AB 664: Workers’ compensation: injury: COVID-19.
- Session Year: 2019-2020
- House: Assembly
- Latest Version Date: 2020-08-25
|
Date
|
Status
|
|---|---|
| Sep 1, 2020 | Ordered to inactive file by unanimous consent. |
| Aug 26, 2020 | Read second time. Ordered to third reading. |
| Aug 25, 2020 | Read third time and amended. Ordered to second reading. |
| Aug 20, 2020 | From committee: Do pass. (Ayes 5. Noes 0.) (August 20). |
| Aug 17, 2020 | In committee: Referred to APPR. suspense file. |
| Aug 12, 2020 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 0.) (August 11). Re-referred to Com. on APPR. |
| Jul 31, 2020 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. |
| May 18, 2020 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. |
| May 5, 2020 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. |
| Apr 17, 2020 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. |
| Jun 26, 2019 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| May 22, 2019 | Referred to Coms. on L., P.E. & R. and APPR. |
| May 14, 2019 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 13, 2019 | Read third time. Passed. Ordered to the Senate. |
| Apr 25, 2019 | Read second time. Ordered to third reading. |
| Apr 24, 2019 | From committee: Do pass. (Ayes 7. Noes 0.) (April 24). |
| Apr 3, 2019 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Mar 14, 2019 | Re-referred to Com. on P.E. & R. |
| Mar 13, 2019 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E. & R. Read second time and amended. |
| Feb 28, 2019 | Referred to Com. on P.E. & R. |
| Feb 19, 2019 | From printer. May be heard in committee March 21. |
| Feb 15, 2019 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 20, 2020 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 17, 2020 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 11, 2020 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Labor, Public Employment and Retirement |
Passed |
|
| May 13, 2019 | AB 664 Cooper Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 24, 2019 | Do pass. | Assembly Standing Committee on Public Employment and Retirement |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 664 |
THIRD READING
Bill No: AB 664
Author: Cooper (D), Bonta (D) and Gonzalez (D), et al.
Amended: 8/25/20 in Senate
Vote: 27 - Urgency
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 3-0, 8/11/20
AYES: Hill, Jackson, Mitchell
NO VOTE RECORDED: Morrell, Pan
SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/20/20
AYES: Portantino, Bradford, Hill, Leyva, Wieckowski
NO VOTE RECORDED: Bates, Jones
ASSEMBLY FLOOR: Not relevant
SUBJECT: Workers’ compensation: injury: COVID-19
SOURCE: CAL FIRE Local 2881
California Association of Highway Patrolmen
California Professional Firefighters
California State Firefighters' Association
Peace Officers Research Association of California
DIGEST:
This bill creates a rebuttable presumption for specified employees diagnosed with a communicable disease, as specified.
Senate Floor Amendments of 8/25/20 specify that the this presumption applies to peace officers diagnosed on or after January 1, 2020, if the peace officer meets the specifications, and sets a sunset of July 1, 2024.
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.
- Creates a series of disputable presumptions of an occupational injury for peace and safety officers for the purposes of the workers’ compensation system. These presumptions include:
- Bloodborne Pathogens;
- Methicillin-Resistant Staphylococcus Aureus (MRSA);
- Meningitis; and
- Tuberculosis.
The compensation awarded for these injuries must include full hospital, surgical, medical treatment, disability indemnity, and death benefits, as provided by workers compensation law. These presumptions tend to run for 5 to 10 years commencing on their last day of employment, depending on the injury and the peace officer classification involved. Peace officers whose principal duties are clerical, such as stenographers, telephone operators, and other office workers are excluded. (Labor Code §§3212 to 3213.2)
- Provides that the presumptions listed above are disputable and may be controverted by evidence. However, unless controverted, the Workers’ Compensation Appeals Board must find in accordance with the presumption. (Labor Code §§3212 to 3213.2)
This bill:
- Creates a rebuttable presumption that a diagnosis of a diagnosis of coronavirus disease 2019 (COVID-19), that occurs on or after January 1, 2020, and that is the subject of a state or local declaration of a state of emergency that is issued on or after January 1, 2020, is an occupational injury and thereby covered by the California workers’ compensation system.
- Provides that workers’ compensation benefits for an injury described above includes full hospital, surgical, medical treatment, disability indemnity, and death benefits illness or death resulting from COVID-19, that is diagnosed on or after January 1, 2020, if all of the following circumstances apply:
- The person was diagnosed with or tested positive for COVID-19 within 14 days after a day that the employee performed labor or services at the employee’s place of employment at the employer’s direction.
- A diagnosis as described in subdivision (b) was done by a physician and surgeon licensed by the Medical Board of California and that diagnosis is confirmed by further testing within 30 days of the date of diagnosis.
- The diagnosis was done by a physician who holds a physician and surgeon license issued by the Medical Board of California and that diagnosis is confirmed by further testing within 30 days of the date of diagnosis.
- Provides that the presumption extends for 30 days following termination of service, commencing with the last date actually worked in the applicable capacity.
- Provides that, if an employer does not dispute liability within 30 days of a communicable disease injury, the illness is presumed compensable, unless rebutted by evidence only discovered after the 30-day period.
- Makes findings and declarations on, when a state public health emergency is declared, both of the following policies and goals should be implemented:
- Provision of temporary housing costs and living expenses related to an ordered quarantine.
- An employee directed to enter quarantine by a licensed health care professional, a public health officer or agency, or the employer as a result of exposure to a communicable disease injury must be provided paid leave and not be required to use the employee’s accrued vacation leave, personal leave, compensatory leave, sick leave, or any other personal leave.
- Adds the provision or reimbursement of emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
- Prohibits employers from failing to provide or reimburse employees for emergency equipment, PPE, or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
- Sunsets the provisions above on July 1, 2024.
Related/Prior Legislation
SB 542 (Stern, Chapter 390, Statutes of 2019) created the post-traumatic stress disorder industrial injury presumption for firefighters and peace officers.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, the Department of Industrial Relations indicates annual costs to its Division of Workers Compensation of, minimally, $4 million (special fund). This figure reflects an assumed increase in new claims in the low tens of thousands, a proportion of which would result in applications for adjudication filed at the Workers’ Compensation Appeals Board.
SUPPORT: (Verified 8/20/20)
CAL FIRE Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
California Professional Firefighters (co-source)
California State Firefighters' Association (co-source)
Peace Officers Research Association of California (co-source)
Alameda County Deputy Sheriffs' Association
Association of Orange County Deputy Sheriff's
California Fraternal Order of Police
California Labor Federation, AFL-CIO
California Narcotic Officers' Association
California Nurses Association
California Statewide Law Enforcement Association
California Teamsters Public Affairs Council
City of Beverly Hills
Fontana Police Officers Association
Law Enforcement Managers Association
Long Beach Police Officers Association
Oakland Police Officers' Association
Orange County Employees Association
Riverside Sheriffs' Association
Sacramento County Deputy Sheriffs Association
San Bernardino County Safety Employees' Benefit Association
San Jose Police Officers' Association
OPPOSITION: (Verified 8/20/20)
Acclamation Insurance Management Services, Inc.
Advanced Medical Technology Association
Allied Manager Care, Inc.
American Property Casualty Insurance Association
Apple Valley Chamber of Commerce
Association of California Healthcare Districts
Association of California Life & Health Insurance Companies
Association of Claims Professionals
Auto Care Association
Beaumont Chamber of Commerce
breckpoint
California Association of Joint Powers Authorities
California Association of Sheet Metal and Air Conditioning Contractors
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Farm Labor Contractor Association
California Forestry Association
California Fuels and Convenience Alliance
California Hospital Association
California League of Food Producers
California Schools Joint Powers Authority
California Special Districts Association
California State Association of Counties
CAWA – Representing the Automotive Parts Industry
Chino Valley Chamber of Commerce
CompAlliance
Corona Chamber of Commerce
County of Monterey
CSAC Excess Insurance Authority
Garden Grove Chamber of Commerce
Gilroy Chamber of Commerce
Greater Coachella Valley Chamber of Commerce
Greater Ontario Business Council
Hemet San Jacinto Valley Chamber of Commerce
Hesperia Chamber of Commerce
Inland Empire Economic Partnership
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Moreno Valley Chamber of Commerce
Murrieta Wildomar Chamber of Commerce
National Association of Insurance & Financial Advisors - California
National Association of Mutual Insurance Companies
National Federation of Independent Business
Official Police Garages Association of Los Angeles
Orange County Business Council
Perris Valley Chamber of Commerce
Personal Insurance Federation of California
Rancho Cucamonga Chamber of Commerce
Redlands Chamber of Commerce
San Gabriel Valley Economic Partnership
South Bay Association of Chambers of Commerce
Special District Risk Management Authority
Upland Chamber of Commerce
Urban Counties of California
Victor Valley Chamber of Commerce
Western Insurance Agents Association
ARGUMENTS IN SUPPORT: The Peace Officers Research Association of California (PORAC), writing in as a co-sponsor, argues the following:
“COVID-19 is not only a public health crisis but is also a First responder crisis as peace officers, fire fighters, emergency medical technicians, and hospital personnel contract the virus. As public servants, law enforcement officers take an oath to protect our communities and play a critical role in responding to emergency situations. Therefore, we are placed at a higher risk of exposure and infection to COVID-19. By classifying COVID-19, as well as other communicable diseases, as presumptive work-related injuries, as defined in AB 664, our officers and their loved ones can have the peace of mind and security in knowing they will be protected under law if they come in contact with or are infected by the virus.
“PORAC is committed to ensuring that the brave women and men of law enforcement are safe as they carry out their duties, and those brave women and men are dedicated to serving our communities, even and especially in this time of unprecedented global crisis. Thank you for supporting our efforts and the health and wellbeing of our officers through your authorship of AB 664.”
ARGUMENTS IN OPPOSITION: The California Chamber of Commerce, writing in opposition, argues the following:
“AB 664 will impose a significant financial burden on employers, including those in the healthcare industry, and create a troubling precedent for the workers’ compensation system in general by creating a conclusive presumption that communicable diseases, including COVID-19, are conclusively workplace injuries for certain public employees and all hospital employees that provide direct patient care….
“AB 664 creates a conclusion of industrial causation for all hospital employees that provide direct patient care who are exposed to or contract a communicable disease, including COVID-19, during their employment, as well as for a time period after the end of employment. The practical impact of creating a conclusive presumption of industrial causation is that hospitals will have a no ability to contest a claim that they believe is non-industrial…. The creation of a conclusive presumption for employees, absent any justification, serves only to make it impossible for an employer to contest any claim for benefits, which will unnecessarily increase costs for employers.
“Although there is a long history of legal presumptions being applied to public safety employees in the workers’ compensation system, there has never been a presumption applied to private sector employees. AB 664 would be the first such conclusory presumption applied to private sector employees.”
Prepared by: Gideon L. Baum / L., P.E. & R. / (916) 651-1556
8/26/20 15:03:03
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 664 |
THIRD READING
Bill No: AB 664
Author: Cooper (D), Bonta (D) and Gonzalez (D), et al.
Amended: 7/31/20 in Senate
Vote: 27 - Urgency
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 3-0, 8/11/20
AYES: Hill, Jackson, Mitchell
NO VOTE RECORDED: Morrell, Pan
SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/20/20
AYES: Portantino, Bradford, Hill, Leyva, Wieckowski
NO VOTE RECORDED: Bates, Jones
ASSEMBLY FLOOR: Not relevant
SUBJECT: Workers’ compensation: injury: communicable disease
SOURCE: CAL FIRE Local 2881
California Association of Highway Patrolmen
California Professional Firefighters
California State Firefighters' Association
Peace Officers Research Association of California
DIGEST:
This bill creates a rebuttable presumption for specified employees diagnosed with a communicable disease, as specified.
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.
- Creates a series of disputable presumptions of an occupational injury for peace and safety officers for the purposes of the workers’ compensation system. These presumptions include:
- Bloodborne Pathogens
- Methicillin-Resistant Staphylococcus Aureus (MRSA)
- Meningitis
- Tuberculosis
The compensation awarded for these injuries must include full hospital, surgical, medical treatment, disability indemnity, and death benefits, as provided by workers compensation law. These presumptions tend to run for 5 to 10 years commencing on their last day of employment, depending on the injury and the peace officer classification involved. Peace officers whose principal duties are clerical, such as stenographers, telephone operators, and other office workers are excluded. (Labor Code §§3212 to 3213.2)
- Provides that the presumptions listed above are disputable and may be controverted by evidence. However, unless controverted, the Workers’ Compensation Appeals Board must find in accordance with the presumption. (Labor Code §§3212 to 3213.2)
This bill:
- Creates a rebuttable presumption that a diagnosis of a diagnosis of a communicable disease, including coronavirus disease 2019 (COVID-19), that occurs on or after January 1, 2020, and that is the subject of a state or local declaration of a state of emergency that is issued on or after January 1, 2020, is an occupational injury and thereby covered by the California workers’ compensation system.
- Provides that workers’ compensation benefits for an injury described above includes full hospital, surgical, medical treatment, disability indemnity, and death benefits.
- Provides that the conclusive presumption extends for 30 days following termination of service, commencing with the last date actually worked in the applicable capacity.
- Provides that, if an employer does not dispute liability within 30 days of a communicable disease injury, the illness is presumed compensable, unless rebutted by evidence only discovered after the 30-day period.
- Makes findings and declarations on, when a state public health emergency is declared, both of the following policies and goals should be implemented:
- Provision of temporary housing costs and living expenses related to an ordered quarantine.
- An employee directed to enter quarantine by a licensed health care professional, a public health officer or agency, or the employer as a result of exposure to a communicable disease injury must be provided paid leave and not be required to use the employee’s accrued vacation leave, personal leave, compensatory leave, sick leave, or any other personal leave.
- Adds the provision or reimbursement of emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
- Prohibits employers from failing to provide or reimburse employees for emergency equipment, PPE, or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
Comments
- AB 664 and the Challenge of Futureproofing:
Currently, the California workers’ compensation system has a series of rebuttal presumptions for peace officers and firefighters. While it is rare that these industrial presumptions are rebutted, the opportunity for an employer to rebut a claim, present their evidence, and have their day before the Workers Compensation Appeals Board (WCAB). This due process is not just an act of generosity on the part of the Legislature. It is a core component of our constitutionally created “grand bargain”.
As noted above, AB 664 extends a rebuttable presumption that a future, undefined communicable disease is an industrial injury for specified workers under specified circumstances. This merits additional discussion.
What is a state public health emergency?
AB 664 creates a rebuttable presumption for a communicable disease when that disease is the subject of a state public health emergency. What is a state public health emergency? Is it a declaration of emergency by the Governor? Is it a public health emergency declaration by the federal Department of Health and Human Services (DHHS)? If the state public health emergency deals with a non-human communicable disease, does that create any potential liability?
How long does a presumption triggered by a state public health emergency last?
Earlier this year, Governor Newsom created a rebuttable presumption that COVID-19 is an industrial injury for essential workers. This presumption ran for 90 days, ending on July 5, 2020, although the Governor could extend it later. This is similar to the federal public health emergency by DHHS. Alternatively, a declaration of emergency can remain on the books for years, even if the emergency ends, unless the Governor officially ends the emergency. What timeline would the AB 664 presumption follow?
What is a Communicable Disease Diagnosis?
Under AB 664, a diagnosis of a communicable disease is sufficient to trigger a presumption of an industrial injury. If a test is available for a communicable disease, and the doctor does not test a worker for the communicable disease, is the diagnosis valid? Is a diagnosis valid if it comes significantly after the illness? Who has the ability to diagnose the communicable disease? Is it any medical provider in the workers’ compensation system? Or does it need to be a medical doctor?
Related/Prior Legislation
SB 542 (Stern, Chapter 390, Statutes of 2019) created the post-traumatic stress disorder industrial injury presumption for firefighters and peace officers.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, the Department of Industrial Relations indicates annual costs to its Division of Workers Compensation of, minimally, $4 million (special fund). This figure reflects an assumed increase in new claims in the low tens of thousands, a proportion of which would result in applications for adjudication filed at the WCAB.
SUPPORT: (Verified 8/20/20)
CAL FIRE Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
California Professional Firefighters (co-source)
California State Firefighters' Association (co-source)
Peace Officers Research Association of California (co-source)
Alameda County Deputy Sheriffs' Association
Association of Orange County Deputy Sheriff's
California Fraternal Order of Police
California Labor Federation, AFL-CIO
California Narcotic Officers' Association
California Nurses Association
California Statewide Law Enforcement Association
California Teamsters Public Affairs Council
City of Beverly Hills
Fontana Police Officers Association
Law Enforcement Managers Association
Long Beach Police Officers Association
Oakland Police Officers' Association
Orange County Employees Association
Riverside Sheriffs' Association
Sacramento County Deputy Sheriffs Association
San Bernardino County Safety Employees' Benefit Association
San Jose Police Officers' Association
OPPOSITION: (Verified 8/20/20)
Acclamation Insurance Management Services, Inc.
Advanced Medical Technology Association
Allied Manager Care, Inc.
American Property Casualty Insurance Association
Apple Valley Chamber of Commerce
Association of California Healthcare Districts
Association of California Life & Health Insurance Companies
Association of Claims Professionals
Auto Care Association
Beaumont Chamber of Commerce
breckpoint
California Association of Joint Powers Authorities
California Association of Sheet Metal and Air Conditioning Contractors
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Farm Labor Contractor Association
California Forestry Association
California Fuels and Convenience Alliance
California Hospital Association
California League of Food Producers
California Schools Joint Powers Authority
California Special Districts Association
California State Association of Counties
CAWA – Representing the Automotive Parts Industry
Chino Valley Chamber of Commerce
CompAlliance
Corona Chamber of Commerce
County of Monterey
CSAC Excess Insurance Authority
Garden Grove Chamber of Commerce
Gilroy Chamber of Commerce
Greater Coachella Valley Chamber of Commerce
Greater Ontario Business Council
Hemet San Jacinto Valley Chamber of Commerce
Hesperia Chamber of Commerce
Inland Empire Economic Partnership
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Moreno Valley Chamber of Commerce
Murrieta Wildomar Chamber of Commerce
National Association of Insurance & Financial Advisors - California
National Association of Mutual Insurance Companies
National Federation of Independent Business
Official Police Garages Association of Los Angeles
Orange County Business Council
Perris Valley Chamber of Commerce
Personal Insurance Federation of California
Rancho Cucamonga Chamber of Commerce
Redlands Chamber of Commerce
San Gabriel Valley Economic Partnership
South Bay Association of Chambers of Commerce
Special District Risk Management Authority
Upland Chamber of Commerce
Urban Counties of California
Victor Valley Chamber of Commerce
Western Insurance Agents Association
ARGUMENTS IN SUPPORT: The Peace Officers Research Association of California (PORAC), writing in as a co-sponsor, argues the following:
“COVID-19 is not only a public health crisis but is also a First responder crisis as peace officers, fire fighters, emergency medical technicians, and hospital personnel contract the virus. As public servants, law enforcement officers take an oath to protect our communities and play a critical role in responding to emergency situations. Therefore, we are placed at a higher risk of exposure and infection to COVID-19. By classifying COVID-19, as well as other communicable diseases, as presumptive work-related injuries, as defined in AB 664, our officers and their loved ones can have the peace of mind and security in knowing they will be protected under law if they come in contact with or are infected by the virus.
