BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           586 (Huber)
          
          Hearing Date:  8/17/2009        Amended: 7/2/2009
          Consultant:  Bob Franzoia       Policy Vote: L&IR 4-1
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          ____
          BILL SUMMARY: AB 586 would revise existing presumptions that  
          certain medical conditions which arose during the course of  
          employment, that currently apply to specified fire fighters and  
          peace officers, would apply to all fire fighters and peace  
          officers, as defined by specified Labor Codes.  This bill would  
          provide that the existing presumptions for hernia, cancer,  
          leukemia, heart trouble, pneumonia, blood borne infectious  
          disease, methicillin resistant Staphylococcus aureus skin  
          infection, tuberculosis, and meningitis shall apply to all fire  
          fighter and peace officers. 
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Expanded workers' com- $40-$78    $80-$155    $80-$155  General
          pensation presumption                                   
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Under current law, fire fighters and peace officers are granted  
          the benefit of the presumptions of compensability based upon  
          their employer.  Generally, the statutes establishing the  
          presumptions refer to governmental entities, departments or  
          agencies as a means of identifying who may be eligible for the  
          presumption.  This bill would provide that any of the existing  
          presumptions that certain conditions which arose during the  
          course of employment, now applicable to certain fire fighters  
          and peace officers of state and local governments, shall apply  
          to all fire fighters and peace officers as defined by Penal Code  
          Sections 830.1 to 830.38.
           
          Information to determine the fiscal impact of the broader  
          eligibility proposed by this bill is unavailable.  To provide  










          some estimate of the potential impact, the addition of these  
          presumptions will lead to increased costs to the University of  
          California (UC) workers' compensation program because claims  
          that may not have been approved in the past will now  
          automatically be approved under the presumption.  There are  
          approximately 386 peace officers and 45 firefighters within the  
          UC system.  The total amount of workers' compensation benefits  
          provided to UC peace officers and fire fighters in 2008 was  
          $1,548,537.  If increasing the presumptions increases the  
          benefits paid to these persons by five percent to ten percent,  
          the UC will have new costs of $77,426 to $154,854 annually.  The  
          impact of the California State University is likely to be less.

          Cities, counties, and special districts will experience similar  
          cost pressure.