BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
                             Senator Tony Mendoza, Chair
                                2015 - 2016  Regular 

          Bill No:               AB 1513      Hearing Date:    June 24,  
          2015
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          |Author:    |Committee on Insurance                               |
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          |Version:   |March 26, 2015                                       |
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          |Urgency:   |No                     |Fiscal:    |No               |
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          |Consultant:|Gideon Baum                                          |
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                      Subject:  Workers' compensation: studies.


          KEY ISSUE
          
          Should the Legislature delete three obsolete study requirements?


          ANALYSIS
          
           Existing law  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.

           Existing law  requires that, not later than July 1, 2009, the  
          Commission on Health and Safety and Workers' Compensation  
          (CHSWC) publishes a study to examine the causes of the number of  
          insolvencies among workers' compensation insurers from 1998 to  
          2008. (Labor Code §77.7)

           Existing law  requires that, not later than July 1, 2004, the  








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          administrative director conducts a study of medical treatment  
          provided to workers who have sustained industrial injuries and  
          illnesses. Existing law also requires that this study be  
          conducted in consultation with the Commission on Health and  
          Safety and Workers' Compensation, other state agencies, and  
          researchers and research institutions with expertise in health  
          care delivery. (Labor Code §127.6)

           Existing law  requires that, not later than January 1, 2006, the  
          administrative director, after consultation with the Insurance  
          Commissioner, contracts with a qualified organization to study  
          the effects of the 2003 and 2004 legislative reforms on workers'  
          compensation insurance rates. (Labor Code §138.65)
           
          This bill  would delete the above-discussed study requirements.


          




          COMMENTS
          

          1.  Need for this bill?

            As was discussed above, existing law contains three study  
            requirements, all three of which contain deadlines which have  
            already passed. All three studies have either been published  
            by CHSWC or addressed by other studies. Therefore, deleting  
            these provisions will not impact ongoing research or the  
            workers' compensation system.

            The Assembly Insurance Committee's analysis also notes that  
            this bill may be a vehicle "for other noncontroversial changes  
            to the workers' compensation laws that achieve consensus among  
            all stakeholders, should these issues arise during this  
            Legislative Session." To date, such a consensus issue has yet  
            to be found in this legislative session. Committee staff will  
            continue to work with Assembly Insurance Committee staff to  
            ensure that any possible amendments are communicated in a  
            timely manner to Committee members and staff.

          2.  Proponent Arguments  :







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            None on file.

          3.  Opponent Arguments  :

            None on file.


          SUPPORT
          None Received.
          
          OPPOSITION
          
          None Received. 

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