“PORAC is committed to ensuring that the brave women and men of law enforcement are safe as they carry out their duties, and those brave women and men are dedicated to serving our communities, even and especially in this time of unprecedented global crisis. Thank you for supporting our efforts and the health and wellbeing of our officers through your authorship of AB 664.”
ARGUMENTS IN OPPOSITION: The California Chamber of Commerce, writing in opposition, argues the following:
“AB 664 will impose a significant financial burden on employers, including those in the healthcare industry, and create a troubling precedent for the workers’ compensation system in general by creating a conclusive presumption that communicable diseases, including COVID-19, are conclusively workplace injuries for certain public employees and all hospital employees that provide direct patient care….
“AB 664 creates a conclusion of industrial causation for all hospital employees that provide direct patient care who are exposed to or contract a communicable disease, including COVID-19, during their employment, as well as for a time period after the end of employment. The practical impact of creating a conclusive presumption of industrial causation is that hospitals will have a no ability to contest a claim that they believe is non-industrial…. The creation of a conclusive presumption for employees, absent any justification, serves only to make it impossible for an employer to contest any claim for benefits, which will unnecessarily increase costs for employers.
“Although there is a long history of legal presumptions being applied to public safety employees in the workers’ compensation system, there has never been a presumption applied to private sector employees. AB 664 would be the first such conclusory presumption applied to private sector employees.”
Prepared by: Gideon L. Baum / L., P.E. & R. / (916) 651-1556
8/21/20 17:30:13
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2019 - 2020 Regular Session
AB 664 (Cooper) - Workers’ compensation: injury: communicable disease
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 664 would create a rebuttable presumption for specified employees diagnosed with a communicable disease, as specified.
Fiscal Impact:
Extending coverage of presumptive injuries to specified employees would likely result in increases to workers compensation premiums. Thus, the bill would result in higher workers compensation premium costs for state departments, as the State is a direct employer. The magnitude is unknown, but potentially in the millions of dollars annually across all state departments (General Fund and special funds).
The Department of Industrial Relations (DIR) indicates annual costs to its Division of Workers Compensation (DWC) of, minimally, $4 million (special fund). This figure reflects an assumed increase in new claims in the low tens of thousands, a proportion of which would result in applications for adjudication filed at the Workers Compensation Appeals Board (WCAB). This rise in application filings would lead to increased utilization of all DWC programs and services in the workers’ compensation system, necessitating additional staff, equipment, and facilities to meet the increased demand and workload.
The bill’s presumption expansion would include specified state peace office and hospital employees. The exact magnitude of the impact to the State is unknown, but likely significant, and would depend on a variety of factors, including the number of affected employees and the rate of infection.
Background:
Current law creates presumptions to reflect instances where injuries or illnesses seem to be work-related, but it is difficult for the employee to prove so. Presumptions are rebuttable, but given that many injuries for which presumptions exist can have a variety of causes, it is difficult to prove they are not work-related. Consequently, employers seldom attempt to rebut presumptions. In the absence of such a presumption, an employee must prove an injury is work-related in order to qualify for workers compensation.
Current law includes presumptions for cancer, lower back impairment, hernia, heart trouble, tuberculosis, pneumonia, meningitis and biochemical exposures. These presumptions generally apply to a majority of peace officers employed by public agencies including firefighters, police and sheriffs, California Highway Patrol, and correctional institutions.
Proposed Law:
The bill would, among other things, do the following:
- Create a rebuttable presumption that a diagnosis of a communicable disease, including coronavirus disease 2019 (COVID-19), that occurs on or after January 1, 2020, and that is the subject of a state or local declaration of a state of emergency that is issued on or after January 1, 2020, is an occupational injury and thereby covered by the California workers’ compensation system.
- Provide that workers’ compensation benefits for an injury described above includes full hospital, surgical, medical treatment, disability indemnity, and death benefits.
- Provide that the conclusive presumption extends for 30 days following termination of service, commencing with the last date actually worked in the applicable capacity.
- Provide that, if an employer does not dispute liability within 30 days of a communicable disease injury, the illness is presumed compensable, unless rebutted by evidence only discovered after the 30-day period.
- Add the provision or reimbursement of emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
- Prohibit employers from failing to provide or reimburse employees for emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
Related Legislation:
- AB 196 (Gonzalez) would extend a conclusive presumption to all essential employees, as defined, that COVID-19 is an industrial injury. The bill is up for hearing on August 17th, 2020 in this Committee.
- SB 1159 (Hill) would (1) codify the Governor’s Executive Order (N-62-20) that created a rebuttable presumption that “essential employees” who contracted COVID-19 were infected on the job, and (2) establish the scope and terms of a similar presumption for infected employees outside of the Executive Order. The bill is currently pending in the Assembly Appropriations Committee.
- SB 542 (Stern, Chapter 390, Statutes of 2019) creates the PTSD industrial injury presumption for firefighters and peace officers.
-- END --
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Jerry Hill, Chair
2019 - 2020 Regular
Bill No: AB 664 Hearing Date: August 11, 2020
Author: | Cooper | ||
Version: | July 31, 2020 | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Gideon L. Baum | ||
SUBJECT: Workers’ compensation: injury: communicable disease
KEY ISSUE
Should the Legislature create a rebuttable presumption for specified employees diagnosed with a communicable disease, as specified?
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.
- Creates a series of disputable presumptions of an occupational injury for peace and safety officers for the purposes of the workers’ compensation system. These presumptions include:
- Bloodborne Pathogens
- Methicillin-Resistant Staphylococcus Aureus (MRSA)
- Meningitis
- Tuberculosis
The compensation awarded for these injuries must include full hospital, surgical, medical treatment, disability indemnity, and death benefits, as provided by workers compensation law. These presumptions tend to run for 5 to 10 years commencing on their last day of employment, depending on the injury and the peace officer classification involved. Peace officers whose principal duties are clerical, such as stenographers, telephone operators, and other office workers are excluded. (Labor Code §§3212 to 3213.2)
- Provides that the presumptions listed above are disputable and may be controverted by evidence. However, unless controverted, the Workers’ Compensation Appeals Board must find in accordance with the presumption. (Labor Code §§3212 to 3213.2)
This bill:
- Creates a rebuttable presumption that a diagnosis of a diagnosis of a communicable disease, including coronavirus disease 2019 (COVID-19), that occurs on or after January 1, 2020, and that is the subject of a state or local declaration of a state of emergency that is issued on or after January 1, 2020, is an occupational injury and thereby covered by the California workers’ compensation system.
- Provides that workers’ compensation benefits for an injury described above includes full hospital, surgical, medical treatment, disability indemnity, and death benefits.
- Provides that the conclusive presumption extends for 30 days following termination of service, commencing with the last date actually worked in the applicable capacity.
- Provides that, if an employer does not dispute liability within 30 days of a communicable disease injury, the illness is presumed compensable, unless rebutted by evidence only discovered after the 30-day period.
- Makes findings and declarations on, when a state public health emergency is declared, both of the following policies and goals should be implemented:
- Provision of temporary housing costs and living expenses related to an ordered quarantine.
- An employee directed to enter quarantine by a licensed health care professional, a public health officer or agency, or the employer as a result of exposure to a communicable disease injury must be provided paid leave and not be required to use the employee’s accrued vacation leave, personal leave, compensatory leave, sick leave, or any other personal leave.
- Adds the provision or reimbursement of emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
- Prohibits employers from failing to provide or reimburse employees for emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
COMMENTS
1. AB 664 and the Challenge of Futureproofing:
Currently, the California workers’ compensation system has a series of rebuttal presumptions for peace officers and firefighters. While it is rare that these industrial presumptions are rebutted, the opportunity for an employer to rebut a claim, present their evidence, and have their day before the WCAB. This due process is not just an act of generosity on the part of the Legislature. It is a core component of our constitutionally created “grand bargain”.
As noted above, AB 664 extends a rebuttable presumption that a future, undefined communicable disease is an industrial injury for specified workers under specified circumstances. This merits additional discussion.
What is a state public health emergency?
AB 664 creates a rebuttable presumption for a communicable disease when that disease is the subject of a state public health emergency. What is a state public health emergency? Is it a declaration of emergency by the Governor? Is it a public health emergency declaration by the federal Department of Health and Human Services (DHHS)? If the state public health emergency deals with a non-human communicable disease, does that create any potential liability?
How long does a presumption triggered by a state public health emergency last?
Earlier this year, Governor Newsom created a rebuttable presumption that COVID-19 is an industrial injury for essential workers. This presumption ran for 90 days, ending on July 5, 2020, although the Governor could extend it later. This is similar to the federal public health emergency by DHHS. Alternatively, a declaration of emergency can remain on the books for years, even if the emergency ends, unless the Governor officially ends the emergency. What timeline would the AB 664 presumption follow?
What is a Communicable Disease Diagnosis?
Under AB 664, a diagnosis of a communicable disease is sufficient to trigger a presumption of an industrial injury. If a test is available for a communicable disease, and the doctor does not test a worker for the communicable disease, is the diagnosis valid? Is a diagnosis valid if it comes significantly after the illness? Who has the ability to diagnose the communicable disease? Is it any medical provider in the workers’ compensation system? Or does it need to be a medical doctor?
2. Proponent Arguments:
The Peace Officers Research Association of California (PORAC), writing in as a co-sponsor, argues the following:
“COVID-19 is not only a public health crisis but is also a First responder crisis as peace officers, fire fighters, emergency medical technicians, and hospital personnel contract the virus. As public servants, law enforcement officers take an oath to protect our communities and play a critical role in responding to emergency situations. Therefore, we are placed at a higher risk of exposure and infection to COVID-19. By classifying COVID-19, as well as other communicable diseases, as presumptive work-related injuries, as defined in AB 664, our officers and their loved ones can have the peace of mind and security in knowing they will be protected under law if they come in contact with or are infected by the virus.
PORAC is committed to ensuring that the brave women and men of law enforcement are safe as they carry out their duties, and those brave women and men are dedicated to serving our communities, even and especially in this time of unprecedented global crisis. Thank you for supporting our efforts and the health and wellbeing of our officers through your authorship of AB 664.”
3. Opponent Arguments:
The California Chamber of Commerce, writing in opposition, argues the following:
“AB 664 will impose a significant financial burden on employers, including those in the healthcare industry, and create a troubling precedent for the workers’ compensation system in general by creating a conclusive presumption that communicable diseases, including COVID-19, are conclusively workplace injuries for certain public employees and all hospital employees that provide direct patient care….
AB 664 creates a conclusion of industrial causation for all hospital employees that provide direct patient care who are exposed to or contract a communicable disease, including COVID-19, during their employment, as well as for a time period after the end of employment. The practical impact of creating a conclusive presumption of industrial causation is that hospitals will have a no ability to contest a claim that they believe is non-industrial…. The creation of a conclusive presumption for employees, absent any justification, serves only to make it impossible for an employer to contest any claim for benefits, which will unnecessarily increase costs for employers.
Although there is a long history of legal presumptions being applied to public safety employees in the workers’ compensation system, there has never been a presumption applied to private sector employees. AB 664 would be the first such conclusory presumption applied to private sector employees. Workers’ compensation is designed to apply a consistent, objective set of rules to determine eligibility, medical needs and disability payments for all injured workers in California. We do not believe that the Legislature should take on the role of trying to identify likely injuries for every occupation in the state with the goal of creating special rules for those employees. This is an unrealistic expectation in an insurance system that covers thousands of types of employees and employers.”
4. Prior Legislation:
SB 542 (Stern), Chapter 390, Statutes of 2019, creates the PTSD industrial injury presumption for firefighters and peace officers.
SUPPORT
CAL FIRE Local 2881 (Co-Sponsor)
California Association of Highway Patrolmen (Co-Sponsor)
California Professional Firefighters (Co-Sponsor)
California State Firefighters' Association (Co-Sponsor)
Peace Officers Research Association of California (Co-Sponsor)
Alameda County Deputy Sheriffs' Association
Association of Orange County Deputy Sheriff's
California Fraternal Order of Police
California Labor Federation, AFL-CIO
California Narcotic Officers' Association
California Nurses Association
California Statewide Law Enforcement Association
California Teamsters Public Affairs Council
City of Beverly Hills
Fontana Police Officers Association
Law Enforcement Managers Association
Long Beach Police Officers Association
Oakland Police Officers' Association
Orange County Employees Association
Riverside Sheriffs' Association
Sacramento County Deputy Sheriffs Association
San Bernardino County Safety Employees' Benefit Association
San Jose Police Officers' Association
OPPOSITION
Acclamation Insurance Management Services, Inc
Advanced Medical Technology Association
Allied Manager Care, Inc.
American Property Casualty Insurance Association
Apple Valley Chamber of Commerce
Association of California Healthcare Districts
Association of California Life & Health Insurance Companies
Association of Claims Professionals
Auto Care Association
Beaumont Chamber of Commerce
breckpoint
California Association of Joint Powers Authorities California Association of Sheet Metal and Air Conditioning Contractors National Association
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Farm Labor Contractor Association
California Forestry Association
California Fuels and Convenience Alliance
California Hospital Association
California League of Food Producers
California Schools Joint Powers Authority
California Special Districts Association
California State Association of Counties ®
CAWA – Representing the Automotive Parts Industry
Chino Valley Chamber of Commerce
CompAlliance
Corona Chamber of Commerce
County of Monterey
CSAC Excess Insurance Authority
Garden Grove Chamber of Commerce
Gilroy Chamber of Commerce
Greater Coachella Valley Chamber of Commerce
Greater Ontario Business Council
Hemet San Jacinto Valley Chamber of Commerce
Hesperia Chamber of Commerce
Inland Empire Economic Partnership (IEEP)
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation (BIZFED)
Moreno Valley Chamber of Commerce
Murrieta Wildomar Chamber of Commerce
National Association of Insurance & Financial Advisors - California
National Association of Mutual Insurance Companies
National Federation of Independent Business
Official Police Garages Association of Los Angeles
Orange County Business Council
Perris Valley Chamber of Commerce
Personal Insurance Federation of California
Rancho Cucamonga Chamber of Commerce
Redlands Chamber of Commerce
San Gabriel Valley Economic Partnership
South Bay Association of Chambers of Commerce
Special District Risk Management Authority
Upland Chamber of Commerce
Urban Counties of California
Victor Valley Chamber of Commerce
Western Insurance Agents Association
-- END --
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Jerry Hill, Chair
2019 - 2020 Regular
Bill No: AB 664 Hearing Date: August 11, 2020
Author: | Cooper | ||
Version: | July 31, 2020 | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Gideon L. Baum | ||
SUBJECT: Workers’ compensation: injury: communicable disease
KEY ISSUE
Should the Legislature create a rebuttable presumption for specified employees diagnosed with a communicable disease, as specified?
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.
- Creates a series of disputable presumptions of an occupational injury for peace and safety officers for the purposes of the workers’ compensation system. These presumptions include:
- Bloodborne Pathogens
- Methicillin-Resistant Staphylococcus Aureus (MRSA)
- Meningitis
- Tuberculosis
The compensation awarded for these injuries must include full hospital, surgical, medical treatment, disability indemnity, and death benefits, as provided by workers compensation law. These presumptions tend to run for 5 to 10 years commencing on their last day of employment, depending on the injury and the peace officer classification involved. Peace officers whose principal duties are clerical, such as stenographers, telephone operators, and other office workers are excluded. (Labor Code §§3212 to 3213.2)
- Provides that the presumptions listed above are disputable and may be controverted by evidence. However, unless controverted, the Workers’ Compensation Appeals Board must find in accordance with the presumption. (Labor Code §§3212 to 3213.2)
This bill:
- Creates a rebuttable presumption that a diagnosis of a diagnosis of a communicable disease, including coronavirus disease 2019 (COVID-19), that occurs on or after January 1, 2020, and that is the subject of a state or local declaration of a state of emergency that is issued on or after January 1, 2020, is an occupational injury and thereby covered by the California workers’ compensation system.
- Provides that workers’ compensation benefits for an injury described above includes full hospital, surgical, medical treatment, disability indemnity, and death benefits.
- Provides that the conclusive presumption extends for 30 days following termination of service, commencing with the last date actually worked in the applicable capacity.
- Provides that, if an employer does not dispute liability within 30 days of a communicable disease injury, the illness is presumed compensable, unless rebutted by evidence only discovered after the 30-day period.
- Makes findings and declarations on, when a state public health emergency is declared, both of the following policies and goals should be implemented:
- Provision of temporary housing costs and living expenses related to an ordered quarantine.
- An employee directed to enter quarantine by a licensed health care professional, a public health officer or agency, or the employer as a result of exposure to a communicable disease injury must be provided paid leave and not be required to use the employee’s accrued vacation leave, personal leave, compensatory leave, sick leave, or any other personal leave.
- Adds the provision or reimbursement of emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
- Prohibits employers from failing to provide or reimburse employees for emergency equipment, personal protective equipment (PPE), or ancillary equipment that prevents injury to an employee, to an existing requirement that employers provide a safe workplace.
COMMENTS
1. AB 664 and the Challenge of Futureproofing:
Currently, the California workers’ compensation system has a series of rebuttal presumptions for peace officers and firefighters. While it is rare that these industrial presumptions are rebutted, the opportunity for an employer to rebut a claim, present their evidence, and have their day before the WCAB. This due process is not just an act of generosity on the part of the Legislature. It is a core component of our constitutionally created “grand bargain”.
As noted above, AB 664 extends a rebuttable presumption that a future, undefined communicable disease is an industrial injury for specified workers under specified circumstances. This merits additional discussion.
What is a state public health emergency?
