AB 586

Under current law, if a governmental unit provides public assistance to pay

medical costs or living expenses related to a claim for worker's compensation and if

the governmental unit has given the parties to the claim written notice stating that

it provided the assistance and the amount of the assistance provided, the employer

or insurance carrier owing the worker's compensation is required to reimburse the

governmental unit for the amount of the assistance provided or for two-thirds of the

amount of the worker's compensation award remaining after deduction of attorney

fees and other fees and costs payable under the worker's compensation law (costs and

attorney fees), whichever is less.

This bill requires an employer or insurance carrier owing worker's

compensation to reimburse a governmental unit that provides public assistance to

pay medical costs occasioned by an injury for which worker's compensation is

claimed, and that provides

a party

to the claim written notice stating that it provided

the assistance and

an itemized statement

of the amount of assistance provided, as

follows:

1. For the amount of public assistance the governmental unit provided or for

the amount of the liability of the employer or insurance carrier for medical costs

under the worker's compensation law (without deducting costs and attorney fees),

whichever is less, if the award or payment results from a hearing on the claim or from

a default.

2. For the amount of public assistance the governmental unit provided, for

two-thirds of the amount of the worker's compensation award (without deducting

costs and attorney fees), or for an amount agreed to by the governmental unit,

whichever is less, if the award or payment results from a compromise or stipulation.

The bill also requires a governmental unit that receives reimbursement as

provided in the bill to pay to any attorney or other representative of an injured

employee who obtained the worker's compensation award from which the

reimbursement is made 20 percent of the amount of reimbursement recovered for the

governmental unit.