BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 947
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 947 (Solorio)
          As Amended  September 2, 2011
          Majority vote
           
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          |ASSEMBLY:  |46-26|(May 12, 2011)  |SENATE: |23-13|(September 8,  |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    INS.

          SUMMARY  :  Adds certain surgical cases to the list of conditions 
          that are exceptions to the 104 week cap on temporary disability 
          (TD) benefits, thereby allowing up to 240 weeks of temporary 
          disability benefits. 

           The Senate amendments  redraft and narrow the existing provisions 
          of the bill, as follows:

          1)Limit the bill to cases involving injuries that occur on or 
            after January 1, 2012, where surgery occurs after 104 weeks of 
            TD benefits have been paid, or where the recovery period for a 
            surgery extends past the period where 104 weeks of TD benefits 
            have been paid.

          2)Provide that this exception to the 104 week cap applies only 
            if:

               a)     The need for the surgery or recovery after 104 weeks 
                 of TD benefits have been paid is not caused by the 
                 willful failure of the employee to undergo recommended 
                 medical treatment;

               b)     The surgery was delayed as a result of the primary 
                 treating physician's advice to pursue less invasive 
                 treatment; and

               c)     The surgery was recommended by the primary treating 
                 physician.

           EXISTING LAW  :

          1)Provides for a comprehensive system of workers' compensation 
            benefits for employees who are injured on the job, including 








                                                                  AB 947
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            TD benefits, which are a partial wage replacement benefit, 
            during the period of time that an injured worker is unable to 
            work while recovering from the injury.

          2)Specifies that, for injuries on or after April 19, 2004, an 
            injured worker is entitled to TD benefits for up to 104 weeks 
            within a two year period commencing with the first payment of 
            TD benefits.

          3)Specifies that, for injuries on or after January 1, 2008, an 
            injured worker is entitled to TD benefits for up to 104 weeks 
            within a five year period commencing with the date of injury.

          4)Provides that workers with certain listed injuries or 
            conditions are not subject to the 104 week cap, but instead 
            may be compensated with TD benefits for up to 240 weeks during 
            the five year period commencing with the date of injury.

          5)Provides that TD benefits are payable until the injured worker 
            is "permanent and stationary" (P&S), which is the point where 
            the injured worker's medical condition is not likely to 
            improve with additional treatment.

           AS PASSED BY THE ASSEMBLY  , this bill applied to any case where 
          the primary treating physician determined that treatment was 
          required beyond the 104 week period, provided it was not due to 
          the willful refusal of the injured worker to undergo recommended 
          medical treatment.

           FISCAL EFFECT  :  According to the Senate Appropriations Committee 
          analysis, unknown, but still likely significant costs to the 
          General Fund and other Special Funds.

           COMMENTS  :  The purpose of the bill has been to recognize, and 
          describe, legitimate cases where the existing 104-week cap on 
          temporary disability benefits is an unfair burden on seriously 
          injured workers.  The effort to draw a circle around the 
          appropriate class of injuries has proven elusive, and as a 
          result the bill was narrowed to surgical cases where surgery is 
          delayed on medical advice, but later determined to be necessary. 
           If disputes arise, it is intended that the medical treatment 
          utilization schedule would be relied upon in evaluating 
          appropriateness of surgery and recovery periods, and that agreed 
          or qualified medical evaluators would be involved, as 
          appropriate.








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           Analysis Prepared by  :  Mark Rakich / INS. / (916) 319-2086

                                                               FN: 0002859