AB 664 creates a rebuttable presumption for a communicable disease when that disease is the subject of a state public health emergency. What is a state public health emergency? Is it a declaration of emergency by the Governor? Is it a public health emergency declaration by the federal Department of Health and Human Services (DHHS)? If the state public health emergency deals with a non-human communicable disease, does that create any potential liability?
How long does a presumption triggered by a state public health emergency last?
Earlier this year, Governor Newsom created a rebuttable presumption that COVID-19 is an industrial injury for essential workers. This presumption ran for 90 days, ending on July 5, 2020, although the Governor could extend it later. This is similar to the federal public health emergency by DHHS. Alternatively, a declaration of emergency can remain on the books for years, even if the emergency ends, unless the Governor officially ends the emergency. What timeline would the AB 664 presumption follow?
What is a Communicable Disease Diagnosis?
Under AB 664, a diagnosis of a communicable disease is sufficient to trigger a presumption of an industrial injury. If a test is available for a communicable disease, and the doctor does not test a worker for the communicable disease, is the diagnosis valid? Is a diagnosis valid if it comes significantly after the illness? Who has the ability to diagnose the communicable disease? Is it any medical provider in the workers’ compensation system? Or does it need to be a medical doctor?
2. Proponent Arguments:
The Peace Officers Research Association of California (PORAC), writing in as a co-sponsor, argues the following:
“COVID-19 is not only a public health crisis but is also a First responder crisis as peace officers, fire fighters, emergency medical technicians, and hospital personnel contract the virus. As public servants, law enforcement officers take an oath to protect our communities and play a critical role in responding to emergency situations. Therefore, we are placed at a higher risk of exposure and infection to COVID-19. By classifying COVID-19, as well as other communicable diseases, as presumptive work-related injuries, as defined in AB 664, our officers and their loved ones can have the peace of mind and security in knowing they will be protected under law if they come in contact with or are infected by the virus.
PORAC is committed to ensuring that the brave women and men of law enforcement are safe as they carry out their duties, and those brave women and men are dedicated to serving our communities, even and especially in this time of unprecedented global crisis. Thank you for supporting our efforts and the health and wellbeing of our officers through your authorship of AB 664.”
3. Opponent Arguments:
The California Chamber of Commerce, writing in opposition, argues the following:
“AB 664 will impose a significant financial burden on employers, including those in the healthcare industry, and create a troubling precedent for the workers’ compensation system in general by creating a conclusive presumption that communicable diseases, including COVID-19, are conclusively workplace injuries for certain public employees and all hospital employees that provide direct patient care….
AB 664 creates a conclusion of industrial causation for all hospital employees that provide direct patient care who are exposed to or contract a communicable disease, including COVID-19, during their employment, as well as for a time period after the end of employment. The practical impact of creating a conclusive presumption of industrial causation is that hospitals will have a no ability to contest a claim that they believe is non-industrial…. The creation of a conclusive presumption for employees, absent any justification, serves only to make it impossible for an employer to contest any claim for benefits, which will unnecessarily increase costs for employers.
Although there is a long history of legal presumptions being applied to public safety employees in the workers’ compensation system, there has never been a presumption applied to private sector employees. AB 664 would be the first such conclusory presumption applied to private sector employees. Workers’ compensation is designed to apply a consistent, objective set of rules to determine eligibility, medical needs and disability payments for all injured workers in California. We do not believe that the Legislature should take on the role of trying to identify likely injuries for every occupation in the state with the goal of creating special rules for those employees. This is an unrealistic expectation in an insurance system that covers thousands of types of employees and employers.”
4. Prior Legislation:
SB 542 (Stern), Chapter 390, Statutes of 2019, creates the PTSD industrial injury presumption for firefighters and peace officers.
SUPPORT
California Professional Firefighters (Co-Sponsor)
California State Firefighters' Association (Co-Sponsor)
Peace Officers Research Association of California (Co-Sponsor)
Alameda County Deputy Sheriffs' Association
Association of Orange County Deputy Sheriff's
California Fraternal Order of Police
California Labor Federation, AFL-CIO
California Narcotic Officers' Association
California Nurses Association
California Statewide Law Enforcement Association
California Teamsters Public Affairs Council
City of Beverly Hills
Fontana Police Officers Association
Law Enforcement Managers Association
Long Beach Police Officers Association
Oakland Police Officers' Association
Orange County Employees Association
Riverside Sheriffs' Association
Sacramento County Deputy Sheriffs Association
San Bernardino County Safety Employees' Benefit Association
San Jose Police Officers' Association
OPPOSITION
Acclamation Insurance Management Services, Inc
Advanced Medical Technology Association
Allied Manager Care, Inc.
American Property Casualty Insurance Association
Apple Valley Chamber of Commerce
Association of California Healthcare Districts
Association of California Life & Health Insurance Companies
Association of Claims Professionals
Auto Care Association
Beaumont Chamber of Commerce
breckpoint
California Association of Joint Powers Authorities California Association of Sheet Metal and Air Conditioning Contractors National Association
California Chamber of Commerce
California Coalition on Workers’ Compensation
California Farm Labor Contractor Association
California Forestry Association
California Fuels and Convenience Alliance
California Hospital Association
California League of Food Producers
California Schools Joint Powers Authority
California Special Districts Association
California State Association of Counties ®
CAWA – Representing the Automotive Parts Industry
Chino Valley Chamber of Commerce
CompAlliance
Corona Chamber of Commerce
County of Monterey
CSAC Excess Insurance Authority
Garden Grove Chamber of Commerce
Gilroy Chamber of Commerce
Greater Coachella Valley Chamber of Commerce
Greater Ontario Business Council
Hemet San Jacinto Valley Chamber of Commerce
Hesperia Chamber of Commerce
Inland Empire Economic Partnership (IEEP)
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation (BIZFED)
Moreno Valley Chamber of Commerce
Murrieta Wildomar Chamber of Commerce
National Association of Insurance & Financial Advisors - California
National Association of Mutual Insurance Companies
National Federation of Independent Business
Official Police Garages Association of Los Angeles
Orange County Business Council
Perris Valley Chamber of Commerce
Personal Insurance Federation of California
Rancho Cucamonga Chamber of Commerce
Redlands Chamber of Commerce
San Gabriel Valley Economic Partnership
South Bay Association of Chambers of Commerce
Special District Risk Management Authority
Upland Chamber of Commerce
Urban Counties of California
Victor Valley Chamber of Commerce
Western Insurance Agents Association
-- END --
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Jerry Hill, Chair
2019 - 2020 Regular
Bill No: AB 664 Hearing Date: June 26, 2019
Author: | Cooper | ||
Version: | March 13, 2019 | ||
Urgency: | No | Fiscal: | No |
Consultant: | Glenn Miles | ||
SUBJECT: County employees’ retirement: permanent incapacity
KEY ISSUE
Should the state require the Sacramento County retirement board to change how it evaluates a member’s application for peace officer disability retirement?
ANALYSIS
Existing law:
- Establishes the County Employees Retirement Law of 1937 (‘37 Act) which governs 20 independent county retirement associations (Government Code §31450 et seq.).
- Requires peace officers to be free from any physical, emotional or mental condition that might adversely affect the exercise of powers of a peace officer and to meet standards, as specified; and for those jurisdictions that adopt them, to meet requirements as developed by the Commission on Peace Officer Standards and Training (POST) to attain peace officer status (GC §1031, Penal Code §13510).
- Provides that a member permanently incapacitated for the performance of a duty must be retired for disability regardless of age, if:
- The incapacity is a result of injury or disease arising from, and in the course of, the member’s employment, and that employment substantially contributes to the incapacity, or
- The member has completed five years of service, and
- The member has not waived retirement due to the incapacity, or aggravation thereof, as specified. (GC§ 31720).
- Pursuant to Mansperger v. Public Employees' Retirement System (1970)
6 Cal.App. 3d 873, incapacitated for the performance of duty means the substantial inability of the applicant to perform his or her usual duties.
- Defines a peace officer in Penal Code Section 830 as any person who comes within the provisions of Chapter 4.5 of the Penal Code who otherwise meets all standards imposed by law on a peace officer and includes in addition to police, sheriff, deputies, several other categories of positions including security officers of municipal utilities and water districts, park rangers of water districts, welfare fraud investigators, child support inspectors, and various other law enforcement related positions.
- Provides that the restriction of peace officer functions of any public officer or employee shall not affect his or her status for purposes of retirement (PC §830).
- Pursuant to Attorney General Opinion (90 Ops. Cal. Atty. Gen. 7 (2009), distinguishes between a person attaining the status of a peace officer and a person exercising the powers of a peace officer. Thus, a person who has attained the status of a peace officer may have his or her right to exercise the powers of a peace officer restricted for no longer being able to meet one of the POST criteria, but he or she would retain his or her status as a peace officer.
- Pursuant to Harmon v. Board of Retirement (1976), 62 Cal. App. 3d 689, holds that a policy by a sheriff employer that all employees be capable of all POST certification requirements does not preclude a retirement board from finding that the employee is not permanently incapacitated for his or her usual duties and requiring the employee be returned to duty in a position that does not require the performance of one of the POST duties.
This bill:
- Requires Sacramento County Employees’ Retirement System (SCERS) to evaluate a sworn peace officer member’s permanent disability by whether the member can perform all of the usual and customary duties of a peace officer as defined in Penal Code §830.
