BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 947|
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THIRD READING
Bill No: AB 947
Author: Solorio (D)
Amended: 9/2/11 in Senate
Vote: 21
SENATE LABOR & INDUST. RELATIONS COMMITTEE : 5-0, 6/22/11
AYES: Lieu, DeSaulnier, Leno, Padilla, Yee
NO VOTE RECORDED: Wyland, Runner
SENATE APPROPRIATIONS COMMITTEE : 6-3, 8/25/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
ASSEMBLY FLOOR : 46-26, 5/12/11 - See last page for vote
SUBJECT : Workers compensation: temporary disability
payments
SOURCE : California Applicants Attorneys Association
DIGEST : This bill authorizes up to 240 weeks of
temporary disability benefits for workers who (1) on the
advice of a workers compensation system physician, delayed
surgery while less expensive or invasive treatment was
tried, (2) used up to 104 weeks of temporary disability
benefits during that time, and (3) required surgery and
post-surgery recovery period exhausted any remaining weeks
of temporary disability benefits.
Senate Floor Amendments of 9/2/11 ensure that the extension
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of additional temporary disability benefits for certain
injured workers in prospective in nature, and also to
clarify the role of the primary treating physician.
ANALYSIS : Existing law establishes a workers'
compensation system that provides benefits to an employee
who suffers from an injury or illness that arises out of
and in the course of employment, irrespective of fault.
This system requires all employers to secure payment of
benefits by either securing the consent of the Department
of Industrial Relations to self-insure or by securing
insurance against liability from an insurance company duly
authorized by the state.
Existing law provides for the payment of indemnity benefits
if the occupational injury causes temporary or permanent
disability which prevents the worker from returning to
his/her job. In the case of temporary disability payments,
the benefit is two-thirds of the weekly loss in wages due
to disability for up to 104 weeks within five years.
Existing law extends up to 240 weeks of temporary
disability benefits for workers who suffer from the
following occupational injuries:
1. Acute and chronic hepatitis B;
2. Acute and chronic hepatitis C;
3. Amputations;
4. Severe burns;
5. Human immunodeficiency virus (HIV);
6. High-velocity eye injuries;
7. Chemical burns to the eyes;
8. Pulmonary fibrosis;
9. Chronic lung disease;
10.An injury or condition occurring on or after January 1,
2012.
This bill authorizes up to 240 weeks of temporary
disability benefits for workers who (1) on the advice of a
workers' compensation system physician, delayed surgery
while less expensive or invasive treatment was tried, (2)
used up to 104 weeks of temporary disability benefits
during that time, and (3) required surgery and post-surgery
recovery period exhausted any remaining weeks of temporary
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disability benefits.
This bill prohibits the extension of additional temporary
disability benefits if the need for the additional
treatment was caused by the willful failure of the worker
to undergo recommended medical treatment necessary to reach
maximum medical improvement.
Comments
The author introduced this bill to address circumstances
where medical treatment that is required to cure the
injured worker's injuries takes longer, through no fault of
the injured worker, than the 104 weeks of temporary
disability benefits allowed by law. The author's goal is
that the extension of additional temporary disability
benefits is for cases involving substantial injuries where
the injured worker is simply not able to work during the
recovery period. Examples could include cases where
conservative treatments are attempted for an extended
period, but ultimately surgery is necessary, or prolonged
pain management challenges due to injury or surgery.
Prior Legislation
AB 2397 (Solorio), 2009-10 Session, would have permitted
law enforcement employees to extend paid leave of absence
due to temporary disability by up to an additional year by
mutual agreement with their employer through the collective
bargaining process. The bill was vetoed by Governor
Schwarzenegger. His veto statement read:
"This bill would amend Labor Code section 4850 to provide
that an injured employee and his or her employer may
mutually agree to extend the employee's leave of absence
without loss of salary in lieu of temporary disability
payments or maintenance allowance payments beyond the one
year period of disability."
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
According to the Senate Appropriations Committee:
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Workers' compensation Unknown likely significant
costs General/
disability payments beginning January 2014
Special*
extension
* 55 percent General Fund, 45 percent special funds. The
maximum cost per claim beginning 2012 would be $137 over
current law (136 weeks x $1,010.50 week)
SUPPORT : (Verified 8/30/11)
California Applicants' Attorneys Association (source)
California Labor Federation, AFL-CIO
OPPOSITION : (Verified 8/31/11)
Acclamation Insurance Management Services
Allied Managed Care
Alpha Fund
Office of Mayor Antonio R. Villaraigosa, City of Los
Angeles
California Association of Joint Powers Authorities
California Special Districts Association
California Coalition on Workers Compensation
ARGUMENTS IN SUPPORT : Proponents note that since the
passage of former Governor Schwarzenegger's workers'
compensation reforms in
SB 899 (Poochigian), Chapter 34, Statutes of 2004,
temporary disability benefit awards and durations have
decreased significantly, placing the livelihood and family
life of injured workers in significant jeopardy.
Proponents note that the lack of temporary disability
benefits is particularly difficult for seriously injured
workers who have not been cured within a two year period.
These injured workers, according to the proponents, are
left without few options are frequently must rely on
California's safety net, shifting costs to state and local
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governments that are more appropriately absorbed by the
workers' compensation system.
ARGUMENTS IN OPPOSITION : Opponents argue that the 104
week cap was one of the major reforms that have helped
control workers' compensation costs. Opponents also argue
that extending the duration of temporary disability
benefits does little to improve medical treatment, but
rather causes cases to be delayed, with negative
implications for both injured workers and employers.
Opponents also believe that the language of this bill is
too open-ended and would allow any physician to extend
temporary disability benefits in most cases. In
particular, the California Association of Joint Powers
Authorities suggests that a study be conducted to determine
whether there are cases that require extended temporary
disability, and to identify those types of cases.
ASSEMBLY FLOOR : 46-26, 5/12/11
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Butler, Charles
Calderon, Campos, Carter, Chesbro, Davis, Dickinson, Eng,
Feuer, Fong, Fuentes, Furutani, Galgiani, Gatto, Hall,
Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman,
Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning,
Pan, V. Manuel Pérez, Skinner, Solorio, Swanson,
Wieckowski, Williams, Yamada, John A. Pérez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Fletcher, Beth Gaines, Grove, Hagman, Halderman, Harkey,
Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell,
Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao,
Wagner
NO VOTE RECORDED: Buchanan, Cedillo, Garrick, Gordon,
Gorell, Perea, Portantino, Torres
PQ:kc 9/6/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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