BILL ANALYSIS Ó
SB 258
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Date of Hearing: August 7, 2013
ASSEMBLY COMMITTEE ON INSURANCE
Henry T. Perea, Chair
SB 258 (Lieu) - As Amended: May 2, 2013
SENATE VOTE : 25-11
SUBJECT : Workers' compensation
SUMMARY : Clarifies that recently enacted limitations on
assignment of liens apply only to assignments occurring on or
after January 1, 2013, and requires that Workers' Compensation
Appeals Board (WCAB) members be attorneys. Specifically, this
bill :
1)Provides that all seven members of the WCAB must be
experienced attorneys admitted to practice in the State of
California
2)Clarifies that limitations on assignment of medical liens
apply only to assignments made on or after January 1, 2013.
EXISTING LAW :
1)Establishes the WCAB to administer the workers' compensation
dispute resolution system. The WCAB oversees the trial court
administrative law judges (ALJs) who hear most contested
matters, but also has the discretion to re-hear cases on
"reconsideration" after an ALJ has ruled on a matter.
2)Provides that five of the seven Board members, all of whom are
appointed by the Governor, must be attorneys, but that the
remaining 2 Board members need not be attorneys.
3)Authorizes a medical provider to file a lien in order to
secure payment of a disputed billing in the workers'
compensation system, but limits the ability of a lien claimant
to assign the rights to the lien to a third party to
circumstances where the lien claimant is retiring or going out
of business.
FISCAL EFFECT : Unknown.
COMMENTS :
SB 258
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1)Purpose . According to the author, the complexity involved in
the adjudication of workers' compensation cases is much
greater now than when the WCAB was established in 1965.
Evolving case law and increasing complexity of the statutes
governing workers' compensation makes it unlikely that
non-attorneys could effectively serve. The author points out
that Governor's have recognized this reality, as currently all
seven Board members are attorneys, and this has been the case
for a number of years. This change, therefore, is little more
than conforming statute to reality. With respect to the liens
issue, the bill is merely clarifying the intent of SB 863 (De
Leon), Statutes 2012, Chapter 863.
2)Lien assignment . SB 863, among a broad range of reforms to
the workers' compensation system, restricted the assignability
of medical liens. Evidence suggested that a cottage industry
had developed whereby questionable services or billings would
be encouraged by third parties, who would immediately purchase
the lien rights from the providers of these services. In
response to these practices, the Legislature adopted
limitations on the assignability of medical liens to
discourage the practices that were considered costly to
employers with little if any benefits to injured workers.
However, the bill did not clearly state that the new
limitations were to apply only to liens assigned after the
bill's effective date. SB 258 clarifies this uncertainty.
3)WCAB . The WCAB is a quasi-judicial body, part appellate
court, and part trial court. When the WCAB issues en banc
decisions, it is acting in virtually all respects as an
appellate court by issuing precedential decisions. However,
when it exercises its discretion to grant "reconsideration" of
a decision of an ALJ, it is acting as a trial court, and can
make its independent judgment on the evidence. In either
circumstance, it is acting as a court, and just like superior
and appellate court judges must be attorneys, it is
appropriate that WCAB Board members also be attorneys.
Notably, the ALJs over whom the WCAB has authority must be
attorneys.
REGISTERED SUPPORT / OPPOSITION :
Support
SB 258
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Voters Injured at Work
Opposition
None received.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086