BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 419
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 419 (Lieber)
          As Amended April 17, 2008
          Majority vote
           
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          |ASSEMBLY:  |46-30     |(June 4,   |SENATE: |21-15|(August 13,    |
          |           |          |2007)      |        |     |2008)          |
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           Original Committee Reference:    INS.

          SUMMARY  :  Expands the scope of the law that provides that  
          specified safety officers (police and firefighters) are entitled  
          to full pay, tax free, for up to one year after an on-the-job  
          injury ("4850 time") in lieu of temporary disability benefits.

           The Senate amendments  :

          1)Exempt employees of the City and County of San Francisco from  
            the bill.

          2)Limit application of "4850 time" to full-time employees of  
            covered agencies.

          3)Specify that local park rangers, community college police  
            officers, and school district police officers are also covered  
            by 4850 time.

           EXISTING LAW  provides that specified safety officers who are  
          members of the California Public Employees Retirement System,  
          the Los Angeles City Employees Retirement System, or who are  
          subject to the County Employees Retirement Law of 1937 are  
          entitled to receive, in lieu of temporary disability benefits,  
          full pay, tax-free, for up to one year following an on-the-job  
          injury.

           AS PASSED BY THE ASSEMBLY  , this bill deleted the limitation of  
          4850 time benefits to employees of the three specified  
          retirement systems.

           FISCAL EFFECT  :  Notwithstanding the deletion of the fiscal tag  
          and the state-mandated local program tag by Legislative Counsel,  
          the Commission on State Mandates has in the past concluded that  
          "special" workers' compensation benefits such as 4850 time that  
          are not available to all workers generally in fact constitute a  







                                                                  AB 419
                                                                  Page  2

          reimbursable mandate.  It is probable that the same conclusion  
          would be reached with respect to the bill's expansion of the  
          number of safety officers entitled to this special benefit.

           COMMENTS  :  "4850 time" (Labor Code Section 4850) is one of the  
          enhanced workers' compensation benefits that safety officers  
          receive that other injured workers are not entitled to receive.   
          Temporary disability benefits in general do not replace an  
          injured worker's full wages.  Local government's have expressed  
          concerns that with full pay, tax free, safety officers are  
          earning more than their regular pay when they are off work due  
          to an on-the-job injury, and therefore have no incentive to  
          return to work as soon as possible.

          Local governments have objected to the expansion of 4850 time as  
          provided by the bill because many of the local agencies have  
          negotiated comparable benefits, or other alternatives, to make  
          up for the fact that Labor Code Section 4850 does not apply to  
          their employees.

           Analysis prepared by  :    Mark Rakich / INS. / (916) 319-2086   
          FN: 0006809