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

Senator Reyes's workers' compensation legislation empowers California's Division of Workers' Compensation director to examine real property transfers made by uninsured employers after workplace injuries, determining whether these transfers constitute attempts to retain beneficial interest while avoiding liability.

The bill establishes specific criteria for identifying potentially problematic property transfers. The director may make a prima facie finding of a resulting trust when a deed indicates a gift transfer or lacks county transfer tax payment. Additionally, if three or more qualifying circumstances exist - such as transfers to associates or relatives, continued occupancy by the transferor, absence of escrow services, or below-market compensation - the director may determine the transfer intended to hinder collection of workers' compensation funds.

When such determinations occur, the legislation requires the director to record a certificate of lien against the property and notify all parties. Transferors and transferees maintain rights to contest these findings through administrative hearings, which must occur within 20 days of request. Parties may further appeal hearing outcomes to superior court within 20 days. The provisions explicitly preserve the rights of bona fide purchasers and encumbrancers who acquire property interests without notice of potential liens.