Amended in Senate June 15, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2732

Introduced by Committee on Insurance (Assembly Members Perea (Chair), Hagman (Vice Chair), Bradford, Ian Calderon, Cooley, Dababneh, Frazier, Gonzalez, Nestande, V. Manuel Pérez, and Wieckowski)

February 25, 2014

An act to amend Sections 4600, 4610.5, 4903, 4903.07, 4903.8, begin insert and end insert 5410 begin delete , and 5502 end delete of the Labor Code, relating to workers’ compensation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2732, as amended, Committee on Insurance. Workers’ compensation.

(1) Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law generally provides for the reimbursement of medical providers for services rendered in connection with the treatment of a worker’s injury, and requires an employer to establish a medical treatment utilization review process, in compliance with specified requirements. Existing law provides for an independent medical review process to resolve disputes over a utilization review decision for injuries occurring on or after January 1, 2013, and for any decision that is communicated to the requesting physician on or after July 1, 2013, regardless of the date of injury. Under existing law, as part of its notification to the employee regarding an initial utilization review decision that denies, modifies, or delays a treatment recommendation, an employer is required to provide the employee with a one-page form prescribed by the administrative director, and an addressed envelope, which the employee may return to the administrative director or the administrative director’s designee to initiate an independent medical review. Under existing law, an employer is required to include on this form any information required by the administrative director to facilitate the completion of the independent medical review. Existing law specifies the required contents of the form.

This bill would revise the requirements applicable to utilization review procedures, by changing the maximum length of the above-described form to 2 pages.

(2) Existing law authorizes the Workers’ Compensation Appeals Board to determine and allow as liens against any sum to be paid as compensation, certain amounts, including, but not limited to, reasonable medical treatment expenses, except those disputes subject to independent medical review or independent bill review.

This bill would include in those amounts that the board is authorized to allow as liens certain medical-legal expenses to which the employee is entitled under a specified provision for the purpose of proving or disproving a disputed claim.

(3) Existing law requires that a lien claimant in a workers’ compensation matter is entitled to an order or award for reimbursement of a lien filing fee or lien activation fee, together with interest at the rate allowed on civil judgments, if certain conditions are satisfied.

This bill would specify that these fees are to be paid by the employer of the injured worker.

(4) Existing law requires an order or award for payment of a lien for medical or hospital treatment in a workers’ compensation matter to be made for payment only to the person who was entitled to payment for the expenses for medical or hospital treatment at the time the expenses were incurred, and not to an assignee unless the person has ceased doing business in the capacity held at the time the expenses were incurred and has assigned all right, title, and interest in the remaining accounts receivable to the assignee.

This bill would authorize an assignment of that payment if the assignment was completed prior to January 1, 2013, or if it was required by a contract that became enforceable and irrevocable prior to January 1, 2013. The bill would state that this provision is declarative of existing law.

(5) Existing law authorizes an injured worker to institute proceedings for the collection of compensation, including vocational rehabilitation services, within 5 years after the date of the injury upon the ground that the original injury has caused new and further disability or that providing vocational rehabilitation services has become feasible because the employee’s medical condition has improved or because of other factors not capable of determination at the time the employer’s liability for vocational rehabilitation services otherwise terminated.

This bill would delete the provisions relating to vocational rehabilitation, but retain the authority of an injured worker to institute proceedings for the collection of compensation within 5 years after the date of the injury upon the ground that the original injury has caused new and further disability.

(6) Existing law authorizes the Workers’ Compensation Appeals Board to determine and allow as liens against any sum to be paid as compensation, certain amounts, including, but not limited to, reasonable medical treatment expenses, except those disputes subject to independent medical review or independent bill review.

