AB 2883: Workers’ compensation: employees.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-08-26
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment.
Existing law defines an employee, for purposes of the laws governing workers compensation, to include, among other persons, officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. Existing law excludes from that definition, among other persons, officers and directors of a private corporation who are the sole shareholders of the corporation and working members of a partnership or limited liability company, as specified, unless they elect to come under the compensation provisions of the laws governing workers compensation.
This bill would revise those exceptions from the definition of an employee to apply to an officer or member of the board of directors, as specified, if he or she owns at least 15% of the issued and outstanding stock of the corporation, or an individual who is a general partner of a partnership or a managing member of a limited liability company, and that person elects to be excluded by executing a written waiver of his or her rights under the laws governing workers compensation, stating under penalty of perjury that he or she is a qualifying officer or director, or a qualifying general partner or managing member, as applicable. The bill would specify the effective date of the waivers.
The bill would also make technical and clarifying changes to the provision excluding specified persons from the definition of employee.
The bill would also delete obsolete provisions.
Existing law proscribes the crime of perjury.
By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment.
Existing law defines an employee, for purposes of the laws governing workers compensation, to include, among other persons, officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. Existing law excludes from that definition, among other persons, officers and directors of a private corporation who are the sole shareholders of the corporation and working members of a partnership or limited liability company, as specified, unless they elect to come under the compensation provisions of the laws governing workers compensation.
This bill would revise those exceptions from the definition of an employee to apply to an officer or member of the board of directors, as specified, if he or she owns at least 15% of the issued and outstanding stock of the corporation, or an individual who is a general partner of a partnership or a managing member of a limited liability company, and that person elects to be excluded by executing a written waiver of his or her rights under the laws governing workers compensation, stating under penalty of perjury that he or she is a qualifying officer or director, or a qualifying general partner or managing member, as applicable. The bill would specify the effective date of the waivers.
The bill would also make technical and clarifying changes to the provision excluding specified persons from the definition of employee.
The bill would also delete obsolete provisions.
Existing law proscribes the crime of perjury.
By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines utilization review as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.
Existing law also establishes the Commission on Health and Safety and Workers Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.
This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees and improve the clarity and quality of communication between physicians and the employers utilization review process. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study. The bill would also delete obsolete provisions.
Existing law defines an employee, for purposes of the laws governing workers compensation, to include, among other persons, officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. Existing law excludes from that definition, among other persons, officers and directors of a private corporation who are the sole shareholders of the corporation and working members of a partnership or limited liability company, as specified, unless they elect to come under the compensation provisions of the laws governing workers compensation.
This bill would revise those exceptions from the definition of an employee to apply to an officer or member of the board of directors, as specified, if he or she owns at least 15% of the issued and outstanding stock of the corporation, or an individual who is a general partner of a partnership or a managing member of a limited liability company, and that person elects to be excluded by executing a written waiver of his or her rights under the laws governing workers compensation, stating under penalty of perjury that he or she is a qualifying officer or director, or a qualifying general partner or managing member, as applicable. The bill would specify the effective date of the waivers.
The bill would also make technical and clarifying changes to the provision excluding specified persons from the definition of employee.
The bill would also delete obsolete provisions.
Existing law proscribes the crime of perjury.
By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines utilization review as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.
Existing law also establishes the Commission on Health and Safety and Workers Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.
This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees and improve the clarity and quality of communication between physicians and the employers utilization review process. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study. The bill would also delete obsolete provisions.
Existing law defines an employee, for purposes of the laws governing workers compensation, to include, among other persons, officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. Existing law excludes from that definition, among other persons, officers and directors of a private corporation who are the sole shareholders of the corporation and working members of a partnership or limited liability company, as specified, unless they elect to come under the compensation provisions of the laws governing workers compensation.
This bill would revise those exceptions from the definition of an employee to apply to an officer or member of the board of directors, as specified, if he or she owns at least 15% of the issued and outstanding stock of the corporation, or an individual who is a general partner of a partnership or a managing member of a limited liability company, and that person elects to be excluded by executing a written waiver of his or her rights under the laws governing workers compensation, stating under penalty of perjury that he or she is a qualifying officer or director, or a qualifying general partner or managing member, as applicable. The bill would specify the effective date of the waivers.
The bill would also make technical and clarifying changes to the provision excluding specified persons from the definition of employee.
Existing law proscribes the crime of perjury.
By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines utilization review as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.
Existing law also establishes the Commission on Health and Safety and Workers Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.
This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees and improve the clarity and quality of communication between physicians and the employers utilization review process. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study. The bill would also delete obsolete provisions.
Existing law defines an employee, for purposes of the laws governing workers compensation, to include, among other persons, officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. Existing law excludes from that definition, among other persons, officers and directors of a private corporation who are the sole shareholders of the corporation and working members of a partnership or limited liability company, as specified, unless they elect to come under the compensation provisions of the laws governing workers compensation.
This bill would revise those exceptions from the definition of an employee to apply to an officer or member of the board of directors, as specified, if he or she owns at least 15% of the issued and outstanding stock of the corporation, or an individual who is a general partner of a partnership or a managing member of a limited liability company, and that person elects to be excluded by executing a written waiver of his or her rights under the laws governing workers compensation, stating under penalty of perjury that he or she is a qualifying officer or director, or a qualifying general partner or managing member, as applicable. The bill would specify the effective date of the waivers.
The bill would also make technical and clarifying changes to the provision excluding specified persons from the definition of employee.
Existing law proscribes the crime of perjury.
By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines utilization review as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.
Existing law also establishes the Commission on Health and Safety and Workers Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.
This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees. employees and improve the clarity and quality of communication between physicians and the employers utilization review process. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study. The bill would also delete obsolete provisions.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines utilization review as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.
Existing law also establishes the Commission on Health and Safety and Workers Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.
This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study. The bill would also delete obsolete provisions.
Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, within the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires every employer to establish a utilization review process, and defines utilization review as utilization review or utilization management functions that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve an injured worker from the effects of his or her injury, treatment recommendations by physicians, prior to, retrospectively, or concurrent with providing medical treatment services.
Existing law also establishes the Commission on Health and Safety and Workers Compensation in the department. Existing law directs the commission to conduct a continuing examination of the workers compensation system and of the states activities to prevent industrial injuries and occupational diseases. Existing law also authorizes the commission to conduct or contract for studies it deems necessary to carry out its responsibilities.
This bill would require the commission to conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The bill would provide that the primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees. The bill would require the commission to consult with stakeholders, as specified, and would grant the commission discretion to decide whether to conduct or contract for the conduct of the feasibility study.
Employee means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes:
(a)Aliens and minors.
(b)All elected and appointed paid public officers.
(c)All officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. An officer or member of a board of directors may elect to be excluded from coverage in accordance with subdivision (p) of Section 3352.
(d)Except as provided in subdivision (h) of Section 3352, any person employed by the owner or occupant of a residential dwelling whose duties are incidental to the ownership, maintenance, or use of the dwelling, including the care and supervision of children, or whose duties are personal and not in the course of the trade, business, profession, or occupation of the owner or occupant.
(e)All persons incarcerated in a state penal or correctional institution while engaged in assigned work or employment as defined in paragraph (1) of subdivision (a) of Section 10021 of Title 8 of the California Code of Regulations, or engaged in work performed under contract.
