes insured
during the period during which the penalty under subdivision (b) is
being determined, the amount an employer would have paid in workers'
compensation premiums shall be calculated by prorating the current
premium for the number of weeks the employer was uninsured within the
three-year period immediately prior to the date the penalty
assessment is issued. If the employer is uninsured at the time the
penalty under subdivision (b) is being determined, the amount an
employer would have paid in workers' compensation premiums shall be
the product of the employer's payroll for all periods of time the
employer was uninsured within the three-year period immediately prior
to the date the penalty assessment is issued multiplied by a rate
determined in accordance with regulations that may be adopted by the
director or, if none has been adopted, the manual rate or rates of
the State Compensation Insurance Fund for the employer's governing
classification pursuant to the standard classification system
approved by the Insurance Commissioner. The classification shall be
determined by the director or the director's designee at the time the
penalty assessment is issued on the basis of any information
available to the director regarding the employer's operations. Unless
the amount of the employer's payroll for all periods during which
the employer was uninsured within the three-year period is otherwise
proven by a preponderance of evidence, the employer's payroll for
each week the employer was uninsured shall be presumed to be the
state average weekly wage multiplied by the number of persons
employed by the employer at the time the penalty assessment is
issued. For purposes of this subdivision, "state average weekly wage"
means the average weekly wage paid by employers to employees covered
by unemployment insurance as reported by the United States
Department of Labor for California for the 12-month period ending
March 31 of the calendar year preceding the year in which the penalty
assessment order is issued.
   (d) If upon the filing of a claim for compensation under this
division the Workers' Compensation Appeals Board finds that any
employer has not secured the payment of compensation as required by
this division and finds the claim either noncompensable or
compensable, the appeals board shall mail a copy of their findings to
the uninsured employer and the director, together with a direction
to the uninsured employer to file a verified statement pursuant to
subdivision (e).
   After the time for any appeal has expired and the adjudication of
the claim has become final, the uninsured employer shall be assessed
and pay as a penalty either of the following:
   (1) In noncompensable cases, two thousand dollars ($2,000) per
each employee employed at the time of the claimed injury.
   (2) In compensable cases, ten thousand dollars ($10,000) per each
employee employed on the date of the injury.
   (e) In order to establish the number of employees the uninsured
employer had on the date of the claimed injury in noncompensable
cases and on the date of injury in compensable cases, the employer
shall submit to the director within 10 days after service of
findings, awards, and orders of the Workers' Compensation Appeals
Board a verified statement of the number of employees in his or her
employ on the date of injury. If the employer fails to submit to the
director this verified statement or if the director disputes the
accuracy of the number of employees reported by the employer, the
director shall use any information regarding the number of employees
as the director may have or otherwise obtains.
   (f) Except for penalties assessed under subdivision (b), the
maximum amount of penalties which may be assessed pursuant to this
section is one hundred thousand dollars ($100,000). Payment shall be
transmitted to the director for deposit in the State Treasury to the
credit of the Uninsured Employers Fund.
   (g) (1) The Workers' Compensation Appeals Board may provide for a
summary hearing on the sole issue of compensation coverage to effect
the provisions of this section.
   (2) In the event a claim is settled by the director pursuant to
subdivision (e) of Section 3715 by means of a compromise and release
or stipulations with request for award, the appeals board may also
provide for a summary hearing on the issue of compensability.



3725.  If an employer desires to contest a penalty assessment order,
the employer shall file with the director a written request for a
hearing within 15 days after service of the order. Upon receipt of
the request, the director shall set the matter for a hearing within
30 days thereafter and shall notify the employer of the time and
place of the hearing by mail at least 10 days prior to the date of
the hearing. The decision of the director shall consist of a notice
of findings and findings which shall be served on all parties to the
hearing by registered or certified mail within 15 days after the
hearing. Any amount found due by the director as a result of a
hearing shall become due and payable 45 days after notice of the
findings and written findings have been mailed by registered or
certified mail to the party assessed. A writ of mandate may be taken
from these findings to the appropriate superior court upon the
execution by the party assessed of a bond to the state in double the
amount found due and ordered paid by the director, as long as the
party agrees to pay any judgment and costs rendered against the party
for the assessment. The writ shall be taken within 45 days after
mailing the notice of findings and findings.



3726.  (a) When no petition objecting to a penalty assessment order
is filed, a certified copy of the order may be filed by the director
in the office of the clerk of the superior court in any county in
which the employer has property or in which the employer has or had a
place of business. The clerk, immediately upon such filing, shall
enter judgment for the state against the employer in the amount shown
on the penalty assessment order.
   (b) When findings are made affirming or modifying a penalty
assessment order after hearing, a certified copy of such order and a
certified copy of such findings may be filed by the director in the
office of the clerk of the superior court in any county in which the
employer has property or in which the employer has or had a place of
business. The clerk, immediately upon such filing, shall enter
judgment for the state against the employer in the amount shown on
the penalty assessment order or in the amount shown in the findings
if the order has been modified.
   (c) A judgment entered pursuant to the provisions of this section
may be filed by the clerk in a looseleaf book entitled "Special
Judgments for State Uninsured Employers Fund." Such judgment shall
bear the same rate of interest and shall have the same effect as
other judgments and be given the same preference allowed by law on
other judgments rendered for claims for taxes. The clerk shall make
no charge for the service provided by this section to be performed by
him.


3727.  If the director determines pursuant to Section 3722 that an
employer has failed to secure the payment of compensation as required
by this division, the director may file with the county recorder of
any counties in which such employer's property may be located his
certificate of the amount of penalty due from such employer and such
amount shall be a lien in favor of the director from the date of such
filing against the real property and personal property of the
employer within the county in which such certificate is filed. The
recorder shall accept and file such certificate and record the same
as a mortgage on real estate and shall file the same as a security
interest and he shall index the same as mortgage on real estate and
as a security interest. Certificates of liens may be filed in any and
all counties of the state, depending upon the information the
director obtains concerning the employer's assets. The recorder shall
make no charge for the services provided by this section to be
performed by him. Upon payment of the penalty assessment, the
director shall issue a certificate of cancellation of penalty
assessment, which may be recorded by the employer at his expense.



3727.1.  The director may withdraw a stop order or a penalty
assessment order where investigation reveals the employer had secured
the payment of compensation as required by Section 3700 on the date
and at the time of service of such order. The director also may
withdraw a penalty assessment order where investigation discloses
that the employer was insured on the date and at the time of an
injury or claimed injury, or where an insured employer responded in
writing to a request to furnish the status of his workers'
compensation coverage within the time prescribed.




3728.  (a) The director may draw from the State Treasury out of the
Uninsured Employers Benefits Trust Fund for the purposes of Sections
3716 and 3716.1, without at the time presenting vouchers and itemized
statements, a sum not to exceed in the aggregate the level provided
for pursuant to Section 16400 of the Government Code, to be used as a
cash revolving fund. The revolving fund shall be deposited in any
banks and under any conditions as the Department of General Services
determines. The Controller shall draw his or her warrants in favor of
the Director of Industrial Relations for the amounts so withdrawn
and the Treasurer shall pay these warrants.
   (b) Expenditures made from the revolving fund in payment of claims
for compensation due from the Uninsured Employers Benefits Trust
Fund and from the Workers' Compensation Administration Revolving Fund
for administrative and adjusting services rendered are exempted from
the operation of Section 925.6 of the Government Code. Reimbursement
of the revolving fund from the Uninsured Employers Benefits Trust
Fund or the Workers' Compensation Administration Revolving Fund for
expenditures shall be made upon presentation to the Controller of an
abstract or statement of the expenditures. The abstract or statement
shall be in any form as the Controller requires.



3730.  When the last day for filing any instrument or other document
pursuant to this chapter falls upon a Saturday, Sunday or other
holiday, such act may be performed upon the next business day with
the same effect as if it had been performed upon the day appointed.




3731.  Any stop order or penalty assessment order may be personally
served upon the employer either by (1) manual delivery of the order
to the employer personally or by (2) leaving signed copies of the
order during usual office hours with the person who is apparently in
charge of the office and by thereafter mailing copies of the order by
first class mail, postage prepaid to the employer at the place where
signed copies of the order were left.



3732.  (a) If compensation is paid or becomes payable from the
Uninsured Employers Fund, whether as a result of a findings and
award, award based upon stipulations, compromise and release executed
on behalf of the director, or payments voluntarily furnished by the
director pursuant to Section 4903.3, the director may recover damages
from any person or entity, other than the employer, whose tortious
act or omission proximately caused the injury or death of the
employee. The damages shall include any compensation, including
additional compensation by way of interest or penalty, paid or
payable by the director, plus the expense incurred by the director in
investigating and litigating the workers' compensation claim and a
reasonable attorney fee for litigating the workers' compensation
claim. The director may compromise, or settle and release any claim,
and may waive any claim, including the lien allowed by this section,
in whole or in part, for the convenience of the director.
   (b) Except as otherwise provided in this section, Chapter 5
(commencing with Section 3850) of Part 1 of Division 4 shall be
applicable to these actions, the director being treated as an
employer within the meaning of Chapter 5 to the extent not
inconsistent with this section.
   (c) Actions brought under this section shall be commenced within
one year after the later of either the time the director pays or the
time the director becomes obligated to pay any compensation from the
Uninsured Employers Fund.
   (d) In the trial of these actions, any negligence attributable to
the employer shall not be imputed to the director or to the Uninsured
Employers Fund, and the damages recoverable by the director shall
not be reduced by any percentage of fault or negligence attributable
to the employer or to the employee.
   (e) In determining the credit to the Uninsured Employers Fund
provided by Section 3861, the appeals board shall not take into
consideration any negligence of the employer, but shall allow a
credit for the entire amount of the employee's recovery either by
settlement or after judgment, as has not theretofore been applied to
the payment of expenses or attorney's fees.
   (f) When an action or claim is brought by an employee, his or her
guardian, conservator, personal representative, estate, survivors, or
heirs against a third party who may be liable for causing the injury
or death of the employee, any settlement or judgment obtained is
subject to the director's claim for damages recoverable by the
director pursuant to subdivision (a), and the director shall have a
lien against any settlement in the amount of the damages.
   (g) No judgment or settlement in any action or claim by an
employee, his or her guardian, conservator, personal representative,
survivors, or heirs to recover damages for injuries, where the
director has an interest, shall be satisfied without first giving the
director notice and a reasonable opportunity to perfect and satisfy
his or her lien. The director shall be mailed a copy of the complaint
in the third-party action as soon as reasonable after it is filed
with the court.
   (h) When the director has perfected a lien upon a judgment or
settlement in favor of an employee, his or her guardian, conservator,
personal representative, survivors or heirs against any third party,
the director shall be entitled to a writ of execution as a lien
claimant to enforce payment of the lien against the third party with
interest and other accruing costs as in the case of other executions.
In the event the amount of the judgment or settlement so recovered
has been paid to the employee, his or her guardian, conservator,
personal representative, survivors, or heirs, the director shall be
entitled to a writ of execution against the employee, his or her
guardian, conservator, personal representative, survivors, or heirs
to the extent of the director's lien, with interest and other
accruing costs as in the cost of other executions.
   (i) Except as otherwise provided in this section, notwithstanding
any other provision of law, the entire amount of any settlement of
the action or claim of the employee, his or her guardian,
conservator, personal representative, survivors, or heirs, with or
without suit, is subject to the director's lien claim for the damages
recoverable by the director pursuant to subdivision (a).
   (j) Where the action or claim is brought by the employee, his or
her guardian, conservator, personal representative, estate,
survivors, or heirs, and the director has not joined in the action,
and the employee, his or her guardian, conservator, personal
representative, estate, survivors, or heirs incur a personal
liability to pay attorney's fees and costs of litigation, the
director's claim for damages shall be limited to the amount of the
director's claim for damages less that portion of the costs of
litigation expenses determined by multiplying the total cost of
litigation expenses by the ratio of the full amount of the director's
claim for damages to the full amount of the judgment, award, or
settlement, and less 25 percent of the balance after subtracting the
director's share of litigation expenses, which represents the
director's reasonable share of attorney's fees incurred.
   (k) In the trial of the director's action for damages, and in the
allowance of his or her lien in an action by the employee, guardian,
executor, personal representative, survivors, or heirs, the
compensation paid from the Uninsured Employers Fund pursuant to an
award as provided in Section 3716 is conclusively presumed to be
reasonable in amount and to be proximately caused by the event or
events which caused the employee's injury or death.
   (l) In the action for damages the director shall be entitled to
recover, if he or she prevails, the entire amount of the damages
recoverable by the director pursuant to subdivision (a), regardless
of whether the damages recoverable by the employee, guardian,
conservator, personal representative, survivors, or heirs are of
lesser amount.

