BILL ANALYSIS Ó AB 511 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON INSURANCE Tom Daly, Chair AB 511 (Gipson) - As Amended April 20, 2015 SUBJECT: Workers' compensation 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)Specifies that full-time peace officers defined in Penal Code Sections 830 et seq., are entitled to the benefit of the presumptions that certain diseases or conditions constitute compensable injuries. 3)Specifies that certain peace officers not defined in Penal Code Sections 830 et seq., are entitled to the benefit of the presumptions that certain diseases or conditions constitute compensable injuries. 4)Specifies that custody assistants, correctional officers, security officers, or security assistants employed by public agencies are entitled to the benefit of the presumptions that AB 511 Page 2 certain diseases or conditions constitute compensable injuries. 5)Specifies that certain part-time peace officers are entitled to the cancer presumption and to the presumptions relating to exposure to certain biochemical substances. 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 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 AB 511 Page 3 peace officers. FISCAL EFFECT : Undetermined COMMENTS : 1)Purpose. According to the author, when the initial presumption laws were enacted, they were intended to apply to all peace officers. Newer categories of officers, however, have not been included in the benefits of presumptions because they are not expressly listed in statute. 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, some many decades ago, 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 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 AB 511 Page 4 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. 3)Non-Peace Officers. The bill applies to several types of public employees who are not peace officers -- custody assistants, correctional officers, security officers, or security assistants. In some circumstances, some of these employees may perform functions similar to those performed by peace officers. However, it is unclear what employees are included within this class, particularly the "assistant" job descriptions, and what relationship those employment classes have to peace officer classifications. Proponents have not provided a more specific definition of who these non-peace officers might be, or why they should be afforded special peace officer benefits. 4)Non Section 830 Peace Officers. The bill specifically includes peace officers who are not defined in Penal Code Section 830, et seq. It is not clear who these peace officers might be, who they work for, what qualifies them as peace officers, or how a public employer would determine whether or not an employee is a "peace officer" even though not defined by the basic law that defines "peace officer." 5)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. 6)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 AB 511 Page 5 no sense to grant these benefits to some, but not all, peace officers. However, 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 proof in their specific cases. 7)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. 8)Prior legislation. Last year, the Legislature passed AB 2052 (Gonzalez), which also proposed an expansion of the class of employees entitled to the benefit of presumptions of compensability. AB 511 is broader than AB 2052, as it includes part-time peace officers, non-Section 830 peace officers, as well as certain classes of employee who are not considered peace officers. Despite being narrower than AB 511, the Governor vetoed AB 2052. The Governor's veto message provided, in part: "Current workers' compensation law provides coverage to AB 511 Page 6 certain categories of peace officers and firefighters for presumed compensable injuries. These presumptions, which include cancer, heart disease, pneumonia, hernia, bio-chemical illness, tuberculosis, and meningitis, were enacted in response to the types of hazards which these workers face. Over the course of many decades, California has expanded both the diseases and the kinds of safety employees which these presumptions cover. This measure seeks to expand coverage to dozens of additional categories of officers without real evidence that these officers confront the hazards that gave rise to the presumptions codified in existing law. Presumptions should be used rarely and only when justified by clear and convincing scientific evidence." It is not clear what clear and convincing scientific evidence has been developed since the Governor's veto. REGISTERED SUPPORT / OPPOSITION: Support Los Angeles County Professional Peace Officers Association Opposition Acclamation Insurance Management Services (AIMS) Allied Managed Care (AMC) AB 511 Page 7 Alpha Fund Association of California Healthcare Districts (ACHD) California Association of Joint Powers Authorities (CAJPA) California Coalition on Workers' Compensation (CCWC) California State Association of Counties (CSAC) CSAC Excess Insurance Authority (CSAC-EIA) League of California Cities (LCC) Rural County Representatives of California (RCRC) Analysis Prepared by:Mark Rakich / INS. / (916) 319-2086 AB 511 Page 8