Existing law generally requires an employer to compensate, without regard to negligence, an employee for an injury sustained by the employee if the injury arose out of, and in the course of, employment, as specified. Existing law also establishes the Uninsured Employers Fund and the Subsequent Injuries Benefits Trust Fund, both continuously appropriated funds. In the event that an employer fails to pay compensation as required, then the employee may apply to be paid by the Director of Industrial Relations from the Uninsured Employers Benefits Trust Fund. In the event that a permanently, partially disabled employee receives a later, compensable injury resulting in additional permanent disability, then that employee shall receive compensation from the Subsequent Injuries Benefits Trust Fund.

This bill would provide that a person shall not be excluded from receiving benefits under the Uninsured Employers Fund or the Subsequent Injuries Benefits Trust Fund based on his or her citizenship or immigration status. The bill would provide that these provisions are declaratory of existing law.

By increasing the number of applicants eligible for a continuously appropriated fund, this bill would make an appropriation.

Existing law generally requires an employer to compensate, without regard to negligence, an employee for an injury sustained by the employee if the injury arose out of, and in the course of, employment, as specified. Existing law also establishes the Uninsured Employers Fund and the Subsequent Injuries Benefits Trust Fund, both continuously appropriated funds. In the event that an employer fails to pay compensation as required, then the employee may apply to be paid by the Director of Industrial Relations from the Uninsured Employers Benefits Trust Fund. In the event that a permanently, partially disabled employee receives a later, compensable injury resulting in additional permanent disability, then that employee shall receive compensation from the Subsequent Injuries Benefits Trust Fund.

This bill would provide that a person shall not be excluded from receiving benefits under the Uninsured Employers Fund or the Subsequent Injuries Benefits Trust Fund based on his or her citizenship or immigration status. The bill would provide that these provisions are declaratory of existing law.

By increasing the number of applicants eligible for a continuously appropriated fund, this bill would make an appropriation.

Existing law generally requires an employer to compensate, without regard to negligence, an employee for an injury sustained by the employee if the injury arose out of, and in the course of, employment, as specified. Existing law also establishes the Uninsured Employers Fund and the Subsequent Injuries Benefits Trust Fund, both continuously appropriated funds. In the event that an employer fails to pay compensation as required, then the employee may apply to be paid by the Director of Industrial Relations from the Uninsured Employers Benefits Trust Fund. In the event that a permanently, partially disabled employee receives a later, compensable injury resulting in additional permanent disability, then that employee shall receive compensation from the Subsequent Injuries Benefits Trust Fund.

This bill would provide that a person shall not be excluded from receiving benefits under the Uninsured Employers Fund or the Subsequent Injuries Benefits Trust Fund based on his or her citizenship or immigration status. The bill would provide that these provisions are declaratory of existing law.

By increasing the number of applicants eligible for a continuously appropriated fund, this bill would make an appropriation.

Existing law generally requires an employer to compensate, without regard to negligence, an employee for an injury sustained by the employee if the injury arose out of, and in the course of, employment, as specified. Existing law also establishes the Uninsured Employers Fund and the Subsequent Injuries Benefits Trust Fund, both continuously appropriated funds. In the event that an employer fails to pay compensation as required, then the employee may apply to be paid by the Director of Industrial Relations from the Uninsured Employers Benefits Trust Fund. In the event that a permanently, partially disabled employee receives a later, compensable injury resulting in additional permanent disability, then that employee shall receive compensation from the Subsequent Injuries Benefits Trust Fund.

This bill would provide that a person shall not be excluded from receiving benefits under the Uninsured Employers Fund or the Subsequent Injuries Benefits Trust Fund based on his or her citizenship or immigration status.

By increasing the number of applicants eligible for a continuously appropriated fund, this bill would make an appropriation.

SENATE THIRD READING

STR Bill Id:SB 623

Author:(Lara)

As Amended Ver:April 14, 2015

Majority vote

SENATE VOTE: 34-1

SUMMARY: Expressly overrules regulations, which are contrary to current statutory law, that provide that undocumented workers are not eligible for certain workers' compensation benefits. Specifically, this bill:

1. States that a person shall not be prohibited from receiving benefits from the Uninsured Employers Benefits Trust Fund or the Subsequent Injuries Benefits Trust Fund (Funds) solely because of his or her citizenship or immigration status.

2. States that it is the intent of the Legislature to override specified provisions in the California Code of Regulations that are contrary to the rule stated, above.

3. Makes findings that the state has an interest in making the benefits described above available to people not lawfully in the United States, within the meaning of specified federal statutes that authorize states to make these benefits available.

