BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 897|
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                                   THIRD READING 


          Bill No:  SB 897
          Author:   Roth (D) 
          Amended:  3/29/16  
          Vote:     21 

           SENATE LABOR & IND. REL. COMMITTEE:  4-0, 4/6/16
           AYES:  Mendoza, Stone, Leno, Mitchell
           NO VOTE RECORDED:  Jackson

           SUBJECT:   Workers compensation


          SOURCE:    California Professional Firefighters
                     Riverside Police Officers' Association


          DIGEST:  This bill grants an additional year of injury leave for  
          police officers, firefighters, or sheriffs if they suffer a  
          "catastrophic injury at the hands of another" during active duty  
          or through active firefighting operations.
          
          ANALYSIS:  

          Existing law: 

          1)Establishes a workers' compensation system that provides  
            benefits to an employee who suffers from an injury or illness  
            that arises out of and in the course of employment,  
            irrespective of fault.  This system requires all employers to  
            secure payment of benefits by either securing the consent of  
            the Department of Industrial Relations to self-insure or by  
            securing insurance against liability from an insurance company  
            duly authorized by the state.








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          2)Provides for the payment of indemnity benefits if the  
            occupational injury causes temporary or permanent disability  
            which prevents the worker from returning to his or her job.   
            In the case of temporary disability (TD) payments, the benefit  
            is two-thirds of the weekly loss in wages due to disability  
            for up to 104 weeks within five years (Labor Code §§4650,  
            4653, 4654 and 4656).

          3)Provides that certain public employees employed on a regular,  
            full-time basis regardless of their period of service, who  
            incur on the job injury or illness, are entitled to receive  
            disability payment for up to one year.   These employees  
            include:

             a)   City police officers;

             b)   City, county, or district firefighters;

             c)   Sheriffs;

             d)   Inspectors, investigators, detectives, or personnel with  
               comparable titles in any district attorney's office;

             e)   County probation officers, group counselors, or juvenile  
               services officers; and 

             f)   Lifeguards employed by Los Angeles County or the City of  
               San Diego.

            This leave of absence is set forth in Labor Code Section 4850  
            and is sometimes referred to as "4850 leave".

          This bill:

          1)Extends an additional year of injury leave for city police  
            officers, city, county, or district firefighters, and sheriffs  
            if:

             a)   The injured worker is employed on a regular, full-time  
               basis regardless of their period of service; and

             b)   The injured worker suffers a "catastrophic injury at the  
               hands of another" during active duty through the actions of  







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               another or through active firefighting operations without  
               respect to the cause of the fire.

          1)Defines a "catastrophic injury at the hands of another" as  
            including:

             a)   Severe burns; 
             b)   Severe bodily injuries resulting from a building  
               collapse; and 
             c)   Severe bodily injuries resulting from a shooting,  
               stabbing, or other battery.

          3)Excludes peace officers from the City and County of San  
            Francisco and also clarifies that the injury leave cannot be  
            longer than 104 weeks.


          Comments
          
          1)Need for this bill  
           
            As was discussed above, California's workers' compensation  
            system provides a TD indemnity benefit for injured workers who  
            are temporarily unable to return to work.  TD benefits replace  
            up to 66% of an injured workers' pay for up to two years.   
            However, for California's peace officers, state law requires  
            that 100% of the injured worker's pay is provided in lieu of  
            the first year of TD benefits.  This is known as "4850 leave",  
            named after the Labor Code section which creates the leave.

            This bill grants an additional year of paid leave for police  
            officers, sheriffs, and firefighters that suffer a  
            catastrophic injury at the hands of another. An example cited  
            by the author's office is Officer Andrew Tachias, who is with  
            the Riverside Police Department. In 2013, Officer Tachias was  
            ambushed and shot nine times by ex-LAPD Police Officer Charles  
            Dorner. In the same attack, Officer Tachias's partner, Officer  
            Michael Crain, was killed. 

            As of February of this year, Officer Tachias has returned to  
            duty. However, it took him three years of intensive work to be  
            able to do so. While the City of Riverside supported Officer  
            Tachias's efforts to return to active duty, such an outcome is  
            not currently required under existing law. This bill requires  







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            that, in cases like Officer Tachias, the injured officer would  
            be eligible for up to two years of paid leave without  
            reduction.

          2)A Brief Word on Potential Pitfalls with SB 897

            In conversations with Senate Labor and Industrial Relations  
            Committee staff, Senator Roth's office has conveyed that this  
            bill is a work in progress. As this bill moves through the  
            policy process, the author and the Committee may wish to  
            consider a few points:

            "High Velocity Eye Injuries" and the Need for Specificity

            In 2004, the Legislature passed SB 899 (Poochigian, Chapter  
            34), which was a significant reform of the entire workers'  
            compensation system. As a part of the bill, TD benefits were  
            limited to 104 weeks, except in certain specified cases. In  
            those cases, TD benefits were kept at the pre-2004 level of  
            240 weeks. 

