BILL ANALYSIS Ó AB 607 Page 1 Date of Hearing: April 10, 2013 ASSEMBLY COMMITTEE ON INSURANCE Henry T. Perea, Chair AB 607 (Perea) - As Introduced: February 20, 2013 SUBJECT : Workers' compensation: disabled dependent children SUMMARY : Clarifies that a totally disabled dependent child is entitled to workers' compensation survivor benefits in case of the death of the parent, regardless of the status of the surviving spouse. Specifically, this bill : 1)Strikes out a phrase in the statute governing death benefits for surviving totally disabled children of a deceased worker that provides death benefits when there is a partially dependent surviving parent, but perversely denies the death benefit when there is a totally dependent surviving parent. 2)Strikes out a redundant qualification that the "child" be a "minor" in the provision that explicitly allows benefits for totally disabled children regardless of age. EXISTING LAW : 1)Provides for a comprehensive system of workers' compensation benefits to be paid to employees, or their dependents in the case of a job-related death, in the event of illness or injury that arises out of or in the course of employment. 2)Includes among the various benefits death benefits for dependents of an employee who dies as a result of a work-related injury. 3)Provides generally that these death benefits terminate with respect to minor children when the child turns 18, or graduates from high school, whichever is later. 4)Provides that, with respect to a child who is a dependent of the employee who dies, and who is totally disabled due to a physical or mental condition, the death benefits continue for the life of the child. 5)Qualifies the right of a disabled child to these benefits with language that implies that there must be a partially dependent AB 607 Page 2 surviving spouse in order for the totally disabled child to obtain these benefits. FISCAL EFFECT : Undetermined. COMMENTS : 1)Purpose . According to the sponsor, the Police Officers Research Association of California (PORAC), this bill is necessary to clarify the rights of totally disabled children of employees who have died on the job to receive dependent death benefits. PORAC correctly notes that an unusual phrase in the statute appears to limit the scope of death benefits to cases where there is a merely partially dependent surviving spouse, but denies the expanded "disabled child" death benefit where there is a fully dependent surviving spouse. The bill deletes this offending clause, thereby ensuring that totally disabled dependent children regardless of age obtain the death benefit to which they should be entitled. 2)Bill applies to all employees . While PORAC is the sponsor of this measure, the death benefit being addressed by the bill is not one of the "special" public safety officer benefits that are afforded to defined police and firefighters. Rather, this benefit is available to the totally disabled dependent children of any employee who dies as a result of a job-related injury. 3)Few cases . While there does not appear to be any rigorous quantification of the extent to which the bill might expand the number of cases where this death benefit is awarded, after consultation with representatives of employer organizations, the consensus seems to be that there are relatively few cases, and of those, the beneficiaries were probably intended to be covered by the existing statute. 4)Prior legislation . AB 749 (Calderon) of 2002 enacted a broad range of workers' compensation benefit increases, notably in the amounts paid for permanent disabilities. However, one small piece of that measure adopted the language at issue in AB 607. While it remains unclear precisely what was intended by the language when it was enacted, correcting the resulting confusion seems consistent with the intent of the original enactment. AB 607 Page 3 REGISTERED SUPPORT / OPPOSITION : Support Police Officers' Research Association of California Opposition None received. Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086