What SB 536 does
An act to amend Section 1877.3 of the Insurance Code, relating to insurance.
Existing law makes it a misdemeanor or a felony to engage in specified acts of fraud or material misrepresentation for the purpose of obtaining or denying workers’ compensation, as specified. Existing law, the Workers’ Compensation Insurance Fraud Reporting Act (the act), requires insurers and licensed rating organizations to release upon request to an authorized governmental agency, as defined, relevant information deemed important to the authorized governmental agency that the insurer or licensed rating organization may possess relating to any specific workers’ compensation insurance fraud investigation. The act requires, under specified circumstances, an insurer or licensed rating organization to notify the local district attorney’s office and the Fraud Division of the Department of Insurance, and requires that entity, unless specified circumstances exist, to notify any other authorized governmental agency of suspected fraud, as specified. The act also requires the Employment Development Department (EDD) to release, upon written request, to an authorized governmental agency relevant information that the EDD may possess relating to any specific workers’ compensation insurance fraud investigation. The act requires, unless specified circumstances exist, an authorized governmental agency that is provided with information pursuant to those provisions to release or provide that information in a confidential manner to any other authorized governmental agency for purposes of investigation, prosecution, or prevention of insurance fraud or workers’ compensation fraud.
This bill would require an insurer or licensed rating organization to notify the EDD, in addition to the local district attorney’s office and Fraud Division on the Department of Insurance, of suspected fraud when the fraudulent act relates to premium fraud. The bill would authorize an insurer to submit wage records and employee counts for an employer to the EDD and would require the EDD to identify discrepancies in the submitted information, as specified, and report any discrepancies back to the submitting insurer. Upon request by an insurer, the bill would require the EDD to release or provide detailed payroll information, including payroll summary totals, allowing the requester to compare the records with the information they are otherwise entitled to receive from employers in workers’ compensation claims or pursuant to workers’ compensation policies, unless doing so would violate federal law or compromise an ongoing investigation. The bill would require the EDD to only provide the information if specified requirements are met, and the requesting insurer to reimburse the department’s actual, direct costs of releasing or providing this information. The bill would prohibit the provided documents from being used for specified purposes.
Existing federal regulations generally prohibit the disclosure of confidential unemployment compensation information unless disclosure is on the basis of, among other things, informed consent to an agent of an employer.
This bill would provide that by entering into a policy of workers’ compensation insurance with an insurer, an employer in California consents and designates that insurer as the employer’s agent to act for or in the place of the employer only with respect to a request for the above-described payroll information.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Summary from the Legislative Counsel's Digest of the amended assembly text, June 15, 2026. Read the full text on leginfo.
How it got here
Senator Archuleta introduced SB 536 on February 20, 2025. The text was amended 4 times, 2 in the Assembly and 2 in the Senate, and heard in 6 committee hearings before its final floor votes.
- Senate Floor, June 4, 2025: 39 ayes, 0 noes.
Committee votes along the way:
- Senate Labor, Public Employment and Retirement, April 23, 2025: Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations], 5-0.
- Senate Appropriations, May 12, 2025: Placed on suspense file, 7-0.
- Senate Appropriations, May 23, 2025: Do pass as amended, 6-0.
- Assembly Insurance, June 24, 2026: Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar, 17-0.
Who supports and opposes SB 536
The Assembly Insurance analysis dated June 23, 2026 lists 29 organizations in support and 0 in opposition. When Senate Committee on Labor, Public Employment and Retirement first listed positions on April 22, 2025, the count was 26 in support and 0 opposed. By the Assembly Insurance analysis of June 23, 2026 it was 29 to 0.
In support: American Property Casualty Insurance Association; African American Farmers of California; Almond Alliance; American Pistachio Growers; California Association of Joint Powers Authorities (CAJPA); California Association of Winegrape Growers; California Chamber of Commerce; California Citrus Mutual; and 21 more.
Read the Assembly Insurance analysis.
What happens next
It is in Assembly Appropriations. The last recorded action was on August 13, 2026.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for financial services organizations
This is the stage where language still changes. Amendments taken in committee are the ones that reach the Governor, so an organization with a stake in the drafting has a reason to be in that conversation now rather than after the vote.
The financial services group at Capitol Axis handles that for financial services clients.
Questions about SB 536
What does SB 536 do?
This bill would require an insurer or licensed rating organization to notify the EDD, in addition to the local district attorney’s office and Fraud Division on the Department of Insurance, of suspected fraud when the fraudulent act relates to premium fraud. The bill would authorize an insurer to submit wage records and employee counts for an employer to the EDD and would require the EDD to identify discrepancies in the submitted information, as specified, and report any discrepancies back to the submitting insurer. Upon request by an insurer, the bill would require the EDD to release or provid
Has SB 536 passed the California Legislature?
It is in Assembly Appropriations. The last recorded action was on August 13, 2026.
Who supports and opposes SB 536?
The Assembly Insurance analysis dated June 23, 2026 lists 29 organizations in support and 0 in opposition. Supporters include American Property Casualty Insurance Association; African American Farmers of California; Almond Alliance.
What happens next with SB 536?
It still has committee and floor votes ahead of it. Amendments taken now are the ones that reach the Governor, so this is the stage where language changes are still possible.