BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
3 (Cedillo)
Hearing Date: 5/28/2009 Amended: As Introduced
Consultant: Bob Franzoia Policy Vote: Labor 4-2
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BILL SUMMARY: SB 3 would provide, for injuries occurring on or
after January 1, 2010, for a supplemental job displacement
benefit (SJDB) in the form of a voucher for up to $6,000 to
cover reeducation and skill enhancement expenses. The SJDB
would expire two years after the day the voucher is furnished to
the employee or five years after the date of injury, whichever
is later. This bill would exempt employers who make an offer of
reemployment or continued employment from providing vouchers.
This bill would require the Administrative Director of the
Division of Workers' Compensation to adopt regulations
implementing the program.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Increased benefit payments Unknown, likely $291 or more
annually General/
for state employees Special
Regulations One time minor, absorbable cost General
* In 2005-06, $12 in SJDBs were paid to state employees
In 2006-07, $135 in SJDBs were paid to state employees
In 2007-08, $291 in SJDBs were paid to state employees
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STAFF COMMENTS: SUSPENSE FILE.
On January 1, 2004, employees became eligible for SJDBs. The
regulations for SJDBs were finalized June 2005 and became
effective August 2005. The current SJDB schedule would apply
only to injuries that occurred before January 1, 2010 and would
be replaced by a single SJDB voucher amount. Employees who are
permanently unable to do their job, and whose employer does not
offer other work, may qualify for SJDBs.
The state paid approximately $10,600 in SJDBs in 2004-05 and
$12,200 in 2005-06. In 2006-07, payments increased to $135,341.
Generally, from the time of injury there is a year of
rehabilitation and then a medical determination of the percent
of disability. Based on 2007-08 cost information on SJDBs, it
appears state payments are increasing. How the amount paid in
SJDBs to state employees would change as a result of this bill,
which provides a lower maximum but eliminates the nexus between
percentage of permanent partial disability and amount of SJDB,
is unknown. The state appropriates general and special funds
(estimated 55-45 percent split) to pay for its any increase in
benefits. The state's 2007-08 workers' compensation costs were
$460 million, a $5.8 million decrease from 2006-07.
This bill is similar to SB 942 (Migden) 2007 and AB 1636
(Mendoza) 2008 which were vetoed by the Governor.