Bill
A 8429
Establishes a Fraud Assessment Commission and a dedicated Workers’ Compensation Fraud Investigation Fund funded by a new assessment to finance fraud investigations and enforcement.
Status snapshot
- Introduced: May 15, 2025
- Latest actions: Amended and progressed through committee; substituted by S7950A (6/13/2025). Reported to Rules and ordered to third reading (Calendar No. 755).
- Companions: S7950 / S7950A
Purpose
- The bill creates a statutory framework to fund and coordinate investigations into workers’ compensation fraud by establishing a fraud assessment commission, imposing a dedicated assessment to finance fraud investigations, and creating a Workers’ Compensation Fraud Investigation Fund to receive and disburse those monies. The intent is to provide a stable revenue stream for investigation and enforcement activities aimed at preventing, detecting, and prosecuting fraudulent workers’ compensation claims.
Key provisions (summary)
- Creation of a Fraud Assessment Commission
- Establishes a commission (membership, appointment process, and basic duties would be defined in the bill text) charged with setting and overseeing assessments used to fund fraud investigations and related activities.
- Commission responsibilities likely include recommending assessment rates, establishing collection procedures, overseeing the fund, and setting program priorities.
- Assessment for workers’ compensation fraud investigations
- Authorizes a periodic assessment (levy) to be collected from specified parties — typically insurers, self-insured employers, or other premium payors in the workers’ compensation system — to fund investigations.
- Establishes rules for calculation, collection, reporting, and enforcement of the assessment (specific rate/structure not provided here; see bill text/companion for details).
- Workers’ Compensation Fraud Investigation Fund
- Creates a dedicated fund to receive assessment revenue.
- Fund proceeds are earmarked to pay for investigation activities, staffing, contract investigators, training, data systems, and possibly administrative costs and reimbursements to other agencies performing investigations.
- Enforcement and compliance
- Includes mechanisms for nonpayment penalties, audits, and reporting requirements for assessed entities.
- May provide for interagency cooperation, grant reimbursements, and confidentiality or information-sharing rules for investigations.
- Oversight and reporting
- Requires regular reporting to the Legislature or executive oversight entities on fund balances, expenditures, outcomes (e.g., cases opened, prosecutions, recoveries), and assessment impacts.
Who would be affected
- Employers and insurers: Entities that pay workers’ compensation premiums or are self-insured may be subject to the assessment, which could increase their costs.
- State investigative and enforcement entities: Agencies that handle workers’ compensation fraud investigations (state inspectors, prosecutors) would receive funding and possibly new statutory authorities or coordination roles.
- Injured workers and claimants: Better-funded investigations could reduce fraud but may also affect claims processing or lead to increased scrutiny of legitimate claims.
- Taxpayers/general fund: The structure seeks to be self-funded via assessments, limiting direct general fund impact; however, administrative or transitional costs could have fiscal implications.
Potential fiscal and operational impacts
- Creates a dedicated revenue stream to expand or stabilize fraud investigation activity; potential long-term savings if fraud is reduced.
- Short- to medium-term compliance costs for assessed entities; potential modest administrative costs for state agencies to implement collection and oversight.
- The exact fiscal impact depends on assessment rate, exemptions, and program size (details in bill text or S7950A).
Legislative procedure and next steps
- Referred to the Assembly Labor Committee (5/15/2025), then to Ways and Means with amendments and print numbers 8429A/8429B (5/22 and 6/9/2025). Reported to Rules and substituted by S7950A (6/13/2025). S7950A is the companion/substitute version now advancing in the Senate/Assembly process; further floor action and final passage will determine enactment.
- If enacted, the bill likely specifies an effective date and transitional implementation steps (see final text for timing).
Where to find the full text and updates
- For exact language (assessment rate, commission composition, enforcement specifics, effective dates), consult the bill text for A8429, its printed amendments (8429A/8429B), and the substitute S7950A on the Legislature’s online bill tracker.
Compiled from official sources — confirm details with the bill’s official record.
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