California 2019 2019-2020 Regular Session

California Assembly Bill AB1107 Amended / Bill

Filed 04/22/2020

                    Amended IN  Senate  April 22, 2020 Amended IN  Assembly  April 22, 2019 Amended IN  Assembly  March 26, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1107Introduced by Assembly Member Chu(Coauthor: Assembly Member Reyes)February 21, 2019 An act to amend Section 4610.1 of the Labor Code, relating to workers compensation.  add and repeal Section 1280.5 of the Unemployment Insurance Code, relating to unemployment insurance, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 1107, as amended, Chu. Workers compensation. Unemployment benefits: temporary additional benefits.Under existing law, unemployment compensation benefits are based on wages paid in a base period that is calculated according to the month within which the benefit year begins. Existing law provides that a weekly unemployment compensation benefit amount may be paid to an individual whose highest wages in the quarter of their base period exceeded $900, but a weekly benefit amount shall not exceed $450. This bill would, until March 1, 2021, instead provide that once the temporary federal unemployment increase due to the COVID-19 outbreak has ceased, an individuals weekly benefit amount would be increased by $600, notwithstanding the weekly benefits cap.Because this bill would expand the scope of payments from the Unemployment Disability Compensation Fund, which is continuously appropriated, it would make an appropriation.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 employment. Existing law requires an employer to provide medical, surgical, chiropractic, acupuncture, and hospital treatment that is reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law requires each employer to establish a utilization review process to review and approve, modify, or deny treatment recommendations and establishes an independent medical review process to resolve disputes over a utilization review decision. Existing law also establishes the Workers Compensation Appeals Board (appeals board) to exercise all judicial powers vested in it, including workers compensation proceedings for the recovery of compensation.Existing law requires, when payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the amount of the payment unreasonably delayed or refused to be increased up to 25% or up to $10,000, whichever is less, except for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process. Existing law provides that a determination by the appeals board or a final determination of the administrative director pursuant to independent medical review that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of imposing those penalties.This bill would exclude a final determination of the administrative director pursuant to independent medical review from the latter provision regarding conclusive evidence that medical treatment was unreasonably delayed or denied.Digest Key Vote: MAJORITY  Appropriation: NOYES  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1280.5 is added to the Unemployment Insurance Code, to read:1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.SECTION 1.Section 4610.1 of the Labor Code is amended to read:4610.1.An employee is not entitled to an increase in compensation under Section 5814 for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process in compliance with Section 4610. A determination by the appeals board that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of penalties under Section 5814. This section does not preclude an employee from entitlement to an increase in compensation under Section 5814 when an employer has unreasonably delayed or denied medical treatment due to an unreasonable delay in completion of the utilization review process set forth in Section 4610.

 Amended IN  Senate  April 22, 2020 Amended IN  Assembly  April 22, 2019 Amended IN  Assembly  March 26, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1107Introduced by Assembly Member Chu(Coauthor: Assembly Member Reyes)February 21, 2019 An act to amend Section 4610.1 of the Labor Code, relating to workers compensation.  add and repeal Section 1280.5 of the Unemployment Insurance Code, relating to unemployment insurance, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 1107, as amended, Chu. Workers compensation. Unemployment benefits: temporary additional benefits.Under existing law, unemployment compensation benefits are based on wages paid in a base period that is calculated according to the month within which the benefit year begins. Existing law provides that a weekly unemployment compensation benefit amount may be paid to an individual whose highest wages in the quarter of their base period exceeded $900, but a weekly benefit amount shall not exceed $450. This bill would, until March 1, 2021, instead provide that once the temporary federal unemployment increase due to the COVID-19 outbreak has ceased, an individuals weekly benefit amount would be increased by $600, notwithstanding the weekly benefits cap.Because this bill would expand the scope of payments from the Unemployment Disability Compensation Fund, which is continuously appropriated, it would make an appropriation.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 employment. Existing law requires an employer to provide medical, surgical, chiropractic, acupuncture, and hospital treatment that is reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law requires each employer to establish a utilization review process to review and approve, modify, or deny treatment recommendations and establishes an independent medical review process to resolve disputes over a utilization review decision. Existing law also establishes the Workers Compensation Appeals Board (appeals board) to exercise all judicial powers vested in it, including workers compensation proceedings for the recovery of compensation.Existing law requires, when payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the amount of the payment unreasonably delayed or refused to be increased up to 25% or up to $10,000, whichever is less, except for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process. Existing law provides that a determination by the appeals board or a final determination of the administrative director pursuant to independent medical review that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of imposing those penalties.This bill would exclude a final determination of the administrative director pursuant to independent medical review from the latter provision regarding conclusive evidence that medical treatment was unreasonably delayed or denied.Digest Key Vote: MAJORITY  Appropriation: NOYES  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Senate  April 22, 2020 Amended IN  Assembly  April 22, 2019 Amended IN  Assembly  March 26, 2019

Amended IN  Senate  April 22, 2020
Amended IN  Assembly  April 22, 2019
Amended IN  Assembly  March 26, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

 Assembly Bill 

No. 1107

Introduced by Assembly Member Chu(Coauthor: Assembly Member Reyes)February 21, 2019

Introduced by Assembly Member Chu(Coauthor: Assembly Member Reyes)
February 21, 2019

 An act to amend Section 4610.1 of the Labor Code, relating to workers compensation.  add and repeal Section 1280.5 of the Unemployment Insurance Code, relating to unemployment insurance, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1107, as amended, Chu. Workers compensation. Unemployment benefits: temporary additional benefits.

Under existing law, unemployment compensation benefits are based on wages paid in a base period that is calculated according to the month within which the benefit year begins. Existing law provides that a weekly unemployment compensation benefit amount may be paid to an individual whose highest wages in the quarter of their base period exceeded $900, but a weekly benefit amount shall not exceed $450. This bill would, until March 1, 2021, instead provide that once the temporary federal unemployment increase due to the COVID-19 outbreak has ceased, an individuals weekly benefit amount would be increased by $600, notwithstanding the weekly benefits cap.Because this bill would expand the scope of payments from the Unemployment Disability Compensation Fund, which is continuously appropriated, it would make an appropriation.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 employment. Existing law requires an employer to provide medical, surgical, chiropractic, acupuncture, and hospital treatment that is reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law requires each employer to establish a utilization review process to review and approve, modify, or deny treatment recommendations and establishes an independent medical review process to resolve disputes over a utilization review decision. Existing law also establishes the Workers Compensation Appeals Board (appeals board) to exercise all judicial powers vested in it, including workers compensation proceedings for the recovery of compensation.Existing law requires, when payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the amount of the payment unreasonably delayed or refused to be increased up to 25% or up to $10,000, whichever is less, except for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process. Existing law provides that a determination by the appeals board or a final determination of the administrative director pursuant to independent medical review that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of imposing those penalties.This bill would exclude a final determination of the administrative director pursuant to independent medical review from the latter provision regarding conclusive evidence that medical treatment was unreasonably delayed or denied.

Under existing law, unemployment compensation benefits are based on wages paid in a base period that is calculated according to the month within which the benefit year begins. Existing law provides that a weekly unemployment compensation benefit amount may be paid to an individual whose highest wages in the quarter of their base period exceeded $900, but a weekly benefit amount shall not exceed $450. 

This bill would, until March 1, 2021, instead provide that once the temporary federal unemployment increase due to the COVID-19 outbreak has ceased, an individuals weekly benefit amount would be increased by $600, notwithstanding the weekly benefits cap.

Because this bill would expand the scope of payments from the Unemployment Disability Compensation Fund, which is continuously appropriated, it would make an appropriation.

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 employment. Existing law requires an employer to provide medical, surgical, chiropractic, acupuncture, and hospital treatment that is reasonably required to cure or relieve the injured worker from the effects of the injury. Existing law requires each employer to establish a utilization review process to review and approve, modify, or deny treatment recommendations and establishes an independent medical review process to resolve disputes over a utilization review decision. Existing law also establishes the Workers Compensation Appeals Board (appeals board) to exercise all judicial powers vested in it, including workers compensation proceedings for the recovery of compensation.



Existing law requires, when payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the amount of the payment unreasonably delayed or refused to be increased up to 25% or up to $10,000, whichever is less, except for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process. Existing law provides that a determination by the appeals board or a final determination of the administrative director pursuant to independent medical review that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of imposing those penalties.



This bill would exclude a final determination of the administrative director pursuant to independent medical review from the latter provision regarding conclusive evidence that medical treatment was unreasonably delayed or denied.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 1280.5 is added to the Unemployment Insurance Code, to read:1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.SECTION 1.Section 4610.1 of the Labor Code is amended to read:4610.1.An employee is not entitled to an increase in compensation under Section 5814 for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process in compliance with Section 4610. A determination by the appeals board that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of penalties under Section 5814. This section does not preclude an employee from entitlement to an increase in compensation under Section 5814 when an employer has unreasonably delayed or denied medical treatment due to an unreasonable delay in completion of the utilization review process set forth in Section 4610.

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

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

SECTION 1. Section 1280.5 is added to the Unemployment Insurance Code, to read:1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.

SECTION 1. Section 1280.5 is added to the Unemployment Insurance Code, to read:

### SECTION 1.

1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.

1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.

1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.



1280.5. (a) Notwithstanding Section 1280 or any other law, if the temporary federal unemployment benefits provided in response to the COVID-19 outbreak have ceased, an individuals weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by six hundred dollars ($600).

(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits.

(c) This section shall remain in effect only until March 1, 2021, and as of that date is repealed.





An employee is not entitled to an increase in compensation under Section 5814 for unreasonable delay in the provision of medical treatment for periods of time necessary to complete the utilization review process in compliance with Section 4610. A determination by the appeals board that medical treatment is appropriate is not conclusive evidence that medical treatment was unreasonably delayed or denied for purposes of penalties under Section 5814. This section does not preclude an employee from entitlement to an increase in compensation under Section 5814 when an employer has unreasonably delayed or denied medical treatment due to an unreasonable delay in completion of the utilization review process set forth in Section 4610.