BILL NUMBER: AB 1170 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Alejo
FEBRUARY 27, 2015
An act to add Section 3700.2 to the Labor Code, relating to
workers' compensation, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1170, as introduced, Alejo. Workers' compensation.
Existing law requires every employer, except the state, to secure
the payment of workers' compensation as provided by law. Existing law
authorizes an employer, pursuant to this provision, to insure
against liability in insurers duly authorized to write compensation
insurance in the state or to secure from the Director of Industrial
Relations a certificate of consent to self-insure.
This bill would exempt agricultural employers, as defined, from
the requirement to secure payment of workers' compensation and would
create the Pilot Program for the Care of Agricultural Workers. This
bill would create the Care of Agricultural Workers Fund, a
continuously appropriated fund. This bill would require the
Administrative Director of the Department of Industrial Relations to
evaluate the amount spent by agricultural employers on workers'
compensation and the amount spent on workers' compensation medical
coverage. This bill would require that the amount that would
otherwise have been spent by agricultural employers on workers'
compensation medical coverage be placed in the Care of Agricultural
Workers Fund. This bill would require that the fund be used to
provide essential health benefits for agricultural workers. This bill
would require agricultural employers to deposit additional moneys
into the Care of Agricultural Workers Fund, as determined necessary
by the administrative director to provide essential health benefits.
This bill would require the administrative director to make a report
to the Legislature after the 2nd year of the pilot program and at the
completion of the pilot program.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3700.2 is added to the Labor Code, to read:
3700.2. (a) (1) "Agricultural employer" means an agricultural
employer as defined by subdivision (c) of Section 1140.4.
(2) "Agricultural worker" means the employee of an agricultural
employer.
(3) "Pilot program" means the Care of Agricultural Workers program
established by subdivision (b).
(b) A pilot program is hereby authorized, for a duration of up to
36 months, under regulations to be developed and implemented by the
administrative director. The purpose of the pilot project is to
authorize the administrative director to contract with a licensed
health care service plan to be the exclusive provider of medical,
surgical, and hospital treatment for occupational and nonoccupational
injuries and illnesses incurred by agricultural workers. The health
care service plan shall provide all occupationally related medical
treatment coverage required by this division without any payment by
the agricultural workers of deductibles, copayments, or any share of
the premium. Employers participating in the pilot program shall make
available health plan coverage for their employees' dependents for
the treatment of nonindustrial injuries and illnesses.
(c) The Care of Agricultural Workers Fund is hereby created.
Notwithstanding Section 13340 of the Government Code, the money in
the fund is continuously appropriated to the administrative director
to carry out this pilot program.
(d) (1) The administrative director shall determine the amount to
be deposited into the Care of Agricultural Workers Fund by
determining all of the following:
(A) The approximate total premiums paid by agricultural employers
for all workers' compensation insurance for the 2011-12, 2012-13,
2013-14 fiscal years.
(B) The amount paid for workers' compensation medical expenses for
agricultural workers for the previous three years for the 2011-12,
2012-13, 2013-14 fiscal years.
(2) The administrative director shall allocate portions of the
amount described in subparagraph (B) of paragraph (1) to each
agricultural employer based on factors that fairly reflect the
agricultural employer's number of agricultural workers. The
agricultural employer shall deposit that amount into the Care of
Agricultural Workers Fund.
(e) (1) The administrative director shall use moneys in the Care
of Agricultural Workers Fund to contract with one licensed health
care service plan to be the exclusive provider of medical, surgical,
and hospital treatment for occupational and nonoccupational injuries
and illnesses incurred by its agricultural workers. The health care
service plan shall provide all occupational-related medical treatment
coverage required by this division without any payment by the
employees of deductibles, copayments, or any share of the premium.
Agricultural employers shall make available health plan coverage for
their employees' dependents for the treatment of nonindustrial
injuries and illnesses. This section does not require an employer to
pay for that dependent coverage.
(2) The medical care provided shall meet the essential health
benefits as described by Article 5 (commencing with Section 1367), of
Chapter 2.2 of Division 2 of the Health and Safety Code. The
administrative director shall monitor the fund on a continuous basis.
If the level of moneys in the fund becomes insufficient to support
the pilot program, the administrative director shall determine the
amount of money necessary to continue the program and shall allocate
that amount among agricultural employers pursuant to paragraph (2) of
subdivision (d).
(f) This section does not exempt an employer from providing
nonmedical workers' compensation benefits.
(g) (1) The administrative director shall, at the completion of
the second year of the pilot project, and at the completion of the
program, prepare a report to be submitted to the Legislature.
(2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.