BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1035
          Author:   John A. Pérez (D), et al.
          Amended:  4/22/14 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE  :  4-0, 4/9/14
          AYES:  Hueso, Wyland, Leno, Padilla
          NO VOTE RECORDED:  Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 4/21/14
          AYES:  De León, Gaines, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Workers compensation:  firefighters and peace  
          officers

           SOURCE  :     California Professional Firefighters 
                      Peace Officers Research Association of California 
                      

           DIGEST  :    This bill provides an extension for dependents of  
          deceased firefighters and peace officers to file for workers'  
          compensation death benefits if the death resulted from any of  
          the following:  cancer, tuberculosis, methicillin-resistant  
          Staphylococcus aureus (MRSA) skin infections, or bloodborne  
          infectious disease.  This extension is for up to 420 weeks from  
          the date of injury, but in no case more than one year from the  
          date of death, as specified.  This bill requires the extension  
          to sunset on January 1, 2019.  

           ANALYSIS  :    Existing law establishes a workers' compensation  
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          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:

          1.Heart disease,
          2.Hernias,
          3.Pneumonia,
          4.Cancer,
          5.Meningitis,
          6.Tuberculosis,
          7.MRSA skin infections, and
          8.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.  

          Existing law provides for the payment of a workers' compensation  
          indemnity death benefit.  The amount of the benefit is  
          determined by the date of injury, the number dependents, and if  
          those dependents are partially dependent or wholly dependent on  
          the deceased worker.  

          Existing law provides that no person is a dependent of any  
          deceased employee unless in good faith a member of the family or  
          household of the employee, or unless the person bears to the  
          employee the relation of husband or wife, child, posthumous  

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          child, adopted child or stepchild, grandchild, father or mother,  
          father-in-law or mother-in-law, grandfather or grandmother,  
          brother or sister, uncle or aunt, brother-in-law or  
          sister-in-law, nephew or niece.  

          Existing law requires, with certain exceptions, that the  
          collection of workers' compensation death benefits must be  
          commenced one year from:

          1.The date of death where death occurs within one year from date  
            of injury; or

          2.The date of last furnishing of any benefits where death occurs  
            more than one year from the date of injury; or

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

          No such proceedings may be commenced more than one year after  
          the date of death, nor more than 240 weeks from the date of  
          injury. 

          The exceptions to the above timelines are as follows:

          1.In the case of the death of an asbestos worker or firefighter  
            from asbestosis, the period within which proceedings may be  
            commenced for the collection of workers' compensation death  
            benefits is one year from the date of death.

          2.In the case of the death of a healthcare worker, firefighter,  
            peace officer, or correctional officer from HIV-related  
            disease, the period within which proceedings may be commenced  
            for the collection of workers' compensation death benefits is  
            one year from the date of death, provided they meet certain  
            requirements.

          Existing law defines the "date of injury," in cases of  
          occupational diseases or cumulative injuries is that date upon  
          which the employee first suffered disability therefrom and  
          either knew, or in the exercise of reasonable diligence should  
          have known, that such disability was caused by his present or  
          prior employment.  


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          This bill provides an extension for dependents of deceased  
          firefighters and peace officers to file for workers'  
          compensation death benefits if the death resulted from any of  
          the following:

          1.Cancer, 
          2.Tuberculosis, 
          3.MRSA skin infections, or 
          4.Bloodborne infectious disease.

          This extension is for up to 420 weeks from the date of injury,  
          but in no case more than one year from the date of death.

          This bill requires that the extension to sunset on January 1,  
          2019.

          This bill further declares the need for the Administrative  
          Director of the Division of Workers' Compensation to study  
          mortality rates prior to extending or allowing the extension to  
          sunset.

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

          According to the Senate Appropriations Committee, this bill  
          results in an increase in workers' compensation costs related to  
          state employees who are firefighters and peace officers, as  
          specified.  The specific state departments that would be  
          impacted are the Department of Forestry and Fire Protection and  
          the California Highway Patrol.  The amount of the increase is  
          unknown.

           SUPPORT  :   (Verified  4/22/14)

          California Professional Firefighters (co-source)
          Peace Officers Research Association of California (co-source)
          AFSCME
          Association for Los Angeles Deputy Sheriffs 
          California Applicants' Attorneys Association
          California Correctional Peace Officers Association
          Californian Labor Federation
          Los Angeles County Professional Peace Officers Association
          Los Angeles Police Protective League           
          Los Angeles Probation Officers' Union, AFSCME, Local 685  

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          Riverside Sheriffs' Association           

           OPPOSITION  :    (Verified  4/22/14)

          California Association of Joint Powers Authorities 
          California Coalition of on Workers' Compensation
          California State Association of Counties
          County of Los Angeles
          CSAC Excess Insurance Agency
          League of California Cities
          Rural County Representatives of California

           ARGUMENTS IN SUPPORT  :    Proponents argue that existing law is  
          not meeting the needs of California's firefighters and peace  
          officers.  Proponents note that if a firefighter or peace  
          officer dies of an occupational disease more than five years  
          after being diagnosed with the disease, his/her family members  
          are unable to claim a death benefit.  With occupational injuries  
          such as cancer, the timeframe between when the injury was  
          discovered and when the worker succumbs to the injury may be  
          longer than five years.  In these cases, proponents argue that  
          the families of firefighters and peace officers should not be  
          denied their right to workers' compensation death benefits.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that this bill will  
          increase costs on local governments and counties at a time when  
          budgets are limited and the full impact of the 2012 Workers'  
          Compensation reform is unknown.  Opponents also argue that this  
          bill is being considered at the same time as other bills which  
          add to the number of peace officers who qualify for existing  
          presumptions, and that these bills could increase the fiscal  
          impacts of this bill.  Opponents also maintain that the recent  
          National Institute of Occupational Safety and Health study only  
          noted increases in some cancers, while the existing workers'  
          compensation presumption covers all cancers.   
           

          PQ:k  4/22/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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