State Compensation Insurance Fund: board.

Existing law establishes the State Compensation Insurance Fund to be administered by a board of directors for the purpose of transacting workers' compensation insurance and other public employment related insurances, as specified. Under existing law, the members of the board are prohibited from having a financial conflict of interest, as defined. This bill would provide that, for purposes of board actions affecting generally applicable rates, a member of the board of directors shall not be deemed to have a financial interest, as defined in the Political Reform Act of 1974 and pursuant to specified government contracting conflict of interest provisions, in a contract of insurance between the State Compensation Insurance Fund and an organization of which any member of the board of directors is an owner, officer, or employee. This bill would declare that it is to take effect immediately as an urgency statute.