BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1373
          Author:   John A. Pérez (D), et al.
          Amended:  8/26/13 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE  :  4-0, 6/26/13
          AYES:  Monning, Wyland, Leno, Yee
          NO VOTE RECORDED:  Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/30/13
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines

           ASSEMBLY FLOOR  :  60-12, 5/2/13 - See last page for vote


           SUBJECT  :    Workers compensation:  firefighters and peace  
          officers

            SOURCE  :     California Professional Firefighters


           DIGEST  :    This bill provides that certain proceedings related  
          to the collection of death benefits of firefighters and peace  
          officers may be commenced within, but no later than, 480 weeks  
          from the date of injury and in no event more than one year after  
          the date of death if all of the specified criteria are met,  
          including, but not limited to, that the employee's death is the  
          result of a specified injury.

           ANALYSIS  :   Existing law establishes a workers' compensation  
          system that provides benefits to an employee who suffers from an  
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          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 creates a series of disputable presumptions of an  
          occupational injury for peace and safety officers for the  
          purposes of the workers' compensation system.  These  
          presumptions include:
             Heart disease;
             Hernias;
             Pneumonia;
             Cancer;
             Meningitis;
             Tuberculosis;
             Methicillin-resistant Staphylococcus aureus (MRSA) skin  
             infections; and,
             Bloodborne infectious disease.

          The compensation awarded for these injuries must include full  
          hospital, surgical, medical treatment, disability indemnity, and  
          death benefits, as provided by workers compensation law.  These  
          presumptions tend to run for five to 10 years commencing on  
          their last day of employment, depending on the injury and the  
          peace officer classification involved.  

          Existing law provides that the presumptions listed above are  
          disputable and may be controverted by evidence.  However, unless  
          controverted, the Workers' Compensation Appeals Board must find  
          is accordance with the presumption.  

          Existing law provides for the payment of a workers' compensation  
          indemnity death benefit.  The amount of the benefit is  
          determined by the date of injury, the number dependents, and if  
          those dependents are partially dependent or wholly dependent on  
          the deceased worker.  

          Existing law provides that no person is a dependent of any  
          deceased employee unless in good faith a member of the family or  
          household of the employee, or unless the person bears to the  
          employee the relation of husband or wife, child, posthumous  
          child, adopted child or stepchild, grandchild, father or mother,  

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          father-in-law or mother-in-law, grandfather or grandmother,  
          brother or sister, uncle or aunt, brother-in-law or  
          sister-in-law, nephew or niece.  

          Existing law requires, with certain exceptions, that the  
          collection of workers' compensation death benefits must be  
          commenced one year from:

          1. The date of death where death occurs within one year from  
             date of injury; or

          2. The date of last furnishing of any benefits where death  
             occurs more than one year from the date of injury; or

          3. The date of death, where death occurs more than one year  
             after the date of injury and compensation benefits have been  
             furnished.

          No such proceedings may be commenced more than one year after  
          the date of death, nor more than 240 weeks from the date of  
          injury.  The exceptions to the above timelines are as follows:

             A.    In the case of the death of an asbestos worker or  
                firefighter from asbestosis, the period within which  
                proceedings may be commenced for the collection of  
                workers' compensation death benefits is one year from  
                the date of death;

             B.    In the case of the death of a healthcare worker,  
                firefighter, peace officer, or correctional officer from  
                HIV-related disease, the period within which proceedings  
                may be commenced for the collection of workers'  
                compensation death benefits is one year from the date of  
                death, provided they meet certain requirements.

          Existing law defines the "date of injury", in cases of  
          occupational diseases or cumulative injuries is that date upon  
          which the employee first suffered disability therefrom and  
          either knew, or in the exercise of reasonable diligence should  
          have known, that such disability was caused by his/her present  
          or prior employment.  

