Senate Bill 863 was passed by the California Legislature on August 31, 2012 and signed into law by Governor Jerry Brown shortly thereafter. The bill has been touted as a compromise between employers and employees to enact an increase in Permanent Disability benefits along with changes regarding medical treatment guidelines, disputes, and fee schedules. In this white paper, I’ve outlined the pertinent points in the initial analysis of the bill, of which most aspects are expected to become law as of January 1, 2013. Note, the specific regulations have not been developed as of yet. Once in place, they will act as a guide to assist in implementation of the changes.