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
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            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
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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Police Officers' Research Association of California

           Opposition 
           
          None received.
           
          Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086