This bill would include in those amounts that the board is authorized to allow as liens certain medical-legal expenses to which the employee is entitled under a specified provision for the purpose of proving or disproving a disputed claim.

begin delete

(7) Existing law gives the Workers’ Compensation Appeals Board jurisdiction to adjudicate claims relating to workers’ compensation, and authorizes the administrative director to establish a priority calendar for issues requiring an expedited hearing and decision. The issues for which an expedited hearing may be held include a medical treatment appointment or medical-legal examination.

end delete begin delete

This bill would delete medical treatment appointments and medical-legal examinations from the list of issues qualifying for an expedited hearing.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 4600 of the Labor Code is amended to
read:

4600.  

(a) Medical, surgical, chiropractic, acupuncture, and
hospital treatment, including nursing, medicines, medical and
surgical supplies, crutches, and apparatuses, including orthotic and
prosthetic devices and services, that is reasonably required to cure
or relieve the injured worker from the effects of his or her injury
shall be provided by the employer. In the case of his or her neglect
or refusal reasonably to do so, the employer is liable for the
reasonable expense incurred by or on behalf of the employee in
providing treatment.

(b) As used in this division and notwithstanding any other law,
medical treatment that is reasonably required to cure or relieve the
injured worker from the effects of his or her injury means treatment
that is based upon the guidelines adopted by the administrative
director pursuant to Section 5307.27.

(c) Unless the employer or the employer’s insurer has
established or contracted with a medical provider network as
provided for in Section 4616, after 30 days from the date the injury
is reported, the employee may be treated by a physician of his or
her own choice or at a facility of his or her own choice within a
reasonable geographic area. A chiropractor shall not be a treating
physician after the employee has received the maximum number
of chiropractic visits allowed by subdivision (c) of Section 4604.5.

(d) (1) If an employee has notified his or her employer in
writing prior to the date of injury that he or she has a personal
physician, the employee shall have the right to be treated by that
physician from the date of injury if the employee has health care
coverage for nonoccupational injuries or illnesses on the date of
injury in a plan, policy, or fund as described in subdivisions (b),
(c), and (d) of Section 4616.7.

(2) For purposes of paragraph (1), a personal physician shall
meet all of the following conditions:

(A) Be the employee’s regular physician and surgeon, licensed
pursuant to Chapter 5 (commencing with Section 2000) of Division
2 of the Business and Professions Code.

(B) Be the employee’s primary care physician and has
previously directed the medical treatment of the employee, and
who retains the employee’s medical records, including his or her
medical history. “Personal physician” includes a medical group,
if the medical group is a single corporation or partnership
composed of licensed doctors of medicine or osteopathy, which
operates an integrated multispecialty medical group providing
comprehensive medical services predominantly for
nonoccupational illnesses and injuries.

(C) The physician agrees to be predesignated.

(3) If the employee has health care coverage for nonoccupational
injuries or illnesses on the date of injury in a health care service
plan licensed pursuant to Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code, and the
employer is notified pursuant to paragraph (1), all medical
treatment, utilization review of medical treatment, access to
medical treatment, and other medical treatment issues shall be
governed by Chapter 2.2 (commencing with Section 1340) of
Division 2 of the Health and Safety Code. Disputes regarding the
provision of medical treatment shall be resolved pursuant to Article
5.55 (commencing with Section 1374.30) of Chapter 2.2 of
Division 2 of the Health and Safety Code.

(4) If the employee has health care coverage for nonoccupational
injuries or illnesses on the date of injury in a group health insurance
policy as described in Section 4616.7, all medical treatment,
utilization review of medical treatment, access to medical
treatment, and other medical treatment issues shall be governed
by the applicable provisions of the Insurance Code.

(5) The insurer may require prior authorization of any
nonemergency treatment or diagnostic service and may conduct
reasonably necessary utilization review pursuant to Section 4610.

(6) An employee shall be entitled to all medically appropriate
referrals by the personal physician to other physicians or medical
providers within the nonoccupational health care plan. An
employee shall be entitled to treatment by physicians or other
medical providers outside of the nonoccupational health care plan
pursuant to standards established in Article 5 (commencing with
Section 1367) of Chapter 2.2 of Division 2 of the Health and Safety
Code.

