BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1168 (Pan)
Hearing Date: 8/15/2011 Amended: 7/1/2011
Consultant: Bob Franzoia Policy Vote: L&IR 6-0
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BILL SUMMARY: AB 1168 would require, by January 1, 2013, the
Administrative Director (AD) of the Division of Workers'
Compensation to adopt a fee schedule that establishes reasonable
hourly fees paid for services provided by vocational experts.
This bill would prohibit a vocational expert from being paid,
and would prohibit the Workers' Compensation Appeals Board
(board) from allowing, vocational expert fees in excess of those
that are reasonable, actual, and necessary.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Adoption of vocational Up to $75 Up to $75 Special*
services fee schedule
* Workers' Compensation Administrative Revolving Fund
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STAFF COMMENTS: Existing law establishes a workers' compensation
system that provides benefits to an employee who suffers from an
injury or illness that arises out of and in the course of
employment, regardless of fault.
Existing law requires the AD to adopt and periodically revise an
Official Medical Fee Schedule to establish reasonable maximum
medical fees for medical services, including physician services
and medical-legal expenses.
Existing law is silent as to the fees for vocational experts.
Prior to 2004, the Labor Code contained vocational
rehabilitation services provided by vocational counselors. A
vocational expert might perform a vocational evaluation,
evaluate vocational feasibility, counsel and research vocational
plan development. These services were covered by a fee schedule
and their services were cost contained through statute. As part
AB 1168 (Pan)
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of the reforms contained in Chapter 34/2004 (SB 899,
Poochigian), the vocational rehabilitation structure was altered
and sunset in 2009. Various medical professionals include
physicians, qualified medical examiners, agreed medical
examiners, chiropractors, and physical therapists have their
fees capped through a fee schedule.
This bill seeks to provide a fee schedule to set reasonable
hourly fees when a vocational expert is used by either an
injured worker or an employer and would bring fee practices for
vocational experts in line with other workers' compensation
services.
As noted, there is no fee schedule for services provided by
vocational experts. Case law provides that the board has
discretion to allow an applicant's vocational rehabilitation
expert's costs under Labor Code 5811 when the parties are
presenting evidence on and/or in rebuttal to a permanent
disability rating under the permanent disability rating schedule
as long as the person qualifies as an expert. Determining
maximum fees can be relatively straightforward. Determining
reasonable, actual and necessary costs paid for vocational
services can be expected to generate significant public input
and the AD's determination likely will be litigated.
While the setting of fee schedules is exempt from the
Administrative Procedures Act and will serve to expedite the
process, the AD will likely need the 12 months provided by the
bill to adopt the schedule.
Staff notes the Workers' Compensation Administrative Revolving
Fund has a projected 2011-12 fund balance of $91 million.