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CA SB847

Bill

Status

Passed

10/13/2025

Primary Sponsor

Eloise Reyes

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Authorizes the Director of the Division of Workers' Compensation to determine whether property transfers by uninsured employers or substantial shareholders after a workplace injury were intended to evade liens by creating a "resulting trust" that retains beneficial interest for the transferor

  • Allows a prima facie finding of fraudulent transfer when the deed shows the property was transferred as a gift or no county transfer tax was paid

  • Permits findings of intent to defraud when at least 3 of 6 factors are present, including: transfer to a relative or associate, transferor continues to reside/work at the property, no escrow company used, below-market consideration, failure to attend hearings, or transferor owns no other county property

  • Requires the director to mail written notice to transferors and transferees of resulting trust determinations, with the right to request a hearing within 20 days and appeal to superior court via writ of mandate

  • Certificates of lien attach to resulting trust property in the same manner as if the transfer had not occurred, while protecting bona fide purchasers and encumbrancers

Legislative Description

Workers’ compensation: uninsured employer: transfer of real property.

Last Action

Chaptered by Secretary of State. Chapter 790, Statutes of 2025.

10/13/2025

Committee Referrals

Appropriations7/16/2025
Insurance7/2/2025
Judiciary6/19/2025
Insurance6/5/2025
Appropriations4/30/2025
Judiciary4/9/2025
Labor, Public Employment and Retirement3/12/2025
Rules2/21/2025

Full Bill Text

No bill text available