Bill > SB847

This bill adds a new section to California's Labor Code that provides the Administrative Director of the Division of Workers' Compensation with expanded authority to address situations where uninsured employers attempt to avoid workers' compensation liability by transferring real property. Specifically, the bill allows the director to investigate property transfers made after a work-related injury and before a lien is recorded, and determine whether such transfers were intentionally designed to shield assets from potential workers' compensation claims. If the director finds sufficient evidence that a property transfer was meant to retain a beneficial interest for the uninsured employer (such as transfers to relatives, gifts, transfers without proper taxes paid, or transfers lacking reasonable equivalent value), they can declare a "resulting trust" that essentially treats the property transfer as invalid. The bill provides a detailed process for making this determination, including specific circumstances that might suggest an improper transfer, and offers the property transferor and transferee an opportunity to challenge the director's findings through a hearing and potential court appeal. The goal is to prevent uninsured employers from fraudulently avoiding financial responsibility for workplace injuries by artificially transferring property ownership.

Budget and Finance, Business and Industry, Justice, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB847