Existing law, the Uniform Electronic Transactions Act, applies to certain electronic transactions and provides that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. The act provides that if a law requires a record to be in writing, or if a law requires a signature, an electronic record satisfies the law.

Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of the employees employment. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board. Existing law provides that the appeals board is vested with full power, authority, and jurisdiction to try and determine finally all the matters specified in those proceedings subject only to the review by the courts, as specified.

For purposes of the workers compensation system, this bill would allow documents that require a signature to be filed with an electronic signature, defined as an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record, where the electronic signature is attributable to the person, as specified, subject to specified restrictions or requirements.

Existing law, the Uniform Electronic Transactions Act, applies to certain electronic transactions and provides that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. The act provides that if a law requires a record to be in writing, or if a law requires a signature, an electronic record satisfies the law.

Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of the employees employment. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board. Existing law provides that the appeals board is vested with full power, authority, and jurisdiction to try and determine finally all the matters specified in those proceedings subject only to the review by the courts, as specified.

For purposes of the workers compensation system, this bill would allow documents that require a signature to be filed with an electronic signature, defined as an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record, where the electronic signature is attributable to the person, as specified, subject to specified restrictions or requirements.

Existing law, the Uniform Electronic Transactions Act, applies to certain electronic transactions and provides that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. The cct act provides that if a law requires a record to be in writing, or if a law requires a signature, an electronic record satisfies the law.

Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of the employees employment. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board. Existing law provides that the appeals board is vested with full power, authority, and jurisdiction to try and determine finally all the matters specified in those proceedings subject only to the review by the courts, as specified. Existing law requires every compromise and release agreement to be in writing and duly executed, signed by the employee or other beneficiary, and attested by 2 disinterested witnesses or acknowledged before a notary public.

Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of the employees employment. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board. Existing law provides that the appeals board is vested with full power, authority, and jurisdiction to try and determine finally all the matters specified in those proceedings subject only to the review by the courts, as specified. Existing law requires every compromise and release agreement to be in writing and duly executed, signed by the employee or other beneficiary, and attested by 2 disinterested witnesses or acknowledged before a notary public.

This bill would define signature for purposes of a proceeding before the board to include an electronic signature, as specified. defined in the Uniform Electronic Transactions Act and would apply the notarization procedures of that act to the above-described acknowledgment requirement.

Existing law establishes a workers compensation system, administered by the Administrative Director of the Division of Workers Compensation, to compensate an employee for injuries sustained in the course of the employees employment. Existing law establishes a Workers Compensation Appeals Board and sets forth various proceedings that are required to be brought forth before the board. Existing law provides that the appeals board is vested with full power, authority, and jurisdiction to try and determine finally all the matters specified in those proceedings subject only to the review by the courts, as specified.

This bill would define signature for purposes of a proceeding before the board to include an electronic signature, as specified.

Existing law, as it pertains to a workers compensation system, requires every compromise and release agreement to be in writing and duly executed, signed by the employee or other beneficiary, and attested by 2 disinterested witnesses or acknowledged before a notary public.

This bill would authorize the above-described signature requirement to be satisfied by an electronic signature and would authorize the above-described acknowledgment requirement to be satisfied by electronic signature provided an electronic record includes specified information.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2337

Author:(Dixon)

As Amended Ver:August 21, 2024

Majority vote

SUMMARY

Authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB).

Senate Amendments

Struck the previously proposed changes to existing Labor Code provisions, which would have authorized the use of electronic signatures in specified proceedings before the Workers' Compensation Appeals Board (WCAB) to instead allow the use of electronic signatures for purposes of the workers' compensation system, subject to restrictions or requirements that may be adopted by the administrative director or the WCAB, as provided. These amendments are considered technical and clarifying.

COMMENTS

On March 18, 2020, shortly after Governor Newsom declared a state of emergency in response to the spread of COVID-19, WCAB issued an en banc decision, Case No. MISC. NO. 260, with several orders, including authorization to use electronic signatures on compromise and release agreements. When the state of emergency was terminated by the Governor on February 28, 2023, WCAB issued another en banc decision, Case No. MISC. NO. 268, rescinding provisions of en banc orders made during the state of emergency, including those relating to the authorized use of electronic signatures, as contained in Case No. MISC. NO. 260.

With the rescission of that order, electronic signatures are no longer being allowed in workers’ compensation proceedings as they are not explicitly authorized under the Labor Code. This bill would codify the authorized use of electronic signatures on documents filed in proceedings before the WCAB.

In 1999, the Legislature passed the Uniform Electronic Transaction Act (UETA), which established uniform standards for conducting electronic transactions in California. (SB 820 (Sher), 1999.) The language in this bill conforms to UETA uniform standards.

According to the Author

AB 2337 is a commonsense measure that will authorize the use of electronic signatures in proceedings before the Workers' Compensation Appeals Board (WCAB). During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to the requirement of a "wet" signature. Electronic signatures were used effectively in workers' compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely used. AB 2337 will authorize the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, modernizing those proceedings for the benefit of all participants.

Arguments in Support

The California Lawyers Association, Workers' Compensation Section, the sponsor of this bill, writes in support noting: "Electronic signatures were used effectively in workers' compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, "Negligible costs to WCAB to reauthorize electronic signatures."

VOTES:

ASM INSURANCE: 12-0-3

YES: Calderon, Chen, Berman, Gipson, Lowenthal, Ortega, Joe Patterson, Petrie-Norris, Blanca Rubio, Valencia, Wallis, Wood

ABS, ABST OR NV: Alvarez, Bauer-Kahan, Jones-Sawyer

ASM JUDICIARY: 12-0-0

YES: Kalra, Dixon, Ting, Bryan, Connolly, Haney, Maienschein, McKinnor, Pacheco, Reyes, Sanchez, Waldron

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta

ABS, ABST OR NV: Villapudua

ASSEMBLY FLOOR: 73-0-7

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

ABS, ABST OR NV: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

UPDATED

VERSION: August 21, 2024

CONSULTANT: Claire Wendt / INS. / (916) 319-2086 FN: 0004705

 THIRD READING  

Bill No: AB 2337

Author: Dixon (R)

Amended: 8/21/24 in Senate

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 6/5/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

SENATE JUDICIARY COMMITTEE: 10-0, 6/18/24

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Niello, Roth, Stern, Wahab

NO VOTE RECORDED: Laird

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 73-0, 5/2/24 (Consent) - See last page for vote

SUBJECT: Workers’ compensation: electronic signatures

SOURCE: California Lawyers Association, Workers’ Compensation Section

DIGEST:

This bill authorizes documents that require a signature to be filed with the use of electronic signatures for purposes of the workers’ compensation system.

Senate Floor Amendments of 8/21/24 struck the previously proposed changes to existing Labor Code provisions which would have authorized the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB) to instead specify that the use of electronic signatures are authorized for all provisions under the workers’ compensation chapter of the Labor Code.

ANALYSIS:

Existing law:

1. 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 (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (California Constitution Article XIV §4, Labor Code §3200-6002)
2. Establishes the Division of Workers’ Compensation (DWC), within the Department of Industrial Relations (DIR), to monitor the administration of workers’ compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers’ compensation benefits. (Labor Code §110-139.6)
3. Establishes the WCAB within the DWC and grants the board all judicial power functions, as provided. (Labor Code §111 §133 & §3200)
4. Authorizes parties interested in compromising on any liability that is claimed to exist under workers’ compensation provisions, to do so through a release or compromise agreement signed by both parties and filed with the WCAB. (Labor Code §5000-5006)
5. Requires every compromise and release filed with the WCAB to be in writing and include the signature of the employee or other beneficiary that must be attested by two witnesses or acknowledged before a notary public, as specified. (Labor Code §5003)
6. Provides that “signature” or “subscription” includes a mark when the signer or subscriber cannot write, such signer’s or subscriber’s name being written near the mark by a witness who writes their own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto. (Labor Code §17)
7. Defines “electronic signature” for purposes of brokerage agreements, Uniform Electronic Transfer Act, Levying Officer Transfer Act, California Franchise Investment Law, Corporate Securities Law, and various purposes under the Financial Code and Code of Civil Procedure, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civil Code §1633(f), §1633.2(h); Code of Civil Procedure §17(b)(3), §263.1(c); Corporations Code §31158, §25620; Financial Code §12201, §17201, §22101)
8. Provides for the electronic filing of documents in civil actions, including the use of electronic signatures. (Code of Civil Procedure §1010.6)
9. Provides that if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public, as provided. (Civil Code §1633.11)

This bill:

1. Authorizes the use of electronic signatures for purposes of the workers’ compensation system and subject to restriction or requirements that may be adopted by the administrative director or the Workers’ Compensation Appeals Board.
2. Specifies that this authorization applies to all documents that require a signature, including the signature of a notary on an acknowledgement.
3. Defines “electronic signature” as an electronic sound, symbol or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record, as specified.

Background

Workers’ Compensation Benefits. Workers’ compensation benefits provide employees with the medical treatment needed to recover from work-related injury or illnesses, partially replace the wages lost while they recover, and help them return to work. The DWC monitors the administration of workers' compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for benefits.

The WCAB is the judicial body of the DWC whose major functions include:

1. Issuing judicial opinions in response to petitions for removal and reconsideration of decisions by workers’ compensation administrative law judges,
2. Representing the WCAB in appellate proceedings, and
3. Regulating the adjudication process by adopting rules of practice and procedure.

Through its published opinions and regulations, the WCAB provides guidance and leadership to the workers’ compensation community.

WCAB authorized the use of electronic signatures during the COVID-19 pandemic. As noted by the Assembly Insurance Committee analysis:

“On March 18, 2020, shortly after Governor Newsom declared a state of emergency in response to the spread of COVID-19, WCAB issued an en banc decision, Case No. MISC. NO. 260, with several orders, including authorization to use electronic signatures on compromise and release agreements. When the state of emergency was terminated by the Governor on February 28, 2023, WCAB issued another en banc decision, Case No. MISC. NO. 268, rescinding provisions of en banc orders made during the state of emergency, including those relating to the authorized use of electronic signatures, as contained in Case No. MISC. NO. 260.

“With the rescission of that order, electronic signatures are no longer being allowed in workers’ compensation proceedings as they are not explicitly authorized under the Labor Code. This bill would codify the authorized use of electronic signatures on a compromise and release and additional documents filed in proceedings before the WCAB.”

Modernizing Transactions. California has made efforts to modernize signature requirements in various areas of law and legal proceedings. In 1999, California enacted the Uniform Electronic Transaction Act (UETA) establishing uniform standards for conducting electronic transactions in the state. Specifically, the UETA established rules and procedures for the sending and receiving of electronic records and signatures, the formation of contracts using electronic records, the making and retention of electronic records and signatures, and the procedures governing changes and errors in electronically transmitted records. UETA additionally established the validity of transactions formed, transmitted and recorded electronically, and established the admissibility of electronic records in a legal proceeding.

Since then, California has continued to modernize signature requirements, including in some unemployment insurance code provisions. In 2022, AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022), among other things, required the Employment Development Department (EDD) to accept electronic signatures on all work sharing plan documents. This bill continues these efforts by authorizing the use of electronic signatures within the workers’ compensation system.

Related/Prior Legislation

AB 1879 (Gipson, 2024) allows, among other things, electronic signatures on property tax documents, as specified. The bill is pending on the Senate Floor.

AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022) required, among other things, the Employment Development Department to accept electronic signatures on all work sharing plan documents.

AB 1926 (Evans, Chapter 167, Statutes of 2010) provided trial courts with the ability to create, maintain, and preserve trial court records electronically under procedures and guidelines to be provided for by the Judicial Council.

AB 2394 (Brownley, Chapter 428, Statutes of 2010) established the Levying Officer Electronic Transactions Act, whereby a levying officer could use electronic methods to create, generate, send, receive, store, display, retrieve, or process information, electronic records, and documents, as specified.

AB 578 (Leno, Chapter 621, Statutes of 2004) enacted the Electronic Recording Delivery Act of 2004 regulating the electronic delivery, recording, and return of instruments affecting rights, title, or interest in real property.

SB 820 (Sher, Chapter 428, Statutes of 1999) created the Uniform Electronic Transaction Act, which authorized electronic signatures for contracting purposes.

SB 367 (Dunn, Chapter 514, Statutes of 1999) authorized courts to adopt local rules of court permitting electronic filing and service of documents, as specified.

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

SUPPORT: (Verified 8/21/24)

California Lawyers Association, Workers' Compensation Section (Source)

Acclamation Insurance Management Services

Allied Managed Care
American Property Casualty Insurance Association
Association of California Healthcare Districts
California Applicants' Attorneys Association
California Association of Joint Powers Authorities
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Joint Powers Insurance Authority
California Special Districts Association
California State Association of Counties
Housing Contractors of California

League of California Cities
Public Risk Innovation, Solutions, and Management
Urban Counties of California

OPPOSITION: (Verified 8/21/24)

None received

ARGUMENTS IN SUPPORT: According to the sponsors, the California Lawyers Association, Workers’ Compensation Section:

During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release form. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to “wet” signatures. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas. By authorizing the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, AB 2337 will modernize those proceedings for the benefit of all participants. This is a commonsense measure that will ensure efficiency and consistency in WCAB proceedings, removing unnecessary barriers in the process.

ASSEMBLY FLOOR: 73-0, 5/2/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

NO VOTE RECORDED: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

Prepared by: Alma Perez / L., P.E. & R. / (916) 651-1556

8/22/24 16:10:30

**** END ****

 THIRD READING  

Bill No: AB 2337

Author: Dixon (R)

Amended: 6/20/24 in Senate

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 6/5/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

SENATE JUDICIARY COMMITTEE: 10-0, 6/18/24

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Niello, Roth, Stern, Wahab

NO VOTE RECORDED: Laird

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 73-0, 5/2/24 (Consent) - See last page for vote

SUBJECT: Workers’ compensation: electronic signatures

SOURCE: California Lawyers Association, Workers’ Compensation Section

DIGEST:

This bill authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB).

ANALYSIS:

Existing law:

1. 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 (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (California Constitution Article XIV §4, Labor Code §3200-6002)
2. Establishes the Division of Workers’ Compensation (DWC), within the Department of Industrial Relations (DIR), to monitor the administration of workers’ compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers’ compensation benefits. (Labor Code §110-139.6)
3. Establishes the WCAB within the DWC and grants the board all judicial power functions, as provided. (Labor Code §111 §133 & §3200)
4. Authorizes parties interested in compromising on any liability that is claimed to exist under workers’ compensation provisions, to do so through a release or compromise agreement signed by both parties and filed with the WCAB. (Labor Code §5000-5006)
5. Requires every compromise and release filed with the WCAB to be in writing and include the signature of the employee or other beneficiary that must be attested by two witnesses or acknowledged before a notary public, as specified. (Labor Code §5003)
6. Provides that “signature” or “subscription” includes a mark when the signer or subscriber cannot write, such signer’s or subscriber’s name being written near the mark by a witness who writes their own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto. (Labor Code §17)
7. Defines “electronic signature” for purposes of brokerage agreements, Uniform Electronic Transfer Act, Levying Officer Transfer Act, California Franchise Investment Law, Corporate Securities Law, and various purposes under the Financial Code and Code of Civil Procedure, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civil Code §1633(f), §1633.2(h); Code of Civil Procedure §17(b)(3), §263.1(c); Corporations Code §31158, §25620; Financial Code §12201, §17201, §22101)
8. Provides for the electronic filing of documents in civil actions, including the use of electronic signatures. (Code of Civil Procedure §1010.6)
9. Provides that if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public, as provided. (Civil Code §1633.11)

This bill:

1. Authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board.
2. Defines “signature,” for purposes of proceedings before the WCAB, to include an electronic record or electronic signature attributable to a person if it was the act of the person, as specified.
3. Provides that for every compromise and release agreement, filed with the WCAB, the signature requirements may be satisfied by an electronic signature, as provided.
4. Specifies that the requirement of acknowledgment by a notary public may be satisfied by an electronic signature provided an electronic record includes the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.

Background

1. Workers’ Compensation Benefits. Workers’ compensation benefits provide employees with the medical treatment needed to recover from work related injury or illnesses, partially replace the wages lost while they recover, and help them return to work. The DWC monitors the administration of workers' compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for benefits.

The WCAB is the judicial body of the DWC whose major functions include:

1. Issuing judicial opinions in response to petitions for removal and reconsideration of decisions by workers’ compensation administrative law judges,
2. representing the WCAB in appellate proceedings, and
3. regulation of the adjudication process by adopting rules of practice and procedure.

Through its published opinions and regulations, the WCAB provides guidance and leadership to the workers’ compensation community.

1. WCAB authorized the use of electronic signatures during the COVID-19 pandemic. As noted by the Assembly Insurance Committee analysis: “On March 18, 2020, shortly after Governor Newsom declared a state of emergency in response to the spread of COVID-19, WCAB issued an en banc decision, Case No. MISC. NO. 260, with several orders, including authorization to use electronic signatures on compromise and release agreements. When the state of emergency was terminated by the Governor on February 28, 2023, WCAB issued another en banc decision, Case No. MISC. NO. 268, rescinding provisions of en banc orders made during the state of emergency, including those relating to the authorized use of electronic signatures, as contained in Case No. MISC. NO. 260.

