BILL ANALYSIS Ó AB 2052 Page 1 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 AB 2052 Page 2 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 AB 2052 Page 3 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 AB 2052 Page 4 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 AB 2052 Page 5 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 FN: 0003626