(f)All working members of a partnership or limited liability company receiving wages irrespective of profits from the partnership or limited liability company. A general partner of a partnership or a managing member of a limited liability company may elect to be excluded from coverage in accordance with subdivision (q) of Section 3352.
SEC. 2.Section 3352 of the Labor Code is amended to read:3352.Employee excludes the following:
(a)A person defined in subdivision (d) of Section 3351 who is employed by his or her parent, spouse, or child.
(b)A person performing services in return for aid or sustenance only, received from any religious, charitable, or relief organization.
(c)A person holding an appointment as deputy clerk or deputy sheriff appointed for his or her own convenience, and who does not receive compensation from the county or municipal corporation or from the citizens of that county or municipal corporation for his or her services as the deputy. This exclusion is operative only as to employment by the county or municipal corporation and does not deprive that person from recourse against a private person employing him or her for injury occurring in the course of, and arising out of, the employment.
(d)A person performing voluntary services at or for a recreational camp, hut, or lodge operated by a nonprofit organization, exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, of which he or she or a member of his or her family is a member and who does not receive compensation for those services, other than meals, lodging, or transportation.
(e)A person performing voluntary service as a ski patrolman who does not receive compensation for those services, other than meals or lodging or the use of ski tow or ski lift facilities.
(f)A person employed by a ski lift operator to work at a snow ski area who is relieved of, and is not performing any, prescribed duties, while participating in recreational activities on his or her own initiative.
(g)A person, other than a regular employee, participating in sports or athletics who does not receive compensation for the participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, or other expenses incidental thereto.
(h)A person described in subdivision (d) of Section 3351 whose employment by the employer to be held liable, during the 90 calendar days immediately preceding the date of injury, for injuries as described in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury, for diseases or injuries as described in Section 5412, comes within either of the following descriptions:
(1)The employment was, or was contracted to be, for less than 52 hours.
(2)The employment was, or was contracted to be, for wages of not more than one hundred dollars ($100).
(i)A person performing voluntary service for a public agency or a private, nonprofit organization who does not receive remuneration for the services, other than meals, transportation, lodging, or reimbursement for incidental expenses.
(j)A person, other than a regular employee, performing officiating services relating to amateur sporting events sponsored by a public agency or private, nonprofit organization, who does not receive remuneration for these services, other than a stipend for each day of service no greater than the amount established by the Department of Human Resources as a per diem expense for employees or officers of the state. The stipend shall be presumed to cover incidental expenses involved in officiating, including, but not limited to, meals, transportation, lodging, rule books and courses, uniforms, and appropriate equipment.
(k)A student participating as an athlete in amateur sporting events sponsored by a public agency or public or private nonprofit college, university, or school, who does not receive remuneration for the participation, other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, scholarships, grants-in-aid, or other expenses incidental thereto.
(l)A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code.
(m)A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.39 of the Penal Code.
(n)A person, other than a regular employee, performing services as a sports official for an entity sponsoring an intercollegiate or interscholastic sports event, or any person performing services as a sports official for a public agency, public entity, or a private nonprofit organization, which public agency, public entity, or private nonprofit organization sponsors an amateur sports event. For purposes of this subdivision, sports official includes an umpire, referee, judge, scorekeeper, timekeeper, or other person who is a neutral participant in a sports event.
(o)A person who is an owner-builder, as defined in subdivision (a) of Section 50692 of the Health and Safety Code, who is participating in a mutual self-help housing program, as defined in Section 50087 of the Health and Safety Code, sponsored by a nonprofit corporation.
(p)An officer or member of the board of directors, as described in subdivision (c) of Section 3351, if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director. The waiver shall be effective upon the date of receipt and acceptance by the corporations insurance carrier and shall remain effective until the officer or member of the board of directors provides the insurance carrier with a written withdrawal of the waiver.
(q)An individual who is a general partner of a partnership or a managing member of a limited liability company who executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member. The waiver shall be effective upon the date of receipt and acceptance by the partnership or limited liability companys insurance carrier and shall remain effective until the general partner or managing member provides the insurance carrier with a written withdrawal of the waiver.
SEC. 3.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Employee means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes:
(a)Aliens and minors.
(b)All elected and appointed paid public officers.
(c)All officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. An officer or member of a board of directors may elect to be excluded from coverage in accordance with subdivision (p) of Section 3352.
(d)Except as provided in subdivision (h) of Section 3352, any person employed by the owner or occupant of a residential dwelling whose duties are incidental to the ownership, maintenance, or use of the dwelling, including the care and supervision of children, or whose duties are personal and not in the course of the trade, business, profession, or occupation of the owner or occupant.
(e)All persons incarcerated in a state penal or correctional institution while engaged in assigned work or employment as defined in paragraph (1) of subdivision (a) of Section 10021 of Title 8 of the California Code of Regulations, or engaged in work performed under contract.
(f)All working members of a partnership or limited liability company receiving wages irrespective of profits from the partnership or limited liability company. A general partner of a partnership or a managing member of a limited liability company may elect to be excluded from coverage in accordance with subdivision (q) of Section 3352.
SEC. 2.Section 3352 of the Labor Code is amended to read:3352.Employee excludes the following:
(a)A person defined in subdivision (d) of Section 3351 who is employed by his or her parent, spouse, or child.
(b)A person performing services in return for aid or sustenance only, received from any religious, charitable, or relief organization.
(c)A person holding an appointment as deputy clerk or deputy sheriff appointed for his or her own convenience, and who does not receive compensation from the county or municipal corporation or from the citizens of that county or municipal corporation for his or her services as the deputy. This exclusion is operative only as to employment by the county or municipal corporation and does not deprive that person from recourse against a private person employing him or her for injury occurring in the course of, and arising out of, the employment.
(d)A person performing voluntary services at or for a recreational camp, hut, or lodge operated by a nonprofit organization, exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, of which he or she or a member of his or her family is a member and who does not receive compensation for those services, other than meals, lodging, or transportation.
(e)A person performing voluntary service as a ski patrolman who does not receive compensation for those services, other than meals or lodging or the use of ski tow or ski lift facilities.
(f)A person employed by a ski lift operator to work at a snow ski area who is relieved of, and is not performing any, prescribed duties, while participating in recreational activities on his or her own initiative.
(g)A person, other than a regular employee, participating in sports or athletics who does not receive compensation for the participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, or other expenses incidental thereto.
(h)A person described in subdivision (d) of Section 3351 whose employment by the employer to be held liable, during the 90 calendar days immediately preceding the date of injury, for injuries as described in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury, for diseases or injuries as described in Section 5412, comes within either of the following descriptions:
(1)The employment was, or was contracted to be, for less than 52 hours.
(2)The employment was, or was contracted to be, for wages of not more than one hundred dollars ($100).
(i)A person performing voluntary service for a public agency or a private, nonprofit organization who does not receive remuneration for the services, other than meals, transportation, lodging, or reimbursement for incidental expenses.
(j)A person, other than a regular employee, performing officiating services relating to amateur sporting events sponsored by a public agency or private, nonprofit organization, who does not receive remuneration for these services, other than a stipend for each day of service no greater than the amount established by the Department of Human Resources as a per diem expense for employees or officers of the state. The stipend shall be presumed to cover incidental expenses involved in officiating, including, but not limited to, meals, transportation, lodging, rule books and courses, uniforms, and appropriate equipment.
(k)A student participating as an athlete in amateur sporting events sponsored by a public agency or public or private nonprofit college, university, or school, who does not receive remuneration for the participation, other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, scholarships, grants-in-aid, or other expenses incidental thereto.
(l)A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code.
(m)A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.39 of the Penal Code.
(n)A person, other than a regular employee, performing services as a sports official for an entity sponsoring an intercollegiate or interscholastic sports event, or any person performing services as a sports official for a public agency, public entity, or a private nonprofit organization, which public agency, public entity, or private nonprofit organization sponsors an amateur sports event. For purposes of this subdivision, sports official includes an umpire, referee, judge, scorekeeper, timekeeper, or other person who is a neutral participant in a sports event.
(o)A person who is an owner-builder, as defined in subdivision (a) of Section 50692 of the Health and Safety Code, who is participating in a mutual self-help housing program, as defined in Section 50087 of the Health and Safety Code, sponsored by a nonprofit corporation.
(p)An officer or member of the board of directors, as described in subdivision (c) of Section 3351, if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director. The waiver shall be effective upon the date of receipt and acceptance by the corporations insurance carrier and shall remain effective until the officer or member of the board of directors provides the insurance carrier with a written withdrawal of the waiver.
(q)An individual who is a general partner of a partnership or a managing member of a limited liability company who executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member. The waiver shall be effective upon the date of receipt and acceptance by the partnership or limited liability companys insurance carrier and shall remain effective until the general partner or managing member provides the insurance carrier with a written withdrawal of the waiver.
SEC. 3.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees and improve the clarity and quality of communication between physicians and the employers utilization review process. To make that determination, the study shall also include an assessment regarding the current state of infrastructure in place to meet this goal, and any additional costs and requirements for providers and the state that may be deemed necessary to ensure efficiency, interoperability, and privacy protections in making the change to a paperless system.
(b)The commission shall consult with stakeholders, including employers, employees, and medical providers, in conducting or contracting for the feasibility study pursuant to subdivision (a).
(c)The commission shall have discretion to decide whether to conduct or contract for the conduct of the feasibility study pursuant to this section.
SEC. 2.SECTION 1.Section 3351 of the Labor Code is amended to read:3351.Employee means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes:
(a)Aliens and minors.
(b)All elected and appointed paid public officers.
(c)All officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. An officer or member of a board of directors may elect to be excluded from coverage in accordance with subdivision (p) of Section 3352.
(d)Except as provided in subdivision (h) of Section 3352, any person employed by the owner or occupant of a residential dwelling whose duties are incidental to the ownership, maintenance, or use of the dwelling, including the care and supervision of children, or whose duties are personal and not in the course of the trade, business, profession, or occupation of the owner or occupant.
(e)All persons incarcerated in a state penal or correctional institution while engaged in assigned work or employment as defined in paragraph (1) of subdivision (a) of Section 10021 of Title 8 of the California Code of Regulations, or engaged in work performed under contract.
(f)All working members of a partnership or limited liability company receiving wages irrespective of profits from the partnership or limited liability company. A general partner of a partnership or a managing member of a limited liability company may elect to be excluded from coverage in accordance with subdivision (q) of Section 3352.
SEC. 3.SEC. 2.Section 3352 of the Labor Code is amended to read:3352.Employee excludes the following:
(a)A person defined in subdivision (d) of Section 3351 who is employed by his or her parent, spouse, or child.
(b)A person performing services in return for aid or sustenance only, received from any religious, charitable, or relief organization.
(c)A person holding an appointment as deputy clerk or deputy sheriff appointed for his or her own convenience, and who does not receive compensation from the county or municipal corporation or from the citizens of that county or municipal corporation for his or her services as the deputy. This exclusion is operative only as to employment by the county or municipal corporation and does not deprive that person from recourse against a private person employing him or her for injury occurring in the course of, and arising out of, the employment.
(d)A person performing voluntary services at or for a recreational camp, hut, or lodge operated by a nonprofit organization, exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, of which he or she or a member of his or her family is a member and who does not receive compensation for those services, other than meals, lodging, or transportation.
(e)A person performing voluntary service as a ski patrolman who does not receive compensation for those services, other than meals or lodging or the use of ski tow or ski lift facilities.
(f)A person employed by a ski lift operator to work at a snow ski area who is relieved of, and is not performing any, prescribed duties, while participating in recreational activities on his or her own initiative.
(g)A person, other than a regular employee, participating in sports or athletics who does not receive compensation for the participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, or other expenses incidental thereto.
(h)A person described in subdivision (d) of Section 3351 whose employment by the employer to be held liable, during the 90 calendar days immediately preceding the date of injury, for injuries as described in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury, for diseases or injuries as described in Section 5412, comes within either of the following descriptions:
(1)The employment was, or was contracted to be, for less than 52 hours.
(2)The employment was, or was contracted to be, for wages of not more than one hundred dollars ($100).
(i)A person performing voluntary service for a public agency or a private, nonprofit organization who does not receive remuneration for the services, other than meals, transportation, lodging, or reimbursement for incidental expenses.
(j)A person, other than a regular employee, performing officiating services relating to amateur sporting events sponsored by a public agency or private, nonprofit organization, who does not receive remuneration for these services, other than a stipend for each day of service no greater than the amount established by the Department of Human Resources as a per diem expense for employees or officers of the state. The stipend shall be presumed to cover incidental expenses involved in officiating, including, but not limited to, meals, transportation, lodging, rule books and courses, uniforms, and appropriate equipment.
(k)A student participating as an athlete in amateur sporting events sponsored by a public agency or public or private nonprofit college, university, or school, who does not receive remuneration for the participation, other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, scholarships, grants-in-aid, or other expenses incidental thereto.
(l)A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code.
(m)A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.39 of the Penal Code.
(n)A person, other than a regular employee, performing services as a sports official for an entity sponsoring an intercollegiate or interscholastic sports event, or any person performing services as a sports official for a public agency, public entity, or a private nonprofit organization, which public agency, public entity, or private nonprofit organization sponsors an amateur sports event. For purposes of this subdivision, sports official includes an umpire, referee, judge, scorekeeper, timekeeper, or other person who is a neutral participant in a sports event.
(o)A person who is an owner-builder, as defined in subdivision (a) of Section 50692 of the Health and Safety Code, who is participating in a mutual self-help housing program, as defined in Section 50087 of the Health and Safety Code, sponsored by a nonprofit corporation.
(p)An officer or member of the board of directors, as described in subdivision (c) of Section 3351, if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director. The waiver shall be effective upon the date of receipt and acceptance by the corporations insurance carrier and shall remain effective until the officer or member of the board of directors provides the insurance carrier with a written withdrawal of the waiver.
(q)An individual who is a general partner of a partnership or a managing member of a limited liability company who executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member. The waiver shall be effective upon the date of receipt and acceptance by the partnership or limited liability companys insurance carrier and shall remain effective until the general partner or managing member provides the insurance carrier with a written withdrawal of the waiver.
SEC. 4.SEC. 3.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.SEC. 5.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees and improve the clarity and quality of communication between physicians and the employers utilization review process. To make that determination, the study shall also include an assessment regarding the current state of infrastructure in place to meet this goal, and any additional costs and requirements for providers and the state that may be deemed necessary to ensure efficiency, interoperability, and privacy protections in making the change to a paperless system.
(b)The commission shall consult with stakeholders, including employers, employees, and medical providers, in conducting or contracting for the feasibility study pursuant to subdivision (a).
(c)The commission shall have discretion to decide whether to conduct or contract for the conduct of the feasibility study pursuant to this section.
SEC. 2.Section 3351 of the Labor Code is amended to read:3351.Employee means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes:
(a)Aliens and minors.
(b)All elected and appointed paid public officers.
(c)All officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay pay. An officer or member of a board of directors may elect to be excluded from coverage in accordance with subdivision (p) of Section 3352.
(d)Except as provided in subdivision (h) of Section 3352, any person employed by the owner or occupant of a residential dwelling whose duties are incidental to the ownership, maintenance, or use of the dwelling, including the care and supervision of children, or whose duties are personal and not in the course of the trade, business, profession, or occupation of the owner or occupant.
(e)All persons incarcerated in a state penal or correctional institution while engaged in assigned work or employment as defined in paragraph (1) of subdivision (a) of Section 10021 of Title 8 of the California Code of Regulations, or engaged in work performed under contract.
(f)All working members of a partnership or limited liability company receiving wages irrespective of profits from the partnership or limited liability company company. A general partner of a partnership or a managing member of a limited liability company may elect to be excluded from coverage in accordance with subdivision (q) of Section 3352.
SEC. 3.Section 3352 of the Labor Code is amended to read:3352.Employee excludes the following:
(a)A person defined in subdivision (d) of Section 3351 who is employed by his or her parent, spouse, or child.
(b)A person performing services in return for aid or sustenance only, received from any religious, charitable, or relief organization.
(c)A person holding an appointment as deputy clerk or deputy sheriff appointed for his or her own convenience, and who does not receive compensation from the county or municipal corporation or from the citizens of that county or municipal corporation for his or her services as the deputy. This exclusion is operative only as to employment by the county or municipal corporation and does not deprive that person from recourse against a private person employing him or her for injury occurring in the course of, and arising out of, the employment.
(d)A person performing voluntary services at or for a recreational camp, hut, or lodge operated by a nonprofit organization, exempt from federal income tax under Section 501 501(c)(3) of the Internal Revenue Code, of which he or she or a member of his or her family is a member and who does not receive compensation for those services, other than meals, lodging, or transportation.
(e)A person performing voluntary service as a ski patrolman who does not receive compensation for those services, other than meals or lodging or the use of ski tow or ski lift facilities.
(f)A person employed by a ski lift operator to work at a snow ski area who is relieved of, and is not performing any, prescribed duties, while participating in recreational activities on his or her own initiative.
(g)A person, other than a regular employee, participating in sports or athletics who does not receive compensation for the participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, or other expenses incidental thereto.
(h)A person described in subdivision (d) of Section 3351 whose employment by the employer to be held liable, during the 90 calendar days immediately preceding the date of injury, for injuries as described in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury, for diseases or injuries as described in Section 5412, comes within either of the following descriptions:
(1)The employment was, or was contracted to be, for less than 52 hours.
(2)The employment was, or was contracted to be, for wages of not more than one hundred dollars ($100).
(i)A person performing voluntary service for a public agency or a private, nonprofit organization who does not receive remuneration for the services, other than meals, transportation, lodging, or reimbursement for incidental expenses.
(j)A person, other than a regular employee, performing officiating services relating to amateur sporting events sponsored by a public agency or private, nonprofit organization, who does not receive remuneration for these services, other than a stipend for each day of service no greater than the amount established by the Department of Human Resources as a per diem expense for employees or officers of the state. The stipend shall be presumed to cover incidental expenses involved in officiating, including, but not limited to, meals, transportation, lodging, rule books and courses, uniforms, and appropriate equipment.
(k)A student participating as an athlete in amateur sporting events sponsored by a public agency or public or private nonprofit college, university, or school, who does not receive remuneration for the participation, other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, scholarships, grants-in-aid, or other expenses incidental thereto.
(l)A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code.
(m)A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.39 of the Penal Code.
(n)A person, other than a regular employee, performing services as a sports official for an entity sponsoring an intercollegiate or interscholastic sports event, or any person performing services as a sports official for a public agency, public entity, or a private nonprofit organization, which public agency, public entity, or private nonprofit organization sponsors an amateur sports event. For purposes of this subdivision, sports official includes an umpire, referee, judge, scorekeeper, timekeeper, or other person who is a neutral participant in a sports event.
(o)A person who is an owner-builder, as defined in subdivision (a) of Section 50692 of the Health and Safety Code, who is participating in a mutual self-help housing program, as defined in Section 50087 of the Health and Safety Code, sponsored by a nonprofit corporation.
(p)An officer or member of the board of directors, as described in subdivision (c) of Section 3351, if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director. The waiver shall be effective upon the date of receipt and acceptance by the corporations insurance carrier and shall remain effective until the officer or member of the board of directors provides the insurance carrier with a written withdrawal of the waiver.
(q)An individual who is a general partner of a partnership or a managing member of a limited liability company who executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member. The waiver shall be effective upon the date of receipt and acceptance by the partnership or limited liability companys insurance carrier and shall remain effective until the general partner or managing member provides the insurance carrier with a written withdrawal of the waiver.
SEC. 4.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees and improve the clarity and quality of communication between physicians and the employers utilization review process. To make that determination, the study shall also include an assessment regarding the current state of infrastructure in place to meet this goal, and any additional costs and requirements for providers and the state that may be deemed necessary to ensure efficiency, interoperability, and privacy protections in making the change to a paperless system.
(b)The commission shall consult with stakeholders, including employers, employees, and medical providers, in conducting or contracting for the feasibility study pursuant to subdivision (a).
(c)The commission shall have discretion to decide whether to conduct or contract for the conduct of the feasibility study pursuant to this section.
SEC. 2.Section 3351 of the Labor Code is amended to read:3351.Employee means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes:
(a)Aliens and minors.
(b)All elected and appointed paid public officers.
(c)All officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay; provided that, where the officers and directors of the private corporation are the sole shareholders thereof, the corporation and the officers and directors shall come under the compensation provisions of this division only by election as provided in subdivision (a) of Section 4151. pay may elect to be excluded from coverage in accordance with subdivision (p) of Section 3352.
(d)Except as provided in subdivision (h) of Section 3352, any person employed by the owner or occupant of a residential dwelling whose duties are incidental to the ownership, maintenance, or use of the dwelling, including the care and supervision of children, or whose duties are personal and not in the course of the trade, business, profession, or occupation of the owner or occupant.
(e)All persons incarcerated in a state penal or correctional institution while engaged in assigned work or employment as defined in paragraph (1) of subdivision (a) of Section 10021 of Title 8 of the California Code of Regulations, or engaged in work performed under contract.
(f)All working members of a partnership or limited liability company receiving wages irrespective of profits from the partnership or limited liability company; provided that where the working members of the partnership or limited liability company are general partners or managers, the partnership or limited liability company and the partners or managers shall come under the compensation provisions of this division only by election as provided in subdivision (a) of Section 4151. If a private corporation is a general partner or manager, working members of a partnership or limited liability company shall include the corporation and the officers and directors of the corporation, provided that the officers and directors are the sole shareholders of the corporation. If a limited liability company is a partner or member, working members of the partnership or limited liability company shall include the managers of the limited liability company. company may elect to be excluded from coverage in accordance with subdivision (q) of Section 3352.
(g)For the purposes of subdivisions (c) and (f), the persons holding the power to revoke a trust as to shares of a private corporation or as to general partnership or limited liability company interests held in the trust, shall be deemed to be the shareholders of the private corporation, or the general partners of the partnership, or the managers of the limited liability company.
SEC. 3.Section 3352 of the Labor Code is amended to read:3352.Employee excludes the following:
(a)Any A person defined in subdivision (d) of Section 3351 who is employed by his or her parent, spouse, or child.
(b)Any A person performing services in return for aid or sustenance only, received from any religious, charitable, or relief organization.
(c)Any A person holding an appointment as deputy clerk or deputy sheriff appointed for his or her own convenience, and who receives no does not receive compensation from the county or municipal corporation or from the citizens thereof of that county or municipal corporation for his or her services as the deputy. This exclusion is operative only as to employment by the county or municipal corporation and does not deprive any that person so deputized from recourse against a private person employing him or her for injury occurring in the course of of, and arising out of of, the employment.
(d)Any A person performing voluntary services at or for a recreational camp, hut, or lodge operated by a nonprofit organization, exempt from federal income tax under Section 101(6) 501 of the Internal Revenue Code, of which he or she or a member of his or her family is a member and who receives no does not receive compensation for those services services, other than meals, lodging, or transportation.
(e)Any A person performing voluntary service as a ski patrolman who receives no does not receive compensation for those services services, other than meals or lodging or the use of ski tow or ski lift facilities.
(f)Any A person employed by a ski lift operator to work at a snow ski area who is relieved of of, and is not performing any any, prescribed duties, while participating in recreational activities on his or her own initiative.
(g)Any A person, other than a regular employee, participating in sports or athletics who receives no does not receive compensation for the participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, or other expenses incidental thereto.
(h)Any person defined in subdivision (d) of Section 3351 who was employed by the employer to be held liable for less than 52 hours during the 90 calendar days immediately preceding the date of the injury for injuries, as defined in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury for injuries, as defined in Section 5412, or who earned less than one hundred dollars ($100) in wages from the employer during the 90 calendar days immediately preceding the date of the injury for injuries, as defined in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury for injuries, as defined in Section 5412.
(h)A person described in subdivision (d) of Section 3351 whose employment by the employer to be held liable, during the 90 calendar days immediately preceding the date of injury, for injuries as described in Section 5411, or during the 90 calendar days immediately preceding the date of the last employment in an occupation exposing the employee to the hazards of the disease or injury, for diseases or injuries as described in Section 5412, comes within either of the following descriptions:
(1)The employment was, or was contracted to be, for less than 52 hours.
(2)The employment was, or was contracted to be, for wages of not more than one hundred dollars ($100).
(i)Any A person performing voluntary service for a public agency or a private, nonprofit organization who receives no does not receive remuneration for the services services, other than meals, transportation, lodging, or reimbursement for incidental expenses.
(j)Any A person, other than a regular employee, performing officiating services relating to amateur sporting events sponsored by any a public agency or private, nonprofit organization, who receives no does not receive remuneration for these services services, other than a stipend for each day of service no greater than the amount established by the Department of Human Resources as a per diem expense for employees or officers of the state. The stipend shall be presumed to cover incidental expenses involved in officiating, including, but not limited to, meals, transportation, lodging, rule books and courses, uniforms, and appropriate equipment.
(k)Any A student participating as an athlete in amateur sporting events sponsored by any a public agency, agency or public or private nonprofit college, university university, or school, who receives no does not receive remuneration for the participation participation, other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, scholarships, grants-in-aid, or other expenses incidental thereto.
(l)Any A law enforcement officer who is regularly employed by a local or state law enforcement agency in an adjoining state and who is deputized to work under the supervision of a California peace officer pursuant to paragraph (4) of subdivision (a) of Section 832.6 of the Penal Code.
(m)Any A law enforcement officer who is regularly employed by the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety and who is acting as a peace officer in this state pursuant to subdivision (a) of Section 830.32 830.39 of the Penal Code.
(n)Any A person, other than a regular employee, performing services as a sports official for an entity sponsoring an intercollegiate or interscholastic sports event, or any person performing services as a sports official for a public agency, public entity, or a private nonprofit organization, which public agency, public entity, or private nonprofit organization sponsors an amateur sports event. For purposes of this subdivision, sports official includes an umpire, referee, judge, scorekeeper, timekeeper, or other person who is a neutral participant in a sports event.
(o)Any A person who is an owner-builder, as defined in subdivision (a) of Section 50692 of the Health and Safety Code, who is participating in a mutual self-help housing program, as defined in Section 50087 of the Health and Safety Code, sponsored by a nonprofit corporation.
(p)An officer or member of the board of directors, as described in subdivision (c) of Section 3351, if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director. The waiver shall be effective upon the date of receipt by the corporations insurance carrier and shall remain effective until the officer or member of the board of directors provides the insurance carrier with a written withdrawal of the waiver.
(q)An individual who is a general partner of a partnership or a managing member of a limited liability company who executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member. The waiver shall be effective upon the date of receipt by the partnership or limited liability companys insurance carrier and shall remain effective until the general partner or managing member provides the insurance carrier with a written withdrawal of the waiver.
SEC. 2.SEC. 4.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees. employees and improve the clarity and quality of communication between physicians and the employers utilization review process. To make that determination, the study shall also include an assessment regarding the current state of infrastructure in place to meet this goal, and any additional costs and requirements for providers and the state that may be deemed necessary to ensure efficiency, interoperability, and privacy protections in making the change to a paperless system.
(b)The commission shall consult with stakeholders, including employers, employees, and medical providers, in conducting or contracting for the feasibility study pursuant to subdivision (a).
(c)The commission shall have discretion to decide whether to conduct or contract for the conduct of the feasibility study pursuant to this section.
SEC. 2.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.(a)The commission shall conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees.
(b)The commission shall consult with stakeholders, including employers, employees, and medical providers, in conducting or contracting for the feasibility study pursuant to subdivision (a).
(c)The commission shall have discretion to decide whether to conduct or contract for the conduct of the feasibility study pursuant to this section.
SEC. 2.Section 6354.7 of the Labor Code, as added by Section 84 of Chapter 6 of the Statutes of 2002, is repealed.6354.7.(a)The Workers Occupational Safety and Health Education Fund is hereby created as a special account in the State Treasury. Proceeds of the fund may be expended, upon appropriation by the Legislature, by the Commission on Health and Safety and Workers Compensation for the purpose of establishing and maintaining a worker occupational safety and health training and education program and insurance loss control services coordinator. The director shall levy and collect fees to fund these purposes from insurers subject to Section 6354.5. However, the fee assessed against any insurer shall not exceed the greater of one hundred dollars ($100) or 0.0286 percent of paid workers compensation indemnity claims as reported for the previous calendar year to the designated rating organization for the analysis required under subdivision (b) of Section 11759.1 of the Insurance Code. All fees shall be deposited in the fund.
