BILL ANALYSIS �
AB 1145
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Date of Hearing: January 4, 2012
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 1145 (Cedillo) - As Amended: January 4, 2012
SUBJECT : Workers' compensation: supplemental job displacement
benefit
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
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.
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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
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 percent 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 : Undetermined.
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COMMENTS :
1)Purpose . AB 1145 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.
2)Background . The author points out that current law ties the
amount of the supplemental job displacement benefit to the
percentage of permanent disability awarded . He further points
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.
3)Support . Supporters point out that California has one of the
worst return-to-work rates in the country, and that improving
access to training programs for those workers who cannot
return to their prior jobs will enhance the chances for
successful outcomes.
4)Prior Legislation . Last year, AB 211 (Cedillo) contained the
identical language as contained in the January 4, 2012 version
of AB 1145 that is currently before the Committee. The
Governor vetoed AB 211. The veto message provides:
"I am returning Assembly Bill 211 without my signature.
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."
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In addition, SB 3 (Cedillo) of 2010 proposed substantially the
same provisions as AB 211. It was held in the Senate
Appropriations Committee. AB 1636 (Mendoza) of 2007 also
addressed the supplemental job displacement benefit, but
proposed a different solution to the problem. It was vetoed
by the Governor.
5)Employer and insurer perspective . Employers and insurers
generally took either a "support if amended" or a "working
with the author" position on AB 211. They recognize that
current law simply does not work, and that effective return to
work incentives are a positive thing. However, the bill was
never amended after it left this Committee. The unwillingness
of the author of AB 211 to accept proposed amendments led
insurers and employers to seek a veto. Those amendments would
have:
a) Treated "old" claims where the injured worker has
not yet had temporary disability benefits terminated
under the same rules that the bill provides for new
injuries that occur on or after the effective date of the
bill.
b) Harmonized how the benefit is delivered and what is
provided so that "new" and "old" cases are treated the
same.
c) Made conforming changes that addressed internal
inconsistencies within the bill.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation
Opposition
California Coalition on Workers Compensation
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086
AB 1145
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