All Roll Calls
Yes: 168 • No: 0
CaliforniaAB 13982025-2026 Regular SessionHouseWALLET
Workersâ compensation.
Sponsored By: Avelino Valencia (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
Fines and crimes for illegal referrals
Breaking these rules is a misdemeanor. Corporate directors or officers who knowingly take part are also guilty. Civil penalties can reach $15,000 per offense. Attorney violations are sent to the State Bar. Any workers’ comp eligibility decision based on an illegal referral is void.
No pay-for-referral deals in workers' comp
The law bans referrals where the referrer has a financial stake in the provider and the bill is paid by workers' comp. Claims administrators and network service providers are exempt when allowed by other law. It also bans kickbacks, cross-referrals, rebates, or discounts used to get referrals. No one may bill for services from a prohibited referral. Insurers and other payers cannot knowingly pay those charges.
Safe harbors and allowed referrals
The law sets safe harbors so normal deals are not treated as bad financial interests. Loans with commercially reasonable terms, interest at or above prime, adequate security, and terms not tied to referrals are allowed. Written space or equipment leases for at least one year with fixed rent not tied to referrals are allowed. Owning publicly traded securities bought on public terms is allowed. The referral ban also does not cover services done by an employee as part of their job, legal referrals allowed by State Bar rules, or physician referrals already exempt under Section 139.31.
Disclose financial ties on workers' comp claims
When a claim comes from a referral, the party submitting it must disclose in writing any financial interest in the provider at the time of billing. The rules apply to injured workers, employers and their insurers, claims administrators, attorneys, agents, and medical providers. Covered services include disability ratings, future earnings exams, medical bill review, copying, interpreters, medical products, transport, and utilization review. A financial interest includes ownership, loans, leases, pay, discounts, and any payments tied to referral volume.
Sponsors & Cosponsors
Sponsor
Avelino Valencia
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 9/4/2025
Item 464 — Senate SFLOOR
Yes: 39 • No: 0
legislature vote • 8/29/2025
Vote in CS61
Yes: 7 • No: 0
legislature vote • 8/18/2025
Vote in CS61
Yes: 7 • No: 0
legislature vote • 7/9/2025
Vote in CS56
Yes: 5 • No: 0
House vote • 6/3/2025
Item 129 — Assembly AFLOOR
Yes: 79 • No: 0
legislature vote • 5/23/2025
Vote in CX25
Yes: 14 • No: 0
legislature vote • 4/23/2025
Vote in CX28
Yes: 17 • No: 0
Actions Timeline
Chaptered by Secretary of State - Chapter 640, Statutes of 2025.
10/11/2025SenateApproved by the Governor.
10/11/2025legislatureEnrolled and presented to the Governor at 4:30 p.m.
9/15/2025legislatureIn Assembly. Ordered to Engrossing and Enrolling.
9/4/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2524.).
9/4/2025SenateOrdered to special consent calendar.
9/2/2025SenateRead second time. Ordered to third reading.
8/29/2025SenateFrom committee: Do pass. (Ayes 7. Noes 0.) (August 29).
8/29/2025SenateIn committee: Referred to suspense file.
8/18/2025SenateFrom committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (July 9). Re-referred to Com. on APPR.
7/9/2025SenateReferred to Com. on L., P.E. & R.
6/18/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
6/4/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1994.)
6/3/2025HouseRead second time. Ordered to third reading.
5/27/2025HouseFrom committee: Do pass. (Ayes 14. Noes 0.) (May 23).
5/23/2025HouseIn committee: Set, first hearing. Referred to APPR. suspense file.
5/14/2025HouseRe-referred to Com. on APPR.
4/28/2025HouseRead second time and amended.
4/24/2025HouseFrom committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 23).
4/23/2025HouseReferred to Com. on INS.
3/13/2025HouseRead first time.
2/24/2025HouseFrom printer. May be heard in committee March 24.
2/22/2025HouseIntroduced. To print.
2/21/2025House
Bill Text
Chaptered
10/11/2025
Enrolled
9/8/2025
Amended Assembly
4/24/2025
Introduced
2/21/2025