4. Provides that this bill's statement of the right to benefits from the Funds is declaratory of existing law.

EXISTING LAW:

1. Establishes a comprehensive system to provide workers' compensation benefits to all employees who suffer conditions or injuries that arise out of or in the course of employment.

2. Provides that all protections, rights and remedies available under state law, including all labor and employment laws, unless expressly prohibited by federal law, are available to all persons, regardless of immigration status.

3. Establishes the Funds to provide specified workers' compensation benefits to all people who meet the criteria to qualify for benefits from one of the Funds.

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal effect to Department of Industrial Relations. This bill is aligned with current practice and is declaratory of existing law. The regulations it supersedes have never been enforced.

COMMENTS:

1. Purpose. According to the author, existing regulations were adopted upon the enactment by the voters of Proposition 187 in 1994, and initiative that restricted the rights of undocumented immigrants in a number of ways. Despite the courts' subsequent invalidation of that initiative, the regulations at issue in the bill have remained on the books. This bill is intended to expressly overrule those regulations.

2. Practical effect. Based on Labor Code Section 1171.5 (granting the protections of labor and employment laws to undocumented employees), enacted in 2002 and which itself provides that it is declaratory of existing law, undocumented employees have been receiving the benefits from the Funds, and no evidence has been presented that benefits have been denied to any person on the basis of immigration status. The practical effect of this bill is to state unequivocally that the plain reading of the regulations is not the law.

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0001175

Date of Hearing: July 8, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

SBPCA Bill Id:SB 623

Author:(Lara) – As Amended Ver:April 14, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill expressly overrules regulations, which are contrary to current statute, that provide that undocumented workers are not eligible for certain workers' compensation benefits.

FISCAL EFFECT:

Negligible fiscal effect to Department of Industrial Relations. This bill is aligned with current practice and is declaratory of existing law. The regulations it supersedes have never been enforced.

COMMENTS:

1. Purpose. This bill specifies an injured worker may not be excluded from receiving workers compensation benefits from the Uninsured Employers Benefits Trust Fund or the Subsequent Injuries Benefits Trust Fund based on immigration status. It addresses an inconsistency between state law and existing regulations when an employer fails to provide workers compensation insurance, to ensure that undocumented workers have access to care and treatment for their injuries.

2. Background. Regulations limiting benefits to undocumented workers were adopted pursuant to Proposition 187 in 1994, a voter proposition which limited numerous state benefits to undocumented workers. Although Proposition 187 was invalidated in federal court and the regulations have not been enforced, they are still officially on the books.

Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081

Date of Hearing: June 24, 2015

ASSEMBLY COMMITTEE ON INSURANCE

Tom Daly, Chair

SBPCA Bill Id:SB 623

Author:(Lara) – As Amended Ver:April 14, 2015

SENATE VOTE: 34-1

SUBJECT: Workers’ compensation: benefits.

SUMMARY: Expressly overrules regulations, which are contrary to current statutory law, that provide that undocumented workers are not eligible for certain workers' compensation benefits. Specifically, this bill:

1. States that a person shall not be prohibited from receiving benefits from the Uninsured Employers Benefits Trust Fund or the Subsequent Injuries Benefits Trust Fund (Funds) solely because of his or her citizenship or immigration status.

2. States that it is the intent of the Legislature to override specified provisions in the California Code of Regulations that are contrary to the rule stated, above.

3. Makes findings that the State has an interest in making the benefits described above available to people not lawfully in the United States, within the meaning of specified federal statutes that authorize States to make these benefits available.

4. Provides that the bill's statement of rights to benefits from the Funds is declaratory of existing law.

EXISTING LAW:

1. Establishes a comprehensive system to provide workers' compensation benefits to all employees who suffer conditions or injuries that arise out of or in the course of employment.

2. Provides that all protections, rights and remedies available under state law, including all labor and employment laws, unless expressly prohibited by federal law, are available to all persons, regardless of immigration status.

3. Establishes the Funds to provide specified workers' compensation benefits to all people who meet the criteria to qualify for benefits from one of the Funds.

FISCAL EFFECT: The Senate Appropriations Committee referred this bill to the Senate Floor pursuant to Senate Rule 28.8.

COMMENTS:

1. Purpose. According to the author, existing regulations were adopted upon the enactment by the voters of Proposition 187 in 1994, and initiative that restricted the rights of undocumented immigrants in a number of ways. Despite the Courts' subsequent invalidation of that initiative, the regulations at issue in the bill have remained on the books. The bill is intended to expressly overrule those regulations.