(e) (1) When at the request of the employer, the employer’s
insurer, the administrative director, the appeals board, or a workers’
compensation administrative law judge, the employee submits to
examination by a physician, he or she shall be entitled to receive,
in addition to all other benefits herein provided, all reasonable
expenses of transportation, meals, and lodging incident to reporting
for the examination, together with one day of temporary disability
indemnity for each day of wages lost in submitting to the
examination.

(2) Regardless of the date of injury, “reasonable expenses of
transportation” includes mileage fees from the employee’s home
to the place of the examination and back at the rate of twenty-one
cents ($0.21) a mile or the mileage rate adopted by the Director
of Human Resources pursuant to Section 19820 of the Government
Code, whichever is higher, plus any bridge tolls. The mileage and
tolls shall be paid to the employee at the time he or she is given
notification of the time and place of the examination.

(f) When at the request of the employer, the employer’s insurer,
the administrative director, the appeals board, or a workers’
compensation administrative law judge, an employee submits to
examination by a physician and the employee does not proficiently
speak or understand the English language, he or she shall be
entitled to the services of a qualified interpreter in accordance with
conditions and a fee schedule prescribed by the administrative
director. These services shall be provided by the employer. For
purposes of this section, “qualified interpreter” means a language
interpreter certified, or deemed certified, pursuant to Article 8
(commencing with Section 11435.05) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of, or Section 68566 of, the Government
Code.

(g) If the injured employee cannot effectively communicate
with his or her treating physician because he or she cannot
proficiently speak or understand the English language, the injured
employee is entitled to the services of a qualified interpreter during
medical treatment appointments. To be a qualified interpreter for
purposes of medical treatment appointments, an interpreter is not
required to meet the requirements of subdivision (f), but shall meet
any requirements established by rule by the administrative director
that are substantially similar to the requirements set forth in Section
1367.04 of the Health and Safety Code. The administrative director
shall adopt a fee schedule for qualified interpreter fees in
accordance with this section. Upon request of the injured employee,
the employer or insurance carrier shall pay for interpreter services.
An employer shall not be required to pay for the services of an
interpreter who is not certified or is provisionally certified by the
person conducting the medical treatment or examination unless
either the employer consents in advance to the selection of the
individual who provides the interpreting service or the injured
worker requires interpreting service in a language other than the
languages designated pursuant to Section 11435.40 of the
Government Code.

(h) Home health care services shall be provided as medical
treatment only if reasonably required to cure or relieve the injured
employee from the effects of his or her injury and prescribed by
a physician and surgeon licensed pursuant to Chapter 5
(commencing with Section 2000) of Division 2 of the Business
and Professions Code, and subject to Section 5307.1 or 5703.8.
The employer shall not be liable for home health care services that
are provided more than 14 days prior to the date of the employer’s
receipt of the physician’s prescription.

SEC. 2.  

Section 4610.5 of the Labor Code is amended to read:

4610.5.  

(a) This section applies to the following disputes:

(1) Any dispute over a utilization review decision regarding
treatment for an injury occurring on or after January 1, 2013.

(2) Any dispute over a utilization review decision if the decision
is communicated to the requesting physician on or after July 1,
2013, regardless of the date of injury.

(b) A dispute described in subdivision (a) shall be resolved only
in accordance with this section.

(c) For purposes of this section and Section 4610.6, the
following definitions apply:

(1) “Disputed medical treatment” means medical treatment that
has been modified, delayed, or denied by a utilization review
decision.

(2) “Medically necessary” and “medical necessity” mean
medical treatment that is reasonably required to cure or relieve the
injured employee of the effects of his or her injury and based on
the following standards, which shall be applied in the order listed,
allowing reliance on a lower ranked standard only if every higher
ranked standard is inapplicable to the employee’s medical
condition:

(A) The guidelines adopted by the administrative director
pursuant to Section 5307.27.

(B) Peer-reviewed scientific and medical evidence regarding
the effectiveness of the disputed service.

(C) Nationally recognized professional standards.

(D) Expert opinion.

(E) Generally accepted standards of medical practice.

(F) Treatments that are likely to provide a benefit to a patient
for conditions for which other treatments are not clinically
efficacious.

(3) “Utilization review decision” means a decision pursuant to
Section 4610 to modify, delay, or deny, based in whole or in part
on medical necessity to cure or relieve, a treatment
recommendation or recommendations by a physician prior to,
retrospectively, or concurrent with begin insert , end insert the provision of medical
treatment services pursuant to Section 4600 or subdivision (c) of
Section 5402.

(4) Unless otherwise indicated by context, “employer” means
the employer, the insurer of an insured employer, a claims
administrator, or a utilization review organization, or other entity
acting on behalf of any of them.

(d) If a utilization review decision denies, modifies, or delays
a treatment recommendation, the employee may request an
independent medical review as provided by this section.

(e) A utilization review decision may be reviewed or appealed
only by independent medical review pursuant to this section.
Neither the employee nor the employer shall have any liability for
medical treatment furnished without the authorization of the
employer if the treatment is delayed, modified, or denied by a
utilization review decision unless the utilization review decision
is overturned by independent medical review in accordance with
this section.

(f) As part of its notification to the employee regarding an initial
utilization review decision that denies, modifies, or delays a
treatment recommendation, the employer shall provide the
employee with a form not to exceed two pages, prescribed by the
administrative director, and an addressed envelope, which the
employee may return to the administrative director or the
administrative director’s designee to initiate an independent
medical review. The employer shall include on the form any
information required by the administrative director to facilitate the
completion of the independent medical review. The form shall
also include all of the following:

(1) Notice that the utilization review decision is final unless the
employee requests independent medical review.

(2) A statement indicating the employee’s consent to obtain any
necessary medical records from the employer or insurer and from
any medical provider the employee may have consulted on the
matter, to be signed by the employee.

(3) Notice of the employee’s right to provide information or
documentation, either directly or through the employee’s physician,
regarding the following:

(A) The treating physician’s recommendation indicating that
the disputed medical treatment is medically necessary for the
employee’s medical condition.

(B) Medical information or justification that a disputed medical
treatment, on an urgent care or emergency basis, was medically
necessary for the employee’s medical condition.

(C) Reasonable information supporting the employee’s position
that the disputed medical treatment is or was medically necessary
for the employee’s medical condition, including all information
provided to the employee by the employer or by the treating
physician, still in the employee’s possession, concerning the
employer’s or the physician’s decision regarding the disputed
medical treatment, as well as any additional material that the
employee believes is relevant.

(g) The independent medical review process may be terminated
at any time upon the employer’s written authorization of the
disputed medical treatment.

(h) (1) The employee may submit a request for independent
medical review to the division no later than 30 days after the
service of the utilization review decision to the employee.

(2) If at the time of a utilization review decision the employer
is also disputing liability for the treatment for any reason besides
medical necessity, the time for the employee to submit a request
for independent medical review to the administrative director or
administrative director’s designee is extended to 30 days after
service of a notice to the employee showing that the other dispute
of liability has been resolved.

(3) If the employer fails to comply with subdivision (f) at the
time of notification of its utilization review decision, the time
limitations for the employee to submit a request for independent
medical review shall not begin to run until the employer provides
the required notice to the employee.

(4) A provider of emergency medical treatment when the
employee faced an imminent and serious threat to his or her health,
including, but not limited to, the potential loss of life, limb, or
other major bodily function, may submit a request for independent
medical review on its own behalf. A request submitted by a
provider pursuant to this paragraph shall be submitted to the
administrative director or administrative director’s designee within
the time limitations applicable for an employee to submit a request
for independent medical review.

