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1.  This act shall be known as the Labor Code.



2.  The provisions of this code, in so far as they are substantially
the same as existing provisions relating to the same subject matter,
shall be construed as restatements and continuations thereof and not
as new enactments.


3.  All persons who, at the time this code goes into effect, hold
office under any of the acts repealed by this code, which offices are
continued by this code, continue to hold the same according to the
former tenure thereof.


4.  No action or proceeding commenced before this code takes effect,
and no right accrued, is affected by the provisions of this code,
but all procedure thereafter taken therein shall conform to the
provisions of this code so far as possible.




5.  Unless the context otherwise requires, the general provisions
hereinafter set forth shall govern the construction of this code.



6.  Division, part, chapter, article, and section headings contained
herein shall not be deemed to govern, limit, modify or in any manner
affect the scope, meaning, or intent of the provisions of any
division, part, chapter, article, or section hereof.




7.  Whenever, by the provisions of this code, an administrative
power is granted to a public officer or a duty imposed upon such an
officer, the power may be exercised or the duty performed by a deputy
of the officer or by a person authorized pursuant to law.




8.  Writing includes any form of recorded message capable of
comprehension by ordinary visual means.  Whenever any notice, report,
statement or record is required by this code, it shall be made in
writing.
   Wherever any notice or other communication is required by this
code to be mailed by registered mail by or to any person or
corporation, the mailing of such notice or other communication by
certified mail shall be deemed to be a sufficient compliance with the
requirements of law.



9.  Whenever any reference is made to any portion of this code or of
any other law of this State, such reference shall apply to all
amendments and additions thereto now or hereafter made.



10.  "Section" means a section of this code unless some other
statute is specifically mentioned.



11.  The present tense includes the past and future tenses; and the
future, the present.



12.  The masculine gender includes the feminine and neuter.



12.1.  The Legislature hereby declares its intent that the terms
"man" or "men" where appropriate shall be deemed "person" or "persons"
and any references to the terms "man" or "men" in sections of this
code be changed to "person" or "persons" when such code sections are
being amended for any purpose.  This section is declaratory and not
amendatory of existing law.



13.  The singular number includes the plural, and the plural the
singular.


14.  "County" includes "city and county."



15.  "Shall" is mandatory and "may" is permissive.



16.  "Oath" includes affirmation.



17.  "Signature" or "subscription" includes mark when the signer or
subscriber can not write, such signer's or subscriber's name being
written near the mark by a witness who writes his own name near the
signer's or subscriber's name; but a signature or subscription by
mark can be acknowledged or can serve as a signature or subscription
to a sworn statement only when two witnesses so sign their own names
thereto.



18.  "Person" means any person, association, organization,
partnership, business trust, limited liability company, or
corporation.


18.5.  "Agency" means the Labor and Workforce Development Agency.



19.  "Department" means Department of Industrial Relations.



19.5.  "Secretary" means the Secretary of Labor and Workforce
Development.


20.  "Director" means Director of Industrial Relations.



21.  "Labor Commissioner" means Chief of the Division of Labor
Standards Enforcement.



22.  "Violation" includes a failure to comply with any requirement
of the code.



23.  Except in cases where a different punishment is prescribed,
every offense declared by this code to be a misdemeanor is punishable
by imprisonment in a county jail, not exceeding six months, or by a
fine not exceeding one thousand dollars ($1,000), or both.



24.  If any provision of this code, or the application thereof to
any person or circumstances, is held invalid the remainder of the
code, and the application of its provisions to other persons or
circumstances, shall not be affected thereby.




25.  "Sheriff" includes "marshal."



26.  Notwithstanding any other provision of this code, no person who
has not previously obtained a license regulated by this code shall
be denied a license solely on the basis that he has been convicted of
a crime if he has obtained a certificate of rehabilitation under
Section 4852.01 and following of the Penal Code, and if his probation
has been terminated and the information or accusation has been
dismissed pursuant to Section 1203.4 of the Penal Code.



27.  Whenever the term "workers' compensation judge" or "workers'
compensation referee" is used in this code in connection with the
workers' compensation law, the term shall mean "workers' compensation
administrative law judge."


28.  For injuries occurring on and after January 1, 1991, whenever
the term "independent medical examiner" is used in this code, the
term shall mean "qualified medical evaluator."



29.  "Medical director" means the physician appointed by the
administrative director pursuant to Section 122.



29.5.  The Governor shall annually issue a proclamation declaring
April 28 as Workers' Memorial Day in remembrance of the courage and
integrity of American workers, and recommending that the day be
observed in an appropriate manner.

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50.  There is in the Labor and Workforce Development Agency the
Department of Industrial Relations.



50.5.  One of the functions of the Department of Industrial
Relations is to foster, promote, and develop the welfare of the wage
earners of California, to improve their working conditions, and to
advance their opportunities for profitable employment.




50.6.  The Department of Industrial Relations may assist and
cooperate with the Wage and Hour Division, and the Children's Bureau,
United States Department of Labor, in the enforcement within this
State of the Fair Labor Standards Act of 1938, and, subject to the
regulations of the Administrator of the Wage and Hour Division, or
the Chief of the Children's Bureau, and subject to the laws of the
State applicable to the receipt and expenditures of money, may be
reimbursed by the division or the bureau for the reasonable cost of
such assistance and cooperation.



50.7.  (a) The Department of Industrial Relations is the state
agency designated to be responsible for administering the state plan
for the development and enforcement of occupational safety and health
standards relating to issues covered by corresponding standards
promulgated under the federal Occupational Safety and Health Act of
1970 (Public Law 91-596).  The state plan shall be consistent with
the provisions of state law governing occupational safety and health,
including, but not limited to, Chapter 6 (commencing with Section
140) and Chapter 6.5 (commencing with Section 148) of Division 1, and
Division 5 (commencing with Section 6300), of this code.
   (b) The budget and budget bill submitted pursuant to Article IV,
Section 12 of the California Constitution shall include in the item
for the support of the Department of Industrial Relations amounts
sufficient to fully carry out the purposes and provisions of the
state plan and this code in a manner which assures that the risk of
industrial injury, exposure to toxic substances, illness and death to
employees will be minimized.
   (c) Because Federal grants are available, maximum Federal funding
shall be sought and, to the extent possible, the cost of
administering the state plan shall be paid by funds obtained from
federal grants.
   (d) The Governor and the Department of Industrial Relations shall
take all steps necessary to prevent withdrawal of approval for the
state plan by the Federal government.  If Federal approval of the
state plan has been withdrawn before passage of this initiative, or
if it is withdrawn at any time after passage of this initiative, the
Governor shall submit a new state plan immediately so that California
shall be approved and shall continue to have access to Federal
funds.



50.8.  The department shall develop a long range program for
upgrading and expanding the resources of the State of California in
the area of occupational health and medicine.  The program shall
include a contractual agreement with the University of California for
the creation of occupational health centers affiliated with regional
schools of medicine and public health.  One such occupational health
center shall be situated in the northern part of the state and one
in the southern part.  The primary function of these occupational
health centers shall be the training of occupational physicians and
nurses, toxicologists, epidemiologists, and industrial hygienists.
In addition, the centers shall serve as referral centers for
occupational illnesses and shall engage in research on the causes,
diagnosis, and prevention of occupational illnesses.
   The centers shall also inform the Division of Occupational Safety
and Health Administration of the Department of Industrial Relations,
State Department of Health Services, and the Department of Food and
Agriculture of their clinical and research findings.



50.9.  In furtherance of the provisions of Section 50.5, the
director, or the Director of Employment Development, may comment on
the impact of actions or projects proposed by public agencies on
opportunities for profitable employment, and such agencies shall
consider such comments in their decisions.



51.  The department shall be conducted under the control of an
executive officer known as Director of Industrial Relations.  The
Director of Industrial Relations shall be appointed by the Governor
with the advice and consent of the Senate and hold office at the
pleasure of the Governor and shall receive an annual salary provided
for by Chapter 6 (commencing with Section 11550) of Part 1 of
Division 3 of Title 2 of the Government Code.



52.  Except as otherwise prescribed in this code, the provisions of
the Government Code relating to departments of the State shall govern
and apply to the conduct of the department.



53.  Whenever in Section 1001 or in Part 1 (commencing with Section
11000) of Division 3 of Title 2 of the Government Code "head of the
department" or similar designation occurs, the same shall, for the
purposes of this code, mean the director, except that in respect to
matters which by the express provisions of this code are committed to
or retained under the jurisdiction of the Division of Workers'
Compensation, the State Compensation Insurance Fund, the Occupational
Safety and Health Standards Board, the Occupational Safety and
Health Appeals Board, or the Industrial Welfare Commission the
designation shall mean the Division of Workers' Compensation, the
Administrative Director of the Division of Workers' Compensation, the
Workers' Compensation Appeals Board, the State Compensation
Insurance Fund, the Occupational Safety and Health Standards Board,
the Occupational Safety and Health Appeals Board, or the Industrial
Welfare Commission, as the case may be.



54.  The director shall perform all duties, exercise all powers and
jurisdiction, assume and discharge all responsibilities, and carry
out and effect all purposes vested by law in the department, except
as otherwise expressly provided by this code.



54.5.  The director may appoint an attorney and assistants licensed
to practice law in this state.  In the absence of an appointment, the
attorney for the Division of Workers' Compensation shall also
perform legal services for the department as the Director of
Industrial Relations may direct.



55.  For the purpose of administration the director shall organize
the department subject to the approval of the Governor, in the manner
he deems necessary properly to segregate and conduct the work of the
department.  Notwithstanding any provision in this code to the
contrary, the director may require any division in the department to
assist in the enforcement of any or all laws within the jurisdiction
of the department.  Except as provided in Section 18930 of the Health
and Safety Code, the director may, in accordance with the provisions
of Chapter 4.5 (commencing with Section 11371), Part 1, Division 3,
Title 2 of the Government Code, make rules and regulations that are
reasonably necessary to carry out the provisions of this chapter and
to effectuate its purposes.  The provisions of this section, however,
shall not apply to the Division of Workers' Compensation or the
State Compensation Insurance Fund, except as to any power or
jurisdiction within those divisions as may have been specifically
conferred upon the director by law.



56.  The work of the department shall be divided into at least six
divisions known as the Division of  Workers' Compensation, the
Division of Occupational Safety and Health, the Division of Labor
Standards Enforcement, the Division of Labor Statistics and Research,
the Division of Apprenticeship Standards, and the State Compensation
Insurance Fund.



57.  Each division shall be in charge of a chief who shall be
appointed by the Governor and shall receive a salary fixed in
accordance with law, and shall serve at the pleasure of the director.



57.1.  (a) The Chief of the Division of Occupational Safety and
Health shall receive an annual salary as provided by Chapter 6
(commencing with Section 11550) of Part 1 of Division 3 of Title 2 of
the Government Code.
   (b) All officers or employees of the Division of Occupational
Safety and Health employed after the operative date of this section
shall be appointed by the director in accordance with the provisions
of the State Civil Service Act. Notwithstanding the foregoing, two
deputy chiefs of the Division of Occupational Safety and Health shall
be appointed by the Governor, with the advice of the Director of
Industrial Relations, to serve at the pleasure of the Director of
Industrial Relations.  The two deputy chiefs shall be exempt from
civil service.  The annual salaries of the two exempted deputy chiefs
shall be fixed by the Director of Industrial Relations, subject to
the approval of the Director of Finance.



57.5.  All duties, powers, and jurisdiction relating to the
administration of the State Compensation Insurance Fund shall be
vested in the Board of Directors of the State Compensation Insurance
Fund.


58.  The department shall have possession and control of all
records, books, papers, offices, equipment, supplies, moneys, funds,
appropriations, land, and other property, real or personal, held for
the benefit or use of all commissions, divisions, and offices of the
department and the title to all such property held for the use and
benefit of the State is hereby transferred to the State.



59.  The department through its appropriate officers shall
administer and enforce all laws imposing any duty, power, or function
upon the offices or officers of the department.



60.  Except as otherwise provided, the provisions of Divisions 4 and
4.5 of this code shall be administered and enforced by the Division
of Workers' Compensation.



60.5.  (a) The provisions of Part 1 of Division 5 of this code shall
be administered and enforced by the department through the Division
of Occupational Safety and Health, subject to the direction of the
director pursuant to Section 50.7.
   (b) The Division of Occupational Safety and Health succeeds to,
and is vested with, all of the powers, duties, purposes,
responsibilities, and jurisdiction of the Division of Industrial
Safety, which is hereby abolished, and any other jurisdiction
conferred by law.
   (c) All powers, duties, and responsibilities of the Chief of the
Division of Industrial Safety are hereby transferred to the Chief of
the Division of Occupational Safety and Health.
   (d) Any regulation or other action made, prescribed, issued,
granted, or performed by the abolished Division of Industrial Safety
in the administration of a function transferred pursuant to
subdivision (b) shall remain in effect and shall be deemed to be a
regulation or action of the Division of Occupational Safety and
Health unless and until repealed, modified, or rescinded by such
division.
   (e) Whenever any reference is made in any law to the abolished
Division of Industrial Safety, it shall be deemed to be a reference
to, and to mean, the Division of Occupational Safety and Health.




60.6.  All persons serving in the state civil service in the
Division of Industrial Safety or in the Occupational Health Branch of
the State Department of Health Services, and engaged in the
performance of a function transferred to the Division of Occupational
Safety and Health shall, in accordance with Section 19370 of the
Government Code, remain in the state civil service and are hereby
transferred to the Department of Industrial Relations.  The status,
positions, and rights of such persons shall not be affected by their
transfer and shall continue to be retained by them pursuant to the
State Civil Service Act, except as to positions the duties of which
are vested in a position that is exempt from civil service.




60.7.  The Division of Occupational Safety and Health shall have
possession and control of all records, books, papers, offices,
equipment, supplies, moneys, funds, appropriations, land, licenses,
permits, agreements, contracts, claims, judgments, and other
property, real or personal, held for the benefit or use of the
Division of Industrial Safety and the Occupational Health Branch of
the State Department of Health Services with respect to the functions
of those organizations that are transferred to the Division of
Occupational Safety and Health.


60.8.  The Division of Occupational Safety and Health may expend
money appropriated for the administration of the laws the enforcement
of which is committed to the division.  Such expenditures by the
division shall be made in accordance with law in carrying out the
purposes for which the appropriations were made.



60.9.  There is within the Division of Occupational Safety and
Health an occupational health unit and an occupational safety unit,
which shall assist in the performance of occupational health
functions and occupational safety functions, respectively, assigned
to the division by law.  There is also within the occupational health
unit an occupational carcinogen control unit responsible for
implementing the division's obligations pursuant to the Occupational
Carcinogens Control Act of 1976 (Part 10 (commencing with Sec.
9000)).  The division, in performing its responsibilities under this
code, shall provide for laboratory services and service personnel
with respect to occupational health matters by interagency agreement
with the State Department of Health Services or another public
entity, by contract with a private sector laboratory, or by
establishment of a laboratory within the division, or by a
combination thereof.  In the event that the division contracts with
the private sector for laboratory services, the division shall enter
into an interagency agreement with the State Department of Health
Services for quality control and performance evaluation of the
contract laboratory as well as analysis of nonroutine laboratory
samples.


61.  The provisions of Chapter 1 (commencing with Section 1171) of
Part 4 of Division 2 shall be administered and enforced by the
department through the Division of Labor Standards Enforcement.



62.  The department may expend money appropriated for the
administration of the provisions of the laws, the enforcement of
which is committed to the department.  The department may expend such
money for the use, support, or maintenance of any commission or
office of the department.  Such expenditures by the department shall
be made in accordance with law in carrying on the work for which such
appropriations were made.



62.5.  (a) (1) The Workers' Compensation Administration Revolving
Fund is hereby created as a special account in the State Treasury.
Money in the fund may be expended by the department, upon
appropriation by the Legislature, for all of the following purposes,
and may not be used or borrowed for any other purpose:
   (A) For the administration of the workers' compensation program
set forth in this division and Division 4 (commencing with Section
3200), other than the activities financed pursuant to Section 3702.5.

   (B) For the Return-to-Work Program set forth in Section 139.48.
   (C) For the enforcement of the insurance coverage program
established and maintained by the Labor Commissioner pursuant to
Section 90.3.
   (2) The fund shall consist of surcharges made pursuant to
paragraph (1) of subdivision (f).
   (b) (1) The Uninsured Employers Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the payment of nonadministrative expenses of the workers'
compensation program for workers injured while employed by uninsured
employers in accordance with Article 2 (commencing with Section 3710)
of Chapter 4 of Part 1 of Division 4, and shall not be used for any
other purpose. All moneys collected shall be retained in the trust
fund until paid as benefits to workers injured while employed by
uninsured employers. Nonadministrative expenses include audits and
reports of services prepared pursuant to subdivision (b) of Section
3716.1. The surcharge amount for this fund shall be stated
separately.
   (2) Notwithstanding any other provision of law, all references to
the Uninsured Employers Fund shall mean the Uninsured Employers
Benefits Trust Fund.
   (3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Uninsured Employers
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Uninsured Employers Benefits
Trust Fund upon enactment of the annual Budget Act.
   (4) Any moneys from penalties collected pursuant to Section 3722
as a result of the insurance coverage program established under
Section 90.3 shall be deposited in the State Treasury to the credit
of the Workers' Compensation Administration Revolving Fund created
under this section, to cover expenses incurred by the director under
the insurance coverage program. The amount of any penalties in excess
of payment of administrative expenses incurred by the director for
the insurance coverage program established under Section 90.3 shall
be deposited in the State Treasury to the credit of the Uninsured
Employers Benefits Trust Fund for nonadministrative expenses, as
prescribed in paragraph (1), and notwithstanding paragraph (1), shall
only be available upon appropriation by the Legislature.
   (c) (1) The Subsequent Injuries Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the nonadministrative expenses of the workers' compensation
program for workers who have suffered serious injury and who are
suffering from previous and serious permanent disabilities or
physical impairments, in accordance with Article 5 (commencing with
Section 4751) of Chapter 2 of Part 2 of Division 4, and Section 4 of
Article XIV of the California Constitution, and shall not be used for
any other purpose. All moneys collected shall be retained in the
trust fund until paid as benefits to workers who have suffered
serious injury and who are suffering from previous and serious
permanent disabilities or physical impairments.  Nonadministrative
expenses include audits and reports of services pursuant to
subdivision (c) of Section 4755. The surcharge amount for this fund
shall be stated separately.
   (2) Notwithstanding any other law, all references to the
Subsequent Injuries Fund shall mean the Subsequent Injuries Benefits
Trust Fund.
   (3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Subsequent Injuries
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Subsequent Injuries Benefits
Trust Fund upon enactment of the annual Budget Act.
   (d) The Occupational Safety and Health Fund is hereby created as a
special account in the State Treasury. Moneys in the account may be
expended by the department, upon appropriation by the Legislature,
for support of the Division of Occupational Safety and Health, the
Occupational Safety and Health Standards Board, and the Occupational
Safety and Health Appeals Board, and the activities these entities
perform as set forth in this division, and Division 5 (commencing
with Section 6300).
   (e) The Labor Enforcement and Compliance Fund is hereby created as
a special account in the State Treasury. Moneys in the fund may be
expended by the department, upon appropriation by the Legislature,
for the support of the activities that the Division of Labor
Standards Enforcement performs pursuant to this division and Division
2 (commencing with Section 200), Division 3 (commencing with Section
2700), and Division 4 (commencing with Section 3200). The fund shall
consist of surcharges imposed pursuant to paragraph (3) of
subdivision (f).
   (f) (1) Separate surcharges shall be levied by the director upon
all employers, as defined in Section 3300, for purposes of deposit in
the Workers' Compensation Administration Revolving Fund, the
Uninsured Employers Benefits Trust Fund, the Subsequent Injuries
Benefits Trust Fund, and the Occupational Safety and Health Fund. The
total amount of the surcharges shall be allocated between
self-insured employers and insured employers in proportion to payroll
respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. The
regulations shall require the surcharges to be paid by self-insurers
to be expressed as a percentage of indemnity paid during the most
recent year for which information is available, and the surcharges to
be paid by insured employers to be expressed as a percentage of
premium.  In no event shall the surcharges paid by insured employers
be considered a premium for computation of a gross premium tax or
agents' commission. In no event shall the total amount of the
surcharges paid by insured and self-insured employers exceed the
amounts reasonably necessary to carry out the purposes of this
section.
   (2) The surcharge levied by the director for the Occupational
Safety and Health Fund, pursuant to paragraph (1), shall not generate
revenues in excess of fifty-two million dollars ($52,000,000) on and
after the 2009 -10 fiscal year, adjusted for each fiscal year as
appropriate to reconcile any over/under assessments from previous
fiscal years pursuant to Sections 15606 and 15609 of Title 8 of the
California Code of Regulations, and may increase by not more than the
state-local government deflator each year thereafter through July 1,
2013, and, as appropriate, to reconcile any over/under assessments
from previous fiscal years. For the 2013-14 fiscal year, the
surcharge level shall return to the level in place on June 30, 2009,
adjusted for inflation based on the state-local government deflator.

   (3) A separate surcharge shall be levied by the director upon all
employers, as defined in Section 3300, for purposes of deposit in the
Labor Enforcement and Compliance Fund. The total amount of the
surcharges shall be allocated between employers in proportion to
payroll respectively paid in the most recent year for which payroll
information is available.  The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. In
no event shall the total amount of the surcharges paid by employers
exceed the amounts reasonably necessary to carry out the purposes of
this section.
   (4) The surcharge levied by the director for the Labor Enforcement
and Compliance Fund shall not exceed thirty-seven million dollars
($37,000,000) in the 2009-10 fiscal year, adjusted as appropriate to
reconcile any over/under assessments from previous fiscal years, and
shall not be adjusted each year thereafter by more than the
state-local government deflator, and, as appropriate, to reconcile
any over/under assessments from previous fiscal years pursuant to
Sections 15606 and 15609 of Title 8 of the California Code of
Regulations.
   (5) The regulations adopted pursuant to paragraph (1) to (4),
inclusive, shall be exempt from the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
   (g) On and after July 1, 2013, subdivision (e) and paragraphs (2)
to (4), inclusive, of subdivision (f) are inoperative, unless a later
enacted statute, that is enacted before July 1, 2013, deletes or
extends that date.



62.6.  (a) The director shall levy and collect assessments from
employers in accordance with subdivision (b), as necessary, to
collect the aggregate amount determined by the Fraud Assessment
Commission pursuant to Section 1872.83 of the Insurance Code.
Revenues derived from the assessments shall be deposited in the
Workers' Compensation Fraud Account in the Insurance Fund and shall
only be expended, upon appropriation by the Legislature, for the
investigation and prosecution of workers' compensation fraud and the
willful failure to secure payment of workers' compensation, as
prescribed by Section 1872.83 of the Insurance Code.
   (b) Assessments shall be levied by the director upon all employers
as defined in Section 3300.  The total amount of the assessment
shall be allocated between self-insured employers and insured
employers in proportion to payroll respectively paid in the most
recent year for which payroll information is available.  The director
shall promulgate reasonable rules and regulations governing the
manner of collection of the assessment.  The rules and regulations
shall require the assessment to be paid by self-insurers to be
expressed as a percentage of indemnity paid during the most recent
year for which information is available, and the assessment to be
paid by insured employers to be expressed as a percentage of premium.
  In no event shall the assessment paid by insured employers be
considered a premium for computation of a gross premium tax or agents'
commission.


