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State Compensation Insurance Fund

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The State Compensation Insurance Fund ( State Fund ) is a workers' compensation insurer that was created as a " public enterprise fund" by the U.S. state of California , and today has partial autonomy from the rest of the state government . It is required by state law to maintain its headquarters in San Francisco , but has regional offices all over the state.

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51-618: State Fund was created by the Boynton Act of 1913, and it started operations in 1914. Around that same time, the voters amended the California Constitution by initiative to strengthen the constitutionality of the state workers' compensation system. This was necessary because American employers during the early 20th century often challenged mandatory workers' compensation statutes as an unconstitutional invasion of freedom of contract , an argument which had strong persuasive force during

102-552: A ballot proposition is a referendum or an initiative measure that is submitted to the electorate for a direct decision or direct vote (or plebiscite ). If passed, it can alter one or more of the articles of the Constitution of California , one or more of the 29 California Codes , or another law in the California Statutes by clarifying current or adding statute(s) or removing current statute(s). Measures can be placed on

153-546: A "direct democracy system specifically designed to be inflexible" might be infeasible to continue as a way to make important California public policy decisions. Issues have also been raised regarding the narrowing of democratic access imposed by the high cost of conducting initiatives and referendums, and by the challenges raised by attempting comprehensive governance in the face of individual, non-comprehensive (and sometimes at least partially contrary) initiatives. Generally, because of California's size and population, proponents of

204-502: A 2020 population of 39,538,223. A constitutional revision originally required a constitutional convention but today may be passed with the approval of both two-thirds of the Legislature and approval by a majority of voters; while simplified since its beginnings, the revision process is considered more politically charged and difficult to successfully pass than an amendment. Voters exercising the initiative power are not permitted to propose

255-421: A ballot initiative or referendum need significant amounts of money and resources to first gather the required number of petition signatures, and then campaign across the state for the effort's passage. The wealthy and large special interest groups can afford to do so (or to sponsor the opposition campaigns), a process that can be cost-prohibitive to most other organizations and individual citizens. With regard to

306-419: A circulating title and summary, gather the signatures, and file the petitions with the county elections officials; otherwise, it must go through the initiative process, submitted as a proposed amendment. Laws that are ineligible for optional referendums include urgency statutes, statutes calling elections, and statutes providing for tax levies or appropriations for usual, current state expenses. To qualify on

357-473: A constitutional amendment called Proposition 7 . According to the Initiative & Referendum Institute at USC , Gov. Hiram Johnson supported the creation of this process to balance the power that corporations, specifically Southern Pacific Railroad , had over legislators. In 2022, with Democrats having a super-majority in both houses of the legislature, corporations have been using this process to challenge

408-464: A constitutional revision. Many of the signatories to the state's original 1849 constitution were themselves prominent in their own right, and are listed below. The list notably includes several Californios (California-born, Spanish-speaking residents). California ballot proposition Mayoral elections: Mayoral elections: Mayoral elections: Mayoral elections: Mayoral elections: Mayoral elections: In California ,

459-459: A majority of those voting in the election held at the same time, or a majority of those who are registered to vote. If the proposition passes, it becomes a part of the state constitution (if it is a proposed amendment) or the state's statutes (if it is a proposed statute), in the latter case having the same legal effect as if it had been passed by the state legislature and signed by the governor. Under California law, certain types of bills passed by

510-482: A stronger protection applies than under the U.S. Constitution's Eighth Amendment; the former prohibits punishments that are "cruel or unusual", while the latter only prohibits punishments that are "cruel and unusual". The constitution also confers upon women equality of rights in "entering or pursuing a business, profession, vocation, or employment." This is the earliest state constitutional equal rights provision on record. Two universities are expressly mentioned in

561-671: A third-party administrator, adjusting claims for almost all of the state agencies. California is one of 21 states with a competitive state fund in the workers' compensation insurance market. In 2010, State Fund implemented a plan to redesign operations and reduce costs for California employers. In 2013, State Fund announced that it reduced annual fixed expenses by $ 300 million. These savings will help State Fund maintain fair pricing and bring greater value to more California employers. California Constitution [REDACTED] [REDACTED] [REDACTED] The Constitution of California ( Spanish : Constitución de California )

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612-612: A workforce of more than 4,000 people (the number varies based on State Fund's current percentage of the market). In 2013, State Fund’s market share was the largest in the state at nearly 11%. Its market share spiked to over 50 percent in years 2002–2004 when a large number of private carriers left the market. In keeping with its mission, State Fund has an open-door policy, writing insurance for California businesses that need workers' compensation insurance. State Fund insures approximately 130,000 policyholders in California. State Fund also serves as

