BILL ANALYSIS Ó Senate Committee on Labor and Industrial Relations Senator Ben Hueso, Chair Date of Hearing: June 25, 2014 2013-2014 Regular Session Consultant: Gideon L. Baum Fiscal:Yes Urgency: No Bill No: AB 2052 Author: Gonzalez As Introduced/Amended: April 8, 2014 SUBJECT Workers' compensation. KEY ISSUE Should the Legislature expand existing workers' compensation presumptions to include all classes of California peace officers? 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 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; and Bio-chemical illness. 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 5 to 10 years commencing on their last day of employment, depending on the injury and the peace officer classification involved. Peace officers whose principal duties are clerical, such as stenographers, telephone operators, and other office workers are excluded. (Labor Code §§3212 to 3213.2) 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. (Labor Code §§3212 to 3213.2) This bill would extend the above-mentioned presumptions to all peace officers in the State of California . This includes: a) Department of Alcoholic Beverage Control enforcement agents; (Penal Code §830.2) b) Cal-Expo Police; (Penal Code §830.2) c) Medical Board of California and Board of Dental Examiners investigators; (Penal Code §830.3) d) Department of Consumer Affairs, Department of Insurance, Division of Labor Standards Enforcement, Public Employees' Retirement System, and Department of Managed Health Care investigators; (Penal Code §830.3) e) Municipal Utility District Security guards; (Penal Code §830.34) f) Welfare Fraud and Child Support investigators; (Penal Code §830.35) g) Sergeant-at-Arms of both Legislative houses; (Penal Code §830.36) h) Bailiffs of the courts; (Penal Code §830.36) i) Security officers of Hastings College of Law; (Penal Code §830.36) and j) Regularly employed law enforcement officer of the Oregon State Police, the Nevada Department of Motor Vehicles and Hearing Date: June 25, 2014 AB 2052 Consultant: Gideon L. Baum Page 2 Senate Committee on Labor and Industrial Relations Public Safety, or the Arizona Department of Public Safety, under specified circumstances. (Penal Code §830.39) COMMENTS 1. A Brief Discussion on Presumptions: Presumptions for peace officers and firefighters have been a part of workers' compensation law since 1917. While their scope has grown, the fundamental idea behind each and every presumption remains the same: these are injuries that are intuitively likely to be job related, and therefore occupational injuries compensable in the workers' compensation system, but are difficult for the employee to prove. A good example of this is the "heart trouble" presumption, which was created in 1939: while many individuals suffer from heart ailments for a variety of different reasons, the jobs we asked firefighters and peace officers to fulfill are very stressful and take a toll on their heart. Therefore, for these individuals, the Legislative granted a presumption that a firefighter or peace officer's "heart trouble" is occupational. However, not all presumptions were extended to all peace officers. For example, while the bloodborne pathogen presumption was extended to all peace officers, the cancer presumption is currently limited to firefighters, sheriffs, police officers, California Highway Patrol officers, and arson investigation units. AB 2052 would extend the above-mentioned presumptions to all peace officers in the State of California. 2. Staff Comments: In extending existing workers' compensation presumptions to all peace officers, AB 2052 raises several important questions. These are discussed below. Are All Peace Officers Exposed to Similar Occupational Hazards? Hearing Date: June 25, 2014 AB 2052 Consultant: Gideon L. Baum Page 3 Senate Committee on Labor and Industrial Relations Historically, in crafting the current presumptions, sharp distinctions have been made between California's peace officers. As was noted above, the cancer presumption, which was last amended in 2011, included firefighters, sheriffs, police officers, California Highway Patrol officers, and arson investigation units, excluding peace officers covered by other presumptions, such as University of California (UC) peace officers. Similarly, UC peace officers fall under the heart disease, hernia and pneumonia presumption, but only after serving 5 years. These distinctions may denote differences in exposure to occupational hazards, as it is likely that a bailiff of a court will be exposed to different occupational hazards than a firefighter. However, we simply do not know, as we lack any data on the occupational hazards facing the peace officers who would fall under the workers' compensation presumptions under AB 2052. Unlike AB 1035 (Perez), which the Committee heard earlier this year and was based on a study which identified specific costs and population numbers, there are no studies which could suggest the expected impacts of AB 2052. Noting