As part of the implementation of last year's California Workers' Compensation reform bill, SB863, the Division of Workers' Compensation (DWC) issued a number of emergency administrative rules in the final hours of 2012, just in advance of the January 1, 2013 effective date of the legislation. Workers' compensation stakeholders have been operating under those rules since that time. However, since emergency regulations, by their very nature, expire after 180 days, the administrative agency must undertake final rule-making within that timeframe, and/or request a 90-day re-adoption (i.e., extension) of the emergency rules before the expiration of the 180-day timeframe. The Office of Administrative Law (OAL) is the state agency tasked with approving or disapproving requests for emergency regulations, including requests for re-adoptions.

On June 12, 2013, the California Division of Workers' Compensation (DWC) issued a memo indicating its intention to file for re-adoption of the emergency regulations for all six sets of emergency regulations: supplemental job displacement benefit vouchers, interpreter services, qualified medical evaluator regulations, independent medical review (IMR), independent bill review (IBR) and lien filing fee regulations, which are currently due to expire on July 2, 2013.   A copy of the DIR memo can be found here: http://www.dir.ca.gov/dwc/dwc_newslines/2013/Newsline_38-13.pdf.

On June 20, 2013, formal applications for re-adoptions of the emergency regulations were received by the OAL: http://www.oal.ca.gov/Emergency_Regulations_Under_Review.htm. Procedurally, the OAL must generally allow 5 days to receive public comment on the proposed regulations prior to undertaking review of the request. In considering the request for the re-adoption, the OAL will examine whether the DWC has made "...substantial progress and proceeded with diligence to complete a regular, noticed rulemaking action to make the regulations permanent...," in accordance with the California Government Code. If granted, the emergency regulations will remain in effect until Oct. 1, unless another 90-day re-adoption is requested. The OAL may permit up to two (2) 90-day re-adoptions.

Based on the procedural history seen thus far, it is anticipated that the OAL will grant the 90-day extension of the emergency regulations. In the interim, we can expect to see the Division taking further action towards implementation of finalized regulations, potentially including issuance of revised proposed regulations and/or additional public comment periods.