BILL NUMBER: AB 1426	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 29, 2011

INTRODUCED BY    Committee on Insurance   (
  Assembly Members Solorio (Chair), Carter, Feuer,
Hayashi, Skinner, Torres, and Wieckowski   )
  Assembly Member   Solorio 

                        MARCH 22, 2011

    An act to amend Section 11629.79 of, and to repeal
Section 1758.994 of, the Insurance Code, relating to insurance.
  An act to amend Sections 110, 123.5, 123.6, 127, 133,
138, 138.1, 138.2, 5307, 5307.3, 5310, 5311.5, 5500.3, and 5502 of,
and to repeal Section 127.5 of, the Labor Code, relating to workers'
compensation. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1426, as amended,  Committee on Insurance 
 Solorio  .  Insurance.   Workers'
compensation: court administrator.  
   Existing law creates the position of court administrator with
respect to the workers' compensation adjudicatory process at the
trial level. The court administrator is appointed by the Governor
with the advice and consent of the Senate and has specified powers
and duties relating to the workers' compensation trial process,
including supervision of administrative law judges and prescribing
certain forms and calendars.  
   This bill would remove the position of court administrator and
distribute the duties to the Workers' Compensation Appeals Board and
the Administrative Director of the Division of Workers' Compensation,
as specified. The bill would make other technical and conforming
changes.  
   (1) Existing law requires the Insurance Commissioner to report to
the Legislature by June 30, 2004, regarding the effectiveness of
specified provisions regulating credit insurance agents in protecting
consumers involved in credit insurance transactions. 

   This bill would repeal this reporting requirement provision.
 
   (2) Existing law establishes a low-cost automobile insurance
program. Existing law, subject to exceptions, requires that the
Office of Administrative Law review administrative regulations
proposed by state agencies prior to their adoption. Exceptions to
this requirement authorized the Insurance Commissioner to adopt
emergency regulations relating to the low-cost automobile insurance
program as it commenced in 2000, and as it was expanded in 2006, that
are not subject to the review process of the Office of
Administrative Law.
   This bill would repeal the language that authorized the
commissioner to adopt emergency regulations in relation to the
low-cost automobile insurance program. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares that
the court administrator in the Division of Workers' Compensation,
created pursuant to Chapter 6 of the Statutes of 2002, fails to
achieve the intended uniformity and expedition of proceedings in the
district offices of the workers' compensation appeals board. The
court administrator creates divided lines of authority and
accountability, and it does not promote coordination of the functions
of the Division of Workers' Compensation. The Legislature therefore
intends to eliminate the position of the court administrator and to
reassign the powers and duties of the court administrator to the
Workers' Compensation Appeals Board or to the Administrative Director
of the Division of Workers' Compensation, as appropriate. 
   SEC. 2.    Section 110 of the   Labor Code
  is amended to read: 
   110.  As used in this chapter:
   (a) "Appeals board" means the Workers' Compensation Appeals Board.
The title of a member of the board is "commissioner."
   (b) "Administrative director" means the Administrative Director of
the Division of Workers' Compensation.
   (c) "Division" means the Division of Workers' Compensation.
   (d) "Medical director" means the physician appointed by the
administrative director pursuant to Section 122.
   (e) "Qualified medical evaluator" means physicians appointed by
the administrative director pursuant to Section 139.2. 
   (f) "Court administrator" means the administrator of the workers'
compensation adjudicatory process at the trial level. 
   SEC. 3.    Section 123.5 of the   Labor Code
  is amended to read: 
   123.5.  (a) Workers' compensation administrative law judges
employed by the administrative director  and supervised by
the court administrator pursuant to this chapter  shall be
taken from an eligible list of attorneys licensed to practice law in
this state, who have the qualifications prescribed by the State
Personnel Board. In establishing eligible lists for this purpose,
state civil service examinations shall be conducted in accordance
with the State Civil Service Act (Part 2 (commencing with Section
18500) of Division 5 of Title 2 of the Government Code). Every
workers' compensation judge shall maintain membership in the State
Bar of California during his or her tenure.
