A three-agency investigatory task force has been formed in thelatest stage of an ongoing probe into the operations ofCalifornia's state-run workers' compensation insurer, an officialsaid today.

Announced yesterday, the combined inquiry examining the StateCompensation Insurance Fund (SCIF) will include the State InsuranceDepartment, Highway Patrol and San Francisco District Attorney'soffice, said Jennifer Kerns, a spokesperson for the CaliforniaInsurance Department.

The group will "investigate potential personnel issues andpotential inappropriate use of monies at the state fund," said Ms.Kerns.

In its joint announcement, the task force said it hasestablished a toll free tip line 877 620-2345 that the public canuse to report information pertinent to the investigation.

In March, SCIF's board--after what it said was an internalinvestigation--removed its president, James Tudor, and vicepresident, Renee Koren. Lawrence E. Mulryan has been installed asinterim president.

Ms. Kerns said in April when the department began scrutinizingSCIF that the agency was "investigating any potential misuse offunds related to administrative fees." The fees, it was explained,are aid monies that business associations or individual employerscan receive for mitigation and safety programs in theworkplace.

The concern, said Ms. Kerns, is there may have been funds paidby the quasi-public SCIF that did not go for the items they weresupposed to cover.

Yesterday's announced formation of the task force "sends apowerful message we are continuing to move forward with ourinvestigation of the State Fund. For some time now, these threeagencies have been sharing information but we've moved into a morecoordinated effort between the three agencies," Ms. Kerns said.

Having such a task force is not an uncommon way of sharingresources and expertise, she noted.

In addition to the task force work, Ms. Kerns said, thedepartment "will be releasing our own individual report inSeptember or October, publishing our top to bottom audit of theState Fund."

Asked if the State Fund is fiscally sound, she responded, "Itdoes not appear it has been compromised. It's early [and] we arelooking at all aspects of operational structure and managementstructure and were also conducting a financial operationsreview."

SCIF provides its coverage for about 220,000 employers.