Legislature Returns -- Acts Immediately to Kill Positive Reform 
When the California State Legislature returned to Sacramento this week to start the 2010 legislative session, they wasted little time in killing a positive workers' compensation reform bill that could have saved hundreds of thousands of dollars for cities and counties across the state.
AB 516 (Niello, R-Sacramento) would have eliminated the minimum temporary disability rate for inmates of city and county jails. California's minimum temporary disability rate, which was imposed to ensure that low wage, part-time workers and volunteers would have an adequate TD benefit, also applies to inmates of city and county jails. The result is that inmates who are injured while working in jail to meet their sentencing requirements can make more in temporary disability benefits than they would have earned before incarceration.
AB 516 (Niello), which was sponsored by CCWC member CSAC Excess Insurance Authority, would have repealed the minimum rate and instead applied the normal two-thirds calculation to an inmate's average weekly wage. CCWC strongly supported the legislation because it would have saved cities and counties vital resources as they continue to struggle with record budget deficits.
Cities and counties that operate jails are facing brutal budget deficits because of a struggling economy and budget cuts on the state level. AB 516 would have allowed these local governments to save money and apply it to more important public safety uses. Instead, the Legislature supported the ongoing delivery of special workers' compensation benefits to inmates.
AB 516 was heard in the Assembly Insurance Committee on Wednesday, January 6th. A long line of stakeholders came out to support the legislation, but opposition from powerful union interests and the California Applicant Attorneys Association succeeded in stopping the legislation. Insurance Committee Chairman Jose Solorio (D-Santa Ana) supported the legislation, along with all of the Republican members of the committee. However, the bill failed to attract the support of any other democratic committee members and failed passage as a result.
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California Budget Struggles Continue and Employer Assessment Increases
Governor Arnold Schwarzenegger will release his 2010-2011 State Budget Proposal today, as the state continues to struggle with ongoing budget deficits. Over the next several months, California's elected officials will be busy crafting a budget that addresses a deficit approaching $20 billion. The release of the Governor's 2010-2011 State Budget Proposal will frame the debate by outlining the deficit and proposing solutions.
As California's budget woes worsen, Governor Schwarzenegger and the Legislature continue to get more creative in their solutions. Some of that creativity impacts California employers directly through increased fees and assessments. The purpose of these new fees and assessments is to take pressure off of California's struggling general fund. Because there are not sufficient votes to increase taxes and bolster the general fund, legislators and the Governor have expanded fees and assessments that only require a simple majority vote.
In 2009 California significantly expanded assessments on California employers to pay for a number of functions related to workplace safety and workers' compensation. The assessments, which are paid by both insured and self-insured employers, were expanded to provide a stable revenue source for the Division of Labor Standards Enforcement. As a result, the assessment now provides revenue to the following funds:
- Workers' Compensation Administrative Revolving Fund
- Uninsured Employers Benefit Trust Fund
- Subsequent Injuries Benefit Trust Fund
- Workers' Compensation Fraud Account
- Occupational Safety and Health Fund
- Labor Enforcement and Compliance Fund
The eventual "solution" to the 2010-2011 budget deficit could include a new expansion of the assessment on employers. California employers will learn more today when the Governor releases his proposal.
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CCWC 8th Annual WC Policy Conference to be held in Newport Beach
Plan to join us July 21-23, 2010 at the beautiful Hyatt Regency Newport Beach for the CCWC 8th Annual Workers' Compensation Policy Conference. The hotel is conveniently located near John Wayne/Orange County Airport and is very accessible to Southern California attendees driving to the conference.
Please look for more details on the conference in upcoming issues of the Weekly Update. Information will also be posted shortly on www.ccwcworkcomp.org. If you have questions in the meantime, feel free to contact Association Services Director Amy Lai at 916.441.4111 or amy@ccwcworkcomp.org. |
Thank You for Supporting CCWC's Advocacy Efforts!
The California Coalition on Workers' Compensation recently mailed each of you a 2010 Dues Renewal invoice. We want to thank those of you who have already submitted your payment. If you have not yet returned your dues payment, we urge you to do so immediately and renew your pledge to preserve the 2003 and 2004 reforms.
CCWC is an organization dedicated to aggressively defending the workers' compensation reforms that have led to job creation in the private sector and saved tax dollars at the local level. Without the support of our membership, there would be no advocate in Sacramento representing the broad spectrum of California's public and private, small and large employers.
Your membership dollars are the only way that CCWC can continue to have a voice inside the Legislature and with regulators across the state to ensure that our state's workers' compensation system does not return to the way it was. If you have questions about your dues invoice or did not receive it, please call us immediately at 916.441.4111. |