663-511: Is 131 days before that election. An initiative that qualifies by this deadline is first classified by the Secretary of State as "eligible" for the upcoming statewide ballot; those that qualify after this deadline are "eligible" for the following statewide ballot. Proponents still have the option to withdraw an initiative that is "eligible" for the ballot. The Secretary of State only uses the "qualified" classification in this particular case to mean when

714-399: Is among the longest in the world. This is predominantly due to additions by California ballot propositions , which allow enacting amendments by a simple majority vote in a referendum. Since its enactment, the California constitution has been amended an average of five times each year. As a result, if California were a sovereign state, its constitution would rank the second or third-longest in

765-405: Is at least 8 percent (for an amendment to the state constitution) or 5 percent (for a statute) of the number of people who voted in the most recent election for governor. For 2020 and 2022, the minimum number of required signatures needed to be collected is 623,212 for a proposed statute, and 997,139 for a proposed constitutional amendment. The filing fee for submitting an initiative to the ballot

816-500: Is the primary organizing law for the U.S. state of California , describing the duties, powers, structures and functions of the government of California . California's constitution was drafted in both English and Spanish by American pioneers , European settlers, and Californios ( Hispanics of California ) and adopted at the 1849 Constitutional Convention of Monterey , following the American Conquest of California and

867-678: Is the case of Pruneyard Shopping Center v. Robins , in which "free speech" rights beyond those addressed by the First Amendment to the United States Constitution were found in the California Constitution by the California courts. One of California's most significant prohibitions is against "cruel or unusual punishment," a stronger prohibition than the U.S. Constitution's Eighth Amendment prohibition against "cruel and unusual punishment." The Constitution of California

918-487: Is to allow time for each chamber in the State Legislature to assign the proposed initiative to its appropriate committees and schedule public hearings on it. However, the Legislature cannot amend the proposed initiative or prevent it from being added to the ballot once it qualifies. After all the signed petitions have been collected, proponents need to turn them in to each appropriate county elections official (i.e. all

969-472: Is used for educational purposes. The California Constitution distinguishes between constitutional amendments and constitutional revisions, the latter of which is considered to be a "substantial change to the entire constitution, rather than ... a less extensive change in one or more of its provisions". Both require passage of a California ballot proposition by the voters, but they differ in how they may be proposed. A constitutional amendment may be placed on

1020-534: The California Supreme Court in its ruling in Taxpayers to Limit Campaign Spending v. Fair Political Practices Commission : When two or more measures are competing initiatives, either because they are expressly offered as "all-or-nothing" alternatives or because each creates a comprehensive regulatory scheme related to the same subject, section 10(b) mandates that only the provisions of the measure receiving

1071-583: The Lochner era . Since 1976, State Fund's constitutional basis has been found in Article 14, Section 4 of the state constitution: The Legislature is hereby expressly vested with plenary power , unlimited by any provision of this Constitution, to create, and enforce a complete system of workers' compensation...including the establishment and management of a state compensation insurance fund... In May 2014, State Fund reported 2013 assets of approximately $ 20 billion and

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1122-697: The Mexican–American War and in advance of California's Admission to the Union in 1850. The constitution was amended and ratified on 7 May 1879, following the Sacramento Convention of 1878–79 . Many of the individual rights clauses in the state constitution have been construed as protecting rights even broader than the United States Bill of Rights in the Federal Constitution . An example

1173-951: The State Compensation Insurance Fund , the California Department of Alcoholic Beverage Control , and the State Bar of California ; the purpose of such amendments was to insulate the agencies from being attacked as an unconstitutionally broad exercise of police power or inherent judicial power. Unlike other state constitutions, the California Constitution strongly protects the corporate existence of cities and counties and grants them broad plenary home rule powers. The constitution gives charter cities, in particular, supreme authority over municipal affairs, even allowing such cities' local laws to trump state law. By specifically enabling cities to pay counties to perform governmental functions for them, Section 8 of Article XI resulted in

1224-500: The State Legislature and signed by the Governor must be submitted to the voters as a referendum at the next statewide election. Legislative bills that require mandatory referendums include state constitutional amendments, bond measures , and amendments to previously approved voter initiatives. More than 50 percent of the voters must then support these amendments or new laws on the ballot for them to go into effect. Laws already adopted by

