Workers’ compensation.

Assembly Member Valencia's workers' compensation reform measure mandates written disclosure of financial interests when interested parties submit payment claims for referred services. The bill expands existing requirements by specifying that physicians, attorneys, claims administrators, and other stakeholders must document any financial relationships with service providers at the time of claim submission.

The legislation defines financial interests broadly to include ownership stakes, compensation arrangements, debt instruments, and indirect payments between referring parties and service entities. It maintains current prohibitions on referrals to entities where the referring party holds a financial interest, while carving out exceptions for standard commercial arrangements like market-rate loans and equipment leases. The measure preserves existing exemptions for employee services, legal referrals compliant with State Bar rules, and certain physician referrals.

Violations constitute misdemeanors subject to civil penalties up to $15,000 per offense, enforceable by the Insurance Commissioner, Attorney General, or district attorneys. The bill authorizes licensing boards to pursue disciplinary action against violators independent of criminal proceedings. For attorneys, violations trigger automatic referral to the State Bar for potential sanctions. Claims stemming from prohibited referrals become void, preventing payment for associated services.