3820. (a) In enacting this section, the Legislature declares that
there exists a compelling interest in eliminating fraud in the
workers' compensation system. The Legislature recognizes that the
conduct prohibited by this section is, for the most part, already
subject to criminal penalties pursuant to other provisions of law.
However, the Legislature finds and declares that the addition of
civil money penalties will provide necessary enforcement flexibility.
The Legislature, in exercising its plenary authority related to
workers' compensation, declares that these sections are both
necessary and carefully tailored to combat the fraud and abuse that
is rampant in the workers' compensation system.
(b) It is unlawful to do any of the following:
(1) Willfully misrepresent any fact in order to obtain workers'
compensation insurance at less than the proper rate.
(2) Present or cause to be presented any knowingly false or
fraudulent written or oral material statement in support of, or in
opposition to, any claim for compensation for the purpose of
obtaining or denying any compensation, as defined in Section 3207.
(3) Knowingly solicit, receive, offer, pay, or accept any rebate,
refund, commission, preference, patronage, dividend, discount, or
other consideration, whether in the form of money or otherwise, as
compensation or inducement for soliciting or referring clients or
patients to obtain services or benefits pursuant to Division 4
(commencing with Section 3200) unless the payment or receipt of
consideration for services other than the referral of clients or
patients is lawful pursuant to Section 650 of the Business and
Professions Code or expressly permitted by the Rules of Professional
Conduct of the State Bar.
(4) Knowingly operate or participate in a service that, for
profit, refers or recommends clients or patients to obtain medical or
medical-legal services or benefits pursuant to Division 4
(commencing with Section 3200).
(5) Knowingly assist, abet, solicit, or conspire with any person
who engages in an unlawful act under this section.
(c) For the purposes of this section, "statement" includes, but is
not limited to, any notice, proof of injury, bill for services,
payment for services, hospital or doctor records, X-ray, test
results, medical-legal expenses as defined in Section 4620, or other
evidence of loss, expense, or payment.
(d) Any person who violates any provision of this section shall be
subject, in addition to any other penalties that may be prescribed
by law, to a civil penalty of not less than four thousand dollars
($4,000) nor more than ten thousand dollars ($10,000), plus an
assessment of not more than three times the amount of the medical
treatment expenses paid pursuant to Article 2 (commencing with
Section 4600) and medical-legal expenses paid pursuant to Article 2.5
(commencing with Section 4620) for each claim for compensation
submitted in violation of this section.
(e) Any person who violates subdivision (b) and who has a prior
felony conviction of an offense set forth in Section 1871.1 or 1871.4
of the Insurance Code, or in Section 549 of the Penal Code, shall be
subject, in addition to the penalties set forth in subdivision (d),
to a civil penalty of four thousand dollars ($4,000) for each item or
service with respect to which a violation of subdivision (b)
occurred.
(f) The penalties provided for in subdivisions (d) and (e) shall
be assessed and recovered in a civil action brought in the name of
the people of the State of California by any district attorney.
(g) In assessing the amount of the civil penalty the court shall
consider any one or more of the relevant circumstances presented by
any of the parties to the case, including, but not limited to, the
following: the nature and seriousness of the misconduct, the number
of violations, the persistence of the misconduct, the length of time
over which the misconduct occurred, the willfulness of the defendant'
s misconduct, and the defendant's assets, liabilities, and net worth.
(h) All penalties collected pursuant to this section shall be paid
to the Workers' Compensation Fraud Account in the Insurance Fund
pursuant to Section 1872.83 of the Insurance Code. All costs incurred
by district attorneys in carrying out this article shall be funded
from the Workers' Compensation Fraud Account. It is the intent of the
Legislature that the program instituted by this article be supported
entirely from funds produced by moneys deposited into the Workers'
Compensation Fraud Account from the imposition of civil money
penalties for workers' compensation fraud collected pursuant to this
section. All moneys claimed by district attorneys as costs of
carrying out this article shall be paid pursuant to a determination
by the Fraud Assessment Commission established by Section 1872.83 of
the Insurance Code and on appropriation by the Legislature.
