BILL ANALYSIS �
AB 1145
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Date of Hearing: January 19, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1145 (Cedillo) - As Amended: January 4, 2012
Policy Committee: InsuranceVote:9 -
1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill replaces the current supplemental job displacement
benefit (SJDB) schedule with a single voucher for up to $6,000
to cover reeducation and skill enhancement expenses following a
work related injury. Specifically, this bill:
1)Specifies that employees suffering workplace injuries that
occur on or after January 1, 2012 shall be eligible for a
$6,000 SJDB voucher.
2)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.
3)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.
4)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.
5)Requires the Administrative Director of the Division of
Workers' Compensation to adopt regulations necessary to
AB 1145
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implement the bill's provisions.
FISCAL EFFECT
1)Minor net special fund/GF 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
1)Rationale . Under current law the amount of the SJDB benefit is
tied to the amount of permanent disability awarded to an
employee. Many times, an employee is eligible for a voucher
long before he or she has received a final award. The process
of awarding final permanent disability benefits can sometimes
take years. This bill aligns SJDB benefits with current law
on permanent disability benefits, which requires an employer
to begin providing permanent disability benefits based on a
reasonable estimate of the amount of permanent disability due.
2)Workers' Compensation Coverage . The State of California, as an
employer, and many cities and counties are self-insured for
workers' compensation claims. Payments are treated in a pay as
you go manner. Therefore, any increase in costs has a direct
impact on state and local funds. For non-self-insured
employers, premiums are paid through a private insurer or the
State Compensation Insurance Fund (SCIF). Increased costs for
these employers would be evidenced through potentially higher
premiums.
3)Related Legislation . This bill is virtually identical to AB
211 from 2011. That bill was vetoed by Gov. Brown, who
expressed concern about making piecemeal changes to the
Workers' Compensation System, rather than a comprehensive
reform that addresses both the costs and benefits of the
system.
AB 1145
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Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081