Bill Text: CA AB373 | 2017-2018 | Regular Session | Introduced

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Bill Title: Workers’ compensation.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2018-02-01 - Died at Desk. [AB373 Detail]

Download: California-2017-AB373-Introduced.html

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CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 373

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Introduced by Assembly Member Melendez

February 09, 2017

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An act to amend Section 3702.1 of the Labor Code, relating to workers’ compensation.

LEGISLATIVE COUNSEL'S DIGEST

AB 373, as introduced, Melendez. Workers’ compensation.

Existing law prohibits any person, firm, or corporation, other than an insurer admitted to transact workers’ compensation insurance, from contracting to administer claims of self-insured employers as third-party administrators unless they are in possession of a certificate of consent to administer self-insured employers’ workers’ compensation claims.

This bill would make technical, nonsubstantive changes to the those provisions.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 3702.1 of the Labor Code is amended to read:

3702.1.

 (a) No A person, firm, or corporation, other than an insurer admitted to transact workers’ compensation insurance in this state, shall not contract to administer claims of self-insured employers as a third-party administrator unless in possession of a certificate of consent to administer self-insured employers’ workers’ compensation claims.

(b) As a condition of receiving a certificate of consent, all persons given discretion by a third-party administrator to deny, accept, or negotiate a workers’ compensation claim shall demonstrate their competency to the director by written examination, or other methods approved by the director.

(c) A separate certificate shall be required for each adjusting location operated by a third-party administrator. A third-party administrator holding a certificate of consent shall be subject to regulation only under this division with respect to the adjustment, administration, and management of workers’ compensation claims for any self-insured employer.

(d) A third-party administrator retained by a self-insured employer to administer the employer’s workers’ compensation claims shall estimate the total accrued liability of the employer for the payment of compensation for the employer’s annual report to the director and shall make the estimate both in good faith and with the exercise of a reasonable degree of care. The use of a third-party administrator shall not, however, discharge or alter the employer’s responsibilities with respect to the report.