BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1696
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          Date of Hearing:   May 5, 2010

                           ASSEMBLY COMMITTEE ON INSURANCE
                                 Jose Solorio, Chair
                AB 1696 (Bill Berryhill) - As Amended:  April 6, 2010
           
          SUBJECT  :   Workers' compensation: death benefits to dependent  
          children

           SUMMARY  :   Extends workers' compensation death benefits until  
          the youngest child reaches age 19 if the parent served in a  
          specified public position and was killed on duty.  Specifically,  
           this bill  provides that notwithstanding existing law, the  
          payment of death benefits shall continue until the youngest  
          child attains 19 years of age if the child is still attending  
          high school and is receiving the death benefits as a child of  
          one of the following persons who was killed in the performance  
          of duty:

             a)   a member of a sheriff's office, 

             b)   member of a police or fire department of a city, county,  
               or other public or municipal corporation, 

             c)   a peace officer, 

             d)   an individual who is not a peace officer but has the  
               power of arrest or the power to serve warrants or to  
               maintain the custody of prisoners or inmates of county  
               jails, 

             e)   an active firefighting member of the Department of  
               Forestry and Fire Protection, or

             f)   a member of any county forestry or firefighting  
               department or unit.

           EXISTING LAW  :

          1)Provides that in the case of one or more totally dependent  
            minor children, the death benefits under workers' compensation  
            shall continue until the youngest child attains the age of 18,  
            or until the death of a child physically or mentally  
            incapacitated from earning.  









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          2)Specifies that in this instance, the death benefits shall be  
            paid in the same manner and amount as temporary total  
            disability indemnity would have been paid to the deceased  
            parent.  The minimum payment of this benefit is $224 per week.  
             

           FISCAL EFFECT :   Undetermined.

           COMMENTS  :

           1)Purpose  .  The purpose of this bill is to extend workers'  
            compensation benefits payable to the totally dependent minor  
            children of a deceased firefighter or law enforcement officer  
            until the youngest child reaches 19 years of age, provided he  
            or she is still attending high school.

           2)Background  .  Existing law provides for the payment of workers'  
            compensation death benefits to the families of deceased  
            workers.  Monthly death benefits are paid until the youngest  
            dependent child reaches the age of 18.

          The author states that in 2005, Sgt. Howie Stevenson became the  
            first officer in the history of the Ceres Police Department to  
            die in the line of duty, leaving behind a wife and two  
            children.  After his tragic death, Sgt. Stevenson's family  
            began receiving workers' compensation survivor benefits.   
            However, when the youngest child turned 18 years of age the  
            benefits ceased to be paid to the family, placing an immediate  
            and considerable burden on the household when the child still  
            lived at home and was attending high school.  In that  
            instance, half of the family's income was eliminated.

           3)Arguments in Support  .  The author states that this bill is  
            similar to provisions of federal law.  The Social Security  
            Administration allows a dependent child receiving Social  
            Security benefits to do so until he or she reaches age 19,  
            graduates from high school, or ceases to attend high school on  
            a full-time basis.

          The author and the California Professional Firefighters also  
            state that public safety officials put their lives on the line  
            everyday to protect the health and safety of Californians.  In  
            the rare and tragic case of an officer's or firefighter's  
            death, the surviving family suffers considerable burdens that  
            state and local government can only begin to address.  The  








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            California State Firefighters' Association states that this  
            bill is in keeping with the spirit and intent of existing law  
            to provide these families with as much assistance as possible  
            in their time of greatest need.

           4)Arguments in Opposition  .  The CSAC Excess Insurance Authority  
            states that one provision of the bill goes too far.  For  
            example, a child who is still attending high school at age 19  
            due to poor performance in prior years would be eligible for  
            additional benefits at the employer's expense.  This authority  
            states that a fair compromise would be to provide death  
            benefits until the end of the school year during which the  
            dependent minor turns 18.  Absent the inclusion of such an  
            amendment, this authority opposes the bill.

          The California Coalition on Workers' Compensation (CCWC) opposes  
            an extension of death benefits past the point where children  
            legally become adults.  Death benefits for minor children are  
            specifically designed to carry the last minor child of a  
            deceased employee into adulthood.  There is no demonstrated  
            reason to expand the benefit only to the children of public  
            safety officers, and CCWC has not identified any factor that  
            makes children of public safety officers more deserving of  
            additional survivor benefits than the children of any other  
            deceased employee.

           5)Scope of the bill  .   This bill is intended to cover active  
            firefighters' and peace officers' dependents who are receiving  
            death benefits.  However, the qualifier "active" for  
            firefighters appears only once, and the language addressing  
            peace officers does not have limitations for clerical or other  
            employees that are not engaged in active law enforcement.  The  
            author should consider clarifying the bill so that it applies  
            only to the active firefighters and peace officers to whom  
            these special workers' compensation benefits have historically  
            been provided.

           6)Technical amendment  .  The bill contains the phrase  
            "notwithstanding subdivision (a)", apparently to make the  
            exception from the age limitation in subdivision (a).   
            However, there are other provisions of subdivision (a) that  
            ought to continue to apply, such as the "manner and amount"  
            that benefits are paid.  Thus, it is suggested that the bill  
            be amended by adding the phrase "the age limitation in" after  
            the word "Notwithstanding" on page 2, line 14.








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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Highway Patrolmen (CAHP)
          California Professional Firefighters
          California State Firefighters' Association
          CDF Firefighters Local 1281
          Peace Officers Research Association of California

           Opposition 
           
          California Coalition on Workers' Compensation
          CSAC Excess Insurance Authority

           
          Analysis Prepared by  :    Manny Hernandez / INS. / (916) 319-2086