75. (a) There is in the department the Commission on Health and
Safety and Workers' Compensation. The commission shall be composed of
eight voting members. Four voting members shall represent organized
labor, and four voting members shall represent employers. Not more
than one employer member shall represent public agencies. Two of the
employer and two of the labor members shall be appointed by the
Governor. The Senate Committee on Rules and the Speaker of the
Assembly shall each appoint one employer and one labor
representative. The public employer representative shall be appointed
by the Governor. No action of the commission shall be valid unless
agreed to by a majority of the membership and by not less than two
members representing organized labor and two members representing
employers.
(b) The commission shall select one of the members representing
organized labor to chair the commission during the 1994 calendar
year, and thereafter the commission shall alternatively select an
employer and organized labor representative to chair the commission
for one-year terms.
(c) The initial terms of the members of the commission shall be
four years, and they shall hold office until the appointment of a
successor. However, the initial terms of one employer and one labor
member appointed by the Governor shall expire on December 31, 1995;
the initial terms of the members appointed by the Senate Committee on
Rules shall expire December 31, 1996; the initial terms of the
members appointed by the Speaker of the Assembly shall expire on
December 31, 1997; and the initial term of one employer and one labor
member appointed by the Governor shall expire on December 31, 1998.
Any vacancy shall be filled by appointment to the unexpired term.
(d) The commission shall meet every other month and upon the call
of the chair. Meetings shall be open to the public. Members of the
commission shall receive one hundred dollars ($100) for each day of
their actual attendance at meetings of the commission and other
official business of the commission and shall also receive their
actual and necessary traveling expenses incurred in the performance
of their duty as a member. Payment of per diem and traveling expenses
shall be made from the Workers' Compensation Administration
Revolving Fund, when appropriated by the Legislature.
76. The commission may employ officers, assistants, experts, and
other employees it deems necessary. All personnel of the commission
shall be under the supervision of the chair or an executive officer
to whom he or she delegates this responsibility. All personnel shall
be appointed pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), except for the one exemption allowed by subdivision
(e) of Section 4 of Article VII of the California Constitution.
77. (a) The commission shall conduct a continuing examination of
the workers' compensation system, as defined in Section 4 of Article
XIV of the California Constitution, and of the state's activities to
prevent industrial injuries and occupational diseases. The commission
may conduct or contract for studies it deems necessary to carry out
its responsibilities. In carrying out its duties, the commission
shall examine other states' workers' compensation programs and
activities to prevent industrial injuries and occupational diseases.
All state departments and agencies, and any rating organization
licensed by the Insurance Commissioner pursuant to Article 3
(commencing with Section 11750) of Chapter 3 of Part 3 of Division 2
of the Insurance Code, shall cooperate with the commission and upon
reasonable request provide information and data in their possession
that the commission deems necessary for the purpose of carrying out
its responsibilities. The commission shall issue an annual report on
the state of the workers' compensation system, including
recommendations for administrative or legislative modifications which
would improve the operation of the system. The report shall be made
available to the Governor, the Legislature, and the public on
request.
(b) On or before July 1, 2003, and periodically thereafter as it
deems necessary, the commission shall issue a report and
recommendations on the improvement and simplification of the notices
required to be provided by insurers and self-insured employers.
(c) The commission succeeds to, and is vested with, all of the
powers, duties, purposes, responsibilities, and jurisdiction of the
Health and Safety Commission which is hereby abolished, including the
administration of grants to assist in establishing effective
occupational injury and illness prevention programs.
77.5. (a) On or before July 1, 2004, the commission shall conduct a
survey and evaluation of evidence-based, peer-reviewed, nationally
recognized standards of care, including existing medical treatment
utilization standards, including independent medical review, as used
in other states, at the national level, and in other medical benefit
systems. The survey shall be updated periodically.
(b) On or before October 1, 2004, the commission shall issue a
report of its findings and recommendations to the administrative
director for purposes of the adoption of a medical treatment
utilization schedule.
77.7. (a) A study shall be undertaken to examine the causes of the
number of insolvencies among workers' compensation insurers within
the past 10 years. The study shall be conducted by an independent
research organization under the direction of the commission. Not
later than July 1, 2009, the commission and the department shall
publish the report of the study on its Internet Web site and shall
inform the Legislature and the Governor of the availability of the
report.
