SAN FRANCISCO, CA - An important step toward increased transparency and strengthened corporate governance for State Fund was achieved today with Governor Schwarzenegger’s signing of important governance legislation - AB1874 (Coto) and SB1145 (Machado). State Fund worked collaboratively with the Legislature to secure the bills’ passage as part of its comprehensive plan to transform the organization initiated by the State Fund board in March 2007.
AB1874 expands the State Fund Board of Directors from five to 11 voting members, which will enable the creation of key subcommittees, mandates board training and requires board members to sign financial conflict of interest agreements. Board members will also now receive compensation to ensure the organization can attract and retain quality candidates.
SB1145 provides State Fund with six exempt management positions to allow State Fund to recruit top executives to fill key management positions such as Chief Financial Officer, Chief Operation Officer, General Counsel, Chief Risk Officer, Chief Information Officer and Chief Investment Officer to manage State Fund, one of the nation’s largest workers’ compensation carriers. SB1145 also makes State Fund subject to the Bagley-Keene and California Public Records Act. State Fund’s next Board of Directors meeting is scheduled for November 20th and 21st , and will include open sessions.
“Adding the new exempt management positions and increasing the size of the board will strengthen State Fund's corporate governance and establish greater accountability and oversight within the organization," said Jeanne Cain, State Fund Board Chair. "This board has worked very hard to chart a new course for State Fund and bringing our management and board structure and expertise in line with other companies of comparable size and scope is an important piece of that work.”
Cain also credited Jan Frank, State Fund’s President and CEO, for the changes occurring at State Fund: “Under Jan’s leadership State Fund has made tremendous progress in the areas of corporate governance, strengthening operational efficiency and enhancing customer service to ensure that State Fund is positioned to continue serving as California’s most stable workers’ compensation carrier.
While SB 1145 provides greater access to State Fund, it also provides important safeguards to protect State Fund’s competitive role in the marketplace.
“California depends on a financially sound State Fund with our open door policy of writing all business across all classifications and sizes,” said Frank. “We appreciate the public’s interest in State Fund and understand that State Fund is an important resource for California employers and their employees,” stated Frank. “Open meetings will provide people an opportunity to not only watch our board in action, but also participate, and our newly established Public Records Office will handle the public’s requests for information.”
Frank continued: “We are working hard to climb a steep learning curve and have done everything possible to readily respond to the public’s interest. This environment is very new for us and we expect the process will evolve and improve as we gain more experience working in it.”
This legislation is one part of a comprehensive plan to transform State Fund initiated by the board in March 2007. Since Jan Frank joined the organization in October 2007, she has enacted many changes and laid a solid foundation for State Fund’s future. Her accomplishments include:
For information regarding public records call State Fund’s Public Records Office at 888-724-3237. You can also email the Public Records Office at PublicRecords@scif.com.
