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)