(b) The study shall include an analysis of the following: the
access to capital for workers' compensation insurance from all
sources between 1993 and 2003; the availability, source, and risk
assumed of reinsurers during this period; the use of deductible
policies and their effect on solvency regulation; market activities
by insurers and producers that affected market concentration;
activities, including financial oversight of insurers, by insurance
regulators and the National Association of Insurance Commissioners
during this period; the quality of data reporting to the commissioner'
s designated statistical agent and the accuracy of recommendations
provided by the commissioner's designated statistical agent during
this period of time; and underwriting, claims adjusting, and
reserving practices of insolvent insurers. The study shall also
include a survey of reports of other state agencies analyzing the
insurance market response to rising system costs within the
applicable time period.
(c) Data reasonably required for the study shall be made available
by the California Insurance Guarantee Association, Workers'
Compensation Insurance Rating Bureau, third-party administrators for
the insolvent insurers, whether prior to or after the insolvency, the
State Compensation Insurance Fund, and the Department of Insurance.
The commission shall also include a survey of reports by the
commission and other state agencies analyzing the insurance market
response to rising system costs within the applicable period of time.
(d) The cost of the study is not to exceed one million dollars
($1,000,000). Confidential information identifiable to a natural
person or insurance company held by an agency, organization,
association, or other person or entity shall be released to
researchers upon satisfactory agreement to maintain confidentiality.
Information or material that is not subject to subpoena from the
agency, organization, association, or other person or entity shall
not be subject to subpoena from the commission or the contracted
research organization.
(e) The costs of the study shall be borne one-half by the
commission from funds derived from the Workers' Compensation
Administration Revolving Fund and one-half by insurers from
assessments allocated to each insurer based on the insurer's
proportionate share of the market as shown by the Market Share Report
for Calendar Year 2006 published by the Department of Insurance.
(f) In order to protect individual company trade secrets, this
study shall not lead to the disclosure of, either directly or
indirectly, the business practices of a company that provides data
pursuant to this section. This prohibition shall not apply to
insurance companies that have been ordered by a court of competent
jurisdiction to be placed in liquidation under the supervision of a
liquidator or other authority.
78. (a) The commission shall review and approve applications from
employers and employee organizations, as well as applications
submitted jointly by an employer organization and an employee
organization, for grants to assist in establishing effective
occupational injury and illness prevention programs. The commission
shall establish policies for the evaluation of these applications and
shall give priority to applications proposing to target high-risk
industries and occupations, including those with high injury or
illness rates, and those in which employees are exposed to one or
more hazardous substances or conditions or where there is a
demonstrated need for research to determine effective strategies for
the prevention of occupational illnesses or injuries.
(b) Civil and administrative penalties assessed and collected
pursuant to Sections 129.5 and 4628 shall be deposited in the Workers'
Compensation Administration Revolving Fund. Moneys in the fund, when
appropriated by the Legislature to fund the grants under subdivision
(a) and other activities and expenses of the commission set forth in
this code, shall be expended by the department, upon approval by the
commission.
75. (a) There is in the department the Commission on Health and
Safety and Workers' Compensation. The commission shall be composed of
eight voting members. Four voting members shall represent organized
labor, and four voting members shall represent employers. Not more
than one employer member shall represent public agencies. Two of the
employer and two of the labor members shall be appointed by the
Governor. The Senate Committee on Rules and the Speaker of the
Assembly shall each appoint one employer and one labor
representative. The public employer representative shall be appointed
by the Governor. No action of the commission shall be valid unless
agreed to by a majority of the membership and by not less than two
members representing organized labor and two members representing
employers.
(b) The commission shall select one of the members representing
organized labor to chair the commission during the 1994 calendar
year, and thereafter the commission shall alternatively select an
employer and organized labor representative to chair the commission
for one-year terms.
(c) The initial terms of the members of the commission shall be
four years, and they shall hold office until the appointment of a
successor. However, the initial terms of one employer and one labor
member appointed by the Governor shall expire on December 31, 1995;
the initial terms of the members appointed by the Senate Committee on
Rules shall expire December 31, 1996; the initial terms of the
members appointed by the Speaker of the Assembly shall expire on
December 31, 1997; and the initial term of one employer and one labor
member appointed by the Governor shall expire on December 31, 1998.
Any vacancy shall be filled by appointment to the unexpired term.