          This bill provides an undefined and indeterminate extension, but  
          in no case later 480 weeks from the date of injury, and in no  

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          event later than one year after death, for dependents of  
          deceased firefighters and peace officers who died if any of the  
          following criteria are met:

             Cancer; 
             Tuberculosis; 
             Methicillin-resistant Staphylococcus aureus (MRSA) skin  
             infections; or 
             Bloodborne infectious disease.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

          According to the Senate Appropriations Committee, there will be  
          an increase in worker's compensation costs for stat e employees  
          who are firefighters and peace officers, as specified.  The  
          specific state departments, which will be impacted, are the  
          Department of Forestry and Fire Protection and the California  
          Highway Patrol.  The amount of the increases is unknown.  

           SUPPORT  :   (Verified  9/3/13)

          California Professional Firefighters (source)
          Association for Los Angeles Deputy Sheriffs 
          Association of Orange County Deputy Sheriffs'
          California Fraternal Order of Police
          California Labor Federation, AFL-CIO
          Long Beach Police Officers Association
          Los Angeles County Probation Officers Union 
          Los Angeles County Professional Peace Officers Association
          Los Angeles Police Protective League 
          Peace Officers Research Association of California 
          Riverside Sheriffs' Association 
          Sacramento County Deputy Sheriffs' Association
          Santa Ana Police Officers Association

           OPPOSITION  :    (Verified  9/3/13)

          Acclamation Insurance Management Services 
          Allied Managed Care 
          California Association of Joint Powers Authorities 
          California Coalition on Workers' Compensation
          California Joint Powers Authorities
          California State Association of Counties

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          Cities of Cypress, Long Beach, Santa Barbara, South San  
           Francisco, Torrance,     Visalia
          County of Los Angeles
          County of San Bernardino
          CSAC EIA California Joint Powers Authorities
          League of California Cities
          Rural County Representatives of California
          Santa Cruz County Fire Agencies Insurance Group

           ARGUMENTS IN SUPPORT  :    Proponents argue that existing law is  
          not meeting the needs of California's firefighters and peace  
          officers.  Proponents note that if a firefighter or peace  
          officer dies of an occupational disease more than five years  
          after being diagnosed with the disease, his/her family members  
          are unable to claim a death benefit.  With occupational injuries  
          such as cancer, the timeframe between when the injury was  
          discovered and when the worker succumbs to the injury may be  
          longer than five years.  In these cases, proponents maintain  
          that the families of firefighters and peace officers should not  
          be denied their right to workers' compensation death benefits  
          due to their families.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that this bill will  
          dramatically increase costs on local governments and counties at  
          a time when budgets are limited and workers' compensation costs  
          are rising.  Opponents states that this bill does not act like  
          existing presumptions or exceptions to the statute of  
          limitations on workers' compensation death benefits, as there  
          are no limits on when such claims could be filed.  Opponents  
          also note that this could have significant impacts, as it will  
          impact all firefighters and peace officers currently employed,  
          but also all currently living retirees that are peace officers  
          or firefighters.  Due to this, the City of Torrance alone places  
          the cost of complying with this bill at more than $25 million  
          annually.  
           
           ASSEMBLY FLOOR  :  60-12, 5/2/13
          AYES:  Achadjian, Alejo, Ammiano, Bigelow, Bloom, Blumenfield,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Cooley, Dahle, Daly,  
            Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez,  
            Gordon, Gorell, Gray, Hall, Roger Hernández, Holden,  
            Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell, Mullin,  
            Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,  

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            V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Skinner, Stone,  
            Ting, Torres, Weber, Wieckowski, Wilk, Yamada, John A. Pérez
          NOES:  Allen, Donnelly, Beth Gaines, Grove, Hagman, Harkey,  
            Logue, Maienschein, Mansoor, Morrell, Wagner, Waldron
          NO VOTE RECORDED:  Atkins, Conway, Jones, Linder, Melendez,  
            Salas, Williams, Vacancy


          PQ:d  9/3/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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