Bill Text: CA SB826 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Workers' compensation: data reporting requirement:

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-10-07 - Chaptered by Secretary of State. Chapter 568, Statutes of 2011. [SB826 Detail]

Download: California-2011-SB826-Introduced.html

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BILL NUMBER: SB 826	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Leno

                        FEBRUARY 18, 2011

   An act to amend Section 138.6 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 826, as introduced, Leno. Workers' compensation: data reporting
requirement: administrative penalties.
   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 his or her employment. Existing law
requires the administrative director to develop a cost-efficient
workers' compensation information system and requires the
administrative director to adopt regulations specifying the data
elements to be collected by electronic data interchange.
   Existing law establishes the Workers' Compensation Administration
Revolving Fund in the State Treasury. Money in the fund may be
expended by the Department of Industrial Relations, upon
appropriation by the Legislature, for the administration of the
workers' compensation program, except as provided, and for the
Return-to-Work Program.
   This bill would require the administrative director to assess an
administrative penalty against a claims administrator for failing to
comply with any data reporting requirement as prescribed. This bill
would require that a penalty not exceed $100 for each violation or
$5,000 in any calendar year and would require that the annual maximum
penalty be doubled for each consecutive year that the same
deficiency results in violations of the same type. This bill would
provide that this penalty is to be deposited in the Workers'
Compensation Administration Revolving Fund.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 138.6 of the Labor Code is amended to read:
   138.6.  (a) The administrative director, in consultation with the
Insurance Commissioner and the Workers' Compensation Insurance Rating
Bureau, shall develop a cost-efficient workers' compensation
information system, which shall be administered by the division. The
administrative director shall adopt regulations specifying the data
elements to be collected by electronic data interchange.
   (b) The information system shall do the following:
   (1) Assist the department to manage the workers' compensation
system in an effective and efficient manner.
   (2) Facilitate the evaluation of the efficiency and effectiveness
of the benefit delivery system.
   (3) Assist in measuring how adequately the system indemnifies
injured workers and their dependents.
   (4) Provide statistical data for research into specific aspects of
the workers' compensation program.
   (c) The data collected electronically shall be compatible with the
Electronic Data Interchange System of the International Association
of Industrial Accident Boards and Commissions. The administrative
director may adopt regulations authorizing the use of other
nationally recognized data transmission formats in addition to those
set forth in the Electronic Data Interchange System for the
transmission of data required pursuant to this section. The
administrative director shall accept data transmissions in any
authorized format. If the administrative director determines that any
authorized data transmission format is not in general use by claims
administrators, conflicts with the requirements of state or federal
law, or is obsolete, the administrative director may adopt
regulations eliminating that data transmission format from those
authorized pursuant to this subdivision. 
   (d) The administrative director shall assess an administrative
penalty against a claims administrator for failing to comply with any
data reporting requirement adopted pursuant to this section. The
administrative director shall promulgate regulations establishing
categories of violations. A penalty shall not exceed one hundred
dollars ($100) for each violation or five thousand dollars ($5,000)
in any calendar year for all violations resulting from any single
deficiency in the procedures adopted by a reporting entity to comply
with the reporting requirements. The annual maximum penalty shall be
doubled for each consecutive year the same deficiency results in
violations of the same type. Any penalty assessed pursuant to this
section shall be deposited in the Workers' Compensation
Administration Revolving Fund.