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AB 1576

Workers' compensation: Subsequent injuries payments.

2025-2026 Regular Session Introduced by Liz Ortega

AB 1576 reforms SAC for subsequent injuries by redefining eligibility, creating evaluator standards, shifting SIBTF administration to the Director of Industrial Relations, and impo

From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (June 17). Re-referred to Com. on APPR.
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Bill Summary · AB 1576

Summary of AB 1576 (2025-2026) – California Workers’ Compensation: Subsequent Injuries Payments

Purpose and intent

AB 1576, introduced by Assembly Member Ortega, proposes reforms to California’s workers’ compensation system specifically relating to subsequent injuries and the payment of special additional compensation (SAC) from the Subsequent Injuries Benefits Trust Fund (SIBTF). The bill aims to recalibrate how permanent disability is measured for subsequent injuries, adjust eligibility criteria for SAC, create a database of qualified medical evaluators, and realign payment administration from the State Compensation Insurance Fund (SCIF) to the Director of Industrial Relations as trustee of the SIBTF. It also makes related conforming changes and appropriations.

Key provisions and changes

  • Measurement of permanent disability for subsequent injuries (post-2005 and post-2013 rules):

    • For injuries occurring on or after Jan 1, 2005, and prior to Jan 1, 2013, permanent disability for determining eligibility for SAC is measured using the AMA Guides, 5th Edition (whole person impairment), adjusted for diminished future earning capacity, without regard to occupation or age.
    • For injuries on or after Jan 1, 2013, the measurement is the same as the 2005–2013 method, but multiplied by an adjustment factor of 1.4, instead of adjusting for diminished Earning capacity.
    • These provisions are declarative (confirming existing law).

  • New special additional compensation (SAC) framework (effective for injuries on/after Jan 1, 2027):

    • Eligibility for SAC will require showing that a prior permanent partial disability (PPD) existed at the time of the subsequent injury, with evidence that it predated the subsequent injury and caused loss of earnings or impaired work ability.
    • A list of conditions will not be considered preexisting disabilities (e.g., acid reflux, allergies, diabetes, etc.) for purposes of SAC eligibility.
    • The Administrative Director must develop a database of qualified medical evaluators to support SAC evaluations.

  • Administration and funding changes:

    • The Director of Industrial Relations becomes the trustee of the SIBTF and will pay SAC awarded by the WCAB (instead of SCIF reimbursing itself for costs).
    • SCIF’s authority to reimburse itself for certain costs is removed; the revolving fund mechanics, expenditures, and related servicing (claims adjustment and legal representation) are restructured, with costs reimbursed from the appropriate state funds.

  • SAC timeframe and reporting:

    • For SAC claims arising on/after Jan 1, 2027, applicants must file within five years from the date of the subsequent injury or within one year from the date the disability level is determined by the WCAB, whichever is later.

  • Other administrative provisions:

    • Creation of a revolving fund (up to $50,000) to finance SAC-related operations.
    • The Director may contract for services (adjusting and legal) and may work with SCIF where appropriate, with administrative costs offset by the Workers’ Compensation Administration Revolving Fund.
    • The bill includes several conforming amendments to sections 4751, 4753.5, 4754, and adds new sections 4754.1 and 4754.2.

Who is affected

  • Employees with subsequent compensable injuries and their dependents who may seek SAC.
  • Workers’ compensation insurers, notably SCIF, and the Director of Industrial Relations as trustee of the SIBTF.
  • Medical evaluators qualified to assess permanent partial disability for SAC purposes.
  • WCAB (Workers’ Comp Appeals Board) and administrative agencies administering SAC.

Timeline and fiscal notes

  • Effective dates:
    • SAC-related determinations and prior disability considerations apply to injuries occurring on/after January 1, 2027.
    • Other provisions reference existing law but adjust measurement and administration moving forward.
  • The bill includes an appropriation implication to support changes in SAC administration and the SIBTF.

Overall, AB 1576 seeks to modernize the calculation and administration of SAC for subsequent injuries, shift administration to the Director of Industrial Relations, and create a structured framework with evaluator curation and explicit eligibility criteria.

Compiled from official sources — confirm details with the bill’s official record.

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