“With the rescission of that order, electronic signatures are no longer being allowed in workers’ compensation proceedings as they are not explicitly authorized under the Labor Code. This bill would codify the authorized use of electronic signatures on a compromise and release and additional documents filed in proceedings before the WCAB.”

1. Modernizing Transactions. California has made efforts to modernize signature requirements in various areas of law and legal proceedings. In 1999, California enacted the Uniform Electronic Transaction Act (UETA) establishing uniform standards for conducting electronic transactions in the state. Specifically, the UETA established rules and procedures for the sending and receiving of electronic records and signatures, the formation of contracts using electronic records, the making and retention of electronic records and signatures, and the procedures governing changes and errors in electronically transmitted records. UETA additionally established the validity of transactions formed, transmitted and recorded electronically, and established the admissibility of electronic records in a legal proceeding.

Since then, California has continued to modernize signature requirements, including in some unemployment insurance code provisions. In 2022, AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022), among other things, required the Employment Development Department (EDD) to accept electronic signatures on all work sharing plan documents. This bill continues these efforts by authorizing the use of electronic signatures within the workers’ compensation system.

Related/Prior Legislation:

AB 1879 (Gipson, 2024) allows, among other things, electronic signatures on property tax documents, as specified. The bill is pending on the Senate Floor.

AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022) required, among other things, the Employment Development Department to accept electronic signatures on all work sharing plan documents.

AB 1926 (Evans, Chapter 167, Statutes of 2010) provided trial courts with the ability to create, maintain, and preserve trial court records electronically under procedures and guidelines to be provided for by the Judicial Council.

AB 2394 (Brownley, Chapter 428, Statutes of 2010) established the Levying Officer Electronic Transactions Act, whereby a levying officer could use electronic methods to create, generate, send, receive, store, display, retrieve, or process information, electronic records, and documents, as specified.

AB 578 (Leno, Chapter 621, Statutes of 2004) enacted the Electronic Recording Delivery Act of 2004 regulating the electronic delivery, recording, and return of instruments affecting rights, title, or interest in real property.

SB 820 (Sher, Chapter 428, Statutes of 1999) created the Uniform Electronic Transaction Act, which authorized electronic signatures for contracting purposes.

SB 367 (Dunn, Chapter 514, Statutes of 1999) authorized courts to adopt local rules of court permitting electronic filing and service of documents, as specified.

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

SUPPORT: (Verified 8/5/24)

California Lawyers Association, Workers' Compensation Section (Source)

Acclamation Insurance Management Services

Allied Managed Care
American Property Casualty Insurance Association
Association of California Healthcare Districts
California Applicants' Attorneys Association
California Association of Joint Powers Authorities
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Joint Powers Insurance Authority
California Special Districts Association
California State Association of Counties
Housing Contractors of California

League of California Cities
Public Risk Innovation, Solutions, and Management
Urban Counties of California

OPPOSITION: (Verified 8/5/24)

None received.

ARGUMENTS IN SUPPORT: According to the sponsors, the California Lawyers Association, Workers’ Compensation Section:

During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release form. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to “wet” signatures. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas. By authorizing the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, AB 2337 will modernize those proceedings for the benefit of all participants. This is a commonsense measure that will ensure efficiency and consistency in WCAB proceedings, removing unnecessary barriers in the process.

ASSEMBLY FLOOR: 73-0, 5/2/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

NO VOTE RECORDED: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

Prepared by: Alma Perez-Schwab / L., P.E. & R. / (916) 651-1556

8/8/24 10:43:17

**** END ****

 CONSENT  

Bill No: AB 2337

Author: Dixon (R)

Amended: 6/20/24 in Senate

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 6/5/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

SENATE JUDICIARY COMMITTEE: 10-0, 6/18/24

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Niello, Roth, Stern, Wahab

NO VOTE RECORDED: Laird

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 73-0, 5/2/24 (Consent) - See last page for vote

SUBJECT: Workers’ compensation: electronic signatures

SOURCE: California Lawyers Association, Workers’ Compensation Section

DIGEST:

This bill authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB).

ANALYSIS:

Existing law:

1. 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 (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (California Constitution Article XIV §4, Labor Code §3200-6002)
2. Establishes the Division of Workers’ Compensation (DWC), within the Department of Industrial Relations (DIR), to monitor the administration of workers’ compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers’ compensation benefits. (Labor Code §110-139.6)
3. Establishes the WCAB within the DWC and grants the board all judicial power functions, as provided. (Labor Code §111 §133 & §3200)
4. Authorizes parties interested in compromising on any liability that is claimed to exist under workers’ compensation provisions, to do so through a release or compromise agreement signed by both parties and filed with the WCAB. (Labor Code §5000-5006)
5. Requires every compromise and release filed with the WCAB to be in writing and include the signature of the employee or other beneficiary that must be attested by two witnesses or acknowledged before a notary public, as specified. (Labor Code §5003)
6. Provides that “signature” or “subscription” includes a mark when the signer or subscriber cannot write, such signer’s or subscriber’s name being written near the mark by a witness who writes their own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto. (Labor Code §17)
7. Defines “electronic signature” for purposes of brokerage agreements, Uniform Electronic Transfer Act, Levying Officer Transfer Act, California Franchise Investment Law, Corporate Securities Law, and various purposes under the Financial Code and Code of Civil Procedure, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civil Code §1633(f), §1633.2(h); Code of Civil Procedure §17(b)(3), §263.1(c); Corporations Code §31158, §25620; Financial Code §12201, §17201, §22101)
8. Provides for the electronic filing of documents in civil actions, including the use of electronic signatures. (Code of Civil Procedure §1010.6)
9. Provides that if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public, as provided. (Civil Code §1633.11)

This bill:

1. Authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board.
2. Defines “signature,” for purposes of proceedings before the WCAB, to include an electronic record or electronic signature attributable to a person if it was the act of the person, as specified.
3. Provides that for every compromise and release agreement, filed with the WCAB, the signature requirements may be satisfied by an electronic signature, as provided.
4. Specifies that the requirement of acknowledgment by a notary public may be satisfied by an electronic signature provided an electronic record includes the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.

Background

1. Workers’ Compensation Benefits. Workers’ compensation benefits provide employees with the medical treatment needed to recover from work related injury or illnesses, partially replace the wages lost while they recover, and help them return to work. The DWC monitors the administration of workers' compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for benefits.

The WCAB is the judicial body of the DWC whose major functions include:

1. Issuing judicial opinions in response to petitions for removal and reconsideration of decisions by workers’ compensation administrative law judges,
2. representing the WCAB in appellate proceedings, and
3. regulation of the adjudication process by adopting rules of practice and procedure.

Through its published opinions and regulations, the WCAB provides guidance and leadership to the workers’ compensation community.

1. WCAB authorized the use of electronic signatures during the COVID-19 pandemic. As noted by the Assembly Insurance Committee analysis: “On March 18, 2020, shortly after Governor Newsom declared a state of emergency in response to the spread of COVID-19, WCAB issued an en banc decision, Case No. MISC. NO. 260, with several orders, including authorization to use electronic signatures on compromise and release agreements. When the state of emergency was terminated by the Governor on February 28, 2023, WCAB issued another en banc decision, Case No. MISC. NO. 268, rescinding provisions of en banc orders made during the state of emergency, including those relating to the authorized use of electronic signatures, as contained in Case No. MISC. NO. 260.

“With the rescission of that order, electronic signatures are no longer being allowed in workers’ compensation proceedings as they are not explicitly authorized under the Labor Code. This bill would codify the authorized use of electronic signatures on a compromise and release and additional documents filed in proceedings before the WCAB.”

1. Modernizing Transactions. California has made efforts to modernize signature requirements in various areas of law and legal proceedings. In 1999, California enacted the Uniform Electronic Transaction Act (UETA) establishing uniform standards for conducting electronic transactions in the state. Specifically, the UETA established rules and procedures for the sending and receiving of electronic records and signatures, the formation of contracts using electronic records, the making and retention of electronic records and signatures, and the procedures governing changes and errors in electronically transmitted records. UETA additionally established the validity of transactions formed, transmitted and recorded electronically, and established the admissibility of electronic records in a legal proceeding.

Since then, California has continued to modernize signature requirements, including in some unemployment insurance code provisions. In 2022, AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022), among other things, required the Employment Development Department (EDD) to accept electronic signatures on all work sharing plan documents. This bill continues these efforts by authorizing the use of electronic signatures within the workers’ compensation system.

Related/Prior Legislation:

AB 1879 (Gipson, 2024) allows, among other things, electronic signatures on property tax documents, as specified. The bill is pending on the Senate Floor.

AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022) required, among other things, the Employment Development Department to accept electronic signatures on all work sharing plan documents.