(b)The commission shall establish and maintain a worker safety and health training and education program. The purpose of the worker occupational safety and health training and education program shall be to promote awareness of the need for prevention education programs, to develop and provide injury and illness prevention education programs for employees and their representatives, and to deliver those awareness and training programs through a network of providers throughout the state. The commission may conduct the program directly or by means of contracts or interagency agreements.
(c)The commission shall establish an employer and worker advisory board for the program. The advisory board shall guide the development of curricula, teaching methods, and specific course material about occupational safety and health, and shall assist in providing links to the target audience and broadening the partnerships with worker-based organizations, labor studies programs, and others that are able to reach the target audience.
(d)The program shall include the development and provision of a needed core curriculum addressing competencies for effective participation in workplace injury and illness prevention programs and on joint labor-management health and safety committees. The core curriculum shall include an overview of the requirements related to injury and illness prevention programs and hazard communication.
(e)The program shall include the development and provision of additional training programs for any or all of the following categories:
(1)Industries on the high hazard list.
(2)Hazards that result in significant worker injuries, illnesses, or compensation costs.
(3)Industries or trades where workers are experiencing numerous or significant injuries or illnesses.
(4)Occupational groups with special needs, such as those who do not speak English as their first language, workers with limited literacy, young workers, and other traditionally underserved industries or groups of workers. Priority shall be given to training workers who are able to train other workers and workers who have significant health and safety responsibilities, such as those workers serving on a health and safety committee or serving as designated safety representatives.
(f)The program shall operate one or more libraries and distribution systems of occupational safety and health training material, which shall include, but not be limited to, all material developed by the program pursuant to this section.
(g)The advisory board shall annually prepare a written report evaluating the use and impact of programs developed.
(h)The payment of administrative costs incurred by the commission in conducting the program shall be made from the Workers Occupational Safety and Health Education Fund.
(a)The commission shall conduct, or contract for the conduct of, a feasibility study regarding the extent to which physicians requests for authorization of medical treatment for injured employees may be processed using an entirely paperless system. The primary focus of the feasibility study shall be to determine whether the change to a paperless system would reduce the time required to provide medical treatment services to injured employees.
(b)The commission shall consult with stakeholders, including employers, employees, and medical providers, in conducting or contracting for the feasibility study pursuant to subdivision (a).
(c)The commission shall have discretion to decide whether to conduct or contract for the conduct of the feasibility study pursuant to this section.
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Date
|
Status
|
|---|---|
| Jun 9, 2016 | Referred to Com. on L. & I.R. |
| Aug 26, 2016 | Chaptered by Secretary of State - Chapter 205, Statutes of 2016. |
| Aug 26, 2016 | Approved by the Governor. |
| Aug 18, 2016 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 15, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 5817.). |
| Aug 15, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 11, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 4871.). |
| Aug 11, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Aug 11, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 14 pursuant to Assembly Rule 77. |
| Aug 2, 2016 | Read second time and amended. Ordered to consent calendar. |
| Aug 1, 2016 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8, be amended, and ordered to consent calendar. |
| Jun 28, 2016 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 27, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 22). |
| Jun 13, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. & I.R. |
| Feb 25, 2016 | Read first time. To print. |
| Jun 2, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 1, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0.) |
| Jun 1, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0. Page 5113.) |
| Jun 1, 2016 | Read third time. Passed. Ordered to the Senate. |
| May 31, 2016 | Read second time. Ordered to third reading. |
| May 27, 2016 | Read second time and amended. Ordered returned to second reading. |
| May 27, 2016 | From committee: Amend, and do pass as amended. (Ayes 20. Noes 0.) (May 27). |
| Apr 13, 2016 | In committee: Set, first hearing. Referred to suspense file. |
| Apr 6, 2016 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (April 6). Re-referred to Com. on APPR. |
| Mar 30, 2016 | Re-referred to Com. on INS. |
| Mar 29, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended. |
| Mar 28, 2016 | Referred to Com. on INS. |
| Feb 26, 2016 | From printer. May be heard in committee March 27. |
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Date
|
Description
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Location
|
Votes
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|
|---|---|---|---|---|
| Aug 15, 2016 | AB 2883 INS. Concurrence in Senate Amendments By DALY | Assembly Floor |
Passed |
|
| Aug 11, 2016 | Consent Calendar 2nd AB2883 Committee On INS. (Daly) | Senate Floor |
Passed |
|
| Jun 22, 2016 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Labor and Industrial Relations |
Passed |
|
| Jun 1, 2016 | AB 2883 INS. Assembly Third Reading By DALY | Assembly Floor |
Passed |
|
| May 27, 2016 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 6, 2016 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Insurance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| ACIC | ** Support | Aug 15, 2016 |
| Association Of California Insurance Companies | ** Support | Aug 15, 2016 |
| California State Association Of Electrical Workers | ** Support | Aug 15, 2016 |
| California State Pipe Trades Council | ** Support | Aug 15, 2016 |
| Western States Council Of Sheet Metal Workers | ** Support | Aug 15, 2016 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2883
Author:(Committee on Insurance)
As Amended Ver:August 2, 2016
Majority vote
ASSEMBLY: | 80-0 | June 1, 2016 | SENATE: | 37-0 | (August 11, 2016) |
Original Committee Reference: INS.
SUMMARY: Clarifies the rules that govern when owners or officers of businesses may exclude themselves from workers' compensation coverage, and deletes a duplicative Labor Code Section.
The Senate amendments delete a mandate for the Commission on Health and Safety and Workers' Compensation to conduct a study, and add provisions that specify how officers and owners of employers can declare that they are not "employees" of the company for purposes of workers' compensation insurance.
EXISTING LAW:
- Contains two nearly identical Labor Code Sections numbered 6354.7 that establish a Workers' Occupational Safety and Health Education Fund, delineates the purposes of the Fund, and provides that the funds may be expended by the CHSWC.
- Provides that officers and owners of employers may opt out of workers' compensation coverage otherwise mandated for all employees of the company, but does not establish a clear procedure for how the opt out is to be accomplished.
FISCAL EFFECT: The bill was referred from the Senate Appropriations Committee pursuant to Senate Rule 28.8.
COMMENTS:
- Repeal of Labor Code Section 6354.7. Legislative Counsel engages annually in a "Code clean-up" review, and recently noted that there are two Sections with the same number that are virtually identical. Both were adopted in 2002 in separate bills by the same author. One bill was apparently aimed at workers' compensation administration, and the other aimed at benefits, but this provision managed to appear in both bills.
- Officers and owners. The law allows officers and owners to opt out of workers' compensation coverage. The premise is that as key personnel of the company, these people who meet the definition of employee are not necessarily in the class of employee who need the protection of the coverage mandate. If it makes more sense for these employees to opt out, then they should have that discretion. However, current law has resulted in abuses. For example, after a policy period where no losses have occurred, some companies have claimed that numerous employees were not supposed to be covered, and thereby retroactively reduced the premium owed. More perniciously, some employers were describing janitors as "vice-president of sanitation services" or similar designations, thereby denying legitimate employees of workers' compensation protection. This bill cures these issues.
Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0004134
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
CONSENT
Bill No: AB 2883
:
SENATE LABOR & IND. REL. COMMITTEE: 5-0, 6/22/16
AYES: Mendoza, Stone, Jackson, Leno, Mitchell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 80-0, 6/1/16 - See last page for vote
DIGEST: This bill specifies how officers and members of boards of directors at private corporations and managing members and general partners of Limited Liability Companies (LLCs) elect to not be covered by workers’ compensation policies.
