BILL NUMBER: SB 936	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 4, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2007
	AMENDED IN SENATE  APRIL 25, 2007

INTRODUCED BY   Senator Perata

                        FEBRUARY 23, 2007

   An act to amend Section 4658 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 936, Perata. Workers' compensation: permanent disability
schedule.
   Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an employee for injuries
sustained in the course of his or her employment. Existing law
requires the payment of disability benefits to eligible individuals
for injuries sustained in the course of employment that cause
permanent disability, and specifies that the amount of those payments
be computed in accordance with a prescribed formula.
   This bill would revise the formula for computing those payments
for injuries causing permanent disability, which occur on or after
January 1, 2008, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) In enacting Assembly Bill 227 (Chapter 635 of the Statutes of
2003), Senate Bill 228 (Chapter 639 of the Statutes of 2003), and
Senate Bill 899 (Chapter 34 of the Statutes of 2004), it was the
intent of the Legislature to create a workers' compensation system
that is fair to all parties involved.
   (b) Ensuring that permanently disabled workers receive fair
compensation is a high priority of the Legislature.
   (c) Until we know the full effect workers' compensation reform has
had on the workers' compensation system in general, and permanently
disabled workers in particular, we should ensure that permanently
disabled workers receive adequate benefits.
   (d) In ensuring adequate benefit levels to permanently disabled
workers, it is not the intent of the Legislature to undermine the
positive effect workers' compensation reform has had on California's
employers and workers.
  SEC. 2.  Section 4658 of the Labor Code is amended to read:
   4658.  (a) For injuries occurring prior to January 1, 1992, if the
injury causes permanent disability, the percentage of disability to
total disability shall be determined, and the disability payment
computed and allowed, according to paragraph (1). However, in no
event shall the disability payment allowed be less than the
disability payment computed according to paragraph (2).
   (1)
                            Column 2--Number of
                                   weeks
                           for which two-thirds
                                    of
                              average weekly
                                 earnings
Column 1-                  allowed for each 1
-Range                           percent
of percentage                 of permanent
                                disability
of
permanent                   within percentage
disability incurred:             range:
   Under 10..............            3
   10-19.75..............            4
   20-29.75..............            5
   30-49.75..............            6
   50-69.75..............            7
   70-99.75..............            8


   The number of weeks for which payments shall be allowed set forth
in column 2 above based upon the percentage of permanent disability
set forth in column 1 above shall be cumulative, and the number of
benefit weeks shall increase with the severity of the disability. The
following schedule is illustrative of the computation of the number
of benefit weeks:
Column 1-
-                          Column 2-
Percentage                     -
of                        Cumulative
permanent                   number
disability                    of
incurred:               benefit weeks:
   5...................       15.00
  10...................       30.25
  15...................       50.25
  20...................       70.50
  25...................       95.50
  30...................      120.75
  35...................      150.75
  40...................      180.75
  45...................      210.75
  50...................      241.00
  55...................      276.00
  60...................      311.00
  65...................      346.00
  70...................      381.25
  75...................      421.25
  80...................      461.25
  85...................      501.25
  90...................      541.25
  95...................      581.25
  100..................     for life


   (2) Two-thirds of the average weekly earnings for four weeks for
each 1 percent of disability, where, for the purposes of this
subdivision, the average weekly earnings shall be taken at not more
than seventy-eight dollars and seventy-five cents ($78.75).
   (b) This subdivision shall apply to injuries occurring on or after
January 1, 1992. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed, according to paragraph
(1). However, in no event shall the disability payment allowed be
less than the disability payment computed according to paragraph (2).

   (1)
                            Column 2--Number of
                                   weeks
                           for which two-thirds
                                    of
                              average weekly
                                 earnings
Column 1-                  allowed for each 1
-Range                           percent
of percentage                 of permanent
                                disability
of
permanent                   within percentage
disability incurred:             range:
   Under 10..............            3
   10-19.75..............            4
   20-24.75..............            5
   25-29.75..............            6
   30-49.75..............            7
   50-69.75..............            8
   70-99.75..............            9


   The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
   (2) Two-thirds of the average weekly earnings for four weeks for
each 1 percent of disability, where, for the purposes of this
subdivision, the average weekly earnings shall be taken at not more
than seventy-eight dollars and seventy-five cents ($78.75).
   (c) This subdivision shall apply to injuries occurring on or after
January 1, 2004. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed as follows:
                            Column 2--Number of
                                   weeks
                           for which two-thirds
                                    of
                              average weekly
                                 earnings
Column 1-                  allowed for each 1
-Range                           percent
of percentage                 of permanent
                                disability
of
permanent                   within percentage
disability incurred:             range:
   Under 10..............            4
   10-19.75..............            5
   20-24.75..............            5
   25-29.75..............            6
   30-49.75..............            7
   50-69.75..............            8
   70-99.75..............            9


