BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 438


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          438 (Chiu)


          As Amended  September 4, 2015


          Majority vote


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          |ASSEMBLY:  |      |(May 14, 2015) |SENATE: |37-0  |(September 9,    |
          |           |60-19 |               |        |      |2015)            |
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          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  








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            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.








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          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:  









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          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