Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2883

Introduced by Committee on Insurance (Assembly Members Daly (Chair), begin insert Travis Allen, end insert Bigelow, Calderon, Cooley, begin insert Cooper, end insert Dababneh, Frazier, begin insert Beth Gaines, end insert Gatto, Gonzalez, and Rodriguez)

February 25, 2016

An act to add Section 77.7 begin delete to end delete begin insert to, and to repeal Section 6354.7 of, end insert the Labor Code, relating to workers’ compensation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2883, as amended, Committee on Insurance. Workers’ compensation: utilization review.

Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines “utilization review” as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.

Existing law also establishes the Commission on Health and Safety and Workers’ Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers’ compensation system and of the state’s activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.

This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians’ requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study. begin insert end insert begin insert The bill would also delete obsolete provisions. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 77.7 is added to the Labor Code, to read:

77.7.  

(a) The commission shall conduct, or contract for the
conduct of, a feasibility study regarding the extent to which
physicians’ requests for authorization of medical treatment for
injured employees may be processed using an entirely paperless
system. The primary focus of the feasibility study shall be to
determine whether the change to a paperless system would reduce
the time required to provide medical treatment services to injured
employees.

(b) The commission shall consult with stakeholders, including
employers, employees, and medical providers, in conducting or
contracting for the feasibility study pursuant to subdivision (a).

(c) The commission shall have discretion to decide whether to
conduct or contract for the conduct of the feasibility study pursuant
to this section.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 6354.7 of the end insert begin insert Labor Code end insert begin insert , as added by Section
84 of Chapter 6 of the Statutes of 2002, is repealed. end insert

begin delete

6354.7.  

(a) The Workers’ Occupational Safety and Health
Education Fund is hereby created as a special account in the State
Treasury. Proceeds of the fund may be expended, upon
appropriation by the Legislature, by the Commission on Health
and Safety and Workers’ Compensation for the purpose of
establishing and maintaining a worker occupational safety and
health training and education program and insurance loss control
services coordinator. The director shall levy and collect fees to
fund these purposes from insurers subject to Section 6354.5.
However, the fee assessed against any insurer shall not exceed the
greater of one hundred dollars ($100) or 0.0286 percent of paid
workers’ compensation indemnity claims as reported for the
previous calendar year to the designated rating organization for
the analysis required under subdivision (b) of Section 11759.1 of
the Insurance Code. All fees shall be deposited in the fund.

(b) The commission shall establish and maintain a worker safety
and health training and education program. The purpose of the
worker occupational safety and health training and education
program shall be to promote awareness of the need for prevention
education programs, to develop and provide injury and illness
prevention education programs for employees and their
representatives, and to deliver those awareness and training
programs through a network of providers throughout the state. The
commission may conduct the program directly or by means of
contracts or interagency agreements.

(c) The commission shall establish an employer and worker
advisory board for the program. The advisory board shall guide
the development of curricula, teaching methods, and specific course
material about occupational safety and health, and shall assist in
providing links to the target audience and broadening the
partnerships with worker-based organizations, labor studies
programs, and others that are able to reach the target audience.

(d) The program shall include the development and provision
of a needed core curriculum addressing competencies for effective
participation in workplace injury and illness prevention programs
and on joint labor-management health and safety committees. The
core curriculum shall include an overview of the requirements
related to injury and illness prevention programs and hazard
communication.

(e) The program shall include the development and provision
of additional training programs for any or all of the following
categories:

(1) Industries on the high hazard list.

(2) Hazards that result in significant worker injuries, illnesses,
or compensation costs.

(3) Industries or trades where workers are experiencing
numerous or significant injuries or illnesses.

(4) Occupational groups with special needs, such as those who
do not speak English as their first language, workers with limited
literacy, young workers, and other traditionally underserved
industries or groups of workers. Priority shall be given to training
workers who are able to train other workers and workers who have
significant health and safety responsibilities, such as those workers
serving on a health and safety committee or serving as designated
safety representatives.

(f) The program shall operate one or more libraries and
distribution systems of occupational safety and health training
material, which shall include, but not be limited to, all material
developed by the program pursuant to this section.

(g) The advisory board shall annually prepare a written report
evaluating the use and impact of programs developed.

(h) The payment of administrative costs incurred by the
commission in conducting the program shall be made from the
Workers’ Occupational Safety and Health Education Fund.

end delete