AB-1398 • 2026

Workers’ compensation.

Crime Education Healthcare Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Valencia
Last action: 2025-10-11
Official status: Chaptered by Secretary of State - Chapter 640, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details on enforcement mechanisms or effective dates, leaving these aspects uncertain.

Workers' Compensation Financial Disclosure

AB-1398 requires individuals with financial interests in entities providing services related to workers’ compensation claims to disclose these interests in writing to third-party payers or other relevant entities.

What This Bill Does

Requires interested parties to provide written disclosure of their financial interest, if any, when a claim for payment is made.
Changes existing law by making it mandatory to disclose financial interests in writing.

Who It Names or Affects

People involved in workers’ compensation claims, such as physicians and other interested parties.
Third-party payers or entities receiving payment claims for services provided under referrals.

Terms To Know

Interested Parties: Individuals who have a financial interest in any entity providing services related to workers’ compensation claims.
Third-Party Payer: An organization or individual that pays for the medical expenses of another person, such as an insurance company or employer.

Limits and Unknowns

The bill does not specify a clear effective date.
It is unclear how strictly this new requirement will be enforced by local agencies.

Bill History

2025-10-11 California Legislative Information
Chaptered by Secretary of State - Chapter 640, Statutes of 2025.
2025-10-11 California Legislative Information
Approved by the Governor.
2025-09-15 California Legislative Information
Enrolled and presented to the Governor at 4:30 p.m.
2025-09-04 California Legislative Information
In Assembly. Ordered to Engrossing and Enrolling.
2025-09-04 California Legislative Information
Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2524.).
2025-09-02 California Legislative Information
Ordered to special consent calendar.
2025-08-29 California Legislative Information
Read second time. Ordered to third reading.
2025-08-29 California Legislative Information
From committee: Do pass. (Ayes 7. Noes 0.) (August 29).
2025-08-18 California Legislative Information
In committee: Referred to suspense file.
2025-07-09 California Legislative Information
From 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.
2025-06-18 California Legislative Information
Referred to Com. on L., P.E. & R.
2025-06-04 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-03 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1994.)
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-14 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-04-28 California Legislative Information
Re-referred to Com. on APPR.
2025-04-24 California Legislative Information
Read second time and amended.
2025-04-23 California Legislative Information
From 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).
2025-03-13 California Legislative Information
Referred to Com. on INS.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1398, Valencia.
Workers’ compensation.
Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee, as defined, for injuries sustained in the course of employment. Existing law provides that it is unlawful for a physician to refer a person for specified medical goods or services whether for treatment or medical-legal purposes if the physician or their immediate family has a financial interest with the person or in the entity that receives the referral, except in prescribed circumstances. Existing law requires all interested parties, as defined, to disclose any financial interest in any entity providing services. A violation of these provisions is a misdemeanor.
This bill would require all interested parties to
provide written disclosure of their financial interest, if any, to a third-party payer or other entity to whom a claim for payment is presented for services furnished pursuant to a referral. By changing the definition of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

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