1275-476: The ballot by either a two-thirds vote in the California State Legislature or by signatures equal to 8% of the votes cast in the last gubernatorial election through the exercise of the initiative power by the voters. The signature requirement for constitutional amendments is among the lowest thresholds for similar measures of any U.S. state . As of 2023 , this was 874,641 signatures compared to

1326-432: The ballot either by the California State Legislature or via a petition signed by registered voters. The state legislature can place a state constitutional amendment or a proposed law change on the ballot as a referendum to be approved by voters. Under the state constitution, certain proposed changes to state laws may require mandatory referendums, and must be approved by voters before they can take effect. A measure placed on

1377-498: The ballot in any given year. Starting with the November 1982 ballot, the proposition numbers were not re-used but continued to increment every election, eventually resulting in proposition numbers exceeding 200 by the 1996 election. For the November 1998 ballot, the count was reset back to one. It is now reset every ten years. Under Article II, Section 10(b) of the California Constitution , "If provisions of 2 or more measures approved at

1428-489: The ballot via petition can either be a vote to veto a law that has been adopted by the legislature (an optional referendum or "people's veto") or a new proposed law (initiative). There are three forms of direct democracy in California state elections: mandatory referendums (part of the Constitution of California since 1856), optional referendums, and initiatives. The initiative and optional (or facultative) referendum were introduced as Progressive Era reforms in 1911, by

1479-401: The ballot, a referendum petition must be signed by at least five percent of the number of voters in the previous gubernatorial election . The signature checking process by the counties is basically the same as the initiative process. The counties take a random sample of 3 percent or 500 of the signatures, whichever is greater. If the statewide random sample total projects more than 110 percent of

1530-420: The constitution. The California Constitution is one of the longest in the world. The length has been attributed to a variety of factors, such as the influence of previous Mexican civil law , a lack of faith in elected officials and the fact that many initiatives take the form of a constitutional amendment. Several amendments involved the authorization of the creation of state government agencies, including

1581-469: The constitution: the public state-run University of California and the private Stanford University . UC is one of only nine state-run public universities in the United States whose independence from political interference is expressly guaranteed by the state constitution. Since 1900, Stanford has enjoyed the benefit of a constitutional clause shielding Stanford-owned property from taxes as long as it

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1632-487: The electorate approved the creation of a California Constitution Revision Commission, which worked on a comprehensive revision of the constitution from 1964 to 1976. The electorate ratified the commission's revisions in 1966, 1970, 1972, and 1974, but rejected the 1968 revision, whose primary substantive effect would have been to make the state's superintendent of schools into an appointed rather than an elected official. The Commission ultimately removed about 40,000 words from

1683-499: The final version of the proposed measure to prepare its report, and the Attorney General has 15 days after receiving these fiscal estimates to send the final official version of the title and summary to both the Secretary of State and the initiative proponents. After gaining approval, proponents have 180 days to gather the required number of signatures (the Secretary of State sets the official deadline within one day after receiving

1734-435: The height of the U.S. Progressive Era, to 1986, the California Constitution was amended or revised over 500 times. The constitution gradually became increasingly bloated, leading to abortive efforts towards a third constitutional convention in 1897, 1914, 1919, 1930, 1934 and 1947. By 1962, the constitution had grown to 75,000 words, which at that time was longer than any other state constitution but Louisiana's. That year,

1785-485: The highest number of affirmative votes be enforced. The Court was concerned that attempts to combine the non-conflicting provisions in such competing initiatives would result in regulatory schemes completely different from what the electorate understood or intended. Criticism has been raised of the initiative process, suggesting that with trends toward lower voter turnouts, and evidence for voter disinterest in candidates and issues other than in presidential elections, that

1836-429: The initiative is on the official list that will appear on the ballot, which is prepared and certified on that 131-day mark. Ballots that record neither a "yes" nor a "no" on the proposition are ignored, and of the remaining votes, "yes" votes must exceed "no" votes for the proposition to pass. In other words, the majority of voters required for passage refers to a majority of those voting on that proposition, rather than

1887-454: The law is repealed. As of 2020, only 94 optional referendums proposed since 1912 had received a circulating title and summary, and of those only 52 qualified for the ballot. Originally, ballot propositions were given a number starting at one each election. This tended to be confusing as often famous initiatives such as Proposition 13 in 1978 might be confused with another initiative in a later year if there were more than twelve proposals on

