Amended in Senate March 27, 2014

Amended in Assembly May 16, 2013

Amended in Assembly April 4, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1035

Introduced by Assembly Member begin delete Muratsuchi end delete begin insert John A. end insert begin insert  Pérez end insert

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(Coauthor: Assembly Member Bonta)

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February 22, 2013

begin delete An act to amend Sections 53895 and 53895.7 of the Government Code, relating to local government. end delete begin insert An act to amend Section 5406 of, and to add and repeal Section 5406.7 of, the Labor Code, relating to workers’ compensation. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1035, as amended, begin delete Muratsuchi end delete   begin insert John A. Pérez end insert . begin delete Local agencies: financial reports. end delete begin insert Workers’ compensation: firefighters and peace officers. end insert

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Existing law specifies the time period within which various proceedings may be commenced under provisions of law relating to workers’ compensation. With certain exceptions, a proceeding to collect death benefits is required to be commenced within one year from several circumstances, including, but not limited to, from the date of death if it occurs within one year from the date of injury. However, no proceedings may be commenced more than one year after the date of death, nor more than 240 weeks from the date of injury.

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This bill would, only until January 1, 2019, extend the time period to commence proceedings to collect death benefits, if the proceedings are brought by, or on behalf of, a person who was a dependent on the date of death, from 240 weeks from the date of injury to no later than 420 weeks from the date of injury, not to exceed one year after the date of death. This provision would apply only to a specified injury causing death, including cancer, tuberculosis, or a blood-borne infectious disease or methicillin-resistant Staphylococcus aureus skin infections, and would apply only to specified deceased members, including peace officers and active firefighting members. The bill would also include legislative findings and declarations.

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Existing law requires the Controller to annually compile and publish reports of the financial transactions of each county, city, and school district within the state, together with other matters he or she deems of public interest.

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Existing law provides that an officer of a local agency who fails or refuses to make and file his or her financial report within 20 days after receipt of a written notice of the failure from the Controller forfeits to the state a specified amount depending on the amount of total revenue of that local agency. Existing law raises these amounts in the case of a community redevelopment agency and a joint powers agency that issues conduit revenue bonds in the 2nd consecutive year.

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This bill would raise the forfeiture amounts for all agencies.

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This bill would, with respect to an agency that is not a joint powers agency that issues conduit revenue bonds, double these fines if the agency fails to submit the report to the Controller for 2 consecutive years.

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This bill would, for all agencies, triple the fines if the agency fails to submit the report to the Controller for 3 or more consecutive years. The bill would, for an agency that is not a joint powers agency that issues conduit revenue bonds, require the Controller to conduct an independent audit report, the cost of which would be reimbursed by the agency. The bill would specify that an agency that makes a forfeiture or payment pursuant to the above provisions would still be responsible for filing the required financial report.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

The Legislature finds and declares all of the
following:

(a) Firefighters and law enforcement officers who contract
job-caused illnesses have made the same sacrifice, and earned the
same respect, as those who die on the front lines.

(b) Often with occupational cancer and certain other job-caused
illnesses, an officer’s fight for life stretches over year after painful
year.

(c) The families of those public safety officers who fight to live
through a job-related illness should not be penalized after their
loved one has made the ultimate sacrifice.

(d) With the advances in medical science and health that have
been made in recent decades, it is appropriate to examine whether
the existing timeline afforded to a survivor in filing workers’
compensation survivor death benefits claim provides sufficient
time to commence proceedings to collect death benefits.

(e) It is the intent of the legislature to provide adequate time
for a grieving family to file a claim for job related death benefits
without an arbitrary penalty.

