California SB 847: Budget Act of 2016.

Bill Text

• 

• 

• 

• 

• 

• 
 Bill Text - SB-847 Workers’ compensation: uninsured employer: transfer of real property.

• 

• skip to content

• home

• accessibility

• FAQ

• feedback

• sitemap

• login

• x

 Quick Search:

 Bill Number
 Bill Keyword

• 

• 

• 

• 

• 

• Home

• Bill Information

• California Law

• Publications

• Other Resources

• My Subscriptions

• My Favorites

• Bill Information
 >>

• Bill Search
 >>

• Text

 Bill Text

 PDF2
 Bill PDF

 |Add To My Favorites |Track Bill | Version: 10/13/25 - Chaptered
 08/29/25 - Enrolled
 02/21/25 - Introduced

 SB-847 Workers’ compensation: uninsured employer: transfer of real property.(2025-2026)

 Text

 >>

 Votes

 >>

 History
 >>

 Bill Analysis
 >>

 Today's Law As Amended
 >>

 Compare Versions
 >>

 Status
 >>

 Comments To Author

 >>

 Track Bill
 >>

 Add To My Favorites
 >>

 SHARE THIS:

 Date Published: 10/14/2025 02:00 PM

SB847:v97#DOCUMENTBill Start

 Senate Bill

 No. 847

 CHAPTER 790

 An act to add Section 3720.2 to the Labor Code, relating to workers’ compensation. 

 [
 Approved by

 Governor
 October 13, 2025.

 Filed with

 Secretary of State
 October 13, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

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.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 3720.2 is added to the Labor Code, to read:

3720.2.

 (a) In a claim in which the uninsured employer or a substantial shareholder, as determined pursuant to this article, has caused to be recorded in a county a vesting deed conveying an ownership interest in real property after the date of the employee’s injury and prior to the recording of a certificate of lien in the county by the director pursuant to Section 3720, and provided that such property has not subsequently been transferred to a bona fide purchaser, the director may determine according to the evidence available to the director whether the transferor of such real property intended to retain a beneficial interest in the real property, such that a resulting trust for the benefit of the uninsured employer or substantial shareholder was created. A prima facie finding that the transaction created a
 resulting trust for the benefit of the uninsured employer or substantial shareholder may be made when the director determines that there is sufficient evidence to show either of the following circumstances are present:

(1) The recorded vesting deed indicates thereon that the transfer was made as a gift or that no transfer tax to the county was paid.

(2) The transferor made the transfer with actual intent to hinder, delay, or defraud collection of reimbursement for funds paid by the Uninsured Employers Benefits Trust Fund to or on behalf of an injured worker. A finding made pursuant to this paragraph may be made when at least three or more of the following circumstances are present:

(A) The transfer was to a personal or business associate or a relative by blood, affinity, or marriage of the transferor.

(B) The transferor maintains the real property as a place of residence or business after the transfer.

(C) The transferring parties did not employ an escrow or title company to close the transaction transferring the real property.

(D) The value of the consideration receive