California Assembly Bill AB2081 Introduced / Bill

 BILL NUMBER: AB 2081INTRODUCED BILL TEXT INTRODUCED BY Committee on Education (Brownley (Chair), Nestande (Vice Chair), Ammiano, Arambula, Buchanan, Carter, Eng, Solorio, and Torlakson) FEBRUARY 18, 2010 An act to amend Sections 1274 and 5200 of the Education Code, relating to education. LEGISLATIVE COUNSEL'S DIGEST AB 2081, as introduced, Committee on Education. Education. (1) Existing law authorizes a county superintendent of schools to establish a fund or funds for losses and payments, including, but not limited to, property of the superintendent, any liability, and workers' compensation, in the county treasury for the purpose of covering the deductible amount under deductible types of insurance policies, losses or payments arising from self-insurance programs, or losses or payments due to noninsured perils. Existing law specifies that these provisions do not preclude a county superintendent from providing protection against those losses and liability partly by means of insurance written by acceptable insurers. This bill would delete an obsolete cross-reference relating to insurance and would make technical changes. (2) Existing law requires a unified school district that is coterminous with or includes within its boundaries a chartered city or city and county to be governed by the board of education provided for in the charter of the city or city and county. Existing law exempts such a unified school district from certain provisions of law, except as specified. This bill would delete an obsolete cross-reference relating to these provisions and would make technical changes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1274 of the Education Code is amended to read: 1274. The county superintendent of schools may establish a fund or funds for losses, and payments, including, but not limited to, property of the  county  superintendent  of schools  , any liability, and workers' compensation, in the county treasury for the purpose of covering the deductible amount under deductible types of insurance policies, losses or payments arising from self-insurance programs, or losses or payments due to noninsured perils. In the fund or funds shall be placed such sums, to be provided in the budget of the  county  superintendent of schools  , as will create an amount which, together with investments made from the fund or funds, will be sufficient in the judgment of the  county  superintendent  of schools  to protect the  county  superintendent  of schools  from those losses or to provide for payments on the deductible amount under deductible types of insurance policies, losses or payments arising from self-insurance programs, or losses or payments due to noninsured perils. Nothing in this section shall be construed as prohibiting the  county  superintendent  of schools  from providing protection against those losses or liability for the payment of claims partly by means of the fund or funds and partly by means of insurance written by acceptable insurers  as provided in Section 39601  . The fund or funds shall be considered as separate and apart from all other funds of the  county  superintendent  of schools  , and the balance therein shall not be considered as being part of the working cash of the  county  superintendent  of schools  in compiling annual budgets. Warrants may be drawn on, or transfers made from, the fund or funds so created only to reimburse or indemnify the  county  superintendent  of schools  for losses as herein specified, and for the payment of claims, administrative costs, related services, and to provide for deductible insurance amounts and purchase of excess insurance. The warrants or transfers shall be within the purpose of the fund or funds as established by the county  superintendent  of schools  . The cash placed in the fund or funds may be invested and reinvested by the county treasurer, with the advice and consent of the  county  superintendent  of schools  , in securities which are legal investments for surplus county funds in this state. The income derived from the investments, together with interest earned on uninvested funds, shall be considered revenue of and be deposited in the fund. The cost of contracts or services authorized by this section are appropriate charges against the respective fund. The  county  superintendent  of schools  may contract for investigative, administrative, and claims adjustment services relating to claims. The contract may provide that the contracting firm may reject, settle, compromise, and approve claims against the  county  superintendent  of schools  , its officers or employees, within those limits and for those amounts as the  county  superintendent  of schools  may specify, and may provide that the contracting firm may execute and issue checks in payment of those claims, which checks shall be payable only from a trust account which may be established by the  county  superintendent  of schools  . Funds in the trust account established by the  county  superintendent  of schools  pursuant to the provisions of this section shall not exceed a sum sufficient as determined by the superintendent to provide for the settlement of claims for a 30-day period. The rejection or settlement and approval of a claim by the contracting firm in accordance with the terms of the contract shall have the same effect as would the rejection or settlement and approval of the claim by the  county  superintendent  of schools  . The contract may also provide that the contracting firm may employ legal counsel, subject to those terms and limitations as the  county  superintendent  of schools  may prescribe, to advise the contracting firm concerning the legality and advisability of rejecting, settling, compromising, and paying claims referred to the contracting firm by the  county  superintendent  of schools  for investigation and adjustment, or to represent the superintendent in litigation concerning the claims. The compensation and expenses of the attorney for services rendered to the  county  superintendent  of schools  shall be an appropriate charge against the appropriate fund. The contract provided for in this section may contain any other terms and conditions the  county  superintendent  of schools  may consider necessary or desirable to effectuate the superintendent's self-insured programs. In lieu of, or in addition to, contracting for the services described in this section, the  county  superintendent  of schools  may authorize an employee or employees to perform any or all of the services and functions which the  county  superintendent  of schools  may contract for under the provisions of this section. As used in this section, "firm" includes a person, corporation, or other legal entity. A county superintendent of schools may participate in, or administer, insurance for one or more school or community college districts pursuant to this section, and  Sections 39602 and   Section  81602. SEC. 2. Section 5200 of the Education Code is amended to read: 5200. Any unified school district  which   that  is coterminous with or includes within its boundaries a chartered city or city and county shall be governed by the board of education provided for in the charter of the city or city and county. Sections 5000, 5017,  5050,  5090, 5091, 35013, 35101, and 35105 shall not apply to such unified school districts, except as follows: (a) As provided in the charter of the city or city and county. (b) If the charter of the city or city and county fails to provide for a board of education or for any or all of the matters specified in Sections 5000, 5017,  5050,  5090, 5091, 5222, 35013, 35101, and 35105  , those sections  shall apply as to the matter not provided for in the charter.