the recent decisions of prior Legislatures to make distinctions between peace officers, as well as the lack of data to support backing away from those prior distinctions, the Committee may wish to consider if additional research is necessary to fully understand the impacts of AB 2052. Legal Questions on the Impacts of AB 2052: Currently, the workers' compensation presumptions are extended to classes of peace officers whose status is not situational - police officers and sheriffs are always peace officers by the nature of their position. Other classes of peace officers, such as Municipal Utility District security guards and welfare fraud investigators, are peace officers in specific situations. It is unclear how this would impact current workers' compensation presumptions. Would, for example, a Municipal Utility District security guard who arrested an individual and then suffered a heart attack six months later be eligible for the presumption? Additionally, AB 2052 extends presumptions within California's Hearing Date: June 25, 2014 AB 2052 Consultant: Gideon L. Baum Page 4 Senate Committee on Labor and Industrial Relations workers' compensation system to non-California peace officers. While out-of-state workers can be eligible to file within California's workers' compensation system, this would be a significant change in law in terms of peace officers presumptions. Again, it is unclear how this would within the existing structure of the workers' compensation presumptions. 3. Proponent Arguments : Proponents argue that, when the presumptions were originally created in the 1970s, the Legislature intended to include all active peace officers. However, since the 1970s, proponents note that several classes of peace officers have been created which are outside of existing workers' compensation presumptions. Proponents believe that these classes have been excluded from current presumptions because they did not exist prior to the original drafting, which the proponents believe to be fundamentally unjust. Proponents believe that AB 2052 addresses this by extending current presumptions to all classes of peace officers. 4. Opponent Arguments : Opponents argue that, under existing law, the burden of proof for presumed occupational injuries lies with the employer and, due to the requirement of a liberal interpretation of workers' compensation law by the Workers' Compensation Appeals Board (WCAB), it is virtually impossible for a public employer to dispute occupational causation of an injury. Opponents further argue that this results in millions of dollars of claims being paid where evidence is limited that the injury is actually occupational. By expanding the number of peace officer classes covered by the presumptions, opponents argue that this will place even greater cost pressures on local governments, taking away from their ability to fund services. 5. Prior Legislation : Hearing Date: June 25, 2014 AB 2052 Consultant: Gideon L. Baum Page 5 Senate Committee on Labor and Industrial Relations AB 1035 (Perez), Statutes of 2014, Chapter 15, extends the timelines that limit a dependent from filing for workers' compensation death benefits if the deceased worker died of Cancer, Tuberculosis, Methicillin-Resistant Staphylococcus aureus (MRSA) skin infections, or a bloodborne infectious disease. SUPPORT Peace Officers Research Association of California (PORAC) (Sponsor) Association for Los Angeles Deputy Sheriffs Association of Probation Supervisors California Applicants' Attorneys Association California Correctional Peace Officers Association California School Employees Association, AFL-CIO California State Firefighters' Association Hacienda La Puente Unified School District Police Officers Association Los Angeles County Deputy Probation Officers Union, AFSCME Local 685 Los Angeles School Police Association Los Angeles School Police Management Association Organization of SMUD Employees Riverside Sheriffs' Association' Sacramento County Probation Association San Bernardino Public Employees Association San Diego Community College Police Officers Association San Diego Schools Police Officers San Joaquin County Probation Officers Association San Luis Obispo Employees Association Santa Cruz County Probation Officers Association State Coalition of Probation Organizations The Glendale City Employees Association Twin Rivers School Police Association Ventura County Professional Peace Officers' Association OPPOSITION Hearing Date: June 25, 2014 AB 2052 Consultant: Gideon L. Baum Page 6 Senate Committee on Labor and Industrial Relations California Association of Joint Powers Authorities California Coalition on Workers' Compensation California State Association of Counties City and County of San Francisco CSAC Excess Insurance Authorities League of California Cities Rural County Representatives of California The Los Angeles County Board of Supervisors Hearing Date: June 25, 2014 AB 2052 Consultant: Gideon L. Baum Page 7 Senate Committee on Labor and Industrial Relations