BILL ANALYSIS �
AB 2378
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2378 (Perea) - As Introduced: February 21, 2014
Policy Committee: Insurance
Vote:11-2
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill provides that, for specified state and local
firefighters and peace officers who are entitled to a leave of
absence for up to one year with full pay as a result of
on-the-job disability, that the year of pay does not offset any
portion of those employees' right to up to 104 or 240 weeks of
temporary disability (TD) benefits, and abrogates a contrary
court finding.
FISCAL EFFECT
1)Assuming four officers per year receive an additional year of
TD benefits as a result of this bill, state costs of about
$220,000 (State Compensation Insurance Fund). Employee costs
for affected departments are funded through GF/special funds.
Given small numbers and the random nature of disability
claims, an exact projection of these costs is not possible.
2)Applying similar assumptions to local public safety and
firefighters to which similar benefits apply, cities and
counties will incur increased costs of approximately $3
million (local funds) to provide an additional year of TD to
approximately 50 officers. These costs are not state-
reimbursable.
COMMENTS
1)Purpose . The author states this bill restores a critical
disability eligibility for firefighters and law enforcement
officers. The author claims the bill is not intended to create
AB 2378
Page 2
any new benefits nor impose any significant additional cost on
local governments that they haven't been paying for many
years, but that it simply allows firefighters and peace
officers to take up to a year's paid leave of absence before
receiving temporary disability, as they have been in the past.
2)4800 and 4850 time . These provisions of law grant special
benefits to Department of Justice, California Highway Patrol,
and Department of Fish and Wildlife (Labor Code sections 4800
and 4800.5) and local public safety and firefighters (section
4850). These sections provide for a year of leave at full
salary if the individual is injured or becomes ill on the job
before temporary disability kicks in. State law limits
temporary disability payments to a maximum of 104 weeks (2
years), with exceptions for certain injuries that extend for
up to 240 weeks. The issue addressed by the bill is whether
the 4800 and 4850 time should count towards the maximum period
of TD.
Because the majority of individuals do not reach 104 weeks of
temporary disability, but transition to permanent disability
instead, it is an issue that affects relatively few people.
3)The Knittel Case. The findings and declarations in the bill
provide that the bill is needed to overrule a Court of Appeal
decision that has the effect of denying public safety
employees benefits the Legislature intended to provide them.
The court held in this case that the termination of disability
payments after 104 total weeks, including 4850 time, was
allowable, citing the Labor Code section 4656 (c)(2), which
states "Aggregate disability payments for a single injury
occurring on or after January 1, 2008, causing temporary
disability shall not extend for more than 104 compensable
weeks within a period of five years from the date of injury."
The court ruled that the 4850 benefits had to count toward the
aggregate 104-week limit because benefits received pursuant to
4850 were provided for a temporarily disabling condition.
4)Support . This bill is co-sponsored by the California
Professional Firefighters and the California Labor Federation,
and supported by other labor organizations.
5)Opposition . Local public employers and their coalitions oppose
this bill, including the California Joint Powers Insurance
Authority, the League of California Cities, and the Los
AB 2378
Page 3
Angeles County Board of Supervisors, among others. They argue
keeping 4850 time plus 52 weeks of temporary disability
benefits is an appropriate balance when considering public
sector costs, and that persons injured for longer than two
years are unlikely to return to work, which frees up the
employee to take a disability retirement, and frees up the
public agency to replace that employee with a new hire.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081