BILL ANALYSIS Ó AB 511 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 511 (Gipson) - As Amended April 20, 2015 ----------------------------------------------------------------- |Policy |Insurance |Vote:|9 - 4 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill expands the categories of peace officers and other public employees to whom statutory "presumptions of compensability" apply. Specifically, this bill: AB 511 Page 2 1)Replaces the listing of the peace officers who qualify for the various presumptions with a citation to Penal Code Sections 830, et seq, a series of statutes that define all of the various classes of peace officers, thereby qualifying all peace officers to receive the benefit of the presumptions. 2)Applies the same provisions to 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. 3)Specifies that custody assistants, correctional officers, security officers, or security assistants employed by public agencies are entitled to the benefit of the presumptions that certain diseases or conditions constitute compensable injuries. 4)Specifies that certain part-time peace officers are entitled to the cancer presumption and to the presumptions relating to exposure to certain biochemical substances. FISCAL EFFECT: 1)Annual increased workers compensation costs of at least several hundred thousand dollars, statewide across numerous departments employing peace officers (variety of GF/special fund/federal funds). 2)Annual increased workers compensation costs of at least $200,000 statewide to each the California State University (CSU) (GF/student fees) and $200,000 to the University of California (UC) system (GF/student fees/other funds). 3)Assuming the presumptions apply to at least 15,000 peace officers employed by local public agencies, annual increased workers compensation costs in the range of at least $6 million across counties statewide (local funds). The majority of local peace officers to which this bill applies are probation officers. Although the bill is keyed as a reimbursable AB 511 Page 3 mandate, local costs would likely not be reimbursed (see below for additional discussion). 4)A portion of the increased workers compensation costs will likely be offset by reduced costs for health care benefits programs provided through public agencies listed above, since peace officers will receive medical treatment through the workers' compensation system instead of through health care plans. Therefore, net costs to public agencies will likely be slightly lower than the total costs those referenced above. COMMENTS: 1)Purpose. According to the author, this bill ensures equal treatment for all peace officers and similarly situated professionals with respect to presumptions for workers compensation. Proponents of this bill note that many classes of peace officer did not exist when the presumptions were first established. Rather than piecemeal additions to the statute, the author argues all peace officers should be treated the same. This bill is sponsored by the Los Angeles County Professional Peace Officers Association. 2)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 AB 511 Page 4 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. 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. 3)State-Reimbursable Mandate? 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. According to a prior decision by the Commission on modifications to Labor Code section 4850, a statute that expanded the applicability of an existing workers' compensation leave benefit to specified local safety officers, "the California Appellate and Supreme Court have consistently held that additional costs for increased employee benefits, in the absence of some increase in the actual level or quality of governmental services provided to the public, do not constitute an "enhanced service to AB 511 Page 5 the public" and therefore do not impose a new program or higher level of service on local governments within the meaning of article XIII B, section 6 of the California Constitution. "The workers' compensation program is a state-administered program rather than a locally administered program, one that provides a statewide compulsory and exclusive scheme of employer liability, without fault, for injuries arising out of and in the course of employment. [Certain Labor Code provisions are] part of that comprehensive statutory scheme. Moreover, although the claimants may be faced with a higher cost of compensating their employees as a result of extending the workers' compensation?benefits to additional employees, this does not equate to a higher cost of providing services to the public. Therefore, the Commission concluded that [the statute] does not constitute a reimbursable state-mandated program." 4)Opposition. Coalitions of local governments oppose this bill, as do third-party administrators for workers compensation, the California Coalition on Workers' Compensation, and the Los Angeles County Board of Supervisors. Opposition states this is a massive and costly expansion of presumptions, and that they are aware of no objective analysis substantiating the need for this bill. 5)Related Legislation. Last year, the Legislature passed AB 2052 (Gonzalez), which also proposed an expansion of the class of employees entitled to certain 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 stated opposition to expanding presumptions for entire classes of workers without evidence that these officers confront the hazards that gave rise to current presumptions, stating presumptions should be used "rarely and only when justified by clear and convincing AB 511 Page 6 scientific evidence." This bill does not appear to address the veto message. Analysis Prepared by:Lisa Murawski / APPR. / (916) 319-2081