BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 511


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          511 (Gipson) - As Amended April 20, 2015


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          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:  









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          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  








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            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  








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            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  








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               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  








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            scientific evidence."  This bill does not appear to address  
            the veto message.

          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081