BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 2052 (Gonzales) - Workers' Compensation Amended: April 8, 2014 Policy Vote: L&IR 5-0 Urgency: No Mandate: Yes Hearing Date: August 4, 2014 Consultant: Robert Ingenito This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2052 would expand existing workers' compensation presumptions to include all classes of California peace officers. Fiscal Impact: The extension of worker's compensation presumptions beyond the six categories of peace officers specified in current law would result in substantial costs for state departments. The exact magnitude is unknown, but could total in the millions of dollars annually across all state departments employing peace officers. Background: Current law creates presumptions to reflect unique circumstances where injuries or illnesses appear to be logically work-related, but it is difficult for the safety officer to prove it is work-related. Presumptions are rebuttable, but given that many injuries for which presumptions exist can have a variety of causes, it is difficult to prove they are not work-related. Thus, it is rare that employers attempt to rebut presumptions. The absence of a presumption does not mean an employee does not qualify for workers' comp benefits, but that an employee must prove an injury is work-related in order to qualify. Current law includes presumptions for cancer, lower back impairment, hernia, heart trouble, tuberculosis, pneumonia, meningitis, and biochemical exposures. These presumptions generally apply to a majority of peace officers employed by public agencies including firefighters, police and sheriffs, California Highway Patrol, and correctional officers. This bill would expand current presumptions to additional peace officers, including local probation officers, UC/CSU police officers, and a variety of state investigators. AB 2052 (Gonzales) Page 1 Some conditions for which presumptions exist are fairly common in the general population, including cancer (2.8% of US population), lower back impairment (prevalence estimates range from 1.0% to 58.1% of adults), and heart disease (over 5% of California adults and over 20% of US adults over 65). Presumptions do not appear to have a strong evidence basis, due in part to the lack of research that can conclusively demonstrate whether certain job duties are associated with increased risk of certain conditions. Instead, presumptions are specified for certain classes based on the judgment that some of them are likely work-related, but that workers will generally not be able to meet the burden of proof, such as proving a cancer was directly linked to job-related exposure. Some work is ongoing to further explore job-related health risks. A landmark study by the National Institutes of Safety and Health (NIOSH) examining 30,000 firefighters for cancer risk strengthens the scientific evidence that fire fighters are at increased risk of certain cancers. Proposed Law: This bill would extend the above-mentioned presumptions to all peace officers in the State, including the following classifications: Department of Alcoholic Beverage Control enforcement agents. Cal-Expo Police. Medical Board of California and Board of Dental Examiners investigators. Department of Consumer Affairs, Department of Insurance, Division of Labor Standards Enforcement, Public Employees' Retirement System, and Department of Managed Health Care investigators. Municipal Utility District Security guards. Welfare Fraud and Child Support investigators. Sergeant-at-Arms of both Legislative houses. Bailiffs of the courts. Security officers of Hastings College of Law. Regularly employed law enforcement officer of the Oregon State Police, the Nevada Department of Motor Vehicles and Public Safety, or the Arizona Department of Public Safety, under specified circumstances. AB 2052 (Gonzales) Page 2 Related Legislation: 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. Staff Comments: The number of state-level employees affected by the bill would be small compared to the number at the local level. Instead, the fiscal impact of this bill would be felt disproportionately by local jurisdictions. This bill is keyed as a potential reimbursable mandate. However, mandate claims are unlikely to be successful, as increased employee compensation costs mandated by state law that do not result in a higher level of service to the public are not generally considered reimbursable.