(d) The commission shall meet every other month and upon the call
of the chair. Meetings shall be open to the public. Members of the
commission shall receive one hundred dollars ($100) for each day of
their actual attendance at meetings of the commission and other
official business of the commission and shall also receive their
actual and necessary traveling expenses incurred in the performance
of their duty as a member. Payment of per diem and traveling expenses
shall be made from the Workers' Compensation Administration
Revolving Fund, when appropriated by the Legislature.
76. The commission may employ officers, assistants, experts, and
other employees it deems necessary. All personnel of the commission
shall be under the supervision of the chair or an executive officer
to whom he or she delegates this responsibility. All personnel shall
be appointed pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), except for the one exemption allowed by subdivision
(e) of Section 4 of Article VII of the California Constitution.
77. (a) The commission shall conduct a continuing examination of
the workers' compensation system, as defined in Section 4 of Article
XIV of the California Constitution, and of the state's activities to
prevent industrial injuries and occupational diseases. The commission
may conduct or contract for studies it deems necessary to carry out
its responsibilities. In carrying out its duties, the commission
shall examine other states' workers' compensation programs and
activities to prevent industrial injuries and occupational diseases.
All state departments and agencies, and any rating organization
licensed by the Insurance Commissioner pursuant to Article 3
(commencing with Section 11750) of Chapter 3 of Part 3 of Division 2
of the Insurance Code, shall cooperate with the commission and upon
reasonable request provide information and data in their possession
that the commission deems necessary for the purpose of carrying out
its responsibilities. The commission shall issue an annual report on
the state of the workers' compensation system, including
recommendations for administrative or legislative modifications which
would improve the operation of the system. The report shall be made
available to the Governor, the Legislature, and the public on
request.
(b) On or before July 1, 2003, and periodically thereafter as it
deems necessary, the commission shall issue a report and
recommendations on the improvement and simplification of the notices
required to be provided by insurers and self-insured employers.
(c) The commission succeeds to, and is vested with, all of the
powers, duties, purposes, responsibilities, and jurisdiction of the
Health and Safety Commission which is hereby abolished, including the
administration of grants to assist in establishing effective
occupational injury and illness prevention programs.
77.5. (a) On or before July 1, 2004, the commission shall conduct a
survey and evaluation of evidence-based, peer-reviewed, nationally
recognized standards of care, including existing medical treatment
utilization standards, including independent medical review, as used
in other states, at the national level, and in other medical benefit
systems. The survey shall be updated periodically.
(b) On or before October 1, 2004, the commission shall issue a
report of its findings and recommendations to the administrative
director for purposes of the adoption of a medical treatment
utilization schedule.
77.7. (a) A study shall be undertaken to examine the causes of the
number of insolvencies among workers' compensation insurers within
the past 10 years. The study shall be conducted by an independent
research organization under the direction of the commission. Not
later than July 1, 2009, the commission and the department shall
publish the report of the study on its Internet Web site and shall
inform the Legislature and the Governor of the availability of the
report.
(b) The study shall include an analysis of the following: the
access to capital for workers' compensation insurance from all
sources between 1993 and 2003; the availability, source, and risk
assumed of reinsurers during this period; the use of deductible
policies and their effect on solvency regulation; market activities
by insurers and producers that affected market concentration;
activities, including financial oversight of insurers, by insurance
regulators and the National Association of Insurance Commissioners
during this period; the quality of data reporting to the commissioner'
s designated statistical agent and the accuracy of recommendations
provided by the commissioner's designated statistical agent during
this period of time; and underwriting, claims adjusting, and
reserving practices of insolvent insurers. The study shall also
include a survey of reports of other state agencies analyzing the
insurance market response to rising system costs within the
applicable time period.
(c) Data reasonably required for the study shall be made available
by the California Insurance Guarantee Association, Workers'
Compensation Insurance Rating Bureau, third-party administrators for
the insolvent insurers, whether prior to or after the insolvency, the
State Compensation Insurance Fund, and the Department of Insurance.
The commission shall also include a survey of reports by the
commission and other state agencies analyzing the insurance market
response to rising system costs within the applicable period of time.
(d) The cost of the study is not to exceed one million dollars
($1,000,000). Confidential information identifiable to a natural
person or insurance company held by an agency, organization,
association, or other person or entity shall be released to
researchers upon satisfactory agreement to maintain confidentiality.
Information or material that is not subject to subpoena from the
agency, organization, association, or other person or entity shall
not be subject to subpoena from the commission or the contracted
research organization.
