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HomeMy WebLinkAbout9-13-2022 SB 1127 - Vetoop, l Office of the City Council 990 Palm Street, San Luis Obispo, CA 93401-3249 805 781 7114 September 13, 2022 Governor Gavin Newsom 1021 O Street, Suite 9000 Sacramento, CA 95814 RE: Senate Bill 1127 — Veto Request Dear Governor Newsom, On behalf of the City of San Luis Obispo, I write in opposition to Senate Bill (SB) 1127 (Atkins), as amended on August 15, 2022, because it fundamentally alters longstanding rules and timeframes for determining eligibility for workers' compensation claims and would dramatically increase systemic friction and litigation. SB 1127 creates a new, reduced timeline for employers or third -party administrators (TPAs) to decide whether to cover a claimed injury. However, it does not synchronize other statutes and regulations that prevent employers or TPAs from complying with the new timeline. The bill changes the rules for all presumptive claims, but the provisions applied to public employers are particularly challenging. SB 1127 has three main provisions, each of which is problematic: Reduces the timeframe allotted to employers or TPAs to investigate rebuttable presumption claims: SB 1127 proposes to shorten the time provided for employers or TPAs to examine claims from 90 to 75 days. The bill does not, however, make a single change to the statutory and regulatory provisions that cause investigations to take more than 90 days. Imposes new penalties on employers: SB 1127 proposes new and unprecedented penalties on all claims covered by presumption statutes. The penalty would apply when "liability has been unreasonably rejected for claims of injury" and would cost up to $50,000. These claims are predominantly for public safety employees whose salaries are taxpayer -funded. As proposed, these claims would have a higher standard of evidence because of the presumption, an objectively inadequate timeline to investigate claims, and substantial penalties for getting the process wrong. More than doubles the duration of temporary disability for cancer presumption claims: SB 1127 would extend the term of temporary disability benefits from 104 to 240 weeks for claims covered by cancer presumption statutes. Currently, covered employees have full and tax-free wage replacement Letter - SB 1127 — Veto Request September 13, 2022 Page 2 benefits for one year and access to disability retirement benefits that can, in some cases, be received concurrently with temporary disability benefits. We humbly request that you veto this bill as it will undoubtedly increase lawsuits and workers' compensation costs for the City of San Luis Obispo. Sincerely, Erica A. Stewart Mayor City of San Luis Obispo c: Senator John Laird, Fax: (916) 651-4017 Assembly Member Jordan Cunningham, Fax (916) 319-2135 Dave Mullinax, League of California Cities, dmullinax@cacities.org League of California Cities (via email: cityletters@calcities.org)