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3740.  It is the intent of the Legislature in enacting this article
and Article 1 (commencing with Section 3700) to provide for the
continuation of workers' compensation benefits delayed due to the
failure of a private self-insured employer to meet its compensation
obligations when the employers' security deposit is either inadequate
or not immediately accessible for the payment of benefits. With
respect to the continued liability of a surety for claims that arose
under a bond after termination of that bond and to a surety's
liability for the cost of administration of claims, it is the intent
of the Legislature to clarify existing law. The Legislature finds and
declares that the establishment of the Self-Insurers' Security Fund
is a necessary component of a complete system of workers'
compensation, required by Section 4 of Article XIV of the California
Constitution, to have adequate provisions for the comfort, health and
safety, and general welfare of any and all workers and their
dependents to the extent of relieving the consequences of any
industrial injury or death, and full provision for securing the
payment of compensation.



3741.  As used in this article:
   (a) "Director" means the Director of Industrial Relations.
   (b) "Private self-insurer" means a private employer which has
secured the payment of compensation pursuant to subdivision (b) of
Section 3700.
   (c) "Insolvent self-insurer" means a private self-insurer who has
failed to pay compensation and whose security deposit has been called
by the director pursuant to Section 3701.5.
   (d) "Fund" means the Self-Insurers' Security Fund established
pursuant to Section 3742.
   (e) "Trustees" means the Board of Trustees of the Self-Insurers'
Security Fund.
   (f) "Member" means a private self-insurer which participates in
the Self-Insurers' Security Fund.



3742.  (a) The Self-Insurers' Security Fund shall be established as
a Nonprofit Mutual Benefit Corporation pursuant to Part 3 (commencing
with Section 7110) of Division 2 of Title 1 of the Corporations Code
and this article. If any provision of the Nonprofit Mutual Benefit
Corporation Law conflicts with any provision of this article, the
provisions of this article shall apply. Each private self-insurer
shall participate as a member in the fund, unless its liabilities
have been turned over to the fund pursuant to Section 3701.5, at
which time its membership in the fund is relinquished.
   (b) The fund shall be governed by a board of trustees with no more
than eight members, as established by the bylaws of the
Self-Insurers' Security Fund. The director shall hold ex officio
status, with full powers equal to those of a trustee, except that the
director shall not have a vote. The director, or a delegate
authorized in writing to act as the director's representative on the
board of trustees, shall carry out exclusively the responsibilities
set forth in Division 1 (commencing with Section 50) through Division
4 (commencing with Section 3200) and shall not have the obligations
of a trustee under the Nonprofit Mutual Benefit Corporation Law. The
fund shall adopt bylaws to segregate the director from all matters
that may involve fund litigation against the department or fund
participation in legal proceedings before the director. Although not
voting, the director or a delegate authorized in writing to represent
the director, shall be counted toward a quorum of trustees. The
remaining trustees shall be representatives of private self-insurers.
The self-insurer trustees shall be elected by the members of the
fund, each member having one vote. Trustees shall be elected to
four-year terms, and shall serve until their successors are elected
and assume office pursuant to the bylaws of the fund.
   (c) The fund shall establish bylaws as are necessary to effectuate
the purposes of this article and to carry out the responsibilities
of the fund, including, but not limited to, any obligations imposed
by the director pursuant to Section 3701.8. The fund may carry out
its responsibilities directly or by contract, and may purchase
services and insurance and borrow funds as it deems necessary for the
protection of the members and their employees. The fund may receive
confidential information concerning the financial condition of
self-insured employers whose liabilities to pay compensation may
devolve upon it and shall adopt bylaws to prevent dissemination of
that information.
   (d) The director may also require fund members to subscribe to
financial instruments or guarantees to be posted with the director in
order to satisfy the security requirements set by the director
pursuant to Section 3701.8.



3743.  (a) Upon order of the director pursuant to Section 3701.5,
the fund shall assume the workers' compensation obligations of an
insolvent self-insurer.
   (b) Notwithstanding subdivision (a), the fund shall not be liable
for the payment of any penalties assessed for any act or omission on
the part of any person other than the fund, including, but not
limited to, the penalties provided in Section 132a, 3706, 4553, 4554,
4556, 4557, 4558, 4601.5, 5814, or 5814.1.
   (c) The fund shall be a party in interest in all proceedings
involving compensation claims against an insolvent self-insurer whose
compensation obligations have been paid or assumed by the fund. The
fund shall have the same rights and defenses as the insolvent
self-insurer, including, but not limited to, all of the following:
   (1) To appear, defend, and appeal claims.
   (2) To receive notice of, investigate, adjust, compromise, settle,
and pay claims.
   (3) To investigate, handle, and deny claims.



3744.  (a) (1) The fund shall have the right and obligation to
obtain reimbursement from an insolvent self-insurer up to the amount
of the self-insurer's workers' compensation obligations paid and
assumed by the fund, including reasonable administrative and legal
costs. This right includes, but is not limited to, a right to claim
for wages and other necessities of life advanced to claimants as
subrogee of the claimants in any action to collect against the
self-insured as debtor. For purposes of this section, "insolvent
self-insurer" includes the entity to which the certificate of consent
to self-insure was issued, any guarantor of the entity's liabilities
under the certificate, any member of a self-insurance group to which
the certificate was issued, and any employer who obtained employees
from a self-insured employer under subdivision (d) of Section 3602.
   (2) The Legislature finds and declares that the amendments made to
this subdivision by the act adding this paragraph are declaratory of
existing law.
   (b) The fund shall have the right and obligation to obtain from
the security deposit of an insolvent self-insurer the amount of the
self-insurer's compensation obligations, including reasonable
administrative and legal costs, paid or assumed by the fund.
Reimbursement of administrative costs, including legal costs, shall
be subject to approval by a majority vote of the fund's trustees. The
fund shall be a party in interest in any action to obtain the
security deposit for the payment of compensation obligations of an
insolvent self-insurer.
   (c) The fund shall have the right to bring an action against any
person to recover compensation paid and liability assumed by the
fund, including, but not limited to, any excess insurance carrier of
the self-insured employer, and any person whose negligence or breach
of any obligation contributed to any underestimation of the
self-insured employer's total accrued liability as reported to the
director.
   (d) The fund may be a party in interest in any action brought by
any other person seeking damages resulting from the failure of an
insolvent self-insurer to pay workers' compensation required pursuant
to this division.
   (e) At the election of the Self-Insurers' Security Fund, venue
shall be in the Superior Court for the State of California, County of
Sacramento, for any action under this section. All actions in which
the Self-Insurers' Security Fund and two or more members or former
members of one self-insurance group are parties shall be consolidated
if requested by the Self-Insurers' Security Fund.



3745.  (a) The fund shall maintain cash, readily marketable
securities, or other assets, or a line of credit, approved by the
director, sufficient to immediately continue the payment of the
compensation obligations of an insolvent self-insurer pending
assessment of the members. The director may establish the minimum
amount to be maintained by, or immediately available to, the fund for
this purpose.
   (b) The fund may assess each of its members a pro rata share of
the funding necessary to carry out the purposes of this article.
   (c) The trustees shall certify to the director the collection and
receipt of all moneys from assessments, noting any delinquencies. The
trustees shall take any action deemed appropriate to collect any
delinquent assessments.



3746.  The fund shall annually contract for an independent certified
audit of the financial activities of the fund. An annual report on
the financial status of the fund as of June 30 shall be submitted to
the director and to each member, or at the election of the fund,
posted on the fund's Internet Web site.



3747.  This article shall be known and may be referred to as the
"Young-La Follette Self-Insurers' Security Act."

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3750.  Nothing in this division shall affect:
   (a) The organization of any mutual or other insurer.
   (b) Any existing contract for insurance.
   (c) The right of the employer to insure in mutual or other
insurers, in whole or in part, against liability for the compensation
provided by this division.
   (d) The right to provide by mutual or other insurance, or by
arrangement with his employees, or otherwise, for the payment to such
employees, their families, dependents or representatives, of sick,
accident, or death benefits, in addition to the compensation provided
for by this division.
   (e) The right of the employer to waive the waiting period provided
for herein by insurance coverage.



3751.  (a) No employer shall exact or receive from any employee any
contribution, or make or take any deduction from the earnings of any
employee, either directly or indirectly, to cover the whole or any
part of the cost of compensation under this division. Violation of
this subdivision is a misdemeanor.
   (b) If an employee has filed a claim form pursuant to Section
5401, a provider of medical services shall not, with actual knowledge
that a claim is pending, collect money directly from the employee
for services to cure or relieve the effects of the injury for which
the claim form was filed, unless the medical provider has received
written notice that liability for the injury has been rejected by the
employer and the medical provider has provided a copy of this notice
to the employee. Any medical provider who violates this subdivision
shall be liable for three times the amount unlawfully collected, plus
reasonable attorney's fees and costs.


3752.  Liability for compensation shall not be reduced or affected
by any insurance, contribution or other benefit whatsoever due to or
received by the person entitled to such compensation, except as
otherwise provided by this division.


3753.  The person entitled to compensation may, irrespective of any
insurance or other contract, except as otherwise provided in this
division, recover such compensation directly from the employer. In
addition thereto, he may enforce in his own name, in the manner
provided by this division the liability of any insurer either by
making the insurer a party to the original application or by filing a
separate application for any portion of such compensation.



3754.  Except as provided in paragraph (12) of subdivision (f) of
Section 1202.4 of the Penal Code, payment, in whole or in part, of
compensation by either the employer or the insurer shall, to the
extent thereof, be a bar to recovery against each of them of the
amount so paid.



3755.  If the employer is insured against liability for
compensation, and if after the suffering of any injury the insurer
causes to be served upon any compensation claimant a notice that it
has assumed and agreed to pay any compensation to the claimant for
which the employer is liable, such employer shall be relieved from
liability for compensation to such claimant upon the filing of a copy
of such notice with the appeals board. The insurer shall, without
further notice, be substituted in place of the employer in any
proceeding theretofore or thereafter instituted by such claimant to
recover such compensation, and the employer shall be dismissed
therefrom.
   Such proceedings shall not abate on account of such substitution
but shall be continued against such insurer.



3756.  If at the time of the suffering of a compensable injury, the
employer is insured against liability for the full amount of
compensation payable, he may cause to be served upon the compensation
claimant and upon the insurer a notice that the insurer has agreed
to pay any compensation for which the employer is liable. The
employer may also file a copy of such notice with the appeals board.



3757.  If it thereafter appears to the satisfaction of the appeals
board that the insurer has assumed the liability for compensation,
the employer shall thereupon be relieved from liability for
compensation to the claimant. The insurer shall, after notice, be
substituted in place of the employer in any proceeding instituted by
the claimant to recover compensation, and the employer shall be
dismissed therefrom.



3758.  A proceeding to obtain compensation shall not abate on
account of substitution of the insurer in place of the employer and
on account of the dismissal of the employer, but shall be continued
against such insurer.


3759.  The appeals board may enter its order relieving the employer
from liability where it appears from the pleadings, stipulations, or
proof that an insurer joined as party to the proceeding is liable for
the full compensation for which the employer in such proceeding is
liable.


3760.  Every employer who is insured against any liability imposed
by this division shall file with the insurer a complete report of
every injury to each employee as specified in Section 6409.1. If not
so filed, the insurer may petition the appeals board for an order, or
the appeals board may of its own motion issue an order, directing
the employer to submit a report of the injury within five days after
service of the order. Failure of the employer to comply with the
appeals board's order may be punished by the appeals board as a
contempt.