(e) The costs of the study shall be borne one-half by the
commission from funds derived from the Workers' Compensation
Administration Revolving Fund and one-half by insurers from
assessments allocated to each insurer based on the insurer's
proportionate share of the market as shown by the Market Share Report
for Calendar Year 2006 published by the Department of Insurance.
(f) In order to protect individual company trade secrets, this
study shall not lead to the disclosure of, either directly or
indirectly, the business practices of a company that provides data
pursuant to this section. This prohibition shall not apply to
insurance companies that have been ordered by a court of competent
jurisdiction to be placed in liquidation under the supervision of a
liquidator or other authority.
78. (a) The commission shall review and approve applications from
employers and employee organizations, as well as applications
submitted jointly by an employer organization and an employee
organization, for grants to assist in establishing effective
occupational injury and illness prevention programs. The commission
shall establish policies for the evaluation of these applications and
shall give priority to applications proposing to target high-risk
industries and occupations, including those with high injury or
illness rates, and those in which employees are exposed to one or
more hazardous substances or conditions or where there is a
demonstrated need for research to determine effective strategies for
the prevention of occupational illnesses or injuries.
(b) Civil and administrative penalties assessed and collected
pursuant to Sections 129.5 and 4628 shall be deposited in the Workers'
Compensation Administration Revolving Fund. Moneys in the fund, when
appropriated by the Legislature to fund the grants under subdivision
(a) and other activities and expenses of the commission set forth in
this code, shall be expended by the department, upon approval by the
commission.
75. (a) There is in the department the Commission on Health and
Safety and Workers' Compensation. The commission shall be composed of
eight voting members. Four voting members shall represent organized
labor, and four voting members shall represent employers. Not more
than one employer member shall represent public agencies. Two of the
employer and two of the labor members shall be appointed by the
Governor. The Senate Committee on Rules and the Speaker of the
Assembly shall each appoint one employer and one labor
representative. The public employer representative shall be appointed
by the Governor. No action of the commission shall be valid unless
agreed to by a majority of the membership and by not less than two
members representing organized labor and two members representing
employers.
(b) The commission shall select one of the members representing
organized labor to chair the commission during the 1994 calendar
year, and thereafter the commission shall alternatively select an
employer and organized labor representative to chair the commission
for one-year terms.
(c) The initial terms of the members of the commission shall be
four years, and they shall hold office until the appointment of a
successor. However, the initial terms of one employer and one labor
member appointed by the Governor shall expire on December 31, 1995;
the initial terms of the members appointed by the Senate Committee on
Rules shall expire December 31, 1996; the initial terms of the
members appointed by the Speaker of the Assembly shall expire on
December 31, 1997; and the initial term of one employer and one labor
member appointed by the Governor shall expire on December 31, 1998.
Any vacancy shall be filled by appointment to the unexpired term.
(d) The commission shall meet every other month and upon the call
of the chair. Meetings shall be open to the public. Members of the
commission shall receive one hundred dollars ($100) for each day of
their actual attendance at meetings of the commission and other
official business of the commission and shall also receive their
actual and necessary traveling expenses incurred in the performance
of their duty as a member. Payment of per diem and traveling expenses
shall be made from the Workers' Compensation Administration
Revolving Fund, when appropriated by the Legislature.
76. The commission may employ officers, assistants, experts, and
other employees it deems necessary. All personnel of the commission
shall be under the supervision of the chair or an executive officer
to whom he or she delegates this responsibility. All personnel shall
be appointed pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), except for the one exemption allowed by subdivision
(e) of Section 4 of Article VII of the California Constitution.
77. (a) The commission shall conduct a continuing examination of
the workers' compensation system, as defined in Section 4 of Article
XIV of the California Constitution, and of the state's activities to
prevent industrial injuries and occupational diseases. The commission
may conduct or contract for studies it deems necessary to carry out
its responsibilities. In carrying out its duties, the commission
shall examine other states' workers' compensation programs and
activities to prevent industrial injuries and occupational diseases.
All state departments and agencies, and any rating organization
licensed by the Insurance Commissioner pursuant to Article 3
(commencing with Section 11750) of Chapter 3 of Part 3 of Division 2
of the Insurance Code, shall cooperate with the commission and upon
reasonable request provide information and data in their possession
that the commission deems necessary for the purpose of carrying out
its responsibilities. The commission shall issue an annual report on
the state of the workers' compensation system, including
recommendations for administrative or legislative modifications which
would improve the operation of the system. The report shall be made
available to the Governor, the Legislature, and the public on
request.
