California Code of Regulations
Title 8 - Industrial Relations
Division 1 - Department of Industrial Relations
Chapter 4.5 - Division of Workers' Compensation
Subchapter 1.5 - Injuries on or After January 1, 1990
Article 3 - Auditing
Section 10106.5 - Civil Penalty Investigation

Notwithstanding California Code of Regulations, title 8, sections 10106.1 and 10107.1, if the Audit Unit has information indicating the possible existence of claims handling practices which would be assessable as a civil penalty under Labor Code section 129.5(e), it may conduct an investigation and/or audit pursuant to Labor Code sections 129 and 129.5. The Audit Unit may also utilize the provisions of Government Code sections 11180 through 11191 as the delagee of the Administrative Director's powers as a department head.

The Audit Unit shall report any suspected fraudulent activity uncovered during an audit and/or investigation to the appropriate law enforcement agencies, including but not limited to the Department of Insurance Fraud Bureau and the appropriate District Attorney having jurisdiction over the audit subject.

1. New section filed 10-26-98; operative 11-25-98 (Register 98, No. 44).
2. Amendment filed 12-30-2002; operative 1-1-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 1).
3. Amendment of first paragraph filed 4-20-2009; operative 5-20-2009 (Register 2009, No. 17).

Note: Authority cited: Sections 129.5, 133 and 5307.3, Labor Code. Reference: Sections 11180 through 11191, Government Code; and Sections 59, 60, 111, 124, 129 and 129.5, Labor Code.