BILL ANALYSIS �
SB 1105
Page 1
Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1105 (Lieu) - As Amended: June 13, 2012
Policy Committee: InsuranceVote:13
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill places into statute the current practice of allowing
self-insured employee welfare benefits plans to file a lien for
the cost of living expense services provided to an injured
worker.
Specifically, this bill:
1)Provides that a self-insured employee welfare benefit plan may
file a living expense lien against an award of temporary
disability benefits in cases where the plan has paid the cost
of living expenses for the same days that the temporary
disability benefits are being awarded.
2)Defines a self-insured employee welfare benefit plan as a
plan, fund, or program established or maintained by an
employer, employee organization, or both, where it provides
benefits other than through insurance for hospital, medical or
surgical expenses, or other benefits in the event of sickness,
accident, disability, death, or unemployment.
FISCAL EFFECT
Costs associated with this legislation would be minor and
absorbable within existing Department of Industrial Relations
resources.
COMMENTS
1)Purpose . This bill allows self-insured employee welfare
benefit plans to file a living expense lien that would allow
the plans to recoup their costs in cases where temporary
SB 1105
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disability benefits have been awarded covering living expenses
for days already paid by the self-insured plan.
Current law allows for liens against these temporary
disability indemnity benefits where certain entities,
including when benefits are paid by a group disability policy,
have paid loss-of-income benefits to the injured worker. The
author argues that the type of benefits provided by an
employee welfare benefit plan are the same as those provided
by other types of coverage, so these plans should have the
same standing to file a lien as others similarly situated.
2)Support . The California Correctional Peace Officers
Association (CCPOA) argues that the bill would allow the CCPOA
Benefit Trust Fund, and other self-insured employee welfare
benefit plans, to recover, through a lien, amounts advanced to
its members for living expenses while their workers'
compensation case is being delayed for investigation or
pending resolution before the Workers' Compensation Appeals
Board. CCPOA argues that, currently, the trust has to
initiate a civil case if the member does not comply with his
or her agreement and return the funds advanced by the trust
upon resolution of the case by the Board. SB 1105 would allow
the trust to place a lien with the Board to directly recover
the money in an efficient manner.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081