3822. The administrative director shall, on an annual basis,
provide to every employer, claims adjuster, third party
administrator, physician, and attorney who participates in the
workers' compensation system, a notice that warns the recipient
against committing workers' compensation fraud. The notice shall
specify the penalties that are applied for committing workers'
compensation fraud. The Fraud Assessment Commission, established by
Section 1872.83 of the Insurance Code, shall provide the
administrative director with all funds necessary to carry out this
section.
3823. (a) The administrative director shall, in coordination with
the Bureau of Fraudulent Claims of the Department of Insurance, the
Medi-Cal Fraud Task Force, and the Bureau of Medi-Cal Fraud and Elder
Abuse of the Department of Justice, or their successor entities,
adopt protocols, to the extent that these protocols are applicable to
achieve the purpose of subdivision (b), similar to those adopted by
the Department of Insurance concerning medical billing and provider
fraud.
(b) Any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit,
attorney, or other person that believes that a fraudulent claim has
been made by any person or entity providing medical care, as
described in Section 4600, shall report the apparent fraudulent claim
in the manner prescribed by subdivision (a).
(c) No insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person that reports any apparent fraudulent claim under
this section shall be subject to any civil liability in a cause of
action of any kind when the insurer, self-insured employer,
third-party administrator, workers' compensation administrative law
judge, audit unit, attorney, or other person acts in good faith,
without malice, and reasonably believes that the action taken was
warranted by the known facts, obtained by reasonable efforts. Nothing
in this section is intended to, nor does in any manner, abrogate or
lessen the existing common law or statutory privileges and immunities
of any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person.
3820. (a) In enacting this section, the Legislature declares that
there exists a compelling interest in eliminating fraud in the
workers' compensation system. The Legislature recognizes that the
conduct prohibited by this section is, for the most part, already
subject to criminal penalties pursuant to other provisions of law.
However, the Legislature finds and declares that the addition of
civil money penalties will provide necessary enforcement flexibility.
The Legislature, in exercising its plenary authority related to
workers' compensation, declares that these sections are both
necessary and carefully tailored to combat the fraud and abuse that
is rampant in the workers' compensation system.
(b) It is unlawful to do any of the following:
(1) Willfully misrepresent any fact in order to obtain workers'
compensation insurance at less than the proper rate.
(2) Present or cause to be presented any knowingly false or
fraudulent written or oral material statement in support of, or in
opposition to, any claim for compensation for the purpose of
obtaining or denying any compensation, as defined in Section 3207.
(3) Knowingly solicit, receive, offer, pay, or accept any rebate,
refund, commission, preference, patronage, dividend, discount, or
other consideration, whether in the form of money or otherwise, as
compensation or inducement for soliciting or referring clients or
patients to obtain services or benefits pursuant to Division 4
(commencing with Section 3200) unless the payment or receipt of
consideration for services other than the referral of clients or
patients is lawful pursuant to Section 650 of the Business and
Professions Code or expressly permitted by the Rules of Professional
Conduct of the State Bar.
(4) Knowingly operate or participate in a service that, for
profit, refers or recommends clients or patients to obtain medical or
medical-legal services or benefits pursuant to Division 4
(commencing with Section 3200).
(5) Knowingly assist, abet, solicit, or conspire with any person
who engages in an unlawful act under this section.
(c) For the purposes of this section, "statement" includes, but is
not limited to, any notice, proof of injury, bill for services,
payment for services, hospital or doctor records, X-ray, test
results, medical-legal expenses as defined in Section 4620, or other
evidence of loss, expense, or payment.
(d) Any person who violates any provision of this section shall be
subject, in addition to any other penalties that may be prescribed
by law, to a civil penalty of not less than four thousand dollars
($4,000) nor more than ten thousand dollars ($10,000), plus an
assessment of not more than three times the amount of the medical
treatment expenses paid pursuant to Article 2 (commencing with
Section 4600) and medical-legal expenses paid pursuant to Article 2.5
(commencing with Section 4620) for each claim for compensation
submitted in violation of this section.
(e) Any person who violates subdivision (b) and who has a prior
felony conviction of an offense set forth in Section 1871.1 or 1871.4
of the Insurance Code, or in Section 549 of the Penal Code, shall be
subject, in addition to the penalties set forth in subdivision (d),
to a civil penalty of four thousand dollars ($4,000) for each item or
service with respect to which a violation of subdivision (b)
occurred.
