California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 8 - Office of the Director › Subchapter 2.06 - Workers' Compensation-Administration Revolving Fund Assessment, Uninsured Employers Benefits Trust Fund Assessment, Subsequent Injuries Benefits Trust Fund Assessments, Labor Enforcement and Compliance Fund Assessment, Occupational Safety and Health Fund Assessment, and Fraud Surcharge › Article 2 - Determination of Assessments and/or Surcharge › Section 15601.7 - Determination of Self Insured Employers Subject to the Targeted Inspection Assessment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
On or before September 1 of each year, the Manager of
						Self-Insurance Plans shall identify for the Director each Private Self Insurer
						subject to the Targeted Inspection Assessment as determined below.
(a) The Targeted Inspection Assessment shall
					 apply to each Self Insurer in each grouping set forth in subsection (b) that
					 has a current 1-year average number of indemnity claims per 100 employees as
					 calculated in subsection (e) below, that is equal to or in excess of 125
					 percent of the 3 year base figure determined for each grouping in subsection
					 (d) of this section.
(b) The
					 Manager shall categorize all private self insurers into groups for the purpose
					 of calculating the Targeted Inspection Assessment. All private self insurers
					 shall be categorized into groups by the first two digits of their North
					 American Industry Classification System Code (NAICS Code) as reported on Page 1
					 of the Self Insurer's Annual Report for the reporting period immediately prior
					 to the current budget year. For purposes of such categorization, each private
					 group self insurer shall be considered as a single entity. The Manager may
					 correct the NAICS Code reported for cause or where the Manager believes an
					 error was made by the self insurer in designating their NAICS Code on the
					 Annual Report. The Manager may also substitute the proper NAICS Code for the
					 Standard Industrial Classification Code (SIC Code) if the SIC Code was reported
					 rather than the NAICS Code.
(c) For
					 each NAICS Code grouping set forth in subsection (a), the Manager shall
					 calculate the historical average number of indemnity claims per 100 employees
					 from the Consolidated Liabilities page of the full year Self Insurer's Annual
					 Reports submitted by the members in each NAICS Code group for the 3 year
					 reporting period immediately prior to the current 1-year period used to
					 calculate the individual self insurer's indemnity claims per 100
					 employees.
(d) The Manager shall
					 calculate a figure that will be 125 percent of each NAICS Code grouping's 3
					 year historical average number of indemnity claims per 100 employees.
(e) For each private self insurer, the
					 Manager shall calculate an individual 1-year number of indemnity claims per 100
					 employees, using information reported by each self insurer on its last full
					 year Self Insurer's Annual Report submitted for the reporting period
					 immediately prior to the current budget year. In this calculation, the manager
					 shall divide the total number of indemnity claims reported in the most recent
					 claim year by the total number of California employees reported, with the
					 result multiplied by 100. Any self insurer with less than 100 total employees
					 shall be considered to have 100 employees for purposes of this
					 calculation.
1. New
						section filed 9-6-94 as an emergency; operative 9-6-94 (Register 94, No. 36). A
						Certificate of Compliance must be transmitted to OAL by 1-4-95 or emergency
						language will be repealed by operation of law on the following
						day.
2. Certificate of Compliance as to 9-6-94 order including
						amendment of first paragraph and subsections (a), (d), and (e), repealer of
						subsections (b)-(b)(3), and new subsection (b) transmitted to OAL 12-30-94 and
						filed 2-15-95 (Register 95, No. 7).
3. Amendment of section and NOTE
						filed 11-10-97; operative 11-10-97 pursuant to Government Code section
						11343.4(d)
						(Register 97, No. 46).
4. Amendment of subsection (b) filed
						12-18-2003; operative 12-18-2003. Submitted to OAL for printing only (Register
						2003, No. 51).
5. Amendment of subsections (a)-(c) filed 3-2-2009;
						operative 3-2-2009 pursuant to Government Code section
						11343.4
						(Register 2009, No. 10).
Note: Authority cited: Sections
						  54,
						  55,
						  62.7 and
						  62.9, Labor
						  Code. Reference: Section
						  62.7 and
						  62.9, Labor
						  Code.