BILL NUMBER: SB 983 CHAPTERED 07/16/93 BILL TEXT CHAPTER 117 FILED WITH SECRETARY OF STATE JULY 16, 1993 APPROVED BY GOVERNOR JULY 16, 1993 PASSED THE SENATE JULY 16, 1993 PASSED THE ASSEMBLY JULY 16, 1993 CONFERENCE REPORT NO. 1 PROPOSED IN CONFERENCE JULY 15, 1993 AMENDED IN ASSEMBLY MAY 13, 1993 AMENDED IN SENATE MAY 5, 1993 INTRODUCED BY Senator Greene (Coauthors: Senators Johnston and Leonard) (Coauthor: Assembly Member Peace) MARCH 5, 1993 An act to add Section 3201.5 to the Labor Code, relating to workers' compensation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 983, Greene. Workers' compensation: collective bargaining agreements. Existing law requires the enforcement of any collective bargaining agreement between an employer and a labor organization. Existing law also requires the submission for arbitration of disputes between an employer and an employee involving specified issues. This bill would require the Department of Industrial Relations and the courts of this state to recognize as valid and binding any provision in a collective bargaining agreement between a private employer or groups of employers engaged primarily in construction, construction maintenance, and related activities and a recognized or certified exclusive bargaining representative that establishes an alternative dispute resolution system, as specified, the use of an agreed list of providers of medical treatment, as specified, the use of an agreed, limited list of qualified medical evaluators and agreed medical evaluators, as specified, joint labor management safety committees, a light-duty, modified job or return-to-work program, as specified, or a vocational rehabilitation or retraining program, as specified. This bill would disallow any collective bargaining agreement that diminishes the entitlement of an employee to compensation payments for total or partial disability, temporary disability, vocational rehabilitation, or medical treatment fully paid by the employer. It also would require that any agreement in violation of that provision be declared null and void. The bill would provide that the premium rate for a policy of insurance issued pursuant to these provisions is not subject to certain restrictions relating to rates. This bill would also impose specified reporting requirements on the Administrative Director of the Division of Workers' Compensation. This bill would become operative only if AB 110, AB 119, AB 1300, and SB 484 are also enacted. This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 3201.5 is added to the Labor Code, to read: 3201.5. (a) Except as provided in subdivisions (b) and (c), the Department of Industrial Relations and the courts of this state shall recognize as valid and binding any provision in a collective bargaining agreement between a private employer or groups of employers engaged in construction, construction maintenance, and related activities and a recognized or certified exclusive bargaining representative that establishes any of the following: (1) An alternative dispute resolution system governing disputes between employees and employers or their insurers that supplements or replaces all or part of those dispute resolution processes contained in this division, including, but not limited to, mediation and arbitration. Any system of arbitration shall provide that the decision of the arbiter or board of arbitration is subject to review by the appeals board in the same manner as provided for reconsideration of a final order, decision, or award made and filed by a workers' compensation judge pursuant to the procedures set forth in Article 1 (commencing with Section 5900) of Chapter 7 of Part 4 of Division 4, and the court of appeals pursuant to the procedures set forth in Article 2 (commencing with Section 5950) of Chapter 7 of Part 4 of Division 4, governing orders, decisions, or awards of the appeals board. The findings of fact, award, order, or decision of the arbitrator shall have the same force and effect as an award, order, or decision of a workers' compensation judge. Any provision for arbitration established pursuant to this section shall not be subject to Sections 5270, 5270.5, 5271, 5272, 5273, 5275, and 5277. (2) The use of an agreed list of providers of medical treatment that may be the exclusive source of all medical treatment provided under this division. (3) The use of an agreed, limited list of qualified medical evaluators and agreed medical evaluators that may be the exclusive source of qualified medical evaluators and agreed medical evaluators under this division. (4) Joint labor management safety committees. (5) A light-duty, modified job or return-to-work program. (6) A vocational rehabilitation or retraining program utilizing an agreed list of providers of rehabilitation services that may be the exclusive source of providers of rehabilitation services under this division. (b) Nothing in this section shall allow a collective bargaining agreement that diminishes the entitlement of an employee to compensation payments for total or partial disability, temporary disability, vocational rehabilitation, or medical treatment fully paid by the employer as otherwise provided in this division. Any agreement that violates this subdivision shall be declared null and void. (c) Subdivision (a) shall apply only to the following: (1) Private employers developing or projecting an annual workers' compensation premium, in California, of two hundred fifty thousand dollars ($250,000) or more. (2) Groups of employers engaged in a workers' compensation safety group complying with Sections 11656.6 and 11656.7 of the Insurance Code, and established pursuant to a joint labor management safety committee or committees, which develops or projects annual workers' compensation insurance premiums of two million dollars ($2,000,000) or more. (d) The premium rate for a policy of insurance issued pursuant to this section shall not be subject to the requirements of Section 11732 or 11732.4 of the Insurance Code. (e) A copy of the collective bargaining agreement and the approximate number of employees who will be covered thereby shall be filed with the Administrative Director of the Division of Workers' Compensation. The director shall review the agreements for compliance with this section, shall notify the parties in the event any provisions are not in compliance, and shall recommend appropriate action to bring the agreements into compliance. (f) Commencing July 1, 1994, and annually thereafter, the Division of Workers' Compensation shall report to the Director of the Department of Industrial Relations the number of collective bargaining agreements received and the number of employees covered by these agreements. (g) By June 30, 1996, the Administrative Director of the Division of Workers' Compensation shall prepare and notify Members of the Legislature that a report authorized by this section is available upon request. The report based upon aggregate data shall include the following: (1) Person hours covered by agreements filed. (2) The number of claims filed. (3) The average cost per claim shall be reported by cost components whenever practicable. (4) The number of litigated claims, including the number of claims submitted to mediation, the appeals board, or the court of appeals. (5) The number of contested claims resolved prior to arbitration. (6) The projected incurred costs and actual costs of claims. (7) Safety history. (8) The number of workers participating in vocational rehabilitation. (9) The number of workers participating in light-duty programs. The division shall have the authority to require those employers and groups of employers listed in subdivision (c) to provide the data listed above. (h) The data obtained by the administrative director pursuant to this section shall be confidential and not subject to public disclosure under any law of this state. However, the Division of Workers' Compensation shall create derivative works pursuant to subdivisions (f) and (g) based on the collective bargaining agreements and data. Those derivative works shall not be confidential, but shall be public. SEC. 2. If any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. SEC. 3. This act shall become operative only if Assembly Bill 110, Assembly Bill 119, Assembly Bill 1300, and Senate Bill 484 of the 1993-94 Regular Session are all enacted and become effective on or before January 1, 1994. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to facilitate the prompt commencement of numerous construction projects employing large numbers of workers, it is necessary for this act to take effect immediately.