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DIR and LAO push SIBTF trailer bill to curb liabilities; advocates warn retroactive harm to injured workers
Summary
Labor Agency and the Department of Industrial Relations presented trailer bill language to reform the Subsequent Injury Benefits Trust Fund, saying reforms are needed to curb a projected $30 billion liability by 2029–30; advocates and some legislators warned that applying changes to open cases could strip benefits and urged that reforms go through the regular legislative process.
The Department of Industrial Relations and the Labor Agency presented comprehensive trailer‑bill language on April 21 to reform the Subsequent Injury Benefits Trust Fund (SIBTF), a program DIR and LAO described as carrying rapidly growing liabilities and mounting operational backlogs.
Jazzy Grewal of the Labor Agency told the subcommittee the program has seen a steep rise in annual applications — from about 800 per year a decade ago to over 5,000 last fiscal year — producing a backlog that DIR estimates could exceed 30,000 open claims by July. Labor Agency materials projected SIBTF liabilities across employers could reach about $30 billion by FY 2029–30 without statutory changes.
The administration’s trailer‑bill package would tighten eligibility standards intended to refocus the program on its…
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