AB 1926 (Evans, Chapter 167, Statutes of 2010) provided trial courts with the ability to create, maintain, and preserve trial court records electronically under procedures and guidelines to be provided for by the Judicial Council.

AB 2394 (Brownley, Chapter 428, Statutes of 2010) established the Levying Officer Electronic Transactions Act, whereby a levying officer could use electronic methods to create, generate, send, receive, store, display, retrieve, or process information, electronic records, and documents, as specified.

AB 578 (Leno, Chapter 621, Statutes of 2004) enacted the Electronic Recording Delivery Act of 2004 regulating the electronic delivery, recording, and return of instruments affecting rights, title, or interest in real property.

SB 820 (Sher, Chapter 428, Statutes of 1999) created the Uniform Electronic Transaction Act, which authorized electronic signatures for contracting purposes.

SB 367 (Dunn, Chapter 514, Statutes of 1999) authorized courts to adopt local rules of court permitting electronic filing and service of documents, as specified.

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

SUPPORT: (Verified 8/5/24)

California Lawyers Association, Workers' Compensation Section (Source)

Acclamation Insurance Management Services

Allied Managed Care
American Property Casualty Insurance Association
Association of California Healthcare Districts
California Applicants' Attorneys Association
California Association of Joint Powers Authorities
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Joint Powers Insurance Authority
California Special Districts Association
California State Association of Counties
Housing Contractors of California

League of California Cities
Public Risk Innovation, Solutions, and Management
Urban Counties of California

OPPOSITION: (Verified 8/5/24)

None received.

ARGUMENTS IN SUPPORT: According to the sponsors, the California Lawyers Association, Workers’ Compensation Section:

During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release form. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to “wet” signatures. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas. By authorizing the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, AB 2337 will modernize those proceedings for the benefit of all participants. This is a commonsense measure that will ensure efficiency and consistency in WCAB proceedings, removing unnecessary barriers in the process.

ASSEMBLY FLOOR: 73-0, 5/2/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

NO VOTE RECORDED: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

Prepared by: Alma Perez-Schwab / L., P.E. & R. / (916) 651-1556

8/6/24 16:10:51

**** END ****

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2023-2024 Regular Session

Bill No: AB 2337 (Author:Dixon)

Version: February 12, 2024

Hearing Date: June 18, 2024

Fiscal: Yes

Urgency: No

Consultant: ID

SUBJECT

Workers’ compensation: electronic signatures

DIGEST

This bill provides that, for the purposes of a proceeding before the Workers’ Compensation Appeals Board, an electronic signature is sufficient for any required signature, as specified, and provides that a signature on a compromise and release form may be satisfied by electronic signature.

EXECUTIVE SUMMARY

As technology has advanced, many business and government processes have transitioned online to save time and increase efficiency and convenience. The COVID-19 pandemic pushed many more businesses, schools, and state agencies to transition to remote and electronic transactions and business in order to prevent spreading the virus. In March of 2020, the Workers’ Compensation Appeals Board (WCAB) issued temporary rules allowing for electronic signatures on compromise and release forms, and allowing for electronic filing and service. In 2022, WCAB made permanent rules to regularize the process for electronic filing and service in cases. However, when the COVID-19 state of emergency was rescinded in 2023, the WCAB rescinded its temporary COVID-19 orders, thereby reverting back to requiring “wet,” ink signatures on compromise and release forms. AB 2337 would make permanent the temporary WCAB rule that compromise and release forms may be signed electronically, and it expands electronic signatures to be sufficient for all signatures required in proceedings before the WCAB. AB 2337 is sponsored by the California Lawyers’ Association, Workers’ Compensation Section, and is supported by a large number of business, insurance, local government, and healthcare associations. The Committee has received no timely opposition. This bill passed out of the Senate Labor, Public Employment and Retirement Committee on a vote of five to zero.

PROPOSED CHANGES TO THE LAW

Existing federal law:

Establishes the Electronic Signatures in Global and National Commerce Act and provides that, for transactions in or affecting interstate commerce or foreign commerce, an electronic signature, contract, or other record may not be denied legal effect, validity, or enforceability solely because it is in electronic form. are generally valid and legally enforceable. (15 U.S.C., § 7001.)

Existing state law:

1. 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. Requires all employers to secure payment of benefits by either securing the consent of the Department of Industrial Relations (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (Cal. Const Art. XIV, Sec. 4.)
2. Establishes the Workers’ Compensation Appeals Board (WCAB) within the Division of Workers’ Compensation (DWC), and grants the WCAB all judicial power functions, and regulatory authority over the adjudication process. (Lab. Code §§ 133, 3200.)
3. Requires every compromise and release filed with the WCAB to include the signature of the employee or other beneficiary, and be attested by two witnesses or acknowledged before a notary public. (Lab. Code § 5003.)
4. Defines “electronic signature” for purposes of various sections of California law, and the Uniform Electronic Transfer Act, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civ. Code §§ 1633(f), 1633.2 (h); Civ. Proc. Code §§ 17 (b)(3), 263.1 (c); Corp. Code §§ 31158(b)(1)(H)(2), 25620 (b)(1)(H)(2); Fin. Code §§ 12201(c)(1)(H)(2), 17201(c)(1)(H)(2), 22101(h)(1)(H)(2).)
5. Allows for the electronic filing of documents in civil actions, including the use of electronic signatures. (Civ. Proc. Code § 1010.6.)
6. States that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. States that a contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation, and specifies that, if a law requires a record to be in writing, an electronic record satisfies the law. States that an electronic signature satisfies any law’s requirement for a signature. (Civ. Code § 1633.7.)
7. Specifies that the law does not require any record or signature be created or otherwise used in electronic form, and that parties to a transaction generally must agree to conduct the transaction by electronic means. (Civ. Code § 1633.5.)
8. Defines an electronic record as: a record created, generated, sent, communicated, received, or stored by electronic means. (Civ. Code § 1633.2.)
9. Defines an electronic signature as an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Id.)
10. Provides that, if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the notarized electronic signature, the electronic signature of a notary public, along with all other information required to be included in a notarization by other applicable law. (Civ. Code § 1633.11.)
11. Specifies that, if a law requires a statement be signed under penalty of perjury, the requirement is satisfied if the electronic record includes the electronic signature, all information to which the declaration is made, and a declaration under penalty of perjury by the person who submits the electronic signature. (Id.)

This bill:

1. Specifies that, for the purposes of a proceeding before the WCAB, a signature includes an electronic record or signature, and that an electronic record or signature is attributable to a person if it was the act of the person, which may be shown in any manner, including by a showing of the efficacy of any security procedure applied to determine the identity of the person to which the electronic record or electronic signature is attributed.
2. Specifies that, for a compromise and release agreement, notwithstanding any language to the contrary in the agreement, the required signature may be satisfied by an electronic signature.
3. Specifies that the requirement that a signature on a compromise and release form be acknowledged by a notary public may be satisfied by an electronic signature, provided the electronic record includes the notarized signature, the electronic signature of the notary public, and all other information required to be included in a notarization by other applicable law.

COMMENTS

1. Author’s statement

According to the author:

AB 2337 is a commonsense measure that will authorize the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB). During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to the requirement of a “wet” signature. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely used. AB 2337 will authorize the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, modernizing those proceedings for the benefit of all participants.

1. COVID-19 and the move to electronic transactions

The COVID-19 pandemic is a public health crisis that has significantly affected all facets of life in California. On March 4, 2020, Governor Newsom declared a state of emergency, directing the government and state agencies to take a multitude of steps to help fight the coronavirus and prevent its spread.^[1] Californians across the state were ordered to shelter-in-place in order to prevent the spread of the Coronavirus. Industry and educational institutions shut down. Under the state of emergency, the state, businesses, and schools worked to transition to remote operations, so that they could continue functioning without in-person contact and the risk of spreading the virus. Later in the pandemic, as vaccines were made available and more people became protected from the coronavirus or its worst symptoms, many businesses and educational institutions slowly resumed in-person operations, or transitioned to hybrid arrangements. Even more recently, the various agencies of the state government have resumed in-person operations, not without controversy. Nonetheless, many entities found through the trials of remote operations during the pandemic that it was possible to conduct some of their business remotely, or electronically, rather than in-person.

