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Archived Articles of Interest:

08/28/07 Seven Comp Bills Still Alive as Legislature Winds Down

08/09/07 WCAB Panel Opens Way for Pre-2005 PD Cases

07/21/07 CAAA Lawyer May Face Criminal Charges

06/29/07 Senate Committee Approves Six Comp Measures

06/25/07 Medical-Billing Decision Upsets Kunz Interpretation

06/23/07 'Angry Applicants' Put Attorneys on Alert

Seven Comp Bills Still Alive as Legislature Winds Down: 08/28/07

The Democrats' showdown bill with the governor over permanent disability benefits will likely be heard by the California state Senate on Monday, one of at least seven work comp bills that are still alive as state lawmakers wrap up the final week of a two-year legislative session.

Two of those measures are likely to be signed by California Gov. Arnold Schwarzenegger, but Senate President Don Perata's proposal to double permanent disability awards over the next three years is widely viewed as dead on arrival at the governor's desk.

Perata's office on Friday released a statement explaining the "intent language" that serves as a preamble to SB 815, saying he is not trying to roll back the SB 899 reform measure that Schwarzenegger championed and signed into law in 2004.

"The idea behind the intent language is to clarify that the bill is not an attack on SB 899 and that the bill seeks only to make certain injured workers aren't being short-changed while we figure out whether or not injured workers are receiving what they are due," the statement by the Oakland Democrat said. "The administration admits that the implications of SB 899 are still unclear. This recognizes that fact and protects them until we do."

Prospects are brighter for two other workers' comp bills: Assembly bills 2068 and 2125.

Capitol insiders say the governor, as a part of a backroom deal with Democrats to forge a compromise in minimum wage legislation, has agreed to sign AB 2068 by Pedro Nava, D-Santa Barbara. The bill would extend for another two years the right of workers who are enrolled in employer-provided group health plans to "predesignate" their treating physicians, a right that otherwise would expire on April 1, 2007.

The Association of California Insurance Companies (ACIC) on Friday switched its position on AB 2068 from "opposed" to "neutral." ACIC President Sam Sorich said members of his group decided that it makes sense to allow predesignation to stand for another two years to see how the policy works in the system.

"We acknowledge there's been a change in politics regarding the bill, but that in and of itself would not have caused us to change out position," Sorich said when asked if the governor's decision to sign AB 2068 had persuaded his group to drop its opposition.

Schwarzenegger is also expected to sign AB 2125 by Juan Vargas, D-San Diego. The measure strengthens and clarifies the authority of the state insurance commissioner to ensure compliance by the State Compensation Insurance Fund with risk-based capital statutes. Schwarzenegger is sponsoring the legislation along with Insurance Commissioner John Garamendi.

Last week the Senate Banking, Finance and Insurance Committee approved AB 2125 with two major amendments proposed by Chairwoman Jackie Speier, D-San Mateo. One amendment removed a provision that would have given State Fund authority to invest in corporate bonds.

Another amendment allows the governor to bypass State Fund's board of directors and fire the president if the insurer's financial status degrades to a trigger point known as the "authorized control level." Brian Perkins, chief of staff for the Senate insurance committee, said the amendment is designed to give the governor a way of taking action that may reassure the market should State Fund find itself in serious financial straits.

Insiders are uncertain about four other measures that are still on the Legislature's agenda as it enters its final four days of lawmaking:

* AB 2287 by Judy Chu, D-Monterey Park, would require the Division of Workers' Compensation to adopt specific guidelines for acupuncture treatment.

* AB 2942 by Paul Koretz, D-West Hollywood, would require the DWC to amend the Official Medical Fee Schedule so that hospitals that treat injured workers for serious burns are reimbursed at costs plus 20% until the DWC completes a study on the appropriate compensation level.

* AB 1862 by Vargas would require the DWC to conduct a study on first aid treatment for injured workers to determine whether additional follow up visits for first aid treatment should be allowed and whether the existing criteria for dealing with injuries requiring first aid are appropriate.

* AB 1883 by Hector De La Torre, D-South Gate, would require the Workers' Compensation Insurance Rating Bureau to post employer's proof of coverage information on a publicly accessible Web site.

-- By Jim Sams, WorkCompCentral Senior Editor

 

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