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

Labor Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Reyes
Last action: 2025-10-13
Official status: Chaptered by Secretary of State. Chapter 790, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The term 'shareholders' was narrowed down to 'substantial shareholders' as per the official bill text and summary.

Uninsured Employer Property Transfers

This law allows the workers' compensation director to determine if an uninsured employer or a substantial shareholder is trying to hide property by transferring it, and if so, treats that transfer as a trust for the benefit of the uninsured employer.

What This Bill Does

Allows the director to decide if real property transferred by an uninsured employer or their substantial shareholders after an injury but before a lien is recorded was meant to retain control over the property.
Requires the director to assume there's a beneficial trust when certain conditions are met, like no transfer tax being paid or the deed saying it’s a gift.
Makes sure that if a trust exists, a certificate of lien must be attached and notices sent to both parties involved in the transfer.

Who It Names or Affects

Uninsured employers
Substantial shareholders of uninsured employers

Terms To Know

Beneficial interest: The right to use and benefit from property, even if you don't own it legally.
Trust: A legal arrangement where one person holds property for the benefit of another.

Limits and Unknowns

Does not specify what happens after a certificate of lien is attached.
The law does not define who qualifies as a substantial shareholder.

Bill History

2025-10-13 California Legislative Information
Chaptered by Secretary of State. Chapter 790, Statutes of 2025.
2025-10-13 California Legislative Information
Approved by the Governor.
2025-09-03 California Legislative Information
Enrolled and presented to the Governor at 11 a.m.
2025-08-28 California Legislative Information
In Senate. Ordered to engrossing and enrolling.
2025-08-28 California Legislative Information
Read third time. Passed. (Ayes 74. Noes 0. Page 2777.) Ordered to the Senate.
2025-08-21 California Legislative Information
Read second time. Ordered to consent calendar.
2025-08-20 California Legislative Information
From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 20).
2025-07-16 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 17. Noes 0.) (July 16). Re-referred to Com. on APPR.
2025-07-02 California Legislative Information
From committee: Do pass and re-refer to Com. on INS. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (July 1). Re-referred to Com. on INS.
2025-06-19 California Legislative Information
Re-referred to Coms. on JUD. and INS. pursuant to Assembly Rule 96.
2025-06-05 California Legislative Information
Referred to Coms. on INS. and JUD.
2025-05-29 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-05-29 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1334.) Ordered to the Assembly.
2025-05-13 California Legislative Information
Read second time. Ordered to third reading.
2025-05-12 California Legislative Information
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
2025-05-02 California Legislative Information
Set for hearing May 12.
2025-04-30 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 944.) (April 29). Re-referred to Com. on APPR.
2025-04-09 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 740.) (April 9). Re-referred to Com. on JUD.
2025-04-08 California Legislative Information
Set for hearing April 29 in JUD. pending receipt.
2025-03-26 California Legislative Information
Set for hearing April 9.
2025-03-12 California Legislative Information
Referred to Coms. on L., P.E. & R. and JUD.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 847, Reyes.
Workers’ compensation: uninsured employer: transfer of real property.
Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of employment. Under existing law, an employer is required to provide for the payment of workers’ compensation and if the employer has not secured the payment of compensation or is illegally uninsured, a lien may be filed against the employer’s property or the property of any person found to be parents or substantial shareholders of the employer.
This bill would authorize the director to determine whether a conveyance of real property by an uninsured employer or a substantial shareholder after a date of injury in a claim and prior to the recording of a certificate of lien was intended to retain a beneficial interest in that real property for
the uninsured employer or substantial shareholder, resulting in a trust for the benefit of the uninsured employer. The bill would authorize the director to make a prima facie finding that the transaction resulted in a beneficial trust for the uninsured employer when specified circumstances are present, such as the deed indicates that the transfer was made as a gift or that no transfer tax to the county was paid, among others. The bill would require that when the director determines that such a trust exists, a certificate of lien shall be attached to the resulting trust and would require the director to mail written notices of that determination to the transferor and transferee, as prescribed.

Current Bill Text

Read the full stored bill text

Download Bill PDF