BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Richard Alarcon, Chair
Date of Hearing: April 23, 2003 2003-2004 Regular
Session
Consultant: Liberty Reiter Sanchez Fiscal:No
Urgency:No
Bill No: SB 414
Author: McClintock
Version: As Introduced February 20, 2003
Subject:
Workers' compensation: injuries
Purpose:
To revise the definition of injury as it pertains to
workers' compensation to mean an injury or disease, which
is certified by a physician using medical evidence based on
objective medical findings.
Analysis:
Existing law defines injury, for the purposes of workers'
compensation, to mean any injury or disease arising out of
the employment.
Presently, when an injured worker seeks the care of a
medical provider for treatment of an occupational injury,
the medical provider must make an initial determination
regarding whether an injury exists. The medical provider
does not make a determination regarding whether the injury
was work related, that determination, if in dispute is made
by the Workers' Compensation Administrative Law Judges
employed by the Division of Workers Compensation. Medical
providers must also make determinations regarding the
extent of the injury sustained by the employee.
Existing law generally provides that a medical provider's
evaluation be supported, to the extent possible, by medical
findings based on standardized examinations and testing
techniques generally accepted by the medical community.
Additionally, the method of measuring a disability is
required to be in accordance with the report of the Joint
Committee of the California Medical Association and
Industrial Accident Commission.
Medical providers are not limited under existing law to
consideration of objective findings alone in medical
determinations for the purposes of workers' compensation.
It is current practice for medical providers to use
subjective as well as objective evidence in making medical
determinations for workers' compensation purposes.
This Bill , redefines "injury" as it pertains to workers'
compensation to require certification by a physician using
"medical evidence based on objective medical findings."
Comments:
(1) Current Practice and Potential Impact:
Currently, there are many injuries or illnesses, which if
required to be diagnosed by objective findings alone,
might remain undiagnosed, untreated and uncompensated.
Examples of these are strain injuries, brain concussions,
chemical exposures, psychiatric injuries and all such
injuries, which are determined mostly by patient pain. A
large majority of back injuries, which comprise one third
of all workers' compensation injuries, initially present
themselves as pain to the patient, but would be
undetectable on an MRI.
Amending the definition of injury in this manner would
not only impact initial diagnoses, and initial
compensability determinations, but also would also impact
the permanent disability rating system, which takes into
account subjective complaints.
(2)Commission on Health and Safety and Workers'
Compensation (CHSWC) /RAND
Study:
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
The RAND Corporation, under contract with CHSWC is
currently conducting an in-depth study of workers'
compensation permanent disability. The CHSWC/RAND study
proposes to include a review of increased reliance on
objective medical findings in disability ratings,
including the extent to which such an approach can
improve consistency and appropriate benefit disbursement.
(3) Proponents :
The California Chamber of Commerce, the sponsors of the
bill, contend that California businesses are being
"rocked by out-of-control workers' compensation insurance
premium increases" and that the workers' compensation
system must be reformed in order to "lower the costs of
providing benefits for injured workers."
The California Association for Health Services at Home
asserts that back injuries to home care workers are
common, and that this bill will help ensure that
"monetary awards are based on injuries in the workplace."
(4) Opponents :
Contend that a bill of this nature will be more costly to
employers in the long run because injured workers will
wait to report their occupational injury until the pain
has manifested itself into something which can be
quantified by objective medical findings. Resultantly,
permanent disability awards and medical costs would
increase.
The California Society of Industrial Medicine and Surgery
argues that the diagnosis of an injury involves a
combination of objective and subjective findings by the
physician. In fact, in many injuries there may be no
objective findings due to the current state of medicine.
They conclude that prohibiting the consideration of
subjective findings would have the effect of not
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
recognizing many valid occupational injuries, and would
lead to employers increased vulnerability to legal
action.