3761.  (a) An insurer securing an employer's liability under this
division shall notify the employer, within 15 days, of each claim for
indemnity filed against the employer directly with the insurer if
the employer has not timely provided to the insurer a report of
occupational injury or occupational illness pursuant to Section
6409.1. The insurer shall furnish an employer who has not filed this
report with an opportunity to provide to the insurer, prior to the
expiration of the 90-day period specified in Section 5402, all
relevant information available to the employer concerning the claim.
   (b) An employer shall promptly notify its insurer in writing at
any time during the pendency of a claim when the employer has actual
knowledge of any facts which would tend to disprove any aspect of the
employee's claim. When an employer notifies its insurer in writing
that, in the employer's opinion, no compensation is payable to an
employee, at the employer's written request, to the appeals board,
the appeals board may approve a compromise and release agreement, or
stipulation, that provides compensation to the employee only where
there is proof of service upon the employer by the insurer, to the
employer's last known address, not less than 15 days prior to the
appeals board action, of notice of the time and place of the hearing
at which the compromise and release agreement or stipulation is to be
approved. The insurer shall file proof of this service with the
appeals board.
   Failure by the insurer to provide the required notice shall not
prohibit the board from approving a compromise and release agreement,
or stipulation; however, the board shall order the insurer to pay
reasonable expenses as provided in Section 5813.
   (c) In establishing a reserve pursuant to a claim that affects
premiums against an employer, an insurer shall provide the employer,
upon request, a written report of the reserve amount established. The
written report shall include, at a minimum, the following:
   (1) Estimated medical-legal costs.
   (2) Estimated vocational rehabilitation costs, if any.
   (3) Itemization of all other estimated expenses to be paid from
the reserve.
   (d) When an employer properly provides notification to its insurer
pursuant to subdivision (b), and the appeals board thereafter
determines that no compensation is payable under this division, the
insurer shall reimburse the employer for any premium paid solely due
to the inclusion of the successfully challenged payments in the
calculation of the employer's experience modification. The employee
shall not be required to refund the challenged payment.




3762.  (a) Except as provided in subdivisions (b) and (c), the
insurer shall discuss all elements of the claim file that affect the
employer's premium with the employer, and shall supply copies of the
documents that affect the premium at the employer's expense during
reasonable business hours.
   (b) The right provided by this section shall not extend to any
document that the insurer is prohibited from disclosing to the
employer under the attorney-client privilege, any other applicable
privilege, or statutory prohibition upon disclosure, or under Section
1877.4 of the Insurance Code.
   (c) An insurer, third-party administrator retained by a
self-insured employer pursuant to Section 3702.1 to administer the
employer's workers' compensation claims, and those employees and
agents specified by a self-insured employer to administer the
employer's workers' compensation claims, are prohibited from
disclosing or causing to be disclosed to an employer, any medical
information, as defined in subdivision (b) of Section 56.05 of the
Civil Code, about an employee who has filed a workers' compensation
claim, except as follows:
   (1) Medical information limited to the diagnosis of the mental or
physical condition for which workers' compensation is claimed and the
treatment provided for this condition.
   (2) Medical information regarding the injury for which workers'
compensation is claimed that is necessary for the employer to have in
order for the employer to modify the employee's work duties.

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3800.  (a) Every county or city which requires the issuance of a
permit as a condition precedent to the construction, alteration,
improvement, demolition, or repair of any building or structure shall
require that each applicant for the permit sign a declaration under
penalty of perjury verifying workers' compensation coverage or
exemption from coverage, as required by Section 19825 of the Health
and Safety Code.
   (b) At the time of permit issuance, contractors shall show their
valid workers' compensation insurance certificate, or the city or
county may verify the workers' compensation coverage by electronic
means.

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3820.  (a) In enacting this section, the Legislature declares that
there exists a compelling interest in eliminating fraud in the
workers' compensation system. The Legislature recognizes that the
conduct prohibited by this section is, for the most part, already
subject to criminal penalties pursuant to other provisions of law.
However, the Legislature finds and declares that the addition of
civil money penalties will provide necessary enforcement flexibility.
The Legislature, in exercising its plenary authority related to
workers' compensation, declares that these sections are both
necessary and carefully tailored to combat the fraud and abuse that
is rampant in the workers' compensation system.
   (b) It is unlawful to do any of the following:
   (1) Willfully misrepresent any fact in order to obtain workers'
compensation insurance at less than the proper rate.
   (2) Present or cause to be presented any knowingly false or
fraudulent written or oral material statement in support of, or in
opposition to, any claim for compensation for the purpose of
obtaining or denying any compensation, as defined in Section 3207.
   (3) Knowingly solicit, receive, offer, pay, or accept any rebate,
refund, commission, preference, patronage, dividend, discount, or
other consideration, whether in the form of money or otherwise, as
compensation or inducement for soliciting or referring clients or
patients to obtain services or benefits pursuant to Division 4
(commencing with Section 3200) unless the payment or receipt of
consideration for services other than the referral of clients or
patients is lawful pursuant to Section 650 of the Business and
Professions Code or expressly permitted by the Rules of Professional
Conduct of the State Bar.
   (4) Knowingly operate or participate in a service that, for
profit, refers or recommends clients or patients to obtain medical or
medical-legal services or benefits pursuant to Division 4
(commencing with Section 3200).
   (5) Knowingly assist, abet, solicit, or conspire with any person
who engages in an unlawful act under this section.
   (c) For the purposes of this section, "statement" includes, but is
not limited to, any notice, proof of injury, bill for services,
payment for services, hospital or doctor records, X-ray, test
results, medical-legal expenses as defined in Section 4620, or other
evidence of loss, expense, or payment.
   (d) Any person who violates any provision of this section shall be
subject, in addition to any other penalties that may be prescribed
by law, to a civil penalty of not less than four thousand dollars
($4,000) nor more than ten thousand dollars ($10,000), plus an
assessment of not more than three times the amount of the medical
treatment expenses paid pursuant to Article 2 (commencing with
Section 4600) and medical-legal expenses paid pursuant to Article 2.5
(commencing with Section 4620) for each claim for compensation
submitted in violation of this section.
   (e) Any person who violates subdivision (b) and who has a prior
felony conviction of an offense set forth in Section 1871.1 or 1871.4
of the Insurance Code, or in Section 549 of the Penal Code, shall be
subject, in addition to the penalties set forth in subdivision (d),
to a civil penalty of four thousand dollars ($4,000) for each item or
service with respect to which a violation of subdivision (b)
occurred.
   (f) The penalties provided for in subdivisions (d) and (e) shall
be assessed and recovered in a civil action brought in the name of
the people of the State of California by any district attorney.
   (g) In assessing the amount of the civil penalty the court shall
consider any one or more of the relevant circumstances presented by
any of the parties to the case, including, but not limited to, the
following: the nature and seriousness of the misconduct, the number
of violations, the persistence of the misconduct, the length of time
over which the misconduct occurred, the willfulness of the defendant'
s misconduct, and the defendant's assets, liabilities, and net worth.
   (h) All penalties collected pursuant to this section shall be paid
to the Workers' Compensation Fraud Account in the Insurance Fund
pursuant to Section 1872.83 of the Insurance Code. All costs incurred
by district attorneys in carrying out this article shall be funded
from the Workers' Compensation Fraud Account. It is the intent of the
Legislature that the program instituted by this article be supported
entirely from funds produced by moneys deposited into the Workers'
Compensation Fraud Account from the imposition of civil money
penalties for workers' compensation fraud collected pursuant to this
section. All moneys claimed by district attorneys as costs of
carrying out this article shall be paid pursuant to a determination
by the Fraud Assessment Commission established by Section 1872.83 of
the Insurance Code and on appropriation by the Legislature.



3822.  The administrative director shall, on an annual basis,
provide to every employer, claims adjuster, third party
administrator, physician, and attorney who participates in the
workers' compensation system, a notice that warns the recipient
against committing workers' compensation fraud. The notice shall
specify the penalties that are applied for committing workers'
compensation fraud. The Fraud Assessment Commission, established by
Section 1872.83 of the Insurance Code, shall provide the
administrative director with all funds necessary to carry out this
section.



3823.  (a) The administrative director shall, in coordination with
the Bureau of Fraudulent Claims of the Department of Insurance, the
Medi-Cal Fraud Task Force, and the Bureau of Medi-Cal Fraud and Elder
Abuse of the Department of Justice, or their successor entities,
adopt protocols, to the extent that these protocols are applicable to
achieve the purpose of subdivision (b), similar to those adopted by
the Department of Insurance concerning medical billing and provider
fraud.
   (b) Any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit,
attorney, or other person that believes that a fraudulent claim has
been made by any person or entity providing medical care, as
described in Section 4600, shall report the apparent fraudulent claim
in the manner prescribed by subdivision (a).
   (c) No insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person that reports any apparent fraudulent claim under
this section shall be subject to any civil liability in a cause of
action of any kind when the insurer, self-insured employer,
third-party administrator, workers' compensation administrative law
judge, audit unit, attorney, or other person acts in good faith,
without malice, and reasonably believes that the action taken was
warranted by the known facts, obtained by reasonable efforts. Nothing
in this section is intended to, nor does in any manner, abrogate or
lessen the existing common law or statutory privileges and immunities
of any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person.

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3850.  As used in this chapter:
   (a) "Employee" includes the person injured and any other person to
whom a claim accrues by reason of the injury or death of the former.
   (b) "Employer" includes insurer as defined in this division.
   (c) "Employer" also includes the Self-Insurers' Security Fund,
where the employer's compensation obligations have been assumed
pursuant to Section 3743.


3851.  The death of the employee or of any other person, does not
abate any right of action established by this chapter.



3852.  The claim of an employee, including, but not limited to, any
peace officer or firefighter, for compensation does not affect his or
her claim or right of action for all damages proximately resulting
from the injury or death against any person other than the employer.
Any employer who pays, or becomes obligated to pay compensation, or
who pays, or becomes obligated to pay salary in lieu of compensation,
or who pays or becomes obligated to pay an amount to the Department
of Industrial Relations pursuant to Section 4706.5, may likewise make
a claim or bring an action against the third person. In the latter
event the employer may recover in the same suit, in addition to the
total amount of compensation, damages for which he or she was liable
including all salary, wage, pension, or other emolument paid to the
employee or to his or her dependents. The respective rights against
the third person of the heirs of an employee claiming under Section
377.60 of the Code of Civil Procedure, and an employer claiming
pursuant to this section, shall be determined by the court.



3853.  If either the employee or the employer brings an action
against such third person, he shall forthwith give to the other a
copy of the complaint by personal service or certified mail. Proof of
such service shall be filed in such action. If the action is brought
by either the employer or employee, the other may, at any time
before trial on the facts, join as party plaintiff or shall
consolidate his action, if brought independently.



3854.  If the action is prosecuted by the employer alone, evidence
of any amount which the employer has paid or become obligated to pay
by reason of the injury or death of the employee is admissible, and
such expenditures or liability shall be considered as proximately
resulting from such injury or death in addition to any other items of
damage proximately resulting therefrom.



3855.  If the employee joins in or prosecutes such action, either
the evidence of the amount of disability indemnity or death benefit
paid or to be paid by the employer or the evidence of loss of earning
capacity by the employee shall be admissible, but not both. Proof of
all other items of damage to either the employer or employee
proximately resulting from such injury or death is admissible and is
part of the damages.



3856.  In the event of suit against such third party:
   (a) If the action is prosecuted by the employer alone, the court
shall first order paid from any judgment for damages recovered the
reasonable litigation expenses incurred in preparation and
prosecution of such action, together with a reasonable attorney's fee
which shall be based solely upon the services rendered by the
employer's attorney in effecting recovery both for the benefit of the
employer and the employee. After the payment of such expenses and
attorney's fees, the court shall apply out of the amount of such
judgment an amount sufficient to reimburse the employer for the
amount of his expenditure for compensation together with any amounts
to which he may be entitled as special damages under Section 3852 and
shall order any excess paid to the injured employee or other person
entitled thereto.
   (b) If the action is prosecuted by the employee alone, the court
shall first order paid from any judgment for damages recovered the
reasonable litigation expenses incurred in preparation and
prosecution of such action, together with a reasonable attorney's fee
which shall be based solely upon the services rendered by the
employee's attorney in effecting recovery both for the benefit of the
employee and the employer. After the payment of such expenses and
attorney's fee the court shall, on application of the employer, allow
as a first lien against the amount of such judgment for damages, the
amount of the employer's expenditure for compensation together with
any amounts to which he may be entitled as special damages under
Section 3852.
   (c) If the action is prosecuted both by the employee and the
employer, in a single action or in consolidated actions, and they are
represented by the same agreed attorney or by separate attorneys,
the court shall first order paid from any judgment for damages
recovered, the reasonable litigation expenses incurred in preparation
and prosecution of such action or actions, together with reasonable
attorneys' fees based solely on the services rendered for the benefit
of both parties where they are represented by the same attorney, and
where they are represented by separate attorneys, based solely upon
the service rendered in each instance by the attorney in effecting
recovery for the benefit of the party represented. After the payment
of such expenses and attorneys' fees the court shall apply out of the
amount of such judgment for damages an amount sufficient to
reimburse the employer for the amount of his expenditures for
compensation together with any other amounts to which he may be
entitled as special damages under Section 3852.
   (d) The amount of reasonable litigation expenses and the amount of
attorneys' fees under subdivisions (a), (b), and (c) of this section
shall be fixed by the court. Where the employer and employee are
represented by separate attorneys they may propose to the court, for
its consideration and determination, the amount and division of such
expenses and fees.