The impact of the COVID-19 pandemic was also felt by the Workers’ Compensation system in California. The workers’ compensation system is the system through which employers maintain insurance to cover the work-related injuries that their workers suffer while on the job, regardless of fault. The worker’s compensation system is administered by the Division of Worker’s Compensation (DWC), which oversees administrative judges who hear workers’ claims for workers’ compensation that are denied by the employer. The Worker’s Compensation Appeals Board (WCAB) hears appeals of claims, as well as regulates the adjudication process through adopting rules of practice and procedure. On March 22, 2020, in light of Governor Newsom’s state of emergency declaration, WCAB issued an en banc decision temporarily suspending a number of its rules.^[2] At this time, many of DWC’s offices were closed because of the pandemic. One of the rules that WCAB’s decision suspended was the rule that compromise and release agreements, which operate as settlements of claims, include signatures from two witnesses. The decision allowed for compromise and release forms to be signed electronically by all parties. A subsequent WCAB decision also temporarily allowed for electronic filing of documents.^[3]

According to the author, WCAB’s electronic signature temporary rule for compromise and release agreements worked without issue for three years. However, the COVID-19 state of emergency ended on February 28, 2023. Subsequently, WCAB issued a decision rescinding its en banc COVID-19 decisions that allowed for electronic signatures and electronic filing of documents.^[4] In 2022, while the temporary electronic signature rule was still in place, WCAB finalized a rulemaking process to formalize and make permanent rules for remote hearings, electronic filing, and electronic service that developed during the pandemic.^[5] WCAB has not put into place any rule since allowing for electronic signatures.

1. The Uniform Electronic Transactions Act

Both federal and state law have attempted to regularize and promote electronic records and signatures. In 2000, the Federal government enacted the Electronic Signatures in Global and National Commerce Act (known as the E-Sign Act), which provides that electronic records and signatures for transactions in or affecting interstate commerce or foreign commerce are generally valid and legally enforceable. (15 U.S.C., § 7001 et seq.) The E-sign Act also specifies that a state statute, regulation, or other enactment may modify, limit, or supersede the E-Sign Act’s provisions, provided they constitute an enactment or adoption of the Uniform Electronic Transactions Act, specify alternative procedures or requirements that are not inconsistent with the E-Sign Act and do not require or accord greater legal status or effect to a specific technology, and make specific reference to the E-Sign Act. (15 U.S.C. § 7002.)

About the same time, California adopted the Uniform Electronic Transactions Act (UETA), establishing the legal validity of e-signatures and electronic records relating to a transaction on business, commercial, or governmental affairs. (Civ. Code § 1633.1 et seq.) The UETA states that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. (Civ. Code § 1633.7.) However, the UETA does not require any record or signature to be created or otherwise used in electronic form; generally, the parties must agree to conduct the transaction by electronic means. (Civ. Code § 1633.5.) The UETA also includes a number of definitions. It defines an electronic record as: “a record created, generated, sent, communicated, received, or stored by electronic means.” (Civ. Code § 1633.2.) An electronic signature is defined as: an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Id.) The UETA was enacted to facilitate electronic transactions, be consistent with reasonable practices concerning electronic transactions, and to make uniform the law among the states. (Civ. Code § 1633.6.)

The UETA also includes a provision relating to notaries. That section specifies that the requirement that a document be notarized is satisfied through an electronic signature “if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.” (Civ. Code § 1633.11.) If a statement must be signed under penalty of perjury, such a requirement is satisfied through an electronic signature if the electronic record includes, in addition to the signature, all of the information to which the declaration pertains and a declaration under penalty of perjury. (Id.)

1. The Online Notarization Act

In 2023, California joined the 45 other states that have statutes relating to electronic notary services through the enactment of the Online Notarization Act. (SB 696 (Portantino), Ch. 291, Stats. 2023.) The Online Notarization Act authorizes California notaries to perform notarial transactions through the use of audio-visual communication, as specified, once the Secretary of State completes requisite technology projects to enable remote online notarization (RON). (Gov. Code § 8231 et seq.) The Secretary must complete that step by January 1, 2028. A RON under California’s new law would require the notarization take place through a video call, during which the notary would require the person obtaining the notarization to show government-issued ID and answer verification questions to verify their identity. The law also requires records be kept and stored by the notary, including a log of the notarization and a video recording of the transaction, and provides for the use of online notarization platforms.

1. AB 2337 permits electronic signatures and electronic notarization for the WCAB and compromise and release forms

AB 2337 adopts the language of the UETA in explicitly authorizing the use of electronic signatures and records for proceedings before the WCAB. It does so by amending the definition of signature in the Labor Code to include an electronic record or signature, and stating that an electronic signature is attributable to a person if it was the act of that person, which can be shown in any manner, including a showing “of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable.” This language replicates provisions of the UETA.

AB 2337 also specifies that a signature on a compromise and release form may be satisfied by an electronic signature, thereby adopting permanently the interim rule that the WCAB had adopted during the COVID-19 pandemic. Because compromise and release forms must either be signed by two witnesses, or notarized, AB 2337 specifies that the requirement of acknowledgement by a notary public for the form may be satisfied by an electronic signature, as long as the electronic record includes the notarized electronic signature and the electronic signature of the notary, together with all other information required to be included in a notarization. This requirement also mirrors the language in the UETA regarding notaries, contained at Civil Code Section 1633.11.

1. Amendments

In order to ensure that AB 2337 conforms with the UETA and references the definitions provided by the UETA, the author has agreed to amendments that specifically refer to the relevant sections of the UETA. A mock-up of these amendments are attached at the end of this analysis.^[6]

1. Arguments in support

According to the California Lawyers Association, which is the sponsor of AB 2337:

[AB 2337] would authorize the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB) on a permanent basis.

The Labor Code currently requires every compromise and release of a workers’ compensation claim to contain the “signature” of the employee or other beneficiary, attested by two disinterested witnesses or acknowledged before a notary public. During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release form. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to “wet” signatures.

Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas.

By authorizing the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, AB 2337 will modernize those proceedings for the benefit of all participants. This is a commonsense measure that will ensure efficiency and consistency in WCAB proceedings, removing unnecessary barriers in the process.

SUPPORT

California Lawyers’ Association, Workers’ Compensation Section (sponsor)

Acclamation Insurance Management Services

Allied Managed Care

American Property Casualty Insurance Association

Association of California Healthcare Districts

California Association of Joint Powers Authorities

California Chamber of Commerce

California Coalition on Workers’ Compensation

California Joint Powers Insurance Authority

California Special Districts Association

California State Association of Counties

League of California Cities

Public Risk Innovation Solutions and Management

Urban Counties of California

OPPOSITION

None received

RELATED LEGISLATION

Pending Legislation:

AB 1879 (Gipson, 2024) permits county assessors to accept the filing of State Board of Equalization forms for property taxes by electronic means, and authorizes a taxpayer to file such a form by electronic signature. AB 1879 is currently in the Senate Judiciary Committee.

AB 743 (Petrie-Norris, 2023) would have authorized a notary public to apply for registration to be authorized to perform online notarizations, and would have established various requirements on notary publics in the commission of online notarizations. AB 743 died in the Assembly Appropriations Committee.

AB 696 (Lowenthal, 2023) enacts the California State Grants and Contracts Modernization Act to require a state agency that administers a grant or enters into contracts with any eligible entity to provide for and accept electronic signatures and transmissions, and prohibits an agency from requiring, after July 1, 2025, an original or wet signature on a contract or grant document, unless otherwise required by state or federal law. AB 696 was held in the Senate Appropriations Committee.

AB 564 (Villapudua, 2023) requires the Department of Health Care Services to allow a healthcare provider to submit an electronic signature for a claim or remittance form under the Medi-Cal program. AB 564 is currently in the Senate Health Committee.

Prior Legislation:

SB 696 (Portantino, Ch. 291, Stats. 2023) gave effect to a notarial act performed in another state, and authorized a notary public to apply for registration with the Secretary of State to be authorized to perform online notarizations, as specified.

AB 40 (Rodriguez, Ch. 793, Stats. 2023) required the Emergency Medical Services Authority to develop and implement an electronic signature for use between the emergency department medical personnel at a receiving hospital and the transporting emergency medical personnel, among other changes.

SB 820 (Sher, Ch. 428, Stats. 1999) enacted the Uniform Electronic Transactions Act, providing that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. Specified that, if a law requires a signature be notarized, the requirement is satisfied with respect to an electronic signature, as specified.

PRIOR VOTES:

Senate Labor, Public Employment and Retirement Committee (Ayes 5, Noes 0)

Assembly Floor (Ayes 73, Noes 0)

Assembly Appropriations Committee (Ayes 14, Noes 0)

Assembly Judiciary Committee (Ayes 12, Noes 0)

Assembly Insurance Committee (Ayes 12, Noes 0)

**************

PROPOSED AMENDMENTS TO AB 2337:

SECTION 1.   Section 17 of the Labor Code is amended to read:

17.   (a) “Signature” or “subscription” includes mark when the signer or subscriber can not write, such signer’s or subscriber’s name being written near the mark by a witness who writes their own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto.

(b) For purposes of a proceeding before the Workers’ Compensation Appeals Board, “signature” includes electronic record or electronic signature. An electronic record or electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable. signature, as defined in Section 1633.2 of the Civil Code.

