BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1227|
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THIRD READING
Bill No: AB 1227
Author: Feuer (D)
Amended: 6/15/09 in Senate
Vote: 21
SENATE LABOR & INDUST. RELATIONS COMMITTEE : 5-1, 6/25/09
AYES: DeSaulnier, Wyland, Ducheny, Leno, Yee
NOES: Hollingsworth
ASSEMBLY FLOOR : 48-28, 5/18/09 - See last page for vote
SUBJECT : Workers compensation: public employees:
leaves of
absence
SOURCE : California Professional Firefighters
Police Officers Research Association of
California
DIGEST : This bill, relating to workers compensation,
removes the restriction on one-year leave of absence with
full salary (4850 time) that provides that only specified
safety employees who are members of certain pension plans
are eligible.
ANALYSIS :
Existing law:
1. Establishes a comprehensive system of workers'
CONTINUED
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compensation that provides a range of benefits for
employees who are injured on the job. These benefits
include temporary disability payments, which are
designed to be wage replacement payments for the period
the injured employee is temporarily unable to work due
to the on-the-job injury. Temporary disability benefits
are intended to replace two-thirds of the employee's
regular wages, subject to a maximum cap.
2. Provides that certain safety officers who are members of
the Public Employees' Retirement System, the Los Angeles
City Employees' Retirement System, or subject to the
County Employees Retirement Law of 1937 who are injured
on the job are entitled to a "leave of absence" of up to
one year with full pay in lieu of temporary disability
payments. Because this benefit is set forth in Section
4850 of the Labor Code, the benefit has come to be known
as "4850 time" or "4850 benefits."
3. Lists the following safety officers as being eligible
for 4850 time: city police officers; county sheriffs and
sheriffs' deputies; city, county or district
firefighters; district attorney investigators; probation
officers; certain special district police officers;
certain lifeguards; certain airport law enforcement
officers; certain harbor security personnel; and police
officers of the Los Angeles Unified School District.
4. Denies eligibility for 4850 time to persons who work in
safety-related offices who are classified as clerks,
stenographers, telephone operators, machinists, and
mechanics.
This bill:
1. Repeals the restriction in Section 4850 of the Labor
Code that limits 4850 time to safety officers who are
members of the Public Employees' Retirement System, the
Los Angeles City Employees' Retirement System, or
subject to the County Employees Retirement Law of 1937.
2. Adds deputized local park rangers, California Community
College police, and police officers of a school district
to the list of eligible individuals.
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3. Provides that the section shall not apply to any persons
described in subdivision (b) who are employees of the
City and County of San Francisco.
Comments
As a general rule, injured employees are entitled to
temporary disability benefits equal to two-thirds of their
regular wages. This target of replacing two-thirds of
wages during the period an employee is off work is designed
to make the employee whole, since workers' compensation
benefits are not subject to social security or income
taxes. Thus, the two-thirds rate is designed to
approximate full take home pay. However, for safety
officers, in recognition of the dangers they inherently
face on the job, a more generous benefit was created. As
interpreted by the courts, the safety officer receives his
or her full pay, tax-free, for up to one year after the
injury. Subsequent to the one-year period, if the officer
is still temporarily disabled, he/she would receive the
same temporary disability benefits as any other injured
worker.
Prior legislation . This bill is essentially identical to
AB 419 (Lieber), 2007-08 Session, which was approved by the
Legislature but vetoed by the Governor. In his veto
message, the Governor stated:
This bill would increase workers' compensation costs to
some cities and counties by requiring them to provide
certain injured workers a leave of absence without loss
of salary in lieu of regular temporary disability
payments. While this benefit is currently conferred on
some sworn peace officers, this bill would expand it to
park rangers, community college police, and many others.
Eligibility for this benefit is best left to locals, not
the state, to determine.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/28/09)
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California Professional Firefighters (co-source)
Police Officers Research Association of California
(co-source)
California Applicants' Attorneys Association
California State Employees Association
San Diego City Schools Police Officers Association
OPPOSITION : (Verified 6/28/09)
California Association of Joint Powers Authority
Department of Industrial Relations
ARGUMENTS IN SUPPORT : The author's office points out
that San Jose City police officers and firefighters, San
Diego City Unified School District police officers, and
several other municipal public safety employees in the
state are excluded from 4850 benefits when injured in the
line of duty due to participation in other retirement
systems. Conversely, they must seek supplemental
disability payments through their respective collective
units. This bill rectifies this inequity in current law,
say supporters. The Peace Officers Research Association of
California describes this as an oversight that results in
some peace officers and firefighters working side-by-side
with other safety officers and not being protected under
the same workers' compensation laws.
ARGUMENTS IN OPPOSITION : Opponents believe that this
bill's provisions unreasonably increase public employer
salary costs by tens of millions of dollars that are over
and above the workers' compensation temporary disability
liability. The bill's provisions, they argue, will be
particularly burdensome at a time when local government
budget resources have been severely reduced due to the
dramatic downturn in the state's economy. The impact on
parks, school districts, and colleges in these hard
economic times will cause additional reductions in force
and layoffs of more teachers in already understaffed
classrooms. Opponents also state that studies have shown
that the payment of temporary disability at the rate of 100
percent of wages tax free can lead to recovery times of up
to twice the length of injuries where similar benefits are
not provided.
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ASSEMBLY FLOOR :
AYES: Ammiano, Beall, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Coto, Davis, De La Torre, De Leon, Evans, Feuer, Fong,
Fuentes, Furutani, Galgiani, Gilmore, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Krekorian, Lieu,
Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, John A.
Perez, V. Manuel Perez, Portantino, Ruskin, Salas,
Skinner, Solorio, Swanson, Torlakson, Torres, Torrico,
Yamada, Bass
NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill,
Blakeslee, Conway, Cook, DeVore, Duvall, Emmerson,
Fletcher, Fuller, Gaines, Garrick, Hagman, Harkey,
Jeffries, Knight, Logue, Miller, Nestande, Niello,
Nielsen, Silva, Smyth, Audra Strickland, Tran, Villines
NO VOTE RECORDED: Arambula, Eng, Price, Saldana
AGB:mw 6/28/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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