BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   AB 375|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 375
          Author:   Skinner (D), et al.
          Amended:  8/31/11 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM.  :  5-1, 6/22/11
          AYES:  Lieu, DeSaulnier, Leno, Padilla, Yee
          NOES:  Wyland
          NO VOTE RECORDED:  Runner

           SENATE APPROPRIATIONS COMMITTEE  :  6-3, 8/25/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Runner

           ASSEMBLY FLOOR  :  49-25, 6/1/11 - See last page for vote


           SUBJECT  :    Workers compensation: hospital employees:  
          presumption

           SOURCE  :     California Nurses Association/National Nurses 
          Organization 
                      Committee


           DIGEST  :    This bill provides, with respect to hospital 
          employees, who provide direct patient care in an acute care 
          hospital, that the term "injury" include a blood borne 
          infectious disease or methicillin-resistant Staphylococcus 
          aureus that develops or manifests itself during the period 
          of the person's employment with the hospital.  This bill 
          further creates a disputable presumption that the above 
                                                           CONTINUED





                                                                AB 375
                                                                Page 
          2

          injury arises out of and in the course of the person's 
          employment if it develops or manifests, as specified.

           Senate Floor Amendments  of 8/31/11 add a provision to 
          define an "acute care hospital" for the purposes of the 
          bill.

           ANALYSIS  :    Existing law establishes a workers' 
          compensation system that provides benefits to an employee 
          who suffers from an injury or illness that arises out of 
          and in the course of employment, 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.

          Existing law creates a series of disputable presumptions of 
          an occupational injury for peace and safety officers for 
          the purposes of the workers' compensation system.  These 
          presumptions include:

           Heart disease.
           Hernias.
           Pneumonia.
           Cancer.
           Meningitis.
           Tuberculosis.
           Methicillin-Resistant Staphylococcus aureus (MRSA) skin 
            infections.
           Bloodborne infectious disease.

          The compensation awarded for these injuries must include 
          full hospital, surgical, medical treatment, disability 
          indemnity, and death benefits, as provided by workers 
          compensation law.  These presumptions tend to run for 5 to 
          10 years commencing on their last day of employment, 
          depending on the injury and the peace officer 
          classification involved.

          Existing law provides that the presumptions listed above 
          are disputable and may be controverted by evidence.  
          However, unless controverted, the Workers' Compensation 
          Appeals Board must find is accordance with the presumption.

                                                           CONTINUED





                                                                AB 375
                                                                Page 
          3


          This bill:

          1.Creates a disputable presumption of an occupational 
            injury if a hospital employee who provides direct care in 
            an acute care hospital contracts a MRSA skin infection or 
            a bloodborne infectious disease that develops or 
            manifests itself during a period of the person's 
            employment with the hospital. 

          2.Provides that the compensation awarded for a hospital 
            employee who contracts MRSA or a bloodborne infectious 
            disease must include full hospital, surgical, medical 
            treatment, disability indemnity, and death benefits, as 
            provided by workers compensation law.  

          3.Provides that the bloodborne infectious disease 
            presumption must be extended to a hospital employee 
            following termination of service for a period of 180 days 
            and that the MRSA presumption be extended for a period of 
            90 days, commencing with the last date actually worked.

          4.Provides that a bloodborne infectious disease developing 
            or manifesting itself in these cases must not be 
            attributed to any disease existing prior to that 
            development or manifestation.

           Comments
           
           What is MRSA  ?  Staphylococcus aureus, often referred to 
          simply as "staph," are bacteria commonly carried on the 
          skin or in the nose of healthy people. Approximately 25 
          percent to 30 percent of the population is colonized (when 
          bacteria are present, but not causing an infection) in the 
          nose with staph bacteria.  Staph bacteria are one of the 
          most common causes of skin infections in the United States. 
          Most of these skin infections are minor and occur through 
          direct physical contact of the staphylococci with a break 
          in the skin (cut or scrape). The staph can be spread by the 
          infected person to someone else or to an object.  
          Susceptibility to infection depends on factors such as 
          immunity and general state of health. 

          In the past, these staph infections typically have been 

                                                           CONTINUED





                                                                AB 375
                                                                Page 
          4

          easy to treat with an inexpensive, short course, usually 
          well-tolerated antibiotics. Now, in most communities in the 
          U.S., over half of the staph causing skin infections are 
          resistant to commonly used antibiotics, and the infections 
          often return in spite of apparently successful initial 
          treatment.

          MRSA is Staphylococcus aureus that is resistant to the 
          penicillin.  Originally, MRSA was confined to hospitals and 
          long-term care facilities.  Many of these 
          hospital-associated MRSA infections caused very serious 
          complications and were resistant to all oral antibiotics. 

          More recently, a newer, more virulent strain of MRSA has 
          emerged in the community that causes boils, abscesses, and 
          other soft tissue infections that are not linked to 
          previous antibiotic use. It is called community-associated 
          MRSA.  It is generally believed that the 
          community-associated MRSA strains did not originate from 
          the strains of MRSA that cause infections in hospitals and 
          other healthcare facilities.  However, individuals seeking 
          treatment for community-associated MRSA would likely seek 
          treatment in a hospital due to the risks involved.

          Individuals at risk for MRSA include workers in a 
          healthcare setting, individuals visiting patients in a 
          healthcare setting, athletic facilities, dormitories, 
          military barracks, correctional facilities, and daycare 
          centers.  However, MRSA is now found throughout the general 
          community.

