1. (a) In addition to the existing requirements to provide the current financial statement to the Manager contained in Section 15203.2 of these regulations, the Manager shall require financial information that includes designated general information and key financial items from such financial statement required by Section 15203.2, in a format approved by the Director pursuant to subsection (c)(3), from any private self insured employer that:

   1. (1) does not have public financial statements (such as closely held or privately held employers) or has no published credit rating; and
   2. (2) has a required security deposit equal to or greater than $2,000,000 or fails to meet the financial requirements to be self insured as contained in Section 15203.2.

2. (b) Financial information shall include the following designated general information and key financial items:

   1. (1) General Information Items:

      1. (A) Name of Employer
      2. (B) Date of Last Annual Financial Statement

   2. (2) Key Financial Information:

      1. (A) Cash and Marketable Securities
      2. (B) Inventory
      3. (C) Total Current Assets
      4. (D) Total Intangible Assets
      5. (E) Total Assets
      6. (F) Total Short Term Debt
      7. (G) Total Current Liabilities
      8. (H) Total Long Term Debt
      9. (I) Long Term Pension Obligations
      10. (J) Total Liabilities
      11. (K) Total Shareholders' Equity
      12. (L) Total Preferred Stock
      13. (M) Retained Earnings
      14. (N) Net Sales
      15. (O) Cost of Goods Sold
      16. (P) Selling, General & Administrative Expenses
      17. (Q) Operating Profit/ (Loss)
      18. (R) Earnings before Interest and Taxes
      19. (S) Total Interest Expenses
      20. (T) Rental Expense
      21. (U) Net Income
      22. (V) Depreciation & Amortization
      23. (W) Extraordinary Items

3. (c) A private self insured employer that fails to file the financial information as determined by this section shall be ineligible to participate as a fully participating member in the current alternative composite deposit.

   1. (1) The Manager shall utilize available financial information to assign a non-investment grade rating to any self insured employer that fails to submit financial information for eligibility as a partial participating member.
   2. (2) The Manager shall be authorized to determine that a private self insurer that fails to submit financial information be ineligible for partial participation in the current alternative composite deposit program.
   3. (3) After December 31, 2004, the financial information required by subsection (b) shall be submitted to the Manager electronically in a format provided by the Manager.
4. (d) Pursuant to Labor Code Section 3701.8(b)(5), the Manager may provide to the Security Fund any financial information needed to set the deposit assessments for self-insured employers participating in the alternative composite deposit program and to secure the composite deposit.

Note: Authority cited: Sections 3701.8 and 3702.10, Labor Code. Reference: Sections 3701.8 and 3702.10, Labor Code.

History

1. New section filed 5-30-2003 as an emergency; operative 5-30-2003 (Register 2003, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-29-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-30-2003 order, including amendment of subsection (a), subsection relettering and new subsection (d) -- form A4-7, transmitted to OAL 9-29-2003 and filed 11-12-2003 (Register 2003, No. 46).

3. Amendment of section heading and subsections (a), (b) and (c)-(c)(2), new subsection (c)(3) and repealer and new subsection (d) filed 7-6-2004 as an emergency; operative 7-6-2004 (Register 2004, No. 28). A Certificate of Compliance must be transmitted to OAL by 11-3-2004 or emergency language will be repealed by operation of law on the following day.

4. Amendment of section heading and subsections (a), (a)(2) and (c)-(c)(2), new subsection (c)(3) and repealer and new subsection (d) refiled 11-3-2004 as an emergency; operative 11-3-2004 (Register 2004, No. 45). A Certificate of Compliance must be transmitted to OAL by 3-3-2005 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 11-3-2004 order transmitted to OAL 1-26-2005 and filed 3-8-2005 (Register 2005, No. 10).