California Labor Code

§ 3720.2

LAB § 3720.2 Effective Jan 1, 2026Div. 4 · Part 1 · Ch. 4 · Art. 2

Statute text

(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:

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Legislative history

Added by Stats. 2025, Ch. 790, Sec. 1. (SB 847) Effective January 1, 2026.