AB 279 Workers' compensation: failure to pay compensation
BILL NUMBER: AB 279 CHAPTERED 09/29/99 
BILL TEXT 

CHAPTER 553 
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 1999 
APPROVED BY GOVERNOR SEPTEMBER 28, 1999 
PASSED THE ASSEMBLY SEPTEMBER 1, 1999 
PASSED THE SENATE AUGUST 30, 1999 
AMENDED IN SENATE JULY 8, 1999 
AMENDED IN ASSEMBLY MAY 25, 1999 
AMENDED IN ASSEMBLY APRIL 5, 1999 

INTRODUCED BY Assembly Member Wayne
FEBRUARY 4, 1999
An act to amend Section 3700.5 of the Labor Code, relating to
workers' compensation.

LEGISLATIVE COUNSEL'S DIGEST 


AB 279, Wayne. Workers' compensation: failure to pay
compensation. 
Existing law governing workers' compensation requires every employer except the state to secure the payment of compensation in one or more of several specified ways, including the procurement of workers' compensation insurance. Existing law makes it a misdemeanor, punishable by imprisonment in the county jail not to exceed 6 months, or by a fine of $1,000, or both for an employer to fail to secure the payment of compensation when the employer 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. This bill would instead make the willful failure to secure the payment of compensation a misdemeanor, punishable by either
a fine of up to $10,000 or imprisonment in the county jail not to exceed one year, or both. By changing the definition of, and increasing the punishment for, a crime, this bill would impose a state-mandated local program. 
The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated
by the state. Statutory provisions establish procedures for
making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

SECTION 1. Section 3700.5 of the Labor Code is amended to
read: 
3700.5. 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 ten
thousand dollars ($10,000), or by both that imprisonment and
fine. 
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution
because the only costs that may be incurred by a local agency or
school district will be incurred because this act creates a new
crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the
meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article
XIIIB of the California Constitution.

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