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Senate Bill 1218 (Presley 1991)

Chapter 116, Statutes of 1991

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As enacted, Senate Bill 1218 affected numerous sections of the Business and Professions Code, Insurance Code, Labor Code, and Penal Code, relating to worker’s compensation insurance fraud.  (See Exhibit #1i)  Senator Robert Presley introduced the measure on March 8, 1991.  (See Exhibit #1a

The bill was referred to the Senate Committee on Industrial Relations and the Senate Committee on Judiciary to address policy concerns raised by the bill’s provisions.  (See Exhibits #2, #3 and #4)  The Senate Committee on Appropriations examined the bill’s fiscal impact.  (See Exhibit #2)  Senate Bill 1218 was amended five times in the Senate, on April 22, May 7, May 20, May 23, and June 4, 1991.  (See Exhibits #1b through #1f and #2)  The measure was unanimously approved by each Committee and by the Senate and was forwarded to the Assembly.  (See Exhibit #2

In the Assembly, Senate Bill 1218 was referred to the Committee on Insurance and the Committee on Public Safety to address policy concerns and the Committee on Ways and Means for fiscal concerns.  (See Exhibits #2, #8, #10, and #12)  Two amendments were made to the measure in the Assembly, on June 27 and July 10, 1991.  (See Exhibits #1g, #1h and #2)  Senate Bill 1218 was unanimously approved by the Assembly on July 12, 1991 and was returned to the Senate for concurrence in the Assembly’s amendments.  (See Exhibit #2)  Subsequent to legislative approval, Senate Bill 1218 was approved by Governor Pete Wilson on July 16th and was recorded by the Secretary of State on that date as Chapter 116 of the Statutes of 1991.  (See Exhibits #1i and #2

The Unfinished Business analysis prepared by the Office of Senate Floor Analyses described Senate Bill 1218 as last amended on July 10, 1991 as follows: 

. . . This bill attempts to reduce workers’ compensation fraud by, among other things, (1) making specified conduct related to workers' compensation claims a felony; (2) making the use of runners and cappers a misdemeanor or a felony, as specified; and (3) making specific prohibitions against false or misleading advertising of workers’ compensation-related services.

(See Exhibit #15, page 1)