BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 899| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ IN CONFERENCE Bill No: SB 899 Author: Poochigian (R) Amended: 7/14/03 Vote: 21 SENATE LABOR & IND. RELATIONS COMMITTEE : 7-0, 4/23/03 AYES: Alarcon, Oller, Dunn, Figueroa, Kuehl, McClintock, Romero ABSENT/NO VOTE RECORDED: Margett SENATE FLOOR : 36-1, 6/4/03 AYES: Ackerman, Alarcon, Alpert, Ashburn, Battin, Bowen, Brulte, Burton, Cedillo, Chesbro, Denham, Ducheny, Dunn, Escutia, Figueroa, Florez, Hollingsworth, Karnette, Knight, Kuehl, Machado, Margett, McClintock, McPherson, Murray, Oller, Ortiz, Perata, Poochigian, Romero, Scott, Sher, Soto, Speier, Torlakson, Vincent NOES: Aanestad ABSENT/NO VOTE RECORDED: Johnson, Morrow, Vasconcellos ASSEMBLY FLOOR : 78-0, 7/17/03 (Passed on Consent) - See last page for vote SUBJECT : Workers' compensation: physician referral SOURCE : California Chamber of Commerce DIGEST : This bill states the intent of the Legislature to improve the workers' compensation system by promoting CONTINUED SB 899 Page 2 the efficient delivery of high quality appropriate medical care. Assembly amendments delete the prior version. As it left the Senate, the bill prohibited a physician from referring a person for outpatient surgery purposes if the physician or his or her immediate family has a financial interest with the person or in the entity that receives the referral. ANALYSIS : Workers' compensation, implemented in California in 1913, is a no-fault system, entitling workers to compensation for illness or injury arising out of and in the course of work duties, regardless of the blame which might otherwise be placed on the employer or the employee. The workers' compensation system is premised on a bargain between employers and employees: employees are supposed to receive benefits for on-the-job injuries, and in return, the benefits are the exclusive remedy for injured employees against their employer, even when the employer negligently caused the injury. There are five basic types of workers' compensation benefits available, depending on the nature and severity of the worker's injury: (1) medical care; (2) temporary disability benefits; (3) permanent disability; (4) vocational rehabilitation services; and, (5) death benefits. This bill states that it is the intent of the Legislature to improve the workers' compensation system by promoting the efficient delivery of high quality appropriate medical care. Conference Committee : While there is agreement among the parties that the system is in need of repair, what remains subject for debate is what the real systemic problems are and how best to address them without diminishing the arguably meager benefits injured workers receive in this state. There are 20 workers' compensation measures, which have passed out of their houses of origin this session. These SB 899 Page 3 bills cover such complex and varied subject matter areas as medical fee scheduling, utilization and insurance market regulation. With the agreement of Senate and Assembly Leadership, the Chairs of the Senate Labor and Industrial Relations Committee and the Assembly Committee on Insurance, and the authors of this session's workers' compensation legislation, all workers' compensation bills will be submitted to conference committee to ensure comprehensive workers' compensation reform. To that end, all such workers' compensation bills will be amended to reflect the same intent language prior to submission to conference. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No ASSEMBLY FLOOR : AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh, Calderon, Campbell, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz, Dutra, Dutton, Frommer, Garcia, Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley Horton, Houston, Jackson, Keene, Kehoe, Kortez, La Malfa, La Suer, Laird, Leno, Leslie, Levine, Lieber, Liu, Longville, Lowenthal, Maddox, Maldonado, Matthews, Maze, McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nakano, Nation, Negrete Mcleod, Nunez, Oropeza, Pacheco, Parra, Pavley, Plescia, Reyes, Richman, Ridley-Thomas, Runner, Salinas, Samuelian, Simitian, Spitzer, Steinberg, Strickland, Vargas, Wiggins, Wolk, Wyland, Yee, Wesson NC:sl 7/22/03 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****