62.7.  (a) The Cal-OSHA Targeted Inspection and Consultation Fund is
hereby created as a special account in the State Treasury.  Proceeds
of the fund may be expended by the department, upon appropriation by
the Legislature, for the costs of the Cal-OSHA targeted inspection
program provided by Section 6314.1 and the costs of the Cal-OSHA
targeted consultation program provided by subdivision (a) of Section
6354, and for costs related to assessments levied and collected
pursuant to Section 62.9.
   (b) The fund shall consist of the assessments made pursuant to
Section 62.9 and other moneys transferred to the fund.



62.9.  (a) (1) The director shall levy and collect assessments from
employers in accordance with this section. The total amount of the
assessment collected shall be the amount determined by the director
to be necessary to produce the revenue sufficient to fund the
programs specified by Section 62.7, except that the amount assessed
in any year for those purposes shall not exceed 50 percent of the
amounts appropriated from the General Fund for the support of the
occupational safety and health program for the 1993-94 fiscal year,
adjusted for inflation. The director also shall include in the total
assessment amount the department's costs for administering the
assessment, including the collections process and the cost of
reimbursing the Franchise Tax Board for its cost of collection
activities pursuant to subdivision (c).
   (2) The insured employers and private sector self-insured
employers that, pursuant to subdivision (b), are subject to
assessment shall be assessed, respectively, on the basis of their
annual payroll subject to premium charges or their annual payroll
that would be subject to premium charges if the employer were
insured, as follows:
   (A) An employer with a payroll of less than two hundred fifty
thousand dollars ($250,000) shall be assessed one hundred dollars
($100).
   (B) An employer with a payroll of two hundred fifty thousand
dollars ($250,000) or more, but not more than five hundred thousand
dollars ($500,000), shall be assessed two hundred dollars ($200).
   (C) An employer with a payroll of more than five hundred thousand
dollars ($500,000), but not more than seven hundred fifty thousand
dollars ($750,000), shall be assessed four hundred dollars ($400).
   (D) An employer with a payroll of more than seven hundred fifty
thousand dollars ($750,000), but not more than one million dollars
($1,000,000), shall be assessed six hundred dollars ($600).
   (E) An employer with a payroll of more than one million dollars
($1,000,000), but not more than one million five hundred thousand
dollars ($1,500,000), shall be assessed eight hundred dollars ($800).

   (F) An employer with a payroll of more than one million five
hundred thousand dollars ($1,500,000), but not more than two million
dollars ($2,000,000), shall be assessed one thousand dollars
($1,000).
   (G) An employer with a payroll of more than two million dollars
($2,000,000), but not more than two million five hundred thousand
dollars ($2,500,000), shall be assessed one thousand five hundred
dollars ($1,500).
   (H) An employer with a payroll of more than two million five
hundred thousand dollars ($2,500,000), but not more than three
million five hundred thousand dollars ($3,500,000), shall be assessed
two thousand dollars ($2,000).
   (I) An employer with a payroll of more than three million five
hundred thousand dollars ($3,500,000), but not more than four million
five hundred thousand dollars ($4,500,000), shall be assessed two
thousand five hundred dollars ($2,500).
   (J) An employer with a payroll of more than four million five
hundred thousand dollars ($4,500,000), but not more than five million
five hundred thousand dollars ($5,500,000), shall be assessed three
thousand dollars ($3,000).
   (K) An employer with a payroll of more than five million five
hundred thousand dollars ($5,500,000), but not more than seven
million dollars ($7,000,000), shall be assessed three thousand five
hundred dollars ($3,500).
   (L) An employer with a payroll of more than seven million dollars
($7,000,000), but not more than twenty million dollars ($20,000,000),
shall be assessed six thousand seven hundred dollars ($6,700).
   (M) An employer with a payroll of more than twenty million dollars
($20,000,000) shall be assessed ten thousand dollars ($10,000).
   (b) (1) In the manner as specified by this section, the director
shall identify those insured employers having a workers' compensation
experience modification rating of 1.25 or more, and private sector
self-insured employers having an equivalent experience modification
rating of 1.25 or more as determined pursuant to subdivision (e).
   (2) The assessment required by this section shall be levied
annually, on a calendar year basis, on those insured employers and
private sector self-insured employers, as identified pursuant to
paragraph (1), having the highest workers' compensation experience
modification ratings or equivalent experience modification ratings,
that the director determines to be required numerically to produce
the total amount of the assessment to be collected pursuant to
subdivision (a).
   (c) The director shall collect the assessment from insured
employers as follows:
   (1) Upon the request of the director, the Department of Insurance
shall direct the licensed rating organization designated as the
department's statistical agent to provide to the director, for
purposes of subdivision (b), a list of all insured employers having a
workers' compensation experience rating modification of 1.25 or
more, according to the organization's records at the time the list is
requested, for policies commencing the year preceding the year in
which the assessment is to be collected.
   (2) The director shall determine the annual payroll of each
insured employer subject to assessment from the payroll that was
reported to the licensed rating organization identified in paragraph
(1) for the most recent period for which one full year of payroll
information is available for all insured employers.
   (3) On or before September 1 of each year, the director shall
determine each of the current insured employers subject to
assessment, and the amount of the total assessment for which each
insured employer is liable. The director immediately shall notify
each insured employer, in a format chosen by the insurer, of the
insured's obligation to submit payment of the assessment to the
director within 30 days after the date the billing was mailed, and
warn the insured of the penalties for failure to make timely and full
payment as provided by this subdivision.
   (4) The director shall identify any insured employers that, within
30 days after the mailing of the billing notice, fail to pay, or
object to, their assessments. The director shall mail to each of
these employers a notice of delinquency and a notice of the intention
to assess penalties, advising that, if the assessment is not paid in
full within 15 days after the mailing of the notices, the director
will levy against the employer a penalty equal to 25 percent of the
employer's assessment, and will refer the assessment and penalty to
the Franchise Tax Board or another agency for collection. The notices
required by this paragraph shall be sent by United States
first-class mail.
   (5) If an assessment is not paid by an insured employer within 15
days after the mailing of the notices required by paragraph (4), the
director shall refer the delinquent assessment and the penalty to the
Franchise Tax Board, or another agency, as deemed appropriate by the
director, for collection pursuant to Section 19290.1 of the Revenue
and Taxation Code.
   (d) The director shall collect the assessment directly from
private sector self-insured employers. The failure of any private
sector self-insured employer to pay the assessment as billed
constitutes grounds for the suspension or termination of the employer'
s certificate to self-insure.
   (e) The director shall adopt regulations implementing this section
that include provision for a method of determining experience
modification ratings for private sector self-insured employers that
is generally equivalent to the modification ratings that apply to
insured employers and is weighted by both severity and frequency.
   (f) The director shall determine whether the amount collected
pursuant to any assessment exceeds expenditures, as described in
subdivision (a), for the current year and shall credit the amount of
any excess to any deficiency in the prior year's assessment or, if
there is no deficiency, against the assessment for the subsequent
year.


63.  The Director may authorize the refund of moneys received or
collected by the department in payment of license fees or for other
services in cases where the license can not lawfully be issued or the
service rendered to the applicant.


64.  The Labor Commissioner may enter into reciprocal agreements
with the labor department or corresponding agency of any other state
or with the person, board, officer, or commission authorized to act
for and on behalf of that department or agency, for the collection in
that other state of claims or judgments for wages and other demands
based upon claims previously assigned to the Division of Labor
Standards Enforcement.



64.5.  When requested by the State Board of Equalization, the
department may permit any duly authorized representative of that
agency to transmit to the State Board of Equalization information
available in the department's records that indicates a retail
establishment is operating without a seller's permit required by the
State Board of Equalization, to assist the State Board of
Equalization in determining compliance with the Sales and Use Tax Law
(Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code).

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70.  There is in the Department of Industrial Relations the
Industrial Welfare Commission which consists of five members.  The
members of the commission shall be appointed by the Governor, with
the consent of the Senate.


70.1.  The Industrial Welfare Commission shall be composed of two
representatives of organized labor who are members of recognized
labor organizations, two representatives of employers, and one
representative of the general public.  The membership shall include
members of both sexes.



71.  The term of office of the members of the Industrial Welfare
Commission shall be four years and they shall hold office until the
appointment and qualification of their successors.  The terms of the
members of the commission in office at the time this code takes
effect shall expire on January 15th of that year which for the
particular member has heretofore been determined.  Vacancies shall be
filled by appointment for the unexpired terms.



72.  The members of the commission shall receive one hundred dollars
($100) for each day's actual attendance at meetings and other
official business of the commission and shall receive their actual
and necessary expenses incurred in the performance of their duties.




73.  The Industrial Welfare Commission may employ necessary
assistants, officers, experts, and such other employees as it deems
necessary.  All such personnel of the commission shall be under the
supervision of the chairman or an executive officer to whom the
chairman delegates such responsibility.  All such personnel shall be
appointed pursuant to the State Civil Service Act (Part 1 (commencing
with Section 18000) of Division 5 of Title 2 of the Government
Code), except for the one exempt deputy or employee allowed by
subdivision (e) of Section 4 of Article VII of the California
Constitution.



74.  The Chief of the Division of Labor Standards Enforcement, for
the purpose of enforcing Industrial Welfare Commission orders and
provisions of this code, may issue subpoenas to compel the attendance
of witnesses and production of books, papers, and records.
Obedience to subpoenas issued by the chief of the division shall be
enforced by the courts.
   The Chief and enforcement deputies of the Division of Labor
Standards Enforcement may administer oaths and examine witnesses
under oath for the purpose of enforcing Industrial Welfare Commission
orders and provisions of this code.

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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.

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79.  There is in the Department of Industrial Relations the Division
of Labor Standards Enforcement.  The Division of Labor Standards
Enforcement shall be under the direction of an executive officer
known as the Chief, Division of Labor Standards Enforcement, who
shall be appointed by the Governor, subject to confirmation of the
Senate, and shall hold office at the pleasure of the Director of
Industrial Relations.  The annual salary of the chief shall be
determined by the Department of Finance.



80.  The headquarters of the Division of Labor Standards
Enforcement, hereafter in this chapter referred to as the division,
shall be located in San Francisco.



81.  The employees of the division shall devote their full time to
the work of the division and shall receive their actual necessary
traveling expenses.  The division shall maintain offices in San
Francisco, Los Angeles, Sacramento, San Diego, Oakland, Fresno, San
Jose, and in such other places as the Labor Commissioner may deem
necessary.



82.  (a) The Division of Labor Standards Enforcement succeeds to,
and is vested with, all of the powers, duties, purposes,
responsibilities, and jurisdiction of the Division of Labor Law
Enforcement, which is hereby abolished.
   (b) All powers, duties, purposes, and responsibilities of the
Labor Commissioner, who is Chief of the Division of Labor Law
Enforcement, are hereby transferred to the Labor Commissioner who is
the Chief of the Division of Labor Standards Enforcement.
   (c) Any regulation or other action made, prescribed, issued,
granted, or performed by the abolished Division of Labor Law
Enforcement in the administration, performance, or implementation of
a function transferred pursuant to subdivision (a) of this section
shall remain in effect and shall be deemed to be a regulation or
action of the Division of Labor Standards Enforcement unless and
until repealed, modified, or rescinded by such division.
   (d) Whenever any reference is made in any law to the abolished
Division of Labor Law Enforcement, it shall be deemed to be a
reference to, and to mean, the Division of Labor Standards
Enforcement.



83.  (a) The Division of Labor Standards Enforcement succeeds to,
and is vested with, all of the powers, duties, purposes,
responsibilities, and jurisdiction of the Division of Industrial
Welfare, which is hereby abolished.
   (b) All powers, duties, purposes, and responsibilities of the
Chief, Division of Industrial Welfare are hereby transferred to the
Chief of the Division of Labor Standards Enforcement.
   (c) Any regulation or other action made, prescribed, issued,
granted, or performed by the abolished Division of Industrial Welfare
in the administration, performance, or implementation of a function
transferred pursuant to subdivision (a) of this section shall remain
in effect and shall be deemed to be a regulation or action of the
Division of Labor Standards Enforcement unless and until repealed,
modified, or rescinded by such division.
   (d) Whenever any reference is made in any law to the abolished
Division of Industrial Welfare it shall be deemed to be a reference
to, and to mean, the Division of Labor Standards Enforcement.




87.  All persons, other than temporary employees, serving in the
state civil service and engaged in the performance of a function
transferred pursuant to this chapter, or engaged in the
administration of a law, the administration of which is transferred
pursuant to this chapter, shall, in accordance with Section 19370 of
the Government Code, remain in the state civil service and are hereby
transferred to the Division of Labor Standards Enforcement.  The
status, positions, and rights of such persons shall not be affected
by their transfer and shall continue to be retained by them pursuant
to the State Civil Service Act, except as to positions the duties of
which are vested in a position that is exempt from civil service.




88.  The personnel records of all employees transferred pursuant to
Section 87 shall remain in the Department of Industrial Relations.



89.  The Division of Labor Standards Enforcement shall have
possession and control of all records, books, papers, offices,
equipment, supplies, moneys, funds, appropriations, land, and other
property, real or personal, held for the benefit or use of the
Division of Labor Law Enforcement and the Division of Industrial
Welfare with respect to the functions transferred pursuant to this
chapter.


89.5.  The Division of Labor Standards Enforcement may expend the
money in any appropriation or in any special fund in the State
Treasury made available by law for the administration of the statutes
the administration of which is committed to it pursuant to this
chapter, or for the use, support, or maintenance of any board,
bureau, commission, department, office, or officer whose duties,
powers, and functions have been transferred to, and conferred upon,
the Division of Labor Standards Enforcement pursuant to this chapter.
  Such expenditures by the Division of Labor Standards Enforcement
shall be made in accordance with law in carrying out the purposes for
which the appropriations were made or the special funds created.




90.  The Labor Commissioner, his deputies and agents, shall have
free access to all places of labor.  Any person, or agent or officer
thereof, who refuses admission to the Labor Commissioner or his
deputy or agent or who, upon request, willfully neglects or refuses
to furnish them any statistics or information, pertaining to their
lawful duties, which are in his possession or under his control, is
guilty of a misdemeanor, punishable by a fine of not more than one
thousand dollars ($1,000).



90.3.  (a) It is the policy of this state to vigorously enforce the
laws requiring employers to secure the payment of compensation as
required by Section 3700 and to protect employers who comply with the
law from those who attempt to gain a competitive advantage at the
expense of their workers by failing to secure the payment of
compensation.
   (b) In order to ensure that the laws requiring employers to secure
the payment of compensation are adequately enforced, the Labor
Commissioner shall establish and maintain a program that
systematically identifies unlawfully uninsured employers. The Labor
Commissioner, in consultation with the Administrative Director of the
Division of Workers' Compensation and the director, may prioritize
targets for the program in consideration of available resources. The
employers shall be identified from data from the Uninsured Employers'
Fund, the Employment Development Department, the rating
organizations 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, and any other sources deemed likely
to lead to the identification of unlawfully uninsured employers. 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 Labor Commissioner and on reasonable
request provide information and data in their possession reasonably
necessary to carry out the program.
   (c) As part of the program, the Labor Commissioner shall establish
procedures for ensuring that employers with payroll but with no
record of workers' compensation coverage are contacted and, if no
valid reason for the lack of record of coverage is shown, inspected
on a priority basis.
   (d) The Labor Commissioner shall annually, not later than March 1,
prepare a report concerning the effectiveness of the program,
publish it on the Labor Commissioner's Web site, as well as notify
the Legislature, the Governor, the Insurance Commissioner, and the
Administrative Director of the Division of Workers' Compensation of
the report's availability. The report shall include, but not be
limited to, all of the following:
   (1) The number of employers identified from records of the
Employment Development Department who were screened for matching
records of insurance coverage or self-insurance.
   (2) The number of employers identified from records of the
Employment Development Department that were matched to records of
insurance coverage or self-insurance.
   (3) The number of employers identified from records of the
Employment Development Department that were notified that there was
no record of their insurance coverage.
   (4) The number of employers responding to the notices, and the
nature of the responses, including the number of employers who failed
to provide satisfactory proof of workers' compensation coverage and
including information about the reasons that employers who provided
satisfactory proof of coverage were not appropriately recognized in
the comparison performed under subdivision (b). The report may
include recommendations to improve the accuracy and efficiency of the
program in screening for unlawfully uninsured employers.
   (5) The number of employers identified as unlawfully uninsured
from records of the Uninsured Employers' Benefits Trust Fund or from
records of the Division of Workers' Compensation, and the number of
those employers that are also identifiable from the records of the
Employment Development Department. These statistics shall be reported
in a manner to permit analysis and estimation of the percentage of
unlawfully uninsured employers that do not report wages to the
Employment Development Department.
   (6) The number of employers inspected.
   (7) The number and amount of penalties assessed pursuant to
Section 3722 as a result of the program.
   (8) The number and amount of penalties collected pursuant to
Section 3722 as a result of the program.
   (e) The allocation of funds from the Workers' Compensation
Administration Revolving Fund pursuant to subdivision (a) of Section
62.5 shall not increase the total amount of surcharges pursuant to
subdivision (e) of Section 62.5. Startup costs for this program shall
be allocated from the fiscal year 2007-08 surcharges collected. The
total amount allocated for this program under subdivision (a) of
Section 62.5 in subsequent years shall not exceed the amount of
penalties collected pursuant to Section 3722 as a result of the
program.



90.5.  (a) It is the policy of this state to vigorously enforce
minimum labor standards in order to ensure employees are not required
or permitted to work under substandard unlawful conditions or for
employers that have not secured the payment of compensation, and to
protect employers who comply with the law from those who attempt to
gain a competitive advantage at the expense of their workers by
failing to comply with minimum labor standards.
   (b) In order to ensure that minimum labor standards are adequately
enforced, the Labor Commissioner shall establish and maintain a
field enforcement unit, which shall be administratively and
physically separate from offices of the division that accept and
determine individual employee complaints.  The unit shall have
offices in Los Angeles, San Francisco, San Jose, San Diego,
Sacramento, and any other locations that the Labor Commissioner deems
appropriate.  The unit shall have primary responsibility for
administering and enforcing those statutes and regulations most
effectively enforced through field investigations, including Sections
226, 1021, 1021.5, 1193.5, 1193.6, 1194.5, 1197, 1198, 1771, 1776,
1777.5, 2651, 2673, 2675, and 3700, in accordance with the plan
adopted by the Labor Commissioner pursuant to subdivision (c).
Nothing in this section shall be construed to limit the authority of
this unit in enforcing any statute or regulation in the course of its
investigations.
   (c) The Labor Commissioner shall adopt an enforcement plan for the
field enforcement unit.  The plan shall identify priorities for
investigations to be undertaken by the unit that ensure the available
resources will be concentrated in industries, occupations, and areas
in which employees are relatively low paid and unskilled, and those
in which there has been a history of violations of the statutes cited
in subdivision (b), and those with high rates of noncompliance with
Section 3700.
   (d) The Labor Commissioner shall annually report to the
Legislature, not later than March 1, concerning the effectiveness of
the field enforcement unit.  The report shall include, but not be
limited to, all of the following:
   (1) The enforcement plan adopted by the Labor Commissioner
pursuant to subdivision (c), and the rationale for the priorities
identified in the plan.
   (2) The number of establishments investigated by the unit, and the
number of types of violations found.
   (3) The amount of wages found to be unlawfully withheld from
workers, and the amount of unpaid wages recovered for workers.
   (4) The amount of penalties and unpaid wages transferred to the
General Fund as a result of the efforts of the unit.



90.7.  When the division determines that an employer has violated
Section 226.2, 1021, 1021.5, 1197, or 1771, or otherwise determines
that an employer may have failed to report all the payroll of the
employer's employees as required by law, the division shall advise
the Insurance Commissioner and request that an audit be ordered
pursuant to Section 11736.5 of the Insurance Code.



91.  Any person who willfully impedes or prevents the Labor
Commissioner or his deputies or agents in the performance of duty, is
guilty of a misdemeanor, punishable by a fine of not less than one
hundred dollars ($100) nor more than one thousand dollars ($1,000),
or imprisonment for not less than seven nor more than 30 days in the
county jail, or both.



92.  The Labor Commissioner, his deputies and agents, may issue
subpenas to compel the attendance of witnesses and parties and the
production of books, papers and records; administer oaths; examine
witnesses under oath; take the verification, acknowledgment, or proof
of written instruments; and take depositions and affidavits for the
purpose of carrying out the provisions of this code and all laws
which the division is to enforce.



93.  Obedience to subpoenas issued by the Labor Commissioner, or his
deputies or agents shall be enforced by the courts.  It is a
misdemeanor to ignore willfully such a subpoena if it calls for an
appearance at a distance from the place of service of 100 miles, or
less.



94.  The office of the division shall be open for business from 9 o'
clock a.m. until 5 o'clock p.m. every day except nonjudicial days,
and the officers thereof shall give to all persons requesting it all
needed information which they may possess.



95.  (a) The division may enforce the provisions of this code and
all labor laws of the state the enforcement of which is not
specifically vested in any other officer, board or commission.
Except as provided in subdivision (d), in the enforcement of such
provisions and laws, the director, deputy director, and such officers
and employees as the director may designate, shall only have the
authority, as public officers, to arrest without a warrant, any
person who, in his presence, has violated or as to whom there is
probable cause to believe has violated any of such provisions and
laws.
   In any case in which an arrest authorized by this subdivision is
made for an offense declared to be a misdemeanor, and the person
arrested does not demand to be taken before a magistrate, the
arresting officer may, instead of taking such person before a
magistrate, follow the procedure prescribed by Chapter 5C (commencing
with Section 853.6) of Title 3 of Part 2 of the Penal Code.  The
provisions of such chapter shall thereafter apply with reference to
any proceeding based upon the issuance of a citation pursuant to this
authority.
   (b) There shall be no civil liability on the part of and no cause
of action shall arise against any person, acting pursuant to this
section and within the scope of his authority, for false arrest or
false imprisonment arising out of any arrest which is lawful or which
the arresting officer, at the time of such arrest, had reasonable
cause to believe was lawful.  No such officer shall be deemed an
aggressor or lose his right to self-defense by the use of reasonable
force to effect the arrest or to prevent escape or to overcome
resistance.
   (c) The director, deputy director, and such officers and employees
as the director may designate, may serve all processes and notices
throughout the state.
   (d) With respect to the enforcement of the provisions of this code
and other labor laws as provided in subdivision (a), all officers
and employees designated by the Labor Commissioner as investigators,
shall have the authority of peace officers to make arrests, and may
serve processes and notices as provided in subdivision (c).




