Bill > AB1398

This bill amends Section 139.32 of the California Labor Code to strengthen disclosure requirements and restrictions in the workers' compensation system. The bill requires all "interested parties" - which includes injured employees, employers, insurers, claims administrators, attorneys, and medical service providers - to provide written disclosure of any financial interests when submitting a claim for payment for medical services or related referrals. The bill maintains existing prohibitions against referral arrangements that could create conflicts of interest, such as receiving kickbacks or creating schemes to ensure referrals to specific entities. Violations of these provisions remain a misdemeanor and can result in civil penalties up to $15,000 per offense, potential disciplinary action from licensing authorities, and potential voiding of compensation determinations. The bill also clarifies what types of financial arrangements (like standard loans, leases, or publicly traded securities) do not constitute problematic financial interests. Notably, the bill includes a provision stating that no state reimbursement is required for implementing these changes, as they primarily relate to creating or modifying criminal definitions.

Budget and Finance, Business and Industry, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1398