   A workers' compensation administrative law judge may not receive
his or her salary as a workers' compensation administrative law judge
while any cause before the workers' compensation administrative law
judge remains pending and undetermined for 90 days after it has been
submitted for decision.
   (b) All workers' compensation administrative law judges appointed
on or after January 1, 2003, shall be attorneys licensed to practice
law in California for five or more years prior to their appointment
and shall have experience in workers' compensation law.
   SEC. 4.   Section 123.6 of the   Labor Code
  is amended to read: 
   123.6.  (a) All workers' compensation administrative law judges
employed by the administrative director  and supervised by
the court administrator  shall subscribe to the Code of
Judicial Ethics adopted by the Supreme Court pursuant to subdivision
(m) of Section 18 of Article VI of the California Constitution for
the conduct of judges and shall not otherwise, directly or
indirectly, engage in conduct contrary to that code or to the
commentary to the Code of Judicial Ethics.
   In consultation with  both the court administrator and
 the Commission on Judicial Performance, the administrative
director shall adopt regulations to enforce this section. 
Existing regulations shall remain in effect until new regulations
based on the recommendations of the court administrator and the
Commission on Judicial Performance have become effective. 
To the extent possible, the rules shall be consistent with the
procedures established by the Commission on Judicial Performance for
regulating the activities of state judges, and, to the extent
possible, with the gift, honoraria, and travel restrictions on
legislators contained in the Political Reform Act of 1974 (Title 9
(commencing with Section 81000) of the Government Code).  The
court administrator shall have the authority to enforce the rules
adopted by the administrative director. 
   (b) Honoraria or travel allowed by the  court
administrator   administrative director  , and not
otherwise prohibited by this section in connection with any public or
private conference, convention, meeting, social event, or like
gathering, the cost of which is significantly paid for by attorneys
who practice before the board, may not be accepted unless the
 court administrator   administrative director
 has provided prior approval in writing to the workers'
compensation administrative law judge allowing him or her to accept
those payments.
   SEC. 5.    Section 127 of the   Labor Code
  is amended to read: 
   127.  The administrative director  and court administrator
 may  do all of the following  :
   (a) Charge and collect fees for copies of papers and records, for
certified copies of official documents and orders or of the evidence
taken or proceedings had, for transcripts of testimony, and for
inspection of case files not stored in the place where the inspection
is requested. The administrative director shall fix those fees in an
amount sufficient to recover the actual costs of furnishing the
services. No fees for inspection of case files shall be charged to an
injured employee or his or her representative.
   (b) Publish and distribute from time to time, in addition to the
reports to the Governor, further reports and pamphlets covering the
operations, proceedings, and matters relative to the work of the
division.
   (c) Prepare, publish, and distribute an office manual, for which a
reasonable fee may be charged, and to which additions, deletions,
amendments, and other changes from time to time may be adopted,
published, and distributed, for which a reasonable fee may be charged
for the revision, or for which a reasonable fee may be fixed on an
annual subscription basis.
   (d) Fix and collect reasonable charges for publications issued.
   SEC. 6.    Section 127.5 of the   Labor Code
  is repealed.  
   127.5.  In the exercise of his or her functions, the court
administrator shall further the interests of uniformity and
expedition of proceedings before workers' compensation administrative
law judges, assure that all workers' compensation administrative law
judges are qualified and adhere to deadlines mandated by law or
regulations, and manage district office procedural matters at the
trial level. 
   SEC. 7.    Section 133 of the   Labor Code
  is amended to read: 
   133.  The Division of Workers' Compensation, including the
administrative director  , the court administrator, 
and the appeals board, shall have power and jurisdiction to do all
things necessary or convenient in the exercise of any power or
jurisdiction conferred upon it under this code.
