BILL NUMBER: AB 2665	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dababneh

                        FEBRUARY 21, 2014

   An act to amend Section 3700.5 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2665, as introduced, Dababneh. Workers' compensation:
enforcement.
   Existing law establishes a workers' compensation system to
compensate an employee for injuries sustained in the course of
employment. Existing law generally requires an employer to secure the
payment of compensation, as specified, and makes it a misdemeanor to
fail to secure the payment of compensation by one who knew, or
because of his or her knowledge or experience should be reasonably
expected to have known, of the obligation to secure the payment of
compensation, punishable by imprisonment in the county jail for up to
one year, a specified fine of not less than $10,000, or both.
Existing law makes a second or subsequent conviction of this offense
punishable by imprisonment in the county jail for up to one year, a
specified fine of not less than $50,000, or both. Existing law
requires these fines to be deposited in the Workers' Compensation
Fraud Account, to be used for specified purposes upon appropriation
by the Legislature.
   This bill would increase the amounts of these fines to not less
than $25,000 for the first offense and not less than $75,000 for the
2nd and subsequent offenses.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3700.5 of the Labor Code is amended to read:
   3700.5.  (a) The failure to secure the payment of compensation as
required by this article by one who knew, or because of his or her
knowledge or experience should be reasonably expected to have known,
of the obligation to secure the payment of compensation, is a
misdemeanor punishable by imprisonment in the county jail for up to
one year, or by a fine of up to double the amount of premium, as
determined by the court, that would otherwise have been due to secure
the payment of compensation during the time compensation was not
secured, but not less than  ten thousand dollars ($10,000)
  twenty-five thousand dollars ($25,000)  , or by
both that imprisonment and fine.
   (b) A second or subsequent conviction shall be punished by
imprisonment in the county jail for a period not to exceed one year,
by a fine of triple the amount of premium, or by both that
imprisonment and fine, as determined by the court, that would
otherwise have been due to secure the payment of compensation during
the time payment was not secured, but not less than  fifty
thousand dollars ($50,000)   seventy-five thousand
dollars ($75,000)  .
   (c) Upon a first conviction of a person under this section, the
person may be charged the costs of investigation at the discretion of
the court. Upon a subsequent conviction, the person shall be charged
the costs of investigation in addition to any other penalties
pursuant to subdivision (b). The costs of investigation shall be paid
only after the payment of any benefits that may be owed to injured
workers, any reimbursement that may be owed to the director for
benefits provided to the injured worker pursuant to Section 3717, and
any other penalty assessments that may be owed.