- Eliminates the requirement that a member must have completed 5 years of service in order to receive a non-service related disability retirement.
- Provides that this bill will only apply to disability retirement applications filed after the bill’s effective date and shall not apply to an appeal bought before that date.
- Requires SCERS to develop a method of tracking the costs of providing permanent disability retirement to the members who become eligible for disability retirement under this bill’s provisions.
- Contains a sunset date of December 31, 2024.
COMMENTS
1. Need for this bill?
Background
Service-Connected Disability Retirement / Nonservice Connected Disability Retirement / Service Retirement
A peace officer member can retire with one of three different types of retirement allowances as determined by the cause of the officer’s retirement. A service-connected disability retirement may provide the most flexibility and greater after tax income depending on the individual member’s circumstances.
- Service-Connected Disability Retirement –
- Eligibility: Based on substantially job-related injuries arising out of and in the course of employment that permanently prevents the member from performing the member’s job duties.
- Vesting Requirement: None.
- Retirement Allowance: 50 percent of final compensation (or service retirement allowance if the member is eligible and the service retirement is greater).
- Non-Service Related Disability Retirement –
- Eligibility: Based on non-job injury (or injury not arising out of and in the course of employment) that permanently prevents the member from performing the duties of the member’s position.
- Vesting Requirement: 5 years of service.
- Additional Requirement: The member must not have waived a right to a disability retirement in exchange for the employer having waived passage of a physical fitness exam for the job.
- Retirement Allowance: 33.3 percent of final compensation (or service retirement allowance if the member is eligible and the service retirement is greater).
- Service Retirement –
- Eligibility: Based on age, service, and final compensation factors.
- Vesting Requirement: 5 years of service.
- Retirement Allowance: Depends on the member’s Tier, but generally for safety members 2.5% at 55.
What Standard Should a Retirement Board Use to Determine If a Peace Officer is Permanently Incapacitated from Performing the Officer’s Usual and Customary Duties?
One argument holds that a peace officer should get a disability retirement only if the officer is permanently unable to perform the usual and customary duties as required by that officer’s specific job classification. If the officer has a desk job, can still do that desk job, and it is not usual or customary for that officer to patrol, then the officer should not receive a disability retirement. Peace officer managers and supervisors are more likely to hold a desk job than “beat” or patrol officers and thus, this standard is more likely to affect them detrimentally than the rank-and-file patrol officers. Committee staff has referred to this standard alternatively as the “narrow”, “strict”, “tough”, or “Mansperger” standard. Hereafter, staff will refer to it as the Mansperger standard.
A contrary argument holds that all peace officers whether usually working a desk job or usually working a patrol job, face the same risks and have the same general requirement to be able to chase suspects and make arrests. Therefore, if a peace officer manager with a desk job whose usual and customary duties do not include patrol duties nevertheless sustains an injury that would prohibit that manager from patrol activity, the manager should get a disability retirement even though the manager could still do the desk job. Committee staff has referred to this standard alternatively as the “broad”, “accommodating”, or “generous” standard. Hereafter, staff will refer to it as the “Non-Mansperger” standard.
(The bill’s supporters want Sacramento County to use the Non-Mansperger standard. The bill’s opponents want to maintain Sacramento County’s local authority under the ’37 Act to use the Mansperger standard, which 16 of the 20 county retirement systems and CalPERS reportedly use.)
Things get complicated quickly. All sheriff jurisdictions require all of their officers to meet the general requirements for a peace officer under the Penal Code as a condition of employment. Many jurisdictions require officers to meet POST certification requirements (see above, Existing Law, #2). An officer’s employer may decide that an injured officer cannot meet those requirements and decide to terminate the officer. However, that employer does not get to decide whether the officer receives a disability retirement. The jurisdiction’s retirement board will make that decision.
Harmon, an important court case (see Existing Law, # 8), says the fact that the officer’s employer decided to make POST certification a condition of employment does not remove a retirement board’s authority to determine the officer’s disability retirement eligibility. The Government Code places that authority squarely with the retirement board (GC §31725). In addition, a 2009 Attorney General Opinion makes the distinction between obtaining the status of a peace officer under the Penal Code and having the right to exercise the powers of a peace officer (90 Ops. Cal. Atty. Gen. 7). A peace officer may lose the right in the officer’s jurisdiction to exercise the powers of a peace officer for being unable to fulfill POST requirements as required by the jurisdiction but may still have the status of a peace officer under the Penal Code. In other words, the sheriff may say the officer cannot work because of the officer’s injury but the retirement board may say the officer cannot receive a disability retirement because the officer can still work as a peace officer.
If the retirement board denies the service-connected disability application, the officer is not necessarily so bad off. The officer will likely qualify for a service retirement given that this problem usually arises with peace officer managers who have substantial years of service. Alternatively, the officer may receive a nonservice connected disability retirement. Either alternative is comparatively generous compared to other public employee retirement allowances.
Thus, this dispute is essentially about money. Depending on the officer’s individual circumstances, a disability retirement can provide more after tax income than a service retirement and definitely provides more income than a nonservice-connected allowance.
Under the Mansperger standard, some officers with the same or similar injury will get different outcomes to their disability application. If their job classification specifies they need to meet the POST requirements and they cannot because of the injury, they will probably get the service-connected disability retirement. If their job classification does not include those POST requirements and the injury does not prevent them from doing the duties specified in their job classification, it is likely they will not get a service-connected disability retirement.
From the peace officer manager’s perspective, this seems unfair. A patrol officer suffers injury in a patrol car accident and the retirement board approves the service-connected disability retirement. A manager or supervisor working at headquarters but riding along also suffers the same injury and the board denies the service-connected disability retirement.
From the retirement board’s perspective, the two officers in the example have substantively different jobs with very different day-to-day duties and responsibilities. If the manager is injured such that he or she cannot do the manager position’s job duties, the board will likely approve the manager’s disability retirement. From the retirement board’s perspective, the two employees are being treated the same (i.e., the retirement board assesses them each on whether they are permanently unable to perform the duties of their respective jobs. If so, board will approve their disability retirement).
AB 664 (Cooper, 2019) and AB 283 (Cooper, 2017)
This bill is substantially similar to AB 283 (Cooper, 2017), which died in the Senate Public Employment & Retirement Committee (SPE&R). This analysis incorporates the SPE&R policy analysis of AB 283 (Cooper, 2017) by reference.
Whereas, this bill imposes the Non-Mansperger standard only on SCERS, AB 283 would have imposed the Non-Mansperger on all ‘37 Act counties. In short, AB 283 would have eliminated the Mansperger standard for all 37 Act counties. If that occurs, CalPERS would face pressure to eliminate the Mansperger standard, as well. AB 283 raised substantial concerns that it would cause increases in peace officer disability retirements and substantially increase pension systems’ unfunded liability.
Sacramento County
Like the substantial majority of ’37 Act Counties and as well as CalPERS covered employers, SCERS use the Mansperger standard. AB 664 requires Sacramento County to apply the non-Mansperger standard as a pilot program (see above).
Committee Concerns
- AB 664 eliminates the requirement that a retirement system member must complete 5 years of service to be eligible for a nonservice-connected disability retirement.
- AB 664 takes away local control from Sacramento County in contravention of the purposes of the ’37 Act.
- The bill could result in higher instances of unnecessary disability retirements and increased unfunded liabilities at SCERS.
- It will likely result in further attempts to eliminate the Mansperger standard statewide which could significantly increase instances of disability retirements and substantially increase state and local unfunded pension liability.
- Although the bill applies only to disability applications made after the effective date and appeals brought after that date, those applications still relate to service that the members earned under the Mansperger standard. As such, one could argue that this bill grants a retroactive benefit enhancement.
Recommended Committee Amendments
- Strike the provision eliminating the 5-year service requirement for nonservice-connected retirements.
- Technical amendments related to code numbering.
2. Proponent Arguments
The author argues that ’37 Act jurisdictions treat similarly situated employees differently for purpose of determining disability retirement eligibility despite the fact that the California Penal Code requires all sworn peace officers to maintain the physical and mental ability to exercise the power of a peace officer regardless of rank or assignment. In short, the author argues that disability retirement eligibility should be the same for all peace officers.
Similarly, the Law Enforcement Manager’s Association points out that some ’37 Act boards treat peace officers with the same employer differently for purposes of determining disability retirement eligibility because some ‘37 Act boards “deny the permanent disability status because the day-to-day activities of higher ranking positions do not require the frequency of physical activities such as affecting arrests, like their subordinates.” Whereas, other retirement boards “grant the permanent incapacity status because regardless of rank these officers must meet certain standards throughout their careers and can be subjected to the physical demands of the job at any time.”
3. Opponent Arguments:
The Sacramento County Employees’ Retirement System (SCERS) states that,
This bill enhances benefits, which increases pension costs to the extent more members seek disability benefits due to the lower eligibility standard. Disability retirement can provide a higher lifetime pension for members without substantial years of service, a higher continuance benefit for a surviving spouse, and a significant tax exemption. SCERS also will face higher administrative costs if more disability applications are filed. Additionally, granting more disability awards than what was actuarially assumed will increase unfunded liabilities. Such action creates the conditions of a retroactive benefit increase, potentially in conflict with…the Public Employees’ Pension Reform Act.
