The Labor Unions have major influence in California. Dave Jones who was pushing the bill is also a candidate for insurance commissioner. This relates to State Compensation Insurance Fund – the Largest Worker’s Compensation carrier in California.
From the Worker’s Comp Insurance Executive:
Facing criticism that it was trying to force State Compensation Insurance Fund to waste millions of dollars on additional training for its claims adjusters that would only make them more marketable to other carriers, a key union backed down from that proposal. In exchange it won passage of a bill that would repeal a plan to sell State Fund assets and would subject future appointees to its board of directors to greater public scrutiny.
This latter provision earned AB 1897, a bill by Assemblyman and insurance commissioner candidate Dave Jones (D-Sacramento), the continued opposition of the state’s carrier of last resort. State Fund’s board is already on record as opposing the sale idea, but it says a proposed requirement to subject appointees to Senate confirmation would unnecessarily politicize the process. State Fund’s 11-member board is appointed by the governor and the Legislature.
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