BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 638
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 638 (Alejo) - As Introduced:  February 20, 2013 

          Policy Committee:                              InsuranceVote:13  
          - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows an employee of an illegally uninsured employer  
          to use an accelerated workers' compensation court timeline for  
          disputed issues of employment and injury.  Under current law,  
          the expedited process is reserved for employees with issues of  
          employment or injury who are represented by an attorney. 

           FISCAL EFFECT  

          1)On-going costs in excess of $500,000 per year (Workers'  
            Compensation Administrative Revolving Fund) for the Department  
            of Industrial Relations (DIR) to determine whether or not  
            workers are uninsured and qualify for the expedited process. 

          2)Unknown on-going costs due to the increased number of priority  
            hearings. 

           COMMENTS  

          Rationale  . According to the author, a disproportionate number of  
          workers whose employer is illegally uninsured are low-wage  
          workers who may not be able to afford an attorney.  Since these  
          workers do not have direct access to the medical care provided  
          by the insurer of a lawfully insured employer, these injured  
          workers must establish eligibility with the Workers'  
          Compensation Appeals Board, and it takes formal proceedings  
          before this class of injured worker can obtain benefits.  The  
          bill ensures that these proceedings occur expeditiously so that  
          needed medical care can be provided in a timely manner.










                                                                  AB 638
                                                                  Page  2

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081