Amended in Senate May 2, 2013

Amended in Senate March 19, 2013

Senate Bill No. 258

Introduced by Senator Lieu

February 13, 2013

An act to amend begin delete Section end delete begin insert Sections end insert 112 begin insert and 4903.8 end insert of the Labor Code, relating to workers’ compensation.

LEGISLATIVE COUNSEL’S DIGEST

SB 258, as amended, Lieu. Workers’ begin delete compensation: advertisements. end delete begin insert compensation. end insert

Existing law establishes the 7-member Workers’ Compensation Appeals Board, and provides that the members of the appeals board are appointed by the Governor with the advice and consent of the Senate. Existing law requires that 5 of the 7 members of the board be experienced attorneys admitted to practice in the State of California, and provides that the other 2 members need not be attorneys.

This bill would require that all 7 members of the board be experienced attorneys admitted to practice in the State of California.

begin insert

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 requires an order or award for payment of a lien for medical or hospital treatment, as specified, to be made for payment only to the person who was entitled to payment for the expenses for medical or hospital treatment at the time the expenses were incurred, and not to an assignee unless the person has ceased doing business in the capacity held at the time the expenses were incurred and has assigned all right, title, and interest in the remaining accounts receivable to the assignee.

end insert begin insert

This bill would authorize an assignment of that payment if the assignment was completed prior to January 1, 2013, or if it was required by a contract that became enforceable and irrevocable prior to January 1, 2013. The bill would state that this provision is declarative of existing law.

end insert

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 112 of the Labor Code is amended to
read:

112.  

(a) The members of the appeals board shall be appointed
by the Governor with the advice and consent of the Senate. The
term of office of the members appointed prior to January 1, 1990,
shall be four years, and the term of office of members appointed
on or after January 1, 1990, shall be six years and they shall hold
office until the appointment and qualification of their successors.

(b) All of the members of the appeals board shall be experienced
attorneys at law admitted to practice in the State of California. All
members shall be selected with due consideration of their judicial
temperament and abilities. Each member shall receive the salary
provided for by Chapter 6 (commencing with Section 11550) of
Part 1 of Division 3 of Title 2 of the Government Code.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 4903.8 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

4903.8.  

(a)  begin insert (1) end insert begin insert   end insert Any order or award for payment of a lien filed
pursuant to subdivision (b) of Section 4903 shall be made for
payment only to the person who was entitled to payment for the
expenses as provided in subdivision (b) of Section 4903 at the time
the expenses were incurred, and not to an assignee unless the
person has ceased doing business in the capacity held at the time
the expenses were incurred and has assigned all right, title, and
begin delete interests end delete begin insert interest end insert in the remaining accounts receivable to the
assignee.

begin insert

(2) Paragraph (1) does not apply to an assignment that was
completed prior to January 1, 2013, or that was required by a
contract that became enforceable and irrevocable prior to January
1, 2013. This paragraph is declarative of existing law.

end insert

(b) If there has been an assignment of a lien, either as an
assignment of all right, title, and interest in the accounts receivable
or as an assignment for collection, a true and correct copy of the
assignment shall be filed and served.

(1) If the lien is filed on or after January 1, 2013, and the
assignment occurs before the filing of the lien, the copy of the
assignment shall be served at the time the lien is filed.

(2) If the lien is filed on or after January 1, 2013, and the
assignment occurs after the filing of the lien, the copy of the
assignment shall be served within 20 days of the date of the
assignment.

(3) If the lien is filed before January 1, 2013, the copy of the
assignment shall be served by January 1, 2014, or with the filing
of a declaration of readiness or at the time of a lien hearing,
whichever is earliest.

(c) If there has been more than one assignment of the same
receivable or bill, the appeals board may set the matter for hearing
on whether the multiple assignments constitute bad-faith actions
or tactics that are frivolous, harassing, or intended to cause
unnecessary delay or expense. If so found by the appeals board,
appropriate sanctions, including costs and attorney’s fees, may be
awarded against the assignor, assignee, and their respective
attorneys.

(d) At the time of filing of a lien on or after January 1, 2013, or
in the case of a lien filed before January 1, 2013, at the earliest of
the filing of a declaration of readiness, a lien hearing, or January
1, 2014, supporting documentation shall be filed including one or
more declarations under penalty of perjury by a natural person or
persons competent to testify to the facts stated, declaring both of
the following:

(1) The services or products described in the bill for services
or products were actually provided to the injured employee.

(2) The billing statement attached to the lien truly and accurately
describes the services or products that were provided to the injured
employee.

(e) A lien submitted for filing on or after January 1, 2013, for
expenses provided in subdivision (b) of Section 4903, that does
not comply with the requirements of this section shall be deemed
to be invalid, whether or not accepted for filing by the appeals
board, and shall not operate to preserve or extend any time limit
for filing of the lien.

(f) This section shall take effect without regulatory action. The
appeals board and the administrative director may promulgate
regulations and forms for the implementation of this section.