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April 19, 2024
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Out of the Assembly Insurance Committee and onto the Appropriations Committee went SB 71 with a (9-6) vote Aug 27. This is the last stop for the bill before it hits the Assembly floor at which time if it passes there, must stand the test of Gov. Gray Davis’ pen. Davis’ track record of two vetoes for prior bills that would have increased workers’ compensation benefits makes this a tough one to call from the sidelines.

Those opposed to the new legislation like the California Chamber of Commerce have not been at a loss for words when it comes to criticizing this bill. Chamber President and CEO Allan Zaremberg said, "We wholeheartedly agree that California’s severely injured workers deserve an increase in their workers’ compensation benefits…But trying to solve the workers’ comp issue by pouring $3.6 billion into a broken system is irresponsible."

He also said, "Last year, Governor Davis vetoed a bill (SB 996) that would have increased benefits by $2.6 billion because of the ‘adverse impact’ it would have on the California economy. If that bill was bad for California, SB 71 is much worse—especially in this year’s fragile economy."

The Chamber of Commerce further argues that workers’ compensation costs for school districts under SB 71 will be higher than what they pay for textbooks.

According to the bill’s author Sen. Pro Tem John Burton of San Francisco, SB 71 will provide significant savings to businesses through changes in auditing claims, the use of generic drugs, expanded alternative dispute resolution programs and improved job safety. The San Francisco Chronicle reported that following the vote in the Assembly Aug. 27, in a press conference Burton said, "Knowing that their (business community) greed knows no bounds, it’s probably not enough."

The Contra Costa Times reported that Burton said, "It makes more sense for the business community, which has reaped billions of dollars in savings from previous workers’ compensation legislation, to support this reasonable bill rather than face a more expensive measure workers put on the ballot and voters put into law."

Advocates of SB 71 think they have two things favoring them this time around for this increase in benefits bill to be singed into law by Davis. The power of the president pro tem of the Senate carrying the bill, supporters feel will bolster their cause. Also supporters hope that Davis will be influenced by the scandalously small size of benefits paid to severely injured workers in California.

At a press conference Aug. 27, Steve Duncan a 50 year old Tosco employee who suffered burns over 40% of his body in a refinery fire told a painful story of the struggles he’s faced dealing with the workers’ compensation system. Along with suffering from his injuries, Duncan has had to fight for medical coverage and dip into his savings to just get by.

Whatever way this goes it looks like it could be a frantic rush for the Assembly and the Senate to make the Sept. 14 deadline to get SB 71 passed for 2001.