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.
- Defines as an employee, for the purposes of workers’ compensation coverage, officers and members of boards of directors of quasi-public or private corporations, except in cases of officers and members who are the sole shareholders of a private corporation who do not elect to be covered by a workers’ compensation policy. (Labor Code §3351)
- Defines as an employee, for the purposes of workers’ compensation coverage, working members of a partnership or LLC receiving wages, except in cases where the managing or general partners do not elect to be covered by a workers’ compensation policy. (Labor Code §3351)
- Provides that medical, surgical, chiropractic, acupuncture, and hospital treatment 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. (Labor Code §4600)
- Requires that all employers create a utilization review process, which is a process that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve, treatment recommendations by physicians, prior to, retrospectively, or concurrent with the provision of medical treatment services. (Labor Code §4610)
This bill creates an explicit process through which an officer or member of a board of directors or working members of a partnership or LLC may elect to be excluded from a workers’ compensation policy. Specifically, this bill:
- Permits an officer or member of the board of directors to opt out of a workers’ compensation policy if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director.
- Permits an individual who is a general partner of a partnership or a managing member of a limited liability company to opt out of a workers’ compensation policy if he or she executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member.
- Requires that the waiver be effective upon the date of receipt by the corporation’s insurance carrier and remain effective until the officer, member of the board of directors, general partner, or managing partner provides the insurance carrier with a written withdrawal of the waiver.
Comments
Need for this bill? Under current law, nearly all employees must be covered through either a workers’ compensation insurance policy or a recognized self-insurance certificate. However, there are some limited exceptions to this rule. One example is officers and members of a board of directors of a private corporation or managing partners or general partners of a LLC. In those cases, the individual workers can elect to not be covered by the employer’s workers’ compensation policy.
However, the existing election process to opt out of coverage is not very clear. Beyond one limited statutory reference and very little regulatory guidance, insurers and LLCs are left to figure it out for themselves. The Association of California Insurance Companies, one of the supporters of this bill, argues that this lack of clarity has led to abuses that have hurt injured workers and driven fraudulent activity.
AB 2883 seeks to address this challenge by specifying, in the case of an officer or member of the board of directors, that he or she must own at least 15% of the stock of the corporation in order to opt out of workers’ compensation coverage, as well as sign a waiver stating that the individual is a qualifying officer or member. Similarly, AB 2883 also requires a general partner of a partnership or a managing member of a LLC to execute a waiver to opt out of workers’ compensation coverage.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Association of California Insurance Companies
California State Association of Electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Workers
None received
ARGUMENTS IN SUPPORT: Proponents argue that the existing exceptions that allows an officer or a member of a board of directors or a general partner to opt out of workers’ compensation coverage are intended to allow individuals who have a significant role in running the company or significant ownership shares to exempt themselves from workers’ compensation insurance. Existing law, especially as to what constitutes an eligible individual of a corporation is ambiguous and has resulted in abuse of this provision. One proponent notes an example where an insurer found a company trying to exclude the “vice-president of dishwashing.” In another example, a company provided coverage for all of their employees, but during the post audit conducted by the insurer, the company retroactively declared that several employees with a tiny ownership share were exempt under the corporate officer statute and demanded a premium refund. The proponents argue that AB 2883 addresses these issues by removing the uncertainty found in existing law by clearly defining what constitutes an eligible employee.
ASSEMBLY FLOOR: 80-0, 6/1/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
8/3/16 19:40:21
**** END ****
SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
Senator Tony Mendoza, Chair
2015 - 2016 Regular
Bill No: AB 2883 Hearing Date: June 22, 2016
Author: | Committee on Insurance | ||
Version: | June 13, 2016 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Gideon L. Baum | ||
Subject: Workers’ compensation: utilization review: employees
KEY ISSUE
Should the Legislature specify how officers and members of boards of directors at private corporations and managing members and general partners of Limited Liability Companies (LLCs) elect to not be covered by workers’ compensation policies?
Should the Legislature require the Commission on Health and Safety and Workers’ Compensation to conduct a study on the extent to which physicians’ requests for authorization of medical treatment for injured workers may be processed using an entirely paperless system?
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.
- Defines as an employee, for the purposes of workers’ compensation coverage, officers and members of boards of directors of quasi-public or private corporations, except in cases of officers and members who are the sole shareholders of a private corporation who do not elect to be covered by a workers’ compensation policy. (Labor Code §3351)
- Defines as an employee, for the purposes of workers’ compensation coverage, working members of a partnership or LLC receiving wages, except in cases where the managing or general partners do not elect to be covered by a workers’ compensation policy. (Labor Code §3351)
- Provides that medical, surgical, chiropractic, acupuncture, and hospital treatment 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. (Labor Code §4600)
- Requires that all employers create a utilization review process, which is a process that prospectively, retrospectively, or concurrently review and approve, modify, delay, or deny, based in whole or in part on medical necessity to cure and relieve, treatment recommendations by physicians, prior to, retrospectively, or concurrent with the provision of medical treatment services. (Labor Code §4610)
This bill creates an explicit process through which an officer or member of a board of directors or working members of a partnership or LLC may elect to be excluded from a workers’ compensation policy. Specifically, AB 2283 would:
- Permit an officer or member of the board of directors to opt out of a workers’ compensation policy if he or she owns at least 15 percent of the issued and outstanding stock of the corporation and executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying officer or director.
- Permit an individual who is a general partner of a partnership or a managing member of a limited liability company to opt out of a workers’ compensation policy if he or she executes a written waiver of his or her rights under this chapter stating under penalty of perjury that the person is a qualifying general partner or managing member.
- Require that the waiver be effective upon the date of receipt by the corporation’s insurance carrier and remain effective until the officer, member of the board of directors, general partner, or managing partner provides the insurance carrier with a written withdrawal of the waiver.
COMMENTS
1. Need for this bill?
Under current law, nearly all employees must be covered through either a workers’ compensation insurance policy or a recognized self-insurance certificate. However, there are some limited exceptions to this rule. One example is officers and members of a board of directors of a private corporation or managing partners or general partners of a LLC. In those cases, the individual workers can elect to not be covered by the employer’s workers’ compensation policy.
However, the existing election process to opt out of coverage is not very clear. Beyond one limited statutory reference and very little regulatory guidance, insurers and LLCs are left to figure it out for themselves. The Association of California Insurance Companies (ACIC), one of the supporters of this bill, argues that this lack of clarity has led to abuses that have hurt injured workers and driven fraudulent activity.
AB 2883 seeks to address this challenge by specifying, in the case of an officer or member of the board of directors, that he or she must own at least 15% of the stock of the corporation in order to opt out of workers’ compensation coverage, as well as sign a waiver stating that the individual is a qualifying officer or member. Similarly, AB 2883 also requires a general partner of a partnership or a managing member of a LLC to execute a waiver to opt out of workers’ compensation coverage.
2. Staff Comments:
Possible Amendments
First, the sentence structure of AB 2883 appears to assume that the officers and members of a private corporation or working members of a partnership or LLC receiving wages would automatically opt out of coverage. While that may not be the case, it does not assist statutory clarity. Therefore, the Committee may want to consider the following amendment:
- On page 4, line 13, strike “pay” and insert “pay. An officer or member of a board of directors”;
- On page 5, line 1, strike “company” and insert “company. A general partner of a partnership or a managing member of a limited liability company”.
