The California governor's office said a new legislative measure expected to gain passage shortly should end a regulatory dispute that led to court action between the State Compensation Insurance Fund and state insurance department.
Asked about the legal battle, Daryl Ng, a spokesman for Republican Gov. Arnold Schwarzenegger, said it was anticipated that the legislation worked out with Democratic Insurance Commissioner John Garamendi would end his conflict with the quasi-public workers' comp insurer.
The legal tilt has been going on for two years over whether or not the commissioner has the authority to regulate SCIF.
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