BILL NUMBER: SB 1528	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 27, 2012
	AMENDED IN SENATE  MAY 15, 2012
	AMENDED IN SENATE  APRIL 30, 2012

INTRODUCED BY   Senator Steinberg

                        FEBRUARY 24, 2012

   An act to add Section 3284 to the Civil Code,   and to amend
Sections 23004.1 and 23004.2 of the Government Code,   relating
to  damages   health services  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1528, as amended, Steinberg.  Damages: medical
services.   Health services. 
   Existing law establishes, as a general rule, that compensation is
the relief or remedy provided by law for a violation of private
rights. Existing law provides that a person suffering detriment from
the unlawful act or omission of another may recover damages from the
person at fault.
   This bill would express the intent of the Legislature to establish
a framework for compensating persons with injuries due to the fault
of 3rd parties. The bill would also specify that when a person is
compensated for an injury due to the fault of another, the lien
rights and other rights of the parties provided in specified
provisions shall be maintained. 
   Existing law provides procedures under which, in any case in which
a 3rd person is liable to pay for health services provided by a
county to an injured or diseased person, the county may recover from
that 3rd person or be subrogated to any right or claim that the
injured or diseased person, including identified parties in interest,
have against that 3rd person. Under these procedures, the county's
right of action abates during the pendency of an action brought for
damages against the 3rd person by the injured or diseased person and
continues as a first lien against any judgment recovered by the
injured or diseased person.  
   This bill would provide that the county's right of action would
continue under this provision as a first lien against any judgment,
settlement, compromise, arbitration award, mediation settlement, or
other recovery for past medical expenses obtained by the injured or
diseased person. The bill would make that lien subject to any liens
for attorney's fees and costs incurred by the person or person's
representative, estate, or survivors.  
   Existing law authorizes a county to compromise, or settle and
execute a release of, any claim, as provided. Existing law also
authorizes a county to waive that claim, as provided.  
   This bill would require specified factors to be considered when a
county is requested to compromise or waive any claim, as provided.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 3284 is added to the Civil Code, to read:
   3284.  (a) It is the intent of the Legislature to establish a
framework for compensating persons with injuries due to the fault of
third parties.
   (b) When a person is compensated for an injury due to the fault of
another, the lien rights provided for in Sections 3040 and 3045.1 of
this code and the rights of the parties under Section 3333.1 of this
code or of public entities under Section 985 of the Government Code
shall be maintained.
   SEC. 2.    Section 23004.1 of the 
Government Code   is amended to read: 
   23004.1.  (a) Subject to  the provisions of 
Section 23004.3, in any case in which the county is authorized or
required by law to furnish hospital, medical, surgical, or dental
care and treatment, including prostheses and medical appliances, to a
person who is injured or suffers a disease, under circumstances
creating a tort liability upon some third person to pay damages
therefor, the county shall have a right to recover from  said
  that  third person the reasonable value of the
care and treatment so furnished or to be furnished, or shall, as to
this right, be subrogated to any right or claim that the injured or
diseased person, his  or her  guardian, personal
representative, estate, or survivors has against  such
  that  third person to the extent of the
reasonable value of the care and treatment so furnished or to be
furnished.
   (b) The county may, to enforce  such  rights 
established under subdivision (a)  , institute and prosecute
legal proceedings against the third person who is liable for the
injury or disease in the appropriate court, either in its own name or
in the name of the injured person, his guardian, personal
representative, estate, or survivors.  Such  
This  action shall be commenced within the period prescribed in
Section 340 of the Code of Civil Procedure. In the event that the
injured person, his  or her  guardian, personal
representative, estate, survivors, or  either  
any  of them brings an action for damages against the third
person who is liable for the injury or disease, the county's right of
action shall abate during the pendency of  such 
 that  action, and continue as a first lien against any
judgment  recovered   , settlement, compromise,
arbitration award, mediation settlement, or other recovery for past
medical expenses obtained  by the injured or diseased person,
his  or her  guardian, personal representative, estate, or
survivors, against the third person who is liable for the injury or
disease, to the extent of the reasonable value of the care and
treatment so furnished or to be furnished.  Consistent with the
common fund doctrine, the lien is subject to any liens for attorney's
fees and costs incurred by the person or person's  
representative, estate, or survivors.   When 
 If  the third person who is liable is insured, the county
shall notify the third person's insurer, when known to the county, in
writing of the lien within 30 days following the filing of the
action by the injured or diseased person, his  or her 
guardian, personal representative, estate, or survivors, against the
third person who is liable for the injury or disease  ;
provided, however, that   . However, the  failure
to so notify the insurer shall not prejudice the claim or cause of
action of the injured or diseased person, his  or her 
guardian, personal representative, estate, or survivors, or the
county.
   SEC. 3.    Section 23004.2 of the 
Government Code   is amended to read: 
   23004.2.  (a) The county may (1) compromise, or settle and execute
a release of, any claim which the county has by virtue of the rights
established by Section 23004.1; or (2) waive any such claim, in
whole or in part, for the convenience of the county, or if the
governing body of the county determines that collection would result
in undue hardship upon the person who suffered the injury or disease
resulting in care or treatment described in Section 23004.1. 
   (b) If a request is made to compromise or waive any claim
established by Section 23004.1, the following factors shall be
considered:  
   (1) The total value of the damages suffered by the injured person
or the survivors in comparison to the amount actually recovered by
way of judgment, settlement, compromise, arbitration award, or
mediation settlement.  
   (2) Other liens being asserted against the recovery that would
reduce the final recovery to the person or survivors and whether or
not other lienholders have agreed to compromise or waive their liens.
 
   (3) Whether or not the claim established by Section 23004.1 would
exceed 50 percent of the moneys ultimately recovered by the person or
survivor under any final judgment, compromise, or settlement
agreement after paying a prior lien.  
   (4) Any other factors that would be just, fair, and equitable to
consider when presented with a request to compromise or waive a claim
established by Section 23004.1.  
   (b) 
    (c)  No action taken by the county in connection with
the rights afforded under Section 23004.1 or this section shall be a
bar to any action upon the claim or cause of action of the injured or
diseased person, his  or her  guardian, personal
representative, estate, or survivors against the third person who is
liable for the injury or disease, or shall operate to deny to the
injured person the recovery for that portion of his  or her 
damage not covered hereunder.