BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 897| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- VETO Bill No: SB 897 Author: Roth (D), et al. Amended: 8/19/16 Vote: 21 SENATE LABOR & IND. REL. COMMITTEE: 4-0, 4/6/16 AYES: Mendoza, Stone, Leno, Mitchell NO VOTE RECORDED: Jackson SENATE FLOOR: 35-0, 5/23/16 AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Fuller, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Nguyen, Nielsen, Pan, Roth, Stone, Vidak, Wieckowski NO VOTE RECORDED: Gaines, Morrell, Pavley, Runner, Wolk SENATE FLOOR: 36-1, 8/25/16 AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Fuller, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Nguyen, Nielsen, Pan, Pavley, Roth, Stone, Vidak, Wieckowski, Wolk NOES: Gaines NO VOTE RECORDED: Huff, Morrell ASSEMBLY FLOOR: 71-2, 8/22/16 - See last page for vote SUBJECT: Workers compensation SOURCE: California Professional Firefighters Riverside Police Officers Association SB 897 Page 2 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. 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; SB 897 Page 3 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 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 the collapse of a building; and c) Severe bodily injuries resulting from a shooting, stabbing, or other battery. 2)Defines "severe" as the loss of limb, cognitive function, or other major bodily function that substantially jeopardizes the injured worker's permanent ability to regain maximum function. 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. SB 897 Page 4 FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified8/22/16) California Professional Firefighters (co-source) Riverside Police Officers Association (co-source) Association for Los Angeles County Deputy Sheriffs Association of Orange County Deputy Sheriffs Bonita-Sunnyside Fire Protection District California Applicant's Attorney Association California School Employees Association, AFL-CIO 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 Orange County Deputy Sheriffs Orange County Professional Firefighters Association, Local 3631 Peace Officers Research Association of California Riverside Sheriff's Association Sacramento County Deputy Sheriffs' Association San Bernardino Police Officers Association SEIU California OPPOSITION: (Verified8/22/16) Bonita-Sunnyside Fire Protection District California Association of Joint Powers Authorities California Coalition of Workers' Compensation California Insurance Pool Authority California Police Chiefs Association California Special Districts Association California State Association of Counties California State Association of Counties- Excess Insurance Authority California State Sheriffs' Association SB 897 Page 5 City of Anderson City of Buena Park City of Chino City of Fountain Valley City of Grover Beach City of Menifee City of Monrovia City of Montclair City of Newport Beach City of Plymouth City of Rancho Cucamonga City of Redding City of San Luis Obispo City of Santa Maria City of Torrance City of Ventura City of Villa Park City of Visalia CSAC Excess Insurance Authority League of California Cities Los Angeles County Board of Supervisors Mayor and City Council of the City of Sacramento Public Agency Risk Sharing Authority of California 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. SB 897 Page 6 Opponents note that, under current law, police officers, sheriffs, and firefighters have 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. GOVERNOR'S VETO MESSAGE: I am returning Senate Bill 897 without my signature. This bill doubles from one to two years special leave benefits for police officers, firefighters, or sheriffs who are disabled by a qualifying catastrophic injury. This leave is required to be provided at full salary and tax-free, resulting in take home pay that is higher than pre-injury wages. I was concerned when told this bill was prompted by a City of Riverside police officer who nearly lost his health benefits while on temporary disability. In that case, the City chose to extend the officer's benefits. Upon closer review, I have not found any other city which terminates the health benefits of police officers while they are on temporary disability. As noted in my veto of AB 1451 last year, this disability leave benefit drives up costs significantly. Many local agencies are under significant financial stress. They must consider employee benefit increases in light of competing demands for critical services and long term pension and health care debts. In light of all this, I believe the decision on how to handle cases such as this is best left to the local SB 897 Page 7 jurisdiction. ASSEMBLY FLOOR: 71-2, 8/22/16 AYES: Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray, Grove, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NOES: Achadjian, Harper NO VOTE RECORDED: Frazier, Beth Gaines, Gordon, Hadley, Melendez, Obernolte, Olsen Prepared by:Gideon L. Baum / L. & I.R. / (916) 651-1556 10/19/16 10:46:05 **** END ****