BILL ANALYSIS
AB 483
Page 1
ASSEMBLY THIRD READING
AB 483 (Buchanan)
As Introduced February 24, 2009
Majority vote
INSURANCE 10-0 JUDICIARY 10-0
-----------------------------------------------------------------
|Ayes:|Coto, Garrick, Blakeslee, |Ayes:|Feuer, Tran, Brownley, |
| |Charles Calderon, Carter, | |Evans, Jones, Knight, |
| |Feuer, Hayashi, Nava, | |Krekorian, Lieu, Monning, |
| |Niello, Torres | |Nielsen |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
APPROPRIATIONS 16-0
-----------------------------------------------------------------
|Ayes:|De Leon, Nielsen, | | |
| |Ammiano, | | |
| |Charles Calderon, Davis, | | |
| |Duvall, Krekorian, Hall, | | |
| |Harkey, Miller, | | |
| |John A. Perez, Price, | | |
| |Skinner, Solorio, Audra | | |
| |Strickland, Torlakson | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : Requires the Workers' Compensation Insurance Rating
Bureau (WCIRB) to establish an Internet Web site that identifies
if employers are insured for workers' compensation.
Specifically, this bill :
1)Requires a licensed rating organization to establish and
maintain an Internet website for the purpose of assisting
people to determine whether an employer is insured for
workers' compensation. The only licensed rating organization
in this regard is the WCIRB.
2)Specifies that this Internet Web site shall be established and
maintained in accordance with regulations adopted by the
Insurance Commissioner (IC) after notice and hearing. The
regulations shall be adopted by January 1, 2011, and the
AB 483
Page 2
website will become operative no later than 180 days after the
effective date of the regulations.
3)Specifies that the Internet Web site shall:
a) Permit a person to ask a question about coverage
information on a specified employer;
b) Permit the question to specify an employer, using the
name, address, or other identifying information of the
employer including the employer's federal identification
number, as may be provided by regulations adopted by the
IC;
c) In response to the question, provide the name of the
workers' compensation insurer or insurers for the employer
on the date of the query according to the most recent
information available, and provide a contact address for
the insurer or by providing a hypertext link to insurer
information available on the California Department of
Insurance's (CDI) Internet Web site;
d) Be accessible for inquiries without charge, provided the
website is used for intended purposes;
e) Contain a hypertext link to the California Department of
Industrial Relations' Internet Web site for the purpose of
locating employers who may be self-insured; and,
f) Include a disclaimer stating that the search results may
not reflect the most recent changes in information,
including a statement that the failure of an employer to
appear on the website does not mean that the employer does
not have insurance.
4)Provides that the rating organization shall not be required to
disclose on the website any policy numbers, inception or
expiration dates, or confidential information, as defined by
the IC.
5)Specifies that the regulations shall specify a method by which
an employer may dispute, through the rating organization or
the employer's insurance company, the accuracy of the
information displayed on the Internet Web site.
AB 483
Page 3
6)Provides that no rating organization, member of a rating
organization when acting within their capacity as a member, or
employee shall be liable to any person for injury or damages
caused by the good faith disclosure of information pursuant to
this legislation.
7)Provides that this legislation shall not be construed to
create liability except as provided in this section, nor as a
legislative recognition that, except for the enactment of this
section, a liability would exist.
8)Specifies that nothing in this legislation shall be construed
as limiting the authority of a rating organization to disclose
information contained in its records to others.
EXISTING LAW :
1)Requires all employers to either have a policy of workers'
compensation insurance or be lawfully self-insured.
2)Allows enforcement agencies access to various elements of data
in order to investigate and enforce the requirements that
employers be covered, but generally does not make this data
available to the public.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor costs to CDI to adopt regulations. The costs
incurred by the Workers' Compensation Insurance Rating Bureau
are not state costs, and are funded by its member insurers.
COMMENTS :
1)According to the author's office, current law makes workers'
compensation coverage information difficult to obtain and many
employers either do not know or will not provide this
information to workers. Workers can only receive this
information if they request it through writing or e-mail from
the WCIRB. According to the author, this bill makes available
website information on the coverage status of employers,
protects workers from employers without workers' compensation
coverage, and protects insured employers from competitive
disadvantages by uninsured employers. The author further
states that the state could save money by handling fewer
AB 483
Page 4
inquiries because the information would be made available over
the Internet.
2)The California Labor Federation, AFL-CIO, which is the sponsor
of the bill, states that 33 other states have online proof of
workers' compensation coverage databases in use. This
federation also notes that California's Contractors State
Licensing Board also provides similar information in a
searchable public format. Creation of a searchable database
allows employees to identify their employer's insurance
company and enables them to file an injury claim directly with
the insurer. It also allows a prospective employee to confirm
that an employer has coverage before accepting a position.
Finally, supporters argue that a searchable website would help
state agencies enforce the requirement that all employers
carry workers' compensation insurance.
3)In the 2005-06 Session, similar legislation, AB 1883 (De La
Torre) was approved by the Legislature but vetoed by the
Governor. Last year the Legislature considered another
similar measure, AB 507 (De La Torre), which was approved by
the Legislature but vetoed by the Governor.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086
FN: 0000769