BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 863 (Lieu)
          
          Hearing Date: 5/9/2011          Amended: 4/14/2011
          Consultant: Bob Franzoia        Policy Vote: L&IR 7-0
          
















































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          BILL SUMMARY: SB 863 would do the following:
          - Require lien claimants to file liens with the Workers' 
          Compensation Appeals Board (board) in writing and accompanied by 
          a statement or itemized voucher supporting the lien, justifying 
          the right to reimbursement, and proof of service.
          - Remove the board's authority to order specific medical liens 
          in a proceeding before the board without a request for the lien 
          having been made.
          - Prohibit a lien claim from being filed three years after the 
          services were provided, or more than 18 months after the 
          services were provided if the services were provided after July 
          1, 2012.
          - Authorize a health care service plan, group disability 
          insurer, self insured employee welfare benefits plan, or 
          publicly funded program providing medical benefits on a 
          nonindustrial basis to file a lien claim for medical expenses 
          within six months after the entity has notice that an industrial 
          injury is being claimed but in no event later than three years 
          from the date the services were provided to the employee.
          - Require the board to adopt rules of practice and procedure and 
          state that these provisions apply to liens that are filed with 
          the appeals board on or after the operative date of this bill 
          regardless of the date service were provided, except as 
          specified. 
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                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Reform of workers'     Unknown, likely significant, workload 
          Special*
          compensation lien process         reduction annually, ongoing

          Adoption of rules of practice     Minor costs, likely less than 
          $50, one time          Special*
          and procedure                                           

          * Workers' Compensation Administration Revolving Fund
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          STAFF COMMENTS: Within the workers' compensation system, liens 
          involving medical services or benefits are direct claims against 
          the defendant (either the employer or the insurer of the 








          SB 863 (Lieu)
          Page 3


          employer) for medical benefits or services provided by the lien 
          claimant (the injured worker) which the lien claimant thinks the 
          employer was required to provide due to the worker's industrial 
          injury.  The lien claimant may not pursue the lien against an 
          injured worker unless the injury is ruled to be non-industrial, 
          and therefore outside the workers' compensation system.  Liens 
          are a process for contesting the employer's determination (or 
          the determination of the employer's insurer) of the amount 
          payable for medical goods or services. By requiring liens be in 
          writing and served on all parties, as well as capped by a 
          reasonable statute of limitations to ensure that liens will be 
          filed and processed in a timely manner, this bill should reduce 
          both state and employer costs.