(f) It is further the intent of the Legislature that the
Administrative Director of the Division of Workers’ Compensation
collect data pursuant to subdivision (a) of Section 3702.2 for the
purpose of determining whether the extended statute of limitations
established by this act provides an adequate timeline for the
families of fallen firefighters and peace officers to commence
proceedings for the collection of death benefits as provided for in
this act, such that the Legislature and the Governor, when
considering any extension of the date of repeal of Section 5406.7
of the Labor Code, be informed of the facts surrounding the
mortality rate of public safety officers who succumb to these
job-related diseases.

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begin insert SEC. 2. end insert   

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begin insert Section 5406 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

5406.  

begin insert (a) end insert begin insert   end insert Except as provided in Section begin delete 5406.5 end delete begin insert 5406.5,
5406.6, end insert or begin delete 5406.6, end delete begin insert 5406.7, end insert the period within which may be
commenced proceedings for the collection of the benefits provided
by Article 4 (commencing with Section 4700) of Chapter 2 of Part
2 is one year from:

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(a)

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begin insert (1) end insert  The date of death begin delete where end delete begin insert if end insert death occurs within one year from
date of begin delete injury; or end delete begin insert injury. end insert

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(b)

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begin insert (2) end insert  The date of last furnishing of any benefits under Chapter 2
(commencing with Section 4550) of Part 2, begin delete where end delete begin insert if end insert death occurs
more than one year from the date of begin delete injury; or end delete begin insert injury. end insert

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(c)

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begin insert (3) end insert  The date of death, where death occurs more than one year
after the date of injury and compensation benefits have been
furnished.

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No such proceedings may

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begin insert (b) end insert begin insert   end insert begin insert Proceedings shall not end insert be commenced more than one year
after the date of death, nor more than 240 weeks from the date of
injury.

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begin insert SEC. 3. end insert   

end insert

begin insert Section 5406.7 is added to the end insert begin insert Labor Code end insert begin insert , to read: end insert

begin insert

begin insert 5406.7. end insert   

(a) In addition to the timelines established pursuant
to Section 5406, proceedings for the collection of the benefits
provided by Article 4 (commencing with Section 4700) of Chapter
2 of Part 2 may be commenced after 240 weeks from the date of
injury and no later than 420 weeks from the date of injury, but in
no event more than one year after the date of death, if all of the
following criteria are met:

(1) The proceedings are brought for the collection of benefits
by, or on behalf of, a person who was a dependent on the date of
death. The extent of dependency shall be determined in accordance
with the facts as they existed at the time of death of the employee.

(2) The injury causing death is one of the following:

(A) An injury as defined in Section 3212.1 to a person described
in Section 3212.1.

(B) An injury as defined in Section 3212.6 to a person described
in Section 3212.6.

(C) An injury as defined in Section 3212.8 to a person described
in Section 3212.8.

(3) The date of injury is during the person’s active service in
applicable capacities described in Section 3212.1, 3212.6, or
3212.8.

(b) This section does not apply to claims for the collection of
benefits pursuant to Article 4 (commencing with Section 4700) of
Chapter 2 of Part 2 that have already been adjudicated, or
otherwise finalized, or for which the commencement period lapsed
on or before December 31, 2014.

(c) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

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SECTION 1.  

Section 53895 of the Government Code is
amended to read:

53895.  

(a) An officer of a local agency to which Section
53895.7 does not apply who fails or refuses to make and file his
or her report within 20 days after receipt of a written notice of the
failure from the Controller shall forfeit to the state:

(1) Two thousand five hundred dollars ($2,500), in the case of
a local agency with total revenue, in the prior year, of less than
one hundred thousand dollars ($100,000), as reported in the
Controller’s annual financial reports.

(2) Five thousand five hundred dollars ($5,500) in the case of
a local agency with total revenue, in the prior year, of at least one
hundred thousand dollars ($100,000) but less than two hundred
fifty thousand dollars ($250,000), as reported in the Controller’s
annual financial reports.

(3) Ten thousand dollars ($10,000) in the case of a local agency
with total revenue, in the prior year, of at least two hundred fifty
thousand dollars ($250,000), as reported in the Controller’s annual
financial reports.

