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CA AB1422
Bill
AI Summary
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Expands automatic stay requirements for liens filed by physicians, practitioners, or providers charged with fraud-related crimes involving federal Medicare/Medicaid, Medi-Cal, or workers' compensation systems to also include entities controlled by such individuals.
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Requires automatic stays to remain in effect after conviction until commencement of lien consolidation procedures, with presumption that liens arise from criminal or fraudulent conduct unless rebutted by preponderance of evidence.
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Authorizes administrative director to suspend from workers' compensation system any entity controlled by individuals convicted of specified fraud crimes, and expands suspension criteria to include financial crimes relating to federal Medicaid program.
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Requires administrative director to adopt regulations defining "control" as holding 10 percent or greater shareholder interest, officer, or director position in an entity, and allows exemptions that do not serve as basis for exclusion.
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Establishes special lien consolidation proceedings for adjudication of pending liens from suspended providers, with administrative director appointing special lien proceeding attorney to identify affected liens across district offices.
Legislative Description
Workers’ compensation insurance: fraud.
Last Action
Chaptered by Secretary of State - Chapter 300, Statutes of 2017.
9/26/2017