(i) An employer shall not engage in any conduct that has the
effect of delaying the independent review process. Engaging in
that conduct or failure of the employer to promptly comply with
this section is a violation of this section and, in addition to any
other fines, penalties, and other remedies available to the
administrative director, the employer shall be subject to an
administrative penalty in an amount determined pursuant to
regulations to be adopted by the administrative director, not to
exceed five thousand dollars ($5,000) for each day that proper
notification to the employee is delayed. The administrative
penalties shall be paid to the Workers’ Compensation
Administration Revolving Fund.

(j) For purposes of this section, an employee may designate a
parent, guardian, conservator, relative, or other designee of the
employee as an agent to act on his or her behalf. A designation of
an agent executed prior to the utilization review decision shall not
be valid. The requesting physician may join with or otherwise
assist the employee in seeking an independent medical review,
and may advocate on behalf of the employee.

(k) The administrative director or his or her designee shall
expeditiously review requests and immediately notify the employee
and the employer in writing as to whether the request for an
independent medical review has been approved, in whole or in
part, and, if not approved, the reasons therefor. If there appears to
be any medical necessity issue, the dispute shall be resolved
pursuant to an independent medical review, except that, unless the
employer agrees that the case is eligible for independent medical
review, a request for independent medical review shall be deferred
if at the time of a utilization review decision the employer is also
disputing liability for the treatment for any reason besides medical
necessity.

(l) Upon notice from the administrative director that an
independent review organization has been assigned, the employer
shall provide to the independent medical review organization all
of the following documents within 10 days of notice of assignment:

(1) A copy of all of the employee’s medical records in the
possession of the employer or under the control of the employer
relevant to each of the following:

(A) The employee’s current medical condition.

(B) The medical treatment being provided by the employer.

(C) The disputed medical treatment requested by the employee.

(2) A copy of all information provided to the employee by the
employer concerning employer and provider decisions regarding
the disputed treatment.

(3) A copy of any materials the employee or the employee’s
provider submitted to the employer in support of the employee’s
request for the disputed treatment.

(4) A copy of any other relevant documents or information used
by the employer or its utilization review organization in
determining whether the disputed treatment should have been
provided, and any statements by the employer or its utilization
review organization explaining the reasons for the decision to
deny, modify, or delay the recommended treatment on the basis
of medical necessity. The employer shall concurrently provide a
copy of the documents required by this paragraph to the employee
and the requesting physician, except that documents previously
provided to the employee or physician need not be provided again
if a list of those documents is provided.

(m) Any newly developed or discovered relevant medical
records in the possession of the employer after the initial documents
are provided to the independent medical review organization shall
be forwarded immediately to the independent medical review
organization. The employer shall concurrently provide a copy of
medical records required by this subdivision to the employee or
the employee’s treating physician, unless the offer of medical
records is declined or otherwise prohibited by law. The
confidentiality of medical records shall be maintained pursuant to
applicable state and federal laws.

(n) If there is an imminent and serious threat to the health of
the employee, as specified in subdivision (c) of Section 1374.33
of the Health and Safety Code, all necessary information and
documents required by subdivision (l) shall be delivered to the
independent medical review organization within 24 hours of
approval of the request for review.

(o) The employer shall promptly issue a notification to the
employee, after submitting all of the required material to the
independent medical review organization, that lists documents
submitted and includes copies of material not previously provided
to the employee or the employee’s designee.

SEC. 3.  

Section 4903 of the Labor Code is amended to read:

4903.  

The appeals board may determine, and allow as liens
against any sum to be paid as compensation, any amount
determined as hereinafter set forth in subdivisions (a) through (i).
If more than one lien is allowed, the appeals board may determine
the priorities, if any, between the liens allowed. The liens that may
be allowed hereunder are as follows:

(a) A reasonable attorney’s fee for legal services pertaining to
any claim for compensation either before the appeals board or
before any of the appellate courts, and the reasonable disbursements
in connection therewith. No fee for legal services shall be awarded
to any representative who is not an attorney, except with respect
to those claims for compensation for which an application, pursuant
to Section 5501, has been filed with the appeals board on or before
December 31, 1991, or for which a disclosure form, pursuant to
Section 4906, has been sent to the employer, or insurer or
third-party administrator, if either is known, on or before December
31, 1991.

