Bill > SB536

This bill amends the Workers' Compensation Insurance Fraud Reporting Act to enhance fraud detection and information sharing between government agencies and insurers. Specifically, the bill requires insurers or licensed rating organizations to notify the Employment Development Department (EDD) when they suspect premium fraud, in addition to notifying local district attorneys and the Department of Insurance's Fraud Division. The bill also allows insurers, agents, or licensed rating organizations to request detailed payroll information from EDD, enabling them to compare records related to workers' compensation claims or policies, provided certain requirements are met. The requested information must be used confidentially and cannot be shared with law enforcement except in specific fraud investigation contexts. Importantly, the bill now mandates that requesters reimburse EDD for the actual, direct costs of releasing this information. The legislative findings emphasize the need to protect workers' personal identifying information while simultaneously facilitating comprehensive fraud investigations. This change aims to improve the detection and prevention of workers' compensation insurance fraud by creating more robust information-sharing mechanisms between insurers and government agencies.

Budget and Finance, Business and Industry, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB536