BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 375
          Author:   Senate Labor and Industrial Relations Committee
          Amended:  5/2/13
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE  :  5-0, 5/8/13
          AYES:  Lieu, Wyland, Leno, Padilla, Yee


           SUBJECT  :    Workers compensation:  liens

           SOURCE  :     Author


           DIGEST  :    This bill corrects an erroneous cross-reference with  
          regard to whether or not a lien claimant is entitled to medical  
          information, as defined.

           ANALYSIS  :    

          Existing law:

          1. 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.

          2. States that the workers compensation appeals board may  
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             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.

          3. 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. 

          5. 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. 

          6. 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 Section 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
           
          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. 

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







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          filed.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No



          PQ:d  5/9/13   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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