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PRESS RELEASE

For Immediate Release
August 23, 2001

Contact: Gino DiCaro
916-498-3347

Manufacturers Implore Legislature for
Balanced Workers’ Comp Bill

Sacramento, CA - The California Manufacturers & Technology Association (CMTA) criticized the authors of the proposed workers’ comp bill today saying the proposed legislation does not reflect negotiations that took place to fashion a balanced approach.

“After numerous attempts to get a copy of the bill, we finally got the language yesterday and now we understand why they held on to it for so long,” said CMTA President Jack M. Stewart. “I think they were embarrassed.

Senate Bill 71 would increase by nearly $3 billion all categories of workers' compensation benefits including temporary, permanent and partial disability benefits, death benefits and life pensions.

“The California workers comp program is in serious need of reform, but to raise costs and funnel even more money to providers and flawed administrative efforts rather then injured workers is not in the best interest of our hard-working families. This bill will do nothing to improve the system’s already catastrophic state,” added Stewart

Below are the proposals from a CMTA-endorsed coalition to offset some of the cost increases and make the system more efficient for injured workers.

  • Permanent Disability -- establishment of a permanent disability system that utilizes fair, consistent, verifiable and replicable standards for the evaluation of injured workers
  • Quality, affordable medical treatment -- Unnecessary treatment that delays an employee's return to work must be subject to prompt review and stopped if the treatment isn't helping workers recover from their injuries
  • Prompt and fair payment of benefits -- objective guidelines to promote uniform decisions on the degree of permanent disability. Allow electronic deposits of benefit payments or other means to accelerate the delivery of benefits.
  • Return to work -- improve programs that offer quality medical treatment and focus on returning injured workers back to their pre-injury jobs
  • Improve system efficiency -- Workers' comp judges should be held accountable for following legal timelines, procedures and professional conduct. Workers deserve clear information about how to navigate the system
As amended, SB 71 does not reflect any of these proposed policies and it carries a potential price tag of more than $3 billion if system costs continue to rise at the same rate over a five-year period.

CMTA is asking the committee to make SB71 a two-year bill to provide enough time for the state contracted RAND Corporation’s report on benefit payout to be completed.

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