BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1373
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1373 (John A. Pérez)
          As Amended  August 26, 2013
          Majority vote
           
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          |ASSEMBLY:  |60-12|(May 2, 2013)   |SENATE: |36-0 |(September 9,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    INS.  

           SUMMARY  :  Extends the statute of limitations in certain  
          circumstances for dependents of public safety officers to file a  
          workers' compensation claim for death benefits.  Specifically,  
           this bill  :  

          1)Requires that workers' compensation claims for death benefits  
            for the dependents of public safety officers be filed within  
            480 weeks from the date of injury, but no later than one year  
            from the date of death, if the claim involves the following  
            illnesses:

             a)   Cancer, including leukemia;

             b)   Tuberculosis;

             c)   Blood-borne infectious diseases, including  
               methicillin-resistant staphylococcus aureus (MRSA).

          2)Specifies the public safety officers to whom this extended  
            limitations period will apply.

          3)Limits the extended limitations period to cases where the date  
            of injury is during the employee's active service.

          4)Provides that the extended limitations period does not apply  
            to any claims that have already been adjudicated or otherwise  
            finalized, or for which the limitations period has already  
            lapsed as of December 31, 2013.

          5)Specifies that the dependents to whom the death benefit will  
            be available are the dependent or dependents on the date of  
            death.









                                                                  AB 1373
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           EXISTING LAW  :

          1)Establishes a comprehensive system for providing benefits to  
            workers injured on the job, including death benefits payable  
            to dependents.

          2)Provides generally that an injured worker bears the burden to  
            establish that the injury for which benefits are claimed arose  
            out of or in the course of employment.

          3)Provides, for specified peace officer and firefighter  
            employees, that certain injuries or conditions are presumed to  
            have arisen out of or in the course of employment.

          4)Specifies in great detail which firefighters and peace  
            officers are entitled to the various presumptions.

          5)Provides for a statute of limitations defining the period  
            within which a claim for benefits must be filed, and with  
            respect to death benefits, specifies that the claim must be  
            filed within one year of the later of:

             a)   The date of death, if death occurs less than one year  
               from the date of injury, or

             b)   The date of last furnishing of benefits, if death occurs  
               more than one year from the date of injury, or

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

          6)Provides further that, notwithstanding the above limitations,  
            no proceedings may be commenced later than one year after the  
            date of death or 240 weeks after the date of injury.

          7)Establishes special rules governing the period within which  
            proceedings must be commenced for asbestosis and HIV/AIDS  
            cases.

          8)Establishes a schedule of death benefits, with specific  
            amounts due depending on whether the dependent is fully or  
            partially dependent, and depending on the number of fully or  
            partially dependent beneficiaries.  Depending on the  
            circumstances, the death benefits can be in excess of  








                                                                  AB 1373
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            $300,000.

          9)Provides that when a person otherwise entitled to death  
            benefits has no dependents, the benefits shall be paid to the  
            state, and credited to the uninsured employers fund, which  
            pays for benefits to injured workers who were employed by an  
            illegally uninsured employer.

          10)Specifies that questions about full or partial dependency,  
            and questions about who the dependents are, shall be  
            determined "in accordance with the facts as they exist at the  
            time of the injury of the employee." 

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, there would be an increase in workers' compensation  
          costs for state employees who are firefighters and peace  
          officers.  The specific state departments that would be impacted  
          are the Department of Forestry and Fire Protection (CAL FIRE)  
          and the California Highway Patrol (CHP).  The amount of the  
          increase is unknown.

           COMMENTS  :  

           1)Purpose  .  According to the author, and the sponsor the  
            California Professional Firefighters, there are cases where  
            current law unfairly harms the dependents of fallen public  
            safety officers.  In circumstances where a safety officer dies  
            more than 240 weeks after a diagnosis of the condition that  
            causes death, current law fails to protect surviving  
            dependents.  However, there are conditions where survival for  
            more than 240 weeks after diagnosis is not uncommon, notably a  
            cancer that goes temporarily into remission, or a blood-borne  
            disease that results in a debilitating but long, slow decline.  
             

           2)Date of injury  .  In many cases under current law, a public  
            safety officer is entitled to file a workers' compensation  
            claim for up to five years after terminating employment.  This  
            bill, however, limits application of the extended limitations  
            period to cases where the date of injury was during the period  
            of active employment.  This limitation is designed to ensure  
            that the public agencies that will be responsible to paying  
            these claims will have timely actual notice that this sort of  
            benefit might arise in the future.









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           3)Dependents  .  Because the bill contemplates that there may be  
            several years after the "date of injury" (diagnosis) and the  
            resulting death, it provides for a different rule to identify  
            which dependents are entitled to benefits.  Current law fixes  
            the identification of dependency at the date of injury,  
            whereas the bill, more appropriately in these cases, fixes the  
            identification of dependency on the date of death.

           4)Prior legislation  .  Last year, AB 2451 (John A. Pérez) also  
            proposed to extend the statute of limitations in presumption  
            cases.  AB 2451 was significantly broader in at least two  
            respects:  it also applied to death resulting from heart  
            conditions, and it did not limit the cases where the extended  
            limitations period applied to those where the date of injury  
            was during active employment.  Rather, AB 2451 would have  
            applied regardless of when the condition arose, resulting in  
            significantly more uncertainty, and significantly more cases,  
            than this bill will apply to.  Governor Brown vetoed AB 2451.   

           

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


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