BILL ANALYSIS Ó
AB 2493
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GOVERNOR'S VETO
AB
2493 (Atkins)
As Enrolled August 23, 2016
2/3 vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Insurance |10-0 |Daly, Travis Allen, | |
| | |Calderon, Chu, | |
| | |Cooley, Cooper, | |
| | |Dababneh, Frazier, | |
| | |Gatto, Rodriguez | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |15-0 |Gonzalez, Bloom, | |
| | |Bonilla, Bonta, | |
| | |Calderon, Chang, | |
| | |Daly, Eggman, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 2493
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|ASSEMBLY: |73-0 |(June 2, 2016) |SENATE: |38-0 |(August 16, |
| | | | | |2016) |
| | | | | | |
| | | | | | |
| | | | | | |
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SUMMARY: Authorizes enhanced temporary disability benefits
(commonly referred to as "4850 time") for rank and file and
supervisory firefighters employed by the California Department
of Forestry and Fire Protection (CalFIRE). Specifically, this
bill:
1)Grants firefighter employees of CalFIRE, whether they are rank
and file or supervisory employees, the right to a leave of
absence for up to one year, in lieu of other disability
benefits provided by the Labor Code, with full pay in the
event of a disabling injury that arises out of, or occurs in
the course of, employment.
2)Provides that the benefit is available to the employees who
are engaged in active firefighting duties.
EXISTING LAW:
1)Provides for a comprehensive system of employer-paid benefits
to be provided to employees who suffer illness or injury that
arises out of, or in the course of, employment.
2)Includes temporary disability benefits (TD) for up to 104
weeks if an employee is temporarily unable to work during
recuperation from the workplace illness or injury.
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3)Establishes a minimum and a maximum amount that an employee
may receive, which is adjusted annually to reflect rising wage
levels. Currently the minimum benefit is $165 per week, and
the maximum benefit is $1103. The benefit is calculated based
on 2/3 of an employee's average weekly wages, subject to the
maximum cap.
4)Provides specified public safety officers (most peace officer
and firefighter employees of local governments and special
districts) with an enhanced temporary disability benefit for
up to the first year of temporary disability. These safety
officers receive their full salary (tax free) during the first
year of temporary disability. (Labor Code Section 4850.)
5)Provides this same enhanced disability benefit to officers of
the California Highway Patrol. (Labor Code Section 4800.5.)
6)Provides this same enhanced benefit to employees of the
Department of Justice who are in the "state peace
officer/firefighter" classification, whose principal duties
involve active law enforcement, and to harbor police employed
by the San Francisco Harbor Commission. (Labor Code Section
4800.)
7)Provides this same benefit to firefighters employed by the
University of California fire department, whose primary duties
consist of active firefighting and prevention services, and
law enforcement officers of the University of California
Police Department, whose primary duties consist of active law
enforcement. (Labor Code Sections 4804.1 and 4806.)
8)Provides, for employees of the California State University
Police Department whose principal duties consist of active law
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enforcement, an enhanced industrial disability leave for up to
one year in an amount equal to his or her "net take home
salary," defined as the salary received after state and
federal income taxes, and employee retirement contributions,
have been deducted. (Labor Code Section 4816.)
9)Provides CalFIRE firefighters, as a result of collective
bargaining, injured during active firefighting activities,
with a TD benefit similar to that received by California State
University police (essentially regular TD but without the
cap).
FISCAL EFFECT: CalFIRE estimates approximately $1.2 million
annually based on increased benefit payments and increased leave
time and overtime costs. CalFIRE also estimates increased
oversight staffing needs of between $120,000 and $350,000
annually, depending on workload.
COMMENTS:
1)Purpose. The purpose of the bill is to treat CalFIRE
firefighters fairly by providing them with benefits similar to
the benefits available to most other firefighters in
California. According to the author, "A firefighter is a
firefighter, regardless of what entity issues their badge."
The risk factors faced by CalFIRE firefighters are the same as
the firefighters employed by other agencies, and the benefits
available to CalFIRE firefighters ought to be the same.
2)Temporary disability benefits. The goal of TD is to
approximate an employee's take home pay during the period
after injury when the employee is temporarily unable to work.