96.  The Labor Commissioner and his or her deputies and
representatives authorized by him or her in writing shall, upon the
filing of a claim therefor by an employee, or an employee
representative authorized in writing by an employee, with the Labor
Commissioner, take assignments of:
   (a) Wage claims and incidental expense accounts and advances.
   (b) Mechanics' and other liens of employees.
   (c) Claims based on "stop orders" for wages and on bonds for
labor.
   (d) Claims for damages for misrepresentations of conditions of
employment.
   (e) Claims for unreturned bond money of employees.
   (f) Claims for penalties for nonpayment of wages.
   (g) Claims for the return of workers' tools in the illegal
possession of another person.
   (h) Claims for vacation pay, severance pay, or other compensation
supplemental to a wage agreement.
   (i) Awards for workers' compensation benefits in which the Workers'
Compensation Appeals Board has found that the employer has failed to
secure payment of compensation and where the award remains unpaid
more than 10 days after having become final.
   (j) Claims for loss of wages as the result of discharge from
employment for the garnishment of wages.
   (k) Claims for loss of wages as the result of demotion,
suspension, or discharge from employment for lawful conduct occurring
during nonworking hours away from the employer's premises.



96.3.  In cases where employees are covered by a collective
bargaining agreement, the collective bargaining representative by
virtue of such agreement may be the assignee of all such covered
employees for purposes of filing claims for wages with the Labor
Commissioner, subject to the option of the employee to reject such
representation and to represent himself or herself.



96.5.  The Labor Commissioner shall conduct such hearings as may be
necessary for the purpose of Section 7071.11 of the Business and
Professions Code.  In any action to recover upon a cash deposit after
a determination made under Section 7071.11, the Labor Commissioner
shall certify in writing to the appropriate court that he has heard
and determined the validity of claims and demands and that the sum
specified therein is the amount found due and payable.  The
certificate of the commissioner shall be considered by the court but
shall not, by itself, be sufficient evidence to support a judgment.



96.6.  The Industrial Relations Unpaid Wage Fund is hereby created
as a special fund in the State Treasury, which is continuously
appropriated for the purposes of subdivision (c) of Section 96.7.



96.7.  The Labor Commissioner, after investigation and upon
determination that wages or monetary benefits are due and unpaid to
any worker in the State of California, may collect such wages or
benefits on behalf of the worker without assignment of such wages or
benefits to the commissioner.
   (a) The Labor Commissioner shall act as trustee of all such
collected unpaid wages or benefits, and shall deposit such collected
moneys in the Industrial Relations Unpaid Wage Fund.
   (b) The Labor Commissioner shall make a diligent search to locate
any worker for whom the Labor Commissioner has collected unpaid wages
or benefits.
   (c) All wages or benefits collected under this section shall be
remitted to the worker, his lawful representative, or to any trust or
custodial fund established under a plan to provide health and
welfare, pension, vacation, retirement, or similar benefits from the
Industrial Relations Unpaid Wage Fund.
   (d) Any unpaid wages or benefits collected by the Labor
Commissioner pursuant to this section shall be retained in the
Industrial Relations Unpaid Wage Fund until remitted pursuant to
subdivision (c), or until deposited in the General Fund.
   (e) The Controller shall, at the end of each fiscal year, transfer
to the General Fund the unencumbered balance, less six months of
expenditures as determined by the Director of Finance, in the
Industrial Relations Unpaid Wage Fund.
   (f) All wages or benefits collected under this section which
cannot be remitted from the Industrial Relations Unpaid Wage Fund
pursuant to subdivision (c) because money has been transmitted to the
General Fund shall be paid out of the General Fund from funds
appropriated for that purpose.



97.  The Labor Commissioner, his deputies and representatives shall
not be bound by any rule requiring the consent of the spouse of a
married claimant, the filing of a lien for record before it is
assigned, or prohibiting the assignment of a claim for penalty before
the claim has been incurred or any other technical rule with
reference to the validity of assignments.



98.  (a) The Labor Commissioner shall have the authority to
investigate employee complaints. The Labor Commissioner may provide
for a hearing in any action to recover wages, penalties, and other
demands for compensation properly before the division or the Labor
Commissioner, including orders of the Industrial Welfare Commission,
and shall determine all matters arising under his or her
jurisdiction. It shall be within the jurisdiction of the Labor
Commissioner to accept and determine claims from holders of payroll
checks or payroll drafts returned unpaid because of insufficient
funds, if, after a diligent search, the holder is unable to return
the dishonored check or draft to the payee and recover the sums paid
out. Within 30 days of the filing of the complaint, the Labor
Commissioner shall notify the parties as to whether a hearing will be
held, whether action will be taken in accordance with Section 98.3,
or whether no further action will be taken on the complaint. If the
determination is made by the Labor Commissioner to hold a hearing,
the hearing shall be held within 90 days of the date of that
determination. However, the Labor Commissioner may postpone or grant
additional time before setting a hearing if the Labor Commissioner
finds that it would lead to an equitable and just resolution of the
dispute.
   It is the intent of the Legislature that hearings held pursuant to
this section be conducted in an informal setting preserving the
right of the parties.
   (b) When a hearing is set, a copy of the complaint, which shall
include the amount of compensation requested, together with a notice
of time and place of the hearing, shall be served on all parties,
personally or by certified mail, or in the manner specified in
Section 415.20 of the Code of Civil Procedure.
   (c) Within 10 days after service of the notice and the complaint,
a defendant may file an answer with the Labor Commissioner in any
form as the Labor Commissioner may prescribe, setting forth the
particulars in which the complaint is inaccurate or incomplete and
the facts upon which the defendant intends to rely.
   (d) No pleading other than the complaint and answer of the
defendant or defendants shall be required. Both shall be in writing
and shall conform to the form and the rules of practice and procedure
adopted by the Labor Commissioner.
   (e) Evidence on matters not pleaded in the answer shall be allowed
only on terms and conditions the Labor Commissioner shall impose. In
all these cases, the claimant shall be entitled to a continuance for
purposes of review of the new evidence.
   (f) If the defendant fails to appear or answer within the time
allowed under this chapter, no default shall be taken against him or
her, but the Labor Commissioner shall hear the evidence offered and
shall issue an order, decision, or award in accordance with the
evidence. A defendant failing to appear or answer, or subsequently
contending to be aggrieved in any manner by want of notice of the
pendency of the proceedings, may apply to the Labor Commissioner for
relief in accordance with Section 473 of the Code of Civil Procedure.
The Labor Commissioner may afford this relief. No right to relief,
including the claim that the findings or award of the Labor
Commissioner or judgment entered thereon are void upon their face,
shall accrue to the defendant in any court unless prior application
is made to the Labor Commissioner in accordance with this chapter.
   (g) All hearings conducted pursuant to this chapter are governed
by the division and by the rules of practice and procedure adopted by
the Labor Commissioner.
   (h) (1) Whenever a claim is filed under this chapter against a
person operating or doing business under a fictitious business name,
as defined in Section 17900 of the Business and Professions Code,
which relates to the person's business, the division shall inquire at
the time of the hearing whether the name of the person is the legal
name under which the business or person has been licensed,
registered, incorporated, or otherwise authorized to do business.
   (2) The division may amend an order, decision, or award to conform
to the legal name of the business or the person who is the defendant
to a wage claim, if it can be shown that proper service was made on
the defendant or his or her agent, unless a judgment had been entered
on the order, decision, or award pursuant to subdivision (d) of
Section 98.2. The Labor Commissioner may apply to the clerk of the
superior court to amend a judgment that has been issued pursuant to a
final order, decision, or award to conform to the legal name of the
defendant, if it can be shown that proper service was made on the
defendant or his or her agent.



98.1.  (a) Within 15 days after the hearing is concluded, the Labor
Commissioner shall file in the office of the division a copy of the
order, decision, or award. The order, decision, or award shall
include a summary of the hearing and the reasons for the decision.
Upon filing of the order, decision, or award, the Labor Commissioner
shall serve a copy of the decision personally, by first-class mail,
or in the manner specified in Section 415.20 of the Code of Civil
Procedure on the parties. The notice shall also advise the parties of
their right to appeal the decision or award and further advise the
parties that failure to do so within the period prescribed by this
chapter shall result in the decision or award becoming final and
enforceable as a judgment by the superior court.
   (b) For the purpose of this section, an award shall include any
sums found owing, damages proved, and any penalties awarded pursuant
to this code.
   (c) All awards granted pursuant to a hearing under this chapter
shall accrue interest on all due and unpaid wages at the same rate as
prescribed by subdivision (b) of Section 3289 of the Civil Code. The
interest shall accrue until the wages are paid from the date that
the wages were due and payable as provided in Part 1 (commencing with
Section 200) of Division 2.



98.2.  (a) Within 10 days after service of notice of an order,
decision, or award the parties may seek review by filing an appeal to
the superior court, where the appeal shall be heard de novo. The
court shall charge the first paper filing fee under Section 70611 of
the Government Code to the party seeking review. The fee shall be
distributed as provided in Section 68085.3 of the Government Code. A
copy of the appeal request shall be served upon the Labor
Commissioner by the appellant. For purposes of computing the 10-day
period after service, Section 1013 of the Code of Civil Procedure is
applicable.
   (b) Whenever an employer files an appeal pursuant to this section,
the employer shall post an undertaking with the reviewing court in
the amount of the order, decision, or award. The undertaking shall
consist of an appeal bond issued by a licensed surety or a cash
deposit with the court in the amount of the order, decision, or
award. The employer shall provide written notification to the other
parties and the Labor Commissioner of the posting of the undertaking.
The undertaking shall be on the condition that, if any judgment is
entered in favor of the employee, the employer shall pay the amount
owed pursuant to the judgment, and if the appeal is withdrawn or
dismissed without entry of judgment, the employer shall pay the
amount owed pursuant to the order, decision, or award of the Labor
Commissioner unless the parties have executed a settlement agreement
for payment of some other amount, in which case the employer shall
pay the amount that the employer is obligated to pay under the terms
of the settlement agreement. If the employer fails to pay the amount
owed within 10 days of entry of the judgment, dismissal, or
withdrawal of the appeal, or the execution of a settlement agreement,
a portion of the undertaking equal to the amount owed, or the entire
undertaking if the amount owed exceeds the undertaking, is forfeited
to the employee.
   (c) If the party seeking review by filing an appeal to the
superior court is unsuccessful in the appeal, the court shall
determine the costs and reasonable attorney's fees incurred by the
other parties to the appeal, and assess that amount as a cost upon
the party filing the appeal.  An employee is successful if the court
awards an amount greater than zero.
   (d) If no notice of appeal of the order, decision, or award is
filed within the period set forth in subdivision (a), the order,
decision, or award shall, in the absence of fraud, be deemed the
final order.
   (e) The Labor Commissioner shall file, within 10 days of the order
becoming final pursuant to subdivision (d), a certified copy of the
final order with the clerk of the superior court of the appropriate
county unless a settlement has been reached by the parties and
approved by the Labor Commissioner. Judgment shall be entered
immediately by the court clerk in conformity therewith. The judgment
so entered has the same force and effect as, and is subject to all of
the provisions of law relating to, a judgment in a civil action, and
may be enforced in the same manner as any other judgment of the
court in which it is entered. Enforcement of the judgment shall
receive court priority.
   (f) (1) In order to ensure that judgments are satisfied, the Labor
Commissioner may serve upon the judgment debtor, personally or by
first-class mail at the last known address of the judgment debtor
listed with the division, a form similar to, and requiring the
reporting of the same information as, the form approved or adopted by
the Judicial Council for purposes of subdivision (a) of Section
116.830 of the Code of Civil Procedure to assist in identifying the
nature and location of any assets of the judgment debtor.
   (2) The judgment debtor shall complete the form and cause it to be
delivered to the division at the address listed on the form within
35 days after the form has been served on the judgment debtor, unless
the judgment has been satisfied. In case of willful failure by the
judgment debtor to comply with this subdivision, the division or the
judgment creditor may request the court to apply the sanctions
provided in Section 708.170 of the Code of Civil Procedure.
   (g) Notwithstanding subdivision (e), the Labor Commissioner may
stay execution of any judgment entered upon an order, decision, or
award that has become final upon good cause appearing therefor and
may impose the terms and conditions of the stay of execution. A
certified copy of the stay of execution shall be filed with the clerk
entering the judgment.
   (h) When a judgment is satisfied in fact, other than by execution,
the Labor Commissioner may, upon the motion of either party or on
its own motion, order entry of satisfaction of judgment. The clerk of
the court shall enter a satisfaction of judgment upon the filing of
a certified copy of the order.
   (i) The Labor Commissioner shall make every reasonable effort to
ensure that judgments are satisfied, including taking all appropriate
legal action and requiring the employer to deposit a bond as
provided in Section 240.
   (j) The judgment creditor, or the Labor Commissioner as assignee
of the judgment creditor, is entitled to court costs and reasonable
attorney's fees for enforcing the judgment that is rendered pursuant
to this section.


98.3.  (a) The Labor Commissioner may prosecute all actions for the
collection of wages, penalties, and demands of persons who in the
judgment of the Labor Commissioner are financially unable to employ
counsel and the Labor Commissioner believes have claims which are
valid and enforceable.
   The Labor Commissioner may also prosecute actions for the return
of worker's tools which are in the illegal possession of another
person.
   (b) The Labor Commissioner may prosecute action for the collection
of wages and other moneys payable to employees or to the state
arising out of an employment relationship or order of the Industrial
Welfare Commission.
   (c) The Labor Commissioner may also prosecute actions for wages or
other monetary benefits that are due the Industrial Relations Unpaid
Wage Fund.



98.4.  The Labor Commissioner may, upon the request of a claimant
financially unable to afford counsel, represent such claimant in the
de novo proceedings provided for in Section 98.2.  In the event that
such claimant is attempting to uphold the amount awarded by the Labor
Commissioner and is not objecting to any part of the Labor
Commissioner's final order, the Labor Commissioner shall represent
the claimant.



98.5.  The Labor Commissioner shall have the right to intervene in
any court proceedings conducted pursuant to Section 98.2 where
questions of the interpretation of statutes or administrative
regulations are present.


98.6.  (a) No person shall discharge an employee or in any manner
discriminate against any employee or applicant for employment because
the employee or applicant engaged in any conduct delineated in this
chapter, including the conduct described in subdivision (k) of
Section 96, and Chapter 5 (commencing with Section 1101) of Part 3 of
Division 2, or because the employee or applicant for employment has
filed a bona fide complaint or claim or instituted or caused to be
instituted any proceeding under or relating to his or her rights,
which are under the jurisdiction of the Labor Commissioner, or
because the employee has initiated any action or notice pursuant to
Section 2699, or has testified or is about to testify in any such
proceeding or because of the exercise by the employee or applicant
for employment on behalf of himself, herself, or others of any rights
afforded him or her.
   (b) Any employee who is discharged, threatened with discharge,
demoted, suspended, or in any other manner discriminated against in
the terms and conditions of his or her employment because the
employee engaged in any conduct delineated in this chapter, including
the conduct described in subdivision (k) of Section 96, and Chapter
5 (commencing with Section 1101) of Part 3 of Division 2, or because
the employee has made a bona fide complaint or claim to the division
pursuant to this part, or because the employee has initiated any
action or notice pursuant to Section 2699 shall be entitled to
reinstatement and reimbursement for lost wages and work benefits
caused by those acts of the employer. Any employer who willfully
refuses to hire, promote, or otherwise restore an employee or former
employee who has been determined to be eligible for rehiring or
promotion by a grievance procedure, arbitration, or hearing
authorized by law, is guilty of a misdemeanor.
   (c) (1) Any applicant for employment who is refused employment,
who is not selected for a training program leading to employment, or
who in any other manner is discriminated against in the terms and
conditions of any offer of employment because the applicant engaged
in any conduct delineated in this chapter, including the conduct
described in subdivision (k) of Section 96, and Chapter 5 (commencing
with Section 1101) of Part 3 of Division 2, or because the applicant
has made a bona fide complaint or claim to the division pursuant to
this part, or because the employee has initiated any action or notice
pursuant to Section 2699 shall be entitled to employment and
reimbursement for lost wages and work benefits caused by the acts of
the prospective employer.
   (2) This subdivision shall not be construed to invalidate any
collective bargaining agreement that requires an applicant for a
position that is subject to the collective bargaining agreement to
sign a contract that protects either or both of the following as
specified in subparagraphs (A) and (B), nor shall this subdivision be
construed to invalidate any employer requirement of an applicant for
a position that is not subject to a collective bargaining agreement
to sign an employment contract that protects either or both of the
following:
   (A) An employer against any conduct that is actually in direct
conflict with the essential enterprise-related interests of the
employer and where breach of that contract would actually constitute
a material and substantial disruption of the employer's operation.
   (B) A firefighter against any disease that is presumed to arise in
the course and scope of employment, by limiting his or her
consumption of tobacco products on and off the job.
   (d) The provisions of this section creating new actions or
remedies that are effective on January 1, 2002, to employees or
applicants for employment do not apply to any state or local law
enforcement agency, any religious association or corporation
specified in subdivision (d) of Section 12926 of the Government Code,
except as provided in Section 12926.2 of the Government Code, or any
person described in Section 1070 of the Evidence Code.




98.7.  (a) Any person who believes that he or she has been
discharged or otherwise discriminated against in violation of any law
under the jurisdiction of the Labor Commissioner may file a
complaint with the division within six months after the occurrence of
the violation.  The six-month period may be extended for good cause.
  The complaint shall be investigated by a discrimination complaint
investigator in accordance with this section.  The Labor Commissioner
shall establish procedures for the investigation of discrimination
complaints.  A summary of the procedures shall be provided to each
complainant and respondent at the time of initial contact.  The Labor
Commissioner shall inform complainants charging a violation of
Section 6310 or 6311, at the time of initial contact, of his or her
right to file a separate, concurrent complaint with the United States
Department of Labor within 30 days after the occurrence of the
violation.
   (b) Each complaint of unlawful discharge or discrimination shall
be assigned to a discrimination complaint investigator who shall
prepare and submit a report to the Labor Commissioner based on an
investigation of the complaint.  The Labor Commissioner may designate
the chief deputy or assistant Labor Commissioner or the chief
counsel to receive and review the reports.  The investigation shall
include, where appropriate, interviews with the complainant,
respondent, and any witnesses who may have information concerning the
alleged violation, and a review of any documents that may be
relevant to the disposition of the complaint.  The identity of a
witness shall remain confidential unless the identification of the
witness becomes necessary to proceed with the investigation or to
prosecute an action to enforce a determination.  The investigation
report submitted to the Labor Commissioner or designee shall include
the statements and documents obtained in the investigation, and the
findings of the investigator concerning whether a violation occurred.
  The Labor Commissioner may hold an investigative hearing whenever
the Labor Commissioner determines, after review of the investigation
report, that a hearing is necessary to fully establish the facts.  In
the hearing the investigation report shall be made a part of the
record and the complainant and respondent shall have the opportunity
to present further evidence.  The Labor Commissioner shall issue,
serve, and enforce any necessary subpoenas.
   (c) If the Labor Commissioner determines a violation has occurred,
he or she shall notify the complainant and respondent and direct the
respondent to cease and desist from the violation and take any
action deemed necessary to remedy the violation, including, where
appropriate, rehiring or reinstatement, reimbursement of lost wages
and interest thereon, payment of reasonable attorney's fees
associated with any hearing held by the Labor Commissioner in
investigating the complaint, and the posting of notices to employees.
  If the respondent does not comply with the order within 10 working
days following notification of the Labor Commissioner's
determination, the Labor Commissioner shall bring an action promptly
in an appropriate court against the respondent.  If the Labor
Commissioner fails to bring an action in court promptly, the
complainant may bring an action against the Labor Commissioner in any
appropriate court for a writ of mandate to compel the Labor
Commissioner to bring an action in court against the respondent.  If
the complainant prevails in his or her action for a writ, the court
shall award the complainant court costs and reasonable attorney's
fees, notwithstanding any other law.  Regardless of any delay in
bringing an action in court, the Labor Commissioner shall not be
divested of jurisdiction.  In any action, the court may permit the
claimant to intervene as a party plaintiff to the action and shall
have jurisdiction, for cause shown, to restrain the violation and to
order all appropriate relief.  Appropriate relief includes, but is
not limited to, rehiring or reinstatement of the complainant,
reimbursement of lost wages and interest thereon, and any other
compensation or equitable relief as is appropriate under the
circumstances of the case.  The Labor Commissioner shall petition the
court for appropriate temporary relief or restraining order unless
he or she determines good cause exists for not doing so.
   (d) (1) If the Labor Commissioner determines no violation has
occurred, he or she shall notify the complainant and respondent and
shall dismiss the complaint.  The Labor Commissioner may direct the
complainant to pay reasonable attorney's fees associated with any
hearing held by the Labor Commissioner if the Labor Commissioner
finds the complaint was frivolous, unreasonable, groundless, and was
brought in bad faith.  The complainant may, after notification of the
Labor Commissioner's determination to dismiss a complaint, bring an
action in an appropriate court, which shall have jurisdiction to
determine whether a violation occurred, and if so, to restrain the
violation and order all appropriate relief to remedy the violation.
Appropriate relief includes, but is not limited to, rehiring or
reinstatement of the complainant, reimbursement of lost wages and
interest thereon, and other compensation or equitable relief as is
appropriate under the circumstances of the case.  When dismissing a
complaint, the Labor Commissioner shall advise the complainant of his
or her right to bring an action in an appropriate court if he or she
disagrees with the determination of the Labor Commissioner, and in
the case of an alleged violation of Section 6310 or 6311, to file a
complaint against the state program with the United States Department
of Labor.
   (2) The filing of a timely complaint against the state program
with the United States Department of Labor shall stay the Labor
Commissioner's dismissal of the division complaint until the United
States Secretary of Labor makes a determination regarding the alleged
violation.  Within 15 days of receipt of that determination, the
Labor Commissioner shall notify the parties whether he or she will
reopen the complaint filed with the division or whether he or she
will reaffirm the dismissal.
   (e) The Labor Commissioner shall notify the complainant and
respondent of his or her determination under subdivision (c) or
paragraph (1) of subdivision (d), not later than 60 days after the
filing of the complaint.  Determinations by the Labor Commissioner
under subdivision (c) or (d) may be appealed by the complainant or
respondent to the Director of Industrial Relations within 10 days
following notification of the Labor Commissioner's determination.
The appeal shall set forth specifically and in full detail the
grounds upon which the appealing party considers the Labor
Commissioner's determination to be unjust or unlawful, and every
issue to be considered by the director.  The director may consider
any issue relating to the initial determination and may modify,
affirm, or reverse the Labor Commissioner's determination.  The
director's determination shall be the determination of the Labor
Commissioner.  The director shall notify the complainant and
respondent of his or her determination within 10 days of receipt of
the appeal.
   (f) The rights and remedies provided by this section do not
preclude an employee from pursuing any other rights and remedies
under any other law.



