BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1746| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1746 Author: Alejo (D) Amended: 3/20/14 in Assembly Vote: 21 SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 5-0, 6/11/14 AYES: Hueso, Wyland, Leno, Padilla, Mitchell SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 78-0, 5/15/14 (Consent) - See last page for vote SUBJECT : Workers compensation: proceedings: expedited hearings SOURCE : Author DIGEST : This bill requires the Administrative Director of the Division of Workers Compensation (DWC) to include injured workers who are or were employed by an illegally uninsured employer on the priority conference calendar when the issues in dispute are employment or injury arising out of employment or in the course of employment. ANALYSIS : Existing law: 1. Establishes a workers' compensation system that provides CONTINUED AB 1746 Page 2 benefits to an employee who suffers from an injury or illness that arises out of and in the course of employment, irrespective of fault. This system requires all employers to secure payment of benefits by either securing the consent of the Department of Industrial Relations (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. 2. Provides that medical, surgical, chiropractic, acupuncture, and hospital treatment, including nursing, medicines, medical and surgical supplies, crutches, and apparatuses, including orthotic and prosthetic devices and services, that is reasonably required to cure or relieve the injured worker from the effects of his/her injury shall be provided by the employer. 3. Provides that, if an employer fails to pay the compensation to an injured worker, the award, upon application by the injured worker or his/her beneficiaries, the compensation must be paid by the Director from the Uninsured Employers Benefits Trust Fund (UEBTF). The UEBTF is funded through surcharges on workers' compensation insurance policies. 4. Provides that, if an award is issued from the UEBTF, the amount of the award constitutes a liquidated damage against the illegally uninsured employer, which may be pursued by the Director of the DIR in the Superior Court of any county. 5. Requires the Administrative Director of the DWC to create a priority conference calendar for cases where the injured worker is represented by an attorney and the issues in dispute are employment or injury arising out of employment or in the course of employment. The conference must be conducted by a workers' compensation administrative law judge within 30 days after the declaration of readiness to proceed. This bill requires the Administrative Director of the DWC to include injured workers who are or were employed by an illegally uninsured employer on the priority conference calendar when the issues in dispute are employment or injury arising out of employment or in the course of employment. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes CONTINUED AB 1746 Page 3 Local: No SUPPORT : (Verified 6/24/14) AFSCME, AFL-CIO Association of California Healthcare Districts California Chamber of Commerce California Coalition on Workers' Compensation California Labor Federation, AFL-CIO California Professional Firefighters Pacific Compensation Insurance Company Rural County Representatives of California Salud Para La Gente The California Applicant Attorneys Association Watsonville Law Center Worksafe ARGUMENTS IN SUPPORT : Proponents argue that this bill is a necessary reform that will help some of the most vulnerable injured workers and assist California in its fight against the underground economy. Specifically, proponents argue that injured workers who work for illegally uninsured employers do not have the same access to medical care, as insurers are required by law to provide medical benefits in a timely manner with a significant pool of medical providers. As injured workers who work or worked for an illegally uninsured employer have none of these protections, this bill ensures that they receive an expedited hearing so that they can quickly receive the medical care they need. Additionally, proponents note that this bill allows for the rapid identification of illegally uninsured employers, giving California another important tool in the fight against the underground economy. ASSEMBLY FLOOR : 78-0, 5/15/14 AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, CONTINUED AB 1746 Page 4 Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins NO VOTE RECORDED: Mansoor, Vacancy PQ:d 6/24/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED