BILL ANALYSIS                                                                                                                                                                                                    �






                 Senate Committee on Labor and Industrial Relations
                                 Ted W. Lieu, Chair

          Date of Hearing: May 8, 2013                 2013-2014 Regular  
          Session                              
          Consultant: Deanna D. Ping                   Fiscal:No
                                                       Urgency: No
          
                                   Bill No: SB 375
                 Author: Committee on Labor and Industrial Relations
                         As Introduced/Amended: May 2, 2013
          

                                       SUBJECT
          
                            Workers' compensation: liens


                                      KEY ISSUE
          
          Should the legislature approve a technical code reference  
          amendment to correctly reference medical information for lien  
          claim filing requirement exemptions? 
           

                                      ANALYSIS
          
           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,  
          irrespective of fault.  This system requires all employers to  
          secure payment of benefits by either securing the consent of the  
          Department of Industrial Relations to self-insure or by securing  
          insurance against liability from an insurance company duly  
          authorized by the state.
           
          Existing law  states that the workers compensation appeals board  
          may determine, and allow as liens against any sum to be paid as  
          compensation, any amount determined set forth in the statute  
          including a reasonable attorney's fee, the reasonable expense  
          incurred by or on behalf of the injured employee and the  
          reasonable value of the living expenses of an injured employee.
          (Labor Code �4903)

           Existing law  states that a lien claim for expenses as provided  
          above shall not be filed after three years from the date the  









          services were provided, nor more than 18 months after the date  
          the services were provided, if the services were provided on or  
          after July 1, 2013. 
          (Labor Code �4903.5)

           Existing law  states that with the exception of a lien for  
          services provided by a physician, no lien claimant shall be  
          entitled to any medical information, as defined by Section 50.05  
          of the Civil Code, about an injured worker without prior written  
          approval of the appeals board. 
          (Labor Code 4903.6)

           Existing law  within Civil Code does not have a Section 50.05. 

           Existing law  defines medical information as any individually  
          identifiable information, in electronic or physical form, in  
          possession of or derived from a provider of health care, health  
          care service plan, pharmaceutical company, or contractor  
          regarding a patient's medical history, mental or physical  
          condition, or treatment. (Civil Code �56.05) 

           
          This bill  changes the code section referencing the definition of  
          "medical information" from Section 50.05 of the Civil Code which  
          does not exist to Section 56.05 which is the actual code section  
          defining this information. 


                                      COMMENTS

          
          1.  Need for this bill?

            SB 375 seeks to clarify existing lien claim filing and  
            exemptions language. 

            Currently this section of the Labor Code references an  
            incorrect Civil Code section that does not exist. This  
            technical change would provide clarity as to the definition of  
            medical information by citing the correct civil code  
            definition found under Section 56.05. 

          Hearing Date:  May 8, 2013                               SB 375  
          Consultant: Deanna D. Ping                               Page 2

          Senate Committee on Labor and Industrial Relations 
          








          2.  Proponent Arguments  :
            
            Proponents argue that SB 375 provides an important clean-up  
            amendment to lien claim filing exemptions for workers'  
            compensation. Proponents contend that although the change is  
            technical and seems non-substantive, it corrects an important  
            error currently in code by referencing the correct definition  
            of medical information currently in Civil Code. 

          3.  Opponent Arguments  :

            None on file. 

          4.  Prior Legislation :

            SB 863 (DeLeon), Statutes of 2012, Chapter 363, significantly  
            restructured the manner in which workers' compensation liens  
            are filed.


                                       SUPPORT
          
          None on file. 
          
                                     OPPOSITION
          
          None on file. 














          Hearing Date:  May 8, 2013                               SB 375  
          Consultant: Deanna D. Ping                               Page 3

          Senate Committee on Labor and Industrial Relations