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California mulls anti-fraud unit within comp division

California mulls anti-fraud unit within comp division

California lawmakers are slated to hear the details on a proposed law that would create an anti-fraud division within the state’s Division of Workers’ Compensation, according to updates posted on the state’s website that tracks bills. 

A Committee on Insurance hearing is slated for April 19 on Assembly Bill 1697, which would amend the state’s labor code to better tackle workers comp fraud in the state. 

According to the text of the bill to create an anti-fraud unit within the department, the state’s labor code would be amended to read: “The administrative director shall establish an anti-fraud support unit within the division. The unit shall perform all of the following duties: (a) Coordinate and advance anti-fraud activities for the division; (b) Serve as the point of contact between the division and other agencies and entities engaged in anti-fraud activities; (c) Act as the repository and clearinghouse for data on anti-fraud activities; (d) Ensure the efficient sharing of data among the division, other agencies, and other entities engaged in anti-fraud activities; (e) Research fraud in the workers’ compensation system.

A.B. 1697 was introduced by 10 lawmakers, including Assemblyman Tom Daly, D-Anaheim, chairman of the Committee on Insurance who in March requested that the state’s Joint Legislative Audit Committee investigate the state’s system to prevent, detect and prosecute fraud — an audit that office says is now underway and will be completed by 2018.

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