BILL ANALYSIS                                                                                                                                                                                                    �





                                                                  AB 2616

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          GOVERNOR'S VETO
          AB 2616 (Skinner)
          As Amended  August 18, 2014
          2/3 vote

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          |ASSEMBLY:  |48-26|(May 28, 2014)  |SENATE: |24-9 |(August 20,    |
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          |ASSEMBLY:  |47-24|August 22,      |        |     |               |
          |           |     |2014)           |        |     |               |
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           Original Committee Reference:    PUB. S.  

           SUMMARY  :  Extends to certain hospital employees who provide  
          direct patient care the presumption that methicillin-resistant  
          Staphylococcus aureus (MRSA) infections are presumed to be job  
          related.  

           The Senate amendments  add the proposed new presumptive injuries  
          to the list of existing presumptive injuries for which a  
          treating physician is not required to apportion causation for  
          disability purposes to either nonindustrial, or prior  
          industrial, injuries.

           EXISTING LAW  :

          1)Establishes a comprehensive system of workers' compensation  
            benefits for injuries, including diseases, that arise out of  
            and in the course of employment.  The benefits include full  
            medical benefits to treat the injury or condition,  
            indemnification for temporary and permanent disability, and  
            death benefits.

          2)Requires in most cases that the employee prove that the injury  
            or condition underlying the claim arose out of and in the  
            course of employment.










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          3)Provides safety officers (specified police, sheriff, and  
            firefighter employees) with a presumption that certain  
            injuries or conditions are related to employment.  The list of  
            conditions or injuries for which presumptions apply include  
            cancer, heart trouble, blood-borne pathogens, hernia,  
            tuberculosis, as well as MRSA.

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee:
                       
          1)This bill results in increased costs related to disability  
            benefits for impacted state health care employees.  The costs  
            would be a minimum of $33,000 to $65,000 per industrial  
            disability benefit (up to one year), and up to $53,000 per  
            additional temporary disability benefit (up to one additional  
            year).  Thus, costs could range from $33,000 to $118,000 per  
            individual.

          2)Potentially major benefit and medical costs if a MSRA injury  
            results in permanent disability.

           COMMENTS  :   

          1)Minor Senate amendment.  Under existing law, most injuries  
            that result in partial or total permanent disability are  
            subject to a physician evaluating whether or not some portion  
            of that disability is caused by a non-industrial injury, or by  
            a prior industrial injury.  This evaluation process is termed  
            "apportionment."  However, injuries that a presumed to be  
            work-related pursuant to existing law are not subject to  
            apportionment.  The Senate amendments merely add this new MRSA  
            presumption to the list of injuries for which apportionment  
            does not apply.  
           
          2)Prior legislation.  AB 664 (Skinner) of 2009, and AB 1994  
            (Skinner) of 2010, proposed including nurses in the full range  
            of presumptions afforded safety officers.  AB 664 and AB 1994  
            were held on the Assembly Appropriations Committee suspense  
            file.  AB 375 (Skinner) of 2011, initially was similar to AB  
            664 and AB 1994, but was narrowed to include fewer of the  










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            presumptions.  It failed passage on the Senate Floor.  AB 808  
            (Skinner) of 2012, was identical to this bill in the form  
            currently before the Insurance Committee, but was held on the  
            Senate inactive file.
           
          GOVERNOR'S VETO MESSAGE  :

               This bill would create a first of its kind private  
               employer workers' compensation presumption for a  
               specific staph infection -- methicillin-resistant  
               Staphylococcus aureus (MRSA) -- for certain hospital  
               employees. 

               California's no-fault system of worker's compensation  
               insurance requires that claims must be "liberally  
               construed" to extend benefits to injured workers  
               whenever possible.  The determination that an illness  
               is work-related should be decided by the rules of that  
               system and on the specific facts of each employee's  
               situation.  While I am aware that statutory  
               presumptions have steadily expanded for certain public  
               employees, I am not inclined to further this trend or  
               to introduce it into the private sector. 

               Some have reported that hospitals have intimidated  
               nurses from filing valid worker's compensation claims  
               for a work-related MRSA infection.  Any such conduct  
               would be reprehensible.  I am therefore directing the  
               Department of Industrial Relations to investigate and  
               take whatever action is needed.


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


                                                                FN: 0005696














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