On September 26, 2017 Governor Brown passed AB 1422, which became effective on January 1, 2018.

AB 1422 bridges the gaps in SB 1160 and AB 1244 by including entities that have controlling interests by a Director, Officer or 10% shareholder that has been indicted or convicted of a felony or misdemeanor involving fraud or abuse in the Medicare, Medi-Cal or workers’ compensation system. 

“AB 1422 confirms that the Workers’ Compensation Appeals Board retains jurisdiction to resolve disputes about the applicability of the automatic stay provision to specific liens. This bill is declaratory of existing law which provides for the resolution of these disputes through the Board’s current practices and procedures. Nothing in last year’s legislation creating the stay was intended, or operated, to divest the Board from jurisdiction over these issues.”

Official Letter from Governor Brown Re: AB1422