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