   SEC. 8.    Section 138 of the   Labor Code
  is amended to read: 
   138.  The administrative director  and the court
administrator  may  each  appoint a deputy
to act  during that time as   when  he or
she  may be   is  absent from the state due
to official business, vacation, or illness.
   SEC. 9.    Section 138.1 of the   Labor Code
  is amended to read: 
   138.1.   (a)    The
administrative director shall be appointed by the Governor with the
advice and consent of the Senate and shall hold office at the
pleasure of the Governor. He or she shall receive the salary provided
for by Chapter 6 (commencing with Section 11550) of Part 1 of
Division 3 of Title 2 of the Government Code. 
   (b) The court administrator shall be appointed by the Governor
with the advice and consent of the Senate. The court administrator
shall hold office for a term of five years. The court administrator
shall receive the salary provided for by Chapter 6 (commencing with
Section 11550) of Part 1 of Division 3 of Title 2 of the Government
Code. 
   SEC. 10.    Section 138.2 of the   Labor
Code   is amended to read: 
   138.2.  (a) The headquarters of the Division of Workers'
Compensation shall be based at and operated from a centrally located
city.
   The administrative director  and the court administrator
 shall have an office in that city with suitable rooms,
necessary office furniture, stationery, and supplies, and may rent
quarters in other places for the purpose of establishing branch or
service offices, and for that purpose may provide those offices with
necessary furniture, stationery  ,  and supplies.
   (b) The administrative director shall provide suitable rooms, with
necessary office furniture, stationery  ,  and supplies,
for the appeals board at the centrally located city in which the
board shall be based and from which it shall operate, and may rent
quarters in other places for the purpose of establishing branch or
service offices for the appeals board, and for that purpose may
provide those offices with necessary furniture, stationery, and
supplies.
   (c) All meetings held by the administrative director shall be open
and public. Notice thereof shall be published in papers of general
circulation not more than 30 days and not less than 10 days prior to
each meeting in Sacramento, San Francisco, Fresno, Los Angeles  ,
 and San Diego. Written notice of all meetings shall be given
to all persons who request  ,  in writing directed to the
administrative director  ,  that they be given notice.
   SEC. 11.    Section 5307 of the   Labor Code
  is amended to read: 
   5307.  (a)  Except for those rules and regulations within
the authority of the court administrator regarding trial level
proceedings as defined in subdivision (c), the  The
 appeals board may  ,  by an order signed by four
members  , do all of the following  :
   (1) Adopt reasonable and proper rules of practice and procedure.
   (2) Regulate and provide the manner in which, and by whom, minors
and incompetent persons are to appear and be represented before it.
   (3) Regulate and prescribe the kind and character of notices,
where not specifically prescribed by this division, and the service
thereof.
   (4) Regulate and prescribe the nature and extent of the proofs and
evidence.
   (b) No rule or regulation of the appeals board pursuant to this
section shall be adopted, amended, or rescinded without public
hearings. Any written request filed with the appeals board seeking a
change in its rules or regulations shall be deemed to be denied if
not set by the appeals board for public hearing to be held within six
months of the date on which the request is received by the appeals
board. 
   (c) The court administrator shall adopt reasonable, proper, and
uniform rules for district office procedure regarding trial level
proceedings of the workers' compensation appeals board. These rules
shall include, but not be limited to, all of the following: 

   (1) Rules regarding conferences, hearings, continuances, and other
matters deemed reasonable and necessary to expeditiously resolve
disputes.  
   (2) The kind and character of forms to be used at all trial level
proceedings.  
   All rules and regulations adopted by the court administrator
pursuant to this subdivision shall be subject to the requirements of
the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code). 
   SEC. 12.    Section 5307.3 of the   Labor
Code   is amended to read: 
   5307.3.  The administrative director may adopt, amend, or repeal
any rules and regulations that are reasonably necessary to enforce
this division, except where this power is specifically reserved to
the appeals board  or the court administrator  .