   The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
   (d) (1) This subdivision shall apply to injuries occurring on or
after the effective date of the revised permanent disability schedule
adopted by the administrative director pursuant to Section 4660. If
the injury causes permanent disability, the percentage of disability
to total disability shall be determined, and the basic disability
payment computed as follows:
                            Column 2--Number of
                                   weeks
                           for which two-thirds
                                    of
                              average weekly
                                 earnings
Column 1-                  allowed for each 1
-Range                           percent
of percentage                 of permanent
                                disability
of
permanent                   within percentage
disability incurred:             range:
   0.25-9.75.............            3
   10-14.75..............            4
   15-24.75..............            5
   25-29.75..............            6
   30-49.75..............            7
   50-69.75..............            8
   70-99.75..............           16


   The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
   (2) If, within 60 days of a disability becoming permanent and
stationary, an employer does not offer the injured employee regular
work, modified work, or alternative work, in the form and manner
prescribed by the administrative director, for a period of at least
12 months, each disability payment remaining to be paid to the
injured employee from the date of the end of the 60-day period shall
be paid in accordance with paragraph (1) and increased by 15 percent.
This paragraph shall not apply to an employer that employs fewer
than 50 employees.
   (3) (A) If, within 60 days of a disability becoming permanent and
stationary, an employer offers the injured employee regular work,
modified work, or alternative work, in the form and manner prescribed
by the administrative director, for a period of at least 12 months,
and regardless of whether the injured employee accepts or rejects the
offer, each disability payment remaining to be paid to the injured
employee from the date the offer was made shall be paid in accordance
with paragraph (1) and decreased by 15 percent.
   (B) If the regular work, modified work, or alternative work is
terminated by the employer before the end of the period for which
disability payments are due the injured employee, the amount of each
of the remaining disability payments shall be paid in accordance with
paragraph (1) and increased by 15 percent. An employee who
voluntarily terminates employment shall not be eligible for payment
under this subparagraph. This paragraph shall not apply to an
employer that employs fewer than 50 employees.
   (4) For compensable claims arising before April 30, 2004, the
schedule provided in this subdivision shall not apply to the
determination of permanent disabilities when there has been either a
comprehensive medical-legal report or a report by a treating
physician, indicating the existence of permanent disability, or when
the employer is required to provide the notice required by Section
4061 to the injured worker.
   (e) This subdivision shall apply to injuries occurring on or after
January 1, 2008. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed as follows:
                         Column 2--Number of weeks
                          for which two-thirds of
Column 1-                average weekly earnings
-Range
of percentage           allowed for each 1 percent
of permanent             of permanent disability
disability incurred:     within percentage range:
            0-9.75                   4
          10-14.75                   5
          15-24.75                   7
          25-29.75                   8
          30-49.75                   9
          50-69.75                   11
          70-99.75                   21


   The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
   (f) This subdivision shall apply to injuries occurring on or after
January 1, 2009. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed as follows:
                         Column       2--Number of
                                   weeks
                          for which two-thirds of
Column 1-                average weekly earnings
-Range
of percentage           allowed for each 1 percent
of permanent             of permanent disability
disability incurred:     within percentage range:
            0-9.75                   5
          10-14.75                   7
          15-24.75                   8
          25-29.75                   10
          30-49.75                   12
          50-69.75                   13
          70-99.75                   27


   The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).
   (g) This subdivision shall apply to injuries occurring on or after
January 1, 2010. If the injury causes permanent disability, the
percentage of disability to total disability shall be determined, and
the disability payment computed and allowed as follows:
                         Column 2--Number of weeks
                          for which two-thirds of
Column 1-                average weekly earnings
-Range
of percentage           allowed for each 1 percent
of permanent             of permanent disability
disability incurred:     within percentage range:
            0-9.75                   6
          10-14.75                   8
          15-24.75                   10
          25-29.75                   12
          30-49.75                   14
          50-69.75                   16
          70-99.75                   32


   The numbers set forth in column 2 above are based upon the
percentage of permanent disability set forth in column 1 above and
shall be cumulative, and shall increase with the severity of the
disability in the manner illustrated in subdivision (a).