BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                        VETO


          Bill No:  SB 258
          Author:   Lieu (D)
          Amended:  8/30/13
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE  :  4-1, 5/8/13
          AYES:  Lieu, Leno, Padilla, Yee
          NOES:  Wyland

           SENATE FLOOR  :  25-11, 5/16/13
          AYES:  Beall, Block, Calderon, Corbett, Correa, DeSaulnier,  
            Evans, Galgiani, Hancock, Hernandez, Hill, Hueso, Jackson,  
            Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley, Roth,  
            Steinberg, Wolk, Wright, Yee
          NOES:  Anderson, Berryhill, Cannella, Emmerson, Fuller, Gaines,  
            Huff, Knight, Nielsen, Walters, Wyland
          NO VOTE RECORDED:  De Le�n, Price, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  51-25, 9/3/13 - See last page for vote

           SENATE FLOOR  :  26-11, 9/6/13
          AYES:  Beall, Block, Calderon, Corbett, Correa, De Le�n,  
            DeSaulnier, Evans, Galgiani, Hancock, Hernandez, Hill, Hueso,  
            Jackson, Lara, Lieu, Liu, Monning, Padilla, Pavley, Roth,  
            Steinberg, Torres, Wolk, Wright, Yee
          NOES:  Anderson, Berryhill, Cannella, Fuller, Gaines, Huff,  
            Knight, Nielsen, Vidak, Walters, Wyland
          NO VOTE RECORDED:  Emmerson, Leno, Vacancy


           SUBJECT  :    Workers compensation

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                                                                     SB 258
                                                                     Page  
          2

           SOURCE  :     Author


           DIGEST  :    This bill clarifies that recently enacted limitations  
          on assignment of liens apply only to assignments occurring on or  
          after January 1, 2013, makes technical clarifications to the  
          2012 workers' compensation reform statutes, and requires that  
          Workers' Compensation Appeals Board (WCAB) members be attorneys,  
          as specified.

           ANALYSIS  :    Existing law establishes a workers' compensation  
          system that provides benefits to an employee who suffers from an  
          injury or illness that arises out of and in the course of  
          employment, irrespective of fault.  This system requires all  
          employers to secure payment of benefits by either securing the  
          consent of the Department of Industrial Relations to self-insure  
          or by securing insurance against liability from an insurance  
          company duly authorized by the state.

          Existing law provides for the WCAB, a separate judicial body  
          that is vested with judicial authority to address disputes  
          within the workers' compensation system.  

          Existing law provides that the WCAB consists of seven members,  
          appointed by the Governor with the advice and consent of the  
          Senate.  Five of the members of the appeals board shall be  
          experienced attorneys at law admitted to practice in the State  
          of California.  Two members need not be attorneys at law.  

          Existing law permits the WCAB to determine and allow liens  
          against any sum to be paid as compensation for a variety of  
          services or expenses.  Allowable liens include a reasonable fee  
          for legal services, the reasonable expense incurred in the  
          provision of medical services, and the reasonable value of  
          living expenses of an injured employee subsequent to the injury.  
           

          Existing law prohibits an order or award for payment of a lien  
          to an assignee, unless the person who provided the services has  
          ceased doing business in the capacity held at the time the  
          expenses were incurred and has assigned all right, title, and  
          interests in the remaining accounts receivable to the assignee.   



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                                                                     SB 258
                                                                     Page  
          3

          This bill clarifies that recently enacted limitations on  
          assignment of liens apply only to assignments occurring on or  
          after January 1, 2013, makes technical clarifications to the  
          2012 workers' compensation reform statutes, and requires that  
          WCAB members be attorneys.  Specifically, this bill: 

           1. Provides that all seven members of the WCAB must be  
             experienced attorneys admitted to practice in the State of  
             California. 

           2. Clarifies that limitations on assignment of medical liens  
             apply only to assignments made on or after January 1, 2013. 

           3. Corrects an erroneous citation to "subdivision (d) of  
             Section 4604.5" relating to chiropractic treatment in  
             workers' compensation that should read "subdivision (c) of  
             Section 4604.5." 

           4. Clarifies that the reimbursement of the filing fee that a  
             lien claimant is entitled to receive upon prevailing in the  
             proceeding to collect on the lien is paid by the employer. 

           5. Strikes out references to "vocational rehabilitation  
             services" in one LAB Section that should have been stricken  
             nine years ago when that benefit was eliminated from the  
             workers' compensation system.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           GOVERNOR'S VETO MESSAGE:
           
               "I am returning Senate Bill 258 without my signature. 

               This measure clarifies the intent of last year's historic  
               Workers' Compensation reform as it relates to assignment of  
               medical liens and the prospective nature of the new  
               requirements - - I agree with that. Unfortunately, the bill  
               also makes an unnecessary change to the qualifications for  
               appointment to the Workers' Compensation Appeals Board. 

               The existing option to appoint qualified non-attorneys to  
               two of the seven slots is reasonable.  I see no reason to  
               limit future Governors in their authority to appoint  

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                                                                     SB 258
                                                                     Page  
          4

               members of the Workers' Compensation Appeals Board. 

               I will work with the Legislature next year to make the  
               clarification that assignment of medical liens was intended  
               to be prospective under SB 863 (Chapter 363, Statutes of  
               2012)."

           ASSEMBLY FLOOR  : 51-25, 09/03/13
          AYES: Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier,  
            Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Roger Hern�ndez,  
            Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell,  
            Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel P�rez,  
            Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Weber,  
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES: Achadjian, Allen, Bigelow, Ch�vez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,  
            Linder, Logue, Maienschein, Mansoor, Melendez, Morrell,  
            Nestande, Olsen, Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED: Hall, Quirk, Vacancy, Vacancy


          PQ:k:n  1/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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