2. Practical effect. Based on Labor Code Section 1171.5 (granting the protections of labor and employment laws to undocumented employees), enacted in 2002 and which itself provides that it is declaratory of existing law, undocumented employees have been receiving the benefits from the Funds, and no evidence has been presented that benefits have been denied to any person on the basis of immigration status. The practical effect of the bill is to state unequivocally that the plain reading of the regulations is not the law.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of California Insurance Companies

California Applicants' Attorneys Association

California Association of Joint Powers Authorities

California Chamber of Commerce

California Coalition on Workers' Compensation

California Immigrant Policy Center (CIPC)

California Labor Federation, AFL-CIO

California Manufacturers and Technology Association

California Restaurant Association

Opposition

None received

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

 THIRD READING  

Bill No: SB 623

Author: Lara (D)

Amended: 4/14/15

Vote: 21

SENATE LABOR & IND. REL. COMMITTEE: 5-0, 4/8/15

AYES: Mendoza, Stone, Jackson, Leno, Mitchell

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Workers’ compensation: benefits

SOURCE: California Applicants’ Attorneys Association

California Teamsters Public Affairs Council

DIGEST: This bill restates and reinforces existing law on the right of undocumented workers to be eligible for benefits from the Uninsured Employers Benefits Trust Fund and the Subsequent Injuries Benefits Trust Fund.

ANALYSIS:

Existing law:

1. 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. This system requires all employers to secure payment of benefits by either securing the consent of the Department of Industrial Relations (DIR) to self-insure or by securing insurance against liability from an insurance company duly authorized by the state.

2. Provides that all protections, rights, and remedies available under state law, except any reinstatement remedy prohibited by federal law, are available to all individuals regardless of immigration status who have applied for employment, or who are or who have been employed, in California. (Labor Code §1171.5)

3. Creates the Uninsured Employers Benefits Trust Fund (UEBTF), which provides benefits for injured workers who are employed by illegally uninsured employers. Benefits awarded from the UEBTF constitute a liquated damage against the illegally uninsured employer, which the Director of DIR may pursue against the employer and/or significant shareholders. (Labor Code §§ 3716-3717)

4. Creates the Subsequent Injuries Benefits Trust Fund (SIBTF), which provides additional compensation for injured workers who are receiving permanent disability benefits and suffer a second injury that the degree of injury caused by the second injury is greater than what would have resulted from the first permanent injury alone. (Labor Code § 4751)

5. Provides that a State may provide that an individual who is not lawfully present in the United States is eligible for any State or local public benefit for which such alien would otherwise be ineligible through the enactment of a State law which affirmatively provides for such eligibility. (8 U.S. Code § 1621(d))

This bill:

1. Restates and reiterates existing law, which currently allows undocumented injured workers to be eligible for benefits from the UEBTF and the SIBTF.

2. Declares the intent of the Legislature to override regulations which prevent undocumented workers from accessing benefits from the UEBTF and the SIBTF.

NOTE: See the Senate Labor and Industrial Relations Committee analysis for a full discussion of this bill.

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

SUPPORT: (Verified 4/8/15)

California Applicants’ Attorneys Association (co-source)

California Teamsters Public Affairs Council (co-source)

Association of California Insurance Companies

California Association of Joint Powers Authorities

California Chamber of Commerce

California Coalition on Workers’ Compensation

California Conference of Machinists

California Conference of the Amalgamated Transit Union

California Labor Federation, AFL-CIO

California Manufacturers and Technology Association

California Nurses Association

California Restaurant Association

California Rural Legal Assistance Foundation

Engineers & Scientists of California, AFTPE Local 20, AFL-CIO

International Longshore and Warehouse Union

Professional & Technical Engineers, IFTPE Local 21, AFL-CIO

Utility Workers Union of America

OPPOSITION: (Verified 4/8/15)

None received

ARGUMENTS IN SUPPORT: The California Applicants’ Attorneys Association (CAAA) and the California Chamber of Commerce strongly support SB 623, arguing that SB 623 clarifies current law so that no injured worker is refused benefits from the UEBTF and the SIBTF based on their immigration status. CAAA argues that it is time for the out-of-date Division of Workers’ Compensation regulations which allowed undocumented workers from being excluded from these benefits.

