HomeMy WebLinkAboutAgenda Report - August 21, 2012 B-01 SMCITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
AGENDA TITLE: Authorize the Mayor, on Behalf of the City Council, to Send a Letter
of Opposition to Assembly Bill 2451 (Perez)
MEETING DATE: August 21,2012
PREPARED B Y City Clerk
RECOMMENDEDACTION: Authorize the Mayor, on behalf of the City Council, to send a letter
of opposition to Assembly Bill 2451 (Perez).
BACKGROUND INFORMATION: At the August 15, 2012 City Council meeting, Council Member
Johnson requested that staff set a special meeting to have the City
Council consider sending a letter of opposition to AB 2451 (Perez).
As you may be aware, existing law specifies the time period within which various proceedings may be
commenced relating to workers' compensation. With certain exceptions, a proceeding to collect death
benefits is required to be commenced within one year from the date of death or, in some cases, from the
last furnishing of benefits. However, no proceedings may be commenced more than 240 weeks from the
date of injury. AB 2451 expands this timeline for firefighters and peace officers by allowing their
beneficiaries to file a death benefits claim up to one year after the date of death without a limit on the
period of time between the employee's exposure to and presumable death from heart disease, cancer,
tuberculosis or blood borne pathogens. The League of California Cities and other municipal agencies are
opposed to the proposed legislation because it will significantly increase workers' compensation costs at
a time when local governments are struggling to provide vital services.
For these reasons, it is recommended that local governments oppose the proposed legislation.
FISCAL IMPACT:
FUNDING AVAILABLE:
APPROVED:
Not applicable at this time.
Not applicable at t
Randi Johl
City Clerk
Konradt Bartlam, City Manager
AMENDED IN ASSEMBLY APRIL 19,2012
CALIFORNIA LEGISLATURE -2011-12 REGULAR SESSION
ASSEMBLY BILL No. 2451
Introduced by Assembly Member John A. Perez
(Coauthor: Senator Vargas)
February 24, 2012
An act to amend Section 5406 of, and to add Section 5406.8 to, the
Labor Code, relating to workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2451, as amended, John A. Perez. Workers' compensation:
firefighters.
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 the
date of death or, in some cases, from the last furnishing of benefits.
However, no proceedings may be commenced more than 240 weeks
from the date of injury.
This bill would require that a proceeding to collect those benefits for
the death of a firefighter or peace officer from specified medical
conditions or diseases, including cancer andtuberculosis,be commenced
within one year from the date of death.
Vote: majority. Appropriation: no. Fiscal committee: no.
State -mandated local program: no.
98
AB 2451 —2 —
Thepeople of the State of California do enact as follows:
1 SECTION 1. Section 5406 of the Labor Code is amended to
2 read:
3 5406. (a) Except as provided in Section 5406.5, 5406.6, or
4 5406.8, the period within which may be commencedproceedings
5 for the collection of the benefits provided by Article 4
6 (commencing with Section 4700) of Chapter 2 of Part 2 is one
7 year from any of the following:
8 (1) The date of death if death occurs within one year from date
9 ofinjury.
10 (2) The date of last furnishing of any benefits under Chapter 2
11 (commencing with Section 4550) of Part 2, if death occurs more
12 than one year from the date of injury.
13 (3) The date of death, if death occurs more than one year after
14 the date of injury and compensation benefits have been furnished.
15 (b) Proceedings under subdivision (a) shall not be commenced
16 more than one year after the date of death, nor more than 240
17 weeks from the date of injury.
18 SEC. 2. Section 5406.8 is added to the Labor Code, to read:
19 5406.8. In the case of the death of a firefighter or peace officer
20 from an injury, as defined in Section 3212, 3212.1, 3212.6, or
21 3212.8, the period within which proceedings may be commenced
22 for the collection of the benefits provided by Article 4
23 (commencing with Section 4700) of Chapter 2 of Part 2 is one
24 year from the date of death.
0
98
CALIFORNIA
STATF
ASSOCIATION OF
COUNTIES
LEAGUE
CITIES
LEAGUE OF
CALIFORNIA
CITIES
REGIONAL
COUNCIL OF
RURAL COUNTIES
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CALIFORNIA
SPECIAL
DISTRICTS
ASSOCIATION
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ACHD
ASSOCIATION OF
CALIFORNIA
HEALTHCARE
DISTRICTS
April 25, 2012
The Honorable Jose Solorio
Chair, Assembly Insurance Committee
1020 N Street, Room 369
Sacramento, CA 95814
Re: AB 2451 (Perez, John A.): Workers' compensation: firefighters
As amended April 19,2012 —OPPOSE
Set for Hearing May 2, 2012 —Assembly Insurance Committee
Dear Assembly Member Solorio:
The California State Association of Counties (CSAC), the Regional Council of Rural Counties
(RCRC), the League of California Cities (LCC), the California Special Districts Association
(CSDA) and the Association of California Healthcare Districts (ACHD) regret that we must
OPPOSE AB 2451 by Assembly Speaker John A. Perez, which would extend the statute of
limitations for a presumptive death benefit claim to be filed on behalf of a firefighter or peace
officer.
Current law requires death benefit claims for workers' compensation to be commenced within
one year of: the date of death when death occurs within one year from the date of injury; the
date of the last furnishing of workers' compensation benefits when death occurs more than
one year from the date of injury; or, the date of death when death occurs more than one year
after the date of injury and workers' compensation benefits have been furnished. Current law
additionally requires that no claims may commence unless the death has occurred within 240
weeks of the date of injury, except for claims involving death from asbestosis or HIV. AB
2451 expands this timeline for firefighters and peace officers by allowing their beneficiaries to
file a death benefits claim up to one year after the date of death without a limit on the period
of time between the employee's exposure to and presumable death from heart disease,
cancer, tuberculosis or blood borne pathogens.
We believe that liberal standards for public safety officers already allow employees to get
fairly compensated on the basis of a disease presumption when that injury is presumed to
have job causation. Additionally, the injuries covered in AB 2451 do not have the same close
connection to work exposures as do asbestosis and HIV, making it nearly impossible for
employers to refute the claim.
AB 2451 would increase workers' compensation costs for counties alone by roughly $60
million annually (based on an estimate of a $20 million cost increase to Los Angeles County
by the Los Angeles County Chief Executive Office Risk Management Branch) at a time when
local governments are struggling to provide vital services. This bill also erodes the original
intent of the Workers' Compensation Act and subsequent reforms to the system enacted in
2004, designed to provide fair and timely benefits to injured employees at a reasonable cost
to employers.
Forthese reasons, the aforementioned organizations oppose AB 2451. Please do not
hesitate to contact Eraina Ortega (CSAC) at 916/650-8180, Paul A. Smith (RCRC) at
916/447-4806, Natasha Karl (LCC) at 916/658-8279, Iris Herrera-Whitney(CSDA) at
916/442-7887 and Amber Wiley (ACHD) at 916/498-6233 should you have any questions or
concerns.
cc: The Honorable John A. Perez, Speaker, California State Assembly
Members and Consultants, Assembly Insurance Committee