SB 536: Workers’ compensation insurance fraud reporting.

The proposed law requires insurers and licensed rating organizations to report suspected workers' compensation insurance fraud to the employment development department, in addition to the local district attorney's office and the fraud division on the department of insurance. This reporting is specifically for cases involving premium fraud. The employment development department will then release detailed payroll information to the requesting party upon written request, allowing them to compare records with information they are otherwise entitled to receive from employers. However, the department will only provide this information if specified requirements are met and the requesting party will reimburse the department's actual, direct costs. The provided documents cannot be used for certain purposes, such as prosecution or prevention of insurance fraud. The law also requires legislative f…