Attorney General No.


Secretary of State No.



INJURED WORKERS' BENEFITS. INITIATIVE CONSTITUTIONAL AMENDMENT. Establishes rights for injured workers under workers' compensation system: prohibits termination of benefits except by return to employment, agreement of parties, or order; biweekly benefit payment; guaranteed payment of reasonable medical care within 30 days; absolute right to treating physician of choice; hearing within 30 days of request; decision within 30 days of submission; continuation of medical insurance benefits; disability benefits of two-thirds preinjury gross wages; continuation of benefits pending appeal; bad faith suit; attorneys fees. 1% surcharge on premiums for funding. Reduction of compensation premiums by 20%. State Compensation Insurance Fund determines rates. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would result in unknown state costs for state workers' compensation benefits, potentially $200 million annually, triple or quadruple that amount in local government costs. A short run net decrease of several hundred million dollars in State General Fund revenues may occur due to decreases in state and corporate income tax revenues and increases in insurance premium tax revenues. A longer term net loss of state General Fund revenues may occur depending upon shifting of costs to workers and consumers and impact of higher costs on economic activity in the state. The measure would also have unknown savings in public assistance benefits for state and federal funds, and to a lesser extent, local funds. Potential state General Fund savings of approximately $60 million annually, may result from transfer of administrative costs from the General Fund to a new surcharge on insurance premiums. State special fund revenues from new surcharge of about $200 million annually would be used to fund costs of administering workers' compensation system.


John L. Debbs, 7589 Eddy Lee Way, Sacramento, Ca 95822 (916) 424-9139



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