(b) The reasonable expense incurred by or on behalf of the
injured employee, as provided by Article 2 (commencing with
Section 4600), and to the extent the employee is entitled to
reimbursement under Section 4621, medical-legal expenses as
provided by Article 2.5 (commencing with Section 4620) of
Chapter 2 of Part 2, except those disputes subject to independent
medical review or independent bill review.

(c) The reasonable value of the living expenses of an injured
employee or of his or her dependents, subsequent to the injury.

(d) The reasonable burial expenses of the deceased employee,
not to exceed the amount provided for by Section 4701.

(e) The reasonable living expenses of the spouse or minor
children of the injured employee, or both, subsequent to the date
of the injury, where the employee has deserted or is neglecting his
or her family. These expenses shall be allowed in the proportion
that the appeals board deems proper, under application of the
spouse, guardian of the minor children, or the assignee, pursuant
to subdivision (a) of Section 11477 of the Welfare and Institutions
Code, of the spouse, a former spouse, or minor children. A
collection received as a result of a lien against a workers’
compensation award imposed pursuant to this subdivision for
payment of child support ordered by a court shall be credited as
provided in Section 695.221 of the Code of Civil Procedure.

(f) The amount of unemployment compensation disability
benefits that have been paid under or pursuant to the
Unemployment Insurance Code in those cases where, pending a
determination under this division there was uncertainty whether
the benefits were payable under the Unemployment Insurance
Code or payable hereunder; provided, however, that any lien under
this subdivision shall be allowed and paid as provided in Section
4904.

(g) The amount of unemployment compensation benefits and
extended duration benefits paid to the injured employee for the
same day or days for which he or she receives, or is entitled to
receive, temporary total disability indemnity payments under this
division; provided, however, that any lien under this subdivision
shall be allowed and paid as provided in Section 4904.

(h) The amount of family temporary disability insurance benefits
that have been paid to the injured employee pursuant to the
Unemployment Insurance Code for the same day or days for which
that employee receives, or is entitled to receive, temporary total
disability indemnity payments under this division, provided,
however, that any lien under this subdivision shall be allowed and
paid as provided in Section 4904.

(i) The amount of indemnification granted by the California
Victims of Crime Program pursuant to Article 1 (commencing
with Section 13959) of Chapter 5 of Part 4 of Division 3 of Title
2 of the Government Code.

SEC. 4.  

Section 4903.07 of the Labor Code is amended to read:

4903.07.  

(a) A lien claimant shall be entitled to an order or
award for reimbursement from the employer of a lien filing fee or
lien activation fee, together with interest at the rate allowed on
civil judgments, only if all of the following conditions are satisfied:

(1) Not less than 30 days before filing the lien for which the
filing fee was paid or filing the declaration of readiness for which
the lien activation fee was paid, the lien claimant has made written
demand for settlement of the lien claim for a clearly stated sum
which shall be inclusive of all claims of debt, interest, penalty, or
other claims potentially recoverable on the lien.

(2) The defendant fails to accept the settlement demand in
writing within 20 days of receipt of the demand for settlement, or
within any additional time as may be provide by the written
demand.

(3) After submission of the lien dispute to the appeals board or
an arbitrator, a final award is made in favor of the lien claimant
of a specified sum that is equal to or greater than the amount of
the settlement demand. The amount of the interest and filing fee
or lien activation fee shall not be considered in determining whether
the award is equal to or greater than the demand.

(b) This section shall not preclude an order or award of
reimbursement of the filing fee or activation fee pursuant to the
express terms of an agreed disposition of a lien dispute.

SEC. 5.  

Section 4903.8 of the Labor Code is amended to read:

4903.8.  

