April 23, 2025 | SIBTF.org – California lawmakers are advancing SIBTF bill amendments under Assembly Bill 1329 (Ortega), aiming to address the financial instability plaguing the Subsequent Injuries Benefits Trust Fund. With SIBTF claims increasing and litigation costs mounting, the bill proposes sweeping reforms to eligibility criteria, medical-legal evaluations, and administrative oversight. These changes are designed to curb abusive practices, improve fund management, and preserve long-term benefits for genuinely disabled workers—all while alleviating unexpected liability for employers.
Why SIBTF Bill Amendments Are Urgently Needed
Over the past decade, annual SIBTF payments soared from $13.6 million in 2010 to $232 million in 2022. A 2024 RAND report, commissioned by the Department of Industrial Relations (DIR), estimates future liabilities from recent claims could reach $7.9 billion. These soaring costs result from vague statutes, inconsistent evaluations, and escalating litigation.
Without reform, the Fund risks insolvency—leaving injured workers and responsible employers exposed.
How AB 1329 Changes the Game
AB 1329 introduces reforms to restore fairness, efficiency, and fiscal responsibility across SIBTF processes.
Redefining What Counts as a Prior Disability
To qualify for SIBTF benefits, applicants must prove that their pre-existing disability limited work or daily life. AB 1329 requires substantial evidence—such as medical records or credible testimony—confirming the disability existed before the new work injury and actually impaired the applicant’s ability to function.
This clarification weeds out weak claims while protecting workers with genuine impairments.
Replacing Evaluator Shopping with QME Panels
Previously, claimants could choose their own medical evaluators, encouraging “doctor shopping” and inflated ratings. AB 1329 closes this loophole. Now, medical-legal evidence must come from Qualified Medical Evaluators (QMEs), selected through the DWC panel system used for all workers’ comp disputes.
DIR must also create a QME list with physicians trained specifically in SIBTF assessments. This move ensures neutrality and consistency, helping prevent manipulation.
Clearing Up Disability Rating Confusion
The bill also ends debates over how to calculate permanent disability ratings. It codifies what courts have already ruled:
- For injuries between 2005 and 2013, ratings must reflect diminished future earning capacity (DFEC).
- For injuries after January 1, 2013, ratings must include a 1.4 adjustment multiplier based on the AMA Guides.
These changes simplify litigation and bring rating practices in line with current standards.
Shifting Benefit Payments to DIR
Instead of routing payments through the State Compensation Insurance Fund (State Fund), AB 1329 puts DIR directly in charge. This streamlines administration, cuts delays, and eliminates redundant reimbursements between agencies.
What It Means for Workers and Employers
For employers, AB 1329 offers welcome relief. Estimates suggest it could lower SIBTF assessments by 20–25%, encouraging companies to hire veterans and others with disabilities—without fear of unexpected liability.
For workers, the bill ensures the Fund remains strong and available for those truly in need. Additionally, the QME process, though not without flaws, promotes fair and fact-based decisions.
Mixed Reactions from Stakeholders
Supporters say AB 1329 addresses core problems: inflated claims, vague qualifications, and soaring medical-legal costs. However, some employer groups, including the California Chamber of Commerce, argue the bill should go further. They call for broader reforms based on the full range of RAND’s findings.
Even so, many agree this bill offers a strong starting point to preserve SIBTF’s purpose—protecting disabled workers without punishing the employers who give them a chance.
Assembly Bill Policy Committee Analysis
Visit SIBTF.org to learn more about your rights, access guidance on current eligibility standards, or participate in the policy conversation shaping the future of California’s workers’ compensation system.
Read More from SIBTF.org:
- Doctor Pleads Guilty to Writing SIBTF Reports After Suspension
- California Employers Face Mounting SIBTF Liabilities
- Summary and Background of SIBTF
- California’s Subsequent Injuries Benefits Trust Fund
FAQs: About AB 1329 and SIBTF Bill Amendments
What are the key SIBTF bill amendments introduced in AB 1329?
AB 1329 introduces significant SIBTF bill amendments, including stricter eligibility standards, use of QME panels, updated disability rating formulas, and transferring benefit payment authority from State Fund to DIR. These changes aim to reduce inflated claims and ensure long-term fund stability.
How will AB 1329’s SIBTF bill amendments impact injured workers and employers?
The SIBTF bill amendments aim to protect truly disabled workers by filtering out fraudulent or weak claims. Employers are likely to see reduced SIBTF assessments—possibly by 20–25%—lowering financial risks associated with hiring employees who have pre-existing conditions.
Where can I track legislative updates on SIBTF bill amendments like AB 1329?
You can follow the progress of SIBTF bill amendments, including AB 1329, through California’s official legislative portal. It provides real-time updates, bill texts, committee actions, and vote histories: https://leginfo.legislature.ca.gov.
What is the status of AB 1329?
AB 1329 was vetoed by the Governor in October 2025. The veto cited concerns that the proposed SIBTF bill amendments did not provide comprehensive reforms necessary to ensure the long-term financial sustainability of the Fund.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) helps California workers who suffer a new workplace injury and already had a prior disability. It offers supplemental compensation when combined impairments severely limit earning capacity.