BILL ANALYSIS                                                                                                                                                                                                    






                 Senate Committee on Labor and Industrial Relations
                               Mark DeSaulnier, Chair

          Date of Hearing: June 23, 2010               2009-2010 Regular  
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:Yes
                                                       Urgency: No
          
                                  Bill No: AB 2253
                                    Author: Coto
                          Version: As Amended May 28, 2010
          

                                       SUBJECT
          
                     Workers' compensation: cancer presumption.


                                      KEY ISSUE

          Should the Legislature lengthen the maximum statute of  
          limitations for a workers' compensation cancer presumption for  
          peace officers and firefighters from 5 years to 10 years?
          

                                       PURPOSE
          
          To increase the availability of cancer treatments within the  
          workers' compensation system for firefighters and peace  
          officers.


                                      ANALYSIS
          
           Existing law:

              a)   Establishes a workers' compensation system that provides  
               benefits to an employee injured at work, 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.

             b)   Provides that, for firefighters and peace officers,  
               cancer is presumed to have arisen during the course of  









               employment.

             c)   Requires the Workers' Compensation Appeals Board (WCAB)  
               to find that the cancer is employment-related unless the  
               employer proves that the cancer is not related to  
               employment.

             d)   Specifies that for the presumption to apply, the safety  
               officer must be in service at the time the cancer manifests  
               itself, or, if the employee has separated from the  
               employer, the statute of limitations has not expired.  The  
               statute of limitations is different for each employee,  
               based on a formula that grants three months for each year  
               of service to that employer, with the period commencing on  
               the last date actually worked.

             e)   Provides that, regardless of the time period for the  
               statute of limitations calculated using the three months  
               per year of service formula, in no case shall the statute  
               of limitations be more than  five years  from the date last  
               worked by the employee for that employer.

             f)   Provides that the compensation that is awarded for  
               cancer treatment includes full hospital, surgical, medical  
               treatment, disability indemnity, and death benefits, as  
               provided by the Division of Workers Compensation (DWC).

           This Bill  extends the five-year cap that modifies the three  
          months for one year of service formula to a  ten-year  cap. 

           This bill  also specifies that the provision of law establishing  
          the cancer presumption may be cited as the William Dallas Jones  
          Cancer Presumption Act of 2009.


                                      COMMENTS
          
          1.  Need for this bill?

             According to the author and sponsors of the bill, the original  
            purpose of the workers' compensation cancer presumption for  
            public safety workers and firefighters, which was enacted over  
          Hearing Date:  June 23, 2010                             AB 2253  
          Consultant: Gideon L. Baum                               Page 2

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            20 years ago, was to recognize that it was probable that many  
            cancers that afflicted safety officers were job-related, but  
            due to the passage of time during the latency period, it was  
            difficult to prove that relation to the job.  Subsequent  
            research in the cancer arena suggests that carcinogens can  
            impact the body well beyond their initial impact and well  
            beyond the five-year window in current law.

            According to the National Cancer Institute, "Carcinogens act  
            through a multistep process that initiates a series of genetic  
            alterations ("mutations") and stimulates cells to proliferate.  
             A prolonged period of time is usually required for these  
            multiple steps. There can be a delay of several decades  
            between exposure to a carcinogen and the onset of cancer. For  
            example, young people exposed to carcinogens from smoking  
            cigarettes generally do not develop cancer for 20 to 30  
            years."  

            Several studies have suggested that firefighters have a higher  
            incidence of certain cancers.  A May 2007 Study from the  
            School of Public Health at UC Berkeley found an increased  
            incidence of testicular cancer (odds ratio = 1.54, 95%  
            confidence interval: 1.18-2.02), melanoma (1.50, 1.33-1.70),  
            brain cancer (1.35, 1.06-1.72), esophageal cancer (1.48,  
            1.14-1.91), and prostate cancer (1.22, 1.12-1.33).  While a  
            2008 RAND study disputed that there was a higher incidence of  
            cancer among firefighters, other studies done in  
            Massachusetts, Florida, and Seattle and Tacoma, Washington  
            found similar results to the UC Berkeley study.


          2.  Who was William "Dallas" Jones?
           
            William "Dallas" Jones was a dedicated firefighter in Los  
            Angeles County for nearly 35 years.  The passion and  
            professionalism with which he conducted his duties as  
            President for Los Angeles County Firefighters Local 1014 and  
            later as Secretary/Treasurer for California Professional  
            Firefighters made him highly qualified to lead the state  
            Office of Emergency Services as Director from 1999-2004.   