(f) The penalties provided for in subdivisions (d) and (e) shall
be assessed and recovered in a civil action brought in the name of
the people of the State of California by any district attorney.
(g) In assessing the amount of the civil penalty the court shall
consider any one or more of the relevant circumstances presented by
any of the parties to the case, including, but not limited to, the
following: the nature and seriousness of the misconduct, the number
of violations, the persistence of the misconduct, the length of time
over which the misconduct occurred, the willfulness of the defendant'
s misconduct, and the defendant's assets, liabilities, and net worth.
(h) All penalties collected pursuant to this section shall be paid
to the Workers' Compensation Fraud Account in the Insurance Fund
pursuant to Section 1872.83 of the Insurance Code. All costs incurred
by district attorneys in carrying out this article shall be funded
from the Workers' Compensation Fraud Account. It is the intent of the
Legislature that the program instituted by this article be supported
entirely from funds produced by moneys deposited into the Workers'
Compensation Fraud Account from the imposition of civil money
penalties for workers' compensation fraud collected pursuant to this
section. All moneys claimed by district attorneys as costs of
carrying out this article shall be paid pursuant to a determination
by the Fraud Assessment Commission established by Section 1872.83 of
the Insurance Code and on appropriation by the Legislature.
3822. The administrative director shall, on an annual basis,
provide to every employer, claims adjuster, third party
administrator, physician, and attorney who participates in the
workers' compensation system, a notice that warns the recipient
against committing workers' compensation fraud. The notice shall
specify the penalties that are applied for committing workers'
compensation fraud. The Fraud Assessment Commission, established by
Section 1872.83 of the Insurance Code, shall provide the
administrative director with all funds necessary to carry out this
section.
3823. (a) The administrative director shall, in coordination with
the Bureau of Fraudulent Claims of the Department of Insurance, the
Medi-Cal Fraud Task Force, and the Bureau of Medi-Cal Fraud and Elder
Abuse of the Department of Justice, or their successor entities,
adopt protocols, to the extent that these protocols are applicable to
achieve the purpose of subdivision (b), similar to those adopted by
the Department of Insurance concerning medical billing and provider
fraud.
(b) Any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit,
attorney, or other person that believes that a fraudulent claim has
been made by any person or entity providing medical care, as
described in Section 4600, shall report the apparent fraudulent claim
in the manner prescribed by subdivision (a).
(c) No insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person that reports any apparent fraudulent claim under
this section shall be subject to any civil liability in a cause of
action of any kind when the insurer, self-insured employer,
third-party administrator, workers' compensation administrative law
judge, audit unit, attorney, or other person acts in good faith,
without malice, and reasonably believes that the action taken was
warranted by the known facts, obtained by reasonable efforts. Nothing
in this section is intended to, nor does in any manner, abrogate or
lessen the existing common law or statutory privileges and immunities
of any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person.
3820. (a) In enacting this section, the Legislature declares that
there exists a compelling interest in eliminating fraud in the
workers' compensation system. The Legislature recognizes that the
conduct prohibited by this section is, for the most part, already
subject to criminal penalties pursuant to other provisions of law.
However, the Legislature finds and declares that the addition of
civil money penalties will provide necessary enforcement flexibility.
The Legislature, in exercising its plenary authority related to
workers' compensation, declares that these sections are both
necessary and carefully tailored to combat the fraud and abuse that
is rampant in the workers' compensation system.
(b) It is unlawful to do any of the following:
(1) Willfully misrepresent any fact in order to obtain workers'
compensation insurance at less than the proper rate.
(2) Present or cause to be presented any knowingly false or
fraudulent written or oral material statement in support of, or in
opposition to, any claim for compensation for the purpose of
obtaining or denying any compensation, as defined in Section 3207.
(3) Knowingly solicit, receive, offer, pay, or accept any rebate,
refund, commission, preference, patronage, dividend, discount, or
other consideration, whether in the form of money or otherwise, as
compensation or inducement for soliciting or referring clients or
patients to obtain services or benefits pursuant to Division 4
(commencing with Section 3200) unless the payment or receipt of
consideration for services other than the referral of clients or
patients is lawful pursuant to Section 650 of the Business and
Professions Code or expressly permitted by the Rules of Professional
Conduct of the State Bar.
