Section § 75

Explanation

This law establishes a commission within the department focused on Health and Safety and Workers’ Compensation. The commission has eight voting members, split equally between representatives of organized labor and employers. Appointments are made by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly, with specific rules for public agency representation. Decisions require agreement from a majority and must include votes from both labor and employer representatives.

The chairmanship alternates annually between labor and employer representatives starting with a labor representative in 1994. Initial terms for the commission members are four years, but specific staggered expiration dates apply for the first appointees, and vacancies are to be filled for the remainder of the term.

The commission meets every two months and as needed. Meetings are open to the public, and members are compensated $100 per day for attendance, along with necessary travel expenses, from a designated fund.

(a)CA Labor Code § 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)CA Labor Code § 75(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)CA Labor Code § 75(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)CA Labor Code § 75(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.

Section § 76

Explanation

This law section allows the commission to hire employees such as officers, assistants, and experts as needed. All employees will be managed by the chairperson or an executive officer designated by them. Hiring should follow the rules of the State Civil Service Act. However, there's an exception for one position as allowed by the California Constitution.

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.

Section § 77

Explanation

This section explains that the commission is responsible for continuously reviewing California's workers’ compensation system to ensure it effectively prevents workplace injuries and diseases. The commission can conduct studies and must consider workers' compensation programs from other states. All relevant state departments and licensed organizations must provide information when requested. The commission issues an annual report suggesting improvements and shares this with the Governor, Legislature, and public.

The commission must also periodically recommend ways to improve and simplify notices from insurers and self-insured employers. Additionally, the commission takes over the duties of the now-abolished Health and Safety Commission, including managing grants for occupational injury and illness prevention programs.

(a)CA Labor Code § 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)CA Labor Code § 77(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)CA Labor Code § 77(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.

Section § 77.5

Explanation

This law requires the commission to review and assess healthcare standards by July 1, 2004. They need to look at peer-reviewed, evidence-based medical standards both within the U.S. and from other systems internationally. This review should include various medical treatment guidelines and independent medical review procedures. The findings need to be updated from time to time.

By October 1, 2004, they must provide a report of their findings and any recommendations for creating a medical treatment utilization schedule to the administrative director.

(a)CA Labor Code § 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)CA Labor Code § 77.5(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.

Section § 77.8

Explanation

This law requires the Commission on Health and Safety and Workers’ Compensation to study how COVID-19 claims have affected the workers’ compensation system. This includes looking at impacts on various benefits like indemnity, medical, and death benefits, and how these vary among different jobs. The study must also evaluate the effect of certain sections of related laws. A preliminary or final report was due to the Legislature and Governor by December 31, 2021, with the final report due by April 30, 2022.

The Commission on Health and Safety and Workers’ Compensation shall conduct a study of the impacts claims of COVID-19 have had on the workers’ compensation system, including overall impacts on indemnity benefits, medical benefits, and death benefits, including differences in the impacts across differing occupational groups, and including the effect of Sections 3212.87 and 3212.88. A preliminary report or a final report shall be delivered to the Legislature, pursuant to Section 9795 of the Government Code, and the Governor by December 31, 2021, and the final report shall be delivered to the Legislature, pursuant to Section 9795 of the Government Code, and the Governor no later than April 30, 2022.

Section § 78

Explanation

This law section involves a commission that reviews and approves grant applications from employers and employee organizations. These grants aim to help create programs that prevent workplace injuries and illnesses. Priority is given to industries with high injury rates or hazardous conditions. The money for these grants comes from penalties collected and is managed by the Workers’ Compensation Administration Revolving Fund. The legislature must appropriate these funds, which the department will use, following the commission's approval.

(a)CA Labor Code § 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)CA Labor Code § 78(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.