3857.  The court shall, upon further application at any time before
the judgment is satisfied, allow as a further lien the amount of any
expenditures of the employer for compensation subsequent to the
original order.


3858.  After payment of litigation expenses and attorneys' fees
fixed by the court pursuant to Section 3856 and payment of the
employer's lien, the employer shall be relieved from the obligation
to pay further compensation to or on behalf of the employee under
this division up to the entire amount of the balance of the judgment,
if satisfied, without any deduction. No satisfaction of such
judgment in whole or in part, shall be valid without giving the
employer notice and a reasonable opportunity to perfect and satisfy
his lien.


3859.  (a) No release or settlement of any claim under this chapter
as to either the employee or the employer is valid without the
written consent of both. Proof of service filed with the court is
sufficient in any action or proceeding where such approval is
required by law.
   (b) Notwithstanding anything to the contrary contained in this
chapter, an employee may settle and release any claim he may have
against a third party without the consent of the employer. Such
settlement or release shall be subject to the employer's right to
proceed to recover compensation he has paid in accordance with
Section 3852.


3860.  (a) No release or settlement under this chapter, with or
without suit, is valid or binding as to any party thereto without
notice to both the employer and the employee, with opportunity to the
employer to recover the amount of compensation he has paid or become
obligated to pay and any special damages to which he may be entitled
under Section 3852, and opportunity to the employee to recover all
damages he has suffered and with provision for determination of
expenses and attorney's fees as herein provided.
   (b) Except as provided in Section 3859, the entire amount of such
settlement, with or without suit, is subject to the employer's full
claim for reimbursement for compensation he has paid or become
obligated to pay and any special damages to which he may be entitled
under Section 3852, together with expenses and attorney fees, if any,
subject to the limitations in this section set forth.
   (c) Where settlement is effected, with or without suit, solely
through the efforts of the employee's attorney, then prior to the
reimbursement of the employer, as provided in subdivision (b) hereof,
there shall be deducted from the amount of the settlement the
reasonable expenses incurred in effecting such settlement, including
costs of suit, if any, together with a reasonable attorney's fee to
be paid to the employee's attorney, for his services in securing and
effecting settlement for the benefit of both the employer and the
employee.
   (d) Where settlement is effected, with or without suit, solely
through the efforts of the employer's attorney, then, prior to the
reimbursement of the employer as provided in subdivision (b) hereof,
there shall be deducted from the amount of the settlement the
reasonable expenses incurred in effecting such settlement, including
costs of suit, if any, together with a reasonable attorney's fee to
be paid to the employer's attorney, for his services in securing and
effecting settlement for the benefit of both the employer and the
employee.
   (e) Where both the employer and the employee are represented by
the same agreed attorney or by separate attorneys in effecting a
settlement, with or without suit, prior to reimbursement of the
employer, as provided in subdivision (b) hereof, there shall be
deducted from the amount of the settlement the reasonable expenses
incurred by both the employer and the employee or on behalf of
either, including costs of suit, if any, together with reasonable
attorneys' fees to be paid to the respective attorneys for the
employer and the employee, based upon the respective services
rendered in securing and effecting settlement for the benefit of the
party represented. In the event both parties are represented by the
same attorney, by agreement, the attorney's fee shall be based on the
services rendered for the benefit of both.
   (f) The amount of expenses and attorneys' fees referred to in this
section shall, on settlement of suit, or on any settlement requiring
court approval, be set by the court. In all other cases these
amounts shall be set by the appeals board. Where the employer and the
employee are represented by separate attorneys they may propose to
the court or the appeals board, for consideration and determination,
the amount and division of such expenses and fees.




3861.  The appeals board is empowered to and shall allow, as a
credit to the employer to be applied against his liability for
compensation, such amount of any recovery by the employee for his
injury, either by settlement or after judgment, as has not
theretofore been applied to the payment of expenses or attorneys'
fees, pursuant to the provisions of Sections 3856, 3858, and 3860 of
this code, or has not been applied to reimburse the employer.



3862.  Any employer entitled to and who has been allowed and has
perfected a lien upon the judgment or award in favor of an employee
against any third party for damages occasioned to the same employer
by payment of compensation, expenses of medical treatment, and any
other charges under this act, may enforce payment of the lien against
the third party, or, in case the damages recovered by the employee
have been paid to the employee, against the employee to the extent of
the lien, in the manner provided for enforcement of money judgments
generally.


3864.  If an action as provided in this chapter prosecuted by the
employee, the employer, or both jointly against the third person
results in judgment against such third person, or settlement by such
third person, the employer shall have no liability to reimburse or
hold such third person harmless on such judgment or settlement in
absence of a written agreement so to do executed prior to the injury.




3865.  Any judgment or settlement of an action as provided for in
this chapter is, upon notice to the court, subject to the same lien
claims of the Employment Development Department as are provided for
in Chapter 1 (commencing with Section 4900) of Part 3, and shall be
allowed by the court as it determines necessary to avoid a
duplication of payment as compensation to the employee for lost
earnings.

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4050.  Whenever the right to compensation under this division exists
in favor of an employee, he shall, upon the written request of his
employer, submit at reasonable intervals to examination by a
practicing physician, provided and paid for by the employer, and
shall likewise submit to examination at reasonable intervals by any
physician selected by the administrative director or appeals board or
referee thereof.



4051.  The request or order for the medical examination shall fix a
time and place therefor, due consideration being given to the
convenience of the employee and his physical condition and ability to
attend at the time and place fixed.


4052.  The employee may employ at his own expense a physician, to be
present at any examination required by his employer.



4053.  So long as the employee, after written request of the
employer, fails or refuses to submit to such examination or in any
way obstructs it, his right to begin or maintain any proceeding for
the collection of compensation shall be suspended.




4054.  If the employee fails or refuses to submit to examination
after direction by the appeals board, or a referee thereof, or in any
way obstructs the examination, his right to the disability payments
which accrue during the period of such failure, refusal or
obstruction, shall be barred.



4055.  Any physician who makes or is present at any such examination
may be required to report or testify as to the results thereof.



4055.2.  Any party who subpoenas records in any proceeding under
this division shall concurrent with service of the subpoena upon the
person who has possession of the records, send a copy of the subpoena
to all parties of record in the proceeding.



4056.  No compensation is payable in case of the death or disability
of an employee when his death is caused, or when and so far as his
disability is caused, continued, or aggravated, by an unreasonable
refusal to submit to medical treatment, or to any surgical treatment,
if the risk of the treatment is, in the opinion of the appeals
board, based upon expert medical or surgical advice, inconsiderable
in view of the seriousness of the injury.

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4060.  (a) This section shall apply to disputes over the
compensability of any injury. This section shall not apply where
injury to any part or parts of the body is accepted as compensable by
the employer.
   (b) Neither the employer nor the employee shall be liable for any
comprehensive medical-legal evaluation performed by other than the
treating physician, except as provided in this section. However,
reports of treating physicians shall be admissible.
   (c) If a medical evaluation is required to determine
compensability at any time after the filing of the claim form, and
the employee is represented by an attorney, a medical evaluation to
determine compensability shall be obtained only by the procedure
provided in Section 4062.2.
   (d) If a medical evaluation is required to determine
compensability at any time after the claim form is filed, and the
employee is not represented by an attorney, the employer shall
provide the employee with notice either that the employer requests a
comprehensive medical evaluation to determine compensability or that
the employer has not accepted liability and the employee may request
a comprehensive medical evaluation to determine compensability.
Either party may request a comprehensive medical evaluation to
determine compensability. The evaluation shall be obtained only by
the procedure provided in Section 4062.1.
   (e) The notice required by subdivision (d) shall be accompanied by
the form prescribed by the administrative director for requesting
the assignment of a panel of qualified medical evaluators.



4061.  This section shall not apply to the employee's dispute of a
utilization review decision under Section 4610, nor to the employee's
dispute of the medical provider network treating physician's
diagnosis or treatment recommendations under Sections 4616.3 and
4616.4.
   (a) Together with the last payment of temporary disability
indemnity, the employer shall, in a form prescribed by the
administrative director pursuant to Section 138.4, provide the
employee one of the following:
   (1) Notice either that no permanent disability indemnity will be
paid because the employer alleges the employee has no permanent
impairment or limitations resulting from the injury or notice of the
amount of permanent disability indemnity determined by the employer
to be payable. If the employer determines permanent disability
indemnity is payable, the employer shall advise the employee of the
amount determined payable and the basis on which the determination
was made, whether there is need for future medical care, and whether
an indemnity payment will be deferred pursuant to paragraph (2) of
subdivision (b) of Section 4650.
   (2) Notice that permanent disability indemnity may be or is
payable, but that the amount cannot be determined because the
employee's medical condition is not yet permanent and stationary. The
notice shall advise the employee that his or her medical condition
will be monitored until it is permanent and stationary, at which time
the necessary evaluation will be performed to determine the
existence and extent of permanent impairment and limitations for the
purpose of rating permanent disability and to determine whether there
will be the need for future medical care, or at which time the
employer will advise the employee of the amount of permanent
disability indemnity the employer has determined to be payable.
   (b) If either the employee or employer objects to a medical
determination made by the treating physician concerning the existence
or extent of permanent impairment and limitations or the need for
future medical care, and the employee is represented by an attorney,
a medical evaluation to determine permanent disability shall be
obtained as provided in Section 4062.2.
   (c) If either the employee or employer objects to a medical
determination made by the treating physician concerning the existence
or extent of permanent impairment and limitations or the need for
future medical care, and if the employee is not represented by an
attorney, the employer shall immediately provide the employee with a
form prescribed by the medical director with which to request
assignment of a panel of three qualified medical evaluators. Either
party may request a comprehensive medical evaluation to determine
permanent disability or the need for future medical care, and the
evaluation shall be obtained only by the procedure provided in
Section 4062.1.
   (d) (1) Within 30 days of receipt of a report from a qualified
medical evaluator who has evaluated an unrepresented employee, the
unrepresented employee or the employer may each request one
supplemental report seeking correction of factual errors in the
report. Any of these requests shall be made in writing. A request
made by the employer shall be provided to the employee, and a request
made by the employee shall be provided to the employer, insurance
carrier, or claims administrator at the time the request is sent to
the evaluator. A request for correction that is made by the employer
shall also inform the employee of the availability of information and
assistance officers to assist him or her in responding to the
request, if necessary.
   (2) The permanent disability rating procedure set forth in
subdivision (e) shall not be invoked by the unrepresented employee or
the employer when a request for correction pursuant to paragraph (1)
is pending.
   (e) The qualified medical evaluator who has evaluated an
unrepresented employee shall serve the comprehensive medical
evaluation and the summary form on the employee, employer, and the
administrative director. The unrepresented employee or the employer
may submit the treating physician's evaluation for the calculation of
a permanent disability rating. Within 20 days of receipt of the
comprehensive medical evaluation, the administrative director shall
calculate the permanent disability rating according to Section 4660
and serve the rating on the employee and employer.
   (f) Any comprehensive medical evaluation concerning an
unrepresented employee which indicates that part or all of an
employee's permanent impairment or limitations may be subject to
apportionment pursuant to Sections 4663 and 4664 shall first be
submitted by the administrative director to a workers' compensation
judge who may refer the report back to the qualified medical
evaluator for correction or clarification if the judge determines the
proposed apportionment is inconsistent with the law.
   (g) Within 30 days of receipt of the rating, if the employee is
unrepresented, the employee or employer may request that the
administrative director reconsider the recommended rating or obtain
additional information from the treating physician or medical
evaluator to address issues not addressed or not completely addressed
in the original comprehensive medical evaluation or not prepared in
accord with the procedures promulgated under paragraph (2) or (3) of
subdivision (j) of Section 139.2. This request shall be in writing,
shall specify the reasons the rating should be reconsidered, and
shall be served on the other party. If the administrative director
finds the comprehensive medical evaluation is not complete or not in
compliance with the required procedures, the administrative director
shall return the report to the treating physician or qualified
medical evaluator for appropriate action as the administrative
director instructs. Upon receipt of the treating physician's or
qualified medical evaluator's final comprehensive medical evaluation
and summary form, the administrative director shall recalculate the
permanent disability rating according to Section 4660 and serve the
rating, the comprehensive medical evaluation, and the summary form on
the employee and employer.
   (h) (1) If a comprehensive medical evaluation from the treating
physician or an agreed medical evaluator or a qualified medical
evaluator selected from a three-member panel resolves any issue so as
to require an employer to provide compensation, the employer shall
commence the payment of compensation, except as provided pursuant to
paragraph (2) of subdivision (b) of Section 4650, or promptly
commence proceedings before the appeals board to resolve the dispute.
   (2) If the employee and employer agree to a stipulated findings
and award as provided under Section 5702 or to compromise and release
the claim under Chapter 2 (commencing with Section 5000) of Part 3,
or if the employee wishes to commute the award under Chapter 3
(commencing with Section 5100) of Part 3, the appeals board shall
first determine whether the agreement or commutation is in the best
interests of the employee and whether the proper procedures have been
followed in determining the permanent disability rating. The
administrative director shall promulgate a form to notify the
employee, at the time of service of any rating under this section, of
the options specified in this subdivision, the potential advantages
and disadvantages of each option, and the procedure for disputing the
rating.
   (i) No issue relating to the existence or extent of permanent
impairment and limitations resulting from the injury may be the
subject of a declaration of readiness to proceed unless there has
first been a medical evaluation by a treating physician and by either
an agreed or qualified medical evaluator. With the exception of an
evaluation or evaluations prepared by the treating physician or
physicians, no evaluation of permanent impairment and limitations
resulting from the injury shall be obtained, except in accordance
with Section 4062.1 or 4062.2. Evaluations obtained in violation of
this prohibition shall not be admissible in any proceeding before the
appeals board.



