AB 2046 — Workers' compensation insurance fraud reporting.

Summary

Existing law requires the Insurance Commissioner to aggressively pursue all reported incidents of probable workers' compensation fraud, as defined. Existing law requires that an annual assessment be imposed on workers' compensation insurers for purposes related to workers' compensation fraud, and requires the Fraud Assessment Commission, as specified, to establish the amount of the assessment. Existing law requires that, for each fiscal year, the total amount of revenues derived from the assessment, together with amounts collected pursuant to fines imposed for unlawful acts, be not less than $3,000,000. Existing law requires that funds appropriated by the Legislature that are not expended in the fiscal year for which they have been appropriated, and that have not been allocated to district attorneys, be applied to satisfy for the immediately following fiscal year the minimum total amount required. This bill would instead authorize, rather than require, funds appropriated by the Legislature that are not expended in the fiscal year for which they have been appropriated, and that have not been allocated to the district attorneys, to be applied to satisfy for the immediately following fiscal year the minimum total amount required, or, subject to appropriation by the Legislature, to be used to augment funding in the immediately following fiscal year. Existing law requires the California State Auditor's Office to evaluate the effectiveness of the efforts of the Fraud Assessment Commission, the Fraud Division, the Department of Insurance, and the Department of Industrial Relations, as well as local law enforcement agencies, including district attorneys, in identifying, investigating, and prosecuting workers' compensation fraud and the willful failure to secure payment of workers' compensation. Existing law also includes a related, obsolete provision requiring the office to submit a related report. This bill would delete those provisions. Existing law makes it a misdemeanor or a felony to engage in specified acts of fraud or material misrepresentation for the purpose of obtaining or denying workers' compensation, as specified. Existing law, the Workers' Compensation Insurance Fraud Reporting Act (the act) , requires insurers and licensed rating organizations to release upon request to an authorized governmental agency, as defined, relevant information deemed important to the authorized governmental agency that the insurer or licensed rating organization may possess relating to any specific workers' compensation insurance fraud investigation. The act requires, under specified circumstances, an insurer or licensed rating organization to notify the local district attorney's office and the Fraud Division of the Department of Insurance, and authorizes that entity to notify any other authorized governmental agency, of suspected fraud, as specified. The act also requires the Employment Development Department to release, upon written request, to an authorized governmental agency, relevant information that the Employment Development Department may possess relating to any specific workers' compensation insurance fraud investigation. The act authorizes the governmental agency that is provided with information pursuant to those provisions to release or provide that information in a confidential manner to any other authorized governmental agency for purposes of investigation, prosecution, or prevention of insurance fraud or workers' compensation fraud. This bill would require an authorized governmental agency that is provided with information pursuant to those provisions to release or provide that information, upon request, as described above, unless it would violate federal law or otherwise compromise an investigation. The bill would also require an authorized governmental agency that seeks to disclose this information to any other governmental agency that is not authorized to receive that information to obtain Employment Development Department approval prior to disclosure, as specified.

Bill Text

• Chaptered 09/23/18 - Chaptered Current pdf September 23, 2018
• Enrolled 08/29/18 - Enrolled pdf August 29, 2018
• Amended 08/17/18 - Amended Senate pdf August 17, 2018
• Amended 06/14/18 - Amended Senate pdf June 14, 2018
• Amended 04/05/18 - Amended Assembly pdf April 05, 2018
• Introduced 02/06/18 - Introduced pdf February 06, 2018
• AB2046 View text html

Action History

1. September 23, 2018

   Chaptered by Secretary of State - Chapter 709, Statutes of 2018.

2. September 23, 2018

   Approved by the Governor.

3. September 05, 2018

   Enrolled and presented to the Governor at 3 p.m.

4. August 27, 2018

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6614.).

5. August 22, 2018

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 24 pursuant to Assembly Rule 77.

6. August 21, 2018

   Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5557.).

7. August 20, 2018

   Read second time. Ordered to third reading.

8. August 17, 2018

   Read second time and amended. Ordered returned to second reading.

9. August 17, 2018

   From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 16).

10. August 06, 2018

    In committee: Referred to APPR. suspense file.

11. July 02, 2018

    (Received June 29 pursuant to Joint Rule 61(b)(13).)

12. July 02, 2018

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 27). Re-referred to Com. on APPR.

13. June 14, 2018

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.

14. June 07, 2018

    Referred to Com. on INS.

15. May 30, 2018

    In Senate. Read first time. To Com. on RLS. for assignment.

16. May 29, 2018

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 5401.)

17. May 25, 2018

    Read second time. Ordered to third reading.

18. May 25, 2018

    From committee: Do pass. (Ayes 16. Noes 0.) (May 25).

19. May 02, 2018

    In committee: Set, first hearing. Referred to APPR. suspense file.

20. April 09, 2018

    Re-referred to Com. on APPR.

21. April 05, 2018

    Read second time and amended.

22. April 04, 2018

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 4).

23. February 16, 2018

    Referred to Com. on INS.

24. February 07, 2018

    From printer. May be heard in committee March 9.

25. February 06, 2018

    Read first time. To print.

Sponsors

• Daly · Primary

Votes

Subjects