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AB-1562 Workers’ compensation: reports.(2021-2022)

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Date Published: 03/01/2021 09:00 PM
AB1562:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1562


Introduced by Committee on Insurance

March 01, 2021


An act to amend Section 77 of, and to repeal Section 77.5 of, the Labor Code, relating to workers’ compensation.


LEGISLATIVE COUNSEL'S DIGEST


AB 1562, as introduced, Committee on Insurance. Workers’ compensation: reports.
(1) Existing law establishes a workers’ compensation system to compensate employees for injuries sustained in the course of their employment. Existing law establishes the Commission on Health and Safety and Workers’ Compensation in the Department of Industrial Relations and requires the commission to conduct a continuing examination of the workers’ compensation system and of the state’s activities to prevent industrial injuries and occupational diseases. Existing law requires the commission to issue an annual report on the state of the workers’ compensation system, including recommendations for modifications that would improve the operation of the system. Existing law requires the report to be made available to the Governor, the Legislature, and the public on request. Existing law also requires the commission to periodically issue a report and recommendations on the improvement and simplification of notices required to be provided by insurers and self-insured employers, as it deems necessary.
This bill would require the annual report on the workers’ compensation system to be made available on the commission’s internet website and to specifically be made available to the Assembly Committee on Insurance and the Senate Committee on Labor, Public Employment and Retirement rather than to the Legislature generally. The bill would also require the commission to provide its periodic report on the improvement and simplification of notices to the Assembly Committee on Insurance and the Senate Committee on Labor, Public Employment and Retirement.
(2) Existing law requires the commission to conduct and periodically update a survey and evaluation of evidence-based, peer-reviewed, nationally recognized standards of care, as specified.
This bill would repeal that requirement.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 77 of the Labor Code is amended to read:

77.
 (a) The commission shall conduct a continuing examination of the workers’ compensation system, as defined in Section 4 of Article XIV of the California Constitution, and of the state’s activities to prevent industrial injuries and occupational diseases. The commission may conduct or contract for studies it deems necessary to carry out its responsibilities. In carrying out its duties, the commission shall examine other states’ workers’ compensation programs and activities to prevent industrial injuries and occupational diseases. All state departments and agencies, and any rating organization licensed by the Insurance Commissioner pursuant to Article 3 (commencing with Section 11750) of Chapter 3 of Part 3 of Division 2 of the Insurance Code, shall cooperate with the commission and upon reasonable request provide information and data in their possession that the commission deems necessary for the purpose of carrying out its responsibilities. The commission shall issue an annual report on the state of the workers’ compensation system, including recommendations for administrative or legislative modifications which would improve the operation of the system. The report shall be made available to the Governor, the Legislature, and on the commission’s internet website and to the public on request. The report shall be provided to the Governor, the Assembly Committee on Insurance, and the Senate Committee on Labor, Public Employment and Retirement.
(b) On or before July 1, 2003, and periodically thereafter as it deems necessary, the commission shall issue a report and recommendations on the improvement and simplification of the notices required to be provided by insurers and self-insured employers. When the commission issues a report pursuant to this subdivision, it shall provide the report to both the Assembly Committee on Insurance and the Senate Committee on Labor, Public Employment and Retirement.
(c) The commission succeeds to, and is vested with, all of the powers, duties, purposes, responsibilities, and jurisdiction of the Health and Safety Commission which is hereby abolished, including the administration of grants to assist in establishing effective occupational injury and illness prevention programs.

SEC. 2.

 Section 77.5 of the Labor Code is repealed.
77.5.

(a)On or before July 1, 2004, the commission shall conduct a survey and evaluation of evidence-based, peer-reviewed, nationally recognized standards of care, including existing medical treatment utilization standards, including independent medical review, as used in other states, at the national level, and in other medical benefit systems. The survey shall be updated periodically.

(b)On or before October 1, 2004, the commission shall issue a report of its findings and recommendations to the administrative director for purposes of the adoption of a medical treatment utilization schedule.