4061.5.  The treating physician primarily responsible for managing
the care of the injured worker or the physician designated by that
treating physician shall, in accordance with rules promulgated by the
administrative director, render opinions on all medical issues
necessary to determine eligibility for compensation. In the event
that there is more than one treating physician, a single report shall
be prepared by the physician primarily responsible for managing the
injured worker's care that incorporates the findings of the various
treating physicians.



4062.  (a) If either the employee or employer objects to a medical
determination made by the treating physician concerning any medical
issues not covered by Section 4060 or 4061 and not subject to Section
4610, the objecting party shall notify the other party in writing of
the objection within 20 days of receipt of the report if the
employee is represented by an attorney or within 30 days of receipt
of the report if the employee is not represented by an attorney.
These time limits may be extended for good cause or by mutual
agreement. If the employee is represented by an attorney, a medical
evaluation to determine the disputed medical issue shall be obtained
as provided in Section 4062.2, and no other medical evaluation shall
be obtained. If the employee is not represented by an attorney, the
employer shall immediately provide the employee with a form
prescribed by the medical director with which to request assignment
of a panel of three qualified medical evaluators, the evaluation
shall be obtained as provided in Section 4062.1, and no other medical
evaluation shall be obtained.
   (b) If the employee objects to a decision made pursuant to Section
4610 to modify, delay, or deny a request for authorization of a
medical treatment recommendation made by a treating physician, the
objection shall be resolved only in accordance with the independent
medical review process established in Section 4610.5.
   (c) If the employee objects to the diagnosis or recommendation for
medical treatment by a physician within the employer's medical
provider network established pursuant to Section 4616, the objection
shall be resolved only in accordance with the independent medical
review process established in Sections 4616.3 and 4616.4.



4062.1.  (a) If an employee is not represented by an attorney, the
employer shall not seek agreement with the employee on an agreed
medical evaluator, nor shall an agreed medical evaluator prepare the
formal medical evaluation on any issues in dispute.
   (b) If either party requests a medical evaluation pursuant to
Section 4060, 4061, or 4062, either party may submit the form
prescribed by the administrative director requesting the medical
director to assign a panel of three qualified medical evaluators in
accordance with Section 139.2. However, the employer may not submit
the form unless the employee has not submitted the form within 10
days after the employer has furnished the form to the employee and
requested the employee to submit the form. The party submitting the
request form shall designate the specialty of the physicians that
will be assigned to the panel.
   (c) Within 10 days of the issuance of a panel of qualified medical
evaluators, the employee shall select a physician from the panel to
prepare a medical evaluation, the employee shall schedule the
appointment, and the employee shall inform the employer of the
selection and the appointment. If the employee does not inform the
employer of the selection within 10 days of the assignment of a panel
of qualified medical evaluators, then the employer may select the
physician from the panel to prepare a medical evaluation. If the
employee informs the employer of the selection within 10 days of the
assignment of the panel but has not made the appointment, or if the
employer selects the physician pursuant to this subdivision, then the
employer shall arrange the appointment. Upon receipt of written
notice of the appointment arrangements from the employee, or upon
giving the employee notice of an appointment arranged by the
employer, the employer shall furnish payment of estimated travel
expense.
   (d) The evaluator shall give the employee, at the appointment, a
brief opportunity to ask questions concerning the evaluation process
and the evaluator's background. The unrepresented employee shall then
participate in the evaluation as requested by the evaluator unless
the employee has good cause to discontinue the evaluation. For
purposes of this subdivision, "good cause" shall include evidence
that the evaluator is biased against the employee because of his or
her race, sex, national origin, religion, or sexual preference or
evidence that the evaluator has requested the employee to submit to
an unnecessary medical examination or procedure. If the unrepresented
employee declines to proceed with the evaluation, he or she shall
have the right to a new panel of three qualified medical evaluators
from which to select one to prepare a comprehensive medical
evaluation. If the appeals board subsequently determines that the
employee did not have good cause to not proceed with the evaluation,
the cost of the evaluation shall be deducted from any award the
employee obtains.
   (e) If an employee has received a comprehensive medical-legal
evaluation under this section, and he or she later becomes
represented by an attorney, he or she shall not be entitled to an
additional evaluation.


4062.2.  (a) Whenever a comprehensive medical evaluation is required
to resolve any dispute arising out of an injury or a claimed injury
occurring on or after January 1, 2005, and the employee is
represented by an attorney, the evaluation shall be obtained only as
provided in this section.
   (b) No earlier than the first working day that is at least 10 days
after the date of mailing of a request for a medical evaluation
pursuant to Section 4060 or the first working day that is at least 10
days after the date of mailing of an objection pursuant to Sections
4061 or 4062, either party may request the assignment of a
three-member panel of qualified medical evaluators to conduct a
comprehensive medical evaluation. The party submitting the request
shall designate the specialty of the medical evaluator, the specialty
of the medical evaluator requested by the other party if it has been
made known to the party submitting the request, and the specialty of
the treating physician. The party submitting the request form shall
serve a copy of the request form on the other party.
   (c) Within 10 days of assignment of the panel by the
administrative director, each party may strike one name from the
panel. The remaining qualified medical evaluator shall serve as the
medical evaluator. If a party fails to exercise the right to strike a
name from the panel within 10 days of assignment of the panel by the
administrative director, the other party may select any physician
who remains on the panel to serve as the medical evaluator. The
administrative director may prescribe the form, the manner, or both,
by which the parties shall conduct the selection process.
   (d) The represented employee shall be responsible for arranging
the appointment for the examination, but upon his or her failure to
inform the employer of the appointment within 10 days after the
medical evaluator has been selected, the employer may arrange the
appointment and notify the employee of the arrangements. The employee
shall not unreasonably refuse to participate in the evaluation.
   (e) If an employee has received a comprehensive medical-legal
evaluation under this section, and he or she later ceases to be
represented, he or she shall not be entitled to an additional
evaluation.
   (f) The parties may agree to an agreed medical evaluator at any
time, except as to issues subject to the independent medical review
process established pursuant to Section 4610.5. A panel shall not be
requested pursuant to subdivision (b) on any issue that has been
agreed to be submitted to or has been submitted to an agreed medical
evaluator unless the agreement has been canceled by mutual written
consent.


4062.3.  (a) Any party may provide to the qualified medical
evaluator selected from a panel any of the following information:
   (1) Records prepared or maintained by the employee's treating
physician or physicians.
   (2) Medical and nonmedical records relevant to determination of
the medical issue.
   (b) Information that a party proposes to provide to the qualified
medical evaluator selected from a panel shall be served on the
opposing party 20 days before the information is provided to the
evaluator. If the opposing party objects to consideration of
nonmedical records within 10 days thereafter, the records shall not
be provided to the evaluator. Either party may use discovery to
establish the accuracy or authenticity of nonmedical records prior to
the evaluation.
   (c) If an agreed medical evaluator is selected, as part of their
agreement on an evaluator, the parties shall agree on what
information is to be provided to the agreed medical evaluator.
   (d) In any formal medical evaluation, the agreed or qualified
medical evaluator shall identify the following:
   (1) All information received from the parties.
   (2) All information reviewed in preparation of the report.
   (3) All information relied upon in the formulation of his or her
opinion.
   (e) All communications with a qualified medical evaluator selected
from a panel before a medical evaluation shall be in writing and
shall be served on the opposing party 20 days in advance of the
evaluation. Any subsequent communication with the medical evaluator
shall be in writing and shall be served on the opposing party when
sent to the medical evaluator.
   (f) Communications with an agreed medical evaluator shall be in
writing, and shall be served on the opposing party when sent to the
agreed medical evaluator. Oral or written communications with
physician staff or, as applicable, with the agreed medical evaluator,
relative to nonsubstantial matters such as the scheduling of
appointments, missed appointments, the furnishing of records and
reports, and the availability of the report, do not constitute ex
parte communication in violation of this section unless the appeals
board has made a specific finding of an impermissible ex parte
communication.
   (g) Ex parte communication with an agreed medical evaluator or a
qualified medical evaluator selected from a panel is prohibited. If a
party communicates with the agreed medical evaluator or the
qualified medical evaluator in violation of subdivision (e), the
aggrieved party may elect to terminate the medical evaluation and
seek a new evaluation from another qualified medical evaluator to be
selected according to Section 4062.1 or 4062.2, as applicable, or
proceed with the initial evaluation.
   (h) The party making the communication prohibited by this section
shall be subject to being charged with contempt before the appeals
board and shall be liable for the costs incurred by the aggrieved
party as a result of the prohibited communication, including the cost
of the medical evaluation, additional discovery costs, and attorney'
s fees for related discovery.
   (i) Subdivisions (e) and (g) shall not apply to oral or written
communications by the employee or, if the employee is deceased, the
employee's dependent, in the course of the examination or at the
request of the evaluator in connection with the examination.
   (j) Upon completing a determination of the disputed medical issue,
the medical evaluator shall summarize the medical findings on a form
prescribed by the administrative director and shall serve the formal
medical evaluation and the summary form on the employee and the
employer. The medical evaluation shall address all contested medical
issues arising from all injuries reported on one or more claim forms
prior to the date of the employee's initial appointment with the
medical evaluator.
   (k) If, after a medical evaluation is prepared, the employer or
the employee subsequently objects to any new medical issue, the
parties, to the extent possible, shall utilize the same medical
evaluator who prepared the previous evaluation to resolve the medical
dispute.
   (l) No disputed medical issue specified in subdivision (a) may be
the subject of declaration of readiness to proceed unless there has
first been an evaluation by the treating physician or an agreed or
qualified medical evaluator.



4062.5.  If a qualified medical evaluator selected from a panel
fails to complete the formal medical evaluation within the timeframes
established by the administrative director pursuant to paragraph (1)
of subdivision (j) of Section 139.2, a new evaluation may be
obtained upon the request of either party, as provided in Sections
4062.1 or 4062.2. Neither the employee nor the employer shall have
any liability for payment for the formal medical evaluation which was
not completed within the required timeframes unless the employee or
employer, on forms prescribed by the administrative director, each
waive the right to a new evaluation and elects to accept the original
evaluation even though it was not completed within the required
timeframes.



4062.8.  The administrative director shall develop, not later than
January 1, 2004, and periodically revise as necessary thereafter,
educational materials to be used to provide treating physicians, as
described in Section 3209.3, or other providers, as described in
Section 3209.5, with information and training in basic concepts of
workers' compensation, the role of the treating physician, the
conduct of permanent and stationary evaluations, and report writing,
as appropriate.



4063.  If a formal medical evaluation from an agreed medical
evaluator or a qualified medical evaluator selected from a three
member panel resolves any issue so as to require an employer to
provide compensation, the employer shall, except as provided pursuant
to paragraph (2) of subdivision (b) of Section 4650, commence the
payment of compensation or file a declaration of readiness to
proceed.