98.75.  The Labor Commissioner shall submit a report to the
Legislature by February 15, 1987, and annually thereafter by February
15, providing the following information with respect to
discrimination complaints for the previous calendar year:
   (a) The number of complaints filed pursuant to Section 98.7 or
1197.5, grouped according to the section of the Labor Code allegedly
violated.
   (b) The number of determinations issued, the number of
investigative hearings held, the number of complaints dismissed, and
the number of complaints found to be valid, grouped by the year in
which the complaints were filed.
   (c) The number of cases in which the respondent complied with the
Labor Commissioner's order to remedy unlawful discrimination, the
number of these orders with which respondents failed to comply, the
number of court actions brought by the Labor Commissioner to remedy
unlawful discrimination, and the results of those court actions.  If
the Labor Commissioner did not bring an action in court within 10
days against a respondent who failed to comply with his or her order,
the report shall specify the reasons for not bringing action in
court.


98.8.  The Labor Commissioner shall promulgate all regulations and
rules of practice and procedure necessary to carry out the provisions
of this chapter.


98.9.  Upon a finding by the Labor Commissioner that a willful or
deliberate violation of any of the provisions of the Labor Code,
within the jurisdiction of the Labor Commissioner, has been committed
by a person licensed as a contractor pursuant to Chapter 9
(commencing with Section 7000) of Division 3 of the Business and
Professions Code, in the course of such licensed activity, the Labor
Commissioner shall immediately, upon expiration of the period for
review specified in Section 98.2, or other applicable section,
deliver a certified copy of the finding of the violation to the
registrar of the Contractors' State License Board.



99.  The division may file preferred claims, mechanics' liens, and
other liens of employees in the name of the Labor Commissioner, his
deputy or representative or in the names of the employees, whenever
the facts have been investigated and found to support the claims.  A
statement that such facts have been found shall be alleged in the
preferred claim or lien if it is filed in the name of the Labor
Commissioner, his deputy or representative.



100.  The division may join various claimants in one preferred claim
or lien as well as list them with the data regarding their claims in
an exhibit and join them, in case of suit, in one cause of action in
cases where no valid reason exists for making separate causes of
action for each individual employee.


100.5.  Preferred claims for work performed or personal services
rendered are provided for in Sections 1204, 1205, 1206, 1207, and
1208 of the Code of Civil Procedure, and Part 9 (commencing with
Section 11400) of Division 7 of the Probate Code.




101.  No court costs of any nature shall be payable by the division,
in any civil action to which the division is a party.  Any sheriff
or marshal requested by the Labor Commissioner or a deputy or
representative of the Labor Commissioner shall serve the summons in
the action upon any person within the jurisdiction of the sheriff or
marshal or levy under a writ of attachment or execution in the action
upon the property of any defendant without cost to the division
except for keeper's fees, service fees, and storage charges.



101.5.  No fees shall be payable for the filing or recording of any
document or paper in the performance of any official service by the
Labor Commissioner.  The amount ordinarily charged for such filing or
recording shall be made a part of any judgment recovered by the
Labor Commissioner and shall be paid by the Labor Commissioner if
sufficient money is collected over and above the wages, penalties, or
demands actually due the claimants.



102.  The sheriff or marshal shall specify when the summons or
process is returned, what costs he or she would ordinarily have been
entitled to for such service, and those costs and the other regular
court costs that would have accrued if the action was not by the
Labor Commissioner shall be made a part of any judgment recovered by
the Labor Commissioner and shall be paid by the Labor Commissioner if
sufficient money is collected over and above the wages, penalties,
or demands actually due the claimants.



103.  The Labor Commissioner shall, to the extent provided for by
any reciprocal agreement entered into pursuant to Section 64, or by
the laws of any other state, maintain actions in the courts of the
other state for the collection of the claims for wages, judgments,
and other demands and may assign the claims, judgments, and demands
to the labor department or agency of the other state for collection
to the extent that they may be permitted or provided for by the laws
of that state or by reciprocal agreement.



104.  The Labor Commissioner shall, upon the written request of the
labor department or other corresponding agency of any other state or
of any person, board, officer or commission of such state authorized
to act for and on behalf of such labor department or corresponding
agency, maintain actions in the courts of this state upon assigned
claims for wages, judgments and demands arising in such other state
in the same manner and to the same extent that such actions by the
Labor Commissioner are authorized when arising in this state;
provided, however, that such actions may be commenced and maintained
only in those cases where such other state by appropriate legislation
or by reciprocal agreement extends a like comity to cases arising in
this state.



105.  (a) The Labor Commissioner shall provide qualified bilingual
persons in public contact positions or as interpreters to assist
those in such positions to provide information and services in the
language of a limited- or non-English-speaking person, with the
primary effort being exerted towards the largest segments of the
non-English-speaking persons in this state.
   (b) The Labor Commissioner shall provide that an interpreter be
present at all hearings and interviews where appropriate.
   (c) The Labor Commissioner shall prepare and distribute to the
public, through its local offices, materials explaining services
available in non-English languages, as well as in English.  In
addition, the commissioner shall prepare and use written materials in
non-English languages as well as in English for use by local offices
if the local office serves a substantial number of
non-English-speaking people, as defined in Section 7296.2  of the
Government Code.  The commissioner shall prepare and use such
complaint processing forms and form letters in the language of
non-English speaking people as the commissioner deems necessary and
appropriate for the filing, investigation, and resolution of wage
claims, giving due consideration to the rights and obligations of all
parties.  The commissioner may, from time to time, at his or her
discretion, eliminate, modify, amend, or add to the complaint
processing forms and form letters which are the subject of bilingual
or multilingual treatment or application.


106.  (a) The Labor Commissioner may authorize an employee of any of
the agencies that participate in the Joint Enforcement Strike Force
on the Underground Economy, as defined in Section 329 of the
Unemployment Insurance Code, to issue citations pursuant to Sections
226.4 and 1022 and issue and serve a penalty assessment order
pursuant to subdivision (a) of Section 3722.
   (b) No employees shall issue citations or penalty assessment
orders pursuant to this section unless they have been specifically
designated, authorized, and trained by the Labor Commissioner for
this purpose.  Appeals of all citations or penalty assessment orders
shall follow the procedures prescribed in Section 226.5, 1023, or
3725, whichever is applicable.



107.  (a) The enforcement of Section 14110.65 of the Welfare and
Institutions Code is vested with the State Department of Health
Services.
   (b) Any claim made under Section 14110.65 of the Welfare and
Institutions Code shall not constitute a wage claim as provided in
subdivision (a) of Section 96, and shall not be subject to this
chapter.

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110.  As used in this chapter:
   (a) "Appeals board" means the Workers' Compensation Appeals Board.
  The title of a member of the board is "commissioner."
   (b) "Administrative director" means the Administrative Director of
the Division of Workers' Compensation.
   (c) "Division" means the Division of Workers' Compensation.
   (d) "Medical director" means the physician appointed by the
administrative director pursuant to Section 122.
   (e) "Qualified medical evaluator" means physicians appointed by
the administrative director pursuant to Section 139.2.
   (f) "Court administrator" means the administrator of the workers'
compensation adjudicatory process at the trial level.



111.  (a) The Workers' Compensation Appeals Board, consisting of
seven members, shall exercise all judicial powers vested in it under
this code.  In all other respects, the Division of Workers'
Compensation is under the control of the administrative director and,
except as to those duties, powers, jurisdiction, responsibilities,
and purposes as are specifically vested in the appeals board, the
administrative director shall exercise the powers of the head of a
department within the meaning of Article 1 (commencing with Section
11150) of Chapter 2 of Part 1 of Division 3 of Title 2 of the
Government Code with respect to the Division of Workers' Compensation
which shall include supervision of, and responsibility for,
personnel, and the coordination of the work of the division, except
personnel of the appeals board.
   (b) The administrative director shall prepare and submit, on March
1 of each year, a report to the Governor and the Legislature
covering the activities of the division during the prior year.  The
report shall include recommendations for improvement and the need, if
any, for legislation to enhance the delivery of compensation to
injured workers.  The report shall include data on penalties imposed
on employers or insurers due to delays in compensation or notices, or
both, by category of penalty imposed.



112.  The members of the appeals board shall be appointed by the
Governor with the advice and consent of the Senate.  The term of
office of the members appointed prior to January 1, 1990, shall be
four years, and the term of office of members appointed on or after
January 1, 1990, shall be six years and they shall hold office until
the appointment and qualification of their successors.
   Five of the members of the appeals board shall be experienced
attorneys at law admitted to practice in the State of California.
The other two members need not be attorneys at law.  All members
shall be selected with due consideration of their judicial
temperament and abilities.  Each member shall receive the salary
provided for by Chapter 6 (commencing with Section 11550) of Part 1
of Division 3 of Title 2 of the Government Code.



113.  The Governor shall designate the chairman of the appeals board
from the membership of the appeals board.  The person so designated
shall hold the office of chairman at the pleasure of the Governor.
   The chairman may designate in writing one of the other members of
the appeals board to act as chairman during such time as he may be
absent from the state on official business, on vacation, or absent
due to illness.



115.  Actions of the appeals board shall be taken by decision of a
majority of the appeals board except as otherwise expressly provided.

   The chairman shall assign pending cases in which reconsideration
is sought to any three members thereof for hearing, consideration and
decision.  Assignments by the chairman of members to such cases
shall be rotated on a case-by-case basis with the composition of the
members so assigned being varied and changed to assure that there
shall never be a fixed and continued composition of members.  Any
such case assigned to any three members in which the finding, order,
decision or award is made and filed by any two or more of such
members shall be the action of the appeals board unless
reconsideration is had in accordance with the provisions of Article 1
(commencing with Section 5900), Chapter 7, Part 4, Division 4 of
this code.  Any case assigned to three members shall be heard and
decided only by them, unless the matter has been reassigned by the
chairman on a majority vote of the appeals board to the appeals board
as a whole in order to achieve uniformity of decision, or in cases
presenting novel issues.



116.  The seal of the appeals board bearing the inscription "Workers'
Compensation Appeals Board, Seal" shall be affixed to all writs and
authentications of copies of records and to such other instruments as
the appeals board directs.


117.  The administrative director may appoint an attorney licensed
to practice law in the state as counsel to the division.



119.  The attorney shall:
   (a) Represent and appear for the state and the Division of Workers'
Compensation and the appeals board in all actions and proceedings
arising under any provision of this code administered by the division
or under any order or act of the division or the appeals board and,
if directed so to do, intervene, if possible, in any action or
proceeding in which any such question is involved.
   (b) Commence, prosecute, and expedite the final determination of
all actions or proceedings, directed or authorized by the
administrative director or the appeals board.
   (c) Advise the administrative director and the appeals board and
each member thereof, upon request, in regard to the jurisdiction,
powers or duties of the administrative director, the appeals board
and each member thereof.
   (d) Generally perform the duties and services as attorney to the
Division of Workers' Compensation and the appeals board which are
required of him or her.



120.  The administrative director and the chairman of the appeals
board may each respectively appoint a secretary and assistant
secretaries to perform such services as shall be prescribed.



121.  The chairman of the appeals board may authorize its secretary
and any two assistant secretaries to act as deputy appeals board
members and may delegate authority and duties to these deputies. Not
more than three deputies may act as appeals board members at any one
time. No act of any deputy shall be valid unless it is concurred in
by at least one member of the appeals board.



122.  The administrative director shall appoint a medical director
who shall possess a physician's and surgeon's certificate granted
under Chapter 5 (commencing with Section 2000) of Division 2 of the
Business and Professions Code.  The medical director shall employ
medical assistants who shall also possess  physicians' and surgeons'
certificates and other staff necessary to the performance of his or
her duties. The salaries for the medical director and his or her
assistants shall be fixed by the Department of Personnel
Administration, commensurate with the salaries paid by private
industry to medical directors and assistant medical directors.




123.  The administrative director may employ necessary assistants,
officers, experts, statisticians, actuaries, accountants, workers'
compensation administrative law judges, stenographic shorthand
reporters, legal secretaries, disability evaluation raters, program
technicians, and other employees to implement new, efficient court
management systems.  The salaries of the workers' compensation
administrative law judges shall be fixed by the Department of
Personnel Administration for a class of positions which perform
judicial functions.


123.3.  Any official reporter employed by the administrative
director shall render stenographic or clerical assistance as directed
by the presiding workers' compensation administrative law judge of
the office to which the reporter is assigned, when the presiding
workers' compensation administrative law judge determines that the
reporter is not engaged in the performance of any other duty imposed
by law.



123.5.  (a) Workers' compensation administrative law judges employed
by the administrative director and supervised by the court
administrator pursuant to this chapter shall be taken from an
eligible list of attorneys licensed to practice law in this state,
who have the qualifications prescribed by the State Personnel Board.
In establishing eligible lists for this purpose, state civil service
examinations shall be conducted in accordance with the State Civil
Service Act (Part 2 (commencing with Section 18500) of Division 5 of
Title 2 of the Government Code).  Every workers' compensation judge
shall maintain membership in the State Bar of California during his
or her tenure.
   A workers' compensation administrative law judge may not receive
his or her salary as a workers' compensation administrative law judge
while any cause before the workers' compensation administrative law
judge remains pending and undetermined for 90 days after it has been
submitted for decision.
   (b) All workers' compensation administrative law judges appointed
on or after January 1, 2003, shall be attorneys licensed to practice
law in California for five or more years prior to their appointment
and shall have experience in workers' compensation law.



123.6.  (a) All workers' compensation administrative law judges
employed by the administrative director and supervised by the court
administrator shall subscribe to the Code of Judicial Ethics adopted
by the Supreme Court pursuant to subdivision (m) of Section 18 of
Article VI of the California Constitution for the conduct of judges
and shall not otherwise, directly or indirectly, engage in conduct
contrary to that code or to the commentary to the Code of Judicial
Ethics.
   In consultation with both the court administrator and the
Commission on Judicial Performance, the administrative director shall
adopt regulations to enforce this section. Existing regulations
shall remain in effect until new regulations based on the
recommendations of the court administrator and the Commission on
Judicial Performance have become effective. To the extent possible,
the rules shall be consistent with the procedures established by the
Commission on Judicial Performance for regulating the activities of
state judges, and, to the extent possible, with the gift, honoraria,
and travel restrictions on legislators contained in the Political
Reform Act of 1974 (Title 9 (commencing with Section 81000) of the
Government Code). The court administrator shall have the authority to
enforce the rules adopted by the administrative director.
   (b) Honoraria or travel allowed by the court administrator, and
not otherwise prohibited by this section in connection with any
public or private conference, convention, meeting, social event, or
like gathering, the cost of which is significantly paid for by
attorneys who practice before the board, may not be accepted unless
the court administrator has provided prior approval in writing to the
workers' compensation administrative law judge allowing him or her
to accept those payments.


123.7.  The appeals board may, by rule or regulation, establish
procedures whereby attorneys who are either certified specialists in
workers' compensation by  the California State Bar, or are eligible
for this certification, may be appointed by the presiding workers'
compensation judge of each board office to serve as a pro tempore
workers' compensation judge in a particular case, upon the
stipulation of the employee or his or her representative, and the
employer or the insurance carrier.  Service in this capacity by an
attorney shall be voluntary and without pay.  It is the intent of the
Legislature that the use of pro tempore workers' compensation judges
pursuant to this section shall not result in a reduction of the
number of permanent civil service employees or the number of
authorized full-time equivalent positions.



124.  (a) In administering and enforcing this division and Division
4 (commencing with Section 3200), the division shall protect the
interests of injured workers who are entitled to the timely provision
of compensation.
   (b) Forms and notices required to be given to employees by the
division shall be in English and Spanish.



125.  The administrative director shall cause to be printed and
furnished free of charge to any person blank forms  that may
facilitate or promote the efficient performance of the duties of the
Division of  Workers' Compensation.


126.  The Division of  Workers' Compensation, including the
administrative director and the appeals board, shall keep minutes of
all their proceedings and other books or records requisite for proper
and efficient administration.  All records shall be kept in their
respective offices.



127.  The administrative director and court administrator may:
   (a) Charge and collect fees for copies of papers and records, for
certified copies of official documents and orders or of the evidence
taken or proceedings had, for transcripts of testimony, and for
inspection of case files not stored in the place where the inspection
is requested.  The administrative director shall fix those fees in
an amount sufficient to recover the actual costs of furnishing the
services.  No fees for inspection of case files shall be charged to
an injured employee or his or her representative.
   (b) Publish and distribute from time to time, in addition to the
reports to the Governor, further reports and pamphlets covering the
operations, proceedings, and matters relative to the work of the
division.
   (c) Prepare, publish, and distribute an office manual, for which a
reasonable fee may be charged, and to which additions, deletions,
amendments, and other changes from time to time may be adopted,
published, and distributed, for which a reasonable fee may be charged
for the revision, or for which a reasonable fee may be fixed on an
annual subscription basis.
   (d) Fix and collect reasonable charges for publications issued.



127.5.  In the exercise of his or her functions, the court
administrator shall further the interests of uniformity and
expedition of proceedings before workers' compensation administrative
law judges, assure that all workers' compensation administrative law
judges are qualified and adhere to deadlines mandated by law or
regulations, and manage district office procedural matters at the
trial level.



127.6.  (a) The administrative director shall, in consultation with
the Commission on Health and Safety and Workers' Compensation, other
state agencies, and researchers and research institutions with
expertise in health care delivery and occupational health care
service, conduct a study of medical treatment provided to workers who
have sustained industrial injuries and illnesses.  The study shall
focus on, but not be limited to, all of the following:
   (1) Factors contributing to the rising costs and utilization of
medical treatment and case management in the workers' compensation
system.
   (2) An evaluation of case management procedures that contribute to
or achieve early and sustained return to work within the employee's
temporary and permanent work restrictions.
   (3) Performance measures for medical services that reflect patient
outcomes.
   (4) Physician utilization, quality of care, and outcome
measurement data.
   (5) Patient satisfaction.
   (b) The administrative director shall begin the study on or before
July 1, 2003, and shall report and make recommendations to the
Legislature based on the results of the study on or before July 1,
2004.
   (c) In implementing this section, the administrative director
shall ensure the confidentiality and protection of patient-specific
data.


128.  The appeals board may accept appointment as deputy
commissioner under, or any delegation of authority to enforce, the
United States Longshoremen's and Harbor Worker's Compensation Act.
The appeals board may enter into arrangements with the United States,
subject to the approval of the Department of Finance, for the
payment of any expenses incurred in the performance of services under
said act.  In the performance of any duties under said act,
appointment, or authority, the appeals board may, subject to the
provisions thereof, exercise any authority conferred upon the appeals
board by the laws of this state.



129.  (a) To make certain that injured workers, and their dependents
in the event of their death, receive promptly and accurately the
full measure of compensation to which they are entitled, the
administrative director shall audit insurers, self-insured employers,
and third-party administrators to determine if they have met their
obligations under this code.  Each audit subject shall be audited at
least once every five years.  The audit subjects shall be selected
and the audits conducted pursuant to subdivision (b).  The results of
audits of insurers shall be provided to the Insurance Commissioner,
and the results of audits of self-insurers and third-party
administrators shall be provided to the Director of Industrial
Relations.  Nothing in this section shall restrict the authority of
the Director of Industrial Relations or the Insurance Commissioner to
audit their licensees.
   (b) The administrative director shall schedule and conduct audits
as follows:
   (1) A profile audit review of every audit subject shall be
conducted once every five years and on additional occasions indicated
by target audit criteria.  The administrative director shall
annually establish a profile audit review performance standard that
will identify the poorest performing audit subjects.
   (2) A full compliance audit shall be conducted of each profile
audited subject failing to meet or exceed the profile audit review
performance standard.  The full compliance audit shall be a
comprehensive and detailed evaluation of the audit subject's
performance.  The administrative director shall annually establish a
full compliance audit performance standard that will identify the
audit subjects that are performing satisfactorily.  Any full
compliance audit subject that fails to meet or exceed the full
compliance audit performance standard shall be audited again within
two years.
   (3) A targeted profile audit review or a full compliance audit may
be conducted at any time in accordance with target audit criteria
adopted by the administrative director.  The target audit criteria
shall be based on information obtained from benefit notices, from
information and assistance officers, and from other reliable sources
providing factual information that indicates an insurer, self-insured
employer, or third-party administrator is failing to meet its
obligations under this division or Division 4 (commencing with
Section 3200) or the regulations of the administrative director.
   (c) If, as a result of a profile audit review or a full compliance
audit, the administrative director determines that any compensation,
interest, or penalty is due and unpaid to an employee or dependent,
the administrative director shall issue and cause to be served upon
the insurer, self-insured employer, or third-party administrator a
notice of assessment detailing the amounts due and unpaid in each
case, and shall order the amounts paid to the person entitled
thereto.  The notice of assessment shall be served personally or by
registered mail in accordance with subdivision (c) of Section 11505
of the Government Code.  A copy of the notice of assessment shall
also be sent to the affected employee or dependent.
   If the amounts are not paid within 30 days after service of the
notice of assessment, the employer shall also be liable for
reasonable attorney's fees necessarily incurred by the employee or
dependent to obtain amounts due.  The administrative director shall
advise each employee or dependent still owed compensation after this
30-day period of his or her rights with respect to the commencement
of proceedings to collect the compensation owed.  Amounts unpaid
because the person entitled thereto cannot be located shall be paid
to the Workers' Compensation Administration Revolving Fund.  The
Director of Industrial Relations shall promulgate rules and
regulations establishing standards and procedures for the payment of
compensation from moneys deposited in the Workers' Compensation
Administration Revolving Fund whenever the person entitled thereto
applies for compensation.
   (d) A determination by the administrative director that an amount
is or is not due to an employee or dependent shall not in any manner
limit the jurisdiction or authority of the appeals board to determine
the issue.
   (e) Annually, commencing on April 1, 1991, the administrative
director shall publish a report detailing the results of audits
conducted pursuant to this section during the preceding calendar
year.  The report shall include the name of each insurer,
self-insured employer, and third-party administrator audited during
that period.  For each insurer, self-insured employer, and
third-party administrator audited, the report shall specify the total
number of files audited, the number of violations found by type and
amount of compensation, interest and penalties payable, and the
amount collected for each violation.  The administrative director
shall also publish and make available to the public on request a list
ranking all insurers, self-insured employers, and third-party
administrators audited during the period according to their
performance measured by the profile audit review and full compliance
audit performance standards.
   These reports shall not identify the particular claim file that
resulted in a particular violation or penalty.  Except as required by
this subdivision or other provisions of law, the contents of
individual claim files and auditor's working papers shall be
confidential.  Disclosure of claim information to the administrative
director pursuant to an audit shall not waive the provisions of the
Evidence Code relating to privilege.
   (f) A profile audit review of the adjustment of claims against the
Uninsured Employers Fund by the claims and collections unit of the
Division of Workers' Compensation shall be conducted at least every
five years.  The results of this profile audit review shall be
included in the report required by subdivision (e).




129.5.  (a) The administrative director may assess an administrative
penalty against an insurer, self-insured employer, or third-party
administrator for any of the following:
   (1) Failure to comply with the notice of assessment issued
pursuant to subdivision (c) of Section 129 within 15 days of receipt.