Second, as noted above, the requirement of a signed waiver is key piece of a qualifying individual opting out of a workers’ compensation policy. However, the plain reading of the statute seems to imply that a waiver that was signed – but not accepted by an insurer as legitimate – would trigger the opt out. The Committee may wish to consider the following amendment:
- On page 8, line 7, strike “receipt” and insert “receipt and acceptance”
- On page 8, line 16, strike “receipt” and insert “receipt and acceptance”
Clarifying the LLC Exemption
As currently drafted, AB 2883 extends a clear exception from the requirements of being covered by a workers’ compensation policy to a managing member of a LLC. This is similar to language found in existing law, and insurance companies currently have exclusion endorsements for managing members of LLCs. However, the term “managing member of a limited liability company” is not defined in Labor Code or Corporations Code, where “general partner of a partnership” is defined. This may be something that should be clarified through a Letter to the Journal by the author.
3. Proponent Arguments:
Proponents argue that the existing exceptions that allows an officer or a member of a board of directors or a general partner to opt out of workers’ compensation coverage are intended to allow individuals who have a significant role in running the company or significant ownership shares to exempt themselves from workers’ compensation insurance. Existing law, especially as to what constitutes an eligible individual of a corporation is ambiguous and has resulted in abuse of this provision. One proponent notes an example where an insurer found a company trying to exclude the “vice-president of dishwashing.” In another example, a company provided coverage for all of their employees, but during the post audit conducted by the insurer, the company retroactively declared that several employees with a tiny ownership share were exempt under the corporate officer statute and demanded a premium refund. The proponents argue that AB 2883 addresses these issues by removing the uncertainty found in existing law by clearly defining what constitutes an eligible employee.
4. Opponent Arguments:
None on file.
SUPPORT
ACIC
California State Association of Electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Workers
OPPOSITION
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2883
Author:(Committee on Insurance)
As Amended Ver:May 27, 2016
Majority vote
Committee | Votes | Ayes | Noes |
Insurance | 13-0 | Daly, Melendez, Travis Allen, Bigelow, Calderon, Chu, Cooley, Cooper, Dababneh, Dahle, Frazier, Gatto, Rodriguez | |
Appropriations | 20-0 | Gonzalez, Bigelow, Bloom, Bonilla, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Roger Hernández, Holden, Jones, Obernolte, Quirk, Santiago, Wagner, Weber, Wood |
|
SUMMARY: Directs the Commission on Health and Safety and Workers' Compensation (CHSWC) to conduct a study on the viability of establishing a paperless system for approval of treatment requests in the workers' compensation system, and deletes a duplicative Labor Code Section.
EXISTING LAW:
- Establishes the CHSWC as a policy research entity within the Department of Industrial Relations. Commission members are appointed by the Governor, and there are an equal number of labor and employer representatives.
- Contains two nearly identical Labor Code Sections numbered 6354.7 that establish a Workers' Occupational Safety and Health Education Fund, delineates the purposes of the Fund, and provides that the funds may be expended by the CHSWC.
FISCAL EFFECT: Approximately $500,000 to $700,000 to pay for the study mandated by the bill.
COMMENTS:
- Paperless approvals. One of the points of frustration frequently cited by physicians with the workers' compensation system is the delays associated with obtaining approval for recommended treatment. While there may be other approaches that raise more complex policy debates, administrative streamlining is policy neutral. However, logistics and workability for a diverse provider base may pose challenges that need to be considered in moving toward a paperless, more efficient system for obtaining approval of treatment. The CHSWC is the appropriate entity to conduct this study. The parameters of the study, as set forth in the bill, were developed with provider input.
- Repeal of Labor Code Section 6354.7. Legislative Counsel engages annually in a "Code clean-up" review, and recently noted that there are two Sections with the same number that are virtually identical. Both were adopted in 2002 in separate bills by the same author. One bill was apparently aimed at workers' compensation administration, and the other aimed at benefits, but this provision managed to appear in both bills.
- Vehicle for consensus clean-up. As is the custom of the Insurance Committee, this bill will be a potential vehicle for non-controversial, consensus items in the event all relevant stakeholders agree on issues.
Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0003216
Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 2883
Author:(Committee on Insurance) – As Amended Ver:March 29, 2016
Policy Committee: | Insurance | Vote: | 13 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill directs the Commission on Health and Safety and Workers' Compensation (CHSWC) to conduct a study on the viability of establishing a paperless system for approval of treatment requests in the workers' compensation system, and deletes a duplicative Labor Code Section.
FISCAL EFFECT:
Costs of $500,000 -$700,000 to CHSWC within the Department of Industrial Relations to contract for the required study (Workers’ Compensation Administration Revolving Fund).
COMMENTS:
- Purpose. This bill is intended to address a source of frustration in the workers' compensation system: delays associated with obtaining approval for recommended treatment. The committee wishes to assess whether this process could be streamlined by an electronic system for approval of treatment requests, and indicates CHSWC is the appropriate entity to conduct this study.
- CHSWC examines the health and safety and workers’ compensation systems in California and makes recommendations to improve their operation. Commission members are appointed by the Governor, and there are an equal number of labor and employer representatives.
Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081
Date of Hearing: April 6, 2016
ASSEMBLY COMMITTEE ON INSURANCE
Tom Daly, Chair
ABPCA Bill Id:AB 2883 (
Author:Committee on Insurance) – As Amended Ver:March 29, 2016
SUBJECT: Workers’ compensation: utilization review
SUMMARY: Directs the Commission on Health and Safety and Workers' Compensation (CHSWC) to conduct a study on the viability of establishing a paperless system for approval of treatment requests in the workers' compensation system, and deletes a duplicative Labor Code Section.
EXISTING LAW:
- Establishes the CHSWC as a policy research entity within the Department of Industrial Relations. Commission members are appointed by the Governor, and there are an equal number of labor and employer representatives.
- Contains two nearly identical Labor Code Sections numbered 6354.7 that establish a Workers' Occupational Safety and Health Education Fund, delineates the purposes of the Fund, and provides that the funds may be expended by the CHSWC.
FISCAL EFFECT: Undetermined
COMMENTS:
- Paperless approvals. One of the points of frustration frequently cited by physicians with the workers' compensation system is the delays associated with obtaining approval for recommended treatment. While there may be other approaches that raise more complex policy debates, administrative streamlining is policy neutral. However, logistics and workability for a diverse provider base may pose challenges that need to be considered in moving toward a paperless, more efficient system for obtaining approval of treatment. The CHSWC is the appropriate entity to conduct this study.
- Repeal of Labor Code Section 6354.7. Legislative Counsel engages annually in a "Code clean-up" review, and recently noted that there are two Sections with the same number that are virtually identical. Both were adopted in 2002 in separate bills by the same author. One bill was apparently aimed at workers' compensation administration, and the other aimed at benefits, but this provision managed to appear in both bills.
- Vehicle for consensus clean-up. As is the custom of the Insurance Committee, this bill will be a potential vehicle for non-controversial, consensus items in the event all relevant stakeholders agree on issues.
REGISTERED SUPPORT / OPPOSITION:
Support
None received
Opposition
None received
Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086
Discussed in Hearing
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Bill Author
Bill Co-Author(s):