(PU Enacted by Stats. 1937, Ch. 90.)

SEC. 2.   Section 5003 of the Labor Code is amended to read:

5003.   (a) Every compromise and release agreement shall be in writing and duly executed, and the signature of the employee or other beneficiary shall be attested by two disinterested witnesses or acknowledged before a notary public. The document shall specify:

(1) The date of the accident.

(2) The average weekly wages of the employee, determined according to Chapter 1 of Part 2 of this division.

(3) The nature of the disability, whether total or partial, permanent or temporary.

(4) The amount paid, or due and unpaid, to the employee up to the date of the release or agreement or death, and the amount of the payment or benefits then or thereafter to be made.

(5) The length of time such payment or benefit is to continue.

(6) In the event a claim of lien under subdivision (f) or (g) of Section 4903 has been filed, the number of days and the amount of temporary disability indemnity which should be allowed to the lien claimant.

(b) Notwithstanding any language to the contrary in the agreement, the signature required by subdivision (a) may be satisfied by an electronic signature, as described in Section 17. The requirement of acknowledgment by a notary public pursuant to subdivision (a) may be satisfied by an electronic signature provided an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law. as described in Section 1633.11 of the Civil Code.

1. Proclamation of State of Emergency, Office of the Governor (Mar. 4, 2020), available at https://www.gov.ca.gov/2020/03/04/governor-newsom-declares-state-of-emergency-to-help-state-prepare-for-broader-spread-of-covid-19/. ↑

2. In re: COVID-19 state of emergency, Case MISC No. 260 (Worker’s Compensation App. Bd. Mar. 18, 2020) (en banc). ↑

3. In re: COVID-19 state of emergency, MISC No. 261 (Worker’s Compensation App. Bd. Apr. 6, 2020) (en banc No. 2). ↑

4. In re: COVID-19 state of emergency, MISC No. 268 (Worker’s Compensation App. Bd. Mar. 22, 2023) (en banc No. 9). ↑

5. Proposed Regulations: Final Statement of Reasons, Workers’ Compensation Appeals Board – Rules of Practice and Procedure (Dec. 15, 2021), available at https://www.dir.ca.gov/wcab/WCABProposedRegulations/2021/WCAB-Rulemaking/Index.htm; 8 Cal. Code of Regs. §§ 10300-10995 (eff. Jan. 1, 2022). ↑

6. The amendments may be subject to minor, non-substantive changes required by Legislative Counsel. ↑

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Lola Smallwood-Cuevas, Chair

2023 - 2024 Regular

Bill No: AB 2337 Hearing Date: June 5, 2024

SUBJECT: Workers’ compensation: electronic signatures

KEY ISSUE

This bill authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB).

ANALYSIS

Existing law:

1. 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 (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (California Constitution Article XIV §4, Labor Code §3200-6002)
2. Establishes the Division of Workers’ Compensation (DWC), within the Department of Industrial Relations (DIR), to monitor the administration of workers’ compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers’ compensation benefits. (Labor Code §110-139.6)
3. Establishes the Workers’ Compensation Appeals Board (WCAB) within the DWC and grants the board all judicial power functions, as provided. (Labor Code §111, §133 & §3200)
4. Authorizes parties interested in compromising on any liability that is claimed to exist under workers’ compensation provisions, to do so through a release or compromise agreement signed by both parties and filed with the WCAB. (Labor Code §5000-5006)
5. Requires every compromise and release filed with the WCAB to be in writing and include the signature of the employee or other beneficiary that must be attested by two witnesses or acknowledged before a notary public, as specified. (Labor Code §5003)
6. Provides that “signature” or “subscription” includes a mark when the signer or subscriber cannot write, such signer’s or subscriber’s name being written near the mark by a witness who writes their own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto. (Labor Code §17)
7. Defines “electronic signature” for purposes of brokerage agreements, Uniform Electronic Transfer Act, Levying Officer Transfer Act, California Franchise Investment Law, Corporate Securities Law, and various purposes under the Financial Code and Code of Civil Procedure, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civil Code §1633(f), §1633.2(h); Code of Civil Procedure §17(b)(3), §263.1(c); Corporations Code §31158, §25620; Financial Code §12201, §17201, §22101)
8. Provides for the electronic filing of documents in civil actions, including the use of electronic signatures. (Code of Civil Procedure §1010.6)
9. Provides that if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public, as provided. (Civil Code §1633.11)

This bill:

1. Authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board.
2. Defines “signature,” for purposes of proceedings before the WCAB, to include an electronic record or electronic signature attributable to a person if it was the act of the person, as specified.
3. Provides that for every compromise and release agreement, filed with the WCAB, the signature requirements may be satisfied by an electronic signature, as provided.
4. Specifies that the requirement of acknowledgment by a notary public may be satisfied by an electronic signature provided an electronic record includes the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.

COMMENTS

1. Background:

Workers’ compensation benefits provide employees with the medical treatment needed to recover from work related injury or illnesses, partially replace the wages lost while they recover, and help them return to work. Workers’ compensation benefits do not include damages for pain and suffering or punitive damages. The Division of Workers' Compensation (DWC) monitors the administration of workers' compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers' compensation benefits.

The Workers’ Compensation Appeals Board (WCAB) is the judicial body of the DWC whose major functions include:

• Issuing judicial opinions in response to petitions for removal and reconsideration of decisions by workers’ compensation administrative law judges,
• representing the WCAB in appellate proceedings, and
• regulation of the adjudication process by adopting rules of practice and procedure

Through its published opinions and regulations, the WCAB provides guidance and leadership to the workers’ compensation community.

WCAB authorized the use of electronic signatures during the COVID-19 pandemic:

As noted by the Assembly Insurance Committee analysis:

“On March 18, 2020, shortly after Governor Newsom declared a state of emergency in response to the spread of COVID-19, WCAB issued an en banc decision, Case No. MISC. NO. 260, with several orders, including authorization to use electronic signatures on compromise and release agreements. When the state of emergency was terminated by the Governor on February 28, 2023, WCAB issued another en banc decision, Case No. MISC. NO. 268, rescinding provisions of en banc orders made during the state of emergency, including those relating to the authorized use of electronic signatures, as contained in Case No. MISC. NO. 260.

With the rescission of that order, electronic signatures are no longer being allowed in workers’ compensation proceedings as they are not explicitly authorized under the Labor Code. This bill would codify the authorized use of electronic signatures on a compromise and release and additional documents filed in proceedings before the WCAB.”

Modernizing Transactions:

California has made efforts to modernize signature requirements in various areas of law and legal proceedings. In 1999, California enacted the Uniform Electronic Transaction Act (UETA) establishing uniform standards for conducting electronic transactions in the state. Specifically, the UETA established rules and procedures for the sending and receiving of electronic records and signatures, the formation of contracts using electronic records, the making and retention of electronic records and signatures, and the procedures governing changes and errors in electronically transmitted records. UETA additionally established the validity of transactions formed, transmitted and recorded electronically, and established the admissibility of electronic records in a legal proceeding.

Since then, California has continued to modernize signature requirements, including in some unemployment insurance code provisions. In 2022, AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022), among other things, required the Employment Development Department (EDD) to accept electronic signatures on all work sharing plan documents. This bill continues these efforts by authorizing the use of electronic signatures within the workers’ compensation system.

2. Need for this bill?

According to the author:

“AB 2337 is a commonsense measure that will authorize the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB). During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to the requirement of a “wet” signature. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely used. AB 2337 will authorize the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, modernizing those proceedings for the benefit of all participants.”

3. Proponent Arguments:

According to the sponsors, the California Lawyers Association, Workers’ Compensation Section:

“During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release form. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to “wet” signatures. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas. By authorizing the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, AB 2337 will modernize those proceedings for the benefit of all participants. This is a commonsense measure that will ensure efficiency and consistency in WCAB proceedings, removing unnecessary barriers in the process.”

4. Opponent Arguments:

None received.

5. Double Referral:

This bill has been double referred and if approved by this Committee today, will be sent to Senate Judiciary Committee for a hearing.

6. Prior/Related Legislation:

AB 1879 (Gipson, 2024) would allow electronic signatures on property tax documents, as specified. This bill is pending in Senate Judiciary Committee.

AB 1854 (Boerner Horvath, Chapter 112, Statutes of 2022), among other things, required EDD to accept electronic signatures on all work sharing plan documents.

AB 1926 (Evans, Chapter 167, Statutes of 2010) provided trial courts with the ability to create, maintain, and preserve trial court records electronically under procedures and guidelines to be provided for by the Judicial Council.

AB 2394 (Brownley, Chapter 428, Statutes of 2010) established the Levying Officer Electronic Transactions Act, whereby a levying officer could use electronic methods to create, generate, send, receive, store, display, retrieve, or process information, electronic records, and documents, as specified.

