BILL ANALYSIS                                                                                                                                                                                                    Ó



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          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  








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            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  








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            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  








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            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  








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            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  








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              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)








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          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


















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