            One of the exceptions was for "high velocity eye injuries",  
            which is the type of injury that evokes strong emotions and  
            intuitively makes sense as an exception to the TD cap of 104  
            weeks. However, the statute is silent on what is a high  
            velocity eye injury. Does it involve a projectile? Does the  
            projectile need to be moving at a specific speed? And why  
            should a high velocity eye injury be singled out when a low  
            velocity eye injury could result in a similar injury? As  
            recently as 2009, litigation on if a high velocity eye injury  
            needed to directly involve the eyeball was being heard by the  
            Worker' Compensation Appeals Board.

            In short, specificity in workers' compensation legislation is  
            important. With this bill, the use of the modifier "severe"  
            (such as severe burns or severe bodily injury) is largely  
            undefined. The author may wish to consider specifying what  
            would constitute "severe" in this context. One method may be  
            through the use of the American Medical Association's Guides  
            to the Evaluation of Permanent Impairment (5th Edition). The  
            Guides provide a variety of examples of specific injuries and  
            their impairment classes. As an injured worker's impairment  
            needs to be measured through the use of the Guides under  
            existing law, this could be a useful tool to provide  







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            specificity and avoid unintended litigation.

            Wage Replacement Leave and Disability Retirement

            Under existing law, an injured peace officer may opt for a  
            disability retirement pension, which, barring settlement, must  
            be at least 50% of his or her highest salary. Some  
            stakeholders have argued that 4850 leave simply delays the  
            date of the disability retirement, rather than incentivizing  
            return to work. Senator Roth's Office has stated to the  
            Committee staff that they will attempt to address this issue.

            One possible solution would be to divide the catastrophic  
            leave into two 
          six-month periods. After 18 months of leave (4850 leave plus six  
            months from SB 897), it may be possible for the injured worker  
            and his or her employer to figure out if returning to active  
            duty is feasible. If it is, then an additional six months of  
            leave is granted. If not, the injured worker would still be  
            entitled to six months of TD, perhaps followed by a disability  
            retirement, but would not be eligible for the SB 897 leave.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified4/8/16)


          California Professional Firefighters (co-source)
          Riverside Police Officers' Association (co-source)
          Association for Los Angeles Deputy Sheriffs
          Association of Orange County Deputy Sheriffs
          California Statewide Law Enforcement Association
          Fraternal Order of Police
          Laborers International Union of North America Locals 777 & 792 
          Long Beach Police Officers Association
          Los Angeles County Professional Peace Officers Association
          Los Angeles Police Protective League
          Peace Officers Research Association of California
          Riverside Sheriffs' Association
          Sacramento County Deputy Sheriffs' Association
          Service Employees International Union







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          OPPOSITION:   (Verified4/8/16)


          California Association of Joint Powers Authorities 
          California Special Districts Association 
          California State Association of Counties 
          California State Association of Counties- Excess Insurance  
          Authority 
          California State Sheriffs' Association
          City of Anderson
          City of Fountain Valley
          City of Menifee
          City of Newport Beach
          City of Rancho Cucamonga
          City of Redding 
          City of Sacramento
          City of San Luis Obispo
          City of Torrance
          City of Ventura
          League of California Cities 
          Mayor and City Council of the City of Sacramento
          Rural County Representatives of California


          ARGUMENTS IN SUPPORT:      Proponents note that California's  
          firefighters, police officers, and sheriffs face significant  
          risks on the job, including a higher likelihood of injury.  
          Proponents argue that the existing leave provisions reflect  
          that, as the Governor and Legislature wanted to ensure that a  
          peace officer facing those risks would not face financial  
          devastation. Proponents argue that SB 897 continues this  
          tradition by granting California's firefighters, police  
          officers, and sheriffs an additional year of leave in order to  
          return to active duty after a catastrophic injury. Proponents  
          note that this extra year will allow firefighters, police  
          officers, and sheriffs to heal from their injuries and return to  
          work when they can, rather than rush back to work still injured  
          and possibly hurt themselves and others.  


          ARGUMENTS IN OPPOSITION:       Opponents note that, under  
          current law, police officers, sheriffs, and firefighters have  







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          access to a year of paid leave under Labor Code Section 4850, as  
          well as a year of 2/3 wage replacement through TD benefits, both  
          of which are tax-free benefits. Opponents argue that these  
          benefits are significant, and are paid out by self-insured  
          cities and counties on a pay-as-you-go basis. Opponents argue  
          that requiring additional disability benefits will require  
          cities and counties to remove funding from existing services,  
          without necessarily resulting in the injured police officer,  
          sheriff, or firefighter returning to work. 


          Prepared by:Gideon Baum / L. & I.R. / (916) 651-1556
          4/8/16 14:09:27


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