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<br />G.A-B <br />WORKERS' COMPENSATION - ANYONE'S GUESS <br />In his state-of-the-state address, Governor Administrative costs: Amend Labor Code 5814 <br />Schwarzenegger made it clear to the Legislature so that the penalty is assessed on the actual late <br />that if they did not bri.,g him a reform package by payment rather than the entire claim-past, present <br />March 2004, he woula take his own proposal to the and future; allow an insurer or employer the ability <br />voters in November. Th.1re has been no word from to self-ilT!pose a penalty upon themselves so that <br />legislative leadership thaI discussions on reform will an unintentional violation can be quickly remedied. <br />resume. The Senate Labor Committee and the <br />Assembly Insurance Committee have not given Other issues: Restore the exclusive remedy <br />notice that the workers' compensation debate will and reduce the possibility for lawsuits for employers <br />continue. who follow the law; eliminate prisoners from being <br /> eligible for compensation; eliminate the requirement <br />In the meantime, the League will continue to included in SB 228 for all insurers to inspect the <br />support both reform vehicles, SB 4x 3 (Poochigian) safety program of every single business; modify the <br />and AB 4x 1 (Maldanado). These bills contain alternative dispute resolution (ADR) program <br />significant reform that will aid cities and counties as provisions of SB 228 so that all industries can avail <br />well as private businesses in curbing skyrocketing themselves of the successful model of ADR cur- <br />workers' compensation costs. In summary, the bills rently authorized for the construction trades. <br />do the following: <br />Indemnitv costs: Mandate use of objective <br />medical findings; outline the use of nationally SCA 1 - ACCESS TO GOVERNMENT <br />recognized guidelines, like the American Medical <br />Association guidelines, for impairment to improve INFORMATION PASSES <br />consistency of awards; curb the use of permanent BOTH THE ASSEMBLY AND SENATE BY <br />disability (PO) benefits by limiting awards for those <br />who return to their previously held jobs or who are UNANIMOUS VOTE <br />offered. but refuse to return to their job, or an <br />equivalent paying job; bring rationality to the SCA 1 passed both houses and will now be <br />apportionment determination, so that a person placed on the November 2004 ballot. Sup- <br />cannot continue to receive new PO awards for the ported by the League of California Cities, SCA <br />same injury; ensure that cumulative injuries are 1 amends the State Constitution to provide that <br />truly work related by applying the standard of the public has a right of access to governmen- <br />"predominant cause" to those kinds of injuries and tal information. <br />for all other specific injuries, apply a 10% standard; <br />clearly define "permanent and stationary" so that The League worked tirelessly with the <br />claims cannot continue unresolved; require that California Newspaper Publishers Association, <br />medical physicians be the ones to determine the California First Amendment Coalition, and <br />permanent disability. the Attorney General's Office to reach a mutu- <br /> ally acceptable piece of legislation. SCA 1, in its <br />Medical costs: Allow for an employee to change final form, states explicitly that the public has a <br />doctors after 30 days or to pre-designate a doctor right to information about its government <br />only if it is mutually agreed to by the employer; whether in the form of access to public records <br />make clear that the mandate to "cure and relieve" or to public meetings. SCA 1 is an important <br />is based on sound, proven principles of medical measure that not only allows for governmental <br />necessity; establish an independent medical review access, but also protects existing statutes that <br />process; ensure that the "qualified medical exam- address the need to keep certain types of <br />iner" (QME) process is used solely for PO determi- information confidential. <br />nations; improve the utilization controls created in <br />SB 228 (Alarcon, Chapter 639 statutes of 2003) For more information, contact Amy Brown at <br />that the abuse of over-utilization of the system is browna@cacities.or<;l or call 916-658-8279. <br />truly curtailed. <br />PAGE 2/PRIORITY FOCUS Visit the league's Official Web Site--www.cacities.org <br />