Big Flap Over Employer Workers’ Comp Assessment Error

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Feb. 6, 2004 Share this on FacebookTweet thisEmail this to a friend

A new workers’ compensation problem has surfaced that needs immediate attention by the state. A provision in last year's AB 227 (Vargas) that changed funding of the Division of Workers’ Compensation (DWC) to 100 percent employer-funded was inadvertently chaptered out by a subsequent budget bill. As a result, there is no authority for the state to assess employers to raise funds and no money was budgeted from the general fund. The DWC is expected to run out of money in five weeks unless there is some legislative action.

Attempts to get this done quickly have failed so far. Senator Chuck Poochigian (R-Fresno) said that “any effort to restore fee authority should take place as part of discussions on further, broad reforms to save costs in the system.”

Employer-funding of the DWC will cost about $104 million annually. CMTA opposed the funding shift from the general fund to employers.
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