4064.  (a) The employer shall be liable for the cost of each
reasonable and necessary comprehensive medical-legal evaluation
obtained by the employee pursuant to Sections 4060, 4061, and 4062.
Each comprehensive medical-legal evaluation shall address all
contested medical issues arising from all injuries reported on one or
more claim forms, except medical treatment recommendations, which
are subject to utilization review as provided by Section 4610, and
objections to utilization review determinations, which are subject to
independent medical review as provided by Section 4610.5.
   (b) For injuries occurring on or after January 1, 2003, if an
unrepresented employee obtains an attorney after the evaluation
pursuant to subdivision (d) of Section 4061 or subdivision (b) of
Section 4062 has been completed, the employee shall be entitled to
the same reports at employer expense as an employee who has been
represented from the time the dispute arose and those reports shall
be admissible in any proceeding before the appeals board.
   (c) Subject to Section 4906, if an employer files a declaration of
readiness to proceed and the employee is unrepresented at the time
the declaration of readiness to proceed is filed, the employer shall
be liable for any attorney's fees incurred by the employee in
connection with the declaration of readiness to proceed.
   (d) The employer shall not be liable for the cost of any
comprehensive medical evaluations obtained by the employee other than
those authorized pursuant to Sections 4060, 4061, and 4062. However,
no party is prohibited from obtaining any medical evaluation or
consultation at the party's own expense. In no event shall an
employer or employee be liable for an evaluation obtained in
violation of subdivision (b) of Section 4060. All comprehensive
medical evaluations obtained by any party shall be admissible in any
proceeding before the appeals board except as provided in Section
4060, 4061, 4062, 4062.1, or 4062.2.



4067.  If the jurisdiction of the appeals board is invoked pursuant
to Section 5803 upon the grounds that the effects of the injury have
recurred, increased, diminished, or terminated, a formal medical
evaluation shall be obtained pursuant to this article.
   When an agreed medical evaluator or a qualified medical evaluator
selected by an unrepresented employee from a three-member panel has
previously made a formal medical evaluation of the same or similar
issues, the subsequent or additional formal medical evaluation shall
be conducted by the same agreed medical evaluator or qualified
medical evaluator, unless the workers' compensation judge has made a
finding that he or she did not rely on the prior evaluator's formal
medical evaluation, any party contested the original medical
evaluation by filing an application for adjudication, the
unrepresented employee hired an attorney and selected a qualified
medical evaluator to conduct another evaluation pursuant to
subdivision (b) of Section 4064, or the prior evaluator is no longer
qualified or readily available to prepare a formal medical
evaluation, in which case Sections 4061 or 4062, as the case may be,
shall apply as if there had been no prior formal medical evaluation.



4067.5.  This article shall become operative for injuries occurring
on and after January 1, 1991.



4068.  (a) Upon determining that a treating physician's report
contains opinions that are the result of conjecture, are not
supported by adequate evidence, or that indicate bias, the appeals
board shall so notify the administrative director in writing in a
manner he or she has specified.
   (b) If the administrative director believes that any treating
physician's reports show a pattern of unsupported opinions, he or she
shall notify in writing the physician's applicable licensing body of
his or her findings.

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4150.  When an employer has in his employment any person not
included within the term "employee" as defined by Article 2 of
Chapter 2 of Part 1 of this division or a person not entitled to
compensation under this division, such employer and such person
employed by him may, by their joint election, come under the
compensation provisions of this division in the manner hereinafter
provided.


4151.  Election on the part of the employer shall be made in one of
the following ways:
   (a) By insuring against liability for compensation, in which case
he is deemed, as to all persons employed by him and covered by
insurance, to have so elected during the period such insurance
remains in force.
   (b) By filing with the administrative director a statement to the
effect that he accepts the compensation provisions of this division.



4152.  The statement, when filed, shall operate, within the meaning
of Chapter 3 (commencing with Section 3600), to subject him or her to
the compensation provisions thereof for the term of one year from
the date of filing. Thereafter, without further act on his or her
part, he or she shall be so subject for successive terms of one year
each, unless at least 60 days prior to the expiration of such first
or succeeding year, he or she files with the administrative director
a notice that he or she withdraws his or her election.



4153.  Such statement of acceptance includes persons whose
employment is both casual and not in the course of the trade,
business, profession, or occupation of the employer, unless expressly
excluded therefrom.



4154.  Where any employer has made an election in either of the
modes above prescribed, any person in his service is deemed to have
accepted the compensation provisions of this division if, at the time
of the injury for which liability is claimed:
   (a) Such employer is subject to the compensation provisions of
this division and;
   (b) Such person in his service has not, either upon entering into
the employment, or within five days after the filing of an election
by the employer, given to such employer notice in writing that he
elects not to be subject to the compensation provisions of this
division.
   In case of such acceptance, the person employed becomes subject to
the compensation provisions at the time of the filing of the
election or entry in the employment.



4155.  The State and each county, city, district, and public agency
thereof and all State institutions are conclusively presumed to have
elected to come within the provisions of this division as to all
employments otherwise excluded from this division.



4156.  No liability for compensation shall attach to any employer of
a person excluded by subdivision (h) of Section 3352 from the
definition of "employee" for an injury to or the death of a person so
excluded which occurs on or after the effective date of this section
if such employer elected to come under the compensation provisions
of this division pursuant to subdivision (a) of Section 4151 prior to
the effective date of this section by purchasing or renewing a
policy providing comprehensive personal liability insurance
containing a provision for coverage against liability for the payment
of compensation, as defined in Section 3207 of the Labor Code, to
any person defined as an employee by subdivision (d) of Section 3351
of the Labor Code; provided, however, nothing in this section shall
prohibit an employer from providing compensation pursuant to the
provisions of this chapter.



4157.  Where any employer has made an election pursuant to this
chapter to include under the compensation provisions of this division
an independent contractor engaged in vending, selling, offering for
sale, or delivering directly to the public any newspaper, magazine,
or periodical, the status of such person as an independent contractor
for all other purposes shall not be affected by such election.

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4201.  It is the intent of this chapter to apply to all enrollees in
economic opportunity programs, including, but not limited to, work
training or work study authorized by or financed in whole or in part
through provisions of Public Law 88-452 (Economic Opportunity Act of
1964).


4202.  "Economic Opportunity Program" means any program adopted
pursuant to Public Law 88-452, including, but not limited to, work
training and work study.


4203.  "Enrollee" means any person enrolled in an economic
opportunity program.



4204.  "Sponsoring agency" means any agency, entity, or institution,
public or private, receiving grants or financial assistance, either
directly or as a subcontractor, pursuant to Public Law 88-452.



4205.  "Participating agency" means any agency, entity or
institution, public or private, taking part in an economic
opportunity program, other than a sponsoring agency.




4206.  Except as provided in this chapter, an enrollee within a
given economic opportunity program shall have no right to receive
compensation from sponsoring or participating agencies, entities, and
institutions, public or private.


4207.  Compensation shall be furnished an enrollee for injury or to
dependents if injury causes death, suffered within or without the
state occurring in the course of his duties for a sponsoring agency
within an economic opportunity program if the following conditions
occur:
   (a) Where, at the time of injury, the enrollee is performing
services and is acting within the scope of his duties as a recipient
of aid within an economic opportunity program.
   (b) Where injury is proximately caused by his service as an
enrollee within an economic opportunity program either with or
without negligence.
   (c) Where injury is not caused by the intoxication of the injured
enrollee.
   (d) Where the injury is not intentionally self-inflicted.




4208.  Where the conditions of compensation exist, the right to
recover such compensation pursuant to the provisions of this chapter
is the exclusive remedy for injury or death of an enrollee against
the sponsoring agency, or the participating agency.




4209.  Insofar as not inconsistent with the provisions of this
chapter, all of the provisions of this division shall pertain to
enrollees and their dependents and the furnishing of compensation
benefits thereto.

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4211.  Where liability for compensation exists, such compensation
shall be provided as limited by this chapter.



4212.  If an enrollee suffers injury or death in the performance of
his duties under an economic opportunity program, then, irrespective
of his remuneration from this or other employment, his average weekly
earnings for the purpose of determining temporary and permanent
disability indemnity shall be determined in accordance with Section
4453, provided that for the purpose of this chapter only, there shall
be no statutory minimum average weekly earnings for temporary
disability indemnity. If the injury sustained by an enrollee causes
death, death benefits shall be determined in accordance with Sections
4701 and 4702 of this code.


4213.  If the injury sustained by an enrollee causes permanent
disability, the percentage of disability to total disability shall be
determined for the occupation of a laborer of like age by applying
the schedule for the determination of the percentage of permanent
disabilities prepared and adopted by the appeals board.




4214.  In addition to death benefit in the event of fatal injury,
the reasonable expenses of the enrollee's burial shall be paid not to
exceed six hundred dollars ($600).

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4401.  It is the declared policy of the state that qualified injured
workers with asbestosis which arises out of and occurs in the course
of employment shall receive workers' compensation asbestos workers'
benefits promptly and not be subjected to delays of litigation to
determine the responsible employer.


4402.  (a) "Asbestosis" means any pathology, whether or not combined
with preexisting pathology, which results in disability or need for
medical treatment from inhalation of asbestos fibers.
   (b) "Asbestos worker" means any person whose occupation subjected
him or her to an exposure to asbestos fibers.
   (c) "Asbestos workers' benefits" means temporary total disability
benefits, permanent total disability benefits, death benefits, and
medical benefits.
   (d) "Dependents" means, and is limited to, a surviving spouse who
at the time of injury was dependent on the deceased asbestos worker
for half or more of his or her support, and minor children of the
deceased asbestos worker.



4403.  The Asbestos Workers' Account is hereby created in the
Uninsured Employers Fund in the State Treasury, and shall be
administered by the Director of Industrial Relations. The money in
the Asbestos Workers' Account is hereby continuously appropriated for
the purposes of this chapter, and to pay the expenses of the
director in administering these provisions.



4404.  Insofar as not inconsistent with the provisions of this
chapter, all of the provisions of this division shall pertain to
asbestos workers and their dependents for purposes of furnishing
workers' compensation asbestos workers' benefits thereto.




4405.  Where the conditions of compensation exist under this
division the right to recover workers' compensation asbestos workers'
benefits pursuant to the provisions of this chapter is a temporary
remedy for injury to an asbestos worker against the Asbestos Workers'
Account, and such asbestos worker or his or her dependents shall
make all reasonable effort to establish the identity of the employer
responsible for securing the payment of compensation.



4406.  (a) Payments as advances on workers' compensation asbestos
workers' benefits shall be furnished an asbestos worker for injury
resulting in asbestosis, or the dependents of the asbestos worker in
the case of his or her death due to asbestosis, subject to the
provisions of this division, if all of the following conditions
occur:
   (1) The asbestos worker demonstrates to the account that at the
time of exposure, the asbestos worker was performing services and was
acting within the scope of his or her duties in an occupation that
subjected the asbestos worker to the exposure to asbestos.
   (2) The asbestos worker demonstrates to the account that he or she
is suffering from asbestosis.
   (3) The asbestos worker demonstrates to the account that he or she
developed asbestosis from the employment.
   (4) The asbestos worker is entitled to compensation for asbestosis
as otherwise provided for in this division.
   (b) The findings of the account with regard to the conditions in
subdivision (a) shall not be evidence in any other proceeding.
   (c) The account shall require the asbestos worker to submit to an
independent medical examination unless the information and assistance
officer, in consultation with the medical director or his or her
designee, determines that there exists adequate medical evidence that
the worker developed asbestosis from the employment.

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4407.  When the account determines that the conditions in Section
4406 have occurred, payments as advances on workers' compensation
asbestos workers' benefits shall be provided in accordance with this
chapter, notwithstanding the right of the asbestos worker to secure
compensation as otherwise provided for in this division.




4407.3.  For purposes of this chapter, the death benefit shall be
paid in installments in the same manner and amounts as temporary
disability indemnity.


4407.5.  Benefits provided by this chapter shall not be commuted
into a lump-sum payment.



4408.  Prior to seeking compensation benefits under this chapter,
the asbestos worker shall first make claim on the employer or its
workers' compensation insurance carrier for payment of compensation
under this division. If the asbestos worker is unable to locate the
responsible employer or insurance carrier, or if the employer or
insurance carrier fails to pay or denies liability for the
compensation required by this division to the person entitled
thereto, within a period of 30 days after the assertion of such a
claim, the asbestos worker may seek payment of workers' compensation
asbestos workers' benefits required by this division from the
Asbestos Workers' Account.



4409.  The Director of Industrial Relations, or his or her
representative, shall assign investigative and claims adjustment
services respecting matters concerning Asbestos Workers' Account
cases. Those assignments may be made within the department, including
the Division of Workers' Compensation, and excluding the State
Compensation Insurance Fund.



4409.5.  The administrative director shall appoint workers'
compensation judges and support staff who shall give priority to the
processing of the claims of asbestos workers.



