The California Attorney General's Office has given approval for backers to seek signatures to place three initiatives on the ballot that would allow workers to file lawsuits over injuries and increase benefits for those in the workers' compensation system.
Supporters must have 598,105 registered voters sign in the state by July 17 for the initiatives, known collectively as the Workers Empowerment Act, to appear on the November ballot. The number of required signatures is equal to 8 percent of those who voted in the 2002 gubernatorial election.
If approved by the voters, the initiatives would allow injured workers to file suit outside of the workers' comp system within 90 days of being hurt, and to select their own medical provider. The findings of that provider would be presumed correct, unless contradicted by a preponderance of medical evidence, according to a summary prepared by the state Attorney General's Office.
Such a proposal, made in two of the three initiatives, "would essentially wipe out the workers' compensation system," said Sam Sorich, president of the Association of California Insurance Companies.
The comp system which serves as an exclusive remedy for workers' claims, he said, "was a fundamental policy decision made by California nearly a century ago, and we think it should be maintained."
Additionally, the proposals call for those being compensated to have their benefits increased as of January 2007, and tie subsequent increases to the state's average weekly wage.
Mr. Sorich said that the ACIC was among the founding members of a consortium opposed to the initiatives known as the Californians Against the Job Killing Initiatives. That group, he said, is in the "preliminary stages" of preparing an opposition to the initiatives, with a meeting of business and public sector interests scheduled for Tuesday afternoon in Sacramento.
"Workers' compensation costs affect everyone, and all three of these initiatives threaten not only small businesses but nonprofits, school districts and local governments," said Allan Zaremberg, president of the California Chamber of Commerce and co-chair of CAJKI.
"These initiatives would take away savings that could be used to hire more teachers, build new roads and serve the less fortunate," he added.
The summaries of the proposals noted that their costs to the state could be "potentially in the mid-to-high hundreds of millions of dollars" due to injuries to state and local government employees.
Margaret Prinzing, an attorney with the firm of Remcho, Johansen & Purcell who has taken over as chief contact on the initiatives for their original filer, Danielle Viohl, declined to comment about the proposals or any strategies for collecting signatures and gaining support.
She did say she had seen press reports about the opposition to the proposals in the business community, adding that it was "about what we expect."
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