BILL ANALYSIS �
AB 211
Page 1
GOVERNOR'S VETO
AB 211 (Cedillo)
As Introduced January 31, 2011
2/3 vote
INSURANCE 10-0 APPROPRIATIONS 12-5
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|Ayes:|Solorio, Charles |Ayes:|Fuentes, Blumenfield, |
| |Calderon, Carter, Feuer, | |Bradford, Charles |
| |Hayashi, Miller, Olsen, | |Calderon, Campos, Davis, |
| |Skinner, Torres, | |Gatto, Hall, Hill, Lara, |
| |Wieckowski | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
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|ASSEMBLY: |54-21|(May 19, 2011) |SENATE: |24-13|(August 30, |
| | | | | |2011) |
| | | | | | |
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SUMMARY : Requires vouchers for supplemental job displacement
benefits under the workers' compensation system to be provided
to injured workers no later than 80 days after the first medical
report indicates 1) that there will be some degree of permanent
partial disability; and, 2) the injured worker is permanent and
stationary. Specifically, this bill :
1)Provides that an employer is not liable for the supplemental
job displacement benefit if an offer of qualifying employment
is made no later than 60 days after the first report by a
treating physician, qualified medical evaluator, or an agreed
medical evaluator that indicates there will be partial
permanent disability and the injury is permanent and
AB 211
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stationary.
2)Requires the employer to provide the supplemental job
displacement voucher no later than 20 days after the time to
make a qualifying job offer has expired.
3)Specifies that the supplemental job displacement benefit shall
be in the form of a voucher worth $6,000 for qualified
expenses.
4)Expands the purposes for which the voucher may be used to
include up to $1,000 for the purchase of computer equipment,
payment of occupational licensing, certification, or
examination fees, the purchase of necessary tools, and up to
$500 for miscellaneous expenses that would not require
documentation.
5)Specifies that the voucher shall be valid for two years.
6)Provides that an agreement to settle or release a claim for
the supplemental job displacement benefit is valid only if
approved by a workers' compensation judge.
7)Requires the Administrative Director of the Division of
Workers' Compensation to adopt regulations necessary to
implement the bill's provisions.
8)Specifies that the provisions of this bill shall apply to
injuries occurring on or after January 1, 2012.
EXISTING LAW :
1)Provides for a comprehensive system of workers' compensation
benefits to be paid to employees who are injured during or in
the course of employment, including a supplemental job
displacement benefit.
2)Provides that, under specified instances, when an injury
causes permanent partial disability and the injured employee
does not return to work for the employer within 60 days of the
termination of the temporary disability, the injured employee
AB 211
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shall be eligible for a supplemental job displacement benefit
in the form of a voucher for education-related retraining or
skill enhancement at state-approved or accredited schools, in
accordance with a schedule ranging from $4,000 when the
permanent partial disability is less than 15% to $10,000 when
the permanent partial disability is between 50% and 99%.
3)Provides that the employer is not liable for the supplemental
job displacement benefit if the employer offers qualifying
employment within 30 days of the termination of temporary
disability benefits, and the employee rejects the offer.
4)Specifies that the voucher may be used for tuition, fees,
books, and other education or skill enhancement expenses. No
more than 10% of the voucher moneys may be used for vocational
or return to work counseling.
5)Defines "permanent and stationary" as the point where further
medical treatment will not improve the disabling effects of
the injury.
6)Requires the employer to provide the employee within 10 days
of the last payment of temporary disability the information
about these rights.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Minor net special fund/General Fund costs/savings.
Under current law, the amount of the vouchers range from
$4,000 to $10,000. This bill standardizes that amount to
$6,000. To the extent that injured workers receive more than
they would under the old system, costs for the vouchers would
increase. However, it is just as likely that injured workers
will receive less than they would have under the current
system, which would result in a savings.
2)Minor costs associated with drafting the required regulations.
COMMENTS :
AB 211
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Purpose . This bill is intended to assist partially permanently
disabled workers to obtain appropriate retraining to enable them
to return to work. There is a broad consensus that effective
return-to-work incentives are the best way to achieve lower
costs for employers and better long-term outcomes for employees.
Background . The author and the sponsor, Voters Injured at Work,
point out that current law ties the amount of the supplemental
job displacement benefit to the percentage of permanent
disability awarded. They further point out that, in most cases,
a worker is eligible for the voucher long before he or she
receives a final permanent disability award, and this process
can take several years before the final award is made. In the
meantime, the worker has no ability to use the voucher during
any determination or dispute over the percentage of permanent
disability. The longer the delay, the smaller the chance that
an injured worker will successfully use the voucher to help
return to work.
Support . Supporters point out that California has one of the
worst return-to-work rates in the country, and believe that
improving access to training programs for those workers who
cannot return to their prior jobs will enhance the chances for
successful outcomes.
Employer and insurer perspective . Employers and insurers have
generally taken either a "support if amended" or a "working with
the author" position on this bill. They recognize that current
law simply does not work, and that effective return to work
incentives are a positive thing. There has also been conceptual
agreement about how to amend the bill to better accomplish this
goal. However, for purposes of the hearing of this bill on
April 13, 2011, language has yet to be finalized. The Assembly
Insurance Committee staff has been advised that there are no
objections by employers or insurers to this bill moving forward.
Prior legislation . SB 3 (Cedillo) of 2010 proposed the same
provisions as this bill. It was held in the Senate
Appropriations Committee. AB 1636 (Mendoza) of 2007 also
addressed the supplemental job displacement benefit, but
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proposed a different solution to the problem. It was vetoed by
the Governor.
GOVERNOR'S VETO MESSAGE :
"This bill represents an effort to improve benefits for workers
by providing vouchers for those who need additional training in
order to return to employment after permanently disabling
injuries. I am, however, reluctant to enact piecemeal changes to
the Workers' Compensation system in the absence of more
comprehensive reform that addresses both the cost and benefits
under the system."
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086
FN: 0002972