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 ----------------------------------------------------------------- |Author: |Committee on Insurance | |-----------+-----------------------------------------------------| |Version: |March 26, 2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |No | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Gideon Baum | | | | ----------------------------------------------------------------- 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 AB 1513 (Committee on Insurance) Page 2 of ? 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 : AB 1513 (Committee on Insurance) Page 3 of ? None on file. 3. Opponent Arguments : None on file. SUPPORT None Received. OPPOSITION None Received. -- END --