BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1513|
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                                   THIRD READING 


          Bill No:  AB 1513
          Author:   Committee on Insurance   
          AmendedAmended:3/26/15 in Assembly
          Vote:     21 

           SENATE LABOR & IND. REL. COMMITTEE:  5-0, 6/24/15
           AYES:  Mendoza, Stone, Jackson, Leno, Mitchell

           ASSEMBLY FLOOR:  79-0, 4/16/15 (Consent) - See last page for  
            vote

           SUBJECT:   Workers compensation: studies


          SOURCE:    Author

          DIGEST:   This bill deletes three obsolete study requirements  
          for the workers' compensation system.

          ANALYSIS: 
          
          Existing law: 

          1)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.

          2)Requires that, not later than July 1, 2009, the Commission on  








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                                                                    Page  2


            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)

          3)Requires that, not later than July 1, 2004, the 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 CHSWC, other state agencies, and  
            researchers and research institutions with expertise in health  
            care delivery. (Labor Code §127.6)

          4)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 deletes the above-discussed study requirements.

          Background
          
          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. 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified6/24/15)









                                                                    AB 1513  
                                                                    Page  3


          None received


          OPPOSITION:   (Verified6/24/15)


          None received
           
           
          ASSEMBLY FLOOR:  79-0, 4/16/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Rendon, Ridley-Thomas, Rodriguez, Salas,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,  
            Waldron, Weber, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Quirk

          Prepared by:Gideon Baum / L. & I.R. / (916) 651-1556
          6/29/15 15:53:20


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