BILL ANALYSIS Ó
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: June 12, 2013 2013-2014 Regular
Session
Consultant: Gideon L. Baum Fiscal:Yes
Urgency: No
Bill No: AB 607
Author: Perea
As Introduced/Amended: February 20, 2013
SUBJECT
Workers' compensation: dependent children.
KEY ISSUE
Should the Legislature remove the prohibition on dependent
children receiving workers' compensation death benefits if the
surviving spouse is also totally dependent?
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 that if a child is a minor or found to be
physically or mentally incapacitated from earning by a trier of
fact, that child must be conclusively presumed to be wholly
dependent for support upon a deceased employee-parent with whom
that child is living at the time of injury resulting in death.
This only applies if there is no totally dependent spouse.
(Labor Code §3501)
Existing law defines a totally dependent spouse as a spouse who
earned $30,000 or less in the twelve months immediately
preceding the death. (Labor Code §3501)
Existing law provides that, in the case of a dependent minor
child, death benefits shall continue until the youngest child
attains 18 years of age, or until the death of a child
physically or mentally incapacitated from earning. The payments
must not be less than $224 per week.
(Labor Code §4703.5)
This bill would require that dependent children receive workers'
compensation death benefits, irrespective of if the surviving
spouse is totally dependent.
This bill would also make minor and conforming changes to
existing law.
COMMENTS
1. Need for this bill?
AB 607 seeks to address two issues with death benefits for
dependent children, one technical and the other substantive.
The technical fix is that, under current law, a plain reading
of the statute appears to limit the scope of death benefits
minor dependent children and not dependent children of any
age. This language clashes with the definition provided under
existing law, and appears to be a drafting error from a 2002
workers' compensation reform bill, AB 749 (Calderon).
The substantive amendment addresses cases where there is a
partially dependent surviving spouse, but not a fully
dependent spouse. As noted above, this would be any spouse
who makes more than $30,000 per year. In such an event, the
death benefit would cease, despite the fact that the child is
mentally incapable of earning a living. This benefit would
also cease even if the surviving spouse was unable to support
his or her family.
AB 607 deletes this clause, thereby ensuring that totally
disabled dependent children regardless of age obtain the death
Hearing Date: June 26, 2013 AB 607
Consultant: Gideon L. Baum Page 2
Senate Committee on Labor and Industrial Relations
benefit in the event of a deceased parent.
2. What's the Scope of AB 607?
While AB 607 is sponsored by Police Officers' Research
Association of California
(PORAC), the death benefit being addressed by the bill is not
a benefit exclusive to firefighters and peace officers.
Rather, this benefit is available to the totally disabled
dependent children of any employee who dies as a result of a
job-related injury.
Currently, the Committee is unaware of any breakdown on the
number of individuals AB 607 would impact or the fiscal costs.
However, Staff did reach out to Public Sector stakeholders,
who reported that AB 607 would, most likely, impact few cases.
This seems to suggest that the fiscal impacts would be small
as well.
3. Proponent Arguments :
Proponents argue that AB 607 clarifies a provision in existing
law that a totally disabled dependent child is entitled to
workers' compensation survivor benefits in the case of the
death of a parent, regardless of the status of the surviving
spouse. Proponents note that existing law limits the scope of
a death benefit to cases where there is a merely partially
dependent surviving spouse, denying the expanded "disabled
child" a death benefit where there is a fully dependent
surviving spouse. Proponents note that AB 607 would ensure
that a totally disabled dependent child, regardless of age or
status of their surviving parent, obtain the death benefit
they are entitled to as a disabled child of an employee who
dies as a result of a job-related injury.
4. Opponent Arguments :
None on file.
5. Prior Legislation :
AB 749 (Calderon), Statutes of 2002, Chapter 6, expanded
workers' compensation benefits, including death benefits for
Hearing Date: June 26, 2013 AB 607
Consultant: Gideon L. Baum Page 3
Senate Committee on Labor and Industrial Relations
dependent adult children.
SUPPORT
Peace Officers Research Association of California (PORAC)
(Sponsor)
Fresno Deputy Sheriffs' Association
Laborers' Locals 777 & 792
Organization of SMUD Employees
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Rosa City Employees Association
The Glendale City Employees Association
OPPOSITION
None on file.
Hearing Date: June 26, 2013 AB 607
Consultant: Gideon L. Baum Page 4
Senate Committee on Labor and Industrial Relations