BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 375
                                                                  Page  1

          Date of Hearing:   August 7, 2013

                           ASSEMBLY COMMITTEE ON INSURANCE
                                Henry T. Perea, Chair
              SB 375 (Committee on Labor and Industrial Relations) - As  
                              Amended:  August 5, 2013

           SENATE VOTE  :   36-0
           
          SUBJECT  :   Workers' compensation: technical clean-up

           SUMMARY  :   Contains a number of corrections to erroneous  
          cross-references and other technical clean-up provisions to the  
          2012 workers' compensation reform  Specifically,  this bill  :   

          1)Corrects an erroneous reference to "administrative hearing"  
            interpreters by replacing the phrase with "medical  
            examination" interpreters.

          2)Corrects two inaccurate Labor Code citations that relate to  
            regulations to be adopted by the Administrative Director (AD)  
            of the Division of Workers' Compensation (DWC) relating to  
            qualified medical evaluators (QMEs).

          3)Corrects an erroneous cross-reference with respect to the  
            prohibition against independent medical reviewers also being  
            QMEs.

          4)Adds an accidentally neglected cross reference in two places  
            concerning the duties of a QME or the AD with respect to  
            calculating permanent disability benefits.

          5)Clarifies that a bar against commencing proceedings involving  
            permanent disability benefits before the Workers' Compensation  
            Appeals Board (WCAB) absent an evaluation by the treating  
            physician and either a QME or an agreed medical evaluator  
            (AME) only applies to cases where there is a dispute relating  
            to those benefits.

          6)Corrects an erroneous reference to the "plan" (a "health plan"  
            as defined in the Knox-Keene health care service plan law) in  
            the workers' compensation IMR law, and replaces that term with  
            "employer."

          7)Corrects an erroneous Labor Code citation in the provision  








                                                                  SB 375
                                                                  Page  2

            that establishes WCAB authority to handle liens outside of the  
            regular workers' compensation adjudicatory process.

          8)Corrects an erroneous cross-reference to the Civil Code's  
            definition of personal medical information on the provision  
            governing limitations on the medical information that a lien  
            claimant for medical bills can obtain concerning the injured  
            worker.

           EXISTING LAW  :

          1)Authorizes the DWC to establish a program to certify  
            interpreters for administrative hearings and medical  
            examinations.

          2)Authorizes a QME to evaluate an injured worker to make  
            recommendations concerning "medical-legal" issues that affect  
            the benefits that may be owed to the injured worker in the  
            workers' compensation system, including permanent disability  
            benefits.

          3)Establishes an independent medical review (IMR) system to  
            resolve medical disputes in the workers' compensation system,  
            patterned after the IMR process used for health insurance  
            disputes, and prohibits a physician who is a QME from also  
            serving as an independent medical reviewer.

          4)Prohibits the filing of a declaration of readiness to proceed  
            to hearing on permanent disability matters unless both the  
            treating physician and either a QME or AME has evaluated the  
            injured worker.

          5)Authorizes medical providers to file a lien in the event of a  
            dispute over medical services provided to an injured worker,  
            and authorizes the WCAB to resolve any disputes concerning  
            liens in separate proceedings from the proceedings on the  
            underlying workers' compensation claim.

           FISCAL EFFECT  :   Unknown.  The bill is not tagged "fiscal."

           COMMENTS  :   

           1)Purpose  .  The purpose of SB 375 is to enact a number of  
            technical clean-up provisions to SB 863 (De Leon), Statutes  
            2012, Chapter 363, which enacted a major workers' compensation  








                                                                  SB 375
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            reform package last year.  The provisions of SB 375 are  
            intended to be only those clearly technical drafting mistakes  
            that commonly occur in a 160 page bill.

           2)Related Legislation  .  SB 258 (Lieu) is also before the  
            Assembly Insurance Committee, and contains other potential  
            clean-up provisions to SB 863.  However, the provisions in SB  
            258 did not meet the "clearly technical drafting mistakes"  
            standard for inclusion in this Labor and Industrial Relations  
            Committee bill.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None received.
           
            Opposition 
           
          None received.

           Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086