   (2) Failure to pay when due the undisputed portion of an indemnity
payment, the reasonable cost of medical treatment of an injured
worker, or a charge or cost implementing an approved vocational
rehabilitation plan.
   (3) Failure to comply with any rule or regulation of the
administrative director.
   (b) The administrative director shall promulgate regulations
establishing a schedule of violations and the amount of the
administrative penalty to be imposed for each type of violation.  The
schedule shall provide for imposition of a penalty of up to one
hundred dollars ($100) for each violation of the less serious type
and for imposition of penalties in progressively higher amounts for
the most serious types of violations to be set at up to five thousand
dollars ($5,000) per violation.  The administrative director is
authorized to impose penalties pursuant to rules and regulations
which give due consideration to the appropriateness of the penalty
with respect to the following factors:
   (1) The gravity of the violation.
   (2) The good faith of the insurer, self-insured employer, or
third-party administrator.
   (3) The history of previous violations, if any.
   (4) The frequency of the violations.
   (5) Whether the audit subject has met or exceeded the profile
audit review performance standard.
   (6) Whether a full compliance audit subject has met or exceeded
the full compliance audit performance standard.
   (7) The size of the audit subject location.
   (c) The administrative director shall assess penalties as follows:

   (1) If, after a profile audit review, the administrative director
determines that the profile audit subject met or exceeded the profile
audit review performance standard, no penalties shall be assessed
under this section, but the audit subject shall be required to pay
any compensation due and penalties due under subdivision (d) of
Section 4650 as provided in subdivision (c) of Section 129.
   (2) If, after a full compliance audit, the administrative director
determines that the audit subject met or exceeded the full
compliance audit performance standards, penalties for unpaid or late
paid compensation, but no other penalties under this section, shall
be assessed.  The audit subject shall be required to pay any
compensation due and penalties due under subdivision (d) of Section
4650 as provided in subdivision (c) of Section 129.
   (3) If, after a full compliance audit, the administrative director
determines that the audit subject failed to meet the full compliance
audit performance standards, penalties shall be assessed as provided
in a full compliance audit failure penalty schedule to be adopted by
the administrative director.  The full compliance audit failure
penalty schedule shall adjust penalty levels relative to the size of
the audit location to mitigate inequality between total penalties
assessed against small and large audit subjects.  The penalty amounts
provided in the full compliance audit failure penalty schedule for
the most serious type of violations shall not be limited by
subdivision (b), but in no event shall the penalty for a single
violation exceed forty thousand dollars ($40,000).
   (d) The notice of penalty assessment shall be served personally or
by registered mail in accordance with subdivision (c) of Section
11505 of the Government Code.  The notice shall be in writing and
shall describe the nature of the violation, including reference to
the statutory provision or rule or regulation alleged to have been
violated.  The notice shall become final and the assessment shall be
paid unless contested within 15 days of receipt by the insurer,
self-insured employer, or third-party administrator.
   (e) In addition to the penalty assessments permitted by
subdivisions (a), (b), and (c), the administrative director may
assess a civil penalty, not to exceed one hundred thousand dollars
($100,000), upon finding, after hearing, that an employer, insurer,
or third-party administrator for an employer has knowingly committed
or performed with sufficient frequency so as to indicate a general
business practice any of the following:
   (1) Induced employees to accept less than compensation due, or
made it necessary for employees to resort to proceedings against the
employer to secure compensation.
   (2) Refused to comply with known and legally indisputable
compensation obligations.
   (3) Discharged or administered compensation obligations in a
dishonest manner.
   (4) Discharged or administered compensation obligations in a
manner as to cause injury to the public or those dealing with the
employer or insurer.
   Any employer, insurer, or third-party administrator that fails to
meet the full compliance audit performance standards in two
consecutive full compliance audits shall be rebuttably presumed to
have engaged in a general business practice of discharging and
administering its compensation obligations in a manner causing injury
to those dealing with it.
   Upon a second or subsequent finding, the administrative director
shall refer the matter to the Insurance Commissioner or the Director
of Industrial Relations and request that a hearing be conducted to
determine whether the certificate of authority, certificate of
consent to self-insure, or certificate of consent to administer
claims of self-insured employers, as the case may be, shall be
revoked.
   (f) An insurer, self-insured employer, or third-party
administrator may file a written request for a conference with the
administrative director within seven days after receipt of a notice
of penalty assessment issued pursuant to subdivision (a) or (c).
Within 15 days of the conference, the administrative director shall
issue a notice of findings and serve it upon the contesting party by
registered or certified mail.  Any amount found due by the
administrative director shall become due and payable 30 days after
receipt of the notice of findings.  The 30-day period shall be tolled
during any appeal.  A writ of mandate may be taken from the findings
to the appropriate superior court upon the execution by the
contesting party of a bond to the state in the principal sum that is
double the amount found due and ordered by the administrative
director, on the condition that the contesting party shall pay any
judgment and costs rendered against it for the amount.
   (g) An insurer, self-insured employer, or third-party
administrator may file a written request for a hearing before the
Workers' Compensation Appeals Board within seven days after receipt
of a notice of penalty assessment issued pursuant to subdivision (e).
  Within 30 days of the hearing, the appeals board shall issue
findings and orders and serve them upon the contesting party in the
manner provided in its rules.  Any amount found due by the appeals
board shall become due and payable 45 days after receipt of the
notice of findings.  Judicial review of the findings and order shall
be had in the manner provided by Article 2 (commencing with Section
5950) of Chapter 7 of Part 4 of Division 4.  The 45-day period shall
be tolled during appellate proceedings upon execution by the
contesting party of a bond to the state in a principal sum that is
double the amount found due and ordered by the appeals board on the
condition that the contesting party shall pay the amount ultimately
determined to be due and any costs awarded by an appellate court.
   (h) Nothing in this section shall create nor eliminate a civil
cause of action for the employee and his or her dependents.
   (i) All moneys collected under this section shall be deposited in
the State Treasury and credited to the Workers' Compensation
Administration Revolving Fund.


130.  The appeals board and each of its members, its secretary,
assistant secretaries, and workers' compensation judges, may
administer oaths, certify to all official acts, and issue subpoenas
for the attendance of witnesses and the production of papers, books,
accounts, documents and testimony in any inquiry, investigation,
hearing or proceeding in any part of the state.



131.  Each witness who appears by order of the appeals board or any
of its members, or a workers' compensation judge, shall receive, if
demanded, for his or her attendance the same fees and mileage allowed
by law to a witness in civil cases, paid by the party at whose
request the witness is subpoenaed, unless otherwise ordered by the
appeals board.  When any witness who has not been required to attend
at the request of any party is subpoenaed by the appeals board, his
or her fees and mileage may be paid from the funds appropriated for
the use of the appeals board in the same manner as other expenses of
the appeals board are paid.  Any witness subpoenaed, except one whose
fees and mileage are paid from the funds of the appeals board, may,
at the time of service, demand the fee to which he or she is entitled
for travel to and from the place at which he or she is required to
appear, and one day's attendance. If a witness demands his or her
fees at the time of service, and they are not at that time paid or
tendered, he or she shall not be required to attend as directed in
the subpoena.  All fees and mileage to which any witness is entitled
under this section may be collected by action therefor instituted by
the person to whom the fees are payable.



132.  The superior court in and for the county in which any
proceeding is held by the appeals board or a workers' compensation
judge may compel the attendance of witnesses, the giving of testimony
and the production of papers, including books, accounts, and
documents, as required by any subpoena regularly issued hereunder.
In case of the refusal of any witness to obey the subpoena the
appeals board or the workers' compensation judge, before whom the
testimony is to be given or produced, may report to the superior
court in and for the county in which the proceeding is pending, by
petition, setting forth that due notice has been given of the time
and place of attendance of the witness, or the production of the
papers, that the witness has been subpoenaed in the prescribed
manner, and that the witness has failed and refused to obey the
subpoena, or has refused to answer questions propounded to him or her
in the course of the proceeding, and ask an order of the court,
compelling the witness to attend and testify or produce the papers
before the appeals board.  The court shall thereupon enter an order
directing the witness to appear before the court at a time and place
fixed in the order, the time to be not more than 10 days from the
date of the order, and then and there show cause why he or she had
not attended and testified or produced the papers before the appeals
board or the workers' compensation judge.  A copy of the order shall
be served upon the witness.  If it appears to the court that the
subpoena was regularly issued hereunder and that the witness was
legally bound to comply therewith, the court shall thereupon enter an
order that the witness appear before the appeals board or the
workers' compensation judge at a time and place fixed in the order,
and testify or produce the required papers, and upon failure to obey
the order, the witness shall be dealt with as for contempt of court.
The remedy provided in this section is cumulative, and shall not
impair or interfere with the power of the appeals board or a member
thereof to enforce the attendance of witnesses and the production of
papers, and to punish for contempt in the same manner and to the same
extent as courts of record.


132a.  It is the declared policy of this state that there should not
be discrimination against workers who are injured in the course and
scope of their employment.
   (1) Any employer who discharges, or threatens to discharge, or in
any manner discriminates against any employee because he or she has
filed or made known his or her intention to file a claim for
compensation with his or her employer or an application for
adjudication, or because the employee has received a rating, award,
or settlement, is guilty of a misdemeanor and the employee's
compensation shall be increased by one-half, but in no event more
than ten thousand dollars ($10,000), together with costs and expenses
not in excess of two hundred fifty dollars ($250).  Any such
employee shall also be entitled to reinstatement and reimbursement
for lost wages and work benefits caused by the acts of the employer.

   (2) Any insurer that advises, directs, or threatens an insured
under penalty of cancellation or a raise in premium or for any other
reason, to discharge an employee because he or she has filed or made
known his or her intention to file a claim for compensation with his
or her employer or an application for adjudication, or because the
employee has received a rating, award, or settlement, is guilty of a
misdemeanor and subject to the increased compensation and costs
provided in paragraph (1).
   (3) Any employer who discharges, or threatens to discharge, or in
any manner discriminates against any employee because the employee
testified or made known his or her intentions to testify in another
employee's case before the appeals board, is guilty of a misdemeanor,
and the employee shall be entitled to reinstatement and
reimbursement for lost wages and work benefits caused by the acts of
the employer.
   (4) Any insurer that advises, directs, or threatens an insured
employer under penalty of cancellation or a raise in premium or for
any other reason, to discharge or in any manner discriminate against
an employee because the employee testified or made known his or her
intention to testify in another employee's case before the appeals
board, is guilty of a misdemeanor.
   Proceedings for increased compensation as provided in paragraph
(1), or for reinstatement and reimbursement for lost wages and work
benefits, are to be instituted by filing an appropriate petition with
the appeals board, but these proceedings may not be commenced more
than one year from the discriminatory act or date of termination of
the employee.  The appeals board is vested with full power,
authority, and jurisdiction to try and determine finally all matters
specified in this section subject only to judicial review, except
that the appeals board shall have no jurisdiction to try and
determine a misdemeanor charge.  The appeals board may refer and any
worker may complain of suspected violations of the criminal
misdemeanor provisions of this section to the Division of Labor
Standards Enforcement, or directly to the office of the public
prosecutor.



133.  The Division of Workers' Compensation, including the
administrative director, the court administrator, and the appeals
board, shall have power and jurisdiction to do all things necessary
or convenient in the exercise of any power or jurisdiction conferred
upon it under this code.



134.  The appeals board or any member thereof may issue writs or
summons, warrants of attachment, warrants of commitment and all
necessary process in proceedings for contempt, in like manner and to
the same extent as courts of record.  The process issued by the
appeals board or any member thereof shall extend to all parts of the
state and may be served by any persons authorized to serve process of
courts of record or by any person designated for that purpose by the
appeals board or any member thereof.  The person executing process
shall receive compensation allowed by the appeals board, not to
exceed the fees prescribed by law for similar services.  Such fees
shall be paid in the same manner as provided herein for the fees of
witnesses.



135.  In accordance with rules of practice and procedure that it may
adopt, the appeals board may, with the approval of the Department of
Finance, destroy or otherwise dispose of any file kept by it in
connection with any proceeding under Division 4 (commencing with
Section 3200) or Division 4.5 (commencing with Section 6100).




138.  The administrative director and the court administrator may
each appoint a deputy to act during that time as he or she may be
absent from the state due to official business, vacation, or illness.



138.1.  (a) The administrative director shall be appointed by the
Governor with the advice and consent of the Senate and shall hold
office at the pleasure of the Governor.  He or she shall receive the
salary provided for by Chapter 6 (commencing with Section 11550) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (b) The court administrator shall be appointed by the Governor
with the advice and consent of the Senate.  The court administrator
shall hold office for a term of five years.  The court administrator
shall receive the salary provided for by Chapter 6 (commencing with
Section 11550) of Part 1 of Division 3 of Title 2 of the Government
Code.



138.2.  (a) The headquarters of the Division of Workers'
Compensation shall be based at and operated from a centrally located
city.
   The administrative director and the court administrator shall have
an office in that city with suitable rooms, necessary office
furniture, stationery, and supplies, and may rent quarters in other
places for the purpose of establishing branch or service offices, and
for that purpose may provide those offices with necessary furniture,
stationery and supplies.
   (b) The administrative director shall provide suitable rooms, with
necessary office furniture, stationery and supplies, for the appeals
board at the centrally located city in which the board shall be
based and from which it shall operate, and may rent quarters in other
places for the purpose of establishing branch or service offices for
the appeals board, and for that purpose may provide those offices
with necessary furniture, stationery, and supplies.
   (c) All meetings held by the administrative director shall be open
and public.  Notice thereof shall be published in papers of general
circulation not more than 30 days and not less than 10 days prior to
each meeting in Sacramento, San Francisco, Fresno, Los Angeles and
San Diego.  Written notice of all meetings shall be given to all
persons who request in writing directed to the administrative
director that they be given notice.



138.3.  The administrative director shall, with respect to all
injuries, prescribe, pursuant to Section 5402, reasonable rules and
regulations requiring the employer to serve notice on the injured
employee that he may be entitled to benefits under this division.




138.4.  (a) For the purpose of this section, "claims administrator"
means a self-administered workers' compensation insurer; or a
self-administered self-insured employer; or a self-administered
legally uninsured employer; or a self-administered joint powers
authority; or a third-party claims administrator for an insurer, a
self-insured employer, a legally uninsured employer, or a joint
powers authority.
   (b) With respect to injuries resulting in lost time beyond the
employee's work shift at the time of injury or medical treatment
beyond first aid:
   (1) If the claims administrator obtains knowledge that the
employer has not provided a claim form or a notice of potential
eligibility for benefits to the employee, it shall provide the form
and notice to the employee within three working days of its knowledge
that the form or notice was not provided.
   (2) If the claims administrator cannot determine if the employer
has provided a claim form and notice of potential eligibility for
benefits to the employee, the claims administrator shall provide the
form and notice to the employee within 30 days of the administrator's
date of knowledge of the claim.
   (c) The administrative director shall prescribe reasonable rules
and regulations for serving on the employee (or employee's
dependents, in the case of death), notices dealing with the payment,
nonpayment, or delay in payment of temporary disability, permanent
disability, and death benefits and the provision of vocational
rehabilitation services, notices of any change in the amount or type
of benefits being provided, the termination of benefits, the
rejection of any liability for compensation, and an accounting of
benefits paid.



138.5.  The Division of Workers' Compensation shall cooperate in the
enforcement of child support obligations.  At the request of the
Department of Child Support Services, the administrative director
shall assist in providing to the State Department of Child Support
Services information concerning persons who are receiving permanent
disability benefits or who have filed an application for adjudication
of a claim which the Department of Child Support Services determines
is necessary to carry out its responsibilities pursuant to Section
17510 of the Family Code.
   The process of sharing information with regard to applicants for
and recipients of permanent disability benefits required by this
section shall be known as the Workers' Compensation Notification
Project.


138.6.  (a) The administrative director, in consultation with the
Insurance Commissioner and the Workers' Compensation Insurance Rating
Bureau, shall develop a cost-efficient workers' compensation
information system, which shall be administered by the division.  The
administrative director shall adopt regulations specifying the data
elements to be collected by electronic data interchange.
   (b) The information system shall do the following:
   (1) Assist the department to manage the workers' compensation
system in an effective and efficient manner.
   (2) Facilitate the evaluation of the efficiency and effectiveness
of the benefit delivery system.
   (3) Assist in measuring how adequately the system indemnifies
injured workers and their dependents.
   (4) Provide statistical data for research into specific aspects of
the workers' compensation program.
   (c) The data collected electronically shall be compatible with the
Electronic Data Interchange System of the International Association
of Industrial Accident Boards and Commissions. The administrative
director may adopt regulations authorizing the use of other
nationally recognized data transmission formats in addition to those
set forth in the Electronic Data Interchange System for the
transmission of data required pursuant to this section.  The
administrative director shall accept data transmissions in any
authorized format.  If the administrative director determines that
any authorized data transmission format is not in general use by
claims administrators, conflicts with the requirements of state or
federal law, or is obsolete, the administrative director may adopt
regulations eliminating that data transmission format from those
authorized pursuant to this subdivision.



138.65.  (a) The administrative director, after consultation with
the Insurance Commissioner, shall contract with a qualified
organization to study the effects of the 2003 and 2004 legislative
reforms on workers' compensation insurance rates.  The study shall
do, but not be limited to, all of the following:
   (1) Identify and quantify the savings generated by the reforms.
   (2) Review workers' compensation insurance rates to determine the
extent to which the reform savings were reflected in rates.  When
reviewing the rates, consideration shall be given to an insurer's
premium revenue, claim costs, and surplus levels.
   (3) Assess the effect of the reform savings on replenishing
surpluses for workers' compensation insurance coverage.
   (4) Review the effects of the reforms on the workers' compensation
insurance rates, marketplace, and competition.
   (5) Review the adequacy and accuracy of the pure premium rate as
recommended by the Workers' Compensation Insurance Bureau and the
pure premium rate adopted by the Insurance Commissioner.
   (b) Insurers shall submit to the contracting organization premium
revenue, claims costs, and surplus levels in different timing
aggregates as established by the contracting organization, but at
least quarterly and annually.  The contracting organization may also
request additional materials when appropriate.  The contracting
organization and the commission shall maintain strict confidentiality
of the data.  An insurer that fails to comply with the reporting
requirements of this subdivision is subject to Section 11754 of the
Insurance Code.
   (c) The administrative director shall submit to the Governor, the
Insurance Commissioner, and the President pro Tempore of the Senate,
the Speaker of the Assembly, and the chairs of the appropriate policy
committees of the Legislature, a progress report on the study on
January 1, 2005, and July 1, 2005, and the final study on or before
January 1, 2006.  The Governor and the Insurance Commissioner shall
review the results of the study and make recommendations as to the
appropriateness of regulating insurance rates.  If, after reviewing
the study, the Governor and the Insurance Commissioner determine that
the rates do not appropriately reflect the savings and the timing of
the savings associated with the 2003 and 2004 reforms, the Governor
and the Insurance Commissioner may submit proposals to the
Legislature.  The proposals shall take into consideration how rates
should be regulated, and by whom.  In no event shall the proposals
unfairly penalize insurers that have properly reflected the 2003 and
2004 reforms in their rates, or can verify that they have not
received any cost savings as a result of the reforms.
   (d) The cost of the study shall be borne by the insurers up to one
million dollars ($1,000,000).  The cost of the study shall be
allocated to an insurer based on the insurer's proportionate share of
the market.



138.7.  (a) Except as expressly permitted in subdivision (b), a
person or public or private entity not a party to a claim for workers'
compensation benefits may not obtain individually identifiable
information obtained or maintained by the division on that claim.
For purposes of this section, "individually identifiable information"
means any data concerning an injury or claim that is linked to a
uniquely identifiable employee, employer, claims administrator, or
any other person or entity.
   (b) (1) The administrative director, or a statistical agent
designated by the administrative director, may use individually
identifiable information for purposes of creating and maintaining the
workers' compensation information system as specified in Section
138.6.
   (2) The State Department of Health Services may use individually
identifiable information for purposes of establishing and maintaining
a program on occupational health and occupational disease prevention
as specified in Section 105175 of the Health and Safety Code.
   (3) (A) Individually identifiable information may be used by the
Division of Workers' Compensation, the Division of Occupational
Safety and Health, and the Division of Labor Statistics and Research
as necessary to carry out their duties.  The administrative director
shall adopt regulations governing the access to the information
described in this subdivision by these divisions.  Any regulations
adopted pursuant to this subdivision shall set forth the specific
uses for which this information may be obtained.
   (B) Individually identifiable information maintained in the
workers' compensation information system and the Division of Workers'
Compensation may be used by researchers employed by or under
contract to the Commission on Health and Safety and Workers'
Compensation as necessary to carry out the commission's research.
The administrative director shall adopt regulations governing the
access to the information described in this subdivision by commission
researchers.  These regulations shall set forth the specific uses
for which this information may be obtained and include provisions
guaranteeing the confidentiality of individually identifiable
information.  Individually identifiable information obtained under
this subdivision shall not be disclosed to commission members.  No
individually identifiable information obtained by researchers under
contract to the commission pursuant to this subparagraph may be
disclosed to any other person or entity, public or private, for a use
other than that research project for which the information was
obtained.  Within a reasonable period of time after the research for
which the information was obtained has been completed, the data
collected shall be modified in a manner so that the subjects cannot
be identified, directly or through identifiers linked to the
subjects.
   (4) The administrative director shall adopt regulations allowing
reasonable access to individually identifiable information by other
persons or public or private entities for the purpose of bona fide
statistical research.  This research shall not divulge individually
identifiable information concerning a particular employee, employer,
claims administrator, or any other person or entity.  The regulations
adopted pursuant to this paragraph shall include provisions
guaranteeing the confidentiality of individually identifiable
information.  Within a reasonable period of time after the research
for which the information was obtained has been completed, the data
collected shall be modified in a manner so that the subjects cannot
be identified, directly or through identifiers linked to the
subjects.
   (5) This section shall not operate to exempt from disclosure any
information that is considered to be a public record pursuant to the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code) contained in
an individual's file once an application for adjudication has been
filed pursuant to Section 5501.5.
   However, individually identifiable information shall not be
provided to any person or public or private entity who is not a party
to the claim unless that person identifies himself or herself or
that public or private entity identifies itself and states the reason
for making the request.  The administrative director may require the
person or public or private entity making the request to produce
information to verify that the name and address of the requester is
valid and correct.  If the purpose of the request is related to
preemployment screening, the administrative director shall notify the
person about whom the information is requested that the information
was provided and shall include the following in 12-point type:
   "IT MAY BE A VIOLATION OF FEDERAL AND STATE LAW TO DISCRIMINATE
AGAINST A JOB APPLICANT BECAUSE THE APPLICANT HAS FILED A CLAIM FOR
WORKERS' COMPENSATION BENEFITS."
   Any residence address is confidential and shall not be disclosed
to any person or public or private entity except to a party to the
claim, a law enforcement agency, an office of a district attorney,
any person for a journalistic purpose, or other governmental agency.

   Nothing in this paragraph shall be construed to prohibit the use
of individually identifiable information for purposes of identifying
bona fide lien claimants.
   (c) Except as provided in subdivision (b), individually
identifiable information obtained by the division is privileged and
is not subject to subpoena in a civil proceeding unless, after
reasonable notice to the division and a hearing, a court determines
that the public interest and the intent of this section will not be
jeopardized by disclosure of the information.  This section shall not
operate to restrict access to information by any law enforcement
agency or district attorney's office or to limit admissibility of
that information in a criminal proceeding.
   (d) It shall be unlawful for any person who has received
individually identifiable information from the division pursuant to
this section to provide that information to any person who is not
entitled to it under this section.



139.2.  (a) The administrative director shall appoint qualified
medical evaluators in each of the respective specialties as required
for the evaluation of medical-legal issues.  The appointments shall
be for two-year terms.
   (b) The administrative director shall appoint or reappoint as a
qualified medical evaluator a physician, as defined in Section
3209.3, who is licensed to practice in this state and who
demonstrates that he or she meets the requirements in paragraphs (1),
(2), (6), and (7), and, if the physician is a medical doctor, doctor
of osteopathy, doctor of chiropractic, or a psychologist, that he or
she also meets the applicable requirements in paragraph (3), (4), or
(5).
   (1) Prior to his or her appointment as a qualified medical
evaluator, passes an examination written and administered by the
administrative director for the purpose of demonstrating competence
in evaluating medical-legal issues in the workers' compensation
system.  Physicians shall not be required to pass an additional
examination as a condition of reappointment.  A physician seeking
appointment as a qualified medical evaluator on or after January 1,
2001, shall also complete prior to appointment, a course on
disability evaluation report writing approved by the administrative
director.  The administrative director shall specify the curriculum
to be covered by disability evaluation report writing courses, which
shall include, but is not limited to, 12 or more hours of
instruction.
   (2) Devotes at least one-third of total practice time to providing
direct medical treatment, or has served as an agreed medical
evaluator on eight or more occasions in the 12 months prior to
applying to be appointed as a qualified medical evaluator.
   (3) Is a medical doctor or doctor of osteopathy and meets one of
the following requirements:
   (A) Is board certified in a specialty by a board recognized by the
administrative director and either the Medical Board of California
or the Osteopathic Medical Board of California.
   (B) Has successfully completed a residency training program
accredited by the American College of Graduate Medical Education or
the osteopathic equivalent.
   (C) Was an active qualified medical evaluator on June 30, 2000.
   (D) Has qualifications that the administrative director and either
the Medical Board of California or the Osteopathic Medical Board of
California, as appropriate, both deem to be equivalent to board
certification in a specialty.
   (4) Is a doctor of chiropractic and meets either of the following
requirements:
   (A) Has completed a chiropractic postgraduate specialty program of
a minimum of 300 hours taught by a school or college recognized by
the administrative director, the Board of Chiropractic Examiners and
the Council on Chiropractic Education.
   (B) Has been certified in California workers' compensation
evaluation by a provider recognized by the administrative director.
The certification program shall include instruction on disability
evaluation report writing that meets the standards set forth in
paragraph (1).
   (5) Is a psychologist and meets one of the following requirements:

   (A) Is board certified in clinical psychology by a board
recognized by the administrative director.
   (B) Holds a doctoral degree in psychology, or a doctoral degree
deemed equivalent for licensure by the Board of Psychology pursuant
to Section 2914 of the Business and Professions Code, from a
university or professional school recognized by the administrative
director and has not less than five years' postdoctoral experience in
the diagnosis and treatment of emotional and mental disorders.
   (C) Has not less than five years' postdoctoral experience in the
diagnosis and treatment of emotional and mental disorders, and has
served as an agreed medical evaluator on eight or more occasions
prior to January 1, 1990.
   (6) Does not have a conflict of interest as determined under the
regulations adopted by the administrative director pursuant to
subdivision (o).
   (7) Meets any additional medical or professional standards adopted
pursuant to paragraph (6) of subdivision (j).
   (c) The administrative director shall adopt standards for
appointment of physicians who are retired or who hold teaching
positions who are exceptionally well qualified to serve as a
qualified medical evaluator even though they do not otherwise qualify
under paragraph (2) of subdivision (b).  In no event shall a
physician whose full-time practice is limited to the forensic
evaluation of disability be appointed as a qualified medical
evaluator under this subdivision.
   (d) The qualified medical evaluator, upon request, shall be
reappointed if he or she meets the qualifications of subdivision (b)
and meets all of the following criteria:
   (1) Is in compliance with all applicable regulations and
evaluation guidelines adopted by the administrative director.
   (2) Has not had more than five of his or her evaluations that were
considered by a workers' compensation administrative law judge at a
contested hearing rejected by the workers' compensation
administrative law judge or the appeals board pursuant to this
section during the most recent two-year period during which the
physician served as a qualified medical evaluator.  If the workers'
compensation administrative law judge or the appeals board rejects
the qualified medical evaluator's report on the basis that it fails
to meet the minimum standards for those reports established by the
administrative director or the appeals board, the workers'
compensation administrative law judge or the appeals board, as the
case may be, shall make a specific finding to that effect, and shall
give notice to the medical evaluator and to the administrative
director.  Any rejection shall not be counted as one of the five
qualifying rejections until the specific finding has become final and
time for appeal has expired.
   (3) Has completed within the previous 24 months at least 12 hours
of continuing education in impairment evaluation or workers'
compensation-related medical dispute evaluation approved by the
administrative director.
   (4) Has not been terminated, suspended, placed on probation, or
otherwise disciplined by the administrative director during his or
her most recent term as a qualified medical evaluator.
   If the evaluator does not meet any one of these criteria, the
administrative director may in his or her discretion reappoint or
deny reappointment according to regulations adopted by the
administrative director.  In no event may a physician who does not
currently meet the requirements for initial appointment or who has
been terminated under subdivision (e) because his or her license has
been revoked or terminated by the licensing authority be reappointed.

   (e) The administrative director may, in his or her discretion,
suspend or terminate a qualified medical evaluator during his or her
term of appointment without a hearing as provided under subdivision
(k) or (l) whenever either of the following conditions occurs:
   (1) The evaluator's license to practice in California has been
suspended by the relevant licensing authority so as to preclude
practice, or has been revoked or terminated by the licensing
authority.
   (2) The evaluator has failed to timely pay the fee required by the
administrative director pursuant to subdivision (n).
   (f) The administrative director shall furnish a physician, upon
request, with a written statement of its reasons for termination of,
or for denying appointment or reappointment as, a qualified medical
evaluator.  Upon receipt of a specific response to the statement of
reasons, the administrative director shall review his or her decision
not to appoint or reappoint the physician or to terminate the
physician and shall notify the physician of its final decision within
60 days after receipt of the physician's response.
   (g) The administrative director shall establish agreements with
qualified medical evaluators to assure the expeditious evaluation of
cases assigned to them for comprehensive medical evaluations.
   (h) (1) When requested by an employee or employer pursuant to
Section 4062.1, the medical director appointed pursuant to Section
122 shall assign three-member panels of qualified medical evaluators
within five working days after receiving a request for a panel.  If a
panel is not assigned within 15 working days, the employee shall
have the right to obtain a medical evaluation from any qualified
medical evaluator of his or her choice.  The medical director shall
use a random selection method for assigning panels of qualified
medical evaluators.  The medical director shall select evaluators who
are specialists of the type requested by the employee.  The medical
director shall advise the employee that he or she should consult with
his or her treating physician prior to deciding which type of
specialist to request.
   (2) The administrative director shall promulgate a form that shall
notify the employee of the physicians selected for his or her panel
after a request has been made pursuant to Section 4062.1 or 4062.2.
The form shall include, for each physician on the panel, the
physician's name, address, telephone number, specialty, number of
years in practice, and a brief description of his or her education
and training, and shall advise the employee that he or she is
entitled to receive transportation expenses and temporary disability
for each day necessary for the examination.  The form shall also
state in a clear and conspicuous location and type:  "You have the
right to consult with an information and assistance officer at no
cost to you prior to selecting the doctor to prepare your evaluation,
or you may consult with an attorney.  If your claim eventually goes
to court, the workers' compensation administrative law judge will
consider the evaluation prepared by the doctor you select to decide
your claim."
   (3) When compiling the list of evaluators from which to select
randomly, the medical director shall include all qualified medical
evaluators who meet all of the following criteria:
   (A) He or she does not have a conflict of interest in the case, as
defined by regulations adopted pursuant to subdivision (o).
   (B) He or she is certified by the administrative director to
evaluate in an appropriate specialty and at locations within the
general geographic area of the employee's residence.
   (C) He or she has not been suspended or terminated as a qualified
medical evaluator for failure to pay the fee required by the
administrative director pursuant to subdivision (n) or for any other
reason.
   (4) When the medical director determines that an employee has
requested an evaluation by a type of specialist that is appropriate
for the employee's injury, but there are not enough qualified medical
evaluators of that type within the general geographic area of the
employee's residence to establish a three-member panel, the medical
director shall include sufficient qualified medical evaluators from
other geographic areas and the employer shall pay all necessary
travel costs incurred in the event the employee selects an evaluator
from another geographic area.
   (i) The medical director appointed pursuant to Section 122 shall
continuously review the quality of comprehensive medical evaluations
and reports prepared by agreed and qualified medical evaluators and
the timeliness with which evaluation reports are prepared and
submitted.  The review shall include, but not be limited to, a review
of a random sample of reports submitted to the division, and a
review of all reports alleged to be inaccurate or incomplete by a
party to a case for which the evaluation was prepared.  The medical
director shall submit to the administrative director an annual report
summarizing the results of the continuous review of medical
evaluations and reports prepared by agreed and qualified medical
evaluators and make recommendations for the improvement of the system
of medical evaluations and determinations.
   (j) After public hearing pursuant to Section 5307.3, the
administrative director shall adopt regulations concerning the
following issues:
   (1) (A) Standards governing the timeframes within which medical
evaluations shall be prepared and submitted by agreed and qualified
medical evaluators.  Except as provided in this subdivision, the
timeframe for initial medical evaluations to be prepared and
submitted shall be no more than 30 days after the evaluator has seen
the employee or otherwise commenced the medical evaluation procedure.
  The administrative director shall develop regulations governing the
provision of extensions of the 30-day period in both of the
following cases:
   (i) When  the evaluator has not received test results or
consulting physician's evaluations in time to meet the 30-day
deadline.
   (ii) To extend the 30-day period by not more than 15 days when the
failure to meet the 30-day deadline was for good cause.
   (B) For purposes of subparagraph (A), "good cause" means any of
the following:
   (i) Medical emergencies of the evaluator or evaluator's family.
   (ii) Death in the evaluator's family.
   (iii) Natural disasters or other community catastrophes that
interrupt the operation of the evaluator's business.
   (C) The administrative director shall develop timeframes governing
availability of qualified medical evaluators for unrepresented
employees under Sections 4061 and 4062.  These timeframes shall give
the employee the right to the addition of a new evaluator to his or
her panel, selected at random, for each evaluator not available to
see the employee within a specified period of time, but shall also
permit the employee to waive this right for a specified period of
time thereafter.
   (2) Procedures to be followed by all physicians in evaluating the
existence and extent of permanent impairment and limitations
resulting from an injury in a manner consistent with Section 4660.
   (3) Procedures governing the determination of any disputed medical
treatment issues in a manner consistent with Section 5307.27.
   (4) Procedures to be used in determining the compensability of
psychiatric injury.  The procedures shall be in accordance with
Section 3208.3 and shall require that the diagnosis of a mental
disorder be expressed using the terminology and criteria of the
American Psychiatric Association's Diagnostic and Statistical Manual
of Mental Disorders, Third Edition-Revised, or the terminology and
diagnostic criteria of other psychiatric diagnostic manuals generally
approved and accepted nationally by practitioners in the field of
psychiatric medicine.
   (5) Guidelines for the range of time normally required to perform
the following:
   (A) A medical-legal evaluation that has not been defined and
valued pursuant to Section 5307.6.  The guidelines shall establish
minimum times for patient contact in the conduct of the evaluations,
and shall be consistent with regulations adopted pursuant to Section
5307.6.
   (B) Any treatment procedures that have not been defined and valued
pursuant to Section 5307.1.
   (C) Any other evaluation procedure requested by the Insurance
Commissioner, or deemed appropriate by the administrative director.
   (6) Any additional medical or professional standards that a
medical evaluator shall meet as a condition of appointment,
reappointment, or maintenance in the status of a medical evaluator.
   (k) Except as provided in this subdivision, the administrative
director may, in his or her discretion, suspend or terminate the
privilege of a physician to serve as a qualified medical evaluator if
the administrative director, after hearing pursuant to subdivision
(l), determines, based on substantial evidence, that a qualified
medical evaluator:
   (1) Has violated any material statutory or administrative duty.
   (2) Has failed to follow the medical procedures or qualifications
established pursuant to paragraph (2), (3), (4), or (5) of
subdivision (j).
   (3) Has failed to comply with the timeframe standards established
pursuant to subdivision (j).
   (4) Has failed to meet the requirements of subdivision (b) or (c).

   (5) Has prepared medical-legal evaluations that fail to meet the
minimum standards for those reports established by the administrative
director or the appeals board.
   (6) Has made material misrepresentations or false statements in an
application for appointment or reappointment as a qualified medical
evaluator.
   No hearing shall be required prior to the suspension or
termination of a physician's privilege to serve as a qualified
medical evaluator when the physician has done either of the
following:
   (A) Failed to timely pay the fee required pursuant to subdivision
(n).
   (B) Had his or her license to practice in California suspended by
the relevant licensing authority so as to preclude practice, or had
the license revoked or terminated by the licensing authority.
   (l) The administrative director shall cite the qualified medical
evaluator for a violation listed in subdivision (k) and shall set a
hearing on the alleged violation within 30 days of service of the
citation on the qualified medical evaluator.  In addition to the
authority to terminate or suspend the qualified medical evaluator
upon finding a violation listed in subdivision (k), the
administrative director may, in his or her discretion, place a
qualified medical evaluator on probation subject to appropriate
conditions, including ordering continuing education or training.  The
administrative director shall report to the appropriate licensing
board the name of any qualified medical evaluator who is disciplined
pursuant to this subdivision.
   (m) The administrative director shall terminate from the list of
medical evaluators any physician where licensure has been terminated
by the relevant licensing board, or who has been convicted of a
misdemeanor or felony related to the conduct of his or her medical
practice, or of a crime of moral turpitude.  The administrative
director shall suspend or terminate as a medical evaluator any
physician who has been suspended or placed on probation by the
relevant licensing board.  If a physician is suspended or terminated
as a qualified medical evaluator under this subdivision, a report
prepared by the physician that is not complete, signed, and furnished
to one or more of the parties prior to the date of conviction or
action of the licensing board, whichever is earlier, shall not be
admissible in any proceeding before the appeals board nor shall there
be any liability for payment for the report and any expense incurred
by the physician in connection with the report.
   (n) Each qualified medical evaluator shall pay a fee, as
determined by the administrative director, for appointment or
reappointment.  These fees shall be based on a sliding scale as
established by the administrative director.  All revenues from fees
paid under this subdivision shall be deposited into the Workers'
Compensation Administration Revolving Fund and are available for
expenditure upon appropriation by the Legislature, and shall not be
used by any other department or agency or for any purpose other than
administration of the programs the Division of Workers' Compensation
related to the provision of medical treatment to injured employees.
   (o) An evaluator may not request or accept any compensation or
other thing of value from any source that does or could create a
conflict with his or her duties as an evaluator under this code.  The
administrative director, after consultation with the Commission on
Health and Safety and Workers' Compensation, shall adopt regulations
to implement this subdivision.



139.3.  (a) Notwithstanding any other provision of law, to the
extent those services are paid pursuant to Division 4 (commencing
with Section 3200), it is unlawful for a physician to refer a person
for clinical laboratory, diagnostic nuclear medicine, radiation
oncology, physical therapy, physical rehabilitation, psychometric
testing, home infusion therapy, outpatient surgery, or diagnostic
imaging goods or services whether for treatment or medical-legal
purposes if the physician or his or her immediate family, has a
financial interest with the person or in the entity that receives the
referral.
   (b) For purposes of this section and Section 139.31, the following
shall apply:
   (1) "Diagnostic imaging" includes, but is not limited to, all
X-ray, computed axial tomography magnetic resonance imaging, nuclear
medicine, positron emission tomography, mammography, and ultrasound
goods and services.
   (2) "Immediate family" includes the spouse and children of the
physician, the parents of the physician, and the spouses of the
children of the physician.
   (3) "Physician" means a physician as defined in Section 3209.3.
   (4) A "financial interest" includes, but is not limited to, any
type of ownership, interest, debt, loan, lease, compensation,
remuneration, discount, rebate, refund, dividend, distribution,
subsidy, or other form of direct or indirect payment, whether in
money or otherwise, between a licensee and a person or entity to whom
the physician refers a person for a good or service specified in
subdivision (a).  A financial interest also exists if there is an
indirect relationship between a physician and the referral recipient,
including, but not limited to, an arrangement whereby a physician
has an ownership interest in any entity that leases property to the
referral recipient.  Any financial interest transferred by a
physician to, or otherwise established in, any person or entity for
the purpose of avoiding the prohibition of this section shall be
deemed a financial interest of the physician.
   (5) A "physician's office" is either of the following:
   (A) An office of a physician in solo practice.
   (B) An office in which the services or goods are personally
provided by the physician or by employees in that office, or
personally by independent contractors in that office, in accordance
with other provisions of law.  Employees and independent contractors
shall be licensed or certified when that licensure or certification
is required by law.
   (6) The "office of a group practice" is an office or offices in
which two or more physicians are legally organized as a partnership,
professional corporation, or not-for-profit corporation licensed
according to subdivision (a) of Section 1204 of the Health and Safety
Code for which all of the following are applicable:
   (A) Each physician who is a member of the group provides
substantially the full range of services that the physician routinely
provides, including medical care, consultation, diagnosis, or
treatment, through the joint use of shared office space, facilities,
equipment, and personnel.
   (B) Substantially all of the services of the physicians who are
members of the group are provided through the group and are billed in
the name of the group and amounts so received are treated as
receipts of the group, and except that in the case of multispecialty
clinics, as defined in subdivision (l) of Section 1206 of the Health
and Safety Code, physician services are billed in the name of the
multispecialty clinic and amounts so received are treated as receipts
of the multispecialty clinic.
   (C) The overhead expenses of, and the income from, the practice
are distributed in accordance with methods previously determined by
members of the group.
   (7) Outpatient surgery includes both of the following:
   (A) Any procedure performed on an outpatient basis in the
operating rooms, ambulatory surgery rooms, endoscopy units, cardiac
catheterization laboratories, or other sections of a freestanding
ambulatory surgery clinic, whether or not licensed under paragraph
(1) of subdivision (b) of Section 1204 of the Health and Safety Code.

   (B) The ambulatory surgery itself.
   (c) (1) It is unlawful for a licensee to enter into an arrangement
or scheme, such as a cross-referral arrangement, that the licensee
knows, or should know, has a principal purpose of ensuring referrals
by the licensee to a particular entity that, if the licensee directly
made referrals to that entity, would be in violation of this
section.
   (2) It shall be unlawful for a physician to offer, deliver,
receive, 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 a
referred evaluation or consultation.
   (d) No claim for payment shall be presented by an entity to any
individual, third-party payor, or other entity for any goods or
services furnished pursuant to a referral prohibited under this
section.
   (e) A physician who refers to or seeks consultation from an
organization in which the physician has a financial interest shall
disclose this interest to the patient or if the patient is a minor,
to the patient's parents or legal guardian in writing at the time of
the referral.
   (f) No insurer, self-insurer, or other payor shall pay a charge or
lien for any goods or services resulting from a referral in
violation of this section.
   (g) A violation of subdivision (a) shall be a misdemeanor.  The
appropriate licensing board shall review the facts and circumstances
of any conviction pursuant to subdivision (a) and take appropriate
disciplinary action if the licensee has committed unprofessional
conduct.  Violations of this section may also be subject to civil
penalties of up to five thousand dollars ($5,000) for each offense,
which may be enforced by the Insurance Commissioner, Attorney
General, or a district attorney.  A violation of subdivision (c),
(d), (e), or (f) is a public offense and is punishable upon
conviction by a fine not exceeding fifteen thousand dollars ($15,000)
for each violation and appropriate disciplinary action, including
revocation of professional licensure, by the Medical Board of
California or other appropriate governmental agency.