This goal is implemented by basing the weekly TD benefit on
2/3 of the employee's average weekly wages. Because there is
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a cap, employees who make more than approximately $1600 per
week do not reach this 2/3 goal, but because the benefit is
tax free, most employees receive an adequate TD benefit while
they are recovering. CalFIRE firefighters injured while
actually fighting a fire receive, as a result of collective
bargaining, a TD benefit that is calculated similarly to
regular TD, but not subject to the cap.
3)Special public safety benefits. Most public safety officers
(peace officer, sheriff, and firefighter employees generally)
receive certain special workers' compensation benefits that
other employees do not receive. Most notably, this class of
employee has the benefit of a range of "presumptions" that
certain illnesses or injuries are automatically deemed to be
work related. All other employees are required to prove that
their condition is work related. The second significant
special workers' compensation benefit is granted by Labor Code
Sections 4800 through 4850 - commonly referred to as "4850
time" - and this law grants defined employees up to one year
of full salary in lieu of the regular method for calculating
TD benefits.
4)Tax advantages. Because these benefits are paid due to
disability, they are not subject to either state or federal
taxes. This rule applies to regular TD benefits, and to
4800-4850 benefits. Because of the tax-free status of this
benefit, a public safety officer takes home substantially more
in weekly benefits than they normally earn while working -
i.e., normal take home pay plus what would have been paid in
taxes. Public employers have long complained that this
creates a disincentive in getting injured public safety
officers to return to work, even if they are able, due to the
financial loss they would suffer when they return.
5)Collective bargaining? If a public agency wants to grant
employees certain benefits of employment, it is able to
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accomplish that goal without need for a statutory change. In
fact, the City of Los Angeles has provided "4850-like"
benefits to a range of employees without need of a statute
mandating the benefit for those employees. CalFIRE fighters
have, in fact, already utilized collective bargaining to
obtain a "better than regular TD" benefit. It may be the case
that the collective bargaining process, and not legislation,
is the better approach to enhancing the benefits of this class
of employee.
Recent legislation. In 2013, SB 527 (Block), Chapter 66,
Statutes of 2013, was signed into law. SB 527 added lifeguards
employed by the City of San Diego to the list of public safety
employees entitled to 4850 time. Proponents of that bill argued
that the San Diego lifeguards performed duties comparable to Los
Angeles County lifeguards, who already have this benefit. The
City of San Diego was in support of SB 527.
Last year, AB 1451 (Chavez) of 2015 sought to provide 4850
benefits to a class of lifeguards employed by the City of
Oceanside, arguing that other lifeguards employed by San Diego
and Los Angeles who performed comparable duties already receive
this benefit. Governor Brown vetoed AB 1451. The veto message
stated:
"This bill adds full-time lifeguards employed by the City of
Oceanside to the list of employees who are entitled up to one
year of leave, paid at full salary without payroll tax
deductions, if they suffer an illness or injury that arises out
of their job duties.
"Recent data indicates public employers' costs related to this
disability leave benefit have increased at an alarming rate.
These cost figures give me pause to extend this benefit further
in state law. If the City of Oceanside wishes to offer full
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salary in lieu of temporary disability for one year to their
regular full-time lifeguards, they are free to do so by means of
the collective bargaining process. Eligibility for this benefit
is best left to the City of Oceanside, not the state, to
determine."
GOVERNOR'S VETO MESSAGE:
This bill grants to the Department of Forestry and
Fire Protection firefighters up to one year of "4800
time" disability leave paid at full salary and
tax-free. This policy results in higher take home pay
than pre-injury wages.
As stated in my veto of AB 1451 last year, costs go up
significantly when this benefit is extended to new
classes of employees. The state now faces over $200
billion in unfunded pension and health liabilities.
Since 2011 the costs for all this has increased by
nearly $5 billion per year-a 59 percent increase.
In light of these huge commitments, I am reluctant to
extend this disability benefit at all-let alone
through legislation outside the bargaining process.
Analysis Prepared by:
Mark Rakich / INS. / (916) 319-2086 FN: 0005120
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