BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 623


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          Date of Hearing:  June 24, 2015


                           ASSEMBLY COMMITTEE ON INSURANCE


                                   Tom Daly, Chair


          SB  
          623 (Lara) - As Amended April 14, 2015


          SENATE VOTE:  34-1


          SUBJECT:  Workers' compensation: benefits.


          SUMMARY:  Expressly overrules regulations, which are contrary to  
          current statutory law, that provide that undocumented workers  
          are not eligible for certain workers' compensation benefits.    
          Specifically, this bill:  


          1)States that a person shall not be prohibited from receiving  
            benefits from the Uninsured Employers Benefits Trust Fund or  
            the Subsequent Injuries Benefits Trust Fund (Funds) solely  
            because of his or her citizenship or immigration status.


          2)States that it is the intent of the Legislature to override  
            specified provisions in the California Code of Regulations  
            that are contrary to the rule stated, above.


          3)Makes findings that the State has an interest in making the  
            benefits described above available to people not lawfully in  
            the United States, within the meaning of specified federal  








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            statutes that authorize States to make these benefits  
            available.


          4)Provides that the bill's statement of rights to benefits from  
            the Funds is declaratory of existing law.


          EXISTING LAW:   


          1)Establishes a comprehensive system to provide workers'  
            compensation benefits to all employees who suffer conditions  
            or injuries that arise out of or in the course of employment.


          2)Provides that all protections, rights and remedies available  
            under state law, including all labor and employment laws,  
            unless expressly prohibited by federal law, are available to  
            all persons, regardless of immigration status.


          3)Establishes the Funds to provide specified workers'  
            compensation benefits to all people who meet the criteria to  
            qualify for benefits from one of the Funds.


          FISCAL EFFECT:  The Senate Appropriations Committee referred  
          this bill to the Senate Floor pursuant to Senate Rule 28.8.


          COMMENTS:  


          1)Purpose.  According to the author, existing regulations were  
            adopted upon the enactment by the voters of Proposition 187 in  
            1994, and initiative that restricted the rights of  
            undocumented immigrants in a number of ways.  Despite the  
            Courts' subsequent invalidation of that initiative, the  








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            regulations at issue in the bill have remained on the books.   
            The bill is intended to expressly overrule those regulations.


          2)Practical effect.  Based on Labor Code Section 1171.5  
            (granting the protections of labor and employment laws to  
            undocumented employees), enacted in 2002 and which itself  
            provides that it is declaratory of existing law, undocumented  
            employees have been receiving the benefits from the Funds, and  
            no evidence has been presented that benefits have been denied  
            to any person on the basis of immigration status.  The  
            practical effect of the bill is to state unequivocally that  
            the plain reading of the regulations is not the law.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Association of California Insurance Companies


          California Applicants' Attorneys Association


          California Association of Joint Powers Authorities


          California Chamber of Commerce


          California Coalition on Workers' Compensation


          California Immigrant Policy Center (CIPC)








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          California Labor Federation, AFL-CIO


          California Manufacturers and Technology Association


          California Restaurant Association




          Opposition


          None received




          Analysis Prepared by:Mark Rakich / INS. / (916)  
          319-2086