Impact of losing self-insured status in California?
Because of the California Senate Bill 863 - signed Sept. 2012 - BBSI will lose its certificate of consent to self-insure in California not later than January 2015. What impact does this have on BBSI's business model? Wasn't the self-insured status the main reason for their competitive rates in California?
Not sure about that.
See 10-K: "The Company is considering the possibility of licensing Ecole as an insurer in California. One or more of these potential alternatives could require us to increase the capitalization of our wholly owned fully licensed insurance subsidiary, Ecole, increase the amount of restricted cash and investments on our consolidated balance sheet, increase our borrowing through our principal Bank, or obtain additional funding from other sources."