(4) Knowingly operate or participate in a service that, for
profit, refers or recommends clients or patients to obtain medical or
medical-legal services or benefits pursuant to Division 4
(commencing with Section 3200).
(5) Knowingly assist, abet, solicit, or conspire with any person
who engages in an unlawful act under this section.
(c) For the purposes of this section, "statement" includes, but is
not limited to, any notice, proof of injury, bill for services,
payment for services, hospital or doctor records, X-ray, test
results, medical-legal expenses as defined in Section 4620, or other
evidence of loss, expense, or payment.
(d) Any person who violates any provision of this section shall be
subject, in addition to any other penalties that may be prescribed
by law, to a civil penalty of not less than four thousand dollars
($4,000) nor more than ten thousand dollars ($10,000), plus an
assessment of not more than three times the amount of the medical
treatment expenses paid pursuant to Article 2 (commencing with
Section 4600) and medical-legal expenses paid pursuant to Article 2.5
(commencing with Section 4620) for each claim for compensation
submitted in violation of this section.
(e) Any person who violates subdivision (b) and who has a prior
felony conviction of an offense set forth in Section 1871.1 or 1871.4
of the Insurance Code, or in Section 549 of the Penal Code, shall be
subject, in addition to the penalties set forth in subdivision (d),
to a civil penalty of four thousand dollars ($4,000) for each item or
service with respect to which a violation of subdivision (b)
occurred.
(f) The penalties provided for in subdivisions (d) and (e) shall
be assessed and recovered in a civil action brought in the name of
the people of the State of California by any district attorney.
(g) In assessing the amount of the civil penalty the court shall
consider any one or more of the relevant circumstances presented by
any of the parties to the case, including, but not limited to, the
following: the nature and seriousness of the misconduct, the number
of violations, the persistence of the misconduct, the length of time
over which the misconduct occurred, the willfulness of the defendant'
s misconduct, and the defendant's assets, liabilities, and net worth.
(h) All penalties collected pursuant to this section shall be paid
to the Workers' Compensation Fraud Account in the Insurance Fund
pursuant to Section 1872.83 of the Insurance Code. All costs incurred
by district attorneys in carrying out this article shall be funded
from the Workers' Compensation Fraud Account. It is the intent of the
Legislature that the program instituted by this article be supported
entirely from funds produced by moneys deposited into the Workers'
Compensation Fraud Account from the imposition of civil money
penalties for workers' compensation fraud collected pursuant to this
section. All moneys claimed by district attorneys as costs of
carrying out this article shall be paid pursuant to a determination
by the Fraud Assessment Commission established by Section 1872.83 of
the Insurance Code and on appropriation by the Legislature.
3822. The administrative director shall, on an annual basis,
provide to every employer, claims adjuster, third party
administrator, physician, and attorney who participates in the
workers' compensation system, a notice that warns the recipient
against committing workers' compensation fraud. The notice shall
specify the penalties that are applied for committing workers'
compensation fraud. The Fraud Assessment Commission, established by
Section 1872.83 of the Insurance Code, shall provide the
administrative director with all funds necessary to carry out this
section.
3823. (a) The administrative director shall, in coordination with
the Bureau of Fraudulent Claims of the Department of Insurance, the
Medi-Cal Fraud Task Force, and the Bureau of Medi-Cal Fraud and Elder
Abuse of the Department of Justice, or their successor entities,
adopt protocols, to the extent that these protocols are applicable to
achieve the purpose of subdivision (b), similar to those adopted by
the Department of Insurance concerning medical billing and provider
fraud.
(b) Any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit,
attorney, or other person that believes that a fraudulent claim has
been made by any person or entity providing medical care, as
described in Section 4600, shall report the apparent fraudulent claim
in the manner prescribed by subdivision (a).
(c) No insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person that reports any apparent fraudulent claim under
this section shall be subject to any civil liability in a cause of
action of any kind when the insurer, self-insured employer,
third-party administrator, workers' compensation administrative law
judge, audit unit, attorney, or other person acts in good faith,
without malice, and reasonably believes that the action taken was
warranted by the known facts, obtained by reasonable efforts. Nothing
in this section is intended to, nor does in any manner, abrogate or
lessen the existing common law or statutory privileges and immunities
of any insurer, self-insured employer, third-party administrator,
workers' compensation administrative law judge, audit unit, attorney,
or other person.