4410.  The administrative director shall appoint at least two
information and assistance officers who shall give priority to
assisting asbestos workers pursuant to the provisions of this
chapter. The information and assistance officer shall assist to the
fullest extent possible any asbestos worker seeking benefits under
this chapter. In assisting the asbestos worker, the information and
assistance officer shall conduct necessary investigation and procure
those records, reports, and information which are necessary to the
early identification of responsible employers and insurance carriers,
and to facilitate in the expediting of payments of benefits that may
be due under this division.



4411.  (a) When a claim is made against the Asbestos Workers'
Account, the account shall secure appropriate information, adjust the
claim, and pay benefits provided by this chapter in accordance with
the provisions of this division.
   (b) The asbestos worker shall, prior to the first payment of
benefits by the Asbestos Workers' Account, file an application before
the Workers' Compensation Appeals Board to determine the responsible
employer for payment of compensation under this division.
   (c) In every case before the Workers' Compensation Appeals Board
in which a claim of injury from exposure to asbestos is alleged, the
appeals board shall join the Asbestos Workers' Account as a party to
the proceeding and serve the fund with copies of all decisions and
orders, including findings and awards, and order approving compromise
and release.
   (d) Once a decision establishing the responsible employer or
insurance carrier is agreed upon between the parties, or is issued by
the Workers' Compensation Appeals Board, and becomes final, the
Asbestos Workers' Account shall terminate payment of compensation
benefits, notify all interested parties accordingly, and seek
collection as provided for under this chapter. Responsibility for
payment of all future compensation benefits shall be in accordance
with such agreement, order, or decision.
   (e) The account shall terminate the payment of benefits to any
employee who fails to cooperate fully in determining the responsible
employer or insurance carrier.
   (f) The Asbestos Workers' Account may, at any time, commence or
join in proceedings before the Workers' Compensation Appeals Board by
filing an application on its own behalf. In any case in which the
Asbestos Workers' Account has been joined as a party or has filed an
application on its own behalf, the Asbestos Workers' Account shall
have all of the rights and privileges of a party applicant.

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4412.  The Asbestos Workers' Account shall take all reasonable and
appropriate action to insure that recovery is made by the account for
all moneys paid as compensation benefits and as costs.
   In the event that the responsible employer is uninsured, the
account shall not be entitled to reimbursement from the Uninsured
Employers Fund.



4413.  No limitation of time provided by this division shall run
against the Asbestos Workers' Account to initiate proceedings before
the Workers' Compensation Appeals Board when the account has made any
payment of moneys, incurred any costs for services, or encumbered
any liability of the account.



4414.  Immediately following the receipt of knowledge of initiation
of proceedings before the Workers' Compensation Appeals Board, or any
other jurisdiction providing benefits for the same injury, the
Asbestos Workers' Account shall file a lien and may invoke such other
remedies as are available to recover moneys expended for
compensation benefits.



4415.  In any hearing or proceeding, the Director of Industrial
Relations may use attorneys from within the department, or the
Attorney General, to represent the director and the state.



4416.  Once an agreement as to the responsible employer is reached,
or a decision is issued by the Workers' Compensation Appeals Board
and becomes final, the Asbestos Workers' Account shall notify the
responsible employer or insurance carrier of the amount of payment
necessary to satisfy the lien in full. Full payment of the lien shall
be made by the responsible employer or insurance carrier within 30
days of the issue of such notification. The account may grant a
reasonable extension of time for payment of the lien beyond 30 days.
This payment shall be for all moneys expended for compensation
benefits, and for all recoverable costs including the cost of
independent medical examination and all costs reasonably incidental
thereto, including, but not limited to, costs of transportation,
hospitalization, consultative evaluation, X-rays, laboratory tests,
and other diagnostic procedures. The payment shall bear interest, as
provided in Section 5800, from the date of the agreement or decision
through the date of payment.
   The lien of the Asbestos Workers' Account shall be allowed as a
first lien against compensation, and shall have priority over all
other liens. The lien of the Asbestos Workers' Account may not be
reduced by the Workers' Compensation Appeals Board or by the parties
unless express written consent to the proposed reduction of the lien
is given by the Asbestos Workers' Account and is filed in the record
of proceedings before the Workers' Compensation Appeals Board.



4417.  Nothing in this chapter shall be construed to preclude the
filing by an asbestos worker of a claim or suit for damages or
indemnity against any person other than his or her employer. The
Asbestos Workers' Account shall be entitled to recover from, and
shall have a first lien against, any amount which is recoverable by
the injured employee pursuant to civil judgment or settlement in
relation to a claim for damages or indemnity for the effect of
exposure to asbestos, for all compensation benefits paid to the
injured employee by the Asbestos Workers' Account which have not
previously been recovered from the responsible employer or employers
by the Asbestos Workers' Account. Recovery by the Asbestos Workers'
Account pursuant to the provisions of this section shall not have the
effect of extinguishing or diminishing the liability of the
responsible employer or employers to the injured employee for
compensation payable under the provisions of this division.




4418.  The provisions of this chapter providing for the payment of
workers' compensation asbestos workers' benefits from the Asbestos
Workers' Account shall be operative only until January 1, 1989, and
as of that date all payments from the fund shall be terminated, and
the state shall have no further obligation to pay asbestos workers'
benefits, unless a later enacted statute which is chaptered before
January 1, 1989, deletes or extends that date. However, if no statute
is enacted to delete or extend that date prior to January 1, 1989,
the authority of the Asbestos Workers' Account under this chapter to
recover the benefits and costs paid to asbestos workers prior to that
date shall continue until the benefits and costs have been
recovered.

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4451.  Average annual earnings shall be taken as fifty-two times the
average weekly earnings referred to in this chapter.



4452.  Four times the average annual earnings shall be taken at not
less than four thousand eight hundred dollars and sixty-four cents
($4,800.64) nor more than fifteen thousand two hundred dollars and
sixty-four cents ($15,200.64) in disability cases, and in death cases
shall be taken at not less than the minimum nor more than the
maximum limits as provided in Section 4702 of this code.



4452.5.  As used in this division:
   (a) "Permanent total disability" means a permanent disability with
a rating of 100 percent permanent disability only.
   (b) "Permanent partial disability" means a permanent disability
with a rating of less than 100 percent permanent disability.



4453.  (a) In computing average annual earnings for the purposes of
temporary disability indemnity and permanent total disability
indemnity only, the average weekly earnings shall be taken at:
   (1) Not less than one hundred twenty-six dollars ($126) nor more
than two hundred ninety-four dollars ($294), for injuries occurring
on or after January 1, 1983.
   (2) Not less than one hundred sixty-eight dollars ($168) nor more
than three hundred thirty-six dollars ($336), for injuries occurring
on or after January 1, 1984.
   (3) Not less than one hundred sixty-eight dollars ($168) for
permanent total disability, and, for temporary disability, not less
than the lesser of one hundred sixty-eight dollars ($168) or 1.5
times the employee's average weekly earnings from all employers, but
in no event less than one hundred forty-seven dollars ($147), nor
more than three hundred ninety-nine dollars ($399), for injuries
occurring on or after January 1, 1990.
   (4) Not less than one hundred sixty-eight dollars ($168) for
permanent total disability, and for temporary disability, not less
than the lesser of one hundred eighty-nine dollars ($189) or 1.5
times the employee's average weekly earnings from all employers, nor
more than five hundred four dollars ($504), for injuries occurring on
or after January 1, 1991.
   (5) Not less than one hundred sixty-eight dollars ($168) for
permanent total disability, and for temporary disability, not less
than the lesser of one hundred eighty-nine dollars ($189) or 1.5
times the employee's average weekly earnings from all employers, nor
more than six hundred nine dollars ($609), for injuries occurring on
or after July 1, 1994.
   (6) Not less than one hundred sixty-eight dollars ($168) for
permanent total disability, and for temporary disability, not less
than the lesser of one hundred eighty-nine dollars ($189) or 1.5
times the employee's average weekly earnings from all employers, nor
more than six hundred seventy-two dollars ($672), for injuries
occurring on or after July 1, 1995.
   (7) Not less than one hundred sixty-eight dollars ($168) for
permanent total disability, and for temporary disability, not less
than the lesser of one hundred eighty-nine dollars ($189) or 1.5
times the employee's average weekly earnings from all employers, nor
more than seven hundred thirty-five dollars ($735), for injuries
occurring on or after July 1, 1996.
   (8) Not less than one hundred eighty-nine dollars ($189), nor more
than nine hundred three dollars ($903), for injuries occurring on or
after January 1, 2003.
   (9) Not less than one hundred eighty-nine dollars ($189), nor more
than one thousand ninety-two dollars ($1,092), for injuries
occurring on or after January 1, 2004.
   (10) Not less than one hundred eighty-nine dollars ($189), nor
more than one thousand two hundred sixty dollars ($1,260), for
injuries occurring on or after January 1, 2005. For injuries
occurring on or after January 1, 2006, average weekly earnings shall
be taken at not less than one hundred eighty-nine dollars ($189), nor
more than one thousand two hundred sixty dollars ($1,260) or 1.5
times the state average weekly wage, whichever is greater. Commencing
on January 1, 2007, and each January 1 thereafter, the limits
specified in this paragraph shall be increased by an amount equal to
the percentage increase in the state average weekly wage as compared
to the prior year. For purposes of this paragraph, "state average
weekly wage" means the average weekly wage paid by employers to
employees covered by unemployment insurance as reported by the United
States Department of Labor for California for the 12 months ending
March 31 of the calendar year preceding the year in which the injury
occurred.
   (b) In computing average annual earnings for purposes of permanent
partial disability indemnity, except as provided in Section 4659,
the average weekly earnings shall be taken at:
   (1) Not less than seventy-five dollars ($75), nor more than one
hundred ninety-five dollars ($195), for injuries occurring on or
after January 1, 1983.
   (2) Not less than one hundred five dollars ($105), nor more than
two hundred ten dollars ($210), for injuries occurring on or after
January 1, 1984.
   (3) When the final adjusted permanent disability rating of the
injured employee is 15 percent or greater, but not more than 24.75
percent: (A) not less than one hundred five dollars ($105), nor more
than two hundred twenty-two dollars ($222), for injuries occurring on
or after July 1, 1994; (B) not less than one hundred five dollars
($105), nor more than two hundred thirty-one dollars ($231), for
injuries occurring on or after July 1, 1995; (C) not less than one
hundred five dollars ($105), nor more than two hundred forty dollars
($240), for injuries occurring on or after July 1, 1996.
   (4) When the final adjusted permanent disability rating of the
injured employee is 25 percent or greater, not less than one hundred
five dollars ($105), nor more than two hundred twenty-two dollars
($222), for injuries occurring on or after January 1, 1991.
   (5) When the final adjusted permanent disability rating of the
injured employee is 25 percent or greater but not more than 69.75
percent: (A) not less than one hundred five dollars ($105), nor more
than two hundred thirty-seven dollars ($237), for injuries occurring
on or after July 1, 1994; (B) not less than one hundred five dollars
($105), nor more than two hundred forty-six dollars ($246), for
injuries occurring on or after July 1, 1995; and (C) not less than
one hundred five dollars ($105), nor more than two hundred fifty-five
dollars ($255), for injuries occurring on or after July 1, 1996.
   (6) When the final adjusted permanent disability rating of the
injured employee is less than 70 percent: (A) not less than one
hundred fifty dollars ($150), nor more than two hundred seventy-seven
dollars and fifty cents ($277.50), for injuries occurring on or
after January 1, 2003; (B) not less than one hundred fifty-seven
dollars and fifty cents ($157.50), nor more than three hundred
dollars ($300), for injuries occurring on or after January 1, 2004;
(C) not less than one hundred fifty-seven dollars and fifty cents
($157.50), nor more than three hundred thirty dollars ($330), for
injuries occurring on or after January 1, 2005; and (D) not less than
one hundred ninety-five dollars ($195), nor more than three hundred
forty-five dollars ($345), for injuries occurring on or after January
1, 2006.
   (7) When the final adjusted permanent disability rating of the
injured employee is 70 percent or greater, but less than 100 percent:
(A) not less than one hundred five dollars ($105), nor more than two
hundred fifty-two dollars ($252), for injuries occurring on or after
July 1, 1994; (B) not less than one hundred five dollars ($105), nor
more than two hundred ninety-seven dollars ($297), for injuries
occurring on or after July 1, 1995; (C) not less than one hundred
five dollars ($105), nor more than three hundred forty-five dollars
($345), for injuries occurring on or after July 1, 1996; (D) not less
than one hundred fifty dollars ($150), nor more than three hundred
forty-five dollars ($345), for injuries occurring on or after January
1, 2003; (E) not less than one hundred fifty-seven dollars and fifty
cents ($157.50), nor more than three hundred seventy-five dollars
($375), for injuries occurring on or after January 1, 2004; (F) not
less than one hundred fifty-seven dollars and fifty cents ($157.50),
nor more than four hundred five dollars ($405), for injuries
occurring on or after January 1, 2005; and (G) not less than one
hundred ninety-five dollars ($195), nor more than four hundred five
dollars ($405), for injuries occurring on or after January 1, 2006.
   (8) For injuries occurring on or after January 1, 2013:
   (A) When the final adjusted permanent disability rating is less
than 55 percent, not less than two hundred forty dollars ($240) nor
more than three hundred forty-five dollars ($345).
   (B) When the final adjusted permanent disability rating is 55
percent or greater but less than 70 percent, not less than two
hundred forty dollars ($240) nor more than four hundred five dollars
($405).
   (C) When the final adjusted permanent disability rating is 70
percent or greater but less than 100 percent, not less than two
hundred forty dollars ($240) nor more than four hundred thirty-five
dollars ($435).
   (9) For injuries occurring on or after January 1, 2014, not less
than two hundred forty dollars ($240) nor more than four hundred
thirty-five dollars ($435).
   (c) Between the limits specified in subdivisions (a) and (b), the
average weekly earnings, except as provided in Sections 4456 to 4459,
shall be arrived at as follows:
   (1) Where the employment is for 30 or more hours a week and for
five or more working days a week, the average weekly earnings shall
be the number of working days a week times the daily earnings at the
time of the injury.
   (2) Where the employee is working for two or more employers at or
about the time of the injury, the average weekly earnings shall be
taken as the aggregate of these earnings from all employments
computed in terms of one week; but the earnings from employments
other than the employment in which the injury occurred shall not be
taken at a higher rate than the hourly rate paid at the time of the
injury.
   (3) If the earnings are at an irregular rate, such as piecework,
or on a commission basis, or are specified to be by week, month, or
other period, then the average weekly earnings mentioned in
subdivision (a) shall be taken as the actual weekly earnings averaged
for this period of time, not exceeding one year, as may conveniently
be taken to determine an average weekly rate of pay.
   (4) Where the employment is for less than 30 hours per week, or
where for any reason the foregoing methods of arriving at the average
weekly earnings cannot reasonably and fairly be applied, the average
weekly earnings shall be taken at 100 percent of the sum which
reasonably represents the average weekly earning capacity of the
injured employee at the time of his or her injury, due consideration
being given to his or her actual earnings from all sources and
employments.
   (d) Every computation made pursuant to this section beginning
January 1, 1990, shall be made only with reference to temporary
disability or the permanent disability resulting from an original
injury sustained after January 1, 1990. However, all rights existing
under this section on January 1, 1990, shall be continued in force.
Except as provided in Section 4661.5, disability indemnity benefits
shall be calculated according to the limits in this section in effect
on the date of injury and shall remain in effect for the duration of
any disability resulting from the injury.



