AB 1129

Under current law, if an insurer or self-insured employer has evidence that a

worker's compensation claim is false or fraudulent, the insurer or self-insured

employer must generally report the claim to the Department of Workforce

Development. If, based on the investigation, DWD has a reasonable basis to believe

that criminal insurance fraud has occurred, DWD must refer the matter to the

district attorney for prosecution. Also under current law, DWD may request

assistance from the Department of Justice to investigate false or fraudulent activity

related to a worker's compensation claim. If, based on that investigation, DWD has

a reasonable basis to believe that theft, forgery, fraud, or any other criminal violation

has occurred, DWD must refer the matter to the district attorney or DOJ for

prosecution. The bill extends these requirements to insurers who have evidence that

an application for worker's compensation insurance coverage is fraudulent or that

an employer has committed fraud by misclassifying employees to lower the

employer's worker's compensation insurance premiums.

Because this bill creates a new crime or revises a penalty for an existing crime,

the Joint Review Committee on Criminal Penalties may be requested to prepare a

report.