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ASSEMBLY BILL 2192 (CHAVEZ – 2002)

CHAPTER 879, STATUTES OF 2002 AB 2192

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Insurance Code section 11752.7, relating to licensed worker’s compensation rating organizations, was the only section amended and affected with the passage of Assembly Bill 2192 of 2002.  (See Exhibits #1a through #1f)  Assembly member Ed Chavez introduced this measure on February 20, 2002 on behalf of the Insurance Agents and Brokers Legislative Council.  (See Exhibits #1a, and #13, document PE-2)

Assembly Bill 2192 was assigned to the Assembly Committee on Insurance and the Senate Committee on Labor and Industrial Relations where policy issues raised by the bill were considered.  (See Exhibits #3 and #7)  Five amendments were made to Assembly Bill 2192.  (See Exhibits #1b through #1f and #2)  Subsequent to legislative approval, Governor Gray Davis signed the bill on September 25, 2002 and it was recorded by the Secretary of State on September 26th as Chapter 879 of the Statutes of 2002.  (See Exhibit #1g)

A summary of Assembly Bill 2192, as last amended on August 22, 2002, was provided as follows in the Office of Senate Floor Analyses Third Reading analysis:

This bill provides that a licensed rating organization (Workers’ Compensation Insurance Rating Bureau) may not enter into a contract or other agreement that prohibits information service companies in the business of publishing or providing experience rating information to receive and provide to other experience rating information, as specified.

(See Exhibit #9b, page 1)