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)
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          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)
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          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.