Prepared by: Gideon Baum / L. & I.R. / (916) 651-1556

4/28/15 15:31:19

**** END ****

SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS

Senator Tony Mendoza, Chair

2015 - 2016 Regular

Bill No: SB 623 Hearing Date: April 8, 2015

Subject: Workers’ compensation: benefits

KEY ISSUE

Should the Legislature restate and reinforce existing law on the right of undocumented workers to be eligible for benefits from the Uninsured Employers Benefits Trust Fund (UEBTF) and the Subsequent Injuries Benefit Trust Fund (SIBTF)?

ANALYSIS

Existing 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. 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 provides that all protections, rights, and remedies available under state law, except any reinstatement remedy prohibited by federal law, are available to all individuals regardless of immigration status who have applied for employment, or who are or who have been employed, in California. (Labor Code §1171.5)

Existing law creates the Uninsured Employers Benefits Trust Fund (UEBTF), which provides benefits for injured workers who are employed by illegally uninsured employers. Benefits awarded from the UEBTF constitute a liquated damage against the illegally uninsured employer, which the director may pursue against the employer and/or significant shareholders.
(Labor Code §§3716- 3717)

Existing law creates the Subsequent Injuries Benefit Trust Fund (SIBTF), which provides additional compensation for injured workers who are receiving PD benefits and suffer a second injury that the degree of injury caused by the second injury is greater than what would have resulted from the first permanent injury alone. (Labor Code §4751)

Existing federal law provides that a State may provide that an individual who is not lawfully present in the United States is eligible for any State or local public benefit for which such alien would otherwise be ineligible through the enactment of a State law which affirmatively provides for such eligibility. (8 U.S. Code § 1621(d))

This bill would restate and reiterate existing law, which currently allows undocumented injured workers to be eligible for benefits from the UEBTF and the SIBTF.

This bill would also declare the intent of the Legislature to override regulations which prevent undocumented workers from accessing benefits from the UEBTF and the SIBTF.

COMMENTS

1. Need for this bill?

As was noted above, existing law has provided that, with some limited exceptions, injured workers may not be denied workers’ compensation benefits on the basis of the injured worker’s immigration status. These protections were created in 2002 by SB 1818 (Statues of 2002, Chapter 1071), which was supported by a broad coalition including Lieutenant Governor Cruz Bustamante, the California Labor Federation, and the California Applicants’ Attorneys Association. Further, this legislation appears to meet the requirements of the federal statute discussed above for ensuring that an undocumented worker would be eligible for benefits from a state program.

Despite this, California regulations still prohibit an undocumented worker from receiving benefits from both the UEBTF and the SIBTF, as the regulations have not been updated since 1998. As such, these regulations have been out of compliance with state law since 2003. It is unknown, however, if this has resulted in the loss of any benefits for undocumented injured workers.

SB 623 would clarify existing law, and also state that it is the intent of the Legislature that these out-of-date regulations be overridden.

2. Staff Comments:

As was noted above, SB 623 is a restatement of existing law. However, the new sections are currently not listed as declarative of existing law. This could create legal confusion for undocumented workers seeking their benefits, leading to unnecessary delays due to litigation. Therefore, the Committee may wish to consider the following amendments:

On page 2, between lines 14 and 15, insert the following: (d) The provisions of this section are declaratory of existing law.

On page 2, after line 28, insert the following: (d) The provisions of this section are declaratory of existing law.

3. Proponent Arguments:

The California Applicants’ Attorneys Association (CAAA) and the California Chamber of Commerce strongly support SB 623, arguing that SB 623 would clarify current law so that no injured worker is refused benefits from the Uninsured Employers Benefit Trust Fund (UEBTF) and the Subsequent Injuries Benefit Trust Fund (SIBTF) based on their immigration status. CAAA argues that it is time for the out-of-date Division of Workers’ Compensation regulations which allowed undocumented workers from being excluded from these benefits.

4. Opponent Arguments:

None on file.

5. Prior Legislation:

SB 1818 (Romero), Statues of 2002, Chapter 1071, was discussed above.

SUPPORT

California Teamsters Public Affairs Council (Co-Sponsor)

Association of California Insurance Companies

California Association of Joint Powers Authorities

California Chamber of Commerce

California Coalition on Workers’ Compensation

California Conference of Machinists

California Conference of the Amalgamated Transit Union

California Labor Federation, AFL-CIO

California Manufacturers and Technology Association

California Nurses Association

California Restaurant Association

California Rural Legal Assistance Foundation

Californian Applicants’ Attorney Association

Engineers & Scientists of California, AFTPE Local 20, AFL-CIO

International Longshore and Warehouse Union

Professional & Technical Engineers, IFTPE Local 21, AFL-CIO

Utility Workers Union of America

OPPOSITION

None on File.

-- END --