AB 578 (Leno, Chapter 621, Statutes of 2004) enacted the Electronic Recording Delivery Act of 2004 regulating the electronic delivery, recording, and return of instruments affecting rights, title, or interest in real property.

SB 820 (Sher, Chapter 428, Statutes of 1999) created the Uniform Electronic Transaction Act, which authorized electronic signatures for contracting purposes.

SB 367 (Dunn, Chapter 514, Statutes of 1999) authorized courts to adopt local rules of court permitting electronic filing and service of documents, as specified.

SUPPORT

California Lawyers Association, Workers' Compensation Section (Sponsor)

Acclamation Insurance Management Services

Allied Managed Care
American Property Casualty Insurance Association
Association of California Healthcare Districts
California Applicants' Attorneys Association
California Association of Joint Powers Authorities
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Joint Powers Insurance Authority
California Special Districts Association
California State Association of Counties
Housing Contractors of California

League of California Cities
Public Risk Innovation, Solutions, and Management
Urban Counties of California

OPPOSITION

None received.

-- END --

Date of Hearing: April 24, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2337

Author:(Dixon) – As Introduced Ver:February 12, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill allows an electronic signature to satisfy signature requirements for certain proceedings and agreements before the Workers’ Compensation Appeals Board (WCAB).

FISCAL EFFECT:

Negligible costs to WCAB to reauthorize electronic signatures.

COMMENTS:

1. Purpose. According to the author:

When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to the requirement of a “wet” signature. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely used. AB 2337 will authorize the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, modernizing those proceedings for the benefit of all participants.

This bill is sponsored by the California Lawyers Association, Workers’ Compensation Section, and supported by the California Applicants’ Attorneys Association, insurance associations, and various employer groups representing both the public and the private sectors.

1. Electronic Signatures in WCAB Proceedings. On March 18, 2020, in response to the COVID-19 pandemic, WCAB issued an en banc decision authorizing the use of electronic signatures on compromise and release agreements. When the state of emergency was terminated by Governor Newsom on February 28, 2023, WCAB issued another en banc decision rescinding provisions of previous orders made during the state of emergency, including those authorizing use of electronic signatures. As a result, WCAB no longer allows electronic signatures, as such signatures are not explicitly authorized in statute. This bill codifies the authorization that existed without issue for three years during the pandemic and more broadly allows for an electronic signature in a proceeding before WCAB.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 9, 2024

ASSEMBLY COMMITTEE ON JUDICIARY

Ash Kalra, Chair

ABPCA Bill Id:AB 2337

Author:(Dixon) – As Introduced Ver:February 12, 2024

PROPOSED CONSENT

SUBJECT: Workers’ compensation: electronic signatures

KEY ISSUE: SHOULD ELECTRONIC SIGNATURES BE PERMITTED IN PROCEEDINGS BEFORE THE WORKERS’ COMPENSATION APPEALS BOARd?

SYNOPSIS

On March 18, 2020, the Workers’ Compensation Appeals Board (WCAB) authorized the use of electronic signatures for the execution of compromise and release agreements. The authorization was rescinded shortly after Governor Newsom ended the COVID-19 state of emergency on February 28, 2023. While electronic signatures were used in WCAB proceedings seemingly without issue between March 2020 and February 2023, wet signatures have once again been required for the past year. This bill amends relevant provisions of the Labor Code to authorize the use of electronic signatures in proceedings before the WCAB. Considering the Legislature’s history of modernizing signature requirements throughout numerous code sections and the apparent success of allowing electronic signatures for WCAB proceedings over the past three years, this bill seems to present a commonsense modernization that will allow for increased efficiency and accessibility. The bill is sponsored by the California Lawyers Association, Workers’ Compensation Section and supported by a number of insurance industry organizations and local government representatives. This bill was previously heard by the Assembly Committee on Insurance and was approved on consent 12-0.

SUMMARY: Allows signature requirements for proceedings before the Workers Compensation Appeals Board (WCAB) to be satisfied by electronic signature. Specifically, this bill:

1. Defines, for purposes of a proceeding before the WCAB, “signature” to include electronic record or electronic signature. Establishes that an electronic record or electronic signature is attributable to a person if it was the act of the person, and that the act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable.
2. Allows the signature requirement specified by specified provisions of the Labor Code to be satisfied by an electronic signature, as described. Also allows the requirement of acknowledgment by a notary public pursuant to the specified subdivision to be satisfied by an electronic signature provided an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.

EXISTING LAW:

1. 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 (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (California Constitution Article XIV, Section 4.)
2. Establishes the WCAB within the Division of Workers’ Compensation (DWC) and grants the WCAB all judicial power functions, as provided. (Labor Code Section 133, 3200.)
3. Requires every compromise and release filed with the WCAB to include the signature of the employee or other beneficiary and be attested by two witnesses or acknowledged before a notary public. (Labor Code Section 5003.)
4. Defines “electronic signature” for purposes of brokerage agreements, Uniform Electronic Transfer Act, Levying Officer Transfer Act, California Franchise Investment Law, Corporate Securities Law, and various purposes under the Financial Code and Code of Civil Procedure, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civil Code Section 1633 (f), 1633.2 (h); Code of Civil Procedure Section 17 (b)(3), 263.1 (c); Corporations Code Section 31158 (b)(1)(H)(2), 25620 (b)(1)(H)(2); Financial Code Section 12201 (c)(1)(H)(2), 17201 (c)(1)(H)(2), 22101 (h)(1)(H)(2).)
5. Provides that a “digital signature,” as defined, is considered a type of “electronic signature.” (Civil Code Section 1633.2 (h).)
6. Provides for the electronic filing of documents in civil actions, including the use of electronic signatures. (Code of Civil Procedure Section 1010.6.)
7. Provides that if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public, as provided. (Civil Code Section 1633.11.)

FISCAL EFFECT: As currently in print this bill is keyed fiscal.

COMMENTS: According to the author, AB 2337 is a commonsense measure that will authorize the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB). During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to the requirement of a “wet” signature. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely used. This bill will authorize the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, modernizing those proceedings for the benefit of all participants.

This measure takes another step in a long line of efforts to modernize signature requirements in legal and quasi-legal proceedings throughout various levels of state and local government. Beginning in 1995, the Legislature adopted its first digital signature statute to allow public entitles to engage in electronic commerce. (AB 1577 (Bowen), Chap. 594, Stats. 1995.) In 1999, the Legislature adopted the Uniform Electronic Transaction Act, which authorized electronic signatures for contracting purposes. (SB 820 (Sher), Chap. 428, Stats. 1999).) Also in 1999, the Legislature authorized courts to adopt local rules of court permitting electronic filing and service of documents, as specified. (SB 367 (Dunn), Chap. 514, Stats. 1999).) Six years later, in 2004, the Legislature, recognizing a need for an efficient, cost-effective means of maintaining and transmitting records by public agencies, enacted the Electronic Recording Delivery Act of 2004 regulating the electronic delivery, recording, and return of instruments affecting rights, title, or interest in real property. (AB 578 (Leno), Chap. 621, Stats. 2004).)

The trend has continued: in 2010, AB 1926 (Evans, Chap. 167, Stats. 2010) was enacted to provide trial courts with the ability to create, maintain, and preserve trial court records electronically under procedures and guidelines to be provided for by the Judicial Council. Also in 2010, AB 2394 (Brownley, Chap. 428, Stats. 2010) was enacted to establish the Levying Officer Electronic Transactions Act, whereby a levying officer could use electronic methods to create, generate, send, receive, store, display, retrieve, or process information, electronic records, and documents, as specified. Introduced this year AB 1879 (Gipson), which was also heard and approved by this Committee, seeks to authorize taxpayers to electronically sign property tax documents.

On March 18, 2020, the WCAB issued an en banc decision that included an order authorizing the use of electronic signatures for the execution compromise and release agreements. The authorization was rescinded shortly after Governor Newsom ended the COVID-19 state of emergency on February 28, 2023. While electronic signatures were used in WCAB proceedings seemingly without issue between March 2020 and February 2023, wet signatures have once again been required for the past year.

This bill amends Labor Code Sections 17 and 5003. Section 17 simply defines the terms “signature,” and “subscription,” and has not been modified since its enactment in 1937. Section 5003 addresses the compromise and release of claims for workers compensation before the WCAB. This section has not been updated or amended since 1967. The amendment to Section 17 adds a subdivision specifying that for purposes of a proceeding before the WCAB, “signature” includes an electronic record or electronic signature which is attributable to a person that engaged in the act. The language further clarifies that the act may be demonstrated in any manner, including by demonstrating the efficacy of a security procedure applied to determine who completed the electronic signature.

