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SB 815, the
permanent disability increase bill authored by
Sen. Don Perata (D-Oakland), has gone down
thanks to a veto by Governor Arnold
Schwarzenegger. As a result, California
workers' comp rates will be 8.1% less in
January and the stage is now set for more
workers' comp wars in the next session
legislative session.
The
controversial legislation would have doubled
permanent disability benefits over a three
year period.
Workers' comp
reform is one of the governor's signature
issues, and the estimated 58% decline in rates
indicates reform is working.
SB 815 would
have a cumulative cost impact of 16.3 percent
when fully implemented in 2009. according to
WCIRB.
The Governor
by vetoing Perata's bill stuck to the original
deal of no changes to the system without time
for a comprehensive analysis of the effects of
the reform.
In his veto
message the governor says that he is committed
to monitoring the new Permanent Disability
Rating Schedule for 18 months. If the new PDRS
is failing injured workers, he says, an
appropriate adjustment will be made. The
analysis will be completed by the end of the
year.
Perata's bill
however, appeared dead upon passage and to
seasoned politicos appears to have been
nothing more that a move to appease his
applicants' attorneys constituency, raise
money, and set up the fight for the coming
session.
The
California Applicants' Attorneys Association
had its members calling the governor's office
to urge a signature. Some industry
sources even characterized SB 815 as nothing
more than income replacement for the
applicants' attorneys.
"As we
look to build upon the economic successes of
the last three years, I simply cannot support
a measure that reverses many of the economic
gains now powering California's economy,"
the Governor concluded.
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