(b) On or before July 1, 2003, and periodically thereafter as it
deems necessary, the commission shall issue a report and
recommendations on the improvement and simplification of the notices
required to be provided by insurers and self-insured employers.
(c) The commission succeeds to, and is vested with, all of the
powers, duties, purposes, responsibilities, and jurisdiction of the
Health and Safety Commission which is hereby abolished, including the
administration of grants to assist in establishing effective
occupational injury and illness prevention programs.
77.5. (a) On or before July 1, 2004, the commission shall conduct a
survey and evaluation of evidence-based, peer-reviewed, nationally
recognized standards of care, including existing medical treatment
utilization standards, including independent medical review, as used
in other states, at the national level, and in other medical benefit
systems. The survey shall be updated periodically.
(b) On or before October 1, 2004, the commission shall issue a
report of its findings and recommendations to the administrative
director for purposes of the adoption of a medical treatment
utilization schedule.
77.7. (a) A study shall be undertaken to examine the causes of the
number of insolvencies among workers' compensation insurers within
the past 10 years. The study shall be conducted by an independent
research organization under the direction of the commission. Not
later than July 1, 2009, the commission and the department shall
publish the report of the study on its Internet Web site and shall
inform the Legislature and the Governor of the availability of the
report.
(b) The study shall include an analysis of the following: the
access to capital for workers' compensation insurance from all
sources between 1993 and 2003; the availability, source, and risk
assumed of reinsurers during this period; the use of deductible
policies and their effect on solvency regulation; market activities
by insurers and producers that affected market concentration;
activities, including financial oversight of insurers, by insurance
regulators and the National Association of Insurance Commissioners
during this period; the quality of data reporting to the commissioner'
s designated statistical agent and the accuracy of recommendations
provided by the commissioner's designated statistical agent during
this period of time; and underwriting, claims adjusting, and
reserving practices of insolvent insurers. The study shall also
include a survey of reports of other state agencies analyzing the
insurance market response to rising system costs within the
applicable time period.
(c) Data reasonably required for the study shall be made available
by the California Insurance Guarantee Association, Workers'
Compensation Insurance Rating Bureau, third-party administrators for
the insolvent insurers, whether prior to or after the insolvency, the
State Compensation Insurance Fund, and the Department of Insurance.
The commission shall also include a survey of reports by the
commission and other state agencies analyzing the insurance market
response to rising system costs within the applicable period of time.
(d) The cost of the study is not to exceed one million dollars
($1,000,000). Confidential information identifiable to a natural
person or insurance company held by an agency, organization,
association, or other person or entity shall be released to
researchers upon satisfactory agreement to maintain confidentiality.
Information or material that is not subject to subpoena from the
agency, organization, association, or other person or entity shall
not be subject to subpoena from the commission or the contracted
research organization.
(e) The costs of the study shall be borne one-half by the
commission from funds derived from the Workers' Compensation
Administration Revolving Fund and one-half by insurers from
assessments allocated to each insurer based on the insurer's
proportionate share of the market as shown by the Market Share Report
for Calendar Year 2006 published by the Department of Insurance.
(f) In order to protect individual company trade secrets, this
study shall not lead to the disclosure of, either directly or
indirectly, the business practices of a company that provides data
pursuant to this section. This prohibition shall not apply to
insurance companies that have been ordered by a court of competent
jurisdiction to be placed in liquidation under the supervision of a
liquidator or other authority.
78. (a) The commission shall review and approve applications from
employers and employee organizations, as well as applications
submitted jointly by an employer organization and an employee
organization, for grants to assist in establishing effective
occupational injury and illness prevention programs. The commission
shall establish policies for the evaluation of these applications and
shall give priority to applications proposing to target high-risk
industries and occupations, including those with high injury or
illness rates, and those in which employees are exposed to one or
more hazardous substances or conditions or where there is a
demonstrated need for research to determine effective strategies for
the prevention of occupational illnesses or injuries.
(b) Civil and administrative penalties assessed and collected
pursuant to Sections 129.5 and 4628 shall be deposited in the Workers'
Compensation Administration Revolving Fund. Moneys in the fund, when
appropriated by the Legislature to fund the grants under subdivision
(a) and other activities and expenses of the commission set forth in
this code, shall be expended by the department, upon approval by the
commission.
