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