4453.5.  Benefits payable on account of an injury shall not be
affected by a subsequent statutory change in amounts of indemnity
payable under this division, and shall be continued as authorized,
and in the amounts provided for, by the law in effect at the time the
injury giving rise to the right to such benefits occurred.




4454.  In determining average weekly earnings within the limits
fixed in Section 4453, there shall be included overtime and the
market value of board, lodging, fuel, and other advantages received
by the injured employee as part of his remuneration, which can be
estimated in money, but such average weekly earnings shall not
include any sum which the employer pays to or for the injured
employee to cover any special expenses entailed on the employee by
the nature of his employment, nor shall there be included either the
cost or the market value of any savings, wage continuation, wage
replacement, or stock acquisition program or of any employee benefit
programs for which the employer pays or contributes to persons other
than the employee or his family.



4455.  If the injured employee is under 18 years of age, and his or
her incapacity is permanent, his or her average weekly earnings shall
be deemed, within the limits fixed in Section 4453, to be the weekly
sum that under ordinary circumstances he or she would probably be
able to earn at the age of 18 years, in the occupation in which he or
she was employed at the time of the injury or in any occupation to
which he or she would reasonably have been promoted if he or she had
not been injured. If the probable earnings at the age of 18 years
cannot reasonably be determined, his or her average weekly earnings
shall be taken at the maximum limit established in Section 4453.



4456.  Where any employee is injured while engaged on any
unemployment work relief program conducted by the State, or a
political subdivision, or any State or governmental agency, the
disability payments due under this division shall be determined
solely on the monthly earnings or anticipated earnings of such person
from such program, such payments to be within the minimum and
maximum limits set forth in section 4453.



4457.  In the event the average weekly earnings of workmen
associating themselves under a partnership agreement, the principal
purpose of which is the performance of labor on a particular piece of
work, are not otherwise ascertainable, they shall be deemed to be
forty dollars ($40).



4458.  If a member registered as an active firefighting member of
any regularly organized volunteer fire department as described in
Section 3361 suffers injury or death while in the performance of his
duty as fireman, or if a person engaged in fire suppression as
described in Section 3365 suffers injury or death while so engaged,
then, irrespective of his remuneration from this or other employment
or from both, his average weekly earnings for the purposes of
determining temporary disability indemnity and permanent disability
indemnity shall be taken at the maximum fixed for each, respectively,
in Section 4453. Four times his average annual earnings in
disability cases and in death cases shall be taken at the maximum
limits provided in Sections 4452 and 4702 respectively.



4458.2.  If an active peace officer of any department as described
in Section 3362 suffers injury or death while in the performance of
his or her duties as a peace officer, or if a person engaged in the
performance of active law enforcement service as described in Section
3366 suffers injury or death while in the performance of that active
law enforcement service, or if a person registered as a reserve
peace officer of any regularly organized police or sheriff's
department as described in Section 3362.5 suffers injury or death
while in the performance of his or her duties as a peace officer,
then, irrespective of his or her remuneration from this or other
employment or from both, his or her average weekly earnings for the
purposes of determining temporary disability indemnity and permanent
disability indemnity shall be taken at the maximum fixed for each,
respectively, in Section 4453. Four times his or her average annual
earnings in disability cases and in death cases shall be taken at the
maximum limits provided in Sections 4452 and 4702 respectively.



4458.5.  If a member suffers "an injury" following termination of
active service, and within the time prescribed in Section 3212,
3212.2, 3212.3, 3212.4, 3212.5, 3212.6, 3212.7, or 3213, then,
irrespective of his remuneration from any postactive service
employment, his average weekly earnings for the purposes of
determining temporary disability indemnity, permanent total
disability indemnity, and permanent partial disability indemnity,
shall be taken at the maximum fixed for each such disability,
respectively, in Section 4453.



4459.  The fact that an employee has suffered a previous disability,
or received compensation therefor, does not preclude him from
compensation for a later injury, or his dependents from compensation
for death resulting therefrom, but in determining compensation for
the later injury, or death resulting therefrom, his average weekly
earnings shall be fixed at the sum which reasonably represents his
earning capacity at the time of the later injury.

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4550.  Where liability for compensation exists under this division,
such compensation shall be furnished or paid by the employer and
shall be as provided in this chapter.



4551.  Where the injury is caused by the serious and willful
misconduct of the injured employee, the compensation otherwise
recoverable therefor shall be reduced one-half, except:
   (a) Where the injury results in death.
   (b) Where the injury results in a permanent disability of 70
percent or over.
   (c) Where the injury is caused by the failure of the employer to
comply with any provision of law, or any safety order of the Division
of Occupational Safety and Health, with reference to the safety of
places of employment.
   (d) Where the injured employee is under 16 years of age at the
time of injury.


4552.  The reduction of compensation because of the serious and
willful misconduct of an employee is not enforceable, valid, or
binding in any respect until the appeals board has so determined by
its findings and award as provided in Chapter 6 of Part 4 of this
division.



4553.  The amount of compensation otherwise recoverable shall be
increased one-half, together with costs and expenses not to exceed
two hundred fifty dollars ($250), where the employee is injured by
reason of the serious and willful misconduct of any of the following:
   (a) The employer, or his managing representative.
   (b) If the employer is a partnership, on the part of one of the
partners or a managing representative or general superintendent
thereof.
   (c) If the employer is a corporation, on the part of an executive,
managing officer, or general superintendent thereof.



4553.1.  In order to support a holding of serious and willful
misconduct by an employer based upon violation of a safety order, the
appeals board must specifically find all of the following:
   (1) The specific manner in which the order was violated.
   (2) That the violation of the safety order did proximately cause
the injury or death, and the specific manner in which the violation
constituted the proximate cause.
   (3) That the safety order, and the conditions making the safety
order applicable, were known to, and violated by, a particular named
person, either the employer, or a representative designated by
Section 4553, or that the condition making the safety order
applicable was obvious, created a probability of serious injury, and
that the failure of the employer, or a representative designated by
Section 4553, to correct the condition constituted a reckless
disregard for the probable consequences.



4554.  In case of the willful failure by an employer to secure the
payment of compensation, the amount of compensation otherwise
recoverable for injury or death as provided in this division shall be
increased 10 percent. Failure of the employer to secure the payment
of compensation as provided in Article 1 (commencing at Section 3700)
of Chapter 4 of Part 1 of this division is prima facie evidence of
willfulness on his part.



4555.  In case of failure by an employer to secure the payment of
compensation, the appeals board may award a reasonable attorney's fee
in addition to the amount of compensation recoverable. When a fee is
awarded under this section no further fee shall be allowed under
Section 4903 but the provisions of Section 4903 shall be applicable
to secure the payment of any fee awarded under this section.



4555.5.  Whenever a petition to reduce an award, based upon a
permanent disability rating which has become final, is denied, the
appeals board may order the petitioner to pay to the injured employee
all costs incident to the furnishing of X-rays, laboratory services,
medical reports, and medical testimony incurred by such employee in
connection with the proceeding on such petition.



4556.  The increases provided for by this article shall not be
limited by the provisions of Chapter 1 of this part relating to
maximum amounts in the computation of average earnings.



4557.  Where the injury is to an employee under 16 years of age and
illegally employed at the time of injury, the entire compensation
otherwise recoverable shall be increased fifty percent (50%), and
such additional sum shall be paid by the employer at the same time
and in the same manner as the normal compensation benefits.
   An employer shall not be held liable for the additional
compensation provided by this section if such an employee is hired
pursuant to a birth certificate, automobile driver's license, or
other reasonable evidence of the fact the employee is over the age of
15 years, even though such evidence of age were falsely obtained by
the employee. The additional compensation provided by this section
shall not exceed the maximum sum specified by Section 4553 for
additional compensation payable for serious and willful misconduct on
the part of an employer. This section shall not apply to the State
or any of its political subdivisions or districts.



4558.  (a) As used in this section:
   (1) "Employer" means a named identifiable person who is, prior to
the time of the employee's injury or death, an owner or supervisor
having managerial authority to direct and control the acts of
employees.
   (2) "Failure to install" means omitting to attach a point of
operation guard either provided or required by the manufacturer, when
the attachment is required by the manufacturer and made known by him
or her to the employer at the time of acquisition, installation, or
manufacturer-required modification of the power press.
   (3) "Manufacturer" means the designer, fabricator, or assembler of
a power press.
   (4) "Power press" means any material-forming machine that utilizes
a die which is designed for use in the manufacture of other
products.
   (5) "Removal" means physical removal of a point of operation guard
which is either installed by the manufacturer or installed by the
employer pursuant to the requirements or instructions of the
manufacturer.
   (6) "Specifically authorized" means an affirmative instruction
issued by the employer prior to the time of the employee's physical
injury or death, but shall not mean any subsequent acquiescence in,
or ratification of, removal of a point of operation safety guard.
   (b) An employee, or his or her dependents in the event of the
employee's death, may bring an action at law for damages against the
employer where the employee's injury or death is proximately caused
by the employer's knowing removal of, or knowing failure to install,
a point of operation guard on a power press, and this removal or
failure to install is specifically authorized by the employer under
conditions known by the employer to create a probability of serious
injury or death.
   (c) No liability shall arise under this section absent proof that
the manufacturer designed, installed, required, or otherwise provided
by specification for the attachment of the guards and conveyed
knowledge of the same to the employer. Proof of conveyance of this
information to the employer by the manufacturer may come from any
source.
   (d) No right of action for contribution or indemnity by any
defendant shall exist against the employer; however, a defendant may
seek contribution after the employee secures a judgment against the
employer pursuant to the provisions of this section if the employer
fails to discharge his or her comparative share of the judgment.