BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2883


                                                                    Page  1





          ASSEMBLY THIRD READING


          AB  
          2883 (Committee on Insurance)


          As Amended  May 27, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Insurance       |13-0 |Daly, Melendez,       |                    |
          |                |     |Travis Allen,         |                    |
          |                |     |Bigelow, Calderon,    |                    |
          |                |     |Chu, Cooley, Cooper,  |                    |
          |                |     |Dababneh, Dahle,      |                    |
          |                |     |Frazier, Gatto,       |                    |
          |                |     |Rodriguez             |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |








                                                                    AB 2883


                                                                    Page  2





          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Directs the Commission on Health and Safety and  
          Workers' Compensation (CHSWC) to conduct a study on the  
          viability of establishing a paperless system for approval of  
          treatment requests in the workers' compensation system, and  
          deletes a duplicative Labor Code Section.


          EXISTING LAW:  


          1)Establishes the CHSWC as a policy research entity within the  
            Department of Industrial Relations.  Commission members are  
            appointed by the Governor, and there are an equal number of  
            labor and employer representatives.


          2)Contains two nearly identical Labor Code Sections numbered  
            6354.7 that establish a Workers' Occupational Safety and  
            Health Education Fund, delineates the purposes of the Fund,  
            and provides that the funds may be expended by the CHSWC.


          FISCAL EFFECT:  Approximately $500,000 to $700,000 to pay for  
          the study mandated by the bill.


          COMMENTS:  


          1)Paperless approvals.  One of the points of frustration  
            frequently cited by physicians with the workers' compensation  
            system is the delays associated with obtaining approval for  
            recommended treatment.  While there may be other approaches  
            that raise more complex policy debates, administrative  
            streamlining is policy neutral.  However, logistics and  








                                                                    AB 2883


                                                                    Page  3





            workability for a diverse provider base may pose challenges  
            that need to be considered in moving toward a paperless, more  
            efficient system for obtaining approval of treatment.  The  
            CHSWC is the appropriate entity to conduct this study.  The  
            parameters of the study, as set forth in the bill, were  
            developed with provider input.


          2)Repeal of Labor Code Section 6354.7.  Legislative Counsel  
            engages annually in a "Code clean-up" review, and recently  
            noted that there are two Sections with the same number that  
            are virtually identical.  Both were adopted in 2002 in  
            separate bills by the same author.  One bill was apparently  
            aimed at workers' compensation administration, and the other  
            aimed at benefits, but this provision managed to appear in  
            both bills.


          3)Vehicle for consensus clean-up.  As is the custom of the  
            Insurance Committee, this bill will be a potential vehicle for  
            non-controversial, consensus items in the event all relevant  
            stakeholders agree on issues.




          Analysis Prepared by:                                             
          Mark Rakich / INS. / (916) 319-2086  FN: 0003216



















                                                                    AB 2883


                                                                    Page  4