BILL NUMBER: AB 338 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2007
INTRODUCED BY Assembly Member Coto
FEBRUARY 14, 2007
An act to amend Section 4651 4656 of
the Labor Code, relating to workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
AB 338, as amended, Coto. Workers' compensation:
permanent disability. temporary disability payments.
Existing workers' compensation law generally requires employers to
secure the payment of workers' compensation, including medical
treatment, for injuries incurred by their employees that arise out
of, or in the course of, employment. Existing law prohibits aggregate
disability payments for a single injury occurring on or after April
19, 2004, causing temporary disability from extending for more than
104 compensable weeks within a period of 2 years from the date of
commencement of temporary disability payment, except if an employee
suffers from certain injuries or conditions.
This bill would prohibit aggregate disability payments for a
single injury occurring on or after January 1, 2008, causing
temporary disability from extending for more than 156 compensable
weeks within a period of 5 years from the date of injury, with
specified exceptions.
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 his or her employment. Existing law
requires the payment of disability benefits to eligible individuals
for injuries sustained in the course of employment that cause
permanent disability, and specifies that the amount of those payments
be computed in accordance with a prescribed formula. Existing law
required the administrative director, on or before July 1, 2004, to
present to the Governor recommendations on how to provide better
access to funds paid to injured workers in light of the requirements
of federal and state laws and regulations governing the negotiability
of disability indemnity payments, and to make specific
recommendations regarding payments to migratory and seasonal
farmworkers.
This bill would delete that obsolete reporting requirement, and
would require the administrative director, on or before July 1, 2008,
to present to the Governor an evaluation of the benefits, if any, to
injured workers as a result of the utilization of electronic funds
transfers of funds owed to those injured workers.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4656 of the Labor
Code is amended t o read:
4656. (a) Aggregate disability payments for a single injury
occurring prior to January 1, 1979, causing temporary disability
shall not extend for more than 240 compensable weeks within a period
of five years from the date of the injury.
(b) Aggregate disability payments for a single injury occurring on
or after January 1, 1979, and prior to the effective date
of subdivision (c) April 19, 2004 , causing
temporary partial disability shall not extend for more than 240
compensable weeks within a period of five years from the date of the
injury.
(c) (1) Aggregate disability payments for a single injury
occurring on or after the effective date of this subdivision
April 19, 2004, and prior to January 1, 2008 ,
causing temporary disability shall not extend for more than 104
compensable weeks within a period of two years from the date of
commencement of temporary disability payment.
(2) Notwithstanding paragraph (1), for an employee who suffers
from the following injuries or conditions, aggregate disability
payments for a single injury occurring on or after the
effective date of this subdivision April 19, 2004, and
prior to January 1, 2008 , causing temporary disability shall
not extend for more than 240 compensable weeks within a period of
five years from the date of the injury:
(A) Acute and chronic hepatitis B.
(B) Acute and chronic hepatitis C.
(C) Amputations.
(D) Severe burns.
(E) Human immunodeficiency virus (HIV).
(F) High-velocity eye injuries.
(G) Chemical burns to the eyes.
(H) Pulmonary fibrosis.
(I) Chronic lung disease.
(d) (1) Aggregate disability payments for a single injury
occurring on or after January 1, 2008, causing temporary disability
shall not extend for more than 156 compensable weeks within a period
of five years from the date of injury, unless extended pursuant to
paragraph (2) or (3).
(2) Notwithstanding paragraph (1), for an employee who suffers
from the following injuries or conditions, aggregate disability
payments for a single injury occurring on or after January 1, 2008,
causing temporary disability shall, except as provided in paragraph
(3), not extend for more than 240 compensable weeks within a period
of five years from the date of the injury:
(A) Acute and chronic hepatitis B.
(B) Acute and chronic hepatitis C.
(C) Amputations.
(D) Severe burns.
(E) Human immunodeficiency virus (HIV).
(F) High-velocity eye injuries.
(G) Chemical burns to the eyes.
(H) Pulmonary fibrosis.
(I) Chronic lung disease.
(3) For purposes of this subdivision, the aggregate number of
weeks of payment shall be extended by the time when any of the
following occur:
(A) Temporary disability benefits are payable for any period after
the filing of a claim form and after notice of the disability to the
employer, other than the three-day waiting period, which accrued
more than 14 days prior to the date of payment.
(B) Temporary disability benefits are payable for any period while
the provision of medical treatment to the employee is delayed by an
employer's objection made or purporting to be made pursuant to
Section 4062 and the dispute is ultimately decided in favor of
providing the disputed treatment.
(C) Temporary disability benefits are payable for any period while
the provision of medical treatment to the employee is delayed by the
employer's conduct of utilization review pursuant to Section 4610 if
the employer fails to communicate the utilization review
determination within the time requirements of Section 4610.
(D) Temporary disability benefits are payable for any period while
the provision of medical treatment to the employee is delayed by a
utilization review determination if the determination is timely
disputed by the employee and ultimately decided in favor of providing
the disputed medical treatment, unless the employer demonstrates
that the ultimate decision is based on information that could not
reasonably have been obtained by the employer within the time allowed
for a utilization review determination under Section 4610.
(e) In the case of an employee who is entitled to a leave of
absence without loss of salary pursuant to Article 6 (commencing with
Section 4800) or Article 7 (commencing with Section 4850), the
one-year limitation on that leave of absence shall be extended for
any period when provision of medical treatment to the employee is
delayed under circumstances, which would extend the running of the
aggregate limit on temporary disability benefits pursuant to
subdivision (d).
SECTION 1. Section 4651 of the Labor Code is
amended to read:
4651. (a) No disability indemnity payment shall be made by any
written instrument unless it is immediately negotiable and payable in
cash, on demand, without discount at some established place of
business in the state.
Nothing in this section shall prohibit an employer from depositing
the disability indemnity payment in an account in any bank, savings
and loan association or credit union of the employee's choice in this
state, provided the employee has voluntarily authorized the deposit,
nor shall it prohibit an employer from electronically depositing the
disability indemnity payment in an account in any bank, savings and
loan association, or credit union, that the employee has previously
authorized to receive electronic deposits of payroll, unless the
employee has requested, in writing, that disability indemnity
benefits not be electronically deposited in the account.
(b) It is not a violation of this section if a delay in the
negotiation of a written instrument is caused solely by the
application of state or federal banking laws or regulations.
(c) On or before July 1, 2008, the administrative director shall
present to the Governor an evaluation of the benefits, if any, to
injured workers as a result of the utilization of electronic funds
transfers of funds owed to those injured workers. The Commission on
Health and Safety and Workers' Compensation and the Employment
Development Department shall assist the administrative director in
the completion of this report.