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AB 2378 Assembly Bill-Bill Analysis Page 3 of 5 that would be payable under this chapter, for the period of the disability, but not exceeding one year? Labor Code Section 4656(c) (1) reads: (c) (1) Aggregate disability payments for a single injury occurring on or after April 19, 2004, causing temporary disability shall not extend for more than 104 compensable weeks within a period of two years from the date of Hearing Date: June 25, 2014 AB 2378 Consultant: Gideon L. Baum Page 3 Senate Committee on Labor and Industrial Relations commencement of temporary disability payment. Taken together, the court found that the "in lieu" provision of Labor Code Section 4850 meant that "4850 leave" was a paid single year of full salary instead of a year of 2/3rds salary, with the total or aggregated temporary disability benefits capped at two years under Labor Code Section 4656. In both cases, the key phrases have been present in law for a significant period of time. While the caps and nature of temporary disability benefits has changed over the years, the "aggregate disability payments" language dates back to at least 1947, and the "in lieu of temporary disability payments" language in Labor Code Section 4850 dates back to at least 1949. The Knittel interpretation, however, is relatively recent. At the conclusion of the Knittel decision, the court stated: "It appears the Legislature tried to reach a compromise with subdivision (c) (2) of section 4656 - a year of enhanced benefits for public safety officers under section 4850 followed by a year of temporary disability indemnity. To the extent the law is not working or the compromise is unfair, the parties should bring their concerns to the attention of the Legislature." AB 2378 responds to this call by nullifying the Knittel decision, granting up to three years of tax-free workers' compensation benefits to eligible peace officers and firefighters. 2. Proponent Arguments . Proponents argue that, historically, peace officers and firefighters have been eligible for both one year of disability leave and two years of temporary disability. With the Knittel decision, however, proponents argue that the Legislature's original intent has been lost. Proponents argue that AB 2378 will return temporary disability provisions for California's peace officers and firefighters to its original intent. 3. Opponent Arguments . Hearing Date: June 25, 2014 AB 2378 Consultant: Gideon L. Baum Page 4 Senate Committee on Labor and Industrial Relations http://www.legin fo.ca.gov/pub/13-14/bi I I/asm/ab_235I-2400/ab_2378_cfa_20140624_092208_sen_comm.htm 1 7/3/2014