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_�-A - 4 <br />GOVERNOR -ELECT TRANSITION TEAM MEETS WITH LEAGUE TO DISCUSS WORKERS' <br />COMPENSATION REFORM <br />Governor -Elect Swarzenegger's transition team <br />met with the League of CA Cities to discuss addi- <br />tional workers' compensation reform beyond <br />AB227/SB 228, which will take effect on January 1, <br />2004. The Governor's staff stressed their commit- <br />ment to making sure that the workers' compensa- <br />tion system does not break the bank with public <br />and private employers while maintaining benefits to <br />injured workers. <br />to the violation at issue. <br />- Eliminate escalators that impose penalties on <br />future benefit payments based on past violations. <br />- Establish a one -year statute of limitations from <br />date of delay or denial for claiming penalties. <br />BURDEN OF PROOF /STANDARDS OF COMPENS- <br />ABILITY <br />The League provided a list of additional re- <br />forms that were not included in AB 227/SB 228. The <br />transition team is committed to reviewing the <br />suggested amendments and a follow -up meeting <br />will occur once a package begins to develop. Our <br />suggestions are as follows: <br />PERMANENT DISABILITY REFORM <br />- Eliminate the subjectivity and inconsistency in <br />the current system for rating permanent disability <br />by adopting objective rating standards. <br />- Require physician training so that employers <br />and reviewers receive consistently "ratable" re- <br />ports. <br />- Provide statutory language that eliminates an <br />employer's liability for permanent disability that is <br />related to pre- existing conditions or to non work - <br />related conditions. <br />- Bar an individual employee from accumulating <br />more than a 100% rating. <br />- Bar, in most circumstances, an employee from <br />obtaining a disability rating when they never miss <br />any work, or experience insignificant loss of time, <br />and return to the same position without restrictions. <br />MEDICAL <br />• Establish a physician certification and training <br />program for all physicians who treat or evaluate <br />work comp patients. <br />- Increase the period of time the employer is in <br />control of treatment. <br />- Expand utilization review and managed care <br />programs. <br />LABOR CODE SECTION 5814 PENALTIES <br />- Eliminate penalties that bear no relationship <br />- Require that the burden of proof and the <br />criteria used to determine compensability for <br />cumulative trauma injuries be the same standards <br />and criteria used currently for psychiatric injuries. <br />ALIGNMENT OF PUBLIC AND PRIVATE <br />SECTORS <br />- Add public sector employers into the existing <br />return -to -work incentive program. <br />- Prohibit new or expanded presumptions in the <br />public sector. <br />- Prohibit expansion or increase in eligibility for <br />tax -free, full salary benefits under Labor Code <br />Section 4850. <br />AB 749 CORRECTIONS <br />- Correct the minimum temporary disability rate <br />problem that results in some persons receiving <br />more money while temporarily disabled than when <br />working. <br />- Repeal Labor Code Section 4702 (a) (6) that <br />requires the death benefit to be paid to the de- <br />ceased employee's estate if there are no <br />dependants. <br />- Elimination of the uncapped COLA on life <br />benefits in favor of a COLA with a reasonable <br />annual cap, such as used by pension systems. <br />For additional information, please contact Amy <br />Brown, League staff at 916- 658 -8279. <br />Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS /PAGE 1 <br />