Workers’ compensation.

Assembly Member Valencia's workers' compensation reform legislation expands financial disclosure requirements for medical service referrals within California's workers' compensation system. The measure requires interested parties to disclose any financial interests to third-party payers and entities processing payment claims for referred services.

The bill defines interested parties broadly to include injured employees, employers, insurers, claims administrators, attorneys, and medical service providers. These parties must reveal ownership stakes, compensation arrangements, and other financial relationships that could influence referral decisions. The legislation maintains existing prohibitions on referring patients to entities where the referring party holds a financial interest, with exemptions for claims administrators and network service providers. Commercially reasonable loans, equipment leases, and publicly traded securities are specifically excluded from financial interest definitions.

Enforcement provisions classify violations as misdemeanors subject to criminal prosecution and civil penalties up to $15,000 per offense. The Insurance Commissioner, Attorney General, and district attorneys may pursue civil cases, while licensing boards can take disciplinary action against violators. The bill also voids any compensation eligibility determinations made through prohibited referrals. These measures aim to prevent conflicts of interest and ensure transparency in workers' compensation medical referrals without creating new costs for local agencies.