            During his time at OES, Dallas responded to and was on the  
          Hearing Date:  June 23, 2010                             AB 2253  
          Consultant: Gideon L. Baum                               Page 3

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            ground during a myriad of emergencies, including the  
            devastating fire storms in 2003 that engulfed Southern  
            California.  After leaving that post, he continued his work by  
            returning as Secretary-Treasurer for the California  
            Professional Firefighters, even after he was diagnosed with  
            cancer in 2007.  He ultimately succumbed to cancer in 2008.   
            This bill is named after him as a memorial to his life and his  
            service.

          3.  Proponent Arguments  :
            
            According to the author, in the course of performing their  
            job-related duties, firefighters and other public safety  
            personnel routinely come into contact with materials known to  
            cause various types of cancer.  Since the original cancer  
            presumption statute was enacted over two decades ago, research  
            and anecdotal information reveal that some industrially-caused  
            cancers actually manifest themselves well-beyond the existing  
            60-month statute of limitations given the complex synergistic  
            effects of multiple compound exposures, as well as the rapidly  
            growing introduction of new chemicals and industrial compounds  
            into our environment.  Consequently, there is a critical need  
            to strike the cap in current law.

            Proponents note that recent scientific developments have shown  
            that the original statute of limitations provision is contrary  
            to the purposes of the presumption.  Several of the cancers  
            most closely associated with the firefighters and their  
            profession have a latency period longer than 60 months.   
            Proponents cite a review of The Risk of Cancer in Firefighters  
            by Anne L Golden, PhD, Steven B Markowitz, PhD, and Philip J  
            Landrigan, MD, MSc, as published in 1995 in the Occupational  
            Medicine: State of the Art Reviews, which found that the  
            latency period for most of the relevant cancers associated  
            with exposure to chemical carcinogens is likely to be at least  
            three or four decades.

          4.  Opponent Arguments  :

            Opponents of the measure, which includes several public  
            entities and associations of public entities, cite a 2004 WCAB  
            ruling that held that the public employer must, in order to  
          Hearing Date:  June 23, 2010                             AB 2253  
          Consultant: Gideon L. Baum                               Page 4

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            rebut the cancer presumption, "explicitly demonstrate that  
            medical or scientific research has shown that there is no  
            reasonable inference that exposure to known carcinogen or  
            carcinogens is related to [the cancer] or causes the  
            development of the cancer."  They conclude that this standard  
            makes it virtually impossible to rebut the presumption, and  
            that therefore the bill makes any cancer any safety officer  
            ever contracts compensable through the workers' compensation  
            system.
                The California Department of Industrial Relations (DIR) is  
            also in opposition to AB 2253.  DIR believes that AB 2253  
            would be a vast expansion of the cancer presumption for fire  
            fighters and peace officers, increasing the number of  
            non-industrial cancer cases found to be compensable workers'  
            compensation illnesses.  DIR believes that this expansion will  
            increase costs to the state and local agencies that employ  
            firefighters and peace officers, creating an unduly long  
            period of unknown liability for those agencies.

          5.  Prior Legislation  :

            AB 128 (Coto) of 2009 would have increased the statute of  
            limitations formula to run for each year served, and would  
            have also removed the cap of time accrued under that formula.   
            AB 128 was held under submission by the Assembly  
            Appropriations Committee.


                                       SUPPORT
          
          California Professional Firefighters - Sponsor
          California Association of Highway Patrolmen - Co-sponsor
          CDF Firefighters Local 2881 - Co-Sponsor
          Peace Officers Research Association of California - Co-sponsor
          Association for Los Angeles Deputy Sheriffs
          California Applicants' Attorneys Association
          California Nurses Association/National Nurses Organizing  
          Committee
          International Association of Fire Fighters
          National Peace Officers and Firefighters Benefit Association
          Orange County Professional firefighters' Association
          Riverside Sheriffs' Association
          Hearing Date:  June 23, 2010                             AB 2253  
          Consultant: Gideon L. Baum                               Page 5

          Senate Committee on Labor and Industrial Relations 
          








          

                                     OPPOSITION
          
          Acclamation Insurance Management Services (AIMS)
          Allied Managed Care (AMC)
          California Association of Joint Powers Authorities
          California Chamber of Commerce
          California Coalition on Workers' Compensation
          California Highway Patrol
          California Special Districts Association
          California State Association of Counties
          City of San Marcos
          City of Santa Rosa
          City of Vista
          County of Orange Board of Supervisors
          CSAC Excess Insurance Authority (a California Joint Powers  
          Authority)
          Department of Industrial Relations
          Howard Jarvis Taxpayers Association
          League of California Cities
          Los Angeles County Board of Supervisors
          Regional Council of Rural Counties


















          Hearing Date:  June 23, 2010                             AB 2253  
          Consultant: Gideon L. Baum                               Page 6

          Senate Committee on Labor and Industrial Relations