After months of negotiation, California Governor Arnold Schwarzenegger and legislative leaders agreed on a sweeping measure to overhaul California’s workers’ compensation system in April. Schwarzenegger signed Senate Bill 899, introduced by Senator Charles Poochigian (R-Fresno) on April 19, which California’s employers consider a huge victory.
Members of the California Landscape Contractors Association had held a campaign to gather signatures and force a reform initiative regarding workers’ compensation on the November ballot. However, As a result of SB 899, no reform initiative will be needed, but the campaign is credited with bringing lawmakers to the bargaining table.
Some important elements of the new measure include:
SB 899 does not re-regulate insurance rates, though many Democrats wanted rate regulation to be part of the reform. Schwarzenegger argued that, as it stands, the reform will encourage more insurance companies to return to the California market and the increased competition will force insurers to pass the reform’s cost savings on to employers.
Many bill provisions took effect immediately after the bill was signed and employers should expect their premiums to drop with their next insurance renewal.
To read the text of the bill in PDF format, click here.
The author is associate editor of Lawn & Landscape magazine and can be reached at lspiers@lawnandlandscape.com