BILL NUMBER: SB 403 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Benoit
FEBRUARY 26, 2009
An act to amend Section 4903.5 of the Labor Code, relating to
workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
SB 403, as introduced, Benoit. Workers' compensation: lien claims.
Existing law provides for workers' compensation for injuries
incurred in the course of employment. Existing law authorizes the
Workers' Compensation Appeals Board to determine and allow certain
expenses, including certain reasonable expenses incurred by or on
behalf of the injured employee and medical-legal expenses, as liens
against any award of compensation.
This bill, commencing March 1, 2010, would prohibit a lien claim
for expenses incurred by or on behalf of the injured employee and
medical-legal expenses from being filed more than one year from the
date the health care provider, or the health care provider's agent,
was sent an explanation of benefits or explanation of review paying
or objecting to a bill in whole or in part. The bill would provide
that this prohibition shall apply without regard to whether the
injury occurs before, on, or after March 1, 2010.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:
SECTION 1. Section 4903.5 of the Labor Code is amended to read:
4903.5. (a) No lien claim for expenses as provided in subdivision
(b) of Section 4903 may be filed after six months from the date on
which the appeals board or a workers' compensation administrative
law
judge issues a final decision, findings, order, including an order
approving compromise and release, or award, on the merits of the
claim, after five years from the date of the injury for which the
services were provided, or after one year from the date the services
were provided, whichever is later.
(b) Notwithstanding subdivision (a), any health care provider,
health care service plan, group disability insurer, employee benefit
plan, or other entity providing medical benefits on a nonindustrial
basis, may file a lien claim for expenses as provided in subdivision
(b) of Section 4903 within six months after the person or entity
first has knowledge that an industrial injury is being claimed.
(c) The injured worker shall not be liable for any underlying
obligation if a lien claim has not been filed and served within the
allowable period. Except when the lien claimant is the applicant as
provided in Section 5501, a lien claimant shall not file a
declaration of readiness to proceed in any case until the
case-in-chief has been resolved.
(d) Notwithstanding any other law, no lien claim for expenses as
provided in subdivision (b) of Section 4903 may be filed more than
one year from the date the health care provider, or the health care
provider's agent, was sent an explanation of benefits or explanation
of review paying or objecting to a bill in whole or in part.
(1) This subdivision shall apply to all injuries, without regard
to whether the injury occurs before, on, or after the operative date
of this subdivision.
(2) This subdivision shall become operative on March 1, 2010.
(d)
(e) This section shall not apply to civil actions
brought under the Cartwright Act (Chapter 2 (commencing with Section
16700) of Part 2 of Division 7 of the Business and Professions Code),
the Unfair Practices Act (Chapter 4 (commencing with Section 17000)
of Part 2 of Division 7 of the Business and Professions Code), or the
federal Racketeer Influenced and Corrupt Organization Act (Chapter
96 (commencing with Section 1961) of Title 18 of the United States
Code) based on concerted action with other insurers that are not
parties to the case in which the lien or claim is filed.
BILL TEXT
INTRODUCED BY Senator Benoit
FEBRUARY 26, 2009
An act to amend Section 4903.5 of the Labor Code, relating to
workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
SB 403, as introduced, Benoit. Workers' compensation: lien claims.
Existing law provides for workers' compensation for injuries
incurred in the course of employment. Existing law authorizes the
Workers' Compensation Appeals Board to determine and allow certain
expenses, including certain reasonable expenses incurred by or on
behalf of the injured employee and medical-legal expenses, as liens
against any award of compensation.
This bill, commencing March 1, 2010, would prohibit a lien claim
for expenses incurred by or on behalf of the injured employee and
medical-legal expenses from being filed more than one year from the
date the health care provider, or the health care provider's agent,
was sent an explanation of benefits or explanation of review paying
or objecting to a bill in whole or in part. The bill would provide
that this prohibition shall apply without regard to whether the
injury occurs before, on, or after March 1, 2010.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:
SECTION 1. Section 4903.5 of the Labor Code is amended to read:
4903.5. (a) No lien claim for expenses as provided in subdivision
(b) of Section 4903 may be filed after six months from the date on
which the appeals board or a workers' compensation administrative
law
judge issues a final decision, findings, order, including an order
approving compromise and release, or award, on the merits of the
claim, after five years from the date of the injury for which the
services were provided, or after one year from the date the services
were provided, whichever is later.
(b) Notwithstanding subdivision (a), any health care provider,
health care service plan, group disability insurer, employee benefit
plan, or other entity providing medical benefits on a nonindustrial
basis, may file a lien claim for expenses as provided in subdivision
(b) of Section 4903 within six months after the person or entity
first has knowledge that an industrial injury is being claimed.
(c) The injured worker shall not be liable for any underlying
obligation if a lien claim has not been filed and served within the
allowable period. Except when the lien claimant is the applicant as
provided in Section 5501, a lien claimant shall not file a
declaration of readiness to proceed in any case until the
case-in-chief has been resolved.
(d) Notwithstanding any other law, no lien claim for expenses as
provided in subdivision (b) of Section 4903 may be filed more than
one year from the date the health care provider, or the health care
provider's agent, was sent an explanation of benefits or explanation
of review paying or objecting to a bill in whole or in part.
(1) This subdivision shall apply to all injuries, without regard
to whether the injury occurs before, on, or after the operative date
of this subdivision.
(2) This subdivision shall become operative on March 1, 2010.
(d)
(e) This section shall not apply to civil actions
brought under the Cartwright Act (Chapter 2 (commencing with Section
16700) of Part 2 of Division 7 of the Business and Professions Code),
the Unfair Practices Act (Chapter 4 (commencing with Section 17000)
of Part 2 of Division 7 of the Business and Professions Code), or the
federal Racketeer Influenced and Corrupt Organization Act (Chapter
96 (commencing with Section 1961) of Title 18 of the United States
Code) based on concerted action with other insurers that are not
parties to the case in which the lien or claim is filed.
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