Bill > AB1398

This bill amends Section 139.32 of the Labor Code to strengthen disclosure requirements and regulations in the workers' compensation system. The bill requires all "interested parties" - which include injured employees, employers, insurers, claims administrators, attorneys, medical service providers, and their representatives - to provide written disclosure of any financial interests when submitting a claim for payment for services. The bill specifically defines what constitutes a "financial interest," which can include various types of ownership, compensation, agreements, or payments between parties. It prohibits referrals or use of services where an interested party has a financial interest in the entity providing those services, and makes such actions unlawful. Violations of these provisions would be considered a misdemeanor, potentially resulting in civil penalties up to $15,000 per offense, potential disciplinary action by licensing authorities, and potential voiding of compensation determinations. The bill also specifies certain exceptions to these rules, such as publicly traded securities ownership or loans with commercially reasonable terms. Ultimately, the legislation aims to prevent conflicts of interest and ensure transparency in workers' compensation service referrals and payments.

Budget and Finance, Business and Industry, Labor and Employment

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