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Peabody: How a Workers' Compensation Bill Becomes Law

  • State: California
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Have you ever wondered how a workers’ compensation bill transforms from a mere idea into the law of the land in California? The process is intricate, with various steps and many players, each with their own interests and influences.

Michael D. Peabody

Michael D. Peabody

Step 1: The spark of an idea

Every bill starts with a spark. It might come from a state legislator inspired by a worker’s struggle after an injury, or a business owner overwhelmed by high insurance costs. Sometimes, it’s applicants' attorney groups seeking increased compensation rates, or business organizations advocating for more accessible regulations. In California, anyone can pitch an idea for a new bill — individuals, groups or government agencies.

Step 2: Drafting the bill

Once the idea is on the table, it gets crafted into a formal bill, complete with a summary that explains its purpose in plain language. A state senator or Assembly member introduces the bill, which is then assigned a number preceded by “SB” (Senate Bill) or “AB” (Assembly Bill), stating where it was introduced.

Step 3: Committee review

Next, the bill heads to a relevant committee — often the Assembly Insurance Committee or Labor and Employment Committee for workers’ compensation bills. Stakeholders such as insurers, health care providers and worker advocacy groups present their views. The committee debates, amends and decides the bill’s fate. It might move through multiple committees, each adding its own 2 cents.

Step 4: Money talks

If the bill survives the initial review, it’s off to the Appropriations Committee. Lawmakers here scrutinize its financial impact, asking whether the state can afford it and how it will affect businesses. Data from state agencies overseeing workers’ compensation, such as the Department of Industrial Relations, play a crucial role in these discussions.

Step 5: The chamber showdown

With committee approvals in hand, the bill faces the full chamber — first the house of origin (either the Assembly or Senate) — and if it passes, the other chamber. Lawmakers debate and vote, and the lobbyists ramp up their efforts to sway decisions. Most bills need a simple majority, but some, like budget-related ones, require a two-thirds vote.

Step 6: Reconciliation dance

If the second house makes changes, the bill goes back to the house of origin for concurrence. Lawmakers can either accept the changes or work out the differences in a conference committee of legislators from both houses. This compromise must be approved by both chambers before moving forward.

Step 7: The governor’s call

The final version lands on the governor’s desk. Earlier in a session, the governor has 12 days to sign it into law, veto it or let it become law without a signature. During the last few weeks of the legislative session, the Legislature is very busy with many bills, so the governor has 30 days to sign or veto the bill. A veto can be overridden if two-thirds of the Legislature votes in favor.

Step 8: Bringing it to life

Once signed, the bill becomes law. State agencies jump into action crafting guidelines, training staff and spreading the word about the new regulations, often asking the public for its opinion about proposed regulations. Employers and carriers then adjust to the new rules.

How you can get involved

  1. Speak up. Share your concerns and ideas with your state legislators via email, phone or at town hall meetings. “War stories” and data can highlight the need for legislative action, either for or against a bill.
  2. Pitch your idea. Have a great idea for a bill? Propose it to your legislator. Sometimes it helps to go with proposed legislative language that they can introduce and adapt. Teaming up with advocacy groups can also strengthen your proposal. If you’re concerned about a bill that is on the table, be sure to let them know as well.
  3. Testify in committees. Public testimonies are crucial during committee reviews. Testify in person or submit short written statements to influence the bill’s review. If you’re against the bill, speak up and briefly explain the reason for your position.

The timeline

This journey can span several months to several years, depending on the bill’s complexity and the level of debate. Some bills even need multiple legislative sessions to pass.

Turning a workers’ compensation bill into law in California involves a detailed process with multiple stages and diverse stakeholders. By getting involved in this process and providing your perspective, you can help shape the laws that impact workers’ compensation in the state.

Michael D. Peabody is a partner and workers’ compensation attorney for Bradford and Barthel’s Woodland Hills office. This entry from Bradford & Barthel's blog appears with permission.

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