Workers' Comp Reform
Senate Bill 1160
As of January 1, 2017, Senate Bill 1160 adds requirements to verify that a lien is legitimate, that it is filed only by the lien holder, and that that liens owned by providers who have been indicted or charged with crimes be stayed until the disposition of criminal proceedings. In compliance with these new requirements, the Division of Workers’ Compensation will make available an amended lien form which includes the required declaration under newly enacted Labor Code Section 4903.05(c). All liens filed after January 1, 2017 must use this new form. Liens that are subject to the filing fee and filed without the declaration will be dismissed.
SB 1160 also requires that all lien claimants file an original bill with their lien.
SB 1160 additionally reduces utilization review requirements in the first 30 days following a work-related injury. It also mandates electronic reporting of utilization review data by claims administrators to the Division of Workers’ Compensation, which will enable the division to monitor claim processes and address problems.
Lien Dismissals by Operation of Law
Labor Code section 4903.05(c), as amended by SB 1160, requires lien claimants to file a declaration verifying the legitimacy of liens for medical treatment or medical-legal expenses. Claimants who had filed liens between January 1, 2013 and December 31, 2016, were required to file the declarations by July 1, 2017, to avoid having those liens dismissed.
Claimants failed to file the required declaration for approximately 292,000 liens, resulting in the automatic dismissal of those liens by operation of law.
- Overview of Senate Bill 1160
- Filing and Service of Lien Claims Requirement for Liens Filed Before January 1, 2017 - Effective March 26, 2017
- Full list of lien claimants whose liens have been flagged In EAMS as potentially subject to a stay under Labor Code Section 4615 - PDF version
- Notice of Request for Allowance of Lien
- Supplemental Lien Form and Section 4903.05(c) Declaration
The above forms are draft only and available through e-filing and jet filing.