BILL ANALYSIS                                                                                                                                                                                                    �





                                                                  AB 1155

                                                                  Page  1


          GOVERNOR'S VETO
          AB 1155 (Alejo, et al.)
          As Amended  August 30, 2011
          2/3 vote
           
           
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          |ASSEMBLY:  |47-26|(May 12, 2011)  |SENATE: |24-14|(September 7,  |
          |           |     |                |        |     |2011)          |
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          |ASSEMBLY:  |51-27|(September 9,   |        |     |               |
          |           |     |2011)           |        |     |               |
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          Original Committee Reference:    INS.  

           SUMMARY  :  States that the percentage of disability determined by 
          a physician to have been due to factors other than the 
          industrial injury shall not include consideration of race, 
          religious creed, color, national origin, age, gender, marital 
          status, sex, sexual orientation, or genetic characteristics. 

           The Senate amendments  :

          1)Delete the legislative findings in the bill as passed by the 
            Assembly, and insert different legislative findings that 
            provide:

               a)     Workers' compensation benefits should not be based 
                 on risk factors or personal characteristics;

               b)     The Legislature intends that risk factors or 
                 personal characteristics, including race, religious 
                 creed, color, national origin, age, gender, marital 
                 status, sex, sexual orientation, or genetic 
                 characteristics, not be used to reduce or deny an injured 
                 worker his or her rightful benefits; and,











                                                                  AB 1155

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               c)     It is not the intent of the legislation that 
                 apportionment be restricted if there is a documentable 
                 condition that is nonindustrial or not attributable to 
                 the employer's employment of the injured worker.

          2)Delete the prohibition that the characteristics noted above 
            "shall not be considered a cause or other factor of 
            disability," and instead provide that the percentage of 
            disability the physician determines to be caused by other 
            factors "shall not include consideration of" these 
            characteristics.

           EXISTING LAW  :

          1)Provides for a comprehensive system of workers' compensation 
            benefits for injuries to employees arising out of or in the 
            course of employment, including permanent disability benefits.

          2)Allows for the apportionment of a condition, based on the 
            treating physician's report, to nonindustrial causes, with the 
            resulting reduction of the permanent disability benefit to the 
            extent the condition was not caused as a result of employment.

          3)Does not explicitly address application of apportionment 
            involving the characteristics noted above, but unpublished 
            case law has been consistent with the legislative findings 
            adopted in the Senate.

           AS PASSED BY THE ASSEMBLY  , this bill provided that race, 
          religious creed, color, national origin, age, gender, marital 
          status, sex, sexual orientation, or genetic characteristics 
          shall not be considered a cause or other factor of disability 
          with respect to apportionment of permanent disability.

           COMMENTS  :  Proponents of this bill have argued that, while it is 
          true that case law has not been published contrary to the 
          purposes of the bill, physicians consistently apportion 
          improperly, thus generating litigation to overcome improper 
          reliance on immutable characteristics.  The goal of the bill is 
          to provide a clear statement to guide physicians' apportionment 
          decisions.










                                                                  AB 1155

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          The Senate amendments, while not resulting in the removal of 
          opposition, are the proponents' effort to make the bill a 
          simpler statement of its intent, and unlikely to cause confusion 
          or litigation in the workers' compensation adjudication system.

           GOVERNOR'S VETO MESSAGE  :

          "This bill would state that workers' compensation injury 
          determinations shall not include consideration of race, 
          religious creed, color, national origin, age, gender, marital 
          status, sex, sexual orientation, or genetic characteristics.

          "The courts already recognize that apportioning a disability 
          award to any of these classifications is antithetical to our 
          states' non-discrimination policies. The courts also recognize 
          that apportioning to an actual non-industrial condition that 
          contributes to causing a disability is permissible and required 
          by the principle that apportionment is based on causation. 

          "This bill would not change existing law as interpreted by the 
          courts to date. This bill would, however, generate new 
          litigation over questions of whether it is intended to change 
          existing interpretations. At best, that additional litigation 
          would add to employers' costs for workers' compensation. At 
          worst, this bill could disturb the appropriate interpretation of 
          existing law that is already taking shape in the courts."
           

          Analysis prepared by  :    Mark Rakich / INS / (916) 319-2086  
           

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