BILL ANALYSIS Ó AB 438 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 438 (Chiu) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |(May 14, 2015) |SENATE: |37-0 |(September 9, | | |60-19 | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: INS. SUMMARY: Requires the Department of Industrial Relations (DIR) and the Division of Workers' Compensation (DWC) to make certain informational forms available in additional languages. The Senate amendments: 1)Delete the repeal of an exemption of the State Compensation Insurance Fund (SCIF) from the Dymally-Alatorre Bilingual Services Act (Act). 2)Delete the bill's prior requirement that the DIR and DWC comply with the Act. 3)Require, no later than January 1, 2018, that the DIR and DWC AB 438 Page 2 make the following forms and materials available in Chinese, Korean, Tagalog, and Vietnamese: a) The basic standard workers' compensation claim form; b) The application form for the Return-To-Work Supplement Program; c) The Supplemental Job Displacement Voucher form; d) Certain DWC Fact Sheets, including, but not limited to notices that address: i) Temporary disability; ii) Permanent disability; iii) Qualified medical examiners; iv) The Uninsured Employers' Trust Fund; v) Utilization review; vi) Basic facts on workers' compensation; and vii) The glossary of workers' compensation terms. 4)Require the Administrative Director of the DWC, commencing January 1, 2018, to annually review documents published by the DWC and recommend other documents that should be translated. AB 438 Page 3 5)Require the DIR and DWC to annually report to the Legislature any recommendations made, and include any documents translated. EXISTING LAW: 1)Provides for a comprehensive system to provide workers' compensation benefits to employees who suffers injuries or conditions arising out of or in the course of employment. 2)Creates the DWC, headed by an Administrative Director (AD), a Gubernatorial appointee, who by statute is directed to administer the workers' compensation program, and carry out the various general and specific duties involved in that administration. The DWC is organizationally a unit within the DIR). 3)Provides for labor law enforcement operations, in addition to the workers' compensation program, within the DIR, including the Industrial Welfare Commission, the Division of Labor Standards Enforcement, the Division of Occupational Safety and Health, among others. 4)Exempts SCIF from a Government Code provision that requires state agencies that provide services or information to the public to employ bilingual persons in public contact positions. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. Fiscal Effect Comments: AB 438 Page 4 1)The Senate amendments delete the repeal of SCIF's exemption from the Act for several reasons. First, it appears SCIF is already in substantial or complete compliance with the Act. Second, it is not clear that the Act, which fundamentally addresses the provision of government services, actually applies to the activities that SCIF engages in. Third, even as a quasi-governmental entity, SCIF competes with the private workers' compensation insurers, and imposing duties on SCIF that are not being imposed on other insurers can be viewed as mandating a competitive disadvantage. 2)Rather than provide a general directive to the DIR and the DWC to comply with the Act, the Senate amendments identify the key documents and the core languages that the bill will require the DIR and DWC to address. This approach provides clear guidance, avoids vague directives and the risk of unfulfilled expectations, and allows for Legislative oversight as the DWC annually reports to the Legislature any new recommendations of documents that have been translated. Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0002297