BILL ANALYSIS
AB 128
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Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 128 (Coto) - As Introduced: January 16, 2009
Policy Committee: InsuranceVote:7-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a life-time workers' compensation cancer
presumption for public safety professionals (e.g.: fire
firefighters, police officers, highway patrol) with substantial
years of service credit. This bill eliminates a five-year cap
imposed following termination of employment, on a workers'
compensation cancer presumption for tens of thousands of public
safety personnel statewide. Specifically, this bill:
1)Eliminates a current law five-year cap on the cancer
presumption following termination of service. The cancer
presumption means a current or former employee of hundreds of
state and local firefighting and law enforcement agencies who
is diagnosed with or dies of cancer receives the following
benefits:
a) Full hospital
b) Surgical
c) Medical treatment
d) Disability indemnity
e) Death benefits
2)Eliminates a current law requirement that extends three months
of presumption for each year of service and replaces this
provision with eligibility of one year of presumption for each
year of service.
FISCAL EFFECT
1)Major one-time and on-going costs to state and local
government, potentially of billions of dollars. For state
employees such as the California Highway Patrol, the
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California Department of Forestry and Fire Protection, the
University of California, and a variety of peace officers,
costs created by this bill are 100% GF.
The cost of benefits that will accrue to individuals under this
cancer presumption range from several thousands of dollars to
$300,000 to $500,000 per claim . These costs reflect less
serious diagnosis and treatment and major treatment, indemnity
benefits, and payments to eligible spouses and dependents upon
death of an eligible individual. More than 20,000 state-funded
law enforcement and firefighting personnel could eventually be
made eligible for the cancer presumption contained in this
bill. If 10% of this workforce eventually drew on the benefits
established by this bill at a cost of $200,000 each, costs
will increase by $300 million (100% GF).
2)This bill creates new benefits for thousands of retired
professionals for a leading cause of death, regardless of
workplace exposures. Under current law, the presumption is
capped at five years after retirement. By eliminating this
cap, this bill establishes a secondary life insurance policy
for professionals without regard to a myriad of other cancer
risks.
3)Cancer is a leading cause of death for individuals over 55
years of age and explains about one-third of deaths of the
retired professionals addressed by this bill. There are
several dozen major kinds of cancer with different risk
factors. For example, several cancers such as melanoma,
colorectal, and breast cancer have specific genetic risk for
which individuals can be tested. Many cancers, however, are
attributable to factors such as smoking, obesity, and sun
exposure. In addition, most research does not support a strong
association between cancer and workplace exposures.
4)Professionals with many years of service are likely to have
already accrued significant lifetime cash pension and health
benefits through their prior service. In the case of health
benefits, the health benefits provided through this bill will
create a significant increases in GF administrative costs. The
administrative costs in the workers' compensation system are
three times the amount of the benefit provided, so for each
dollar of health care delivered, $3 is spent on
administration, as compared to 25 cents per dollar in group
retiree health coverage.
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COMMENTS
1)Rationale . This bill is sponsored by the California
Professional Firefighters (CPF) to establish a lifetime
workers' compensation cancer presumption for tens of thousands
professionals statewide. CPF represents more than 30,000
professionals statewide. According to the author and sponsor,
firefighters have routine exposure to carcinogens in the
course of their work. Under current law, some firefighters are
diagnosed with cancer when past the 5-year cap after
retirement and unable to access the presumption addressed in
this bill.
2)Presumptions . California workers compensation law provides
that workers are provided compensation benefits when an injury
or illness arises out of and in the course of employment.
Current law specifies that certain medical conditions suffered
by public safety officers (e.g., cancer, hernia, heart
trouble, pneumonia, tuberculosis, blood-borne infectious
disease, meningitis, and exposure to biochemical substances)
are presumed to have arisen in the course of employment. The
purpose of these statutory presumptions is to provide
additional compensation benefits to employees who provide
vital and hazardous services by easing their burden of proof
of industrial causation.
3)Recent Meta Analysis of Cancer Presumption Laws . A study
commissioned by the National League of Cities and completed by
a private firm specializing in public safety research and
analysis was published in April 2009. The study addressed
cancer presumption laws enacted in 43 states, including
California. Overall, researchers concluded a lack of evidence
to confirm or deny linkages between firefighting and increased
risk for more than a dozen specific cancers. Studies focused
on fire fighting are too few and too small to draw reliable
conclusions. In addition, an evaluation of state laws found
wide variability in cancer presumptions, cancers addressed,
and eligibility requirements.
4)Concerns . Dozens of city and county agencies strongly oppose
this bill. According to opponents, public entities that employ
safety officers already face a nearly impossible burden in
attempting to defend presumption claims. In addition, the
opposition is alarmed at the fiscal burden this bill creates
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by lifting the five-year presumption cap. For example,
opposition indicates this bill would allow a police officer
who begins work at age 25 and works for 30 years to file a
cancer claim with the benefit of a presumption until age 85.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081