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

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               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

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            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

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            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  
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            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

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          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