           Bloodborne Infectious Diseases in the Workforce  .  
          Currently, the Department of Industrial Relations (DIR) 
          defines bloodborne pathogens and describes the best 
          practices for mitigating them in the workplace.  The 
          regulations (Title 8, Section 5193) define bloodborne 
          pathogens as "pathogenic microorganisms that are present in 
          human blood and can cause disease in humans. These 
          pathogens include, but are not limited to, hepatitis B 
          virus (HBV), hepatitis C virus (HCV) and human 
          immunodeficiency virus (HIV)."

          In a healthcare setting, contact with these pathogens can 
          occur though contact with human tissue and biological 

                                                           CONTINUED





                                                                AB 375
                                                                Page 
          5

          fluids, including blood, semen, saliva, organ and muscle 
          tissue, and skin.  Such contact can occur in a variety of 
          different situations in a hospital setting, such as 
          emergency care, assault by a patient (e.g. biting a 
          treating nurse), and routine medical care involving 
          intravenous needles.

           Prior Legislation  

          AB 1994  (Skinner) of 2010 proposed similar provisions to 
          AB 375, but also included additional conditions to which 
          the presumption would apply, such as back and neck 
          injuries.  AB 1994 was held on the Assembly Appropriations 
          Committee suspense file.

          AB 664 (Skinner) of 2009 was similar to AB 1994.  AB 664 
          was held on the Assembly Appropriations Committee suspense 
          file.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)
           
          Major Provisions                2011-12     2012-13    
           2013-14   Fund
           
          New workers'                                 Minimum $33 to 
          $65 for industrial                           General
            compensation      disability benefit (up to one year), 
            injury presumptionup to $53 for additional temporary
                              disability benefit (up to one 
                         additional
                              year); unknown, potentially major 
                              permanent disability benefits and 
                              medical costs per claim

           SUPPORT  :   (Verified  9/1/11)

          California Nurses Association/National Nurses Organizing 
            Committee (source)
          American Federation of State, County and Municipal 

                                                           CONTINUED





                                                                AB 375
                                                                Page 
          6

          Employees, AFL-CIO
          California Conference Board of the Amalgamated Transit 
          Union
          California Conference of Machinists
          California Official Court Reporters Association
          California Labor Federation
          California National Organization for Women
          California Professional Firefighters
          California Teamsters Public Affairs Council
          Consumer Attorneys of California
          Engineers and Scientists of California
          International Longshore and Warehouse Union
          Professional and Technical Engineers, Local 21
          San Bernardino Public Employees Association
          Union of Health Care Professionals
          UNITE HERE!
          United Food and Commercial Workers-Western States 
          Conference
          United Nurses Association of California
          Utility Workers Union of America, Local 132

           OPPOSITION  :    (Verified  9/1/11)

          Acclimation Insurance Management Services
          Allied Managed Care
          Apha Fund
          Association of California Healthcare Districts
          Association of California Insurance Companies
          California Association of Joint Powers Authorities
          California Chamber of Commerce
          California Coalition on Workers' Compensation
          California Hospital Association
          California Manufacturers & Technology Association
          California Special Districts Association
          California State Association of Counties
          County of San Bernardino
          CSAC Excess Insurance Authority
          Greater Corona Valley Chamber of Commerce
          Irvine Chamber of Commerce
          Los Angeles County Board of Supervisors
          Long Beach Area Chamber of Commerce
          Regional Council of Rural Counties

           ARGUMENTS IN SUPPORT  :    Proponents of this bill believe 

                                                           CONTINUED





                                                                AB 375
                                                                Page 
          7

          that this bill will ensure that nurses are appropriately 
          protected from the pathogenic hazards found in hospitals.  
          Proponents note that current law provides a presumption of 
          occupational injury to public safety officers if they 
          contract a bloodborne illness or MRSA, but nurses who are 
          exposed to both on a routine basis are not provided a 
          similar presumption.  Proponents note that while existing 
          procedures have done much to reduce MRSA exposures, it 
          remains a daily threat to the health of nurses throughout 
          California.  Finally, proponents note that nurses perform a 
          highly specialized and key role in ensuring the health and 
          welfare of the people of California, and they should be 
          able to provide that service without fighting with an 
          insurance company in the event of a serious bloodborne 
          illness or MRSA infection.

           ARGUMENTS IN OPPOSITION  :    The opponents argue that there 
          is no rationale to extend the concept of presumptions to 
          employees who are not in the traditional group - public 
          safety officers - who have received this special benefit 
          due to the special dangers of the work they do.  Because of 
          the unique role that public safety officers play in our 
          society, they have historically received several different 
          and unique benefits, including enhanced retirement rules, 
          special disability retirement rules, enhanced temporary 
          disability rules, and presumptions of compensability.  
          While these enhanced benefits may be appropriate for public 
          safety employees, it does not follow that these rules 
          should be expanded to other classes of employee. 
           
          Opponents argue that there is no evidence that the normal 
          rules governing how injuries or conditions are proven to be 
          job-related are not working properly with respect to the 
          employees and the conditions being addressed by the bill.


           ASSEMBLY FLOOR  :  49-25, 6/1/11
          AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, 
            Galgiani, Gatto, Hall, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Pan, Perea, Portantino, 

                                                           CONTINUED





                                                                AB 375
                                                                Page 
          8

            Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, 
            Yamada, John A. P�rez
          NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Beth Gaines, Grove, Hagman, Halderman, Harkey, 
            Jones, Knight, Logue, Mansoor, Miller, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Silva, Smyth, Valadao, Wagner
          NO VOTE RECORDED: Davis, Garrick, Gordon, Gorell, Jeffries, 
            V. Manuel P�rez


          PQ:do  9/1/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****
          





























                                                           CONTINUED