BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1234 (Block) - Workers Compensation
          
          Amended: March 24, 2014         Policy Vote: L&IR 4-0
          Urgency: No                     Mandate: No
          Hearing Date: April 7, 2014                             
          Consultant: Robert Ingenito     
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 1234 would broaden eligibility for certain  
          workers' compensation benefits to specified peace officers  
          including, but not limited to park rangers, housing authority  
          patrol officers, and various school and transit police.

          Fiscal Impact: There would be an increase in workers'  
          compensation costs for state employees who are employed in  
          classifications/entities affected by the bill, particularly in  
          the areas of K-12 education and the community colleges. The  
          amount of the increase is unknown, but likely to exceed $50,000  
          General Fund annually (see Staff Comments).

          Background: Current law establishes a workers' compensation  
          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. Generally speaking, under  
          current law an injured worker who is unable to work is entitled  
          to two years of temporary disability benefits. These benefits  
          are designed to partially offset the loss of wages for workers  
          unable to work in the aftermath of an injury. The benefit amount  
          is 67 percent of a worker's average weekly wage during the past  
          12 months. 

          Labor Code 4850 provides specified categories of peace officers  
          with a higher wage loss benefit. An eligible public safety  
          officer who becomes disabled while performing his or her duties  
          is entitled to a one-year leave of absence without loss of  
          salary in lieu of temporary disability payments. These employees  
          include:

                 City police officers.
                 City, county, or district firefighters.








          SB 1234 (Block)
          Page 1


                 Sheriffs.
                 Inspectors, investigators, detectives, or personnel with  
               comparable titles in any district attorney's office.
                 County probation officers, group counselors, or juvenile  
               services officers.
                 Lifeguards employed by a county of the first class or  
               the City of San Diego.
                 Airport law enforcement officers.
                 Harbor or port police officers, wardens, or special  
               officers of a harbor or port district or city or county  
               harbor department.
                 Police officers of the Los Angeles Unified School  
               District.


          Proposed Law: This bill would extend the 4850 leave of absence  
          to include the following, but not limited to peace officers  
          listed in specified sections of the Penal Code: 

                 Park rangers designated by a local agency or municipal  
               water district.
                 Housing authority patrol officers employed by the  
               housing authority of a city, district, county, or city and  
               county or employed by the policy department of a city or  
               county.
                 Various school safety officers including members of a  
               California Community College police department, police  
               department of a school district or any peace officer  
               employed by a K-12 public school district or California  
               Community College district who has completed specified  
               training.
                 Various transit peace officers including members of the  
               San Francisco Bay Area Rapid Transit District Police  
               Department, transit police officers or peace officers of a  
               county, city, transit development board, or district, or  
               any railroad police officer commissioned by the Governor. 
                 Persons designated as a security officer by a municipal  
               utility district or county water district.
                 A welfare fraud or child support investigator or  
               inspector, regularly employed and paid in that capacity by  
               a county.
                 The coroner and deputy coroners regularly employed and  
               paid in that capacity of a county.









          SB 1234 (Block)
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          Related Legislation: SB 527 (Block), Chapter 66, Statutes of  
          2013 added full-time lifeguards employed by the City of San  
          Diego to the list of public safety officers eligible for 4850  
          leave.
          
          Staff Comments: The Office of the Legislative Counsel has keyed  
          this bill "non-fiscal."  However, the purview of this Committee,  
          pursuant to Joint Rule 10.5, is to review and analyze bills that  
          would, among other things, result in a substantial expenditure  
          of state money. Thus, even though SB 1234 was keyed  
          "non-fiscal," the Committee requested referral to examine the  
          extent to which it might potentially increase state costs. 

          Under current Appropriations Committee rules, bills are referred  
          to its suspense file if they increase costs for any state fund,  
          in any fiscal year, by specified thresholds. Those thresholds  
          are $50,000 for the General Fund, and $150,000 for most other  
          state funds. 

          Current data indicate that roughly 700 peace officers work for  
          school districts and community colleges districts. To the extent  
          that these peace officers were to utilize the expanded benefits  
          under this bill, upfront costs to these districts would  
          increase, creating a new cost pressure on their existing and  
          future budget allocations (primarily General Fund). The extent  
          of the increase is unknown, but is likely to exceed $50,000  
          annually.