Los Angele County Employees Retirement Association (LACERA),
Although AB 664 applies only to (SCERS) and not to LACERA, we share the concern raised by SCERS that the bill may give the incorrect impression that SCERS has not treated members fairly or is inconsistently applying disability retirement law under the CERL.
AS AB 664 is proposed as a “pilot program”, the results of which may potentially support expansion of its policy to the other CERL retirement systems that also provide disability retirement benefits, our concern is that the bill may give the incorrect impression that other CERL retirement systems also have not treated members fairly or have inconsistently applied CERL’s disability retirement law to their members.
LACERA, concludes by stating,
AB 664 would upend 50 years of precedent and establish a broader standard for the determination of permanent incapacity under the perception that members are treated inconsistently and consequently unfairly in their applications for disability retirement.
4. Prior Legislation:
Assembly Bill 283 (Cooper, 2017), which would have required ‘37 Act County Boards of Retirement, when evaluating whether a member employed in a peace officer position has a permanent incapacity for purposes of approving a disability retirement application, to determine if the member can perform all the usual and customary duties of a peace officer, as specified. This bill was held in the Senate Public Employment and Retirement Committee (SPE&R).
SUPPORT
Law Enforcement Managers’ Association (Sponsor)
OPPOSITION
Los Angele County Employees Retirement Association
Sacramento County Employees’ Retirement System
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 664
Author:(Cooper)
As Amended Ver:March 13, 2019
Majority vote
SUMMARY:
Requires, for purposes of determining incapacity of certain peace officers in the County of Sacramento, that they be evaluated by the county retirement system – a 1937 Act retirement system ('37 Act) – to determine ability to perform duties, as provided, among other provisions.
Major Provisions
- Requires, for purposes of determining permanent incapacity, Penal Code Section 830 peace officers to be evaluated by the existing procedure established by the retirement system to determine if the member can perform all of the usual and customary duties of a peace officer, as provided.
- Provides that these provisions apply to a member who files an application for disability retirement on or after the effective date of this bill, and that it does not apply to an appeal brought before that date.
- Establishes that this bill only applies to the County of Sacramento.
- Requires the county retirement board to develop a method of tracking the costs of providing permanent disability retirement to members who become eligible for disability retirement, in accordance with these provisions.
- Repeals these provisions on December 31, 2024.
COMMENTS:
Administration of Disability Retirement Among '37 Act Systems
Under existing law, '37 Act system boards determine whether an applicant for a disability retirement is permanently incapacitated for "the performance of duty" and apply other standards, as specified, in making a determination whether the applicant is eligible for a disability retirement.
Among the 20 '37 Act systems, some use a narrow (stricter) standard and interpret "performance of duty" as the duties required of the position in which the member is employed at the time of the member's application for disability. Other boards utilize a broader (more accommodating) definition that comprises the duties required of all general peace officers as required for certification by the Commission on Peace Officer Standards and Training and not the duties of a specific classification. Thus, a board using the former standard might not find that a high ranking, desk bound officer is eligible for a disability retirement for an injury that prevents the member from sustained, significant physical activity since that activity is not within the usual and customary duties of the member's job class. However, boards using the latter standard would award the member the disability retirement because the injury no longer permits the member to fulfill one of the duties of all peace officers (i.e., a physical stamina sufficient to give chase and effect arrests). It is unclear how many of the '37 Act systems use the narrow standard and how many use the broader standard.
Please see the policy committee analysis for a full discussion of this bill.
According to the Author:
"The hazards of being a peace officer never stop, regardless of the assignment or rank. A sworn peace officer has a statutory and administrative responsibility to respond to violent crime, civil unrest and even natural disasters when ordered to do so. This includes sworn law enforcement managers. Assembly Bill 664 simply provides for the time to study the balance between the health of one retirement system and the fairness of protecting employees who have been permanently incapacitated because they have given everything in protecting the public.
Arguments in Support:
According to the Law Enforcement Managers' Association, "[t]he '37 Act allows for permanent incapacity status for its members. This status is determined at the time of retirement only if the member applies for it and only if certain conditions are met. At this time, there is an inconsistency on findings of permanent disability applications concerning peace officers who are of certain ranks, mainly in management positions. This inconsistency occurs because some '37 Act system boards deny the permanent disability status because the day-to-day activities of higher ranking positions do not require frequency of physical activities such as affecting arrests, like their subordinates. Assembly Bill 664 will fix this issue by specifying that any member who is classified as a peace officer, regardless of rank or assignment, will be granted permanent disability status upon meeting the criteria for this designation."
Arguments in Opposition:
None on file.
FISCAL COMMENTS:
Unknown. This bill is keyed non-fiscal by the Legislative Counsel.
VOTES:
ASM PUBLIC EMPLOYMENT AND RETIREMENT: 7-0-0
YES: Rodriguez, Voepel, Levine, Cooley, Cooper, Fong, O'Donnell
UPDATED:
VERSION: March 13, 2019
CONSULTANT: Michael Bolden / P.E. & R. / (916) 319-3957 FN: 0000257
Date of Hearing: April 24, 2019
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYMENT AND RETIREMENT
Freddie Rodriguez, Chair
ABPCA Bill Id:AB 664 (
Author:Cooper) – As Amended Ver:March 13, 2019
SUBJECT: County employees’ retirement: permanent incapacity
SUMMARY: Requires, for purposes of determining incapacity of certain peace officers in the County of Sacramento, that they be evaluated by the county retirement system to determine ability to perform duties, as provided, among other provisions. Specifically, this bill:
- Requires, for purposes of determining permanent incapacity, Penal Code Section 830 peace officers to be evaluated by the existing procedure established by the retirement system to determine if the member can perform all of the usual and customary duties of a peace officer, as provided.
- Provides that these provisions apply to a member who files an application for disability retirement on or after the effective date of this bill, and that it does not apply to an appeal brought before that date.
- Establishes that this bill only applies to the County of Sacramento.
- Requires the county retirement board to develop a method of tracking the costs of providing permanent disability retirement to members who become eligible for disability retirement, in accordance with these provisions.
- Repeals these provisions on December 31, 2024.
EXISTING LAW:
- Establishes the County Employees Retirement Law of 1937 (’37 Act), which governs 20 independent county retirement associations, and provides for retirement systems for county and district employees in those counties adopting its provisions. Currently, 20 counties operate retirement systems under the '37 Act.
- Contains several optional provisions that counties operating retirement systems established under the ’37 Act can adopt that require safety members to retire once they reach a certain age (60, 65, etc.).
- Establishes comprehensive public employee pension reform through enactment of the Public Employee Pension Reform Act (PEPRA) that apply to all public employers and public pension plans on and after January 1, 2013, excluding the University of California and charter cities and counties that do not participate in a retirement system governed by state statute.
- Provides that a member permanently incapacitated for the performance of a duty must be retired for disability regardless of age, only if:
- The incapacity is a result of injury or disease arising from, and in the course of, the member’s employment, and that employment substantially contributes to the incapacity; or
- The member has completed five years of service; and
- The member has not waived retirement due to the incapacity, or aggravation thereof, as specified.
- Establishes that permanent incapacity for the performance of duty must, in all cases, be determined by the ’37 Act county retirement board.
If a medical examination and other available information do not show, to the satisfaction of the board, that the member is physically or mentally incapacitated for the performance of duty, and the application for disability retirement is denied by the board, the board must provide notice of the denial to the employer. However, an employer may seek judicial review or intervene in an action filed by the member, as provided. If certain actions are not adhered to relating to judicial review and the member has been dismissed by the employer for disability, the employer must reinstate the member to employment effective as of the day following the effective date of dismissal.
- Permits, as deemed necessary by a ’37 Act county retirement board, to require proof, including a medical examination at the expense of the member or on its own accord, to order a medical examination to determine the existence of a disability.
- Prohibits, in determining whether a member is eligible to retire for disability, a county retirement board from considering a medical opinion unless it is deemed competent, and from using disability retirement as a substitute for the employer’s disciplinary process.
- Establishes, for purposes of determining disability retirement, several rebuttable presumptions for a safety member where a health condition or disease arose out of, and in the course of employment. Cancer, heart trouble, blood-borne infectious diseases, and exposure to biochemical substances are among these presumptions.
- Requires peace officers, as specified, to be free from any physical, emotional or mental condition that might adversely affect the exercise of powers of a peace officer and meet standards developed by the Commission on Peace Officer Standards and Training (POST) to attain peace officer status.
- Defines a peace officer in Penal Code Section 830 as any person who comes within the provisions of Chapter 4.5 of the Penal Code who otherwise meets all standards imposed by law on a peace officer and includes in addition to police, sheriff, deputies, several other categories of positions including security officers of municipal utilities and water districts, park rangers of water districts, welfare fraud investigators, child support inspectors, and various other law enforcement-related positions.
- Provides that the restriction of peace officer functions of any public officer or employee shall not affect his or her status for purposes of retirement.
FISCAL EFFECT: Unknown. This bill is flagged as non-fiscal by Legislative Counsel.
COMMENTS: According to information from the author, “[t] CERL allows for a permanent incapacity status for its members. This status is determined at the time of retirement, only if the member applies for it and only if certain conditions are met.
‘In some cases this status is denied or granted, depending on how each ‘37 Act retirement board interprets the law. For example, the Sacramento County Employees Retirement System (SCERS) will deny permanent incapacity status and benefits to sworn law enforcement managers because enforcement is not part of their usual and customary duties as a manager. In contrast, the Alameda County Employees Retirement Association does grant this status to sworn law enforcement managers who meet the criteria of permanent incapacity.
