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 additional authority to address property transfers by uninsured employers attempting to avoid workers' compensation liability. Specifically, the bill allows the director to investigate real property transfers made after a worker's injury and before a lien is recorded, to determine if the transfer was intended to create a de facto trust benefiting the uninsured employer. The director can make a prima facie finding that such a trust exists based on various indicators, such as the transfer being labeled as a gift, no transfer tax being paid, or the transfer exhibiting suspicious characteristics like being made to a relative or associate, or the transferor continuing to use the property. If the director determines a resulting trust exists, a lien can be attached to the property as if no transfer had occurred. The bill provides a process for the transferor or transferee to request a hearing to challenge the director's determination, with the option to seek judicial review through a writ of mandate. Importantly, the bill does not impact the rights of bona fide purchasers or encumbrancers, ensuring that legitimate property transactions remain protected. This legislation aims to prevent uninsured employers from fraudulently transferring property to avoid paying workers' compensation benefits.

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

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