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
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          |Author:    |Lara                                                 |
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          |Version:   |February 27, 2015                                    |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Gideon Baum                                          |
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                     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  








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          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  







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            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.








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          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.

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