139.31.  The prohibition of Section 139.3 shall not apply to or
restrict any of the following:
   (a) A physician may refer a patient for a good or service
otherwise prohibited by subdivision (a) of Section 139.3 if the
physician's regular practice is where there is no alternative
provider of the service within either 25 miles or 40 minutes
traveling time, via the shortest route on a paved road.  A physician
who refers to, or seeks consultation from, an organization in which
the physician has a financial interest under this subdivision shall
disclose this interest to the patient or the patient's parents or
legal guardian in writing at the time of referral.
   (b) A physician who has one or more of the following arrangements
with another physician, a person, or an entity, is not prohibited
from referring a patient to the physician, person, or entity because
of the arrangement:
   (1) A loan between a physician and the recipient of the referral,
if the loan has commercially reasonable terms, bears interest at the
prime rate or a higher rate that does not constitute usury, is
adequately secured, and the loan terms are not affected by either
party's referral of any person or the volume of services provided by
either party.
   (2) A lease of space or equipment between a physician and the
recipient of the referral, if the lease is written, has commercially
reasonable terms, has a fixed periodic rent payment, has a term of
one year or more, and the lease payments are not affected by either
party's referral of any person or the volume of services provided by
either party.
   (3) A physician's ownership of corporate investment securities,
including shares, bonds, or other debt instruments that were
purchased on terms that are available to the general public through a
licensed securities exchange or NASDAQ, do not base profit
distributions or other transfers of value on the physician's referral
of persons to the corporation, do not have a separate class or
accounting for any persons or for any physicians who may refer
persons to the corporation, and are in a corporation that had, at the
end of the corporation's most recent fiscal year, total gross assets
exceeding one hundred million dollars ($100,000,000).
   (4) A personal services arrangement between a physician or an
immediate family member of the physician and the recipient of the
referral if the arrangement meets all of the following requirements:

   (A) It is set out in writing and is signed by the parties.
   (B) It specifies all of the services to be provided by the
physician or an immediate family member of the physician.
   (C) The aggregate services contracted for do not exceed those that
are reasonable and necessary for the legitimate business purposes of
the arrangement.
   (D) A written notice disclosing the existence of the personal
services arrangement and including information on where a person may
go to file a complaint against the licensee or the immediate family
member of the licensee, is provided to the following persons at the
time any services pursuant to the arrangement are first provided:
   (i) An injured worker who is referred by a licensee or an
immediate family member of the licensee.
   (ii) The injured worker's employer, if self-insured.
   (iii) The injured worker's employer's insurer, if insured.
   (iv) If the injured worker is known by the licensee or the
recipient of the referral to be represented, the injured worker's
attorney.
   (E) The term of the arrangement is for at least one year.
   (F) The compensation to be paid over the term of the arrangement
is set in advance, does not exceed fair market value, and is not
determined in a manner that takes into account the volume or value of
any referrals or other business generated between the parties,
except that if the services provided pursuant to the arrangement
include medical services provided under Division 4, compensation paid
for the services shall be subject to the official medical fee
schedule promulgated pursuant to Section 5307.1 or subject to any
contract authorized by Section 5307.11.
   (G) The services to be performed under the arrangement do not
involve the counseling or promotion of a business arrangement or
other activity that violates any state or federal law.
   (c) (1) A physician may refer a person to a health facility as
defined in Section 1250 of the Health and Safety Code, to any
facility owned or leased by a health facility, or to an outpatient
surgical center, if the recipient of the referral does not compensate
the physician for the patient referral, and any equipment lease
arrangement between the physician and the referral recipient complies
with the requirements of paragraph (2) of subdivision (b).
   (2) Nothing shall preclude this subdivision from applying to a
physician solely because the physician has an ownership or leasehold
interest in an entire health facility or an entity that owns or
leases an entire health facility.
   (3) A physician may refer a person to a health facility for any
service classified as an emergency under subdivision (a) or (b) of
Section 1317.1 of the Health and Safety Code.  For nonemergency
outpatient diagnostic imaging services performed with equipment for
which, when new, has a commercial retail price of four hundred
thousand dollars ($400,000) or more, the referring physician shall
obtain a service preauthorization from the insurer, or self-insured
employer.  Any oral authorization shall be memorialized in writing
within five business days.
   (d) A physician compensated or employed by a university may refer
a person to any facility owned or operated by the university, or for
a physician service, to another physician employed by the university,
provided that the facility or university does not compensate the
referring physician for the patient referral.  For nonemergency
diagnostic imaging services performed with equipment that, when new,
has a commercial retail price of four hundred thousand dollars
($400,000) or more, the referring physician shall obtain a service
preauthorization from the insurer or self-insured employer.  An oral
authorization shall be memorialized in writing within five business
days.  In the case of a facility which is totally or partially owned
by an entity other than the university, but which is staffed by
university physicians, those physicians may not refer patients to the
facility if the facility compensates the referring physician for
those referrals.
   (e) The prohibition of Section 139.3 shall not apply to any
service for a specific patient that is performed within, or goods
that are supplied by, a physician's office, or the office of a group
practice.  Further, the provisions of Section 139.3 shall not alter,
limit, or expand a physician's ability to deliver, or to direct or
supervise the delivery of, in-office goods or services according to
the laws, rules, and regulations governing his or her scope of
practice.  With respect to diagnostic imaging services performed with
equipment that, when new, had a commercial retail price of four
hundred thousand dollars ($400,000) or more, or for physical therapy
services, or for psychometric testing that exceeds the routine
screening battery protocols, with a time limit of two to five hours,
established by the administrative director, the referring physician
obtains a service preauthorization from the insurer or self-insured
employer.  Any oral authorization shall be memorialized in writing
within five business days.
   (f) The prohibition of Section 139.3 shall not apply where the
physician is in a group practice as defined in Section 139.3 and
refers a person for services specified in Section 139.3 to a
multispecialty clinic, as defined in subdivision (l) of Section 1206
of the Health and Safety Code.  For diagnostic imaging services
performed with equipment that, when new, had a commercial retail
price of four hundred thousand dollars ($400,000) or more, or
physical therapy services, or psychometric testing that exceeds the
routine screening battery protocols, with a time limit of two to five
hours, established by the administrative director, performed at the
multispecialty facility, the referring physician shall obtain a
service preauthorization from the insurer or self-insured employer.
Any oral authorization shall be memorialized in writing within five
business days.
   (g) The requirement for preauthorization in Sections (c), (e), and
(f) shall not apply to a patient for whom the physician or group
accepts payment on a capitated risk basis.
   (h) The prohibition of Section 139.3 shall not apply to any
facility when used to provide health care services to an enrollee of
a health care service plan licensed pursuant to the Knox-Keene Health
Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code).
   (i) The prohibition of Section 139.3 shall not apply to an
outpatient surgical center, as defined in paragraph (7) of
subdivision (b) of Section 139.3, where the referring physician
obtains a service preauthorization from the insurer or self-insured
employer after disclosure of the financial relationship.



139.4.  (a) The administrative director may review advertising copy
to ensure compliance with Section 651 of the Business and Professions
Code and may require qualified medical evaluators to maintain a file
of all advertising copy for a period of 90 days from the date of its
use.  Any file so required to be maintained shall be available to
the administrative director upon the administrative director's
request for review.
   (b) No advertising copy shall be used after its use has been
disapproved by the administrative director and the qualified medical
evaluator has been notified in writing of the disapproval.
   (c) A qualified medical evaluator who is found by the
administrative director to have violated any provision of this
section may be terminated, suspended, or placed on probation.
   (d) Proceedings to determine whether a violation of this section
has occurred shall be conducted pursuant to Chapter 4 (commencing
with Section 11370) of Part 1 of Division 3 of Title 2 of the
Government Code.
   (e) The administrative director shall adopt regulations governing
advertising by physicians with respect to industrial injuries or
illnesses.
   (f) Subdivision (a) shall not be construed to alter the
application of Section 651 of the Business and Professions Code.




139.43.  (a) No person or entity shall advertise, print, display,
publish, distribute, or broadcast, or cause or permit to be
advertised, printed, displayed, published, distributed, or broadcast
in any manner, any statement concerning services or benefits to be
provided to an injured worker, that is paid for directly or
indirectly by that person or entity and is false, misleading, or
deceptive, or that omits material information necessary to make the
statement therein not false, misleading, or deceptive.
   (b) As soon as reasonably possible, but not later than January 1,
1994, the administrative director shall adopt regulations governing
advertising by persons or entities other than physicians and
attorneys with respect to services or benefits for injured workers.
In promulgating regulations pursuant to this subdivision, the
administrative director shall review existing regulations, including
those adopted by the State Bar, to identify those regulatory
approaches that may serve as a model for regulations required by this
subdivision.
   (c) A violation of subdivision (a) is a misdemeanor, punishable by
incarceration in the county jail for not more than one year, or by a
fine not exceeding ten thousand dollars ($10,000), or both.
   (d) This section shall not apply to physicians or attorneys.  It
is the intent of the Legislature to exempt physicians and attorneys
from this section because the conduct regulated by this section, with
respect to physicians and attorneys, is governed by other provisions
of law.



139.45.  (a) In promulgating regulations pursuant to Sections 139.4
and 139.43, the administrative director shall take particular care to
preclude any advertisements with respect to industrial injuries or
illnesses that are false or mislead the public with respect to
workers' compensation.  In promulgating rules with respect to
advertising, the State Bar and physician licensing boards shall also
take particular care to achieve the same goal.
   (b) For purposes of subdivision (a), false or misleading
advertisements shall include advertisements that do any of the
following:
   (1) Contain an untrue statement.
   (2) Contain any matter, or present or arrange any matter in a
manner or format that is false, deceptive, or that tends to confuse,
deceive, or mislead.
   (3) Omit any fact necessary to make the statement made, in the
light of the circumstances under which the statement is made, not
misleading.
   (4) Are transmitted in any manner that involves coercion, duress,
compulsion, intimidation, threats, or vexatious or harassing conduct.

   (5) Entice a person to respond by the offering of any
consideration, including a good or service but excluding free medical
evaluations or treatment, that would be provided either at no charge
or for less than market value.  No free medical evaluation or
treatment shall be offered for the purpose of defrauding any entity.



139.47.  The Director of Industrial Relations shall establish and
maintain a program to encourage, facilitate, and educate employers to
provide early and sustained return to work after occupational injury
or illness.  The program shall do both of the following:
   (a) Develop educational materials and guides, in easily
understandable language in both print and electronic form, for
employers, health care providers, employees, and labor unions.  These
materials shall address issues including, but not limited to, early
return to work, assessment of functional abilities and limitations,
development of appropriate work restrictions, job analysis, worksite
modifications, assistive equipment and devices, and available
resources.
   (b) Conduct training for employee and employer organizations and
health care providers concerning the accommodation of injured
employees and the prevention of reinjury.



139.48.  (a) (1) The administrative director shall establish the
Return-to-Work Program in order to promote the early and sustained
return to work of the employee following a work-related injury or
illness.
   (2) This section shall be implemented to the extent funds are
available.
   (b) Upon submission by eligible employers of documentation in
accordance with regulations adopted pursuant to subdivision (h), the
administrative director shall pay the workplace modification expense
reimbursement allowed under this section.
   (c) The administrative director shall reimburse an eligible
employer for expenses incurred to make workplace modifications to
accommodate the employee's return to modified or alternative work, as
follows:
   (1) The maximum reimbursement to an eligible employer for expenses
to accommodate each temporarily disabled injured worker is one
thousand two hundred fifty dollars ($1,250).
   (2) The maximum reimbursement to an eligible employer for expenses
to accommodate each permanently disabled worker who is a qualified
injured worker is two thousand five hundred dollars ($2,500). If the
employer received reimbursement under paragraph (1), the amount of
the reimbursement under paragraph (1) and this paragraph shall not
exceed two thousand five hundred dollars ($2,500).
   (3) The modification expenses shall be incurred in order to allow
a temporarily disabled worker to perform modified or alternative work
within physician-imposed temporary work restrictions, or to allow a
permanently disabled worker who is an injured worker to return to
sustained modified or alternative employment with the employer within
physician-imposed permanent work restrictions.
   (4) Allowable expenses may include physical modifications to the
worksite, equipment, devices, furniture, tools, or other necessary
costs for accommodation of the employee's restrictions.
   (d) This section shall not create a preference in employment for
injured employees over noninjured employees. It shall be unlawful for
an employer to discriminatorily terminate, lay off, demote, or
otherwise displace an employee in order to return an industrially
injured employee to employment for the purpose of obtaining the
reimbursement set forth in subdivision (c).
   (e) For purposes of this section, the following definitions apply:

   (1) "Eligible employer" means any employer, except the state or an
employer eligible to secure the payment of compensation pursuant to
subdivision (c) of Section 3700, who employs 50 or fewer full-time
employees on the date of injury.
   (2) "Employee" means a worker who has suffered a work-related
injury or illness on or after July 1, 2004.
   (f) The administrative director shall adopt regulations to carry
out this section. Regulations allocating budget funds that are
insufficient to implement the workplace modification expense
reimbursement provided for in this section shall include a
prioritization schema.
   (g) The Workers' Compensation Return-to-Work Fund is hereby
created as a special fund in the State Treasury. The fund shall
consist of all penalties collected pursuant to Section 5814.6 and
transfers made by the administrative director from the Workers'
Compensation Administration Revolving Fund established pursuant to
Section 62.5. The fund shall be administered by the administrative
director. Moneys in the fund may be expended by the administrative
director, upon appropriation by the Legislature, only for purposes of
implementing this section.
   (h) This section shall be operative on July 1, 2004.
   (i) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2010, deletes or extends
that date.



139.6.  (a) The administrative director shall establish and effect
within the  Division of Workers' Compensation a continuing program to
provide information and assistance concerning the rights, benefits,
and obligations of the workers' compensation law to employees and
employers subject thereto.  The program shall include, but not be
limited to, the following:
   (1) The preparation, publishing, and as necessary, updating, of
guides to the California workers' compensation system for employees
and employers.  The guides shall detail, in easily understandable
language, the rights and obligations of employees and employers, the
procedures for obtaining benefits, and the means provided for
resolving disputes.  Separate guides may be prepared for employees
and employers.  The appropriate guide shall be provided to all labor
and employer organizations known to the administrative director, and
to any other person upon request.
   (2) The preparation, publishing, and as necessary, updating, of a
pamphlet advising injured workers of their basic rights under workers'
compensation law, and informing them of rights under the Americans
with Disabilities Act, and the provisions of the Fair Employment and
Housing Act relating to individuals with a disability.  The pamphlet
shall be written in easily understandable language.  The pamphlet
shall be available in both English and Spanish, and shall include
basic information concerning the circumstances under which injured
employees are entitled to the various types of workers' compensation
benefits, the protections against discrimination because of an
injury, the procedures for resolving any disputes which arise, and
the right to seek information and advice from an information and
assistance officer or an attorney.
   (b) In each district office of the division, the administrative
director shall appoint an information and assistance officer, and any
other deputy information and assistance officers as the work of the
district office may require.  The administrative director shall
provide office facilities and clerical support appropriate to the
functions of these information and assistance officers.
   (c) Each information and assistance officer shall be responsible
for the performance of the following duties:
   (1) Providing continuing information concerning rights, benefits,
and obligations under workers' compensation laws to injured workers,
employers, lien claimants, and other interested parties.
   (2) Upon request by the injured worker, assisting in the prompt
resolution of misunderstanding, disputes, and controversies arising
out of claims for compensation, without formal proceedings, in order
that full and timely compensation benefits shall be furnished.  In
performing this duty, information and assistance officers shall not
be responsible for reviewing applications for adjudication or
declarations of readiness to proceed.  This function shall be
performed by workers' compensation judges.  This function may also be
performed by settlement conference referees upon delegation by the
appeals board.
   (3) Distributing any information pamphlets in English and Spanish
as are prepared and approved by the administrative director to all
inquiring injured workers and any other parties that may request
copies of these pamphlets.
   (4) Establishing and maintaining liaison with the persons located
in the geographic area served by the district office, with other
affected state agencies, and with organizations representing
employees, employers, insurers, and the medical community.

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140.  (a) There is in the Department of Industrial Relations, the
Occupational Safety and Health Standards Board which consists of
seven members who shall be appointed by the Governor.  Two members
shall be from the field of management, two members shall be from the
field of labor, one member shall be from the field of occupational
health, one member shall be from the field of occupational safety and
one member shall be from the general public.  Members representing
occupational safety and health fields and the public member shall be
selected from other than the fields of management or labor.
   (b) Terms of office for members of the Industrial Safety Board
shall expire 60 days after the effective date of the amendment of
this section enacted at the 1973-74 Regular Session.  Newly appointed
members of the Occupational Safety and Health Standards Board shall
assume their duties upon that date.
   (c) The Governor shall designate the chairman of the board from
the membership of the board.  The person so designated shall hold the
office of chairman at the pleasure of the Governor.  The chairman
shall designate a member of the board to act as chairman in his
absence.
   (d) As used in this chapter, "board" means the Occupational Safety
and Health Standards Board.
   (e) All references in this or any other code to the Industrial
Safety Board shall be deemed to mean the Occupational Safety and
Health Standards Board.



141.  (a) The terms of office of the members of the board shall be
four years and they shall hold office until the appointment and
qualification of a successor.  The terms of the members of the board
first appointed shall expire as follows:  three members, one
representative from management, one representative from labor, and
one representative from occupational health, on June 1, 1974; three
members, one representative from management, one representative from
labor, and one representative from occupational safety, on June 1,
1975; one member June 1, 1976.  The terms shall thereafter expire in
the same relative order.  Vacancies occurring shall be filled by
appointment to the unexpired term.
   (b) Each member of the board shall receive one hundred dollars
($100) for each day of his or her actual attendance at meetings of
the board, and other official business of the board, and his or her
actual and necessary traveling expenses incurred in the performance
of his or her duty as a member.



142.  The Division of Occupational Safety and Health shall enforce
all occupational safety and health standards adopted pursuant to this
chapter, and those heretofore adopted by the Industrial Accident
Commission or the Industrial Safety Board.  General safety orders
heretofore adopted by the Industrial Accident Commission or the
Industrial Safety Board shall continue to remain in effect, but they
may be amended or repealed pursuant to this chapter.



142.1.  The board shall meet at least monthly.  The meetings shall
be rotated throughout the state at locations designated by the
chairman.  All meetings held by the board shall be open and public.
Written notice of all meetings and a proposed agenda shall be given
to all persons who make request for the notice in writing to the
board.



142.2.  At each of its meetings, the board shall make time available
to interested persons to propose new or revised orders or standards
appropriate for adoption pursuant to this chapter or other items
concerning occupational safety and health.  The board shall consider
such proposed orders or standards and report its decision no later
than six months following receipt of such proposals.



142.3.  (a) (1) The board, by an affirmative vote of at least four
members, may adopt, amend or repeal occupational safety and health
standards and orders.  The board shall be the only agency in the
state authorized to adopt occupational safety and health standards.
   (2) The board shall adopt standards at least as effective as the
federal standards for all issues for which federal standards have
been promulgated under Section 6 of the Occupational Safety and
Health Act of 1970 (P.L. 91-596) within six months of the
promulgation date of the federal standards and which, when applicable
to products which are distributed or used in interstate commerce,
are required by compelling local conditions and do not unduly burden
interstate commerce.
   (3) No standard or amendment to any standard adopted by the board
that is substantially the same as a federal standard shall be subject
to Article 5 (commencing with Section 11346) and Article 6
(commencing with Section 11349) of Chapter 3.5 of Part 1 of Division
3 of Title 2 of the Government Code.  For purposes of this
subdivision, "substantially the same" means identical to the federal
standard with the exception of editorial and format differences
needed to conform to other state laws and standards.
   (4) If a federal standard is promulgated and no state standard
that is at least as effective as the federal standard is adopted by
the board within six months of the date of promulgation of the
federal standard, the following provisions shall apply unless
adoption of the state standard is imminent:
   (A) If there is no existing state standard covering the same
issues, the federal standard shall be deemed to be a standard adopted
by the board and enforceable by the division pursuant to Section
6317.  This standard shall not be subject to Article 5 (commencing
with Section 11346) and Article 6 (commencing with Section 11349) of
Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government
Code.
   (B) If a state standard is in effect at the time a federal
standard is promulgated covering the same issue or issues, the board
may adopt the federal standard, or a portion thereof, as a standard
enforceable by the division pursuant to Section 6317; provided,
however, if a federal standard or portion thereof is adopted which
replaces an existing state standard or portion thereof, the federal
standard shall be as effective as the state standard or portion
thereof.  No adoption of or amendment to any federal standard, or
portion thereof shall be subject to Article 5 (commencing with
Section 11346) and Article 6 (commencing with Section 11349) of
Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government
Code.
   (C) Any state standard adopted pursuant to subparagraph (A) or (B)
shall become effective at the time the standard is filed with the
Secretary of State, unless otherwise provided, but shall not take
effect before the effective date of the equivalent federal standard
and shall remain in effect for six months unless readopted by the
board for an additional six months or superseded by a standard
adopted by the board pursuant to paragraph (2) of subdivision (a).
   (D) Any standard adopted pursuant to subparagraph (A), (B), or
(C), shall be published in Title 8 of the California Code of
Regulations in a manner similar to any other standards adopted
pursuant to paragraphs (1) and (2) of subdivision (a) of this
section.
   (b) The State Building Standards Commission shall codify and
publish in a semiannual supplement to the California Building
Standards Code, or in a more frequent supplement if required by
federal law, all occupational safety and health standards that would
otherwise meet the definition of a building standard described in
Section 18909 of the Health and Safety Code adopted by the board in
the State Building Standards Code without reimbursement from the
board.  These occupational safety and health standards may also be
published by the Occupational Safety and Health Standards Board in
other provisions in Title 8 of the California Code of Regulations
prior to publication in the California Building Standards Code if
that other publication includes an appropriate identification of
occupational safety and health standards contained in the other
publication.
   (c) Any occupational safety or health standard or order
promulgated under this section shall prescribe the use of labels or
other appropriate forms of warning as are necessary to ensure that
employees are apprised of all hazards to which they are exposed,
relevant symptoms and appropriate emergency treatment, and proper
conditions and precautions for safe use or exposure.  Where
appropriate, these standards or orders shall also prescribe suitable
protective equipment and control or technological procedures to be
used in connection with these hazards and shall provide for
monitoring or measuring employee exposure at such locations and
intervals and in a manner as may be necessary for the protection of
employees.  In addition, where appropriate, the occupational safety
or health standard or order shall prescribe the type and frequency of
medical examinations or other tests which shall be made available,
by the employer or at his or her cost, to employees exposed to such
hazards in order to most effectively determine whether the health of
such employee is adversely affected by this exposure.
   (d) The results of these examinations or tests shall be furnished
only to the Division of Occupational Safety and Health, the State
Department of Health Services, any other authorized state agency, the
employer, the employee, and, at the request of the employee, to his
or her physician.



142.4.  (a) Occupational safety and health standards and orders
shall be adopted, amended, or repealed as provided in Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, except as modified by this chapter.
   (b) If an emergency regulation is based upon an emergency
temporary standard published in the Federal Register by the Secretary
of Labor pursuant to Section 6(c)(1) of the Federal Occupational
Safety and Health Act of 1970 (P.L.  91-596; 29 U.S.C. Sec. 655(c)
(1)), the 120-day period specified in Section 11346.1 of the
Government Code shall be deemed not to expire until 120 days after a
permanent standard is promulgated by the Secretary of Labor pursuant
to Section 6(c)(3) of the Federal Occupational Safety and Health Act
of 1970 (29 U.S.C. Sec. 655(c)(3)).



142.7.  (a) On or before October 1, 1987, the board shall adopt an
occupational safety and health standard concerning hazardous
substance removal work, so as to protect most effectively the health
and safety of employees.  The standard shall include, but not be
limited to, requirements for all of the following:
   (1) Specific work practices.
   (2) Certification of all employees engaged in hazardous  substance
removal-related work, except that no certification shall be required
for an employee whose only activity is the transportation of
hazardous substances which are subject to the requirement for a
certificate under Section 12804.1 of the Vehicle Code.
   (3) Certification of supervisors with sufficient experience and
authority to be responsible for hazardous substance removal work.
   (4) Designation of a qualified person who shall be responsible for
scheduling any air sampling, laboratory calibration of sampling
equipment, evaluation of soil or other contaminated materials
sampling results, and for conducting any equipment testing and
evaluating the results of the tests.
   (5) Requiring that a safety and health conference be held for all
hazardous substance removal jobs before the start of actual work.
The conference shall include representatives of the owner or
contracting agency, the contractor, the employer, employees, and
employee representatives, and shall include a discussion of the
employer's safety and health program and the means, methods, devices,
processes, practices, conditions, or operations which the employer
intends to use in  providing a safe and healthy place of employment.

