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9AI WORKERS COMP from 6 ......................................... Page _ lated under current law. Position: Pending. This would reduce savings for early years until new lower fees become completely effective. Penalties: Limits Labor Code 5814 penal- ties to lesser of 15% or $10,000. No penalty on future medical payments. No penalty when treat- ment is provided and the only issue is payment of the bill. Position: Support. We suggest that the language clearly state that the 15% is against the amount paid late not prior benefits that were paid on time or future benefits. CHSWC Study: Requires CHSWC to perform wide ranging study of interaction between workers' compensation and various social insur- ance programs. Position: Pending. We suggest that it include a study of the feasibility to coordinate permanent disability benefits between workers' compensation and public retirement programs. Provide statutory language that eliminates an employer's liability for permanent disability that is related to pre- existing conditions or to non wo, related conditions. BURDEN OF PROOF /STANDARDS OF COMPENS- ABILITY Require that the burden of proof and the criteria used to determine compensability for cumulative trauma injuries be the same standards and criteria used currently for psychiatric injuries. ALIGNMENT OF PUBLIC AND PRIVATE SECTORS Add public sector employers into the existing return -to -work incentive program. WHAT IS MISSING FROM THE PROPOSAL Below is a list of issues that were supported by the League, but were not accepted into a reform package. MEDICAL Physician certification program and training for all physicians who treat or evaluate work comp patients. LC 5814 PENALTIES Establish a one year statute of limitations from date of delay or denial for claiming penalties. If other meaningful corrections along the lines in the Committee list are made, this statute of limitations becomes less important. It would, however, cut down the potential for litigation of old penalty issues. PERMANENT DISABILITY REFORM Eliminate the subjectivity and inconsistency in the current system for rating permanent disability by adopting objective rating standards. Prohibit new or expanded presumptions in the public sector. • Prohibit expansion or increase in eligibility for tax -free, full salary benefits under LC 4850. AB 749 CORRECTIONS Correct the minimum temporary disability rate problem that results in some persons receiving more money while temporarily disabled than when working. Repeal Labor Code Section 4702 (a) (6) that was added by AB 749 and requires the death benefit to be paid to the deceased employee's estate if there are no dependants. This in direct conflict with LC Section 4702 that has existed for many years and requires the death benefit to be paid to the State when there are no dependants. • Suspension of the future increases man- dated by AB 749 until there is time for reform to bring stability to the work comp system would still be a dramatic and powerfully positive message to the business community. I recognize, however, that there haven't been a lot of people jumping on my bandwagon for this suspension and I don't want to dilute our credibility in the process by pushing this one too hard. Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 7