(b) If an officer of a local agency fails or refuses to make and
file his or her report within 20 days after receipt of a written notice
pursuant to subdivision (a) for two consecutive years, the officer
shall forfeit an amount that is double the amount of the forfeiture
assessed pursuant to subdivision (a).

(c) If an officer of a local agency fails or refuses to make and
file his or her report within 20 days after receipt of a written notice
pursuant to subdivision (a) for three or more consecutive years,
the forfeiture assessed pursuant to subdivision (a) shall be tripled.
In this case, the Controller also shall conduct, or cause to be
conducted, an independent financial audit report. With respect to
a joint powers agency, the audit report shall be consistent with
Section 6505. The agency shall reimburse the Controller for the
cost of complying with this subdivision.

(d) A forfeiture or payment made pursuant to this section shall
not relieve an agency of its obligation file the report required
pursuant to Section 53891.

(e) Upon the request of the Controller, the Attorney General
shall bring an action for the forfeiture in the name of the people
of the State of California.

(f) Upon satisfactory showing of good cause, the Controller
shall waive the forfeiture requirements of this section.

SEC. 2.  

Section 53895.7 of the Government Code is amended
to read:

53895.7.  

(a) For the purpose of this section, “agency” means
any agency or entity formed pursuant to the Joint Exercise of
Powers Act (Article 1 (commencing with Section 6500) of Chapter
5 of Division 7 of Title 1) that issues conduit revenue bonds.

(b) An officer of an agency who fails or refuses to make and
file his or her report pursuant to this article within 20 days after
receipt of a written notice of the failure from the Controller shall
forfeit to the state:

(1) Two thousand five hundred dollars ($2,500) in the case of
an agency with total revenue, in the prior year, of less than one
hundred thousand dollars ($100,000), as reported in the Controller’s
annual financial reports.

(2) Five thousand five hundred dollars ($5,500) in the case of
an agency with total revenue, in the prior year, of at least one
hundred thousand dollars ($100,000), but less than two hundred
fifty thousand dollars ($250,000), as reported in the Controller’s
annual financial reports.

(3) Ten thousand dollars ($10,000) in the case of an agency
with total revenue, in the prior year, of at least two hundred fifty
thousand dollars ($250,000), as reported in the Controller’s annual
financial reports.

(c) An officer of an agency who fails or refuses to make and
file his or her report within 20 days after receipt of a written notice
of the failure from the Controller in the second year shall forfeit
to the state:

(1) Five thousand dollars ($5,000) in the case of an agency with
total revenue, in the prior year, of less than one hundred thousand
dollars ($100,000), as reported in the Controller’s annual financial
reports.

(2) Eleven thousand dollars ($11,000) in the case of an agency
with total revenue, in the prior year, of at least one hundred
thousand dollars ($100,000), but less than two hundred fifty
thousand dollars ($250,000), as reported in the Controller’s annual
financial reports.

(3) Twenty thousand dollars ($20,000) in the case of an agency
with total revenue, in the prior year, of at least two hundred fifty
thousand dollars ($250,000), as reported in the Controller’s annual
financial reports.

(d) In the case of an agency that fails or refuses to make and
file its report within 20 days after receipt of a written notice of the
failure from the Controller for three or more consecutive years,
the forfeiture amount shall be triple the amount described in
subdivision (b). The Controller shall conduct, or cause to be
conducted, an independent financial audit report consistent with
the requirements of Section 6505. The agency shall reimburse the
Controller for the cost of complying with this subdivision.

(e) (1) Upon the request of the Controller, the Attorney General
shall bring an action for the forfeiture in the name of the people
of the State of California.

(2) Upon a satisfactory showing of good cause, the Controller
shall waive the forfeiture requirements of this section.

(f) A forfeiture or payment made pursuant to this section shall
not relieve an agency of its obligation to file the report required
pursuant to Section 53891.

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