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Assembly committee advances Ortega bill to reform subsequent-injury benefit fund amid fierce opposition
Summary
AB 15 76, sponsored by Assemblymember Ortega, would reform the Subsequent Injury Benefit Trust Fund to reduce litigation and lower employer assessments; supporters said it will save employers while opponents including chambers and school districts warned of unresolved structural liabilities and urged a trailer-bill approach.
Assemblymember Lori Ortega presented AB 15 76 to reform the Subsequent Injury Benefit Trust Fund (SIBTF), describing the fund’s origin and saying targeted changes would reduce litigation and employer assessments by 20–25 percent over time while preserving benefits for disabled workers.
Supporters including legal representatives for applicants and injured-worker coalitions said the bill builds on prior negotiations and would address administrative challenges without retroactively eliminating benefits. Former Assemblymember Alberto Turica (representing applicant attorneys) and labor advocates testified they had worked with the author for two years and described the bill as a first step.
Opponents — including the California Chamber of Commerce, Schools Insurance Authority, consumer attorneys and county and hospital groups — said AB 15 76 does not address core structural cost drivers identified by RAND and the Legislative Analyst’s Office and warned of multibillion-dollar liability estimates for the fund. Several opposition witnesses urged use of the administration’s trailer-bill language or more comprehensive reforms rather than the bill as drafted.
After testimony and questions, the committee voted to pass AB 15 76 as amended to the Committee on Appropriations. The committee record shows the motion to pass was taken and the item left on call pending final tally.
