BILL NUMBER: AB 1177	CHAPTERED  09/05/01

	CHAPTER  252
	FILED WITH SECRETARY OF STATE  SEPTEMBER 5, 2001
	APPROVED BY GOVERNOR  SEPTEMBER 5, 2001
	PASSED THE ASSEMBLY  AUGUST 20, 2001
	PASSED THE SENATE  JULY 19, 2001
	AMENDED IN SENATE  JULY 17, 2001
	AMENDED IN SENATE  JULY 2, 2001
	AMENDED IN SENATE  JUNE 18, 2001

INTRODUCED BY   Assembly Member Calderon

                        FEBRUARY 23, 2001

   An act to add Sections 5307.11 and 5318 to the Labor Code,
relating to workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1177, Calderon.  Workers' compensation:  official medical fee
schedule.
   Existing law provides for administration of the workers'
compensation system by the Director of the Division of Workers'
Compensation of the Department of Industrial Relations, who is
referred to as the administrative director.
   This bill would authorize a health care provider or licensed
health facility and a contracting agent, employer, or carrier to
contract for reimbursement rates that are different from the official
medical fee schedule.  The bill would provide that the December 31,
2001 termination date contained in the California Code of Regulations
for specified regulations be extended until new regulations on the
medical fee schedule adopted by the administrative director become
effective.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 5307.11 is added to the Labor Code, to read:
   5307.11.  A health care provider or health facility licensed
pursuant to Section 1250 of the Health and Safety Code, and a
contracting agent, employer, or carrier may contract for
reimbursement rates different from those in the fee schedule adopted
and revised pursuant to Section 5307.1.  When a health care provider
or health facility licensed pursuant to Section 1250 of the Health
and Safety Code, and a contracting agent, employer, or carrier
contract for reimbursement rates different from those in the fee
schedule, the medical fee schedule for that health care provider or
health facility licensed pursuant to Section 1250 of the Health and
Safety Code shall not apply to the contracted reimbursement rates.
Except as provided in subdivision (b) of Section 5307.1, the official
medical fee schedule shall establish maximum reimbursement rates for
all medical services for injuries subject to this division provided
by a health care provider or health care facility licensed pursuant
to Section 1250 of the Health and Safety Code other than those
specified in contracts subject to this section.
  SEC. 2.  Section 5318 is added to the Labor Code, to read:
   5318.  Notwithstanding any other provision of law, the termination
date of December 31, 2001, provided in Section 9792.1 of Title 8 of
the California Code of Regulations shall be extended until the
effective date of new regulations adopted by the administrative
director, as required by Section 5307.1, providing for the biennial
review of the fee schedule for health care facilities.