   (b) For purposes of this section, "hazardous substance  removal
work" means  cleanup work at any of the following:
   (1) A site where removal or remedial action is taken pursuant to
either of the following:
   (A) Chapter 6.8 (commencing with Section 25300) of Division 20 of
the Health and Safety Code, regardless of whether the site is listed
pursuant to Section 25356 of the Health and Safety Code.
   (B) The federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et
seq.).
   (2) A site where corrective action is taken pursuant to Section
25187 or 25200.  10 of the Health and Safety Code or the federal
Resource Conservation and Recovery Act of 1976 (42 U.S.C. Sec. 6901
et seq.).
   (3) A site where cleanup of a discharge of a hazardous substance
is required pursuant to Division 7 (commencing with Section 13000) of
the Water Code.
   (4) A site where removal or remedial action is taken because a
hazardous substance has been discharged or released in an amount that
is reportable pursuant to Section 13271 of the Water Code or the
federal Comprehensive Environmental Response, Compensation, and
Liability Act of 1980  (42 U.S.C.  Sec. 9601 et seq.).  "Hazardous
substance removal work" does not include work related to a hazardous
substance spill on a highway.
   (c) Until the occupational safety and health standard required by
subdivision (a) is adopted by the board and becomes effective, the
occupational safety and health standard concerning hazardous
substance removal work shall be the standard adopted by the federal
government and codified in Section 1910.120 of Title 29 of the Code
of Federal Regulations.  In addition, before actual work is started
on a hazardous substance removal job, a safety and health conference
shall be held that shall include the participants and involve a
discussion of the subjects described in paragraph (5) of subdivision
(a).


143.  (a) Any employer may apply to the board for a permanent
variance from an occupational safety and health standard, order,
special order, or portion thereof, upon a showing of an alternate
program, method, practice, means, device, or process which will
provide equal or superior safety for employees.
   (b) The board shall issue such variance if it determines on the
record, after opportunity for an investigation where appropriate and
a hearing, that the proponent of the variance has demonstrated by a
preponderance of the evidence that the conditions, practices, means,
methods, operations, or processes used or proposed to be used by an
employer will provide employment and places of employment to his
employees which are as safe and healthful as those which would
prevail if he complied with the standard.  The variance so issued
shall prescribe the conditions the employer must maintain, and the
practices, means, methods, operations, and processes which he must
adopt and utilize to the extent they differ from the standard in
question.
   (c) The board is authorized to grant a variance from any standard
or portion thereof whenever it determines such variance is necessary
to permit an employer to participate in an experiment approved by the
director designed to demonstrate or validate new and improved
techniques to safeguard the health or safety of workers.
   (d) A permanent variance may be modified or revoked upon
application by an employer, employees, or the division, or by the
board on its own motion, in the manner prescribed for its issuance
under this section at any time.



143.1.  The board shall conduct hearings on such requests for a
permanent variance after employees or employee representatives are
properly notified and given an opportunity to appear.  All board
decisions on permanent variance requests shall be final except for
any rehearing or judicial review provided for by law.



143.2.  The board, acting as a whole, may adopt, amend, or repeal
rules of practice and procedure pertaining to hearings on
applications for permanent variances, variance appeals, and other
matters within its jurisdiction.  All rules of practice and procedure
amendments thereto, or repeal thereof, shall be made in accordance
with the provisions of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.



144.  (a) The authority of any agency, department, division, bureau
or any other political subdivision other than the Division of
Occupational Safety and Health to assist in the administration or
enforcement of any occupational safety or health standard, order, or
rule adopted pursuant to this chapter shall be contained in a written
agreement with the Department of Industrial Relations or an agency
authorized by the department to enter into such agreement.
   (b) No such agreement shall deprive the Division of Occupational
Safety and Health or other state agency to which authority has been
delegated of any power or authority of the state agency.
   (c) Such an agreement may provide for the right of access of an
authorized representative of the designated agency to enter any place
of employment which is under the jurisdiction of the Division of
Occupational Safety and Health.
   (d) If any representative of an agency operating under such an
agreement becomes aware of an imminent hazard, he shall notify the
employer and affected employees of the hazard and immediately notify
the Division of Occupational Safety and Health.
   (e) Nothing in this section shall affect or limit the authority of
any state or local agency as to any matter other than the
enforcement of occupational safety and health standards adopted by
the board; however, nothing herein shall limit or reduce the
authority of local agencies to adopt and enforce higher standards
relating to occupational safety and health for their own employees.




144.5.  (a) The Division of Occupational Safety and Health in
connection with the enforcement of occupational safety and health
standards adopted pursuant to this chapter shall do all of the
following:
   (1) Conduct inspections or investigations related to specific
workplaces for the evaluation of occupational health problems or
environmental conditions which may be harmful to the health of
employees.
   (2) Upon request of any employer or employee, or on its own
initiative, conduct special investigations or studies of occupational
health problems which are unrelated to a specific enforcement action
to the extent the circumstances indicate and priorities permit.
   (3) Provide a continuing program of training for safety engineers
of the Division of Occupational Safety and Health in the recognition
of health hazards, in dealing with such hazards that do not require
specialized competence or equipment and in acquainting them with the
skills available from the State Department of Health Services and
local health agencies.
   (b) (1) When requested by a local health department, the Division
of Occupational Safety and Health shall enter into a written
agreement with such local health department to conduct inspections
and evaluations of occupational health problems, including
environmental and sanitary conditions, in places of employment.
   (2) Any such agreement shall be subject to the provisions of
Section 144.  It shall be entered into only after a finding that the
local health department can meet the necessary standards of
performance for inspections and evaluations to be conducted pursuant
to the agreement.
   (3) Such agreement shall not be binding upon either party unless
and until it has been fully approved by the United States Department
of Labor.
   (4) Such agreements shall be completed by the Division of
Occupational Safety and Health and submitted for approval to the
United States Department of Labor not later than six months from the
date of request by the local health department.
   (5) Inspection services performed under the agreement shall be
conducted pursuant to the occupational safety and health standards
adopted pursuant to this chapter.



144.6.  In promulgating standards dealing with toxic materials or
harmful physical agents, the board shall adopt that standard which
most adequately assures, to the extent feasible, that no employee
will suffer material impairment of health or functional capacity even
if such employee has regular exposure to a hazard regulated by such
standard for the period of his working life.  Development of
standards under this section shall be based upon research,
demonstrations, experiments, and such other information as may be
appropriate.  In addition to the attainment of the highest degree of
health and safety protection for the employee, other considerations
shall be the latest available scientific data in the field, the
reasonableness of the standards, and experience gained under this and
other health and safety laws.  Whenever practicable, the standard
promulgated shall be expressed in terms of objective criteria and of
the performance desired.


144.7.  (a) The board shall, no later than January 15, 1999, adopt
an emergency regulation revising the bloodborne pathogen standard
currently set forth in Section 5193 of Title 8 of the California Code
of Regulations in accordance with subdivision (b).  Following
adoption of the emergency regulation, the board shall complete the
regulation adoption process and shall formally adopt a regulation
embodying a bloodborne pathogen standard meeting the requirements of
subdivision (b), which regulation shall become operative no later
than August 1, 1999.  Notwithstanding Section 11346.1 of the
Government Code, the emergency regulation adopted pursuant to this
subdivision shall remain in effect until the nonemergency regulation
becomes operative or until August 1, 1999, whichever first occurs.
   (b) The board shall adopt a standard, as described in subdivision
(a), to be developed by the Division of Occupational Safety and
Health.  The standard shall include, but not be limited to, the
following:
   (1) A revised definition of "engineering controls" that includes
sharps injury prevention technology including, but not limited to,
needleless systems and needles with engineered sharps injury
protection, which shall be defined in the standard.
   (2) A requirement that sharps injury prevention technology
specified in paragraph (1) be included as engineering or work
practice controls, except in cases where the employer or other
appropriate party can demonstrate circumstances in which the
technology does not promote employee or patient safety or interferes
with a medical procedure.  Those circumstances shall be specified in
the standard, and shall include, but not be limited to, circumstances
where the technology is medically contraindicated or not more
effective than alternative measures used by the employer to prevent
exposure incidents.
   (3) A requirement that written exposure control plans include an
effective procedure for identifying and selecting existing sharps
injury prevention technology of the type specified in paragraph (1).

   (4) A requirement that written exposure control plans be updated
when necessary to reflect progress in implementing the sharps injury
prevention technology specified in paragraph (1).
   (5) A requirement that information concerning exposure incidents
be recorded in a sharps injury log, including, but not limited to,
the type and brand of device involved in the incident.
   (c) The Division of Occupational Safety and Health may consider
and propose for adoption by the board additional revisions to the
bloodborne pathogen standards to prevent sharps injuries or exposure
incidents including, but not limited to, training requirements and
measures to increase vaccinations.
   (d) The Division of Occupational Safety and Health and the State
Department of Health Services shall jointly compile and maintain a
list of existing needleless systems and needles with engineered
sharps injury protection, which shall be available to assist
employers in complying with the requirements of the bloodborne
pathogen standard adopted pursuant to this section.  The list may be
developed from existing sources of information, including, but not
limited to, the federal Food and Drug Administration, the federal
Centers for Disease Control, the National Institute of Occupational
Safety and Health, and the United States Department of Veterans
Affairs.


145.  The board may employ necessary assistants, officers, experts,
and such other employees as it deems necessary.  All such personnel
of the board shall be under the supervision of the chairman of the
board or an executive officer to whom he delegates such
responsibility.  All such personnel shall be appointed pursuant to
the State Civil Service Act (Part 1 (commencing with Section 18000)
of Division 5 of Title 2 of the Government Code), except for the one
exempt deputy or employee allowed by subdivision (e) of Section 4 of
Article XXIV of the California Constitution.



145.1.  The board and its duly authorized representatives in the
performance of its duties shall have the powers of a head of a
department as set forth in Article 2 (commencing with Section 11180)
of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government
Code.



146.  In the conduct of hearings related to permanent variances, the
board and its representatives are not bound by common law or
statutory rules of evidence or by technical or formal rules of
procedure but shall conduct the hearings in accordance with Article 8
(commencing with Section 11435.05) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of, and Section 11513 of, the Government Code.
A full and complete record shall be kept of all proceedings.



147.  The board shall refer to the Division of Occupational Safety
and Health for evaluation any proposed occupational safety or health
standard or variance from adopted standards received by the board
from sources other than the division.  The division shall submit a
report on the proposed standard or variance within 60 days of receipt
thereof.



147.1.  In connection with the development and promulgation of
occupational health standards the Division of Occupational Safety and
Health shall perform all of the following functions:
   (a) Analyze proposed and new federal occupational health
standards, evaluate their impact on California, determine any
necessity for their modification, and present proposed standards to
the board in sufficient time for the board to conduct hearings and
adopt standards within the time required.
   (b) Maintain liaison with the National Institute of Occupational
Safety and Health and the federal Occupational Safety and Health
Administration in the development of recommended federal standards
and when appropriate provide representation on federal advisory
committees dealing with the development of occupational health
standards.
   (c) On occupational health issues not covered by federal standards
maintain surveillance, determine the necessity for standards,
develop and present proposed standards to the board.
   (d) Evaluate any proposed occupational health standard or
application for a variance of an occupational health standard
received by the board, and submit a report to the board on the
proposed standard or variance within 60 days of receipt thereof.
   (e) Appear and testify at board hearings and other public
proceedings involving occupational health matters.



147.2.  In accordance with Chapter 2 (commencing with Section 6350)
of Part 1 of Division 5 of this code and Section 105175 of the Health
and Safety Code, the Department of Industrial Relations shall, by
interagency agreement with the State Department of Health Services,
establish a repository of current data on toxic materials and harmful
physical agents in use or potentially in use in places of employment
in the state.
   The repository shall fulfill all of the following functions:
   (1) Provide reliable information of practical use to employers,
employees, representatives of employees, and other governmental
agencies on the possible hazards to employees of exposure to toxic
materials or harmful physical agents.
   (2) Collect and evaluate toxicological and epidemiological data
and any other information that may be pertinent to establishing
harmful effects on health of exposure to toxic materials or harmful
physical agents.  Nothing in this subdivision shall be construed as
authorizing the repository to require employers to report any
information not otherwise required by law.
   (3) Recommend to the Chief of the Division of Occupational Safety
and Health Administration that an occupational safety and health
standard be developed whenever it has been determined that a
substance in use or potentially in use in places of employment is
potentially toxic at the concentrations or under the conditions used.

   (4) Notify the Director of Food and Agriculture of any information
developed by the repository that is relevant to carrying out his or
her responsibilities under Chapters 2 (commencing with Section 12751)
and 3 (commencing with Section 14001) of Division 7 of the Food and
Agricultural Code.
   The Director of Industrial Relations shall appoint an Advisory
Committee to the repository.  The Advisory Committee shall consist of
four representatives from labor, four representatives from
management, four active practitioners in the occupational health
field, and three persons knowledgeable in biomedical statistics or
information storage and retrieval systems.  The Advisory Committee
shall meet on a regular basis at the request of the director.  The
committee shall be consulted by, and shall advise the director at
each phase of the structuring and functioning of the repository and
alert system with regard to, the procedures, methodology, validity,
and practical utility of collecting, evaluating, and disseminating
information concerning hazardous substances, consistent with the
primary goals and objectives of the repository.
   Nothing in this section shall be construed to limit the ability of
the State Department of Health Services to propose occupational
safety and health standards to the Occupational Safety and Health
Standards Board.
   Policies and procedures shall be developed to assure, to the
extent possible, that the repository uses and does not duplicate the
resources of the federal government and other states.
   On or before December 31 of each year, the Department of
Industrial Relations shall submit a report to the Legislature
detailing the implementation and operation of the repository
including, but not limited to, the amount and source of funds
allocated and spent on repository activities, the toxic materials and
harmful physical agents investigated during the past year and
recommendations made concerning them, actions taken to inform
interested persons of the possible hazards of exposure to toxic
materials and harmful physical agents, and any recommendations for
legislative changes relating to the functions of the repository.

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148.  (a) There is in the Department of Industrial Relations the
Occupational Safety and Health Appeals Board, consisting of three
members appointed by the Governor, subject to the approval of the
Senate.  One member shall be from the field of management, one shall
be from the field of labor and one member shall be from the general
public.  The public member shall be chosen from other than the fields
of management and labor.  Each member of the appeals board shall
devote his full time to the performance of his duties.
   (b) The chairman and each member of the appeals board shall
receive the annual salary provided for by Chapter 6 (commencing with
Section 11550) of Part 1 of Division 3 of Title 2 of the Government
Code.
   (c) The Governor shall designate the chairman of the appeals board
from the membership of the appeals board.  The person so designated
shall hold the office of chairman at the pleasure of the Governor.
The chairman shall designate a member of the appeals board to act as
chairman in his absence.


148.1.  Each member of the appeals board shall serve for a term of
four years and until his successor is appointed and qualifies.  The
terms of the first three members appointed to the appeals board shall
expire on the second, third, and fourth January 15th following the
date of the appointment of the first appointed member.  A vacancy
shall be filled by the Governor, subject to the approval of the
Senate by appointment for the unexpired term.



148.2.  The appeals board may employ necessary assistants, officers,
experts, hearing officers, and such other employees as it deems
necessary.  All such personnel of the appeals board shall be under
the supervision of the chairman of the appeals board or an executive
officer to whom the chairman delegates such responsibility.  All such
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 exempt deputy or employee
allowed by subdivision (e) of Section 4 of Article XXIV of the
California Constitution.  The salaries of the hearing officers shall
be fixed by the State Personnel Board at a rate comparable to that of
other referees or hearing officers in state service whose duties and
responsibilities are comparable, without regard to whether such
other positions have membership in the State Bar of California as a
prerequisite to appointment.



148.4.  All decisions and orders of the appeals board shall be in
writing.


148.5.  A decision of the appeals board is final, except for any
rehearing or judicial review as permitted by Chapter 4 (commencing
with Section 6600) of Part 1 of Division 5.



148.6.  A decision of the appeals board is binding on the director
and the Division of Occupational Safety and Health with respect to
the parties involved in the particular appeal.  The director shall
have the right to seek judicial review of an appeals board decision
irrespective of whether or not he or she appeared or participated in
the appeal to the appeals board or its hearing officer.



148.7.  The appeals board, acting as a whole, may adopt, amend, or
repeal rules of practice and procedure pertaining to hearing appeals
and other matters falling within its jurisdiction.  All such rules,
amendments thereto, or repeals thereof shall be made in accordance
with the provisions of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.



148.8.  The appeals board and its duly authorized representatives in
the performance of its duties shall have the powers of a head of a
department as set forth in Article 2 (commencing with Section 11180)
of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government
Code, except for Section 11185 of the Government Code.




148.9.  Decisions of the appeals board shall be made by a majority
of the appeals board, except as otherwise expressly provided.



149.  The chairman of the appeals board may authorize its executive
officer to act as deputy appeals board member, and may delegate
authority and duties to the executive officer in the event of the
absence of a member of the appeals board.




149.5.  The appeals board may award reasonable costs, including
attorney's fees, consultant's fees, and witness' fees, not to exceed
five thousand dollars ($5,000) in the aggregate, to any employer who
appeals a citation resulting from an inspection or investigation
conducted on or after January 1, 1980, issued for violation of an
occupational safety and health standard, rule, order, or regulation
established pursuant to Chapter 6 (commencing with Section 140) of
Division 1, if (1) either the employer prevails in the appeal, or the
citation is withdrawn, and (2) the appeals board finds that the
issuance of the citation was the result of arbitrary or capricious
action or conduct by the division.
   The appeals board shall adopt rules of practice and procedure to
implement this section.
   The payment of costs pursuant to this section shall be from funds
in the regular operating budget of the division.  The division shall
show in its proposed budget for each fiscal year the following
information with respect to the prior fiscal year:
   (a) The total costs paid.
   (b) The number of cases in which costs were paid.

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150.  The Division of Labor Statistics and Research, hereafter in
this chapter referred to as the division, shall collect, compile and
present facts and statistics relating to the condition of labor in
the state, including information as to cost of living, labor supply
and demand, industrial relations, industrial disputes, industrial
accidents and safety, labor productivity, sanitary and other
conditions, prison labor, and such other matters in relation to labor
as the Director of Industrial Relations deems desirable.  Except for
statistics relating to internal administration, all statistical
functions of the department shall be performed by the division.




151.  The division shall conduct an annual survey of the ethnic
derivation of the individuals who are parties to apprentice
agreements described in Section 3077 of this code.  In conducting
this survey, the division shall use any pertinent data which the
federal government may provide to avoid duplication of effort.
   The Division of Apprenticeship Standards shall cooperate in the
accomplishment of the survey required by this section as the division
may request.  The occasion of this survey may be used to gather such
additional current data as may be of benefit to apprenticeship
programs.
   Data gathered pursuant to this section shall not be evidence per
se of an unlawful employment practice.
   Nothing in this section shall be construed to authorize any state
agency to require an employer to employ a specified percentage of
individuals of any particular ethnic derivation irrespective of such
individuals' qualifications for employment.


152.  The Chief of the Division of Labor Statistics and Research and
employees of the division authorized by him may issue subpoenas to
compel the attendance of witnesses and production of books, papers
and records; administer oaths; examine witnesses under oath; take the
verification or proof of written instruments; and take depositions
and affidavits for the purpose of carrying out the provisions of this
code and performing the duties which the division is required to
perform.  They shall have free access to all places of labor.  Any
person, or agent or officer thereof, who willfully neglects or
refuses to furnish statistics requested by the division, which are in
his possession, or under his control, or who refuses to admit the
chief or his authorized employee to a place of labor, is guilty of a
misdemeanor.  The Director of Industrial Relations may direct the
chief and the employees of other divisions of the department to
transmit to the Division of Labor Statistics and Research any
statistical information in their possession, or to conduct
investigations and otherwise assist the Division of Labor Statistics
and Research in the gathering of whatever statistics the director
deems desirable.



153.  Except as provided in Section 151 no use shall be made in the
reports of the division of the names of persons supplying the
information required under this code.  Any agent or employee of the
division who violates this section is guilty of a misdemeanor.




156.  An annual report containing statistics on California work
injuries and occupational diseases and fatalities by industry
classifications shall be completed and published by the Division of
Labor Statistics and Research no later than December 31 of the
following calendar year.  All of the reports and statistics shall be
available to the public.

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175.  The Division of Occupational Safety and Health shall be the
lead agency  in providing for public health and safety as well as
worker health and safety in the construction, maintenance, and
operation of any liquefied petroleum gas storage facility, other than
a facility owned or maintained by a public utility, having a
capacity of 100,000 barrels or more, including storage vessels, and
related piping, pumping, distribution, and transfer apparatus.  As
the lead agency, the division shall request any state or local agency
having statutory public health and safety jurisdiction over any part
of the construction, maintenance, or operation of any such liquefied
petroleum gas storage facility, other than a facility owned or
maintained by a public utility, to exercise its statutory
jurisdiction in relation to such facility, and shall report to the
Legislature any instance in which such jurisdiction was not
exercised.


176.  (a) The Legislature hereby finds and declares that the
Dymally-Alatorre Bilingual Services Act, Chapter 17.5 (commencing
with Section 7290) of Division 7 of Title 1 of the Government Code,
was enacted in 1973 to provide for the removal of language barriers
that prevent the people of this state who are not proficient in
English from effectively accessing government services and otherwise
communicating with their government.
   The Legislature further finds and declares that
limited-English-proficient individuals will benefit from increased
language-based access to the programs and services of the Division of
Occupational Safety and Health.
   The Legislature further finds and declares that federal statistics
show that from 1996 to 2000, while overall worker fatalities dropped
14 percent, immigrant worker fatalities rose 17 percent.  Immigrant
workers die on the job at higher rates because they frequently work
in more dangerous industries with little or no training.  Language
barriers compound the problem because training and warning signs are
often only in English.
   (b) As used in this section, a "public contact position" means any
position responsible for responding to telephone or in-office
inquiries or taking complaints from the general public regarding
matters pertaining to occupational safety and health.
   (c) As used in the section, an "investigative position" means any
position responsible for investigating complaints, injuries, or
deaths related to occupational safety and health.
   (d) As used in this section, "limited-English-proficient" refers
to persons who speak English less than "very well," in accordance
with United States Census data.
   (e) The division shall make all efforts to ensure that
limited-English-proficient persons can communicate effectively with
the division.  Examples of potential measures include, but are not
limited to, the hiring of bilingual persons in public contact
positions and investigative positions, the use of contract based
interpreters, and the use of telephone-based interpretation services.
  Nothing contained in this section relieves the division of its
separate obligations under the Dymally-Alatorre Bilingual Services
Act, Chapter 17.5 (commencing with Section 7290) of Division 7 of
Title 1 of the Government Code, or any other state or federal laws
requiring the provision of its services in languages other than
English.
   (f) On July 30, 2004, the Division of Occupational Safety and
Health shall issue a progress report to the Legislature on the
implementation of this section that shall, at a minimum, include all
of the following:
   (1) The most recent information provided to the California State
Personnel Board pursuant to Section 7299.4 of the Government Code.
   (2) The number of bilingual employees in public contact and
investigative positions in each local office of the division and the
languages they speak, other than English.
   (3) A description of any centralized system or other resources for
providing translation and interpretation services within the
division.
   (4) A description of any quality control measures or evaluations
undertaken by the division to evaluate whether
limited-English-proficient persons are able to communicate
effectively with the division.
   (5) A description of any means, such as contracted interpreters,
telephone-based interpretation services, or video conferencing, used
by the division to communicate with individuals who are
limited-English-proficient in the event that bilingual employees in
public contact or investigative positions are not available, and the
frequency in which these services were used by the division during
the most recent fiscal year.