States / California / AB 1398

AB 1398 Enacted

Workers' compensation.

Introduced
In Committee
Floor
Crossed Over
Passed
Enacted

Existing law establishes a workers' compensation system, administered by the Administrative Director of the Division of Workers' Compensation, to compensate an employee, as defined, for injuries sustained in the course of employment. Existing law provides that it is unlawful for a physician to refer a person for specified medical goods or services whether for treatment or medical-legal purposes if the physician or their immediate family has a financial interest with the person or in the entity that receives the referral, except in prescribed circumstances. Existing law requires all interested parties, as defined, to disclose any financial interest in any entity providing services.

A violation of these provisions is a misdemeanor.

This bill would require all interested parties to provide written disclosure of their financial interest, if any, to a third-party payer or other entity to whom a claim for payment is presented for services furnished pursuant to a referral. By changing the definition of a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Chamber
House
Introduced
Feb 21, 2025
Last action
Oct 11, 2025 — Chaptered by Secretary of State - Chapter 640, Statutes of 2025.
Session
20252026
Momentum
84 · Very high