In that decision, the Court held that the Employment Development Department's (EDD's) lien is an obligation to a state because the EDD is a department of the State of California. Hence, its lien claim is not "covered claim" that CIGA is required to pay. The Court reversed the Appeals Board's decision of July 15, 2002 and remanded the matter here for further proceedings in accordance with the Court's opinion. The California Insurance Guarantee Association is not required to make payment to the Employment Development Department. "WORKERS' COMPENSATION APPEALS BOARD (EN BANC) MERLE C. RABINE, Chairman WILLIAM K. O'BRIEN, Commissioner JAMES C. CUNEO, Commissioner FRANK M. BRASS, Commissioner JANICE J. MURRAY, Commissioner RONNIE G. CAPLANE, Commissioner DATED AND FILED IN SAN FRANCISCO, CALIFORNIA July 27, 2004 ---------------------------- FOOTNOTES .

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