BILL ANALYSIS Ó SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS Senator Tony Mendoza, Chair 2015 - 2016 Regular Bill No: SB 623 Hearing Date: April 8, 2015 ----------------------------------------------------------------- |Author: |Lara | |-----------+-----------------------------------------------------| |Version: |February 27, 2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Gideon Baum | | | | ----------------------------------------------------------------- Subject: Workers' compensation: benefits KEY ISSUE Should the Legislature restate and reinforce existing law on the right of undocumented workers to be eligible for benefits from the Uninsured Employers Benefits Trust Fund (UEBTF) and the Subsequent Injuries Benefit Trust Fund (SIBTF)? ANALYSIS Existing law establishes a workers' compensation system that provides benefits to an employee who suffers from an injury or illness that arises out of and in the course of employment, irrespective of fault. This system requires all employers to secure payment of benefits by either securing the consent of the Department of Industrial Relations to self-insure or by securing insurance against liability from an insurance company duly authorized by the state. Existing law provides that all protections, rights, and remedies available under state law, except any reinstatement remedy prohibited by federal law, are available to all individuals regardless of immigration status who have applied for SB 623 (Lara) Page 2 of ? employment, or who are or who have been employed, in California. (Labor Code §1171.5) Existing law creates the Uninsured Employers Benefits Trust Fund (UEBTF), which provides benefits for injured workers who are employed by illegally uninsured employers. Benefits awarded from the UEBTF constitute a liquated damage against the illegally uninsured employer, which the director may pursue against the employer and/or significant shareholders. (Labor Code §§3716- 3717) Existing law creates the Subsequent Injuries Benefit Trust Fund (SIBTF), which provides additional compensation for injured workers who are receiving PD benefits and suffer a second injury that the degree of injury caused by the second injury is greater than what would have resulted from the first permanent injury alone. (Labor Code §4751) Existing federal law provides that a State may provide that an individual who is not lawfully present in the United States is eligible for any State or local public benefit for which such alien would otherwise be ineligible through the enactment of a State law which affirmatively provides for such eligibility. (8 U.S. Code § 1621(d)) This bill would restate and reiterate existing law, which currently allows undocumented injured workers to be eligible for benefits from the UEBTF and the SIBTF. This bill would also declare the intent of the Legislature to override regulations which prevent undocumented workers from accessing benefits from the UEBTF and the SIBTF. COMMENTS 1. Need for this bill? As was noted above, existing law has provided that, with some limited exceptions, injured workers may not be denied workers' compensation benefits on the basis of the injured worker's immigration status. These protections were created in 2002 by SB 1818 (Statues of 2002, Chapter 1071), which was supported by a broad coalition including Lieutenant Governor Cruz Bustamante, the California Labor Federation, and the SB 623 (Lara) Page 3 of ? California Applicants' Attorneys Association. Further, this legislation appears to meet the requirements of the federal statute discussed above for ensuring that an undocumented worker would be eligible for benefits from a state program. Despite this, California regulations still prohibit an undocumented worker from receiving benefits from both the UEBTF and the SIBTF, as the regulations have not been updated since 1998. As such, these regulations have been out of compliance with state law since 2003. It is unknown, however, if this has resulted in the loss of any benefits for undocumented injured workers. SB 623 would clarify existing law, and also state that it is the intent of the Legislature that these out-of-date regulations be overridden. 2. Staff Comments: As was noted above, SB 623 is a restatement of existing law. However, the new sections are currently not listed as declarative of existing law. This could create legal confusion for undocumented workers seeking their benefits, leading to unnecessary delays due to litigation. Therefore, the Committee may wish to consider the following amendments: On page 2, between lines 14 and 15, insert the following: (d) The provisions of this section are declaratory of existing law. On page 2, after line 28, insert the following: (d) The provisions of this section are declaratory of existing law. 3. Proponent Arguments : The California Applicants' Attorneys Association (CAAA) and the California Chamber of Commerce strongly support SB 623, arguing that SB 623 would clarify current law so that no injured worker is refused benefits from the Uninsured Employers Benefit Trust Fund (UEBTF) and the Subsequent Injuries Benefit Trust Fund (SIBTF) based on their immigration status. CAAA argues that it is time for the out-of-date Division of Workers' Compensation regulations which allowed undocumented workers from being excluded from these benefits. SB 623 (Lara) Page 4 of ? 4. Opponent Arguments : None on file. 5. Prior Legislation : SB 1818 (Romero), Statues of 2002, Chapter 1071, was discussed above. SUPPORT California Teamsters Public Affairs Council (Co-Sponsor) Association of California Insurance Companies California Association of Joint Powers Authorities California Chamber of Commerce California Coalition on Workers' Compensation California Conference of Machinists California Conference of the Amalgamated Transit Union California Labor Federation, AFL-CIO California Manufacturers and Technology Association California Nurses Association California Restaurant Association California Rural Legal Assistance Foundation Californian Applicants' Attorney Association Engineers & Scientists of California, AFTPE Local 20, AFL-CIO International Longshore and Warehouse Union Professional & Technical Engineers, IFTPE Local 21, AFL-CIO Utility Workers Union of America OPPOSITION None on File. -- END --