BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2052
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          ASSEMBLY THIRD READING
          AB 2052 (Gonzalez)
          As Amended  April 8, 2014
          Majority vote 

           INSURANCE           8-3         APPROPRIATIONS      12-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Perea, Bradford, Ian      |Ayes:|Gatto, Bocanegra,         |
          |     |Calderon, Cooley,         |     |Bradford,                 |
          |     |Dababneh, Frazier,        |     |Ian Calderon, Campos,     |
          |     |Gonzalez, V. Manuel Pérez |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Allen, Beth Gaines, Olsen |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           SUMMARY  :  Expands the categories of peace officers to whom  
          statutory "presumptions of compensability" apply.  Specifically,  
           this bill  :  

          1)Repeals the listing of the specific categories of peace  
            officers in six labor code sections that specify that certain  
            diseases, conditions or injuries are presumed to be work  
            related.

          2)Replaces the listing of the peace officers who qualify for the  
            various presumptions with a citation to Penal Code Sections  
            830 et seq., a series of statutes that define all of the  
            various classes of peace officers, thereby qualifying all  
            peace officers to receive the benefit of the presumptions.

           EXISTING LAW  :

          1)Provides for a comprehensive system of workers' compensation  
            benefits to be provided to workers whose injuries or  
            conditions arise out of or in the course of employment.

          2)Provides that the injured worker must establish that his or  
            her injury or condition was work related.

          3)Establishes exceptions for certain firefighter and peace  








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            officer employees to the requirement that the injured worker  
            establish that the injury or condition was work related, and  
            instead grants a presumption that the injury or condition is  
            work related.

          4)Provides that the injuries or conditions that are presumed to  
            be work related for specified public safety officers include:

             a)   Cancer;

             b)   Heart trouble, pneumonia, or hernia;

             c)   Tuberculosis;

             d)   Exposure to a biochemical substance;

             e)   Meningitis.

          5)Provides that the presumption of compensability in any of  
            these circumstances is rebuttable.

          6)Defines, in Penal Code sections 830 et seq., the classes of  
            peace officers.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Assuming the presumptions apply to approximately 850  
            additional peace officers employed by the state, annual  
            increased workers compensation costs in the range of $450,000  
            statewide across numerous departments employing peace officers  
            (variety of GF/special fund/federal funds).  

          2)Assuming the presumptions apply to approximately 400  
            additional peace officers employed by the California State  
            University (CSU) and 400 employed by the University of  
            California (UC) system, annual increased workers compensation  
            costs in the range of $200,000 to CSU (GF/student fees) and  
            $200,000 to UC (GF/student fees/other funds).

          3)Assuming the presumptions apply to approximately 15,000 peace  
            officers employed by local public agencies, annual increased  
            workers compensation costs in the range of $6 million across  
            counties statewide (local funds).  The majority of local peace  








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            officers to which this bill applies are probation officers.   
            Although the bill is keyed as a reimbursable mandate, local  
            costs would likely not be reimbursed (see below for additional  
            discussion). 

          4)A portion of the increased workers compensation costs will  
            likely be offset by reduced costs for health care benefits  
            programs provided through public agencies listed above, since  
            peace officers will receive medical treatment through the  
            workers' compensation system instead of through health care  
            plans.  Therefore, net costs to public agencies will likely be  
            slightly lower than the total costs those referenced above.

           COMMENTS  :   

          1)Purpose.  According to the author, "AB 2052 will ensure that  
            all peace officers are included in [the presumption statutes]  
            so that everyone that serves the duty of an active law  
            enforcement officer can receive the proper benefits and  
            treatment in case of injury or illness that may arise from  
            their employment."  The intent is to change the way current  
            law (specifying which peace officers receive the benefit of  
            which presumptions) by providing that all peace officers be  
            treated equally with respect to all of the presumptions that  
            specified illnesses, conditions, or injuries are work related.

          2)Background on presumptions.  Presumptions have never been  
            intended to create work related injuries when, in fact, the  
            injuries in question are not work related.  Rather,  
            presumptions of compensability have been adopted, beginning in  
            the 1970's, to reflect unique circumstances where injuries or  
            illnesses appear to logically be work related, but it is  
            difficult for the safety officer to prove it is work related.   
            There has clearly been some slippage over time from a rigorous  
            application of this rationale, but it remains the underlying  
            premise of presuming injuries or illnesses to be work related.  
             This is why the presumption statutes have extensive lists of  
            the peace officers who qualify - each category of peace  
            officer has made the policy argument that they are similar to  
            existing recipients of the presumption, and should similarly  
            receive the benefit.

          In this regard, the proponents of the bill note that many  
            classes of peace officer - such as airport police, school  








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            district police, transit police, among others - simply did not  
            exist when the presumptions were first established.  Rather  
            than piecemeal additions to the statute, all peace officers  
            should be treated the same.

          In addition, with very narrow exceptions for privately employed  
            firefighters for public facilities, presumptions of  
            compensability have been granted only to public safety  
            officers - fire and peace officer employees.  Thus, the costs  
            of presumptions are borne only by state and local government  
            employers.  (Federal employees in California who are  
            firefighters or peace officers do not have the benefit of  
            presuming certain injuries or illnesses are work related for  
            purposes of the federal compensation system.)

          3)Presumptions are rebuttable.  As a matter of law, public  
            employers have the opportunity to rebut the presumption, and  
            establish that the injury or condition was not the result of  
            employment.  As a practical matter, however, presumptions are  
            rarely rebutted.  Opponents argue that the virtual  
            impossibility of proving a negative - especially with respect  
            to the most commonly presumed injuries such as heart trouble  
            or cancer - renders the presumptions functionally conclusive.   


          4)Are all peace officers similarly situated?  The premise of the  
            bill is that all of the various presumptions are statutory  
            benefits that are applicable to peace officers, and it makes  
            no sense to grant these benefits to some, but not all, peace  
            officers.  However, opponents have pointed out that not all  
            peace officers are, in fact, the same.  While the examples are  
            too numerous to list, a few are illustrative of the argument.   
            Welfare fraud investigators would be added to the list of  
            peace officers who would be entitled to the full range of  
            presumptions.  Is it logical to presume that any cancer these  
            officers contract must have been work related?  Or is it  
            logical to presume that a hernia must have been work related  
            due to the heavy equipment that street police must carry, but  
            that welfare fraud investigators do not?  These and numerous  
            other examples are the reason why, according to opponents, the  
            law has been limited to those peace officers who have made the  
            policy argument that their unique circumstances suggest that  
            their injuries or conditions are likely to be work related,  
            but should be granted the presumption due to the difficulty of  








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            proof in their specific cases.

          5)Workers' compensation is not the only government-provided  
            benefit for these employees.  Opponents have suggested that  
            the implication that these peace officers must be granted the  
            benefit of presumptions, or they will be left out in the cold,  
            is erroneous.  First, the peace officer can always do what  
            every other employee must do - prove the injury or illness is  
            work related.  Second, even if the peace officer cannot carry  
            that burden of proof, they have health insurance and other  
            employee benefits that assure their conditions can be treated.


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


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