Bill > AB1576

This bill modifies the workers' compensation system, specifically concerning payments for subsequent injuries, by updating how permanent disability is measured for injuries occurring on or after January 1, 2005, and clarifying eligibility requirements for special additional compensation for injuries on or after January 1, 2027. For injuries between January 1, 2005, and January 1, 2013, permanent disability will be measured by the whole person impairment rating from the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment (5th Edition), adjusted for diminished future earning capacity but not for occupation or age. For injuries on or after January 1, 2013, the same AMA Guides measurement will be used, but instead of diminished earning capacity, a 1.4 adjustment factor will be applied, and this is stated to be declarative of existing law. Starting January 1, 2027, to receive special additional compensation for a subsequent injury, there must be substantial evidence that a prior permanent partial disability existed before the new injury, impacting earnings or work activities, and certain conditions like acid reflux or arthritis will not be considered pre-existing disabling conditions for this purpose. The bill also establishes a five-year statute of limitations for filing claims for special additional compensation for injuries occurring on or after January 1, 2027, or one year from when the permanent disability level is determined, whichever is later. Furthermore, the bill shifts the responsibility for paying these additional compensation awards from the State Compensation Insurance Fund (SCIF) to the Director of Industrial Relations, acting as trustee of the Subsequent Injuries Benefits Trust Fund, and requires the administrative director to create a database of qualified medical evaluators for these claims.

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https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1576