   No rule or regulation of the administrative director pursuant to
this section shall be adopted, amended, or rescinded without public
hearings. Any written request filed with the administrative director
seeking a change in its rules or regulations shall be deemed to be
denied if not set by the administrative director for public hearing
to be held within six months of the date on which the request is
received by the administrative director.
   SEC. 13.    Section 5310 of the   Labor Code
  is amended to read: 
   5310.  The appeals board may appoint one or more workers'
compensation administrative law judges in any proceeding, as it may
deem necessary or advisable, and may refer, remove to itself, or
transfer to a workers' compensation administrative law judge the
proceedings on any claim. The administrative director  ,
after consideration of the recommendation of the court administrator,
 may appoint workers' compensation administrative law
judges. Any workers' compensation administrative law judge appointed
by the administrative director has the powers, jurisdiction, and
authority granted by law, by the order of appointment, and by the
rules of the appeals board.
   SEC. 14.    Section 5311.5 of the   Labor
Code   is amended to read: 
   5311.5.  The administrative director  or the court
administrator  shall require all workers' compensation
administrative law judges to participate in continuing education to
further their abilities as workers' compensation administrative law
judges, including courses in ethics and conflict of interest. The
director may coordinate the requirements with those imposed upon
attorneys by the State Bar in order that the requirements may be
consistent.
   SEC. 15.    Section 5500.3 of the   Labor
Code   is amended to read: 
   5500.3.  (a) The  court administrator  
appeals board  shall establish uniform district office
procedures, uniform forms, and uniform time of court settings for all
district offices of the appeals board. No district office of the
appeals board or workers' compensation  administration
  administrative  law judge shall require forms or
procedures other than as established by the  court
administrator   appeals board  .  The court
administrator shall take reasonable steps to ensure enforcement of
this section . A workers' compensation administrative law
judge who violates this section may be subject to disciplinary
proceedings.
   (b) The appeals board shall establish uniform court procedures and
uniform forms for all other proceedings of the appeals board.
 No district office of the appeals board or workers'
compensation administrative law judge shall require forms or
procedures other than as established by the appeals board. 
   SEC. 16.    Section 5502 of the   Labor Code
  is amended to read: 
   5502.  (a) Except as provided in subdivisions (b) and (d), the
hearing shall be held not less than 10 days, and not more than 60
days, after the date a declaration of readiness to proceed, on a form
prescribed by the  court administrator  
appeals board  , is filed. If a claim form has been filed for an
injury occurring on or after January 1, 1990, and before January 1,
1994, an application for adjudication shall accompany the declaration
of readiness to proceed.
   (b) The  court administrator   administrative
director  shall establish a priority calendar for issues
requiring an expedited hearing and decision. A hearing shall be held
and a determination as to the rights of the parties shall be made and
filed within 30 days after the declaration of readiness to proceed
is filed if the issues in dispute are any of the following:
   (1) The employee's entitlement to medical treatment pursuant to
Section 4600.
   (2) The employee's entitlement to, or the amount of, temporary
disability indemnity payments. 
   (3) The employee's entitlement to vocational rehabilitation
services, or the termination of an employer's liability to provide
these services to an employee.  
   (4) 
    (3)  The employee's entitlement to compensation from one
or more responsible employers when two or more employers dispute
liability as among themselves. 
   (5) 
    (4)  Any other issues requiring an expedited hearing and
determination as prescribed in rules and regulations of the
administrative director.
   (c) The  court administrator   administrative
director  shall establish a priority conference calendar for
cases in which the employee is represented by an attorney and the
issues in dispute are employment or injury arising out of employment
or in the course of employment. The conference shall be conducted by
a workers' compensation administrative law judge within 30 days after
the declaration of readiness to proceed. If the dispute cannot be
resolved at the conference, a trial shall be set as expeditiously as
possible, unless good cause is shown why discovery is not complete,
in which case status conferences shall be held at regular intervals.
