BILL NUMBER: AB 801	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Duvall

                        FEBRUARY 26, 2009

   An act to amend Section 138.7 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 801, as introduced, Duvall. Workers' compensation: individual
identifiable information.
   Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an employee for injuries
sustained in the course of his or her employment.
   Existing law provides that a person or public or private entity
who is not a party to a claim for workers' compensation benefits may
not obtain individually identifiable information, as defined, that is
obtained or maintained by the Division of Workers' Compensation of
the Department of Industrial Relations on that claim, except as
specified.
   This bill would authorize the Department of Insurance to use
individually identifiable information for purposes of investigating
and prosecuting insurance fraud.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 138.7 of the Labor Code is amended to read:
   138.7.  (a) Except as expressly permitted in subdivision (b), a
person or public or private entity not a party to a claim for workers'
compensation benefits  may   shall  not
obtain individually identifiable information obtained or maintained
by the division on that claim. For purposes of this section,
"individually identifiable information" means any data concerning an
injury or claim that is linked to a uniquely identifiable employee,
employer, claims administrator, or any other person or entity.
   (b) (1) The administrative director, or a statistical agent
designated by the administrative director, may use individually
identifiable information for purposes of creating and maintaining the
workers' compensation information system as specified in Section
138.6.
   (2) The State Department of Health Services may use individually
identifiable information for purposes of establishing and maintaining
a program on occupational health and occupational disease prevention
as specified in Section 105175 of the Health and Safety Code.
   (3) (A) Individually identifiable information may be used by the
Division of Workers' Compensation, the Division of Occupational
Safety and Health, and the Division of Labor Statistics and Research
as necessary to carry out their duties. The administrative director
shall adopt regulations governing the access to the information
described in this subdivision by these divisions. Any regulations
adopted pursuant to this subdivision shall set forth the specific
uses for which this information may be obtained.
   (B) Individually identifiable information maintained in the
workers' compensation information system and the Division of Workers'
Compensation may be used by researchers employed by or under
contract to the Commission on Health and Safety and Workers'
Compensation as necessary to carry out the commission's research. The
administrative director shall adopt regulations governing the access
to the information described in this subdivision by commission
researchers. These regulations shall set forth the specific uses for
which this information may be obtained and include provisions
guaranteeing the confidentiality of individually identifiable
information. Individually identifiable information obtained under
this subdivision shall not be disclosed to commission members. No
individually identifiable information obtained by researchers under
contract to the commission pursuant to this subparagraph may be
disclosed to any other person or entity, public or private, for a use
other than that research project for which the information was
obtained. Within a reasonable period of time after the research for
which the information was obtained has been completed, the data
collected shall be modified in a manner so that the subjects cannot
be identified, directly or through identifiers linked to the
subjects.
   (4) The administrative director shall adopt regulations allowing
reasonable access to individually identifiable information by other
persons or public or private entities for the purpose of bona fide
statistical research. This research shall not divulge individually
identifiable information concerning a particular employee, employer,
claims administrator, or any other person or entity. The regulations
adopted pursuant to this paragraph shall include provisions
guaranteeing the confidentiality of individually identifiable
information. Within a reasonable period of time after the research
for which the information was obtained has been completed, the data
collected shall be modified in a manner so that the subjects cannot
be identified, directly or through identifiers linked to the
subjects. 
   (5) The Department of Insurance may use individually identifiable
information for purposes of investigating and prosecuting insurance
fraud.  
   (5) 
    (6)  This section shall not operate to exempt from
disclosure any information that is considered to be a public record
pursuant to the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) contained in an individual's file once an
application for adjudication has been filed pursuant to Section
5501.5.
   However, individually identifiable information shall not be
provided to any person or public or private entity who is not a party
to the claim unless that person identifies himself or herself or
that public or private entity identifies itself and states the reason
for making the request. The administrative director may require the
person or public or private entity making the request to produce
information to verify that the name and address of the requester is
valid and correct. If the purpose of the request is related to
preemployment screening, the administrative director shall notify the
person about whom the information is requested that the information
was provided and shall include the following in 12-point type:
   "IT MAY BE A VIOLATION OF FEDERAL AND STATE LAW TO DISCRIMINATE
AGAINST A JOB APPLICANT BECAUSE THE APPLICANT HAS FILED A CLAIM FOR
WORKERS' COMPENSATION BENEFITS."
   Any residence address is confidential and shall not be disclosed
to any person or public or private entity except to a party to the
claim, a law enforcement agency, an office of a district attorney,
any person for a journalistic purpose, or other governmental agency.
   Nothing in this paragraph shall be construed to prohibit the use
of individually identifiable information for purposes of identifying
bona fide lien claimants.
   (c) Except as provided in subdivision (b), individually
identifiable information obtained by the division is privileged and
is not subject to subpoena in a civil proceeding unless, after
reasonable notice to the division and a hearing, a court determines
that the public interest and the intent of this section will not be
jeopardized by disclosure of the information. This section shall not
operate to restrict access to information by any law enforcement
agency or district attorney's office or to limit admissibility of
that information in a criminal proceeding.
   (d) It shall be unlawful for any person who has received
individually identifiable information from the division pursuant to
this section to provide that information to any person who is not
entitled to it under this section.