‘The problem lies within the interpretation of existing law between 37’ Act retirement systems and how it is applied to peace officers, as defined by Section 830 of the Penal code, differently. Assembly Bill 664 will create a “pilot program” for the SCERS by changing the language of the law to apply to all peace officers, regardless of their classification. [This bill] will not change the authority of SCERS to ensure the employee meets the other requirements of permanent incapacity.
‘The law is needed for a few reasons. First, consistency. Although 37’ Act counties are independent, they are all subject to the CERL. This specific problem creates a situation where employees under the jurisdiction of the CERL are treated differently in regards to retirement benefits from one system to another.
‘Secondly, as a Section 830 Penal Code peace officer in California, one is sworn to uphold the laws and to react to criminal activity regardless of rank or day-to-day assignments. Every peace officer must maintain the physical and mental ability to exercise the power of a peace officer [pursuant to existing law]. This is regardless of rank or assignment. This is evident in times of natural disasters, civil unrest and situations in which an officer, on- or off-duty, must react and engage when they see a felony in progress. Just in individual department policies alone, failure to act can lead to adverse action such as ‘incompetency’ or ‘dereliction of duty.’”
The author states that, “[t]he hazards of being a peace officer never stop, regardless of the assignment or rank. A sworn peace officer has a statutory and administrative responsibility to respond to violent crime, civil unrest and even natural disasters when ordered to do so. This includes sworn law enforcement managers. AB 664 simply provides for the time to study the balance between the health of one retirement system and the fairness of protecting employees who have been permanently incapacitated because they have given everything in protecting the public.
- Similarities in the CERL Related to Administration of Retirement Benefits by CERL Retirement Boards, but the CERL Also Recognizes and Allows a Modicum of Difference Among Them
As stated under “Existing Law” supra, 20 counties currently operate separate retirement systems under the ’37 Act. The counties are: Los Angeles, Orange, San Diego, Alameda, San Bernardino, Sacramento, Contra Costa, San Mateo, Fresno, Ventura, Kern, San Joaquin, Santa Barbara, Marin, Sonoma, Stanislaus, Tulare, Merced, Imperial, and Mendocino.
The CERL establishes “classes” of each county operating a retirement system which mirror the population of each county as ascertained and determined pursuant to Section 28020 of the Government Code. For example, under the CERL, Los Angeles County is of the first class; Orange County is of the second class; San Diego County is of the third class; Alameda County is of the fourth class; and so forth. None of these counties are within the same class.
The Public Employees’ Retirement Law (PERL) and the Teachers’ Retirement Law (TRL) for statewide public employee retirement systems establish uniform standards that commonly apply to members, participating agencies and school districts governed by those laws, respectively. However, although the CERL generally provides uniform standards in the administration of retirement benefits by these systems, it also recognizes and allows for a modicum of difference in the administration of retirement benefits since each CERL jurisdiction is separate and unique.
Each ’37 Act system operates pursuant to the CERL and, on occasion, an issue might arise related to the administration of retirement benefits. However, the issue may only be applicable to an individual system due to its interpretation of a provision in the CERL, or interpretation of a CERL provision that is specific to that jurisdiction. For example, Chapter 97, Statutes of 2018 (Assembly Bill 2076, Rodriguez) provides authority to the Los Angeles County Employees Retirement Association (LACERA) – a CERL system – to reconsider its decisions regarding the effective date of a disability retirement during a specific period. That measure only applied to LACERA because the issue only occurred in that system.
The practical and operational mechanics of the CERL permit such variation.
- Administration of Disability Retirement Among CERL Systems
Under existing law, ‘37 Act county retirement boards determine whether an applicant for a disability retirement is permanently incapacitated for “the performance of duty” and apply other standards, as specified, in making a determination whether the applicant is eligible for a disability retirement.
Among ’37 Act retirement boards, some use a narrow (stricter) standard and interpret “performance of duty” as the duties required of the position in which the member is employed at the time of the member’s application for disability. Other boards utilize a broader (more accommodating) definition that comprises the duties required of all general peace officers as required for certification by the Commission on Peace Officer Standards and Training (POST) and not the duties of a specific classification. Thus, a board using the former standard might not find that a high ranking, desk bound officer is eligible for a disability retirement for an injury that prevents the member from sustained, significant physical activity since that activity is not within the usual and customary duties of the member’s job class. However, boards using the latter standard would award the member the disability retirement because the injury no longer permits the member to fulfill one of the duties of all peace officers (i.e., a physical stamina sufficient to give chase and effect arrests).
It is unclear how many of the 20 ‘37 Act Retirement boards use the narrow standard and how many use the broader standard.
- Disability Retirement Activity and Potential Economic Incentives
If a tree falls in the woods and no one is around to hear it, does it make a sound? This question is somewhat symbolic and metaphorical of questions raised relating to some injuries among peace officers which have resulted in an earlier-than-normal retirement due to a disability.
Generally known as “Chief’s Disease,” there have been instances where a peace officer, particularly those that are high ranking, has received a determination that the officer is unable to perform the duties of the job based on an injury that might not appear sufficiently serious to warrant the determination.
A determination relating to an inability to perform the duties permits the officer to retire for disability, instead of a normal service retirement, and receive a lifetime retirement allowance that is, in significant part, exempt from taxation. As such, there exists an economic incentive to obtain a disability retirement instead of a normal service retirement which provides more take-home dollars when compared to a normal service retirement allowance, especially when the officer is high ranking and on a higher salary schedule subject to a higher tax rate.
Attempts to obtain a disability retirement under these circumstances is not limited only to peace officers seeking an economic incentive. While existing law prohibits the use of a disability retirement as a disciplinary tool, employers may use the broader standard previously discussed, to strategically remove disfavored employees by providing a higher pension through a disability retirement.
- Relevant Court Rulings on Determination of Performance of Duty
Pursuant to Mansperger v. Public Employees' Retirement System (1970), 6 Cal.App. 3d 873, “incapacitated for the performance of duty” means the substantial inability of the applicant to perform his or her usual duties.
In Harmon v. Board of Retirement (1976), 62 Cal. App. 3d 689, the court held that a policy by a sheriff employer that all employees be capable of all POST certification requirements does not preclude a retirement board from finding that the employee is not permanently incapacitated for his or her usual duties and requiring the employee be returned to duty in a position that does not require the performance of one of the POST duties.
The issue of determining incapacity arose in litigation as it relates to causation. In Curtis v. Board of Retirement of Los Angeles County Employees Retirement Association, App. 2 Dist. (1986), the court held that when considering a county employees’ application for disability retirement, “the county board of retirement is faced with the question as to whether [the] employee is permanently incapacitated for performance of a duty and whether such permanent incapacity is a result of injury or disease arising out of, and in the course of, an employee’s employment. Causation is a secondary issue, and permanent incapacity is the major issue.”
- Potential Unfunded Liability for Disability Retirement
There have been concerns expressed regarding disability retirement, especially for defined benefit retirement systems or associations that have employers where a sharp increase in the number of such retirements occur in any given point in time, which could result in an unfunded liability. As of this writing, definitive data supporting this concern currently is unavailable. While there have been instances of abuse regarding disability retirement, the overall number of employees obtaining such retirement compared to those who retire for service (i.e., normal service retirement) is not as significant in comparison. In addition, tracking disability retirement and associated abuse of this benefit might pose a challenge for ’37 Act county retirement boards.
Because abuse has occurred and continued potential abuse exists, careful consideration should be exercised by defined benefit retirement systems or associations in granting such determinations. In addition, systems and associations should employ methods to track increases in disability retirements among their respective employers. Further, the systems or associations might consider, if not currently utilized, post-determination procedures or methods that require periodic follow-up examination to guard against abuse and potential abuse.
- Comments by Supporters
According to the Law Enforcement Managers’ Association, “[the CERL] allows for permanent incapacity status for its members. This status is determined at the time of retirement only if the member applies for it and only if certain conditions are met. At this time, there is an inconsistency on findings of permanent disability applications concerning peace officers who are of certain ranks, mainly in management positions. This inconsistency occurs because some [CERL] boards deny the permanent disability status because the day-to-day activities of higher ranking positions do not require frequency of physical activities such as affecting arrests, like their subordinates.
‘… other [CERL] boards grant permanent incapacity status because regardless of rank, these officers must meet certain standards throughout their careers and can be subjected to the physical demands of the job at any time. This problem has manifested itself in situations where peace officers in management ranks have been hurt performing law enforcement duties and were denied this status.
‘ Assembly Bill 6664 will fix this issue by specifying that any member who is classified as a peace officer, regardless of rank or assignment, will be granted permanent disability status upon meeting the criteria for this designation”
- Prior or Related Legislation
Assembly Bill 283 (Cooper, 2017), which would have required ‘37 Act County Boards of Retirement, when evaluating whether a member employed in a peace officer position has a permanent incapacity for purposes of approving a disability retirement application, to determine if the member can perform all the usual and customary duties of a peace officer, as specified. This bill was held in the Senate Public Employment and Retirement Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Law Enforcement Managers’ Association (Sponsor)
Opposition
None on file
Analysis Prepared by: Michael Bolden / P.E. & R. / (916) 319-3957
Bill Author
Bill Co-Author(s):