The California Applicants' Attorneys Association (CAAA)
asserts that this bill confuses "disability" with
"impairment," because disability refers to limitations on
the quality of life and the ability to compete in the
labor market and impairment refers to functional
limitations. CAAA argues that it is for this reason that
the American Medical Association has held that objective
medical findings are not appropriate for determining
disability.
(5) Related Legislation :
SB 893 (Morrow), also before this committee today, would
require that objective medical findings be used when
considering the nature of the physical injury or
disfigurement for purposes of determining an injured
workers permanent disability rating.
AB 1481 (Richman), currently in the Assembly Insurance
Committee, would require that all evaluations and reports
prepared by a physician with regard to the degree of
permanent whole body impairment that an employee has
sustained be based on demonstrable medical evidence that
indicates how the impairment restricts the function of
the body.
Support:
California Chamber of Commerce (Sponsor)
Agricultural Council of California -Support in Concept
American Electronics Association
ARV Assisted Living
Association of California Water Agencies
Automotive Aftermarket Services, Inc.
Best Western South Coast Inn
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
Blue Banner Company, Inc.
BMW of North America
Brawley Chamber of Commerce
CA Agricultural Aircraft Association -Support in Concept
CA Assoc. of Nurseries & Garden Centers -Support in Concept
CA Beer and Beverage Distributors -Support in Concept
CA Citrus Mutual -Support in Concept
Ca Cotton Ginners Association -Support in Concept
CA Farm Bureau Federation -Support in Concept
CA Fig Institute -Support in Concept
CA Grocers Association -Support in Concept
CA Lodging Industry Association -Support in Concept
CA Plant Health Association -Support in Concept
CA Restaurant Association -Support in Concept
CA State Association of Counties -Support in Concept
Ca Women for Agriculture -Support in Concept
California Apartment Association
California Association for Health Services at Home
California Association of Independent Business, Inc.
California Association of Joint Powers Authorities
California Cut Flower Commission
California Landscape Contractors Association
California Manufacturers and Technology Association
California Retailers Association
California Sheet Metal and Air Conditioning Contractors
National Association
California Space Authority
Camarillo Chamber of Commerce
Camelot Furniture Corporation (Orange)
Carpenteria Chamber of Commerce
Cathy Martinez (Lompoc)
CB Richard Ellis Brokerage Services of Ventura
Chico Chamber of Commerce
Chocolates a la Carte
DAC International
Dr. Charles Durand
Eagle Road Service and Tire, Inc. (Riverside)
Eastern Municipal Water District
Engineering and Utility Contractors Association
Family First out of Woodland Hills (with 17 individuals
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
from that company also adding their name)
Gandrud Financial Services Coorporation
Gandrud Financial Services Corporation (Carpenteria)
Golden State Builders Exchanges
Goleta Chamber of Commerce
Hobbs Trucking Company
Industrial Mental Supply Co. (Sun Valley)
Insurance Agents and Brokers Legislative Council
Irvine Chamber of Commerce
Irvine Chamber of Commerce
Kristen Amyx, President/CEO, Goleta Valley Chamber of
Commerce
League of California Cities -Support in Concept
Liberty Mutual Group
Maximum Nursery (Carpenteria)
Milk Producers Council -Support in Concept
Nat'l Federation of Independent Business -Support in
Concept
Murrieta Chamber of Commerce
Murrill Forrester, Board Member, Goleta Valley Chamber of
Commerce
Natalie Peterson (Volt Services Group)
National Federation of Independent Business
Orange County Business Council
Perfect Promotional Products (Oxnard)
Piano City (Colton)
R and W Enterprises
Reetz, Fox and Barlett LLP
Roofing Contractors Association of California
Russell A. Goodman, Board Member, Goleta Valley Chamber of
Commerce
Sacramento Metropolitan Chamber of Commerce
SAI Spectrum Assembly, Inc.
Santa Barbara County Farm Bureau
Santa Barbara County Taxpayers Association
Santa Barbara Human Resources Association
Santa Barbara Industrial Association
Sares-Regis Group (Oxnard)
Schnadig Corporation
Select Personnel Services
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
Senderex Cargo Inc. out of LA
Small Business of America, Inc.
