BILL ANALYSIS Ó
AB 335
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Date of Hearing: March 30, 2011
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 335 (Solorio) - As Introduced: February 10, 2011
SUBJECT : Workers' compensation: notices
SUMMARY : Requires the Administrative Director (AD) of the
Division of Workers' Compensation (DWC) to adopt, by regulation,
new notices and rules governing notices that are provided to
employees in the workers' compensation system. Specifically,
this bill :
1)Adds a requirement that the AD consult with the Commission on
Health and Safety and Workers' Compensation (CHSWC) in
connection with the rules governing providing notice to
employees about their rights under the workers' compensation
laws.
2)Expands the subjects that benefit notices shall include by
adding notice of supplemental job displacement benefits,
rights concerning selection of a personal treating physician,
requests for comprehensive medical evaluation, and offers of
regular, modified, or alternative work.
3)Requires the AD, in consultation with the CHSWC, to prepare,
and make readily available, including on the DWC website, a
booklet written in plain language that describes the overall
workers' compensation claims system, including the rights and
obligations of employees and employers at every stage of a
claim when a notice is required.
4)Adds a requirement that each notice prescribed by the AD as
required by law be in plain language, and include a citation
to the place in the booklet that discusses relevant
information.
5)Makes a number of conforming changes, such as deletion of
specific statutory language that certain notices must contain,
that have the effect of implementing the above requirements.
EXISTING LAW :
1)Directs the AD to adopt regulations governing service on
AB 335
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employees of notices required by the workers' compensation
laws.
2)Contains numerous statutorily prescribed statements that must
be used in certain notices, and contains requirements that
other notices without prescribed terminology be provided at
specified times to injured workers.
FISCAL EFFECT : Undetermined
COMMENTS :
1)Purpose : This bill was introduced at the suggestion of the
California Coalition on Workers' Compensation in order to
implement the recommendations made by the CHSWC in its July,
2010 "Report on Benefit Notices and Recommendations." The
language in the bill reflects the language recommended in that
report.
2)Background : In response to widespread concern that the system
of notifying injured workers of their rights, and how to
navigate, in the workers' compensation system was failing, the
CHSWC undertook an evaluation of the efficacy of the notices
that are provided to injured workers. This evaluation
included working with all relevant stakeholders to determine
what the goals of these notices should be, whether the goals
were being met, and if not, what could be done to improve the
situation.
The CHSWC concluded that there is a consensus that the notices
are:
Too voluminous (wordy, redundant, and frequently
contain information that is not needed by the recipient).
Complex, overwhelming, and frightening (e.g., "You
may lose important rights unless you . . . .").
Difficult to understand (Indirect terminology,
overly legalistic), and at times misleading.
Not standardized.
Difficult for employers to keep updated.
In addition, the CHSWC found the it was difficult for injured
workers to find information on their own, or obtain answers to
questions. As a result, in addition to improving the quality
and effectiveness of the notices, the Commission recommended
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that a plain language booklet be made readily available on the
Division's website and through other means of delivery.
1)Support : Supporters argue that AB 335 is a common sense
solution to a problem that is acknowledged by all
stakeholders.
REGISTERED SUPPORT / OPPOSITION :
Support
Acclamation Insurance Management Services (AIMS)
Allied Managed Care (AMC)
Association of California Insurance Companies (ACIC)
CalChamber
California Association of Joint Powers Authorities (CAJPA)
California Coalition on Workers' Compensation
California Grocers Association (CGA)
California Labor Federation
California Manufactures and Technology Association (CMTA)
California Nurses Association (CNA)
CSAC-EIA
Pacific Compensation Insurance Company
Opposition
None received.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086