The amendment to Section 5003 allows the signature required for a compromise and release agreement to be satisfied by an electronic signature, as defined by the amendment to Section 17. The amendment additionally permits the requirement of acknowledgment by a notary public present in existing language of the statute to also be satisfied by an electronic signature so long as the electronic record provides the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law. In other words, the amendment only modifies the signature requirement by allowing it to be an electronic signature and maintains the requirements regarding other applicable information required for purposes of a compromise and release agreement.

Considering the same procedure was followed for three years during the COVID-19 pandemic and that no issues appear to have arisen regarding the efficacy of electronic signatures during that time, this bill seems to reasonably modernize the Labor Code to allow for increased efficiency and accessibility.

ARGUMENTS IN SUPPORT: This bill is sponsored by the California Lawyers Association (CLA), Workers’ Compensation Section and is supported by a number of insurance industry organizations and local government representatives. In support of the bill, CLA submits the following:

Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely and effectively used. AB 2337 follows a long line of legislation in California permitting electronic signatures in various areas.

By authorizing the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, AB 2337 will modernize those proceedings for the benefit of all participants. This is a commonsense measure that will ensure efficiency and consistency in WCAB proceedings, removing unnecessary barriers in the process.

REGISTERED SUPPORT / OPPOSITION:

California Lawyers Association, Workers' Compensation Section (sponsor)

Allied Managed Care and Acclamation Insurance Management Services
American Property Casualty Insurance Association
Association of California Healthcare Districts (ACHD)
California Applicants' Attorneys Association
California Association of Joint Powers Authorities (CAJPA)
California Chamber of Commerce
California Coalition on Workers Compensation
California Joint Powers Insurance Authority
California Special Districts Association
California State Association of Counties (CSAC)
Public Risk Innovation, Solutions, and Management (PRISM)
Urban Counties of California (UCC)Allied Managed Care and Acclamation Insurance Management Services
American Property Casualty Insurance Association
Association of California Healthcare Districts (ACHD)
California Applicants' Attorneys Association
California Association of Joint Powers Authorities (CAJPA)
California Chamber of Commerce
California Coalition on Workers Compensation
California Joint Powers Insurance Authority
California Special Districts Association
California State Association of Counties (CSAC)
Public Risk Innovation, Solutions, and Management (PRISM)
Urban Counties of California (UCC)

Opposition

None on file

Analysis Prepared by: Manuela Boucher-de la Cadena / JUD. / (916) 319-2334

Date of Hearing: April 3, 2024

ASSEMBLY COMMITTEE ON INSURANCE

Lisa Calderon, Chair

ABPCA Bill Id:AB 2337 (

Author:Dixon) – As Introduced Ver:February 12, 2024

SUBJECT: Workers’ compensation: electronic signatures

SUMMARY: Authorizes the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB). Specifically, this bill:

1. Defines signature for purposes of a proceeding before the WCAB to include an electronic record or electronic signature attributable to a person if it was the act of the person.
2. Provides that for every compromise and release agreement, filed with the WCAB, an electronic signature satisfies the signature requirement, as provided.

EXISTING LAW:

1. 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 (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. (California Constitution Article XIV, Section 4)
2. Establishes the WCAB within the Division of Workers’ Compensation (DWC) and grants the WCAB all judicial power functions, as provided. (Labor Code Sections (LAB) 133 & 3200)
3. Requires every compromise and release filed with the WCAB to include the signature of the employee or other beneficiary and be attested by two witnesses or acknowledged before a notary public. (LAB 5003)
4. Defines “electronic signature” for purposes of brokerage agreements, Uniform Electronic Transfer Act, Levying Officer Transfer Act, California Franchise Investment Law, Corporate Securities Law, and various purposes under the Financial Code and Code of Civil Procedure, to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Civil Code Sections (CIV) 1633(f), 1633.2(h); Code of Civil Procedure Sections (CCP) 17(b)(3), 263.1(c); Corporations Code Sections 31158(b)(1)(H)(2), 25620(b)(1)(H)(2); Financial Code Sections 12201(c)(1)(H)(2), 17201(c)(1)(H)(2), 22101(h)(1)(H)(2))
5. Provides that a “digital signature,” as defined, is considered a type of “electronic signature.” (CIV 1633.2 (h))
6. Provides for the electronic filing of documents in civil actions, including the use of electronic signatures. (CCP 1010.6)
7. Provides that if by law a signature is required to be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public, as provided. (CIV 1633.11)

FISCAL EFFECT: Unknown

COMMENTS:

1. Purpose. According to the author:

AB 2337 is a commonsense measure that will authorize the use of electronic signatures in proceedings before the Workers’ Compensation Appeals Board (WCAB). During the COVID-19 state of emergency, WCAB authorized electronic signatures on a compromise and release. When the COVID-19 state of emergency was terminated, WCAB rescinded the authorization to use electronic signatures, reverting back to the requirement of a “wet” signature. Electronic signatures were used effectively in workers’ compensation proceedings for three years during the state of emergency. California explicitly authorizes electronic signatures in civil proceedings, where they are widely used. AB 2337 will authorize the use of electronic signatures on a compromise and release as well as other documents and filings in proceedings before WCAB, modernizing those proceedings for the benefit of all participants.

1. WCAB allowed the use of electronic signatures during COVID-19. On March 18, 2020, shortly after Governor Newsom declared a state of emergency in response to the spread of COVID-19, WCAB issued an en banc decision, Case No. MISC. NO. 260, with several orders, including authorization to use electronic signatures on compromise and release agreements. When the state of emergency was terminated by the Governor on February 28, 2023, WCAB issued another en banc decision, Case No. MISC. NO. 268, rescinding provisions of en banc orders made during the state of emergency, including those relating to the authorized use of electronic signatures, as contained in Case No. MISC. NO. 260.

With the rescission of that order, electronic signatures are no longer being allowed in workers’ compensation proceedings as they are not explicitly authorized under the Labor Code. This bill would codify the authorized use of electronic signatures on a compromise and release and additional documents filed in proceedings before the WCAB.

As discussed below, following the passage of the Uniform Electronic Transaction Act (UETA), electronic signatures have been authorized for numerous types of records, including being used in proceedings in civil court. The language in this bill follows the UETA model.

1. UETA. In 1999, the Legislature passed the UETA which established uniform standards for conducting electronic transactions in California. (SB 820 (Sher), 1999.) UETA set out a voluntary system of rules and procedures for the sending and receiving of electronic records and signatures, the formation of contracts using electronic records, the making and retention of electronic records and signatures, and the procedures governing changes and errors in electronically transmitted records. It also established the validity of transactions formed, transmitted and recorded electronically, and established the admissibility of electronic records in a legal proceeding. Of particular relevance for this bill, UETA defines “electronic signature” as “an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.” (Civil Code Section 1633.2 (h).)
2. Related legislation. AB 1879 (Gipson), of the current legislative session, would allow electronic signatures on property tax documents, as specified. This bill passed the Assembly Judiciary Committee on March 12, 2024 and will be heard by the Assembly Revenue and Taxation Committee on April 1, 2024.
3. Prior legislation.
   1. AB 1926 (Evans), Chapter 167, Statutes of 2010 provided trial courts with the ability to create, maintain, and preserve trial court records electronically under procedures and guidelines to be provided for by the Judicial Council.
   2. AB 2394 (Brownley), Chapter 428, Statutes of 2010 established the Levying Officer Electronic Transactions Act, whereby a levying officer could use electronic methods to create, generate, send, receive, store, display, retrieve, or process information, electronic records, and documents, as specified.
   3. AB 578 (Leno), Chapter 621, Statutes of 2004 enacted the Electronic Recording Delivery Act of 2004 regulating the electronic delivery, recording, and return of instruments affecting rights, title, or interest in real property.
   4. SB 820 (Sher), Chapter 428, Statutes of 1999 created the Uniform Electronic Transaction Act, which authorized electronic signatures for contracting purposes.
   5. SB 367 (Dunn), Chapter 514, Statutes of 1999 authorized courts to adopt local rules of court permitting electronic filing and service of documents, as specified.

REGISTERED SUPPORT / OPPOSITION:

Support

Allied Managed Care and Acclamation Insurance Management Services

American Property Casualty Insurance Association

Association of California Healthcare Districts (ACHD)

California Applicants' Attorneys Association

California Association of Joint Powers Authorities (CAJPA)

California Chamber of Commerce

California Coalition on Workers Compensation

California Joint Powers Insurance Authority

California Lawyers Association, Workers' Compensation Section

California Special Districts Association

California State Association of Counties (CSAC)

Housing Contractors of California

Public Risk Innovation, Solutions, and Management (PRISM)

Urban Counties of California (UCC)

Opposition

None on file

Analysis Prepared by: Claire Wendt / INS. / (916) 319-2086