The case shall be set for trial when discovery is complete, or when
the workers' compensation administrative law judge determines that
the parties have had sufficient time in which to complete reasonable
discovery. A determination as to the rights of the parties shall be
made and filed within 30 days after the trial.
   (d) The  court administrator   administrative
director  shall report quarterly to the Governor and to the
Legislature concerning the frequency and types of issues which are
not heard and decided within the period prescribed in this section
and the reasons therefor.
   (e) (1) In all cases, a mandatory settlement conference shall be
conducted not less than 10 days, and not more than 30 days, after the
filing of a declaration of readiness to proceed. If the dispute is
not resolved, the regular hearing shall be held within 75 days after
the declaration of readiness to proceed is filed.
   (2) The settlement conference shall be conducted by a workers'
compensation administrative law judge or by a referee who is eligible
to be a workers' compensation administrative law judge or eligible
to be an arbitrator under Section 5270.5. At the mandatory settlement
conference, the referee or workers' compensation administrative law
judge shall have the authority to resolve the dispute, including the
authority to approve a compromise and release or issue a stipulated
finding and award, and if the dispute cannot be resolved, to frame
the issues and stipulations for trial. The appeals board shall adopt
any regulations needed to implement this subdivision. The presiding
workers' compensation administrative law judge shall supervise
settlement conference referees in the performance of their judicial
functions under this subdivision.
   (3) If the claim is not resolved at the mandatory settlement
conference, the parties shall file a pretrial conference statement
noting the specific issues in dispute, each party's proposed
permanent disability rating, and listing the exhibits, and disclosing
witnesses. Discovery shall close on the date of the mandatory
settlement conference. Evidence not disclosed or obtained thereafter
shall not be admissible unless the proponent of the evidence can
demonstrate that it was not available or could not have been
discovered by the exercise of due diligence prior to the settlement
conference.
   (f) In cases involving the Director of the Department of
Industrial Relations in his or her capacity as administrator of the
Uninsured Employers Fund, this section shall not apply unless proof
of service, as specified in paragraph (1) of subdivision (d) of
Section 3716  ,  has been filed with the appeals board and
provided to the Director of Industrial Relations, valid jurisdiction
has been established over the employer, and the fund has been joined.

   (g) Except as provided in subdivision (a) and in Section 4065, the
provisions of this section shall apply irrespective of the date of
injury.
   SEC. 17.    All regulations adopted by the court
administrator shall remain in effect unless amended or repealed by
either the Workers' Compensation Appeals Board or the Administrative
Director of the Division of Workers' Compensation. Regulations of the
court administrator that have been adopted pursuant to Sections
5307, 5500.3, or subdivision (a) of Section 5502 shall be deemed to
be regulations of the Workers' Compensation Appeals Board. All other
regulations of the court administrator shall be deemed to be
regulations of the Administrative Director of the Division of Workers'
Compensation.  
  SECTION 1.    Section 1758.994 of the Insurance
Code is repealed.  
  SEC. 2.    Section 11629.79 of the Insurance Code
is amended to read:
   11629.79.  (a) The program for the County of Los Angeles and the
City and County of San Francisco is authorized to commence operations
on January 1, 2000, but shall be fully operational no later than
July 1, 2000.
   (b) To this end, the commissioner, in consultation with the
California Automobile Assigned Risk Plan, shall adopt regulations to
implement the provisions of this article within 60 days of its
effective date.
   (c) The program for the Counties of Alameda, Fresno, Orange,
Riverside, San Bernardino, and San Diego shall commence operations on
April 1, 2006, and shall be made operational in all other counties
of California according to the discretion of the commissioner. The
commissioner, in consultation with the California Automobile Assigned
Risk Plan, shall adopt regulations to implement the expansion of the
program to these counties.