BILL ANALYSIS AB 586 Page 1 Date of Hearing: May 20, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 586 (Huber) - As Amended: May 7, 2009 Policy Committee: Insurance Vote:7-2 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill expands workers' compensation presumptions for cancer, hernia, pneumonia, heart trouble, tuberculosis, blood-borne infectious diseases, meningitis, and methicillin-resistant Staphylococus aureus skin infection (MRSA, staph infections) to include UC and CSU peace officers, and modifies several Labor Code references to ensure compensability is driven by professional classification, rather than employer designation. FISCAL EFFECT Cumulative costs of millions of GF dollars, combined, to several dozen CSU, UC, and UC medical center campuses to the extent this bill increases future workers' compensation costs for the payment of full hospital, surgical, medical treatment, disability indemnity, and death benefits for numerous presumptions regarding cardiovascular, cancer, and blood-borne disease. Most public agencies are self-insured for workers' compensation claims, rather than paid through premiums. Payments are treated in a pay as you go manner. Therefore, any increase in costs has a direct impact on public funds. COMMENTS 1)Rationale . This bill is sponsored by the Police Officers Research Association of California (PORAC), which represents rank and file peace officers. Under current law, a variety of public safety officers derive a workers' compensation presumption by employer, rather than by professional AB 586 Page 2 classification. This bill ensures UC and CSU peace officers have access to the same workers' compensation presumptions as other peace officers and also modifies labor codes so the classification of peace officer drives the presumption, not the status of the employer. 2)Presumptions . California 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)Related Legislation . AB 664 (Skinner), also being heard in this committee today, establishes several workers' compensation presumptions for more than 500,000 employees at hospitals statewide. AB 128 (Coto), pending on the Suspense File of this committee, 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. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081