Steven Fedde, Board Member, Goleta Valley Chamber of
Commerce
Sun Valley Floral Farms
Sunrise Growers
Sunrise Growers
TBS Teamwork Business Services, Inc. of Santa Maria
The Lafayette Company
Tulare Chamber of Commerce
United Agribusiness League
Ventura Chamber of Commerce
Volt Services Group
Volt Services Group (Abbi Dodds, Sacramento Manufacturing
and Logistics Division)
Volt Services Group (Angie Isais, Recruiting Coordinator)
Volt Services Group (Carla Moorehead)
Volt Services Group (Carmen Meeks)
Volt Services Group (Chad Garrison, Sacramento
Manufacturing and Logistics Division)
Volt Services Group (Costa Mesa)
Volt Services Group (Dolores Torres, Sacramento
Manufacturing and Logistics Division)
Volt Services Group (Donna Persson, Brea)
Volt Services Group (Hope Miller)
Volt Services Group (Jeff Barnett, Torrance)
Volt Services Group (Jeff Langenwalter, Brea)
Volt Services Group (Jessica Ortiz, Roseville)
Volt Services Group (Judy Fox, Anaheim branch)
Volt Services Group (Karen Brooks, Santa Barbara)
Volt Services Group (Kathi Rutherford)
Volt Services Group (Kathryn Rigney, Mission Viejo)
Volt Services Group (Kirk A. Martin, Santa Barbara)
Volt Services Group (Laura Lemmons, Santa Barbara)
Volt Services Group (Linda Shriffman, Los Angeles Branch
Manager)
Volt Services Group (Martin Boggs, Sacramento
Administrative and Accounting Div)
Volt Services Group (Mayra Carranza, Sacramento
Manufacturing and Logistics Div)
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
Volt Services Group (Michele Pagliar, Santa Claritai)
Volt Services Group (Rochelle Burge, Cerritos)
Volt Services Group (Salena Sweet-Robinson, Torrance)
Volt Services Group (Santa Barbara)
Volt Services Group (Sharon Barton, Regional Manager Santa
Barbara)
Volt Services Group (Sherrie Stanton, Anaheim)
Volt Services Group (Sherry Craig, Torrance)
Volt Services Group (Stormy Morris, Sacramento
Manufacturing and Logistics Division)
Volt Services Group (Tania Lewis, Pasadena)
Volt Services Group (Teri Mustol)
Volt Services Group (Tracie Haidle, Sacramento
Manufacturing and Logistics Division)
Volt Workforce Design (Chasin Scott, Menlo Park)
Volt Workforces Design (Alexis Macias, Roseville)
Volt Workforces Design (April Castro, Roseville)
Volt Workforces Design (Carmen Meeks, Roseville)
Volt Workforces Design (Marlee Leavitt, El Cajon)
Volt Workforces Design (Nicole Feltsen, Roseville)
Western Growers Association -Support in Concept
William J. Clark, D.D.S., M.D.
Wollborg/Michelson Personnel Services, Inc. (San Francisco)
Opposition:
California Applicants' Attorneys Association
California Conference Board of the Amalgamated Transit
Union
California Conference of Machinists
California Independent Public Employees Legislative Council
California Labor Federation, AFL-CIO
California Psychiatric Association
California Society of Industrial Medicine and Surgery
California Teamsters Public Affairs Council
Consumer Attorneys of California
Engineers and Scientist of California, IFPTE Local 20,
AFL-CIO
Hotel Employees & Restaurant Employees International Union
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations
Jockeys' Guild
Professional and Technical Engineers, IFPTE Local 21,
AFL-CIO
United Food & Commercial Workers Region 8 States Council
* * *
Hearing Date: April 23, 2003 SB
414
Consultant: Liberty Reiter Sanchez
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Senate Committee on Labor and Industrial Relations