You work for the State of California? Your WC carrier is State Compensation Insurance Fund? No, that's not true. A judge can issue sanctions against them pursuant to Labor Code 5813.
Sanctions are tricky. Best if you are represented by competent counsel. Lots of great WC attorneys in The City. Find one here at www.avvo.com or at www.caaa.org. CAAA is the association or attorneys here in CA who represent injured workers.
No. Sanctions are outlined in LC 5813 and apply to frivolous conduct before the WCAB. SCIF, which is a quasi-governmental agency is subject to the same sanction rules as a carrier, lawyer, lien claimant or other persons appearing before the WCAB.