New Laws

New Laws Enacted in 2007

In 2007, two new laws were enacted adjusting provisions of the major reform legislation of 2003 and 2004 (see below). AB 1073 (Nava) allows for additional visits for physical medicine beyond the 24-visist cap when the treatment is post-surgery and when the treatment is provided according to postsurgical treatment guidelines. AB 338 (Coto) extends the timeframe for Temporary Disability benefits, allowing injured workers to collect their 104 weeks of TD benefits over a five-year period.

View the WCAN's press release on AB 338 here.

New Laws Enacted in 2004

On April 19, 2004 Governor Schwarzenegger signed Senate Bill 899 (Poochigian), which instituted significant reforms for California's workers' compensation system. The provisions of SB 899, some of which took effect immediately and others of which require the adoption new rules and regulations before taking effect, addressed many of the core issues afflicting California's system. Through its provisions, SB 899 is intended to:

• Reduce the high incidence of unnecessary and costly litigation.
• Produce consistent and predictable outcomes for permanently disabled workers and encourage return to work.
• Improve medical treatment using proven methods of delivering quality care affordably and expeditiously.
• Ensure that injuries are the direct result of employment, and provide that permanent disability benefits reflect the degree of causation related to the injury.

According to the Workers' Compensation Rating Bureau, the provisions of SB 899 which take effect immediately will save employers $3.3 billion dollars, with additional savings resulting from the development of a new permanent disability rating schedule. Find out more infomation here.

Go here for more resources on SB 899:

• Text of SB 899 (PDF)
• Summary of SB 899's provisions (PDF)
• Frequently asked questions about how SB 899 affects your business

New Laws Enacted in 2002 and 2003

In addition to SB 899 passed in 2004, the following was enacted in the two previous years reforming aspects of California's workers' compensation system:

• Assembly Bill 749
• Assembly Bill 227
• Senate Bill 228

Assembly Bill 749, enacted in 2002, increased benefits beginning January 1, 2003, with additional benefit increases to take effect in 2004 and 2005. Thereafter, benefits will be tied to cost of living adjustments in the state's average weekly wage. The Workers' Compensation Insurance Rating Bureau estimated that this increase would cost employers $3.2 billion annually by 2006. Find out more here.

In an effort to help offset the cost of the higher benefits under AB 749, the Legislature enacted AB 227 and SB 228 in 2003 to control over-utilization of medical care in the workers' compensation system. The Workers' Compensation Insurance Rating Bureau estimated that measures would save employers an estimated $4.2 billion. Several provisions of SB 899 cleaned up technical aspects of SB 228 as enacted. Find out more here.

Use the links below to read the text of these bills:

• AB 749 (PDF)
• AB 227 (PDF)
• SB 228 (PDF)