1938-515: The power that unions and other progressive activists currently yield in the legislature. California Senate Bill 202, passed in 2011, mandated that initiatives and optional referendums can appear only on the November general election ballot, a statute that was controversial at the time, being seen as a self-serving, single-party initiative; the November general election rule for initiatives and optional referendums has nevertheless persisted. The minimum number of signatures for an initiative petition

1989-556: The proposed law, and the California Legislative Analyst's Office submits a report on its estimated fiscal effects. There is a 30-day public review period that begins after the Attorney General receives the submission and the filing fee, where any member of the public may submit public comments on the proposed initiative. The Attorney General then prepares the official title and summary after the public review period. The Legislative Analyst's Office has 50 days after receiving

2040-415: The required number of signatures, the initiative automatically qualifies; if less than 95 percent, it fails; and if it is between 95 and 110 percent, the Secretary of State then orders a check of all the signatures. If required, the counties then have another 30 working days to do a full check. The cut-off time to go through this entire process, have all the signatures verified and get on a particular ballot

2091-402: The required number of signatures, the referendum automatically qualifies; if less than 95 percent, it fails; and if it is between 95 and 110 percent, a full check of all the signatures is performed. Unlike initiatives which must qualify 131 days before the election to appear on the ballot, a referendum can qualify up to 31 days before. If the referendum receives more "no" votes than "yes" votes,

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2142-426: The rise of the contract city . Article 4, Section 8(d) defines an "urgency statute" as one "necessary for immediate preservation of the public peace, health, or safety"; any proposed bill including such a provision includes a "statement of facts constituting the necessity" and a two-thirds majority of each house is required to also separately pass the bill's urgency section. Many of the individual rights clauses in

2193-415: The same election conflict, those of the measure receiving the highest affirmative vote shall prevail." However, those provisions that do not conflict with the winning proposition may still go into effect. To get around this loophole, many initiatives include so-called "poison pill" clauses, specifying which provisions are voided in the other propositions. The rule in the constitution was clarified in 1990 by

2244-580: The signatures from those in Alameda County need to be submitted to the Alameda County elections official, Los Angeles County signatures need to be turned in to the LA County elections official, and so on). Each county then has eight working days after receiving the signed petitions to report the raw count of signatures to the Secretary of State, who then determines if the counties can proceed with verifying

2295-441: The signatures or if the initiative proponents failed to get the required number of signatures. In verifying the signatures, the counties first take a random sample of 3 percent or 500 of the signatures, whichever is greater, and have 30 working days to report their findings to the Secretary of State. If a county received less than 500, it is to verify all of them. If the statewide random sample total projects more than 110 percent of

2346-637: The state constitution have been construed as protecting rights broader than the Bill of Rights in the federal constitution . Two examples include (1) the Pruneyard Shopping Center v. Robins case involving an implied right to free speech in private shopping centers , and (2) the first decision in America in 1972 found that the death penalty is unconstitutional. California v. Anderson , 6 Cal. 3d 628. This noted that under California's state constitution

2397-400: The state legislature may be vetoed by means of a referendum. This is also known as a "petition referendum" or "people's veto". The process is similar to an initiative as noted above, except that it is an already passed law submitted as a petition to the Attorney General. The proponent, however, only has 90 days after the law in question is enacted to submit the request to the Attorney General for

2448-466: The title and summary from the Attorney General). Proponents usually seek at least 50 percent more than the legal minimum number of signatures to compensate for possible duplicate or otherwise invalid signatures. Proponents who have gathered at least 25 percent of the required number of signatures must immediately submit a written statement to the Secretary of State certifying they have done so. This

2499-459: The world by total number of words. This has led politicians and political scientists to argue the procedures for amending the California constitution are too lax, creating a state constitution that is filled with irrelevant detail and incoherent policies created by conflicting majorities attempting to impose their will on each other by the ballot process. The Constitution of California has undergone numerous changes since its original drafting. It

2550-510: Was increased from $ 200 to $ 2,000 following the signing of a law in September 2015. This fee is refunded if the proposition makes it to the ballot. The $ 200 fee had been originally set in 1943, and the State Legislature felt that it needed to be increased to discourage people from proposing frivolous or improper measures for the ballot. Before initiative proponents may gather signatures, the Attorney General prepares an official title and summary for

2601-468: Was rewritten from scratch several times before the drafting of the current 1879 constitution, which has itself been amended or revised (see below ). In response to widespread public disgust with the powerful railroads that controlled California's politics and economy at the start of the 20th century, Progressive Era politicians pioneered the concept of aggressively amending the state constitution by initiative in order to remedy perceived evils. From 1911,

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