(a) (1) Any order or award for payment of a lien filed
pursuant to subdivision (b) of Section 4903 shall be made for
payment only to the person who was entitled to payment for the
expenses as provided in subdivision (b) of Section 4903 at the time
the expenses were incurred, and not to an assignee unless the
person has ceased doing business in the capacity held at the time
the expenses were incurred and has assigned all right, title, and
interest in the remaining accounts receivable to the assignee.

(2) Paragraph (1) does not apply to an assignment that was
completed prior to January 1, 2013, or that was required by a
contract that became enforceable and irrevocable prior to January
1, 2013. This paragraph is declarative of existing law.

(b) If there has been an assignment of a lien, either as an
assignment of all right, title, and interest in the accounts receivable
or as an assignment for collection, a true and correct copy of the
assignment shall be filed and served.

(1) If the lien is filed on or after January 1, 2013, and the
assignment occurs before the filing of the lien, the copy of the
assignment shall be served at the time the lien is filed.

(2) If the lien is filed on or after January 1, 2013, and the
assignment occurs after the filing of the lien, the copy of the
assignment shall be served within 20 days of the date of the
assignment.

(3) If the lien is filed before January 1, 2013, the copy of the
assignment shall be served by January 1, 2014, or with the filing
of a declaration of readiness or at the time of a lien hearing,
whichever is earliest.

(c) If there has been more than one assignment of the same
receivable or bill, the appeals board may set the matter for hearing
on whether the multiple assignments constitute bad-faith actions
or tactics that are frivolous, harassing, or intended to cause
unnecessary delay or expense. If so found by the appeals board,
appropriate sanctions, including costs and attorney’s fees, may be
awarded against the assignor, assignee, and their respective
attorneys.

(d) At the time of filing of a lien on or after January 1, 2013, or
in the case of a lien filed before January 1, 2013, at the earliest of
the filing of a declaration of readiness, a lien hearing, or January
1, 2014, supporting documentation shall be filed including one or
more declarations under penalty of perjury by a natural person or
persons competent to testify to the facts stated, declaring both of
the following:

(1) The services or products described in the bill for services
or products were actually provided to the injured employee.

(2) The billing statement attached to the lien truly and accurately
describes the services or products that were provided to the injured
employee.

(e) A lien submitted for filing on or after January 1, 2013, for
expenses provided in subdivision (b) of Section 4903, that does
not comply with the requirements of this section shall be deemed
to be invalid, whether or not accepted for filing by the appeals
board, and shall not operate to preserve or extend any time limit
for filing of the lien.

(f) This section shall take effect without regulatory action. The
appeals board and the administrative director may promulgate
regulations and forms for the implementation of this section.

SEC. 6.  

Section 5410 of the Labor Code is amended to read:

5410.  

Nothing in this chapter shall bar the right of any injured
worker to institute proceedings for the collection of compensation
within five years after the date of the injury upon the ground that
the original injury has caused new and further disability. The
jurisdiction of the appeals board in these cases shall be a continuing
jurisdiction within this period. This section does not extend the
limitation provided in Section 5407.

begin delete

SEC. 7.  

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 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 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, provided that if an expedited hearing is requested, no
other issue may be heard until the medical provider network dispute
is resolved:

(1) The employee’s entitlement to medical treatment pursuant
to Section 4600, except for treatment issues determined pursuant
to Sections 4610 and 4610.5.

(2) Whether the injured employee is required to obtain treatment
within a medical provider network.

(3) The employee’s entitlement to, or the amount of, temporary
disability indemnity payments.

(4) The employee’s entitlement to compensation from one or
more responsible employers when two or more employers dispute
liability as among themselves.

(5) Any other issues requiring an expedited hearing and
determination as prescribed in rules and regulations of the
administrative director.

(c) The 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) (1) In all cases, a mandatory settlement conference, except
a lien conference or a mandatory settlement lien 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, except a lien trial, 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.

(e) In cases involving the Director 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.

(f) Except as provided in subdivision (a) and in Section 4065,
the provisions of this section shall apply irrespective of the date
of injury.

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